Term
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Definition
People or organizations
Needs or wants
Ability
Willingness to buy |
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Term
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Definition
| Subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs |
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Term
| Market Segmentation Purpose |
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Definition
| Enable the marketer to tailor marketing mixes to meet the needs of one or more specific segments |
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Term
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Definition
| process of dividing a market into meaningful relatively similar and identifiable segments or groups |
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Term
| Market segmentation key role |
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Definition
Groups of people with different needs and preferences
Helps marketers define customer needs and wants more precisely
More accurately define marketing objectives |
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Term
| 3 reasons why marketers segment |
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Definition
Identify groups of customers
provides marketers with information to help them design marketing mixes
Consistent with marketing concept of satisfying customer wants and needs while meeting objectives |
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Term
| Segmentation Scheme must provide |
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Definition
Substantiality
Identifiability and measurability
Accessibility
Responsiveness |
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Term
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Definition
| Characteristics of individuals, groups, or organizations, to divide a total market into segments |
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Term
| Improper segmentation leads to |
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Definition
Lost sales
Missed profit opportunities |
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Term
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Definition
| Identify bases that will produce substantial, measurable, and accessible segments that exhibit different response patterns to marketing mixes |
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Term
| Current trend for segmentation is |
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Definition
| using more rather than fewer variables to segment most markets |
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Term
| Multiple variable segmentation |
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Definition
| Clearly more precise than single variable segmentation |
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Term
| Consumer good markets use segments |
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Definition
Geographic
Demographic
Benefit
Usage Rate |
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Term
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Definition
| Region of a country or the world, market size, market density, or climate |
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Term
| 4 reasons for regional approach |
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Definition
Find new ways to generate sales because of sluggish and intensely competitive markets
Computerized checkout stations give accurate assessment of which brands sell best
New regional brands appeal to local preferences
Regional approach allows to consumer goods companies to react more quickly to competition |
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Term
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Definition
Age
gender
Income
Ethnic
background
family life cycle |
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Term
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Definition
Newborn infants
Young children
Tweens
Generation Y
Generation X
Baby Boomers
Seniors |
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Term
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Definition
Millennial
Born between 1982-2003
1/3 of US population
Spend 200 billion
Civic minded
pay attention to company's overall message |
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Term
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Definition
| Popular with new technology, is a video or article describing and reviewing new products |
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Term
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Definition
| Videos in which the shopper shows off and reviews her purchases from the day, reap millions of views and promote sales |
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Term
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Definition
Born after baby boomers (1964)
Disloyal to brands
Skeptical of big business
Desire experience not just product |
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Term
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Definition
1946-1964
spend 2.1 trillion
Half of all spending
Make up 49% of households
Goods and services
Not brand loyal
Diverse group |
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Term
War Generation (61-66)
Great Depression generation (67-76)
GI Generation (77 and up) |
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Definition
Born before 1946
View retirement as active
explore new knowledge
Require shopping modifications |
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Term
Female
Gender Segmentation |
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Definition
70% of consumer goods
48% of video games |
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Term
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Definition
| Income level influences consumers wants and determines their buying power |
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Term
3 Largest Groups
Ethnic Segmentation |
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Definition
Hispanic American
African American
Asian American |
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Term
FLC
Family Life Cycle Segmentation |
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Definition
| Series of stages determined by a combination of age, marital status, and the presence or absence of chilfren |
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Term
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Definition
Married adults down 80%
Unmarried Americans 42%
40% Home buyers
Single adults are the majority |
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Term
| Psychographic Segmentation |
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Definition
Personality
Motives
Lifestyles
Geodemographics |
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Term
| Geodemographic Segmentation |
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Definition
Combines Geographic, demographic, and lifestyle segmentation
Marketing to small regions
Specific lifestyles |
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Term
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Definition
| Use cookies from web browsers to receive web habits |
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Term
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Definition
| Process of grouping customers into market segments according to the benefit they seek from the product |
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Term
| Benefit Segmentation is different because |
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Definition
| Groups potential customers on the basis of their needs or wants rather than some other characteristic |
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Term
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Definition
| Divides a market by the amount of product bought or consumed |
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Term
| Usage rate segmentation focuses on |
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Definition
| heavy users or multiple marketing mixes aimed at different segments |
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Term
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Definition
| 20% of all customers generate 80% of the demand |
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Term
| Developing heavy users by |
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Definition
FREQUENCY/LOYALTY programs
Loyalty card programs |
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Term
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Definition
| The process of dividing a market into distinct groups with distinct needs, characteristics, or behavior, who might require separate marketing mixes, is called _____. |
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Term
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Definition
