Chapter 7: Segmenting, targeting, positioning

Question 1

Segmentation

Answer 1

Dividing a market into subgroups of categories of customers in such a way that the marketer is more able to serve particular needs and thus gains a competitive advantage

Question 2

Markets should choose to segment by (4)

Answer 2

Measurability
Accessibility
substantiatlity
actionability

Question 3

Measurability

Answer 3

important for understanding size, value needs, and purchasing characteristics of a particular segment.

Question 4

Accessibility

Answer 4

measure of the marketers ability to communicate with the market segment and reach them with distribution channels in a manner that makes serving the segment possible

Question 5

substantiality

Answer 5

expresses the notion that the segment chosen as the target market must be large enough to be profitable

Question 6

Actionability

Answer 6

measure of the capabilities of the organization to create a total offering with a competitive advantage with respect to the specific needs of the segment

Question 7

Bases for B2B segmenation (8)

Answer 7

• By product offered
• by geographic region
• by industry
• by size of company
• by size of account
• by buying behavior
• by technology
• by process and supply chain

Question 8

B2B segmentation

Answer 8

segments are clusters of firms that are distinct from others in terms of what they need and buy as well as how they buy

Question 9

analytical approach

Answer 9

research and data interpretation to derive a segmentation framework.
results in two sets of data
1: size and growth potential
2: needs and buying behavior

Question 10

North american industry classification system (NAICS)

Answer 10

a scheme of industry classifications designed and used by government. Can sort by geographical location, size, etc.

Question 11

innovation translation:

Answer 11

Look for new customers

involves exploratory interaction with current and prospective customers

Question 12

Field market development personnel (FMD)

Answer 12

relationship with marketers and their relationship to direct sales, end users, and headquarters marketing personnel

Question 13

translation approach

Answer 13

sales force targets high potential segments

Question 14

targeting

Answer 14

producing an offering that meets the needs of customers in the segment better than the competitors and reach segment through communication and distribution channels so that customers realize the superior value offered

Question 15

Market attractivness

Answer 15

segments that are large and growing

Question 16

Competitive attractiveness

Answer 16

find out info on the existence or likely existence of strong competition. significant barriers to entry

Question 17

Channel attractivness

Answer 17

find segments that are not served by well-established marketing channels: but could be

Question 18

Supply chain attractiveness

Answer 18

synergy with supply chain

Question 19

internal attractivness

Answer 19

find companies current and future core competencies

Question 20

Positioning

Answer 20

positioning is in the mind of the consumer.
a positioning strategy is that it allows a company to spotlight specific areas where they can outshine and beat their competition.

Question 21

Competitive advantage strategies (3)

Answer 21

• low cost
• differentiated offering
• providing an exact product to a niche market

Question 22

positioning statement

Answer 22

statement of the position the company hopes to achieve in the minds of its target customers

Question 23

product lines

Answer 23

groups of products that are sold together or that address similar market segments

Question 24

flagship product

Answer 24

a product line that is well known and conveys the positioning for the whole line

Question 25

When does analytical segmentation approach work best?

Answer 25

Occurs when there are many customers and/or is looking to enter a new market with little experience