Week 5

Question 1

What is market segmentation

Answer 1

divide large, heterogeneous markets to smaller segments to be reached more efficiently and effectively
- aggregating buyers into groups

Question 2

role of the basis of segmentation

Answer 2

1. behavioral
2. geographic
3. psychographic
4. demographic

Question 3

criteria of forming the segment

Answer 3

• simplicity and cost effectiveness
• increase profit
• similarity of the need of potential buyers
• difference in needs of buyers
• the potential of marketing action

Question 4

Marketing targeting

Answer 4

reveals the firm’s market segment opportunities

Question 5

criteria to use in selecting the target segments

Answer 5

• market size
• expected growth
• competitive
• cost
• compatibility with the organization

Question 6

market product grid

Answer 6

use to relate the market segments of potential buyers to the product offered

Question 7

4 segmentation strategies

Answer 7

1. one product multiple market segments
2. multiple product with multiple market segments
3. segment of one/mass customization
4. build to order

Question 8

cannibalization

Answer 8

the new product steals customers and sales from the older one

Question 9

5 key step in link needs to actions

Answer 9

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

Question 10

positioning

Answer 10

place a product occupies in the consumer’s mind based on important attributes relative to competitive products

Question 11

perceptual map

Answer 11

shows customer perception of the brand v competing brand on important attributes for the product

Question 12

product differentiation

Answer 12

marketing strategy using different marketing mix actions to help consumers in the target segment perceive the product as being different and better than competing products
- physical features (size or color)
- nonphysical features (image or price)

Question 13

product positioning using perceptual maps (4)

Answer 13

1. identify important attributes for a product class
2. customer’s rating of the company’s product on these attributes
3. customer’s rating of the competing product on these attributes
4. position of the company in consumers mind

Question 14

2 approaches to product positioning

Answer 14

1. head to head
2. differentiation

Question 15

points of differentiation

Answer 15

1. product
2. services
3. channel
4. image
5. people

Question 16

marketing synergies and product synergies