Chapter 9: segmentation and target marketing

Question 1

segmentation

Answer 1

identifying and serving homogeneous groups of consumers

Question 2

segments

Answer 2

naturally or existing groups of consumers with similar needs/wants and responses

Question 3

target market

Answer 3

the segment your firm chooses to serve

Question 4

geographic segmentation

Answer 4

customers into groups based on where they live

Question 5

demographic

Answer 5

easily measured , objective characteristics such as age, gender, income, and education

Question 6

psychographic

Answer 6

how consumers describe themselves- how ppl self select based on characteristics of how they choose to occupy their time and what underlying psych reasons determine those choices

Question 7

self calues

Answer 7

goals for life, need for respect, fulfillment, etc.

Question 8

self-concept

Answer 8

image people ideally have of themselves, display product within lifestyle consumers seek

Question 9

lifestyles

Answer 9

the way we live- how we live our lives to achieve goals

Question 10

value and lifestyle survey

Answer 10

8 segments

• vertical=resources
• horizontal=psychological motivation for buying
• 3 motivations- ideals, achievement, self-expression

Question 11

benefit segmentation

Answer 11

benefits consumers derive from products/services

ie, producers know that people go to the theater for diff interests

Question 12

behavioral segmentation

Answer 12

divides customers into groups on the basis of how they use the product or service- occasion and loyalty

Question 13

occasion

Answer 13

when a product or service is consumed

Question 14

loyalty

Answer 14

retain loyal customers- competitors are excluded, invest in retention and loyalty initiatives

Question 15

using multiple segmentation methods

Answer 15

using demographics and geography to identify and target marketing communications to customers, ten using benefits or lifestyles to design the product/service and the substance of the marketing message

Question 16

geodemographic segmentation

Answer 16

geo, demo, and lifestyle characteristics to classify cons

Question 17

undifferentiated targeting strategy

Answer 17

aka mass marketing, when everyone might be considered a potential user of its product- focuses on similarities in needs of customers

Question 18

differentiated targeting

Answer 18

target several market segments with a different offering for each

Question 19

concentrated targeting strategy

Answer 19

when an organization selects a singly, primary target makret and focuses all its energies on providing a product to fit that market’s needs

Question 20

micromarketing

Answer 20

when a firm tailors a product or service to suit an individual’s wants/needs

Question 21

cookies

Answer 21

small text files a website stores in a visitor’s browser, provide a unique identification of each potential customer who visits and details how the customer has searched the site

Question 22

value proposition

Answer 22

communicates customer benefits to be received from a product or service–> reasons for wanting to purchase it

Question 23

value

Answer 23

reflects the relationship of benefits to costs, or what the consumers get for what she/he gives

Question 24

perceptual map

Answer 24

displays in 2 or more dimensions, the position of products or brands int he consumer’s mind

Question 25

ideal points

Answer 25

the position at which a particular market segments ideal product would lie on a perceptual map

Question 26

cannibalization

Answer 26

new product cuts into sales of old product

aim at new segment and hit old segment