Chapter 9 Vocab

Question 1

80/20 Rule

Answer 1

A concept that suggests 80 percent of a firm’s sales are obtained from 20 percent of its customers.

Question 2

Market Segmentation

Answer 2

Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

Question 3

Market-product Grid

Answer 3

A framework to relate the market segments of potential buyers to products offered or potential marketing actions.

Question 4

Perceptual Map

Answer 4

A means of displaying in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how they perceive competing products or brands, as well as the firm’s own product or brand.

Question 5

Product Differentiation

Answer 5

A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products.

Question 6

Product Positioning

Answer 6

The place a product occupies in consumers’ minds based on important attributes relative to competitive products.

Question 7

Product Repositioning

Answer 7

Changing the place a product occupies in a consumer’s mind relative to competitive products.

Question 8

Usage Rate

Answer 8

The quantity consumer or patronage (store visits) during a specific period. Also called “frequency marketing.”