Chapter 6 Target Marketing Strategies and Customer Relationship Management

Question 1

What are the steps in the target marketing process?

Answer 1

1. Pre-Select Markets
2. Market Segmentation
3. Market Targeting
4. Market Positioning
5. Post - create and execute marketing mix programs

Question 2

What does 1. pre-select markets entail

Answer 2

a. define your market
b. understand customers:
needs and wants
benefits
features
attributes
purchase
consumption behavior

Question 3

What does 2. Market Segmentation entail

Answer 3

a. identify groups:
geographic
behavioral
psychographic
demographic segmentation
b. Profile the groups:
who
what
when
where
why

Question 4

What does 3. market targeting entail

Answer 4

a. evaluate segment attractiveness:
size
growth
strategic fit
competitive or comparative advantage
level of completion
dependability
b. decide which one's to target

Question 5

What does 4. Market Positioning

Answer 5

a. decide how you want to compete, be differentiated and be known for value creation in the minds of customers

Question 6

What does 5. Post - Create and Execute Marketing Mix Programs

Answer 6

Nothing was mentioned

Question 7

Criteria for identifying market segments

Answer 7

Customers must be:

1. similar enough
2. different enough
3. large enough
4. measurable
5. reachable

Question 8

Segmenting consumer markets can be divided into what categories

Answer 8

1. Demographics
2. Psychographics
3. Behaviour

Question 9

What is demographics

Answer 9

Variables that describe objective characteristics of a population or group
Ex: age, location, gender, race, religion, occupation

Question 10

What is Psychographics

Answer 10

A segmentation approach that groups people based on their attitudes, beliefs, values or other psychological orientations
Ex: 
Vegan
Sustainability
Environmentalism
PETA
Lifestyles
Organic
Tiny Homes

Question 11

What is behavior in terms of segmentation

Answer 11

1. Benefit Segmentation
   Value they seek in buying and using a product
2. Usage Segmentation
   amount of product purchased or how product is used
3. Usage Occasion Segmentation
   Context in which consumers use the product

Question 12

Why is it important to segment consumer markets?

Answer 12

All three segments have a big impact on what they are willing to spend and what their needs and wants are.

Question 13

Phases of Targeting

Answer 13

1. Evaluate market segments
is the segment actionable
cant the marketer adequately serve the needs of the segment
2. Develop segment profiles
who are they
what do they want and why
when do they buy and use it
where do they buy and use it
how do they buy and use it
segment size
3. Choose a targeting strategy

Question 14

What are the different approaches to positioning

Answer 14

1. Strategic Orientation
how you plan to compete and create value for your customers
2. Differentiation
to make an offer different from and better than competing offerings
3. Brand Image and Personality
4. Brand Image
5. Defendability
6. Personality

Question 15

How do marketers increase long term success and profits by practicing customer relationship management (CRM)?

Answer 15

• targeted marketing
• shortening the steps to a sale
• saving money

Question 16

What is Customer Relationship Management (CRM)

Answer 16

A systematic tracking of consumers preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual’s unique wants and needs