Chapter 7 Creating Value for Target Customers

Question 1

Market segmentation

Answer 1

is dividing a market into smaller groups with distinct needs, characteristics, or behavior that require separate marketing strategies or marketing mixes

Question 2

Targeting

Answer 2

is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter

Question 3

Differentiation

Answer 3

involves actually differentiating the market offering to create superior customer value

Question 4

Positioning

Answer 4

consists of arranging for a market offering to occupy a clear, distinctive and desirable place in the minds of consumers

Question 5

Geographic Segmentation

Answer 5

divides the markets into different geographic locations

Question 6

Demographic Segmentation

Answer 6

divides the market into segments based on variables such as age lifecycle gender ic=ncome occupation…..

Question 7

Psychological Segmentation

Answer 7

Divides the market into segments based on social class , lifestyle, or personality characteristics

Question 8

Behavioral Segmentation

Answer 8

Divides the market into segments based on based on consumer’s knowledge attitudes or responses to a product

Question 9

Multiple Segmentation

Answer 9

used to identify smaller better defined groups

Question 10

Intermarket Segmentation

Answer 10

involves forming segments who have similar needs and buying behavior, even though they are located in different countries

Question 11

Target Market

Answer 11

Set of buyers who share common characteristics or needs that the company decides to serve

Question 12

Undifferentiated/ Mass Marketing

Answer 12

Targets the whole market with one offer

Question 13

Differentiated or Segmented Marketing

Answer 13

Targets several different market segments and designs separate offers

Question 14

Concentrated (Niche) Marketing

Answer 14

Targets a large share of one or a few smaller segments or niches

Question 15

Micromarketing

Answer 15

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

Question 16

Drawbacks

Answer 16

Higher Costs & No economies of scale

Question 17

Benefits

Answer 17

Very close attention to detail

Question 18

Benefits

Answer 18

Very close attention to individual customer needs

Question 19

Local Marketing

Answer 19

tailoring products & promotions to the needs and wants of local customer groups

Question 20

Individual Marketing

Answer 20

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

Question 21

Mass Customization

Answer 21

Firms interacting one-to-one using tech with customers

Question 22

Product Position

Answer 22

is the way the product is defined by consumers on important attributes-the place it occupies in consumer’s mind relative to product

Question 23

Competitive Advantage

Answer 23

advantage over competitors gained by offering consumers great value either through lower prices or providing more benefits

Question 24

Value Proposition

Answer 24

the full mix of benefits upon which a brand is positioned