PMM Ch 5

Question 1

PMM: Chap 5

What 2 ideas are the basis of market segmentation?

Answer 1

1) No single product can satisfy all consumers, but 2) most products could probably satisfy more than 1 group.

Question 2

PMM: Chap 5

What is the definition of market segmentation?

Answer 2

Dividing the market into groups of similar consumers and selecting the most appropriate group to serve.

Question 3

PMM: Chap 5

What are the 6 steps (6 Ds) in performing a market segmentation?

Answer 3

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.

Question 4

PMM: Chap 5

What is the 1st step (“D”) in the market segmentation process?

Answer 4

1 - Delineating current situation

Question 5

PMM: Chap 5

What’s involved in step 1: Delineating the current situation?

Answer 5

1) Outline the objectives, opportunities and constraints, and 2) knowing the amount of available resources (e.g., money and otherwise)

Question 6

PMM: Chap 5

What is the 2nd step (“D”) in the market segmentation process?

Answer 6

2 - determine consumer needs and wants

Question 7

PMM: Chap 5

What is the 3rd step (“D”) in the market segmentation process?

Answer 7

3 - Dividing the market by relevant dimensions

Question 8

PMM: Chap 5

What are three important questions in step 3 - Dividing the market on relevant dimensions?

Answer 8

1) A priori or Ad hoc segmentation?
2) How to determine relevant dimension for segmentation?,
3) What are some bases for segmenting the market?

Question 9

PMM: Chap 5

What is the difference between a basis for segmentation and a dimension of segmentation?

Answer 9

Basis is broader, like product benefits or consumer lifestyle. Dimension is one variable within the overall scheme, like income or parental status.

Question 10

PMM: Chap 5

What is the difference between “a priori” and “ad hoc” segmentation?

Answer 10

A priori is when the dimensions are chosen before the research and ad hoc is when the dimensions are created based on the research.

Question 11

PMM: Chap 5

Which is type of segmentation is better for established markets? ad hoc or apriori?

Answer 11

A priori

Question 12

PMM: Chap 5

Which is type of segmentation is better for new products? ad hoc or apriori?

Answer 12

Ad hoc

Question 13

PMM: Chap 5

What are three key bases for segmentation?

Answer 13

Benefits, Lifestyles and Geo-demographic

Question 14

PMM: Chap 5

What does benefits-based segmentation do?

Answer 14

It aims to group people by the specific benefits they seek from a product (toothpaste example)

Question 15

PMM: Chap 5

What does psychographic segmentation do?

Answer 15

Groups consumers by lifestyles

Question 16

PMM: Chap 5

With psychographic segmentation, what does the research focus on?

Answer 16

AIO - Attitudes, Interests and Opinions

Question 17

PMM: Chap 5

What is the best know psychographic segmentation?

Answer 17

VALS - Values and Lifestyles

Question 18

PMM: Chap 5

What are the 2 axes of the VALS segmentation?

Answer 18

Resources/Innovation (hi-lo) x Primary Motivations (Ideals, Achievement & Self-Expression)

Question 19

PMM: Chap 5

What problem does geo-demographic segmentation try to address?

Answer 19

That other segmentations don’t point you to actual, reachable consumers

Question 20

PMM: Chap 5

What is the 4th step (“D”) in market segmentation?

Answer 20

4 - Develop product positioning

Question 21

PMM: Chap 5

Name 5 ways marketers can position their product relative to competition.

Answer 21

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)

Question 22

PMM: Chap 5

What does a positioning map show?

Answer 22

The relative positions of all competitors on 2 dimensions

Question 23

PMM: Chap 5

How does a positioning map help marketers?

Answer 23

It shows marketers what they need to change to better compete

Question 24

PMM: Chap 5

What is the 5th step (“D”) in the market segmentation process?

Answer 24

5 - Deciding on a segmentation strategy

Question 25

PMM: Chap 5

When deciding on a segmentation strategy, what are the 4 basic options?

Answer 25

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

Question 26

PMM: Chap 5

What must a segment be to be considered viable? (3 part answer)

Answer 26

a) measurable, b) meaningful (large enough to profit), and c) marketable (can be reached and served efficiently

Question 27

PMM: Chap 5

What is the 6th step (“D”) in the market segmentation process?

Answer 27

6 - designing the marketing mix strategy