Chapter 7 - Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Individual Marketing

tailoring products and marketing programs to the needs and preferences of individual customers

Age and Life-Cycle Segmentation

dividing a market into different age and life-cycle groups

Income Segmentation

dividing a market into different income segments

​__________ segmentation divides buyers into different segments based on lifestyle or personality characteristics.

A. Behavioral B. Benefit C. Income D. Gender *E. Psychographic

​__________ segmentation divides buyers into segments based on their​ knowledge, attitudes,​ uses, or responses to a product.

A. Demographic B. Gender C. Occasion D. Psychographic *E. Behavioral

The step in designing a customer value-driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market​ __________.

A. identifying B. positioning C. targeting D. differentiation *E. segmentation

The winning value proposition by discount stores such as Walmart and PetSmart can be categorized as​ __________.

A. less for much less B. more for more *C. the same for less D. more for less E. more for the same

Using​ a(n) __________ marketing​ strategy, a firm might decide to ignore market segment differences.

A. local B. differentiated C. individual D. micromarketing *E. undifferentiated

Market​ __________ evaluates each market​ segment's attractiveness and selects one or more segments to serve.

A. segmentation B. positioning C. relationships D. differentiation *E. targeting

Amazon and GEICO set themselves apart with their​ smooth-functioning direct delivery strategy referred to as​ __________ differentiation.

A. services B. product *C. channel D. image E. people

Instead of going after a small share of a large​ market, a firm goes after a large share of a smaller niche segment. This type of marketing strategy is known as​ __________.

A. undifferentiated marketing B. segmented marketing C. micromarketing *D. concentrated marketing E. differentiated marketing

Positioning

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Market Segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

Undifferentiated Marketing (or Mass Marketing)

a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer

Differentiated Marketing (or Segmented Marketing)

a market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each

Concentrated Marketing (or Niche Marketing)

a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches

Target Market

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

Positioning Statement

a statement that summarizes company or brand positioning using this form: to (target segment and need) our (brand) is (concept) that (point of difference)

Which differentiation strategy does the Atlanta Hawks seem to be employing?

a. channel differentiation b. people differentiation c. services differentiation *d. product differentiation e. price differentiation

While Millennials are the primary target customer of the Atlanta Hawks, it is clear that the efforts of the organization to facilitate social media activity also appeals to other customer segments including Gen X and Baby Boomers. Thus, it is clear that the Hawks are employing a(n) __________________ targeting strategy.

a. concentrated b. customized c. undifferentiated d. niche *e. differentiated

Having an arena with bandwidth that is stronger than the average event venue is one way that the Atlanta Hawks have ______________________ their market offering.

a. concentrated b. segmented c. targeted d. micromarketed *e. differentiated

The Atlanta Hawks recently renovated their home arena with Millenials as the target customer group. This is based on ______________ segmentation.

a. geographic b. lifestyle c. psychographic *d. demographic e. behavioral

In terms of general value propositions, the Hawks are providing greater value with a ____________________ strategy.

a. less for much less *b. more for the same c. more for less d. the same for less e. more for more

Differentiation

actually differentiating the market offering to create superior customer value

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

Geographic Segmentation

dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods

Gender Segmentation

dividing a market into different segments based on gender

Psychographic Segmentation

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

Behavioral Segmentation

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

Occasion Segmentation

dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item

Benefit Segmentation

dividing the market into segments according to the different benefits that consumers seek from the product

Demographic Segmentation

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

Market Targeting

evaluating each market segment's attractiveness and selecting one or more segments to enter

Hyperlocal Social Marketing

location based targeting to consumers in local communities or neighborhoods using digital and social media

Local Marketing

tailoring brands and marketing to the needs and wants of local customer segments - cities, neighborhoods, and even specific stores

Micromarketing

tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing

Value Proposition

the full positioning of a brand - the full mix of benefits on which it is positioned

The Law of Focus

the most powerful concept in marketing is owning a word in the prospect's mind

Product Position

the way a product is defined by consumers on important attributes- the place the product occupies in consumers' minds relative to competing products