Chapter 8

Question 1

Involves aggregating prospective buyers into groups, or segments, that
(1) have common needs and
(2) will respond similarly to a marketing action.

Answer 1

market segmentation

Question 2

A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products.

Answer 2

product differentiation

Question 3

A framework to relate the market segments of potential buyers to products offered or potential marketing actions.

Answer 3

market-product grid

Question 4

The guantity consumed or patronage (store visits) during a specific period.
Frequency marketing focuses on usage rate.

Answer 4

usage rate

Question 5

A concept that suggests
80 percent of a firm’s sales are obtained from 20 percent of its customers.

Answer 5

80/20 rule

Question 6

Represents the financial worth of a customer to a company over the course of their relationship.

Answer 6

customer lifetime value (CLV)

Question 7

The place a product occupies in consumers’ minds based on important attributes relative to competitive products.

Answer 7

product positioning

Question 8

Changing the place a product occupies in a consumer’s mind relative to competitive products.

Answer 8

product positioning

Question 9

A means of displaying in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how they perceive competing products or brands, as well as the firm’s own product or brand.

Answer 9

perceptual map