Marketing Chapter 9

When selecting a target market, firms should attempt to:

- determine consumers' objectives - describe potential opportunities for mass-optimization - evaluate the geographic constraints to psychographic segmentation - match the firm's competency with a market segment's attractiveness - identify potential repositioning strategies

Psychographics

Allows people to describe themselves using characteristics that help them choose how they occupy their time (behavior) and what underlying psychological reasons determine these choices.

Behavioral segmentation

Divides customers into groups based on how they use the product or service.

Demographic segmentation

Groups consumers according to easily measured, objective characteristics such as age, gender, income, and education.

Benefit segmentation

Groups consumers on the basis of the benefits they derive from products or services.

Geographic segmentation

Organizes customers into groups on the basis of where they live.

Geodemographic segmentation

Uses a combination of geographic, demographic, and lifestyle characteristics to classify consumers.

When Starbucks first opened, many critics suggested, "No one will pay $4.00 for a cup of coffee." Starbucks' critics suggested consumers would not be __________ to the company's offerings. a. responsive b. perceptive c. reachable d. identifiable e. quantifiable

a. responsive

____________ involves defining the firm's marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of the firm's offerings relative to the competitors' offerings. a. Processing b. Perceptualizing c. Positioning d. Proportioning e. Prospecting

c. positioning --> this is the definition of positioning, the final step in the STP process