Chapter 6 Marketing

When an effective program can be designed for attracting and serving a chosen segment, the segment is described as

actionable

which differences to promote

important, distinctive, superior, communicable, preemptive, affordable, profitable

Requirements for Effective Segmentation

measurable, accessible, substantial, differentiable, actionable

The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________. A) niche marketing B) micromarketing C) segmented marketing D) global marketing E) undifferentiated marketing

micromarketing

positioning

position the market offering in the minds of target customers

benefit segmentation

segments divided according to the different benefits that consumers seek from the product

positioning statement

summarizes company or brand positioning

product position

the way a product is defined by consumers on important attributes.

T/F demographic factors are the most popular bases for segmenting customer groups

true

Behavioral Segmentation

dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product

income segmentation

dividing market into different income segments

demographic segmentation

dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

targeting

select the segment or segments to enter

psychographic segmentation

dividing a market into different segments based on social class, lifestyle, or personality characteristics

Choosing a Targeting Strategy

Factors to consider: Company resources Product variability Product's life-cycle stage Market variability Competitors' marketing strategies

Occasion segmentation

Segments divided according to occasions, when the buyers: Get the idea to buy Make their purchase Use the purchased item

Age and life-cycle segmentation

dividing a market into different age and life-cycle groups

target market

a set of buyers sharing common needs or characteristics that the company decides to serve

competitive advantage

an advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices

undifferentiated marketing

an approach where firms target a whole market based on common consumer needs

gender segmentation

dividing a market into different segments based on gender

Pediacertain Pet Supplies, a pet-food company, divides the pet market according to the pet owners' gender, occupation, income, and family life cycle. In this case, which of the following variables has the company used for market segmentation?

demographic

Differentiation

differentiate the target offering to create superior customer value

Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called ________ marketing.

differentiated

geographic segmentation

divide a market into different geographical units (neighborhoods, states, regions, countries, cities, nations)

segmentation

divide the

Gulf Coast, a wholesale shrimp distributor, groups its customers by regions in the United States, such as Midwest, Northeast, and Southwest. For each region, Gulf Coast tailors a different set of advertisements and promotions. The supplier is segmenting its market according to ________.

geographic location

________ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior

market segmentation

________ segmentation factors divide buyers into different groups based on social class, lifestyle, or personality characteristics.

psychographic