Chapter 9

Question 1

Segmentation

Answer 1

seeks to find one or more factors about members of a heterogeneous market that allow for dividing into smaller, more homogeneous groups

Question 2

Purpose of segmentation?

Answer 2

Develop different marketing strategies to best meet the segments’ distinct needs and wants

Question 3

Criteria for effective segmentation

Answer 3

1. Is it sufficient size?
2. Is it readily identifiable and can it be measured?
3. Is the segment clearly differentiated on one or more important dimensions?
4. Can the segment be reached?

Question 4

Geographic Segmentation by…

Answer 4

Region, population density, population size, population growth rate, climate

Question 5

Demographic Segmentation…

Answer 5

Age, generational group, gender, family/household, race, income, occupation, education, social class, geodemographics

Question 6

Psychographic Segmentation

Answer 6

Tells what people value and what their lifestyle is like

Question 7

Behavior Segmentation breaks down into…

Answer 7

Benefits sought and usage patterns

Question 8

Target Marketing steps

Answer 8

1. Analyze market segments
2. Develop profiles of each potential target market
3. Select a target marketing approach

Question 9

Analyzing Market Segments based on…

Answer 9

1. Segment size and growth potential
2. Segment competitie forces
3. Strategic fit of the segment

Question 10

Develop Profiles of Each Potential Target Market

Answer 10

1. Primary target markets
2. Secondary target markets
3. Tertiary target markets (current, but ROI not expected until future)
4. Target markets to abandon

Question 11

Target Marketing approaches

Answer 11

Undifferentiated, Differentiated, Concentrated (niche), Customized (one-to-one) marketing