Chapter 7

Question 1

marketing fragmentation

Answer 1

The creation of many consumer groups due to a diversity of distinct needs and wants in modern society.

Question 2

target marketing strategy

Answer 2

Dividing the total market into different segments on the basis of customer characteristics, selecting one or more segments, and developing products to meet the needs of those specific segments.

Question 3

segmentation

Answer 3

The process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics.

Question 4

generational marketing

Answer 4

Marketing to a particular generation, who typically share the same outlooks, preferences, etc.

Question 5

buying power

Answer 5

A concept in segmentation that can help marketers to determine how to better match different products and versions of products to different consumer groups based on an understanding of what discretionary and nondiscretionary allocations of funds they are able to make.

Question 6

content marketing

Answer 6

The strategy of establishing thought leadership in the form of bylines, blogs, commenting opportunities, videos, sharable social images, and infographics.

Question 7

geographic segmentation

Answer 7

An approach in which marketers tailor their offerings to specific geographic areas because people’s preferences often vary depending on where they live.

Question 8

micromarketing

Answer 8

The ability to identify and target very small geographic segments that sometimes amount to individuals.

Question 9

geodemography

Answer 9

A segmentation technique that combines geography with demographics.

Question 10

psychographics

Answer 10

The use of psychological, sociological, and anthropological factors to construct market segments.

Question 11

VALS™

Answer 11

A psychographic segmentation system that divides U.S. adults into eight groups according to what drives them psychologically as well as by their economic resources.

Question 12

behavioral segmentation

Answer 12

A technique that divides consumers into segments on the basis of how they act toward, feel about, or use a good or service.

Question 13

80/20 Rule

Answer 13

A marketing rule of thumb that 20 percent of purchasers account for 80 percent of a product’s sales.

Question 14

usage rate

Answer 14

A measure of how much a good or service is bought or used by consumers.

Question 15

usage occasions

Answer 15

An indicator used in behavioral market segmentation based on when consumers use a product most.

Question 16

organizational demographics

Answer 16

Organization-specific dimensions that can be used to describe, classify, and organize different organizations for the purpose of segmenting business-to-business markets.

Question 17

target market

Answer 17

The market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts.

Question 18

segment profile

Answer 18

A description of the “typical” customer in a segment.

Question 19

undifferentiated targeting strategy

Answer 19

Appealing to a broad spectrum of people.

Question 20

concentrated targeting strategy

Answer 20

Focusing a firm’s efforts on offering one or more products to a single segment.

Question 21

differentiated targeting strategy

Answer 21

Developing one or more products for each of several distinct customer groups and making sure these offerings are kept separate in the marketplace.

Question 22

mass customization

Answer 22

An approach that modifies a basic good or service to meet the needs of an individual.

Question 23

competitive advantage

Answer 23

A firm’s edge over its competitors that allows it to have higher sales, higher profits, more customers and enjoy greater success year after year.

Question 24

positioning

Answer 24

Developing a marketing strategy to influence how a particular market segment perceives a good or service in comparison to the competition.

Question 25

repositioning

Answer 25

Redoing a product’s position to respond to marketplace changes.

Question 26

perceptual map

Answer 26

A technique to visually describe where brands are “located” in consumers’ minds relative to competing brands.