Chapter 6: Segmenting and Targeting and Positioning Markets

Question 1

Market

Answer 1

people or organizations with needs or wants and the ability and willingness to buy.

Market is (1) people organizations with (2) needs or wants and with (3) the ability and (4) the willingness to buy –> a group of people or an organization that lacks any one of theses characteristics is not considered a market

Question 2

Market segment-

Answer 2

a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs

Question 3

Why segment?

Answer 3

• tailor marketing mix
• Identify declining demand
• Identify consumer needs & preferences
-Identify new market opportunities

Question 4

Criteria for segmentation:

Answer 4

substantial
identifiable and measurable
accessible
responsiveness

Question 5

Criteria for segmentation:substantial

Answer 5

segment must be large enough to warrant a special marketing mix

Question 6

Criteria for segmentation:identifiable and measurable

Answer 6

segments must be identifiable an their size measurable ( geographic boundaries, number of people in various age groups, other social and demographic characteristics must be identifiable)

Question 7

Criteria for segmentation:accessible

Answer 7

• members of targeted segments must be reachable with marketing mix

Question 8

Criteria for segmentation:responsiveness

Answer 8

unless segments responds to a marketing mix differently, no separate treatment is needed.

Question 9

Bases for consumer:

Answer 9

• geographic
• demographic
• psycho-graphic
• benefits sought
• usage

Question 10

Bases for consumer:-geographic

Answer 10

segmenting markets by region of a country or the world, market size, market density ( how many people are in a certain area), climate (snowmobiles where the is snow

Question 11

Bases for consumer:-demographic

Answer 11

age, gender, income, ethnic background, and family life cycle

Question 12

Bases for consumer:-psycho-graphic

Answer 12

market segmentation based on personality, motives, lifestyle

Question 13

Bases for consumer:- benefits sought

Answer 13

the process of grouping customers into market segments according to the benefits they seek from the product (needs are similar– snacky foods, healthy foods)

Question 14

Bases for consumer:-usage

Answer 14

divides the market by the amount the product is consumed.

Question 15

Steps for segmenting

Answer 15

1. Select market- define the overall market or product category to be studied
   
   2. product bases- requires managerial insight
   3. descriptors- identify the specific segmentation variables to use
   4. Profile and analyze segments -should include the segments’ size, expected growth, purchase frequency, current brand usage, brand loyal, and ln term sales and profit potential
   5. select target market- influences the firms target mix
      
      6. design mix- product, place, promotion , price

Question 16

Strategies for selecting markets: undifferentiates

Answer 16

adopts a mass-market philosophy , viewing the market as one big market with no individual segments- individual customers have similar needs a that can be met with a common marketing mix

Question 17

Strategies for selecting markets: concentrated

Answer 17

a company selects a market niche (one segment of a market) for targeting its marketing efforts- can concentrate on understand the needs, motives, and satisfactions of the segments members and on developing and maintain a highly specialize marketing mix

Question 18

Strategies for selecting markets: multi-segmented

Answer 18

a firm that choses to serve two or more well-defined market segments and then develops a distinct marketing mix for each (maple bacon– many types of bacon

Question 19

One-to-one marketing

Answer 19

An individualized marketing method that utilizes customer information to build long-term, personalized , and profitable relationships with each customer. Goal is to reduce cots through customer retnetin and increase revenue through customer loyalty

Question 20

Positioning

Answer 20

• A process that influences potential customers’ overall perception of a brand, product line, organization in general
  
  • A position- is the place a product, brand, or group of products occupies in consumer’s minds relative t competing offerings.

Example : johnny walkers scotch whiskeys= different colour for the different position or quality of that whiskey.