| Ensuring a product occupies a clear, distinctive, and desirable place relative to competing products in the minds of target consumers is called ____________. |
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Term
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Definition
| Which of the following is not a major segmentation variable for consumer markets? |
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Term
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Definition
| The W Network, which offers Canadian women television programming tailored to their interest and issues, is focusing on a _____ segmentation base. |
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Term
| Psychographic segmentation |
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Definition
| Variables such as social class, lifestyle, and personality are components of ________. |
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Term
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Definition
| Which of the following is not a requirement for effective segmentation? |
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Term
| What factors do we use to evaluate market segments? |
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Definition
| Segment size and growth, structural attractiveness, and company objectives and resources. |
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Term
| Which targeting strategy is used by Coke? |
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Definition
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Term
| An advantage over competitors gained by offering consumers greater value is called a ___________. |
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Definition
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Term
| Which value proposition is Mercedes Benz going after? |
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Definition
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Term
| It is important to target your market, before you define the market segments. |
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Definition
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Term
| Positioning is the process of ensuring your product has the same USP's as your competitors. |
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Definition
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Term
| Dividing segments based on the sports they play is an example of behavioral segmentation. |
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Definition
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Term
| Hershey's offers "Hershey's Kisses" in special holiday colors. This is a type of behavioral segmentation. |
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Definition
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Term
| Heavy users are often a small percentage of the market but account for a high percentage of total consumption. |
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Definition
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Term
| By pursuing customers who need a replacement car while their car is being repaired, which represents only 5% of the total rental car market, rather than the tourism component of the rental car market, Enterprise Rent-A-Car has chosen a niche market. |
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Definition
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Term
| Perceptual positioning maps show consumer perceptions of their brands versus competing products on important buying dimensions. |
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Definition
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Term
| The most successful value proposition is less for more. |
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Definition
| False:This does not make sense. You would not make a product that is less desirable than competitors and charge more for it. |
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Term
| Wal-Mart employs the same for less value proposition. |
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Definition
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Term
| Positioning statements should follow the form: To (target segment and need) our (brand) is (concept) that (point-of-difference). |
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Definition
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Term
| Consider Procter and Gamble’s (P&G) skincare brands, Noxzema and Oil of Olay. Why can P&G successfully market these apparently similar products and never directly compete for the same customer? |
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Definition
| Because Noxzema is carefully targeted at teens and young women while Olay is targeted to women over 50 |
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Term
| Why does P&G market so many different versions of each brand? |
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Definition
| Because different groups of consumers want different set of benefits |
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Term
| What is the competitive advantage to P&G in marketing competing brands in a product category? |
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Definition
| P&G can capture more share of the total market with multiple brands than with just one brand |
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Term
| Why does P&G focus on product brands rather than the P&G brand? |
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Definition
| Because each brand must be positioned for its target segment and a single Procter and Gamble brand cannot have one positioning for all of P&G’s segments |
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Term
| The increased prevalence of segmentation and targeting is leading to the end of traditional mass marketing. |
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Definition
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Term
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Definition
| Generally, segments are comprised of consumers who exhibit similar buying behaviours. |
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Term
| As a criterion for determining a segment’s value as a target segment, “substantial” dictates that the largest possible segment is the correct target. |
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Definition
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Term
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Definition
| If a desired market position is already owned by another brand, it is possible to compete by deliberately shifting that brand’s position in the minds of consumers. |
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Term
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Definition
| Marketers are beginning to lose control of consumers as they search for brand and product information online and make the purchase decision without ever viewing advertising or interacting with a sales person. |
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Term
| The different segments of Red Bull Energy Drink and Gatorade are largely based on what segmentation criteria? |
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Definition
| Lifestyle and personality |
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Term
| Undifferentiated, differentiated and niche |
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Definition
| Consider the following product category brands: Dasani bottled water, diet caffeine-free Coke and Clearly Canadian. Each of these brands illustrates a segmentation level. Select the set that most closely matches these brands respectively: |
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Term
| Because heavy users do not need the reinforcement of brand advertising and stay loyal due to ongoing customer satisfaction |
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Definition
| Although loyal and heavy users of a brand generate the most revenue, marketers generally target advertising at non-users or light users. Why is this so? |
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Term
| In each case, the company services different target segments with different marketing mixes. IBM services the consumer market, the small/medium business market and the Fortune 1000 market. Home Depot services both the home do-it-yourselfer and the professional contractor. Staples services students, home-based business owners and larger companies. And 3M makes products for the consumer market as well more complex products for the business-to-business market. |
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Definition
| An undifferentiated segmentation strategy in the business-to-business market is illustrated by makers of standard printer paper. A differentiated segmentation strategy in the business-to-business market is best illustrated by |
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