Ch. 6: identifying market segments and targets

situational factors

Urgency, specific application, and size of order are examples of ________ segmentation variables for business markets

flexible market offering

A ________ consists of two parts: a naked solution and discretionary options

demographic variables

A marketer is interested in segmenting a business market on ________ if the marketer intends to segment the market based on industries and geographical areas to serve

personal characteristics

A marketer is interested in segmenting a business market on ________ if the marketer's variables are loyalty and attitudes toward risk

actionable

For a segment to meet the ________ criterion of usefulness, the marketer must be able to formulate effective programs for attracting and serving the segments

segment acid test

If an organization's marketing department wants to create "segment storyboards" to test the attractiveness of each segment's positioning strategy, it would most likely occur in the ________ step of the segmentation process

psychographic

In _____ segmentation, buyers are divided into groups on the basis of psychological/personality traits, lifestyle, or values

behavioral

In _____ segmentation, marketers divide buyers into groups on the basis of their knowledge of, attitude toward, use of, or response to a product

mass (undifferentiated)

In ________ marketing, the firm ignores segment differences and goes after the whole market with one offer

differentiated

In ________ marketing, the firm operates in several market segments and designs different products for each segment. A segment is unattractive if buyers possess strong or growing bargaining power

segment identification

In the ________ step of the market segmentation process, the marketer determines which demographics, lifestyles, and usage behaviors make each needs-based segment distinct and identifiable

segment attractiveness

In the ________ step of the market segmentation process, the marketer evaluates the segment using criteria such as market growth and market access

heterogeneous

Segmentation is critical because demand is often _____

accessible

The characteristic of useful market segments that relates to whether the segments can be effectively reached and served is whether the segment is ________

substantial

To be useful, a market segment should be ________, which means the largest possible homogeneous group worth going after with a tailored marketing program

1. needs-based segmentation 2. segment identification 3. segment attractiveness 4. segment profitability 5. segment positioning 6. segment acid test 7. marketing mix strategy

What are the 7 steps in the segmentation process?

1. heterogeneous (differentiable) 2. measurable 3. substantial 4. accessible 5. actionable

What are the five criteria for a segmentable market?

geographic, demographic, psychographic, and behavioral

What are the major segmentation variables?

consumer motivation and consumer resources

What are the two main dimensions of the VALS segmentation framework?

single-segment concentration

With ______, the firm markets to only one particular segment. This allows the firm to gain deep knowledge of the segment's needs and achieves a strong market presence

naked solution

_____ contains the product and service elements that all segment customers value

niche

_____ is a more narrowly defined customer group seeking a distinctive mix of benefits within a segment

mass marketing

_____ is a single offering for all buyers

VALS

_____ is based on psychological traits for people and classifies US adults into eight primary groups based on responses to a questionnaire featuring four demographic and 35 attitudinal questions

mass customization

_____ is the ability of a company to meet each customer's requirements - prepare on a mass basis individually designed products, services, programs, and communications

market segmentation

_____ is the process of dividing a large market into smaller target markets, or customer groups with similar needs and/or desires

demographic

_________ variables are generally felt to be the most important to segment a business market