Chapter 6

Question 1

Market segmentation

Answer 1

The process of analysing a market with the aim of directing marketing focus towards smaller segments of buyers with distinct characteristics or behaviours that might require separate marketing strategies or mixes

Question 2

Market targeting (targeting)

Answer 2

The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter

Question 3

Differentiation

Answer 3

Differentiating the market offering to create superior customer value

Question 4

Positioning

Answer 4

Arranging for a market offering to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers

Question 5

Geographic segmentation

Answer 5

Dividing a market into different geographical units such as nations, regions, states, local government areas, cities or neighbourhoods

Question 6

Demographic segmentation

Answer 6

Dividing the market into segments based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation and nationality

Question 7

Age and life-cycle segmentation

Answer 7

Analysing a market with the aim of directing marketing focus based on different age and life-cycle groups

Question 8

Gender segmentation

Answer 8

Dividing a market into different segments based on gender

Question 9

Income segmentation

Answer 9

Dividing a market into different income segments

Question 10

Psychographic segmentation

Answer 10

Dividing a market into different segments based on social class, lifestyle or personality characteristics

Question 11

Behavioural segmentation

Answer 11

Dividing a market into segments based on consumer knowledge, attitudes, uses or responses to . product

Question 12

Occasion segmentation

Answer 12

Dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase or use the purchased item

Question 13

Intermarket segmentation

Answer 13

Forming segments of consumers who have similar needs and buying behaviour even though they are located in different countries

Question 14

Target market

Answer 14

A set of buyers sharing common needs or characteristics that the company decides to serve

Question 15

Undifferentiated (mass) marketing

Answer 15

A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer

Question 16

Differentiated (segmented) marketing

Answer 16

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each

Question 17

Concentrated (niche) marketing

Answer 17

A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches

Question 18

Micromarketing

Answer 18

The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments - includes local marketing and individual marketing

Question 19

Local marketing

Answer 19

Tailoring brands and promotions to the needs and wants of local customer segments - cities, neighbourhoods, and even specific stores

Question 20

Individual marketing

Answer 20

Tailoring products and marketing programs to the needs and preferences of individual customers - also labelled ‘one-to-one marketing’, ‘customised marketing’ and ‘markets-of-one marketing’

Question 21

Product position

Answer 21

The way the product is defined by consumers on important attributes; the place the product occupies in consumers’ minds relative to competing products

Question 22

Competitive advantage

Answer 22

An advantage over competitors gained by offering greater customer value, either through lower prices, or by providing more benefits that justify higher prices

Question 23

Value proposition

Answer 23

The full positioning of a brand - the full mix of benefits upon which it is positioned

Question 24

Positioning statement

Answer 24

A statement that summarises company or brand positioning - it takes this form: To (target segment and need) our (brand) is (concept) that (point of difference)