Chapter 8

Question 1

market

Answer 1

people or organizations with needs or wants and the ability and willingness to buy

Question 2

market segment

Answer 2

a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs

Question 3

market segmentation

Answer 3

the process of dividing a market into meaningful, relatively similar and identifiable segments or groups

Question 4

segmentation bases (variables)

Answer 4

characteristics of individuals, groups or organizations

Question 5

geographic segmentation

Answer 5

segmenting markets by region of a country or the world, market size, market density, or climate

Question 6

demographic segmentation

Answer 6

segmenting markets by age, gender, income, ethnic background, and family life cycle

Question 7

family life cycle (FLC)

Answer 7

a series of stages determined by a combination of age, marital status, and the presence or absence of children

Question 8

psychographic segmentation

Answer 8

market segmentation on the basis of personality, motives, lifestyles, and geodemographics

Question 9

geodemographic segmentation

Answer 9

segmenting potential customers into neighborhood lifestyle categories

Question 10

benefit segmentation

Answer 10

the process of grouping customers into market segments according to the benefits they seek from the product

Question 11

usage-rate segmentation

Answer 11

dividing a market by the amount of product bought or consumed

Question 12

80/20 principle

Answer 12

a principle holding that 20% of all customers generate 80% of the demand

Question 13

satisficers

Answer 13

business customers who place an order with the first familiar supplier to satisfy product and delivery requirements

Question 14

optimizers

Answer 14

business customers who consider numerous suppliers, both familiar, and unfamiliar

Question 15

target market

Answer 15

a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges

Question 16

undifferentiated targeting strategy

Answer 16

a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix

Question 17

concentrated targeting strategy

Answer 17

a strategy used to select one segment of a market for targeting marketing efforts

Question 18

niche

Answer 18

one segment of a market

Question 19

multisegment targeting strategy

Answer 19

a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each

Question 20

cannibalization

Answer 20

a situation that occurs when sales of a new product cut into sales of a firm’s existing products

Question 21

one to one marketing

Answer 21

an individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer

Question 22

positioning

Answer 22

developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general

Question 23

position

Answer 23

the place a product, brand, or group of products occupies in consumers’ minds relative to competing offerings

Question 24

product differentiation

Answer 24

a positioning strategy that some firms use to distinguish their products from those competitors

Question 25

repositioning

Answer 25

changing customers’ perceptions of a brand in relation to competing brands

Question 26

perceptual mapping

Answer 26

a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds