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ba 370 (marketing) > chapter 3 > Flashcards

chapter 3 Flashcards

1
Q

QUIZ: How does market segmentation provide value to marketers?

  • By allowing more efficient marketing and by bringing more value to the customer
  • By reaching the broadest group of customers possible
  • By marketing with the least amount of advertising funds possible
  • By communicating one message to all existing segments
A

By allowing more efficient marketing and by bringing more value to the customer

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2
Q

QUIZ: Which answer below is an example of psychographic segmentation?

  • Marketing to an engineer
  • Marketing to women
  • Marketing to regular gym goers
  • Marketing to ages 45-55
A

Marketing to regular gym goers

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3
Q

QUIZ: “According to Nielsen research, 40 percent of U.S. consumers are responsible for 75 percent of music spending” This quote is an important example to remember why we segment the market by _

  • Usage rate
  • Demographic
  • Psychographic
  • Geographic location
A

Usage rate

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4
Q

QUIZ: How should you decide what to divide the market based on?

  • Meaningful characteristics
  • What you think will sell the most
  • What your coworker told you to
  • Customers’ income
A

Meaningful characteristics

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5
Q

QUIZ: Which of the factors below do NOT suggest you have chosen a desirable target market?

  • If it is sizable
  • If it is stable
  • If it is controversial
  • If it is accessible
A

If it is controversial

**controversial is not part of desirable target markets

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6
Q

QUIZ: A __ is a tool used by marketers to bring their target market to life

  • customer person
  • buyer sheet
  • buyer profile
  • buyer persona
A

buyer persona

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7
Q

QUIZ: What items are generally listed for a buyer persona

  • pain points
  • goals
  • general demographic information
  • all of these are generally listed for a buyer persona
A

all of these are generally listed for a buyer persona

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8
Q

QUIZ: differentiated marketing is defined as __

  • a targeted marketing strategy where the company targets more than one market segment and develops a unique marketing mix to target each segment separately
  • the process of selecting one or more market segments for focused marketing efforts
  • the marketer uses only one strategy or marketing mix for the entire market
  • a targeted marketing strategy where a company choose only one segment to target and customizes a marketing mix for that target market
A

a targeted marketing strategy where the company targets more than one market segment and develops a unique marketing mix to target each segment separately

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9
Q

QUIZ: demographic segmentation is defined as __

  • Segmenting the market by consumer activities, values, interests, and opinions
  • Segmenting the market according to statistics such as age, gender, income, ethnicity, and education
  • Segmenting the market based on location
  • Segmenting the market based on rate of usage
A

Segmenting the market according to statistics such as age, gender, income, ethnicity, and education

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10
Q

QUIZ: True or False: A smaller market segment will always be more effective.

A

False

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11
Q

what is marketing segmentation?

A

it is the process of breaking down large groups into smaller groups based on meaningful characteristics and shared needs

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12
Q

what does marketing segmentation do for marketers?

A

Segmenting the market allows a marketer to focus on those segments that most need the product. It also allows a marketer to adjust the marketing mix of a product to provide more value to a segment.

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13
Q

why do we segment the market?

A

Not everyone is the same
Not everyone has the same needs
How to sell product

textbook says:
market efficiently and increase roi
bring more VALUE and satisfaction to customers

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14
Q

how do we segment the market (list four different metrics and the two extra that fall under one)?

by…

A

Demographic
Geographic
Psychographic
Usage behavior –> Usage rate and Usage situation

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15
Q

what is demographic segmentation? what are some ways we can segment through demographics?

A

demographic segmentation uses statistics such as age, gender, income, ethnicity, and education to segment the market.

ways:

Age
Gender
Ethnicity
Income
Marital Status
Number of Children
Occupation

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16
Q

what is psychographic segmentation? what are some ways we can segment through psychographics?

A

involves segmenting the market by consumer activities, values, interests, and opinions.

we ask for beliefs, values and attitudes which is why segmenting the market using psychographic characteristics is more challenging than with demographics.

ways:

Values
Beliefs
Attitudes
Feelings
Personality
Lifestyle
Activities and Interests
Religious and Political Beliefs and Affiliations (note that some marketers list this under demographic information)

16
Q

what is psychographic segmentation? what are some ways we can segment through psychographics?

A

involves segmenting the market by consumer activities, values, interests, and opinions.

we ask for beliefs, values and attitudes which is why segmenting the market using psychographic characteristics is more challenging than with demographics.

ways:

Values
Beliefs
Attitudes
Feelings
Personality
Lifestyle
Activities and Interests
Religious and Political Beliefs and Affiliations (note that some marketers list this under demographic information)

17
Q

what is geographic segmentation? what are some ways we can segment through geographics?

A

Geographic location segmentation is simply dividing up the market according to consumer location. This can cover very broad regions, such as according to which country a segment is located in. Or a marketer could divide by much smaller regions, such as neighborhoods within a city.

ways:

Country
City / Rural
Zip Code
Population Density
Region within the Country
Mountains, Desert, Tundra

18
Q

what is usage segmentation? what are some ways we can segment through usage?

A

usage behavior: the population is divided based on how MUCH they use (usage rate) or HOW they use (usage situation) a product.

usage rate (much) : based on actual or potential consumption of a product or service.

usage situation (how) : deal with the way in which a person might purchase or use the product or the occasion for which a person might purchase the product. It’s very easy to spot examples of this.

19
Q

examples of segmenting by usage rate

A

Light / Occasional usage: target to increase sales

Medium or Heavy usage: target the most loyal or frequent customers with the current product or with custom product offerings

No usage: targeting those who have not yet tried the product

20
Q

examples of segmenting by usage situation

A

Holidays
Birthdays
Time or work schedule
Way in which a product is used

21
Q

how to create a meaningful market segment

A

Choose meaningful characteristics
Choose the number of characteristics to include
Determine if the segment is a desirable market segment (evaluate target market)

22
Q

target markets should be (5)

A

“how attractive is my product to my segment?”

Identifiable
Sizable
Stable
Accessible
Congruent

23
Q

target market: identfiable

A

A target market is identifiable if a marketer can clearly identify the segments and can describe the traits of characteristics of that segment.

24
Q

target market: sizable

A

A segment is sizable when there are enough consumers within the group to support profitable product sales. Target segment has to be large enough.

25
Q

target market: stable

A

A segment is more stable if it is predictable in its purchasing ability and behavior. The demand for the product is stable over the years.

26
Q

target market: accessible

A

A segment is accessible if a marketer can reach the consumers for marketing and for sales of the product

27
Q

target market: congruent

A

A segment should also have congruence with the company, meaning it aligns with the company’s objectives and resources

28
Q

targeted market strategy: undifferentiated marketing

A

also known as mass marketing. uses only one marketing mix for the entire market. With undifferentiated marketing, also known as mass marketing, the marketer seeks to market to as wide a group of people as possible.

Brands that are broad and everyone needs this product. So you’re marketing anyone and everyone.
EX: Water, Milk, Bread etc.

Undifferentiated marketing is usually used when:
- the product is widely consumed by the population (e.g. toilet paper, toothpaste, gasoline)
- similar product needs exist among customers
- profit margins are lower for the product, so a high sales volume is needed

29
Q

targeted market strategy: differentiated marketing

A

a company targets more than one market segment AND develops a unique marketing mix to target each segment separately. This is the most common target marketing strategy.

May target multiple segments like one segment being someone who wants to save on gas and another segment being someone who cares for the environment and another segment who likes luxury cars.
EX: Tesla (fancy electric different car)

30
Q

targeted market strategy: concentrated marketing

A

sometimes referred to as niche marketing. when a company goes after one segment of the multiple they could possibly. Focus on telling the truth for that segment that is attractive to them not attractive to another segment

EX: Tesla focuses on luxury car buyers and does not push the environment friendly aspect on them

31
Q

define the buyer persona

A

aka customer avatar – it is the characteristics of consumers. it is a semi-fictional representation of an ideal consumer that is based on real research.

IT BRINGS A TARGET SEGMENT TO LIFE

EX: luxury buyers, saver buyers, environment lover buyers etc.

it is also a representation of a marketer’s market segment and a buyer persona helps to give tangibles a face to the target market.

valuable tool to understand your consumers better!!!!!

32
Q

how to form the buyer persona

A

A good buyer persona should include enough information to describe a real person– think of your neighbor, one of your past instructors or a peer

a marketer should first gather all of the research available for the target market segment. Some of the information for the persona will be taken directly from this segment data, such as general demographic information.

33
Q

what are the benefits of creating a buyer persona

A

Focused targeting to a segment
The ability to clearly see consumers’ motivations and needs

34
Q

items commonly included in a buyer persona

A

General demographic information
Goals
Values
Challenges
A day in the life
Sources of information
Pain points
Fun facts
Marketing message

35
Q

what is a pain point?

A

what might stop the persona from purchasing the product

36
Q

the goal of segmenting consumers is to

A

create a meaningful target market

ba 370 (marketing) (16 decks)

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