Chapter 7

Question 1

2 steps to create value for targeted customers

Answer 1

1) select customers to serve (segmentation and targeting)

2) decide on value proposition (differentiation and positioning)

Question 1

segmentation

Answer 1

divide market into smaller segments

Question 2

targeting

Answer 2

select segment(s) to enter

Question 3

differentiation

Answer 3

differentiate market offering to create superior customer value

Question 4

positioning

Answer 4

position market offering in minds of target customers.

Question 5

market segmentation

Answer 5

divide market into smaller segments with distinct needs, characteristics, or behaviors that may require separate marketing strats/mixes. (geographic, demographic, psychographis, behavioral)

multiple segmentation used to identify smaller, better-defined target groups

Question 6

geographic segmentation

Answer 6

nations regions states counties cities neighborhoods etc.

Question 7

demographic segmentation

Answer 7

age lifecycle stage gender income occupation education religion ethinicity generation

Question 8

psychographic segmentation

Answer 8

social class lifestyle personality characteristics

Question 9

behavioral segmentation

Answer 9

consumer knowledge attitudes use of product response to product (occasions, benefits sought, user status, usage rate, loyalty status)

Question 10

requirements for effective segmentations

Answer 10

measurable (size, purchasing power, profiles of segments are measurable)

accessible (segments effectively reached/served).

substantial (segments large or profitable enough to serve).

differentiable (segments conceptually distinguishable and respond differently to different marketing mix elements/programs.

actionable (effective programs can be designed for attracting/serving segments.

Question 11

evaluating market segments

Answer 11

size and growth

structural attractiveness

firm objectives/resouces

Question 12

target market

Answer 12

set of buyers sharing common needs/characteristics company decides to serve

Question 13

market targeting strategies

Answer 13

undifferentiated/mass marketing, differentiated/segmented marketing, concetrated/niche marketing, micromarketing/local/individual marketing.

Question 14

mass marketing

Answer 14

targets whole market with one offer focusing on common needs rather than whats different

Question 15

segmented marketing

Answer 15

targets different segments designing separate offers for each, goal to achieve higher sales/strong position, more expensive than mass marketing.

Question 16

niche marketing

Answer 16

targets large segment of smaller market, limited company resources, knowledge of market, more effective/efficient.

Question 17

micromarketing

Answer 17

tailoring products/marketing programs to suit tastes of specific individuals/locations.

Question 18

local marketing

Answer 18

tailoring brands/promotions to needs and wants of local customer segments (cities, neighborhoods, stores).

Question 19

individual marketing

Answer 19

tailoring products/marketing programs to needs/preferences of individual customers, AKA one-to-one marketing or mass customization.

Question 20

selectine target market strategy

Answer 20

depends on:

company resources, product variability, product life-cycle stage, market variability, competitor’s marketing strategies.

Question 21

product position

Answer 21

how product is defined by consumers on important attributes

Question 22

positioning maps

Answer 22

shows consumer perceptions of marketers brands versus competing products on important buying dimensions

Question 23

choosing differentiation and positioning strategy

Answer 23

identify set of possible competitive advantages ot build position (along lines of product, services, channels, people, image)

choose right competitive advanatges

select overall positioning strategy

communicate and deliver chosen position to market (often easier than implementing the position, usually takes long time, maintainign it requires consistent performance and communication).

Question 24

competitive advantage

Answer 24

advantage over competitiors gained by offering consumers great value either by lowering prices or providing more benefits to justify high prices

Question 25

value proposition

Answer 25

full mix/benfits upon which brand is positioned (more price for more benefits, same price for same benefits, etc.)