Chapter 7

Question 1

Define: MARKET SEGMENTATION

Answer 1

Dividing a market into distinct groups, or segments, that (1) have common needs and characteristics or (2) have behaviours that might require separate marketing actions.

Question 2

SEGMENTATION STEPS

Answer 2

1) Group prospective buyers
2) Group products to be sold
3) Select target markets
4) Take actions to reach target markets

Question 3

WAYS TO SEGMENT THE MARKET

Answer 3

1) Geographic region
2) Demographics
3) Psychographics
4) Behavioural

Question 4

REQUIREMENTS FOR EFFECTIVE SEGMENTATION

Answer 4

The segment must be:
Measurable
Accessible
Substantial
Differentiable/Actionable

Question 5

PRODUCT DIFFERENTIATION

Answer 5

1) Using different marketing mix activities to help consumers perceive a product as being different and better than competing products.
2) Selling two or more products with different features targeted to different market segments.

Question 6

TARGETING MARKET SEGMENTS

Answer 6

1) Undifferentiated (or mass) marketing:
Segments of one
2) Differentiated marketing:
One product, multiple segments
Multiple products, multiple segments
3) Concentrated (niche) marketing
4) Micromarketing

Question 7

PRODUCT POSITIONING

Answer 7

The place an offering occupies in consumers’ minds on important attributes relative to competitive offerings.

Question 7

PERCEPTUAL MAP

Answer 7

A means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers.

Question 8

POSITIONING STATEMENT

Answer 8

A statement that summarizes the company’s positioning for a brand or product.