Chapter 7

Question 1

Market Segmentation

Answer 1

Dividing the market into distinct groups based on needs traits or behaviors that might require separate marketing strategies or mixes

Question 2

Key bases for market segmentation

Answer 2

Geographic
Demographic
Psychographic
Behavioral

Question 3

Geographic Segmentation

Answer 3

Global Regions
Countries
Region of country
Provinces
Cities
Neighborhoods

Question 4

Demographic segmentation

Answer 4

Age and life-cycle
Gender
Household income
Ethnic or cultural group

Question 5

Psychographic segmentation

Answer 5

Social class
Lifestyle
Personality characteristics

Question 6

Behavioral Segmentation

Answer 6

Dividing buyers into groups based on consumer knowledge, attitudes, uses or responses to a product. 
Occasion based purchases
Benefits sought (city bike vs dirt bike)
User status
Usage rate
Loyalty status

Question 7

Multiple segmentation

Answer 7

Start with a single base and then expand to other bases

Combined bases identify better-defined target groups

Question 8

Segmenting business market

Answer 8

Operating characteristics
Purchasing approaches
Situational factors
Personal characteristics

Question 9

Factors that could affect segmentation in international markets

Answer 9

Geographic location
Economic factors
Political and legal factors
Cultural factors

Question 10

Intermarket Segmentation (cross-market segmentation)

Answer 10

Segmenting consumers who have similar needs and buying behavior even though they are in different countries

Question 11

Requirements for effective segmentation

Answer 11

Measurable 
Accessible
Substantial
Differentiable
Actionable

Question 12

Factors to look for when evaluating market segments

Answer 12

Segment size and growth (small companies can’t handle large growth competitive/segments)
Segments must match company objectives and resources
Segment structural attractiveness

Question 13

Structural factors that affect long-run segment attractiveness

Answer 13

Competitors
New Entrants
Substitute Products
Power of buyers
Power of suppliers

Question 14

Undifferentiated Marketing (Mass Marketing)

Answer 14

Firm ignores market segment differences/opportunities and targets the whole market with one offer.
Focuses on what is common in the needs of consumer rather than on what is different. Tries to appeal to the largest number of buyers

Question 15

Differentiated (segmented) Marketing

Answer 15

Firm targets several market segments and designs separate offers for each

Question 16

Concentrated Marketing (niche marketing)

Answer 16

Firm goes after a large share of one or a few segments of a niche

Question 17

Micromarketing

Answer 17

Firm tailors products and marketing programs to the needs of specific segments (includes local and individual marketing)

Question 18

Factors in choosing a targeting strategy

Answer 18

Company resources
Product variability
Product’s life-cycle stage
Market variability
Competitors’ marketing strategies

Question 19

A differentiation and positioning strategy involves

Answer 19

Identifying differentiating competitive advantage
Selecting competitive advantage(s) on which to create position
Developing a value proposition and positioning strategy

Question 20

Point of differentiation can occur anywhere in the entire customer experience: (Where)

Answer 20

Product
Services
Channels
People
Image