Chapter 8

Question 1

Target marketing (3 steps)

Answer 1

It consists of identifying market segments, selecting one or more of them and developing products and market programs tailored to each. Target marketing involves 3 steps:

1) Market segmentation
2) Market targeting
3) Market positioning

Question 2

Market segmentation

Answer 2

look for broad classes of buyers who differ in their product needs or buying responses. The major variables that might be used in segmenting consumer markets are: geographic, demographic, psychographic and behavioral.

Question 3

Requirements for an effective segmentation

Answer 3

to be useful a market segment mush have the following characteristics:
1) Measurability 2) Accessibility 3) Actionability 4) Sustainability

Question 4

Market targeting (2 steps)

Answer 4

a) evaluate different market segments by consider their size, growth and attractiveness and company’s objectives and resources and b) select market segments and adopt one market-coverage strategies

Question 5

market-coverage strategies

Answer 5

undifferentiated, differentiated, concentrated and micromarketing.

Question 6

Market positioning (3 steps)

Answer 6

decide how to create differentiate value for targeted consumers a what position to occupy in their minds. Market positioning involves 3 steps:

1) Identify competitive advantage (differentiate product on the base of physical attributes, service differentiation, location differentiation or image differentiation)
2) Select competitive advantages (identify differences that are meaningful and worthwhile)
3) Communicate the chosen position