Chapter 7: Segmentation, Target marketing and Positioning

Question 1

market fragmentation

Answer 1

The creation of many consumer groups due to diverse needs and wants in modern society.

Question 2

segmentation

Answer 2

The process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics.

Question 3

generational marketing

Answer 3

Marketing to members of a generation who tend to share the same outlook, values, and priorities.

Question 4

Generation Z

Answer 4

The group of consumers born after 1994.

Question 5

Generation Y

Answer 5

(millennials) The group of consumers born between 1979 and 1994.

Question 6

Generation X

Answer 6

The group of consumers born between 1965 and 1978.

Question 7

baby boomers

Answer 7

The group of consumers born between 1946 and 1964.

Question 8

buying power

Answer 8

A concept in segmentation that can help marketers to determine how to better match different products and versions of products to different consumer groups based on an understanding of what discretionary and nondiscretionary allocations of funds they can make.

Question 9

content marketing

Answer 9

The strategy of establishing thought leadership in the form of bylines, blogs, commenting opportunities, videos, sharable social images, and infographics.

Question 10

geographic segmentation

Answer 10

An approach in which marketers tailor their offerings to specific geographic areas because people’s preferences often vary depending on where they live.

Question 11

psychographics

Answer 11

The use of psychological, sociological, and anthropological factors to construct market segments.

Question 12

behavioral segmentation

Answer 12

is A technique that divides consumers into segments based on how they act toward, feel about or use a good or service.

Question 13

80/20 rule

Answer 13

A marketing rule of thumb that 20 percent of purchasers account for 80 percent of a product’s sales.

Question 14

customer loyalty

Answer 14

A customer’s low likelihood of switching to a competitor’s offering, especially because of being highly engaged and connected with their current brand.

Question 15

customer stickiness

Answer 15

Highly cultivated customers are likely to follow through on an intended purchase, buy the product repeatedly, and recommend it to others.

Question 16

long tail

Answer 16

A new approach to segmentation based on the idea that companies can make money by selling small amounts of items that only a few people want, provided they sell enough different items.

Question 17

usage occasions

Answer 17

An indicator used in behavioral market segmentation based on when consumers use a product most.

Question 18

organizational demographics

Answer 18

Organization-specific dimensions can be used to describe, classify, and organize different organizations to segment business-to-business markets.

Question 19

targeting

Answer 19

A strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers.

Question 20

target market

Answer 20

The market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts.

Question 21

personas

Answer 21

Fictional characters created by marketers represent different key potential user types for an offering.

Question 22

positioning

Answer 22

Developing a marketing strategy to influence how a particular market segment perceives a good or service compared to the competition.

Question 23

positioning statement

Answer 23

An expression of a product’s internally developed and maintained positioning to support the development of marketing communication that articulates the specific value offered by a product.