Chapter 6: Segmenting and Targeting and Positioning Markets Flashcards

1
Q

Market

A

people or organizations with needs or wants and the ability and willingness to buy.

Market is (1) people organizations with (2) needs or wants and with (3) the ability and (4) the willingness to buy –> a group of people or an organization that lacks any one of theses characteristics is not considered a market

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2
Q

Market segment-

A

a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs

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3
Q

Why segment?

A

• tailor marketing mix
• Identify declining demand
• Identify consumer needs & preferences
-Identify new market opportunities

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4
Q

Criteria for segmentation:

A

substantial
identifiable and measurable
accessible
responsiveness

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5
Q

Criteria for segmentation:substantial

A

segment must be large enough to warrant a special marketing mix

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6
Q

Criteria for segmentation:identifiable and measurable

A

segments must be identifiable an their size measurable ( geographic boundaries, number of people in various age groups, other social and demographic characteristics must be identifiable)

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7
Q

Criteria for segmentation:accessible

A
  • members of targeted segments must be reachable with marketing mix
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8
Q

Criteria for segmentation:responsiveness

A

unless segments responds to a marketing mix differently, no separate treatment is needed.

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9
Q

Bases for consumer:

A
  • geographic
  • demographic
  • psycho-graphic
  • benefits sought
  • usage
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10
Q

Bases for consumer:-geographic

A

segmenting markets by region of a country or the world, market size, market density ( how many people are in a certain area), climate (snowmobiles where the is snow

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11
Q

Bases for consumer:-demographic

A

age, gender, income, ethnic background, and family life cycle

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12
Q

Bases for consumer:-psycho-graphic

A

market segmentation based on personality, motives, lifestyle

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13
Q

Bases for consumer:- benefits sought

A

the process of grouping customers into market segments according to the benefits they seek from the product (needs are similar– snacky foods, healthy foods)

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14
Q

Bases for consumer:-usage

A

divides the market by the amount the product is consumed.

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15
Q

Steps for segmenting

A
  1. Select market- define the overall market or product category to be studied
    1. product bases- requires managerial insight
    2. descriptors- identify the specific segmentation variables to use
    3. Profile and analyze segments -should include the segments’ size, expected growth, purchase frequency, current brand usage, brand loyal, and ln term sales and profit potential
    4. select target market- influences the firms target mix
      1. design mix- product, place, promotion , price
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16
Q

Strategies for selecting markets: undifferentiates

A

adopts a mass-market philosophy , viewing the market as one big market with no individual segments- individual customers have similar needs a that can be met with a common marketing mix

17
Q

Strategies for selecting markets: concentrated

A

a company selects a market niche (one segment of a market) for targeting its marketing efforts- can concentrate on understand the needs, motives, and satisfactions of the segments members and on developing and maintain a highly specialize marketing mix

18
Q

Strategies for selecting markets: multi-segmented

A

a firm that choses to serve two or more well-defined market segments and then develops a distinct marketing mix for each (maple bacon– many types of bacon

19
Q

One-to-one marketing

A

An individualized marketing method that utilizes customer information to build long-term, personalized , and profitable relationships with each customer. Goal is to reduce cots through customer retnetin and increase revenue through customer loyalty

20
Q

Positioning

A
  • A process that influences potential customers’ overall perception of a brand, product line, organization in general
    • A position- is the place a product, brand, or group of products occupies in consumer’s minds relative t competing offerings.

Example : johnny walkers scotch whiskeys= different colour for the different position or quality of that whiskey.