Chapter 2

Question 1

distinct consumer groups within a market who have common needs

Answer 1

Market Segments

Question 2

analyzing competition in the marketplace and searching for competitive advantage

Answer 2

Competitive Analysis

Question 3

attributes that give a firm an edge over competitors (better quality products, superior customer service)

Answer 3

Competitive Advantage

Question 4

done after evaluating market opportunities and doing a competitive analysis

Answer 4

Target Market Selection

Question 5

dividing a market into distinct groups with common needs, who respond similarly to a marketing situation

Answer 5

Market Segmentation

Question 6

dividing market basis of region, city size, metropolitan area, or density

Answer 6

Geographic Segmentation

Question 7

dividing market basis on age, sex, family size, marital status

Answer 7

Demographic Segmentation

Question 8

dividing market on basis of personality, lifecycles, or lifestyles

Answer 8

Psychographic Segmentation

Question 9

dividing consumers into groups according to usage, loyalties, or buying responses to a product

Answer 9

Behavioristic Segmentation

Question 10

20% of buyers account for 80% of sales volume

Answer 10

80 to 20 Rule

Question 11

grouping of consumers on basis of attributes sought in a product

Answer 11

Benefit Segmentation

Question 12

offering just one product or service to entire market

Answer 12

Undifferentiated Marketing

Question 13

developing separate marketing strategies for different segments

Answer 13

Differentiated Marketing

Question 14

attempting to capture a large share of one market segment

Answer 14

Concentrated Marketing

Question 15

fitting product of service to one or more segments of a broad market to make it unique within the marketplace

Answer 15

Market Positioning

Question 16

linking product with benefits consumer will derive

Answer 16

Focus on Consumer

Question 17

positioning product by comparing benefit it offers to the competition

Answer 17

Focus on Competition

Question 18

sets brand apart from competitors on basis of specific characteristics or benefits offered

Answer 18

Positioning by Product Attributes and Benefits

Question 19

important to consumers and are basis for making a purchase decision

Answer 19

Salient Attributes

Question 20

makes the brand easily identifiable and differentiated from others

Answer 20

Positioning by Cultural Symbols

Question 21

used to enter market or expand usage

Answer 21

Positioning by Use or Application

Question 22

cost is secondary to quality, quality at a very competitive price

Answer 22

Positioning by Price/Quality

Question 23

altering a product’s or brand’s position due to declining or stagnant sales or anticipated opportunities in other market positions

Answer 23

Repositioning

Question 24

what a product or brand means to consumers; what consumers experience in purchasing and using a product

Answer 24

Product Symbolism

Question 25

combination of name, logo, symbols, design, packaging, image, and associations held by customers (how customers interact with product)

Answer 25

Brand Identity

Question 26

intangible asses of added value (good reputation)

Answer 26

Brand Equity

Question 27

used to communicate with customers and create an impression of the brand

Answer 27

Packaging

Question 28

what consumer has to give in exchange for purchase

Answer 28

Price Variable

Question 29

independent organizations involved in making a product or service available for use

Answer 29

Marketing Channels

Question 30

directly deal with customers (direct-response ads, telemarketing, internet) *selling expensive and complex products

Answer 30

Direct Channels

Question 31

network of wholesalers and/or retailers

Answer 31

Indirect Channels

Question 32

programs designed to persuade resellers to stock, merchandise, and promote a manufacturer’s products *store level

Answer 32

Push Strategy

Question 33

used to motivate wholesalers and retailers to purchase products for resale

Answer 33

Trade Advertising

Question 34

spending money on advertising and sales promotion efforts directed toward the ultimate consumer (stores pulling for the product) *consumer level

Answer 34

Pull Strategy