Marketing Ch. 9 Flashcards
Unlock all answers in this set
Unlock answersquestion
How many steps are in the segmentation, targeting and positioning process?
answer
5
question
What are the steps of STP?
answer
1) establish strategy or objectives (S) 2) Use Segmentation methods (S) 3) Evaluate segmentation attractiveness (T) 4) Select target market (T) 5) Identify and develop positioning strategy (P)
question
What are the 5 segmentation methods?
answer
Geographic, demographic, psychographic, benefit, and behavioral
question
Geographic segmentation
answer
organizes customers into groups on the basis of where they live
question
Demographic segmentation
answer
groups consumers according to easily measured, objective characteristics such as age, gender, income and education
question
Psychographic segmentation
answer
how customers actually describe themselves
question
Self-values, self-concept and lifestyles describe what segmentation method?
answer
Psychographic
question
Self-Values
answer
goals for life, not just the goals one wants to accomplish in the day
question
self-concept
answer
people's self image, image people ideally have of themselves
question
lifestyles
answer
the way we live
question
VALS (Value and Life Style Survey)
answer
most widely used tool to support psychographic segmentation efforts, owned and operated by Strategic Business Insights (SBI)
question
True or False, firms are finding that psychographic segmentation schemes like VALS are often more useful for predicting consumer behavior than are demographics
answer
True
question
benefit segmentation
answer
groups consumers on the basis of the benefits they derive from products or services; ex) Hollywood movies, people visit theaters to obtain vast variety of benefits (want to laugh= adam sandler)
question
behavioral segmentation
answer
divides customers into groups on the basis of how they use the product or service; occasion & loyalty
question
occasion and loyalty are part of which segmentation method?
answer
behavioral segmentation
question
Occasion
answer
based on when a product/service is consumed; ex) Men's warehouse uses for promotions, some need suits for work every day, some just want for special occasion (prom, wedding)
question
Loyalty
answer
companies investing in this segmentation; using retention and loyalty initiatives to retain their most profitable customers ex) punchcards,
question
T/F: Firms often use a combination of segmentation methods
answer
True
question
geodemographic segmentation
answer
combination of geography, demographic and lifestyle characteristics to classify customers
question
What are the 5 parts of evaluating the segment attractiveness?
answer
1) Substantial 2) Identifiable 3) Reachable 4) Profitable 5) Responsive
question
Identifiable
answer
firms must be able to identify who is within their market to be able to design products or services to meet their needs
question
Substantial
answer
measure the target markets size; if market is too small or its buying power is insignificant, it won't generate sufficient profits or be able to support the marketing mix activities
question
Reachable
answer
Best product cannot have any impact if that market cannot be reached (or accessed) through persuasive communications and product distribution
question
Responsive
answer
customers in the segment must react similarly and positively to the firms offering
question
Profitable
answer
marketers must focus on their assessments on the potential profit-ability of each segment, both current and future
question
Segment Profitability Equation
answer
= (segment size x segment adoption percentage x purchase behavior x profit margin percentage) - fixed costs
question
What are the 4 target strategies?
answer
1) undifferentiated (aka mass marketing) 2) differentiated 3) concentrated 4) micromarketing (aka one-to-one)
question
undifferentiated target strategy (aka mass marketing)
answer
-when everyone might be considered a potential user of its product ex) salt, sugar
question
differentiated target strategy
answer
target several market segments with a different offering for each ex) Conde Naste has 20 niche magizines (Vogue for fashion lovers, GQ for fashion-conscious men, The New Yorker for literature lovers); ex) Nike shoes (basketball, football, running, fashion, skateboarding shoes)
question
Concentrated target strategy
answer
when an organization selects a single, primary target market and focuses all its energies on providing a product to fit that market's needs ex) Newton running, focuses only on runners who prefer to land on their forefeet
question
Mircromarketing (aka one-to-one)
answer
extreme form of segmentation; when a firm tailors a product to suit an individual customer's wants or needs
question
T/F: its easier for an internet-based company to offer one-to-one marketing
answer
True
question
Cookies
answer
small text files a website stores in a visitor's browser, provide a unique identification of each potential customer who visits and details how the customer has searched the site
question
The last step of STP, Identifying and Developing Positioning Strategy, has which two options?
answer
Market positioning and value proposition
question
market positioning
answer
involves a process of defining the market mix variables so that target customers have a clear, distinctive desirable understanding of what the product does or represents in comparison with competing products
question
value proposition
answer
communicates the customers benefits to be received from a product/service, thereby provides reasons for wanting to purchase it
question
The value proposition is when ______ & ______ overlap
answer
customer needs and wants & company offering (pg. 287)
question
Value
answer
-a popular positioning method bc the relationship of price to quality is among the most important considerations for consumers when they make a purchase decision -Value does not necessarily mean low price ex) Louis Vuiton; target market likes rare and expensive
question
Perceptual Map
answer
displays the position of products or brands in the consumer's mind (pg. 291)
