Chapter 6

Question 1

behavioural segmentation

Answer 1

Groups consumers based on the benefits they derive from products or services, their usage rate, their loyalty, and the occasion.

Question 2

benefit segmentation

Answer 2

Groups consumers based on the benefits they derive from products or services.

Question 3

brand repositioning (rebranding)

Answer 3

A strategy in which marketers change a brand’s focus to target new markets or realign the brand’s core emphasis with changing market preferences.

Question 4

concentrated (or niche) targeting strategy

Answer 4

A marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that market’s needs.

Question 5

demographic segmentation

Answer 5

The grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and education.

Question 6

differentiated targeting strategy

Answer 6

A strategy through which a firm targets several market segments with a different offering for each.

Question 7

geodemographic segmentation

Answer 7

The grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristics.

Question 8

geographic segmentation

Answer 8

The grouping of consumers on the basis of where they live.

Question 9

ideal point

Answer 9

The position at which a particular market segment’s ideal product would lie on a perceptual map.

Question 10

lifestyle

Answer 10

Lifestyles are how we live our lives to achieve goals.

Question 11

loyalty segmentation

Answer 11

Strategy of investing in retention and loyalty initiatives to retain the firm’s most profitable customers.

Question 12

mass customization

Answer 12

The practice of interacting on a one-to-one basis with many people to create custom-made products or services; providing one-to-one marketing to the masses.

Question 13

micromarketing (one-to-one)

Answer 13

A form of segmentation that tailors a product or service to suit an individual customer’s wants or needs.

Question 14

occasion segmentation

Answer 14

Groups consumers based on when they purchase or consume a product or service.

Question 15

perceptual map

Answer 15

Displays, in two or more dimensions, the position of products or brands in the consumer’s mind.

Question 16

positioning

Answer 16

The mental picture that people have about a company and its products or services relative to competitors.

Question 17

positioning statement

Answer 17

Expresses how a company wants to be perceived by consumers.

Question 18

psychographics

Answer 18

This segmentation base delves into how consumers describe themselves; allows people to describe themselves by using those characteristics that help them choose how they occupy their time (behaviour) and what underlying psychological reasons determine those choices.

Question 19

self-concept

Answer 19

The image a person has of himself or herself; a component of psychographics.

Question 20

self-values

Answer 20

Goals for life, not just the goals one wants to accomplish in a day; a component of psychographics that refers to overriding desires that drive how a person lives his or her life.

Question 21

undifferentiated targeting strategy (mass marketing)

Answer 21

A marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups.

Question 22

VALS

Answer 22

A psychological tool developed by Strategic Business Insights that classifies consumers into eight segments: Innovators, Thinkers, Believers, Achievers, Strivers, Experiencers, Makers, and Survivors.

Question 23

value proposition

Answer 23

Communicates the customer benefits to be received from a product or service and the reason(s) for wanting to buy it.