PMM Ch 5 Flashcards
PMM: Chap 5
What 2 ideas are the basis of market segmentation?
1) No single product can satisfy all consumers, but 2) most products could probably satisfy more than 1 group.
PMM: Chap 5
What is the definition of market segmentation?
Dividing the market into groups of similar consumers and selecting the most appropriate group to serve.
PMM: Chap 5
What are the 6 steps (6 Ds) in performing a market segmentation?
1) Delineate current situation,
2) Determine consumer needs and wants,
3) Divide the markets on relevant dimensions,
4) Develop product positioning,
5) Decide segmentation strategy, and
6) Design marketing mix strategy.
PMM: Chap 5
What is the 1st step (“D”) in the market segmentation process?
1 - Delineating current situation
PMM: Chap 5
What’s involved in step 1: Delineating the current situation?
1) Outline the objectives, opportunities and constraints, and 2) knowing the amount of available resources (e.g., money and otherwise)
PMM: Chap 5
What is the 2nd step (“D”) in the market segmentation process?
2 - determine consumer needs and wants
PMM: Chap 5
What is the 3rd step (“D”) in the market segmentation process?
3 - Dividing the market by relevant dimensions
PMM: Chap 5
What are three important questions in step 3 - Dividing the market on relevant dimensions?
1) A priori or Ad hoc segmentation?
2) How to determine relevant dimension for segmentation?,
3) What are some bases for segmenting the market?
PMM: Chap 5
What is the difference between a basis for segmentation and a dimension of segmentation?
Basis is broader, like product benefits or consumer lifestyle. Dimension is one variable within the overall scheme, like income or parental status.
PMM: Chap 5
What is the difference between “a priori” and “ad hoc” segmentation?
A priori is when the dimensions are chosen before the research and ad hoc is when the dimensions are created based on the research.
PMM: Chap 5
Which is type of segmentation is better for established markets? ad hoc or apriori?
A priori
PMM: Chap 5
Which is type of segmentation is better for new products? ad hoc or apriori?
Ad hoc
PMM: Chap 5
What are three key bases for segmentation?
Benefits, Lifestyles and Geo-demographic
PMM: Chap 5
What does benefits-based segmentation do?
It aims to group people by the specific benefits they seek from a product (toothpaste example)
PMM: Chap 5
What does psychographic segmentation do?
Groups consumers by lifestyles
PMM: Chap 5
With psychographic segmentation, what does the research focus on?
AIO - Attitudes, Interests and Opinions
PMM: Chap 5
What is the best know psychographic segmentation?
VALS - Values and Lifestyles
PMM: Chap 5
What are the 2 axes of the VALS segmentation?
Resources/Innovation (hi-lo) x Primary Motivations (Ideals, Achievement & Self-Expression)
PMM: Chap 5
What problem does geo-demographic segmentation try to address?
That other segmentations don’t point you to actual, reachable consumers
PMM: Chap 5
What is the 4th step (“D”) in market segmentation?
4 - Develop product positioning
PMM: Chap 5
Name 5 ways marketers can position their product relative to competition.
1) Superiority over competition on 1+ attribute, 2) by use or application, 3) by users, 4) relative to product class (Caress™ is bath oil, not soap), and 5) relative to specific competitor (Coke vs. Pepsi)
PMM: Chap 5
What does a positioning map show?
The relative positions of all competitors on 2 dimensions
PMM: Chap 5
How does a positioning map help marketers?
It shows marketers what they need to change to better compete
PMM: Chap 5
What is the 5th step (“D”) in the market segmentation process?
5 - Deciding on a segmentation strategy
PMM: Chap 5
When deciding on a segmentation strategy, what are the 4 basic options?
a) don’t enter market, b) use mass marketing strategy (not use segments), c) Market to 1 of the segments, and d) market to 2+ segments
PMM: Chap 5
What must a segment be to be considered viable? (3 part answer)
a) measurable, b) meaningful (large enough to profit), and c) marketable (can be reached and served efficiently
PMM: Chap 5
What is the 6th step (“D”) in the market segmentation process?
6 - designing the marketing mix strategy
