Ch 7 DSM: Segmentation, Target Marketing, and Positioning

Match each step in the positioning process with its description.

- Analyze competitors' positions: Understand the current lay of the land, including what competitors are out there, and how the target market perceives them - Finalize the marketing mix: Match the elements of the marketing mix to the selected segment - Evaluate responses and modify as needed: Keep up with changing times, adapting brand image as needed - Define your competitive advantage: Provide a reason why consumers will perceive the product as better than that of the competition

Match each generational group with the correct attribute.

- Baby Boomers: Wealthiest generation - Generation Alpha: Nicknamed "iPad kids" - Generation Z: Expect two-way digital conversations with brands - Generation Y: Generally called Millennials - Generation X: Labeled slackers

Match each targeting strategy with its description.

- Differentiated targeting strategy: Developing one or more products for each of several customer groups with different product needs - Undifferentiated targeting strategy: Appealing to a broad spectrum of people - Concentrated targeting strategy: Focusing a firm's efforts on offering one or more products to a single segment

Which of the following are demographic variables? Select all correct answers.

- Ethnic group - Education - Age - Family structure - Gender - Occupation - Income Demographics are statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation, and family structure. Interests, political opinions, social viewpoints, food preferences, and fashion styles are examples of psychographic variables.

Match each phase of targeting with its description.

- Evaluate market segments: Confirm that target segment meets viability requirements - Evaluate market segments: Consider undifferentiated, differentiated, concentrated, and customized approaches - Develop segment profiles: Create descriptions of the typical customer in the segments

Match each term with its definition.

- Geographic segmentation: Tailoring marketing offerings to specific geographic areas - Geographic information system (GIS): A system combining a geographic map with digitally stored data about the consumers in a geographic area - Geotargeting: Marketing to a set of specific users based on their current real-time location - Geodemography: A segmentation strategy that combines geography with demographics

Match each term with its definition.

- Market fragmentation: The division of people into numerous groups with distinct needs and wants, due to their diverse interests and backgrounds - Target marketing strategy: Process of dividing the total market into different segments on the basis of customer characteristics, selecting one or more segments, and developing products to meet the needs of those specific segments - Inclusivity mindset in marketing: Understanding that not everyone's needs are the same, leading to the creation, promotion, and distribution of products and services of value to all types of customers

What is the creation of many consumer groups due to a diversity of distinct needs and wants in modern society?

Market fragmentation

Which of the following describes an approach that modifies a basic good or service to meet the needs of an individual?

Mass customization

Order the three phases of targeting.

Phase 1: Evaluate market segments Phase 2: Develop segment profiles Phase 3: Choose a targeting strategy

What is the name for a strategy that influences how a particular market segment perceives a good or service in comparison with the competition?

Positioning

A(n) ___ strategy develops one or more products for each of several distinct customer groups and makes sure these offerings are kept separate in the marketplace.

differentiated targeting

Analyzing competitors' positions is the ___ stage in a positioning decision.

first

What is the process of dividing a larger market into smaller pieces based on one or more meaningful, shared characteristics called?

Segmentation

Which of the following describes dimensions that divide the total market into fairly homogenous groups, each with different needs and preferences?

Segmentation variables

Order the steps in the positioning process.

Step 1: Analyze competitors' positions Step 2: Define your competitive advantage Step 3: Finalize the marketing mix Step 4: Evaluate responses and modify as needed

What is the definition of psychographics?

The use of psychological and behavioral factors to construct market segments

Which of the following is a measurement that reflects the quantity purchased or frequency of use among consumers of a particular product or service?

Usage rate

A perceptual map is a(n) ___.

technique used to visually describe where brands are "located" in consumers' minds relative to competing brands

What is positioning?

A strategy that influences how a particular market segment perceives a good or service in comparison with the competition

Which statements are true? Select all correct answers.

- Marketers crave experiential loyalty because customers with a very close relationship-driven experience with a brand and offering tend to yield the highest customer lifetime value (CLV). - The 80/20 rule means that it often makes more sense to focus on the smaller number of people who are really into a product rather than on the larger number who are just casual users. - Customer stickiness means that a customer has a strong bond to a particular brand. - ROMI is about the success of marketing investments at the overall firm level, while CLV tracks data at the individual customer level. - The 80/20 rule is a rule of thumb stating that 20 percent of purchasers account for 80 percent of the product's sales.

Match each term with its definition.

- Me Too movement: Campaign against sexual harassment and sexual abuse of women - Androgyny: The possession of both masculine and feminine traits - Gender identity: The personal sense of one's own gender - Gender-bending products: Traditionally sex-typed items adapted to the opposite gender

Match each step in the target marketing process with its description.

- Segmentation: The process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics - Positioning: A strategy that influences how a particular market segment perceives a good or service in comparison with the competition - Targeting: A strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to turn them into customers