Segmenting and Targeting Markets

Question 1

Market

Answer 1

People or organizations with needs or wants and the ability and willingness to buy

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 product needs

Question 4

Segmentation Bases

Answer 4

Characteristics of individuals, groups, or organizations

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

Segmenting markets by age, gender, income, ethnic background, and family

Question 7

Family Life Cycle (FLC)

Answer 7

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

Question 8

Psychographic Segmentation

Answer 8

Segmenting markets on the basis of personality, motives, lifestyles, and geo-demographics

Question 9

Benefit Segmentation

Answer 9

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

Question 10

Usage-Rate Segmentation

Answer 10

Dividing a market by the amount of product bought or consumed

Question 11

80/20 Principle

Answer 11

A principle holding that 20 percent of all customers generate 80 percent of the demand

Question 12

Satisficers

Answer 12

Business customers who place an order with the first familiar supplier to satisfy product and delivery requirements

Question 13

Optimizers

Answer 13

Business customers who consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one

Question 14

Target Market

Answer 14

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 15

Undifferentiated Targeting Strategy

Answer 15

A marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix

Question 16

Concentrated Targeting Strategy

Answer 16

A strategy used to select one segment of a market for targeting marketing efforts

Question 17

Niche

Answer 17

One segment of a market

Question 18

Multisegment Targeting Strategy

Answer 18

Strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each

Question 19

Cannibalization

Answer 19

A situation that occurs when sales of a new product cut into sales of a firm’s existing products

Question 20

Positioning

Answer 20

Developing a specific marketing mix to influence potential customers’ overall perception of a brand, product-line, or organization in general

Question 21

Position

Answer 21

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

Question 22

Product Differentiation

Answer 22

A positioning strategy that some firms use to distinguish their products from those of competitors

Question 23

Perceptual Mapping

Answer 23

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

Question 24

Repositioning

Answer 24

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