Chapter 6 Vocabulary

Question 1

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

Answer 1

Market segmentation

Question 2

Evaluating each market segments attractiveness and selecting one or more segments to serve

Answer 2

Market targeting

Question 3

Actually differentiating the market offering to create superior customer value

Answer 3

Differentiation

Question 4

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

Answer 4

Positioning

Question 5

Dividing a market into different geographical units, such as nations, states, regions, countries, cities, or even neighborhoods

Answer 5

Geographic segmentation

Question 6

Diving the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

Answer 6

Demographic segmentation

Question 7

Dividing a market into different age and life-cycle groups

Answer 7

Age and life cycle segmentation (demographic)

Question 8

Dividing a market into different segments based on gender

Answer 8

Gender segmentation (demographic)

Question 9

Diving a market into different income segments

Answer 9

Income segmentation (demographic)

Question 10

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

Answer 10

Psychographic segmentation

Question 11

Dividing a market into segments based on consumer knowledge, attitudes causes of a products, or responses to a product

Answer 11

Behavioral segmentation

Question 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

Answer 12

Occasion segmentation (behavioral)

Question 13

Dividing the market into segments according to the different benefits that consumers seek from the product

Answer 13

Benefit segmentation (demographic)

Question 14

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

Answer 14

Inter market (cross-market) segmentation

Question 15

Requirements for effective segmentation

Answer 15

Measurable
Accesible 
Substantial 
Differentiable 
Actionable

Question 16

The size, purchasing power and profiles of the segments can be measured

Answer 16

Measurable

Question 17

The market segments can be effectively reached and served

Answer 17

Accesible

Question 18

The market segments are large or profitable enough to serve. A segment should be the largest possible homogenous group worth pursuing with a tailored marketing program

Answer 18

Substantial

Question 19

The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs

Answer 19

Differentiable

Question 20

Effective programs can be designed for attracting and serving the segments

Answer 20

Actionable

Question 21

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

Answer 21

Target market

Question 22

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

Answer 22

Undifferentiated (mass) marketing

Question 23

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

Answer 23

Differentiated (segmented) marketing

Question 24

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

Answer 24

Concentrated (niche) marketing

Question 25

Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing

Answer 25

Micro-marketing

Question 26

Tailoring brand and marketing to the needs and wants of local customer segments—cities, neighborhoods, and even specific stores

Answer 26

Local marketing (micro-marketing)

Question 27

Tailoring products and marketing programs to the needs and preferences of individual customers

Answer 27

Individual marketing

Question 28

How a product is defined by consumers on important attributes—the place a product occupies in consumers minds relative to competing products

Answer 28

Product position

Question 29

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

Answer 29

Competitive advantage

Question 30

The full positioning of a brand—the full mix of benefits on which it is differentiated and positioned

Answer 30

Value proposition

Question 31

A statement that summarizes company or brand positioning using this form: to (target segment and need) our (brand) is (concept) that (point of difference)

Answer 31

Positioning statement