Chapter 7

Question 1

Market segmentation

Answer 1

requires dividing a market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

Question 2

Market targetting (Targeting)

Answer 2

Evaluating each market segment´s attractiveness and selecting one or more segments to serve.

Question 3

Differentiation

Answer 3

Actually 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 target consumers.

Question 5

Geographic segmentation

Answer 5

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

Question 6

Demographic segmentation

Answer 6

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

Question 7

Age and life-cycle stage segmentation

Answer 7

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

Question 8

Gender segmentation

Answer 8

Divides a market into different segments based on gender.

Question 9

Income segmentation

Answer 9

Divides a market into different income segments.

Question 10

Psychographic segmentation

Answer 10

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

Question 11

Behavioral segmentation

Answer 11

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

Question 12

Occasion segmentation

Answer 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.

Question 13

Benefit segmentation

Answer 13

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

Question 14

Intermarket (Cross-market) segmentation

Answer 14

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

Question 15

Target market

Answer 15

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

Question 16

Undifferentiated (Mass) marketing

Answer 16

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

Question 17

Differentiated (Segmented) marketing

Answer 17

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

Question 18

Concentrated (Niche) marketing

Answer 18

Amarket0coveragde strategy in which a firm goes after a large share of one or a few segments or niches.

Question 19

Micromarketing

Answer 19

This is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.

Question 20

Local marketing

Answer 20

This involves tailoring brands and promotion to the needs and wants of local customer segments. (Cities, Neighborhoods, Stores)

Question 21

Individual marketing

Answer 21

This involves tailoring products and marketing programs to the needs and preferences of individual customers. (One-to-one marketing, Mass customization)

Question 22

Product position

Answer 22

This is the way the product is defined by consumers on important attributes.

Question 23

Positioning maps

Answer 23

This show consumer perceptions of marketer’s brands versus competing products on important buying dimensions.

Question 24

Competitive advantage

Answer 24

This is the advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.

Question 25

Positioning statement

Answer 25

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

Question 26

Value proposition

Answer 26

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