Chapter 8

Question 1

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

Answer 1

Market

Question 2

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

Answer 2

Market Segment

Question 3

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

Answer 3

Market Segmentation

Question 4

Substainability
Identifiability and measurability
Accessibility
Responsiveness

Answer 4

Criteria for Successful Segmentation

Question 5

Characteristics of individuals, groups, or organizations

Answer 5

Segmentation bases (variables)

Question 6

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

Answer 6

Geographic Segmentation

Question 7

Segmenting markets by age, gender, income, ethnic backgrounds, and family life cycle.

Answer 7

Demographic Segmentation

Question 8

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

Answer 8

Family Life Cycle

Question 9

Market segmentation on the basis of personality, motives, lifestyles, and geodemographic

Answer 9

Psychographic Segmentation

Question 10

Segmenting potential customers into neighborhood lifestyle categories

Answer 10

Geodemographic Segmentation

Question 11

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

Answer 11

Benefit Segmentation

Question 12

Dividing a market by the amount of product bought or consumed.

Answer 12

Usage-rate Segmentation

Question 13

A principle holding that 20 percent of all customers generate 80 percent of the demand

Answer 13

80/20 principle

Question 14

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

Answer 14

Satisficers

Question 15

Business customers who consider numerous suppliers, both familiar and unfamiliar, solicit bids, and study all proposals before selecting one

Answer 15

Optimizers

Question 16

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

Answer 16

Target Market

Question 17

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

Answer 17

Undifferentiated Targeting Strategy

Question 18

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

Answer 18

Concentrated Targeting Strategy

Question 19

One segment of a market

Answer 19

Niche

Question 20

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

Answer 20

Multisegment Targeting Strategy

Question 21

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

Answer 21

Cannibalization

Question 22

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

Answer 22

One to one Marketing

Question 23

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

Answer 23

Positioning

Question 24

The place a product occupies in consumer’s minds relative to competing offerings

Answer 24

Position

Question 25

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

Answer 25

Product differentiation

Question 26

A means of displaying or graphing in two or more dimensions, the location of products, brands, or groups of products in customer’s minds

Answer 26

Perceptual mapping

Question 27

Changing consumer’s perceptions of a brand in relation to competing brands

Answer 27

Repositioning