chapter 6

Question 1

market segmentation

Answer 1

identifying and profiling distinct groups of buyers who differ in their needs and wants.

Question 2

market targeting

Answer 2

selecting one or more market segments to enter.

Question 3

market positioning

Answer 3

establishing, communicating, and delivering the right benefits to each target segment.

Question 4

market segment

Answer 4

group of customers who share a similar set of needs and wants. both descriptive and behavioural characteristics are used to segment the market.

Question 5

geographic segmentation

Answer 5

divides markets into geographical units such as nations, states, regions, countries, cities, and neighbourhoods.

Question 6

grassroots marketing

Answer 6

where marketers concentrate on making activities as personally relevant to individual customers as possible.

Question 7

customer cloning

Answer 7

assuming that the best prospects live where most of the customers already come from.

Question 8

demographic segmentation

Answer 8

demographic variables are often used because they are often associated with consumer needs and wants, and they are easy to measure. marketers often use age and lifecycle stage, life events, gender, income, generation, and race and culture to segment markets.

Question 9

multicultural marketing

Answer 9

an approach recognising that different ethnic and cultural segments have sufficiently different needs and wants to require targeted marketing activities.

Question 10

psychographic segmentation

Answer 10

buyers are divided into groups on the basis of personality traits.

Question 11

psychographics

Answer 11

the science of using psychology and demographics to better understand consumers.

Question 12

behavioural segmentation

Answer 12

where buyers are divided into groups of the basis of their knowledge of, attitude toward, use of, or response to a product. behaviour variables can include needs or benefits, decision roles, and user and usage.

Question 13

split loyals

Answer 13

consumers who are loyal to two or three brands.

Question 14

flexible market offering

Answer 14

consists of two parts: a naked solution containing the product and service elements that all segment members value and discretionary options that some segment members value.

Question 15

user and usage-related variables

Answer 15

1. occasion
2. user status
3. usage rate
4. buy-readiness stage
5. loyalty status
6. attitude

Question 16

segmentation variables

Answer 16

business markets can be divided into segmentation variables:
1. demographic
2. operating variables
3. purchasing approaches
4. situational factors
5. personal characteristics

Question 17

useful market segment criteria

Answer 17

to be useful, market segments must rate favourably on five key criteria:
1. measurable
2. substantial
3. accessible
4. differentiable
5. actionable

Question 18

porter’s five forces

Answer 18

determine the intrinsic long-run attractiveness of a market or market segment
1. threat of intense segment rivalry
2. threat of potential entrants
3. threat of substitutes
4. threat of buyers’ growing bargaining power
5. threat of suppliers’ growing bargaining power

Question 19

full market coverage

Answer 19

a firm attempts to serve all customer groups with all the products they might need. this can be differentiated (sells different products to different segments) or undifferentiated (ignores segment differences and has one offer).

Question 20

selective specialisation

Answer 20

when a firm selects a subset of all the possible segments, each objectively attractive and appropriate.

Question 21

supersegment

Answer 21

a set of segments sharing some exploitable similarity.

Question 22

product specialisation

Answer 22

the firm sells a certain product to several different market
segments.

Question 23

market specialisation

Answer 23

the firm concentrates on serving many needs of a particular
customer group.

Question 24

single-segment concentration

Answer 24

the firm markets to only one particular segment. through concentrated marketing, the firm gains deep knowledge
of the segment’s needs and achieves a strong market presence.

Question 25

niche

Answer 25

more narrowly defined customer group seeking a distinctive mix of benefits within a segment. marketers usually identify niches by dividing a segment into subsegments.

Question 26

mass customisation

Answer 26

the ability of a company to meet each customer’s requirements to prepare individually designed products, services, programs, and communications on a mass basis. there is a four-step framework for one-to-one marketing.

Question 27

socially responsible marketing

Answer 27

calls for targeting that serves not only the company’s interests but also the interests of those targeted.