Chapter 7

Question 1

segmentation

Answer 1

dividing markets into meaningful customer groups

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

Question 2

targeting

Answer 2

choosing which customer groups to serve

Evaluating each market segment’s attractiveness and selecting one or moresegments to serve.

Question 3

differentiation

Answer 3

creating market offerings that best serve targeted customers

Designing the market offering to create superior customer value that is distinct from that offered by competitors.

Question 4

positioning

Answer 4

positioning the offerings in the minds of customers

Creating a clear, distinctive, and desirable place for a marketing offer relative to competing products in the minds of target consumers.

Question 5

types of segmentation

Answer 5

geographic
demographic
psychographic
behavioral

Question 6

geographic segmentation

Answer 6

Dividing a market into different geographical units, such as nations, states, regions, counties, cities, or evenneighborhoods.

ex: Nations, regions, states, counties, cities, neighborhoods, population density (urban, suburban, rural), climate

Question 7

Hyperlocal social marketing

Answer 7

Location-based targeting to consumers in local communities or neighborhoods using digital and social media.

Question 8

demographic segmentation

Answer 8

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

Ex: Age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, generation

One reason is that consumer needs, wants, and usage rates often vary strongly with demographic variables. Another is that demographic variables are easier to measure than other useful segmentation variables.

Question 9

Age and life-cycle segmentation (demographic)

Answer 9

Dividing a market into different age and life-cycle groups.

Question 10

Gender segmentation (demographic)

Answer 10

Dividing a market into different segments based on gender.

Question 11

income segmentation (demographic)

Answer 11

Dividing a market into different income segments

Question 12

Psycographic segmentation

Answer 12

Dividing a market into different segments based on lifestyle or personality characteristics.

its more about values what do you value ( tiny home = minimalism )

Question 13

Behavioral segmentation

Answer 13

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

Question 14

Occasion segmentation

Answer 14

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

Ex: P&G boosts the marketing for its Vicks Nyquil, DayQuil, VapoRub, and VapoDrops remedies during the cold and flu season

Ex2: Starbucks has welcomed the autumn season with its pumpkin spice latte (PSL).

Question 15

Benefit segmentation

Answer 15

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

Mountain bikes are “for riders who want a solid, rugged, and durable bike to ride over all surfaces.” Schwinn electric bikes are for riders who want to “put extra power behind every pedal so you can ride farther, take on bigger hills, and enjoy cycling more than ever before.”

Question 16

usage rate segmentation

Answer 16

Markets can also be segmented into light, medium, and heavy product users. Heavy users are often a small percentage of the market but account for a high percentage of total consumption

Question 17

Loyalty status

Answer 17

A market can also be segmented by consumer loyalty

Question 18

segmenting international markets

Answer 18

geographic locations
economic factors
political and legal factors
cultural factors

Question 19

intermarket segmentation (AKA cross market segmentation)

Answer 19

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

Question 20

Requirements for effective segmentation

Answer 20

1- Measurable
2- Accessible –> market segments effectively reached and served
3- substantial –> large and profitable enough to serve
4- differentiable –> conceptually distinguishable and respond differently
5 - actionable –> effective programs can be desinged for attracting and serving segments

Question 21

evaluating market segments

Answer 21

1- segment size
2- growth
3- segment structural awareness

Question 22

target market

Answer 22

A set of buyers who share common needs or characteristics that a company decides to serve.

Question 23

undifferentiated mass marketing

Answer 23

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

a strategy focuses on what is common in the needs of consumers rather than on what is different.

Question 24

differentiated marketing ( segmented marketing )

Answer 24

A market-coverage strategy in which a firm targets several market segments and designs separate offers for each.

Question 25

market target strategies

Answer 25

undifferentiated mass marketing –> differentiated marketing –> concentrated niche marketing –> micromarketing –> local or individual marketing

Question 26

concentrated (niche) marketing

Answer 26

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

Through concentrated marketing, the company achieves a strong market position because of its greater knowledge of consumer needs in the niches it serves and the special reputation it acquires.

It can market more effectively by fine-tuning its products, prices, and programs to the needs of carefully defined segments. It can also market more efficiently, targeting its products or services, channels, and communications programs toward only consumers that it can serve best and most profitably.

it involves higher-than-normal risks.

business will suffer greatly if the segment turns sour.

Question 27

micromarketing

Answer 27

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

Question 28

local marketing

Answer 28

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

Question 29

Individual marketing

Answer 29

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

Question 30

choosing targeting strategy

Answer 30

market variability –> Another factor is market variability. If most buyers have the same tastes, buy the same amounts, and react the same way to marketing efforts, undifferentiated marketing is appropriate

competitors’ marketing strategies –> should be considered. When competitors use differentiated or concentrated marketing, undifferentiated marketing can be risky. Conversely, when competitors use undifferentiated marketing, a firm can gain an advantage by using differentiated or concentrated marketing, focusing on the needs of buyers in specific segments.

Question 31

Product positioning

Answer 31

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

Question 32

Competitive advantage

Answer 32

and advantage over competitiors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices

Question 33

types of differentiations

Answer 33

product differentiation
channel differentiation
people differentiation
( brand ) image differentiation

Question 34

which differences to promote

Answer 34

important
distinctive
superior
communicable
preemptive
affordable
profitable

Question 35

Value proposition

Answer 35

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

Question 36

positioning statement

Answer 36

A statement that summarizes company or brand positioning using this form: “For (target customers), who (unsolved customer needs), our product is (product description), that provides (key benefits). Unlike (key competing brands), our product (points of difference).”

Question 37

POSSIBLE VALUE PROPOSITION TABLE