Chapter 7 Terms

Question 1

Market Fragmentation

Answer 1

The creation of many consumer groups due to a diversity of distinct needs and wants in modern society

Question 2

Target Marketing Strategy

Answer 2

Dividing the total market into different segments on the basis of customer characteristics, selecting one or more segments, and developing products to meet the needs of those specific segments

Question 3

Segmentation

Answer 3

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

Question 4

Segmentation Variables

Answer 4

Dimensions that divide the total market into fairly homogeneous groups, each with different needs and preferences

Question 5

Demographics

Answer 5

Statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation, and family structure

Question 6

Generational Marketing

Answer 6

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

Question 7

Generation Z

Answer 7

The group of consumers born after 1994

Question 8

Generation Y

Answer 8

The group of consumers born between 1979 and 1994

Question 9

Generation X

Answer 9

The group of consumers born between 1965 and 1978

Question 10

Baby Boomers

Answer 10

The segment of people born between 1946 and 1964

Question 11

Buying Power

Answer 11

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 are able to make

Question 12

Content Marketing

Answer 12

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

Question 13

Geographic Segmentation

Answer 13

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

Question 14

Geodemography

Answer 14

A segmentation technique that combines geography with demographics

Question 15

Micromarketing

Answer 15

The ability to identify and target very small geographic segments that sometimes amount to individuals

Question 16

Psychographics

Answer 16

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

Question 17

VALS

Answer 17

A psychographic segmentation system that divides U.S. adults into eight groups according to what drives them psychologically as well as by their economic resources

Question 18

Behavioral Segmentation

Answer 18

A technique that divides consumers into segments on the basis of how they act toward, feel about, or use a good or service

Question 19

User Status

Answer 19

CHECK PPT

Question 20

Usage Rate

Answer 20

A measurement that reflects the quantity purchased or frequency of use among consumers of a particular product or service

Question 21

Usage Occasions

Answer 21

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

Question 22

Organizational Demographics

Answer 22

Organization-specific dimensions that can be used to describe, classify, and organize different organizations for the purpose of segmenting business-to-business markets

Question 23

Targeting

Answer 23

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 24

Target Market

Answer 24

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

Question 25

Segment Profile

Answer 25

A description of the “typical” customer in a segment

Question 26

Undifferentiated Targeting Strategy

Answer 26

Appealing to a broad spectrum of people

Question 27

Differentiated Targeting Strategy

Answer 27

Developing one or more products for each of several distinct customer groups and making sure these offerings are kept separate in the marketplace

Question 28

Concentrated Targeting Strategy

Answer 28

Focusing a firm’s efforts on offering one or more products to a single segment

Question 29

Mass Customization

Answer 29

An approach that modifies a basic good or service to meet the needs of an individual

Question 30

Competitive Advantage

Answer 30

A firm’s edge over its competitors that allows it to have higher sales, higher profits, more customers and enjoy greater success year after year

Question 31

Differentiation

Answer 31

CHECK PPT

Question 32

Repositioning

Answer 32

Redoing a product’s position to respond to marketplace changes.

Question 33

Perceptual Map

Answer 33

A technique to visually describe where brands are “located” in consumers’ minds relative to competing brands