marketing ch.9

Question 1

Market Segmentation-

Answer 1

involves aggregating prospective buyers into groups that
Have common needs

Will respond similarly to a marketing action

Question 2

Market Segments

Answer 2

relatively homogenous groups of prospective buyers that result from the market segmentation process

Question 3

Product Differentiation

Answer 3

• firm using different marketing mix activities such as product features and advertising to help consumers perceive the product as being different and better than competing products.

Question 4

Market Product Grid

Answer 4

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

Question 5

when generally do you segment

Answer 5

A business goes to the trouble and expense of segmenting its markets when it expects that this will increase its sales, profit, and return on investment.

Question 6

One Product and Multiple Market Segments

Answer 6

When an org produces only one product and wants to sell it to two+ markets
Ex. Harry Potter, magazines

Question 7

Multiple Products Multiple Market Segments

Answer 7

Different products attract different market segments

More expensive the producing one good BUT it is effective if it meets customers’ needs better

Question 8

Segments of One: Mass Customization

Answer 8

Each customer has unique set of needs/wants

Tailoring goods to individual customers on a high volume scale

Question 9

Organizational synergy-

Answer 9

the increased customer value achieved through preforming organizational functions like marketing/manufacturing more efficiently

Question 10

Cannibalization

Answer 10

new products/new chains simply stealing sales from the older ?

Question 11

Steps in sementing/targeting markets

Answer 11

1-group potential buyers into segments
2-Group products to be sold into categories
3- Develop a market product grid and estimate size of markets
4-Select Target Markets
5-take marketing actions to reach target markets

Question 12

○ Criteria to use in forming the segments

Answer 12

Simplicity/Cost effectiveness
Potnetial for increased profits
similarity of needs of potential buyers
difference of needs of buyers among all segments
potential of marketing action to reach a segment

Question 13

Ways to segment consumer markets

Answer 13

Geographic, Demographic, psychographic, behavioral

Question 14

Usage rate

Answer 14

is the quantity consumed or patronage—store visits—during a specific period.

Question 15

80/20 rule

Answer 15

80% of a firms sales are obtained from 20% of its customers

Question 16

Criteria to Use in Selecting the Target Segment

Answer 16

market size, expected growth, competitive position, cost of reaching segment, compatibility with the organizations objectives and resources

Question 17

Head to head positioning

Answer 17

• competing directly with competitors on similar product attributes in the same target market

Question 18

Differentiation position

Answer 18

seeking less competitive, smaller market niche

Question 19

Perceptual map

Answer 19

• means of displaying/graphing in 2D the location of products or brands in the minds of consumers.