Segmentation, Targeting and Positioning

Question 1

helps you understand your market and divide it into groups that share common needs and characteristics.

Answer 1

segmentation

Question 2

helps you figure out which of these groups to focus on in your sales and marketing activities.

Answer 2

Targeting

Question 3

is the process of splitting buyers into distinct, measurable groups that share similar wants and needs

Answer 3

market segmentation

Question 4

is a group of potential buyers with needs and wants, as well as the purchasing power to satisfy those needs and wants

Answer 4

market

Question 5

In order for a market to exist, the following five criteria must be met:

Answer 5

1. There must be a true need and/or want for the product, service, or idea; this need may be recognized, unrecognized, or latent.
2. The person/organization must have the ability to pay for the product via means acceptable to the marketer.
3. The person/organization must be willing to buy the product.
4. The person/organization must have the authority to buy the product.
5. The total number of people/organizations meeting the previous criteria must be large enough to be profitable for the marketer.

Question 6

Segmentation is a twofold process that includes:

Answer 6

1. Identifying and classifying people into homogeneous groupings, called segments
2. Determining which of these segments are viable target markets.

Question 7

In essence, the marketing objectives of segmentation are:

Answer 7

1. To improve an organization’s understanding of who their prospective customers are and how to serve them
2. To reduce risk in deciding where, when, how, and to whom a product, service, or brand will be marketed
3. To increase marketing efficiency by directing effort toward designated segment(s) in ways that are consistent with that segment’s characteristics

Question 8

represents the oldest basis for segmentation. nations, states, regions, countries, cities, neighborhoods, or zip codes

Answer 8

geographic market segment

Question 9

are statistical data that describe various characteristics of a population.

Answer 9

Demographics

Question 10

the most popular bases for segmenting customer groups because demographic data are plentiful and customer wants and needs often link closely to these variables.

variables such as age, gender, family size, income, occupation, education, religion, ethnicity, and nationality.

Answer 10

Demographic segmentation

Question 11

variables such as age, gender, family size, income, occupation, education, religion, ethnicity, and nationality.

Answer 11

income

Question 12

consumers are divided according to common characteristics in their lifestyle, personality, attitudes, and social class.

Answer 12

psychographic segmentation

Question 13

can be defined as predispositions to behave in certain ways in response to given stimulus

Answer 13

attitudes

Question 14

is defined as long-lasting characteristics and behaviors of a person that shape how they cope and respond to their environment.

Answer 14

personality

Question 15

identifies individuals based on a combination of socioeconomic such as education, occupation, income, family background, and attitudes related to these factors.

Answer 15

Social class segmentation

Question 16

refers to the orientation that an individual or a group has toward consuming products, work, and play and can be defined as a pattern of attitudes, interests, and opinions held by a person.

Answer 16

Lifestyle segmentation

Question 17

a company chooses to focus its marketing efforts on only one market segment.

Answer 17

concentration strategy

Question 18

a company focuses its marketing efforts on two or more distinct market segments.

Answer 18

multisegment strategy

Question 19

helps you decide who your target customers are

Answer 19

segmentation

Question 20

helps you zero in on the best method for reaching them

Answer 20

targeting

Question 21

Product

Answer 21

What would make the ideal product for your target segment?

What special features or capabilities are critical for this segment?

What unique problems does your product help this segment solve?

Question 22

Promotion

Answer 22

What are the best ways to get your target segment’s attention?

What do you want this segment to remember about your product?

Question 23

Place / Distribution

Answer 23

Where does this segment look or shop for your product?

What is the best way to get your product to your target customers?

Question 24

Price

Answer 24

What price(s) are your target customers willing to pay for your product?

How much is too expensive? How much is too cheap?

Question 25

provides the basic foundation for effectively marketing any product or service to a target audience

is a strategic process that marketers use to determine the place or “niche” an offering should occupy in a given market, relative to other customer alternatives.

Answer 25

positioning

Question 26

is the process of figuring out what will make your product different and better in ways that matter to customers–and ways that are not easily replicated by competitors.

is the process companies use to make a product or service stand out from its competitors in ways that provide unique value to the customer.

Answer 26

differentiation

Question 27

addresses an important question: What do you want to be known for?

Answer 27

positioning

Question 28

is one sentence that concisely identifies the target market and what you want customers to think about your brand.

Answer 28

position statement

Question 29

create a picture of how different competitors are positioned in the market, based on the key criteria that strongly influence customer decisions.

Answer 29

perceptual maps

Question 30

positioning statement includes

Answer 30

1) the target segment,
2) the brand name,
3) the product/service category or frame of reference in which you are establishing this market position,
4) the key points of differentiation, and
5) the reasons customers should believe the positioning claims.

Question 31

involves changing the market’s perceptions of an offering so that it can compete more effectively in its present market or in other target segments.

Answer 31

repositioning