creating

Question 1

What is market segmentation

Answer 1

Creation of homogenous groups of customers, each of them reacting similar to promotion, communication, pricing, and other variables of the marketing mix

Question 2

How big should the gaps among buyers be within each market segement

Answer 2

As small as possible, so that every segment can be addressed with an individually targeted marketing mix

Question 3

How does segmentation make a company more efficient

Answer 3

It allows the company to focusing the on the offering toward the needs, desires, uses, and paying ability of customers

Question 4

What does an increase in number of segments imply

Answer 4

Increase in complexity

Question 5

Segmentation should
facilitate better decisions
on:

By addressing
the questions:

Answer 5

Who to prioritize
What to offer
How to sell

What are customers worth
What do customers value
What do customers need in order to buy

Question 6

What are the benefits of segmentation

Answer 6

Helps identify business opportunities 
Helps understand the buying process
Facilitates analysis of competition
Facilitates prioritizing
Helps maximize resources
Helps develop appropriate marketing mix given needs of different types of consumers

Question 7

Example of segmentation variables

Answer 7

Age, Gender, Social Class, Religion, Ethnic Group, Region, Lifestyle, Personality, Values

Question 8

What is the basic principle of strategic targeting

Answer 8

Can I deliver superior value to these customers
while enabling the Company and its collaborators to achieve
their goals?

Question 9

What is a segment

Answer 9

A subset of potential consumers of a product or service with homogeneous characteristics among the members of the subgroup, and heterogeneous compared to other subgroups

Question 10

Criteria for identifying valid market segemnts

Answer 10

Homogenous
Different
Profitable
Accessible
Responsive

Question 11

What is tactical targeting

Answer 11

the process of identifying value-based segments by linking them to corresponding observable and actionable profiles

Question 12

What is the aim of tactical targeting

Answer 12

It aims to develop an effective and cost-efficient approach to communicating and delivering the offerings’ value to the
selected target customers

Question 13

What are the different tactical targeting scenarios

Answer 13

Sniper Targeting
Shotgun Targeting
Over-segmentation
Shot-in-the-dark

Question 14

Sniper Targeting

Answer 14

We reach exactly the segments we chose to target

Question 15

Shotgun Targeting

Answer 15

We reach more customers than the segments we chose to target

Question 16

Over-segmentataion

Answer 16

We reach fewer customers than the segments we chose to target

Question 17

Shot-in-the-dark

Answer 17

We do not reach our intended segments at all

Question 18

What is positioning

Answer 18

Positioning is the relevant area or position that we want to occupy in the consumer’s heart and mind, relative to our competition, in order to define and differentiate our brand from the rest

Question 19

What are the 3 characteristics of perception?

Answer 19

1. Desired perception does not necessarily match actual perception
2. Perception is comparative (relative to competitors)
3. Perception is specific to a target segment

Question 20

What is the process of positioning

Answer 20

1. Selection of the market and target consumer
2. Identification of dimensions and relevant attributes
3. Identifying current positioning and analysis of the competitive situation
4. Define position statement

Question 21

Point of Difference (POD)

Answer 21

Attributes or benefits that consumers associate with a brand and are positively evaluated. In addition, consumers also believe that these attributes or benefits are not present at the same level in competing brands.

Question 22

Point of Parity (POP)

Answer 22

Associations that consumers have in mind about a brand that are not unique and are also shared by its main competitors