Chapter 8: Customer-Driven Marketing Strategy: Creating Value for Target Customers

Question 0

Market Targeting (Targeting)

Answer 0

The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

Question 1

Market Segmentation

Answer 1

Dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviours that may require separate marketing strategies or mixes.

Question 2

Differentiation

Answer 2

Differentiating the market offering to create superior customer value.

Question 3

Positioning

Answer 3

Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Question 4

Geographic Segmentation

Answer 4

Dividing a market into different geographical units, such as nations, regions, provinces, counties, cities, or even neighbourhoods.

Question 5

Demographic Segmentation

Answer 5

Dividing a market into segments based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.

Question 6

Age and Life-Cycle Segmentation

Answer 6

Dividing a market into different age and life-cycle groups.

Question 7

Gender Segmentation

Answer 7

Dividing a market into different segments based on gender.

Question 8

Income Segmentation

Answer 8

Dividing a market into different income segments.

Question 9

Psychographic Segmentation

Answer 9

Dividing a market into different segments based on social class, lifestyle, or personality characteristics.

Question 10

Behavioural Segmentation

Answer 10

Dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product.

Question 11

Occasion Segmentation

Answer 11

Dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

Question 12

Benefit Segmentation

Answer 12

Dividing the market into segments according to the different benefits that consumers seek from the product.

Question 13

Intermarket Segmentation (Cross-Market Segmentation)

Answer 13

Forming segments of consumers who have similar needs and buying behaviour even though they are located in different countries.

Question 14

Target Market

Answer 14

A set of buyers who share common needs or characteristics that the company decides to serve.

Question 15

Undifferentiated (Mass) Marketing

Answer 15

A market-coverage strategy in which a firm decides to ignore market segmentation differences and target the whole market with one offer.

Question 16

Differentiated (Segmented) Marketing

Answer 16

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each

Question 17

Concentrated (Niche) Marketing

Answer 17

A market-coverage strategy in which a firm goes after a large share of one or a few smaller segments or niches.

Question 18

Micromarketing

Answer 18

Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing

Question 19

Local Marketing

Answer 19

Tailoring brands and promotions to the needs and wants of local customer segments - cities, neighbourhoods, and even specific stores.

Question 20

Individual Marketing

Answer 20

Tailoring products and marketing programs to the needs and preferences of individual customers; also called one-to-one marketing, mass customization, and markets-of-one marketing.

Question 21

Product Position

Answer 21

The way the product is defined by consumers on important attributes - the place the product occupies in consumers’ minds relative to competing products.

Question 22

Competitive Advantage

Answer 22

An advantage over competitors gained by offering greater customer value, either by having lower prices, or providing more benefits that justify higher prices.

Question 23

Value Propositon

Answer 23

The full positioning of a brand - the full mix of benefits on which it is positioned.

Question 24

Positioning Statement

Answer 24

A statement that summarizes company or brand positioning. It takes this form: To (target segment and need) our (brand) is (concept) that (point of difference).