Chapter 9

Question 1

List the 5 segmentation methods.

Answer 1

1: geographic segmentation
2: demographic segmentation
3: psychographic segmentation
4: benefit segmentation
5: behavioral segmentation

Question 2

2. Define target market segmentation.

Answer 2

the process of dividing a market of potential customers into groups, or segments, based on different characteristics.

Question 3

3. How do you evaluate segment attractiveness? (5)

Answer 3

1: Substantial
2: Reachable
3: Responsive
4: Profitable
5: Identifiable

Question 4

4. How do you develop a positioning strategy?

Answer 4

Step 1: Determine your current brand positioning. …
Step 2: Determine your competition. …
Step 3: Conduct competitor research. …
Step 4: Identify what makes your brand unique. …
Step 5: Create your positioning statement.

Question 5

5. How do perceptual mapping help in positioning?

Answer 5

it maps, in 2 or more dimensions, the positions of prouct or brands in the consumers mind for relevant characteristics.

Question 6

5 steps of the segmentation, targeting, positioning process

Answer 6

1: establish strategy
2: use segmentation methods
3: evaluate segment attractiveness
4: select target market
5: identify and develop positioning strategy

Question 7

geographic segmentation

Answer 7

organizes customers into groups based on where they live

Question 8

demographic segmentation

Answer 8

groups consumers according to easily measured, objective characteristics like age, gender, etc

Question 9

psychographic segmentation

Answer 9

delves into how consumer descrive themselves. studies how people self select, based on characteristics of how they choose to occupy their time

Question 10

benefit segmentation

Answer 10

groups based on the benefits consumers derive from products or services

Question 11

behavioral segmentation

Answer 11

divides customers into groups on the basis of how they use the product or service

Question 12

Substantial

Answer 12

needs to measure market’s size to make sure it can generate sufficient profits

Question 13

Reachable

Answer 13

must be able to reach the market through persuasive communication and product distribution

Question 14

Responsive

Answer 14

customers in the segment must react positively to the firm’s offering

Question 15

Profitable

Answer 15

must focus their assessments on the potential profitability of each segment, current and future

Question 16

Identifiable

Answer 16

Firms must be able to identify who is in their market to be able to design products to meet their needs