Marketing Chapter 10: Target Marketing

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Questions and Answers

Which of the following best describes geo-demographic variables?

A combination of lifestyle factors and consumer attitudes

An analysis based solely on income and age

Consumer behaviors influenced by cultural background

A mix of geographic and demographic traits (correct)

What are psychographic variables primarily concerned with?

Consumer characteristics such as lifestyles and interests (correct)

Geographic locations of the target market

Advertising trends in different regions

Economic background of the consumer

Which of the following is considered a psychological influence on consumer behavior?

Family dynamics

Social class

Cultural heritage

Motivations and perceptions (correct)

Which of the following factors does not fall under social influences in consumer behavior?

Cultural traditions Signup and view all the answers

Which factor is NOT included in personal influences on consumer behavior?

Cultural background Signup and view all the answers

What are the five forces that constitute the external marketing environment?

Economic, Social, Political, Technological, Competitive Signup and view all the answers

Which of the following best describes the concept of value in marketing?

The amount of satisfaction derived from a product compared to its costs Signup and view all the answers

What does possession utility refer to in marketing?

The transfer of ownership from the seller to the buyer Signup and view all the answers

Which marketing strategy focuses on developing long-term relationships with customers?

Relationship Marketing Signup and view all the answers

What type of utility is achieved by designing products with desired features?

Form Utility Signup and view all the answers

Which of the following actions is NOT a way to deliver value to customers?

Increasing product prices Signup and view all the answers

In the consumer buying process, which factor influences a customer's decision to purchase?

Availability of Alternatives Signup and view all the answers

Which of the following factors is typically considered a part of the external marketing environment?

Technological advancements Signup and view all the answers

What is the primary focus of the pricing strategy within the marketing mix?

Finding the best price at which to sell a product Signup and view all the answers

Which of the following best defines market segmentation?

The process of dividing a market into customer categories Signup and view all the answers

What do geographic variables in market segmentation refer to?

Location-based units relevant to consumers Signup and view all the answers

In demographic variables, which category includes age ranges such as 20–34 and 50–64?

Age Signup and view all the answers

What aspect does promotion in the marketing mix predominantly focus on?

Communicating information about products effectively Signup and view all the answers

Which demographic variable would most likely NOT influence market segmentation directly?

Promotional strategies Signup and view all the answers

Considering family size as a demographic variable, which option categorizes a consumer with four members?

4–5 Signup and view all the answers

Which of the following best describes the target market?

Consumers expected to show interest in the same products Signup and view all the answers

What is the focus of the political-legal environment in marketing?

The relationship between business and government Signup and view all the answers

Which component of the marketing mix refers to the strategies for pricing and distributing products?

Place Signup and view all the answers

What type of competition involves marketing domestic products against foreign products?

International competition Signup and view all the answers

Which of the following best describes product differentiation?

Creating unique product features to attract customers Signup and view all the answers

What is included in a marketing plan?

Detailed strategies for consumer engagement Signup and view all the answers

Which of the following is NOT a component of the marketing mix?

Regulation Signup and view all the answers

What does the economic environment in marketing typically involve?

Conditions existing in the economic system Signup and view all the answers

Substitute product competition refers to which of the following?

Products that fulfill the same need but are different Signup and view all the answers

Study Notes

Chapter 10: Target Marketing and Market Segmentation

Marketing is defined as an organizational function and a set of processes for creating, communicating, and delivering value to customers, and for managing customer relationships in ways that benefit the organization and its stakeholders.
Value is defined as the relative comparison of a product's benefits versus its costs.
- Value = Benefits / Costs
- Benefits include the functions and emotional satisfaction associated with owning, experiencing, or possessing a product.
Ways a company can deliver value include:
- Developing new products better than existing ones
- Keeping stores open longer during busy periods
- Offering price reductions
- Providing information explaining how a product can be used in new ways
Utility is the ability of a product to satisfy a human want or need. This can be expressed in several ways.
- Form utility - designing products with features customers want
- Time utility - providing products when customers want them
- Place utility - providing products where customers want them
- Possession utility - transferring product ownership to customers
Relationship marketing emphasizes building lasting relationships with customers and suppliers.

The External Marketing Environment

External factors are outside sources that influence a business. These factors are divided into categories influencing the firm and its marketing plan.
- Competitive Environment: The competitive system in which businesses compete. Includes substitute product competition (products similar but not identical), brand competition (similar products by different companies), and international competition (marketing of domestic products against foreign products)
- Economic Environment: The relevant conditions in the economic system where a company operates.
- Technological Environment: All the ways firms create value for their constituents.
- Political-Legal Environment: The relationship between business and government, usually in the form of government regulation of business.
- Sociocultural Environment: The customs, mores, values, and demographic characteristics of the society in which an organization operates.

The Marketing Mix and Plan

Marketing Mix: A combination of product, pricing, promotion, and place strategies used to market products.
Marketing Plan: A detailed strategy that focuses on meeting consumer needs and wants
- Includes marketing objectives (goals of the plan), marketing strategy (detailed actions to take)
- Target Market is a group of people sharing similar wants and needs who are expected to show interest in similar products.
Components of the Marketing Plan: This outlines how the plan will operate to meet objectives. The Marketing Mix is a key component, involving product, price, place (distribution), and promotion aspects.

Understanding Consumer Behavior

Consumer Behavior: The study of the decision process individuals use when buying and consuming products.
- Psychological Influences: Motivations, perceptions, ability to learn, and attitudes
- Personal Influences: Lifestyle, personality, and economic status
- Social Influences: Family, opinion leaders, and reference groups (friends, coworkers, professional contacts)
- Cultural Influences: Culture, subculture, and social class
Consumer Buying Process: A series of stages individuals go through when buying:
- Problem/Need Recognition
- Information Seeking
- Evaluation of Alternatives
- Purchase Decision
- Postpurchase Evaluation

Identifying Market Segments

Geographic Variables: Geographic units useful for developing a segmentation strategy.
Demographic Variables: Population characteristics useful for segmentation strategy (age, education, family life cycle, family size, income, nationality, race, religion, gender).
Geo-demographic Variables: Combination of geographic and demographic traits used for segmentation strategy.
Psychographic Variables: Consumer characteristics like lifestyles, opinions, interests, and attitudes.

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Description

Explore the concepts of target marketing and market segmentation in this quiz based on Chapter 10. Understand how value and utility play critical roles in marketing strategies, and learn how companies can enhance customer satisfaction. Test your knowledge on the processes that create and manage customer relationships effectively.