Chapter 6

Question 1

Segmentation-Targeting-Positioning Process

Answer 1

Step 1: Establish Overall Strategy or Objectives
Step 2: Segmentation Bases
Step 3: Evaluate Segment Attractiveness
Step 4: Select Target Market
Step 5: Identify and Develop Positioning Strategy

Question 2

Geographic Segmentation

Answer 2

The grouping of consumers on the basis of where they live

Question 3

Demographic Segmentation

Answer 3

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

Question 4

Psychographics

Answer 4

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 and what underlying psychological reasons determine those choices

Question 5

Self-values

Answer 5

Goals for life, not just the goals one want 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 6

Self-concept

Answer 6

The image a person has of himself or herself, a component of psychographics

Question 7

Lifestyles

Answer 7

How we live our lives to achieve goals

Question 8

VALS

Answer 8

A psychological tool developed by Strategic Business Insights that classifies consumers into 8 segments:

• innovators
• thinkers
• believers
• achievers
• strivers
• experiencers
• makers
• survivors

Question 9

Behavioural Segmentation

Answer 9

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

Question 10

Occasion Segmentation

Answer 10

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

Question 11

Benefit Segmentation

Answer 11

Groups consumers based on he benefits they derive from products or services

Question 12

Loyalty Segmentation

Answer 12

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

Question 13

Usage Rate

Answer 13

How often a person uses the product or service; occasional, light, regular, or heavy users

Question 14

Geodemographic Segmentation

Answer 14

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

Question 15

PSYTE clusters

Answer 15

The grouping of all neighbourhoods in Canada into 60 different lifestyle clusters

Question 16

Evaluate Segment Attractiveness

Answer 16

• identifiable
• reachable
• substantial / profitable
• responsive

Question 17

Undifferentiated Targeting Strategy (Mass Marketing)

Answer 17

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 18

Differentiated Targeting Strategy

Answer 18

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

Question 19

Concentrated (or niche) Targeting Strategy

Answer 19

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 20

Micromarketing (one-to-one)

Answer 20

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

Question 21

Mass customization

Answer 21

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

Question 22

Positioning

Answer 22

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

Question 23

Value Proposition

Answer 23

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

Question 24

Positioning Statement

Answer 24

Expresses how a company wants to be perceived by consumers

Question 25

Positioning Methods

Answer 25

• value
• product attributes
• benefits and symbolism
• competition
• market leadership

Question 26

Perceptual Map

Answer 26

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

Question 27

Ideal Point

Answer 27

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

Question 28

Brand Repositioning (Rebranding)

Answer 28

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