MKT 3401 FINAL LEDET STUDY GUIDE
market - Answer -people or organizations with needs or wants and the ability and
willingness to buy
market segment - Answer -a subgroup of people or organizations sharing one or more
characteristics that cause them to have similar product needs
Market Segmentation - Answer -the process of dividing a market into meaningful,
relatively similar, and identifiable segments or groups
What are the 4 basic criteria for a segmentation scheme to be useful? - Answer -1.) a
market segment must be substantial and have enough potential customers to be viable
2.) a market segment must be identifiable and measurable
3.) members of a market segment must be accessible to marketing efforts
4.) a market segment must respond to particular marketing efforts in a way that
distinguishes it from other segments
5 Bases for Segmenting Consumer Markets - Answer -1.) geographic segmentation
2.) demographic segmentation
3.) psychological segmentation
4.) benefit segmentation
5.) usage-rate segmentation
geographic segmentation - Answer -segmenting markets by region of a country or the
world, market size, market density, or climate
demographic segmentation - Answer -segmenting markets by age, gender, income,
ethnic background, and family life cycle
Psychological segmentation - Answer -segmenting markets on the basis of personality,
motives, lifestyles, and geodemographics
geodemographic segmentation - Answer -segmenting potential customers into
neighborhood lifestyle categories
benefit segmentation - Answer -the process of grouping customers into market
segments according to the benefits they seek from the product
usage-rate segmentation - Answer -dividing a market by the amount of product bought
or consumed
80/20 principle - Answer -a principle holding that 20 percent of all customers generate
80 percent of the demand
, When to use the three general strategies for selecting target markets - Answer -1.)
undifferentiated
2.) concentrated
3.) multi segment
undifferentiated targeting strategy - Answer -a marketing approach that views the
market as one big market with no individual segments and thus uses a single marketing
mix
concentrated targeting strategy - Answer -a strategy used to select one segment of a
market for targeting marketing efforts
multisegment targeting strategy - Answer -a strategy that chooses two or more well-
defined market segments and develops a distinct marketing mix for each
What are the different positioning bases? - Answer -- attribute: The product is
associated with an attribute product feature or customer benefit Ex: removing toxins
from product
- price: stress high price as a signal of quality or emphasize low price as an indication of
value Ex. Walmart
- application: stresses uses or applications can be in effective means of positioning a
product with buyers Ex. Multiple ways to use product
- product user: focuses on a personality or type of user. Ex. Banana republic
- product class: the objective is to position the product as being associated with another
product. Ex. Butter and margarine
- competitor: positioning against competitors is a part of any positioning strategy. Ex.
Apple and Samsung
- emotion: positioning using emotion focuses on how the product makes consumers
feel. Ex. "Just do it" Nike
Types of Consumer Products - Answer -convenience, shopping, specialty, unsought
product - Answer -everything, both favorable and unfavorable, that a person receives in
an exchange
convenience products - Answer -items that the consumer purchases frequently,
conveniently, and with a minimum of shopping effort
market - Answer -people or organizations with needs or wants and the ability and
willingness to buy
market segment - Answer -a subgroup of people or organizations sharing one or more
characteristics that cause them to have similar product needs
Market Segmentation - Answer -the process of dividing a market into meaningful,
relatively similar, and identifiable segments or groups
What are the 4 basic criteria for a segmentation scheme to be useful? - Answer -1.) a
market segment must be substantial and have enough potential customers to be viable
2.) a market segment must be identifiable and measurable
3.) members of a market segment must be accessible to marketing efforts
4.) a market segment must respond to particular marketing efforts in a way that
distinguishes it from other segments
5 Bases for Segmenting Consumer Markets - Answer -1.) geographic segmentation
2.) demographic segmentation
3.) psychological segmentation
4.) benefit segmentation
5.) usage-rate segmentation
geographic segmentation - Answer -segmenting markets by region of a country or the
world, market size, market density, or climate
demographic segmentation - Answer -segmenting markets by age, gender, income,
ethnic background, and family life cycle
Psychological segmentation - Answer -segmenting markets on the basis of personality,
motives, lifestyles, and geodemographics
geodemographic segmentation - Answer -segmenting potential customers into
neighborhood lifestyle categories
benefit segmentation - Answer -the process of grouping customers into market
segments according to the benefits they seek from the product
usage-rate segmentation - Answer -dividing a market by the amount of product bought
or consumed
80/20 principle - Answer -a principle holding that 20 percent of all customers generate
80 percent of the demand
, When to use the three general strategies for selecting target markets - Answer -1.)
undifferentiated
2.) concentrated
3.) multi segment
undifferentiated targeting strategy - Answer -a marketing approach that views the
market as one big market with no individual segments and thus uses a single marketing
mix
concentrated targeting strategy - Answer -a strategy used to select one segment of a
market for targeting marketing efforts
multisegment targeting strategy - Answer -a strategy that chooses two or more well-
defined market segments and develops a distinct marketing mix for each
What are the different positioning bases? - Answer -- attribute: The product is
associated with an attribute product feature or customer benefit Ex: removing toxins
from product
- price: stress high price as a signal of quality or emphasize low price as an indication of
value Ex. Walmart
- application: stresses uses or applications can be in effective means of positioning a
product with buyers Ex. Multiple ways to use product
- product user: focuses on a personality or type of user. Ex. Banana republic
- product class: the objective is to position the product as being associated with another
product. Ex. Butter and margarine
- competitor: positioning against competitors is a part of any positioning strategy. Ex.
Apple and Samsung
- emotion: positioning using emotion focuses on how the product makes consumers
feel. Ex. "Just do it" Nike
Types of Consumer Products - Answer -convenience, shopping, specialty, unsought
product - Answer -everything, both favorable and unfavorable, that a person receives in
an exchange
convenience products - Answer -items that the consumer purchases frequently,
conveniently, and with a minimum of shopping effort
