MKT 337 Chapters 4 & 5 Questions
and Answers.
market - Answer a group of potential customers with similar needs who are willing to
exchange something of value with sellers offering various goods or services—that is, ways of
satisfying those needs.
generic market - Answer a market with broadly similar needs and sellers offering various,
often diverse, ways of satisfying those needs. It is sometimes hard to understand and define
generic markets because product types that are quite different may compete with one another.
product-market - Answer a market with very similar needs and sellers offering various close
substitute ways of satisfying those needs.
Market segmentation - Answer a two-step process of (1) naming broad product-markets and
(2) segmenting these broad product-markets in order to select target markets and develop
suitable marketing mixes.
For example, although it might be easy to call Millennials "digital extroverts spreading trends
and experiences," a recent study found only 42 percent fit that stereotype. Other Millennials
use technology differently and have different attitudes about social media.
market segment - Answer a (relatively) homogeneous group of customers who will respond
to a marketing mix in a similar way.
This part of the market segmentation process takes a different approach from the naming part.
Here we look for similarities rather than basic differences in needs. Segmenters start with the
idea that each person is one of a kind but that it may be possible to aggregate some similar
people into a product-market.
single target market approach - Answer segmenting the market and picking one of the
homogeneous segments as the firm's target market.
multiple target market approach - Answer segmenting the market and choosing two or more
segments, and then treating each as a separate target market needing a different marketing
mix.
combined target market approach - Answer combining two or more submarkets into one
larger target market as a basis for one strategy.
, Combiners - Answer Combiners try to increase the size of their target markets by combining
two or more segments. Combiners look at various submarkets for similarities rather than
differences. Then they try to extend or modify their basic offering to appeal to these
"combined" customers with just one marketing mix. For example, a combiner who faces the
broad bicycle-riders product-market shown in Exhibit 4-4 might try to develop a marketing mix
that would do a pretty good job of appealing to both the Exercisers and the Off-road
adventurers. The combined market would be bigger than either segment by itself.
Segmenters - Answer Segmenters aim at one or more homogeneous segments and try to
develop a different marketing mix for each segment. Segmenters usually fine-tune their
marketing mixes for each target market—perhaps making basic changes in the product itself—
because they want to satisfy each segment very well. segmenters believe that aiming at one, or
some, of these smaller markets makes it possible to provide superior value and satisfy them
better. This then provides greater profit potential for the firm.
Qualifying dimensions - Answer Qualifying dimensions are those relevant to including a
customer type in a product-market.
Determining dimensions - Answer Determining dimensions are those that actually affect the
customer's purchase of a specific product or brand in a product-market.
A prospective car buyer, for example, has to have enough money—or credit—to buy a car and
insure it. Our buyer also needs a driver's license. This still doesn't guarantee a purchase. He or
she must have a real need—such as a job that requires "wheels" or kids who have to be
carpooled. This need may motivate the purchase of some car. But these qualifying dimensions
don't determine what specific brand or model car the person might buy. That depends on more
specific interests
Clustering techniques - Answer Clustering techniques try to find similar patterns within sets
of data. Clustering groups customers who are similar on their segmenting dimensions into
homogeneous segments. Clustering approaches use computers to do what previously was done
mainly with intuition and judgment.
customer relationship management (CRM) - Answer A variation of the clustering approach
relies on customer relationship management (CRM), where the seller fine-tunes the marketing
effort with information from a detailed customer database. The database stores information
that is useful for segmentation. Analytic software aids in identifying customer segments, so that
each can be delivered to a different marketing mix.
Positioning - Answer Positioning refers to how customers think about proposed or present
brands in a market. Without a realistic view of how customers think about offerings in the
market, it's hard for the marketing manager to differentiate. At the same time, the manager
should know how he or she wants target customers to think about the firm's marketing mix.
and Answers.
market - Answer a group of potential customers with similar needs who are willing to
exchange something of value with sellers offering various goods or services—that is, ways of
satisfying those needs.
generic market - Answer a market with broadly similar needs and sellers offering various,
often diverse, ways of satisfying those needs. It is sometimes hard to understand and define
generic markets because product types that are quite different may compete with one another.
product-market - Answer a market with very similar needs and sellers offering various close
substitute ways of satisfying those needs.
Market segmentation - Answer a two-step process of (1) naming broad product-markets and
(2) segmenting these broad product-markets in order to select target markets and develop
suitable marketing mixes.
For example, although it might be easy to call Millennials "digital extroverts spreading trends
and experiences," a recent study found only 42 percent fit that stereotype. Other Millennials
use technology differently and have different attitudes about social media.
market segment - Answer a (relatively) homogeneous group of customers who will respond
to a marketing mix in a similar way.
This part of the market segmentation process takes a different approach from the naming part.
Here we look for similarities rather than basic differences in needs. Segmenters start with the
idea that each person is one of a kind but that it may be possible to aggregate some similar
people into a product-market.
single target market approach - Answer segmenting the market and picking one of the
homogeneous segments as the firm's target market.
multiple target market approach - Answer segmenting the market and choosing two or more
segments, and then treating each as a separate target market needing a different marketing
mix.
combined target market approach - Answer combining two or more submarkets into one
larger target market as a basis for one strategy.
, Combiners - Answer Combiners try to increase the size of their target markets by combining
two or more segments. Combiners look at various submarkets for similarities rather than
differences. Then they try to extend or modify their basic offering to appeal to these
"combined" customers with just one marketing mix. For example, a combiner who faces the
broad bicycle-riders product-market shown in Exhibit 4-4 might try to develop a marketing mix
that would do a pretty good job of appealing to both the Exercisers and the Off-road
adventurers. The combined market would be bigger than either segment by itself.
Segmenters - Answer Segmenters aim at one or more homogeneous segments and try to
develop a different marketing mix for each segment. Segmenters usually fine-tune their
marketing mixes for each target market—perhaps making basic changes in the product itself—
because they want to satisfy each segment very well. segmenters believe that aiming at one, or
some, of these smaller markets makes it possible to provide superior value and satisfy them
better. This then provides greater profit potential for the firm.
Qualifying dimensions - Answer Qualifying dimensions are those relevant to including a
customer type in a product-market.
Determining dimensions - Answer Determining dimensions are those that actually affect the
customer's purchase of a specific product or brand in a product-market.
A prospective car buyer, for example, has to have enough money—or credit—to buy a car and
insure it. Our buyer also needs a driver's license. This still doesn't guarantee a purchase. He or
she must have a real need—such as a job that requires "wheels" or kids who have to be
carpooled. This need may motivate the purchase of some car. But these qualifying dimensions
don't determine what specific brand or model car the person might buy. That depends on more
specific interests
Clustering techniques - Answer Clustering techniques try to find similar patterns within sets
of data. Clustering groups customers who are similar on their segmenting dimensions into
homogeneous segments. Clustering approaches use computers to do what previously was done
mainly with intuition and judgment.
customer relationship management (CRM) - Answer A variation of the clustering approach
relies on customer relationship management (CRM), where the seller fine-tunes the marketing
effort with information from a detailed customer database. The database stores information
that is useful for segmentation. Analytic software aids in identifying customer segments, so that
each can be delivered to a different marketing mix.
Positioning - Answer Positioning refers to how customers think about proposed or present
brands in a market. Without a realistic view of how customers think about offerings in the
market, it's hard for the marketing manager to differentiate. At the same time, the manager
should know how he or she wants target customers to think about the firm's marketing mix.
