Mkt 3401 Chapter Eight

Front 1

A market is (4)

Back 1

people or organizations with

needs or wants and with

the ability and

the willingness to buy

Front 2

A group of people or an organization that lacks any of the marketing characteristics is..

Back 2

not a market

Front 3

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

Back 3

market segment

Front 4

the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups

Back 4

market segmentation

Front 5

Nearly all markets include..

Back 5

groups of people or organizations with different product needs and preferences

.

Front 6

Market segmentation helps marketers...

Back 6

define customer needs and wants more precisely

Front 7

Segmentation helps decision makers to...

Back 7

more accurately define marketing objectives and better allocate resources

Front 8

Four criteria for successful segmentation

Back 8

substantiality

identifiably and measurability

accessibility

responsiveness

Front 9

a segment must be large enough to warrant a special marketing mix

Back 9

substantiality

Front 10

segments must be identifiable and their size measureable

Back 10

identifiability and measureability

Front 11

the firm must be able to reach members of targeted segments with customized marketing mixes

Back 11

accessibility

Front 12

unless one market segment responds to a marketing mix differently than other segments, that segment need not be treated separately

Back 12

responsiveness

Front 13

Five bases for segmenting consumer markets

Back 13

geographic segmentation

demographic segmentation

psycholographic segmentation

benefit segmentation

usage-rate segmentation

Front 14

refers to segmenting markets by region of a country or the world, market size, market density, or climate

Back 14

geographic segmentation

Front 15

examples of demographic segmentation (5)

Back 15

age

gender

income

ethnic background

family life cycle

Front 16

Four psychographic segmentation variables

Back 16

personality

motives

lifestyles

geodemographics

Front 17

reflect's a person's traits, attitudes, and habits

Back 17

personality

Front 18

appeal to consumers' emotional motives

Back 18

motives

Front 19

according to the way they spend their time, the importance of the things around them, their beliefs, and socioeconomic characteristics such as income and education

Back 19

lifestyles

Front 20

neighborhood lifestyle categories

Back 20

geodemographics

Front 21

divides a market by the amount of product bought or consumed

Back 21

usage-rate segmentation

Front 22

What is the 80/20 principle?

Back 22

holds that 20 percent of all customers generate 80 percent of the demand

Front 23

The business market consists of four broad segments:

Back 23

producers

resellers

government

institutions

Front 24

Company characteristics (4)

Back 24

geographic location

type of company

company size

product use

Front 25

contact familiar suppliers and place the order with the first one to satisfy product and delivery requirements

Back 25

satisficers

Front 26

consider numerous suppliers, solicit bids, and study all proposals careful before selecting one.

Back 26

Optimizers

Front 27

personal characteristics of the buyers themselves (5)

Back 27

demographic characteristics

decision style

tolerance for risk

confidence level

job responsibilities

Front 28

The purpose of market segmentation is to...

Back 28

identify marketing opportunities

Front 29

Six steps in segmenting a market

Back 29

1. Select a market or product category for study

2. Choose a basis or bases for segmenting the market

3. Select segmentation description

4. Profile and analyze segments

5. select markets

6. design, implement, and maintain appropriate marketing mixes

Front 30

a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges

Back 30

target market

Front 31

One advantage of an undifferentiated targeting strategy

Back 31

potential savings on production/marketing costs

Front 32

two disadvantages of an undifferentiated targeting strategy

Back 32

unimaginative product offerings

company more susceptible to competition

Front 33

Concentrated targeting (4 advantages)

Back 33

concentration of resources

meet the needs of a narrowly defined segment

small firms can better compete

strong positioning

Front 34

Concentrated targeting (2 disadvantages)

Back 34

segments too small or changing

large competitors may more effectively market to niche segment

Front 35

Multisegment Targeting (2 advantages)

Back 35

greater financial success

economies of scale

Front 36

Multisegment Targeting (2 disadvantages)

Back 36

high costs

cannibalism

Front 37

essentially adopts a mass-market philosophy, viewing the market as one big market with no individual segments.

Back 37

undifferentiated targeting strategy

Front 38

In an undifferentiated strategy, the firm uses...

Back 38

one marketing mix for the entire market

Front 39

a firm selects a market niche (one segment of a market) for targeting its marketing efforts

Back 39

concentrated targeting strategy

Front 40

a firm that chooses to serve two or more well-defined market segments and develops a distinct marketing mix for each has a...

Back 40

multisegment targeting strategy

Front 41

Multisegment targeting may also involve...

Back 41

greater product design, production, promotion, inventory, marketing research, and management costs

Front 42

Another potential cost of multisegment targeting is...

Back 42

cannibalism

Front 43

One size fits all marketing is...

Back 43

no longer relevant

Front 44

Direct and personal marketing efforts will...

Back 44

continue to grow to meet the needs of consumers who no longer have the time to spend shopping and making purchase decisions

Front 45

Consumers will be loyal only to those brands that have...

Back 45

earned their loyalty and reinforced it at every purchase occasion

Front 46

Mass-media approaches will decline in importance as...

Back 46

advances in market research and database technology allow marketers to collect detailed information on their customers

Front 47

a process that influences potential customers' overall perception of a brand, product line, or organization in general.

Back 47

positioning

Front 48

One positioning strategy that many firms use to distinguish their products form competitors is based on...

Back 48

product differentiation

Front 49

a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds

Back 49

perceptual mapping

Front 50

Firms use a variety for positioning, including the following: (7)

Back 50

attribute

price and quality

use or application

product user

product class

competitor

emotion

Front 51

A product is associated with...

Back 51

an attribute

Front 52

This positioning base may stress...

Back 52

high price as a signal of quality or emphasize low price as an indication of value.

Front 53

Stressing uses or applications can...

Back 53

be an effective means of positioning a product with buyers

Front 54

This positioning base focuses one...

Back 54

a personality type of user

Front 55

The objective with product class is to...

Back 55

position the product as being associated with a particular category of products.

Front 56

Positioning against competitors is...

Back 56

part of any positioning strategy

Front 57

Positioning using emotion focuses on...

Back 57

how the product makes customers feel

Front 58

changing consumers' perceptions of a brand in relation to competing brands

Back 58

repositioning

Front 59

Geography effects where...

Back 59

markets locate