Marketing 210 Exam 1 Chapter 8

Question 1

Market

Answer 1

(1) people or organizations with (2) needs or wants and with (3) the ability and (4) the willingness to buy. A group of people or an organization that lacks any one of these characteristics is not a market.

Question 2

Market Segment

Answer 2

A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.

Question 3

Market Segmentation

Answer 3

The process of dividing a market into meaningful, relatively similar, and identifiable segments, or groups.

Question 4

Segmentation Bases, Variables

Answer 4

Marketers use these characteristics of individuals, groups, or organizations, to divide a total market into segments.

Question 5

Geographic Segmentation

Answer 5

Segmenting markets by region of a country or the world, market size, market density, or climate.

Question 6

Demographic Segmentation

Answer 6

Age, gender, income, ethnic background, and family life cycle.

Question 7

(FLC)

Family Life Cycle

Answer 7

Series of stages determined by a combination of age, marital status, and the presence or absence of children.

Question 8

Psychographic Segmentation

Answer 8

Market segmentation on the basis of the following psychographic segmentation variables:
Personality
Motives
Lifestyles
Geodemographics

Question 9

Geodemographic Segmentation

Answer 9

Clusters potential customers into neighborhood lifestyle categories.

Question 10

Benefit Segmentation

Answer 10

The process of grouping customers into market segments according to the benefits they seek from the product.

Question 11

Usage-Rate Segmentation

Answer 11

Divides a market by the amount of product bought or consumed.

Question 12

80/20 Principle

Answer 12

20 percent of all customers generate 80 percent of the demand.

Question 13

Satificers

Answer 13

Contact familiar suppliers and place the order with the first one to satisfy product and delivery requirements.

Question 14

Optimizers

Answer 14

Consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one.

Question 15

Target Market

Answer 15

A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.

Question 16

Undifferentiated Targeting Strategy

Answer 16

Adopts a mass-market philosophy, viewing the market as one big market with no individual segments.

Question 17

Concentrated Targeting Strategy

Answer 17

When a firm selects a market niche (one segment of a market) for targeting its marketing efforts.

Question 18

Niche

Answer 18

One segment of a market

Question 19

Multisegment Targeting Strategy

Answer 19

A firm that chooses to serve two or more well-defined market segments and develops a distinct marketing mix for each.

Question 20

Cannibilazation

Answer 20

When sales of a new product cut into sales of a firm’s existing products.

Question 21

Positioning

Answer 21

A process that influences potential customers’ overall perception of a brand, product line, or organization in general.

Question 22

Position

Answer 22

The place a product, brand, or group of products occupies in consumers’ minds relative to competing offerings.

Question 23

Product Differentation

Answer 23

Positioning strategy that many firms use to distinguish their products from competitors.

Question 24

Perceptual Mapping

Answer 24

A means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds.

Question 25

Repositioning

Answer 25

Changing consumers’ perceptions of a brand in relation to competing brands.