MKTG 3310 - EXAM 2 STUDY GUIDE
Segmentation - Answers - Separating prospective customers into groups based on
needs/response to marketing actions
needs to be economically feasible
two things that are stressed in segmentation - Answers - meaningful groups
customized marketing mix
what is the long tail? - Answers - niche products
a lot of products that sell in small quantities (tail) as compared to a small number of best
selling products (head)
what is the long tail enabled by? - Answers - Breaking free of the constraints of physical
space
finding ways to talk to market segments economically
new distribution systems
where does the majority of potential revenue fall- in the head or in the tail? - Answers -
in the tail
where are the products with the majority of demand located- in the head or in the tail? -
Answers - in the head
double jeopardy - Answers - bias toward popular products
products are given the benefit of the doubt bc of their popularity
natural monopoly - Answers - we are taught to lean toward brand products because
niche products are often seen as low-quality
generic market - Answers - Market with broadly similar needs and sellers offering
diverse ways of satisfying those needs
many deviations
product market - Answers - Market with very similar needs and sellers offering various
close substitute ways of satisfying those needs
, slight deviations
target market
marketing segment - Answers - relatively homogenous group of customers who respond
to the marketing mix in the same way
generic approaches for segmenting product markets - Answers - single target market
multiple target markets
combine
criteria in creating segments - Answers - Homogeneous within the segment- we want
the segment to react similarly to things- example- reacting to humor in commercial
Heterogeneous between the segments- we want to make them different than our other
market segment- if we don't there could be segment bleed
Substantial (profitable)
Operational (segmenting variables should be useful)
what do you do if a segment is not profitable ? - Answers - combine it with another
segment
geographic variable - Answers - where you live/region
demographic variable - Answers - observable about others
psychographic variable - Answers - needs/values/morals
in the consumer's head
behavioral variable - Answers - things you do
tendencies in people
hardest variable to collect - Answers - psychographic
easiest variable to collect - Answers - geographic
what two variables are most useful - Answers - geographic and behavioral
what two variables are least useful - Answers - psychographic and demographic
Segmentation - Answers - Separating prospective customers into groups based on
needs/response to marketing actions
needs to be economically feasible
two things that are stressed in segmentation - Answers - meaningful groups
customized marketing mix
what is the long tail? - Answers - niche products
a lot of products that sell in small quantities (tail) as compared to a small number of best
selling products (head)
what is the long tail enabled by? - Answers - Breaking free of the constraints of physical
space
finding ways to talk to market segments economically
new distribution systems
where does the majority of potential revenue fall- in the head or in the tail? - Answers -
in the tail
where are the products with the majority of demand located- in the head or in the tail? -
Answers - in the head
double jeopardy - Answers - bias toward popular products
products are given the benefit of the doubt bc of their popularity
natural monopoly - Answers - we are taught to lean toward brand products because
niche products are often seen as low-quality
generic market - Answers - Market with broadly similar needs and sellers offering
diverse ways of satisfying those needs
many deviations
product market - Answers - Market with very similar needs and sellers offering various
close substitute ways of satisfying those needs
, slight deviations
target market
marketing segment - Answers - relatively homogenous group of customers who respond
to the marketing mix in the same way
generic approaches for segmenting product markets - Answers - single target market
multiple target markets
combine
criteria in creating segments - Answers - Homogeneous within the segment- we want
the segment to react similarly to things- example- reacting to humor in commercial
Heterogeneous between the segments- we want to make them different than our other
market segment- if we don't there could be segment bleed
Substantial (profitable)
Operational (segmenting variables should be useful)
what do you do if a segment is not profitable ? - Answers - combine it with another
segment
geographic variable - Answers - where you live/region
demographic variable - Answers - observable about others
psychographic variable - Answers - needs/values/morals
in the consumer's head
behavioral variable - Answers - things you do
tendencies in people
hardest variable to collect - Answers - psychographic
easiest variable to collect - Answers - geographic
what two variables are most useful - Answers - geographic and behavioral
what two variables are least useful - Answers - psychographic and demographic
