Chapter 7

Question 1

Segmentation

Answer 1

Involves dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviours that might require separate marketing strategies or mixes

Question 2

Targeting

Answer 2

Evaluating each market segments attractiveness and selecting one of 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 consumers

Question 5

Demographic segmentation

Answer 5

Divides the market into segments based on variables such as age, gender, family size, life cycle, HHI, occupation, education or ethnic or cultural group
- Most popular bases for segmenting customer groups

Question 6

Psychographic Segmentation

Answer 6

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

Question 7

Behavioural Segmentation

Answer 7

Dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product
- Includes user status, usage rates, loyalty status

Question 8

Intermarket Segmentation

Answer 8

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

Question 9

Five Requirements for Effective Segmentation

Answer 9

1) Measurable
2) Accessible
3) Substantial
4) Differentiable
5) Actionable

Question 10

Target Market

Answer 10

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

Question 11

Undifferentiated Marketing

Answer 11

• Aka Mass Marketing: a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one another
• Focuses on what is common in the needs of consumers rather then what is different

Question 12

Differentiated Marketing

Answer 12

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

Question 13

Concentrated Marketing

Answer 13

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

Question 14

Micromarketing

Answer 14

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 15

Product Position

Answer 15

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

Question 16

Perceptual Position Maps

Answer 16

Map showing consumers perceptions on their brands versus competing products on important buying dimensions
- Shows price, orientation and as well size of the circle si the relative marketing share

Question 17

Competitive Advantage

Answer 17

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

Question 18

Three steps if differentiating and Positioning

Answer 18

1) Identifying possible value differences and competitive advantages
2) Choosing the Right Competitive Advantage
3) Selecting overall positioning strategy

Question 19

Unique selling Proposition

Answer 19

One main difference the product or brand has

Question 20

Seven Differences to Promote

Answer 20

1) Important
2) Distinctive
3) Superior
4) Communicable
5) Preemptive
6) Affordable
7) Profitable

Question 21

Value Proposition

Answer 21

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

Question 22

More for More

Answer 22

• More service or upscale product for higher cost

Question 23

More for the Same

Answer 23

Comparable quality at a lower price

Question 24

The Same for Less

Answer 24

Same product for cheaper, ex Walmart

Question 25

Less for Much less

Answer 25

Products that offer less and therefore cost less

Question 26

More for LEss

Answer 26

Higher quality for lower cost, non sustainable in the long run though

Question 27

Positioning Statement

Answer 27

A statement summarizing company or brand positioning taking the form:
To (Target segment and need) our (brand) is (concept) that (point of difference)