Marketing Chp 9 Word Scramble
|
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
| Question | Answer |
| Why business firms segment there markets: | To respond more effectively to the wants of groups of potential buyers to increase sales and profits |
| Market segmentation involves aggregating prospective buyers into groups, or segments, that: | 1) Have common needs 2) will respond similarly to a marketing action |
| Different market segments cause firms to use: | Product Differentiation |
| What is product differentiation | Marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the products as being different and better than competing products |
| What does segmentation do: | The process of segmenting a market and selecting specific segments as targets is the link between the various buyers needs and the organizations marketing program |
| People or organizations should be grouped into a market segment accourding to | - similarity of needs and benefits they look for in making a purchase |
| Devloping Specific Marketing Mix (4 Ps) actions may involve: | - separate offerings and other aspects of themarketing mix, such as price, promotion, or distribution strategies |
| When to Segment Markets | One-Sized fits all mass markets no longer exist, firm goes to the trouble & expense of segmenting its markets when it expects that this will increase it sales, profit, & return on investment, when expenses are greater than the potentially increased sales |
| Three specific segmentation strategies | One product & multiple market segments, multiple products & multiple market segments, segments of one or mass customization |
| What is one product and multiple market segments | When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids the extra costs of developing and producing additional versions of the product |
| What is multiple products and multiple market segments | Marketing different products is more expensive than producing just one but is justified if it serves customers'need better, doesnt reduce quality of increase price, and adds to sales and profits |
| What is segments of one (Mass Customization) | The essence of customer relation management (CRM) every customer has unique wants and needs. Next step beyond build-to-order (BTO), manufacturing a product only when one is ordered |
| What is synergy | Is the increased customer value achieved through performing organizational functions more efficiently, can lead to cannibalization of sales from one segment to another |
| Market segmentation involves aggregating prospective buyers into groups that have two key characteristics, what are they? | The groups should have common needs and respond similarly to a marketing action |
| In terms of market segments and products, whar are the three market segmentation startegies? | 1) One product and Multiple Market Segments 2) Multiple products and multiple markets segments 3) "segments of one" or mass customization |
| The process of segmenting a market and then selecting and reaching the target segments is divided into how many steps? | Five Steps |
| Criteria to Use in Forming the Segments | 1) Simplicity & Cost of Assiging potential buyers to segements 2) Potential for increased profit 3) Similarity of needs of potential buyers w/in a segment 4) Difference of needs of buyers among segments 5) potential of a marketing action to reach a segmen |
| What is simplicity and cost of assigning potential buyers to segments | Need to cost effectively identify characteristics of potential buyers in order to assign them to a segment |
| What is potential for increased profit | If future profit and ROI are maximized without segmentation, dont segment |
| What is similarity of needs of potential buyers within a segment | Potential buyers within a segment should be similar in terms of a marketing action, such as product features sought or advertising media used |
| What is the difference of needs of buyers among segments | If the needs of various segments arent very different, combine them into fewer segments. If increased sales dont offset extra costs combine segments and reduce the number of marketing action |
| What is potential of a marketing action to reach a segment | reaching a segment requires a simple but effective marketing action. If no such action exists, dont segment |
| What are the four general bases of segmentation and the typical variables that can be used to segment U.S. consumer markets | Geographic Segmentation, Demographic Segmentation, Psychographic Segmentation, Behavioral Segmentation |
| What is Geographic Segmentation | Based on where prospective customers live or work (region, city, state) |
| What is Demographic Segmentation | Which is based on some objective physical (gender, race) measurable (age, income) or other classification attribute (birth era, occupation) or prospective customers |
| What is Psychographic Segementation | Which is based on some subjective mental or emotional attributes (personality), aspiration (lifestyle), or needs of prospective customers |
| What is Behavioral Segmentation | Is based on some observable action or attitudes by prospective customers, such as where they buy, what benefits they seek, how frequently they buy, and why they buy |
| What is usage rate | The quantity consumed or patronage (store visits) during a specific period |
| What is frequency marketing | Is a program that encourages consumers to use the product or service repeatedly |
| What is the 80/20 rule | It is what usage rate may be reffered as, it is a concept that suggests 80 percent of a firms sales are obtained from 20 percent of its customers |
| Ways to Segment Organizational Markets | Geographic, Demographic, Behavioral |
| What is gegraphic segments in organizational markets | Consists of metropolitan and micropolitan statistical areas |
| What is demographic segments in organizational markets | consists of NAICs, number of employees, sales |
| What is behavioral segments in organizational markets | consists of usage, rate, application |
| The process of segemnting and targeting markets is a bridge between what two marketing activities | Identifying market needs and taking marketing actions |
| What is the difference between the demographic and behavioral bases of market segmentation | Demographic segmentation is based on some objective physical, measurable, or other classification attribute of prospective customers wheras behavioral segmentation is based on some observable action or attitude by prospective customers |
Created by:
kkolsch