Chapter 7: Customer-Driven Marketing Strategy Quiz
12 Questions
9 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is market segmentation?

  • The process of combining small markets into large heterogeneous markets
  • The process of creating value for target customers
  • The process of dividing large heterogeneous markets into small markets based on unique needs (correct)
  • The process of targeting large homogeneous markets with products and services

    • Which of the following is NOT a method of segmenting consumer markets?

  • Behavioral segmentation
  • Economic segmentation (correct)
  • Geographic segmentation
  • Demographic segmentation

    • What is the purpose of market targeting?

  • To create value for target customers
  • To divide large homogeneous markets into small markets
  • To reach large heterogeneous markets more efficiently and effectively (correct)
  • To combine small markets into large heterogeneous markets

    • What is the objective of market differentiation?

    <p>To make a product or service appear distinct from its competitors in the eyes of the target market</p> Signup and view all the answers

    Why is it important to segment international markets?

    <p>To tailor products and services to the unique needs of different countries and cultures</p> Signup and view all the answers

    Which segmentation method categorizes consumers based on their lifestyles, values, and personality traits?

    <p>Psychographic segmentation</p> Signup and view all the answers

    What is geographic segmentation in market segmentation?

    <p>Dividing the market into different geographical units such as nations, regions, states, counties, or cities</p> Signup and view all the answers

    What is demographic segmentation based on?

    <p>Age and life-cycle stage</p> Signup and view all the answers

    What is psychographic segmentation based on?

    <p>Social class, lifestyle, or personality traits</p> Signup and view all the answers

    What does behavioral segmentation divide buyers into groups based on?

    <p>Usage rate and loyalty status</p> Signup and view all the answers

    What is geodemographic segmentation an example of?

    <p>Psychographic segmentation</p> Signup and view all the answers

    What does PRIZM NE classify every American household into?

    <p>66 unique segments organized into 14 different social groups</p> Signup and view all the answers

    Study Notes

    Market Segmentation

    • Market segmentation is the process of dividing a larger market into smaller groups of consumers with similar needs, characteristics, or behaviors.

    Methods of Market Segmentation

    • Geographic segmentation: divides consumers based on their geographical location, climate, or region.
    • Demographic segmentation: based on demographic variables such as age, sex, income, occupation, education, and family size.
    • Psychographic segmentation: based on consumers' lifestyles, values, and personality traits.
    • Behavioral segmentation: divides buyers into groups based on their knowledge, attitude, use, or response to a product.
    • Geodemographic segmentation: combines geographic and demographic characteristics to segment consumers.

    Market Targeting

    • The purpose of market targeting is to select the most profitable segments and develop marketing mixes tailored to each segment.

    Market Differentiation

    • The objective of market differentiation is to create a unique identity for a product or service, distinguishing it from competitors.

    International Market Segmentation

    • It is important to segment international markets because consumer needs, preferences, and behaviors can vary significantly across different countries and regions.

    PRIZM NE

    • PRIZM NE is a geodemographic segmentation tool that classifies every American household into one of 66 distinct lifestyle types, based on demographics, lifestyle, and behavior.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    Test your knowledge on market segmentation, market targeting, differentiation, and positioning in the context of customer-driven marketing strategy. Explore key concepts from Chapter 7 of 'Customer-Driven Marketing Strategy: Creating Value for Target Customers'.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser