Chapter 5: Market Segmentation

Question 1

A Priori Segmentation

Answer 1

Approach in which the marketing manager has decided on the appropriate basis for segmentation in advance of doing any research on the market.

Question 2

Benefit Segmentation

Answer 2

Approach that focuses on satisfying needs and wants by grouping consumers on the basis of the benefits they are seeking in a product.

Question 3

Geodemographic Segmentation

Answer 3

Approach that identifies specific households in a market by focusing on local neighborhood geography (such as zip code) to create classifications of actual, addressable, mappable neighborhoods where consumers live and shop.

Question 4

Market Segmentation

Answer 4

The process of dividing a market into groups of similar consumers and selecting the most appropriate group(s) for the firm to serve.

Question 5

Post Hoc Segmentation

Answer 5

Approach that groups people into segments on the basis of research findings rather than determining the basis prior to any research.

Question 6

Positioning Map

Answer 6

A visual depiction of consumer perceptions of competitive products, brands, or models.

Question 7

Psychographic Segmentation

Answer 7

Approach that focuses on consumer lifestyles as the basis for segmentation. Consumers are asked a variety of questions about their lifestyles (commonly, their activities, interests, and opinions) and then grouped on the basis of the similarity of their responses.

Question 8

Target Market

Answer 8

The group or segment a company selects to serve.

Question 9

VALS

Answer 9

A product of SRI Consulting Business Intelligence; the best known psychographic approach; stands for “values and lifestyles.”