Week 5

Question 1

market segmentation

Answer 1

the aggregation of prospective buyers into groups that have common needs and respond similarly to marketing programs

Question 2

mass marketing

Answer 2

marketing a product with broad appeal to the entire market without any product or marketing differentiation

Question 3

niche marketing

Answer 3

marketing a limited product line to a narrow but profitable segment of the market that is of marginal interest to major competitors

Question 4

individualized marketing

Answer 4

one-to-one marketing that involves customizing offers and, in some cases, products to fit individual needs

Question 5

segmentation variables

Answer 5

geographic, demographic, psychographic, behaviouristic

Question 6

geographics

Answer 6

where does the market live and work

Question 7

demographic

Answer 7

what is the basic census-type information on the target market as a whole

Question 8

psychographic “AIO”

Answer 8

what are the attitudes, values, interests, habits, and approaches to life that this target market shares

Question 9

behaviouristic

Answer 9

how does this target market use and interact with the product

Question 10

target market

Answer 10

specific group or segments of existing and potential consumers to which marketers direct their marketing efforts

Question 11

6 step process for segmenting a market

Answer 11

1. identify consumer/customer needs and common characteristics in the market
2. cluster common consumer/customer variables to create meaningful market segments
3. estimate the size and feasibility of each segment
4. identify the segments to be targeted
5. take actions with marketing programs to reach the segments
6. monitor and evaluate the success of these programs compared with objectives

Question 12

product positioning

Answer 12

the impression of the product you want to establish in consumers’ minds relative to their needs and the competition

Question 13

positioning statements

Answer 13

a formalized statement that identifies the image a branded product represents in the market and what sets it apart from the competition

Question 14

two approaches to product positioning

Answer 14

1. head-to-head positioning (red oceans “me-too”
   differentiation (think blue oceans) image, product attributes, price

Question 15

STP Marketing Model

Answer 15

segmentation, targeting, positioning

Question 16

segmentation

Answer 16

divide market into distinct groups of customers

Question 17

targeting

Answer 17

select most attractive segements to focus your marketing on