Marketing Chapter 10: Target Marketing

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Questions and Answers

What are geo-demographic variables primarily used for?

Analyzing product performance

Creating a segmentation strategy (correct)

Measuring consumer satisfaction

Developing a pricing strategy

Which characteristic is NOT considered a psychographic variable?

Interests

Lifestyle

Economic status (correct)

Attitudes

Which of the following best describes psychological influences on consumer behavior?

The cultural beliefs and traditions affecting purchases

A person's motivations and perceptions (correct)

The influence of social networks

The impact of family on product choice

What do social influences in consumer behavior primarily encompass?

Family and reference groups Signup and view all the answers

Which factor is classified as a cultural influence on consumer behavior?

Social class Signup and view all the answers

What is the primary goal of marketing?

To communicate and deliver value to customers Signup and view all the answers

What does the concept of 'value' compare?

The benefits of a product versus its costs Signup and view all the answers

Which component is NOT considered a type of utility?

Market utility Signup and view all the answers

What is 'relationship marketing' focused on?

Building lasting relationships with customers and suppliers Signup and view all the answers

Which of the following is NOT a benefit associated with owning a product?

Financial investment return Signup and view all the answers

What is the purpose of time utility in marketing?

Delivering products when customers want them Signup and view all the answers

Which of the following does not pertain to the external marketing environment?

Internal organizational policies Signup and view all the answers

How can a company enhance its value offering?

By extending store hours during busy seasons Signup and view all the answers

Which component of the marketing mix focuses on the techniques for communicating product information?

Promotion Signup and view all the answers

What is the primary purpose of market segmentation?

To categorize consumers based on similarities Signup and view all the answers

Which of the following is not considered a demographic variable in market segmentation?

Geographic location Signup and view all the answers

Which segment would be classified as 'older married with children under 18' in the family life cycle?

Older married with children under 18 Signup and view all the answers

Which of the following best defines 'Place' in the marketing mix?

Choosing marketing channels Signup and view all the answers

Which income category includes individuals earning between $15,000 and $24,999?

Lower-middle income Signup and view all the answers

Which of the following demographic variables might be considered when evaluating consumers?

Geographic location Signup and view all the answers

Which of the following age groups falls under the category of '12-19'?

Teenagers Signup and view all the answers

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

Government regulations affecting business Signup and view all the answers

Which of the following best describes the competitive environment?

The structure and interactions of competing businesses Signup and view all the answers

What does product differentiation rely on?

Creating a unique product feature or image Signup and view all the answers

What encompasses the marketing mix?

Product, pricing, promotion, and distribution strategies Signup and view all the answers

Which term refers to a product that fulfills the same need but is dissimilar to competitors' offerings?

Substitute product competition Signup and view all the answers

What is the purpose of a marketing plan?

To define detailed strategies to focus marketing efforts Signup and view all the answers

What type of competition occurs between similar products that target the same audience?

Brand competition Signup and view all the answers

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

Personality Signup and view all the answers

Study Notes

Chapter 10: Target Marketing and Market Segmentation

Marketing Defined: 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: 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.
Delivering Value (Examples): Developing a new product superior to existing ones, keeping a store open longer during busy periods, offering price reductions, or providing information on product usage.
Value and Utility: Value provides customers with utility, the ability of a product to satisfy a human want or need. This includes:
- 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: A marketing strategy that emphasizes building lasting relationships with customers and suppliers.

The External Marketing Environment

Scope: External factors (outside the organization) that influence a business.
Components:
- Competitive Environment: The competitive system in which businesses compete (substitute, brand, and international competition).
- Economic Environment: Relevant conditions in the economic system where the company operates.
- Technological Environment: All the ways firms create value for their constituents.
- Political-Legal Environment: The relationship between business and government, often in the form of government business regulation.
- Sociocultural Environment: The customs, mores, values, and demographic characteristics of the society where the business operates.

Strategy: The Marketing Mix

Marketing Mix: The combination of product, pricing, promotion, and place (distribution) strategies used to market products.
Marketing Plan: A detailed strategy to focus marketing efforts on consumers' needs and wants.
Marketing Objectives: The goals marketing intends to accomplish within a marketing plan.

Components of the Marketing Plan

Overall Business Mission: The overall target and purpose of the company.
Marketing Objectives: Marketing's intentions and goals.
Marketing Strategy: The actions to achieve the objectives.
Marketing Mix: Four P's—product, pricing, place, and promotion.
Target Markets: The defined potential customer groups.

Strategy: The Marketing Mix (Continued) (Further Definitions)

Product: A good, service, or idea marketed to fill consumer needs and wants.
Product Differentiation: Creating a product feature or image distinctive enough to attract customers, differentiating it from competitors.
Pricing: Determining the optimal price to sell a product.
Place (Distribution): Part of the marketing mix focused on getting products from producers to consumers.
Promotion: Aspect of the marketing mix emphasizing effective techniques for communicating information about products.

Target Marketing and Market Segmentation

Target Market: A group of people with similar wants and needs who can be expected to show interest in the same products.
Market Segmentation: The process of dividing a market into categories of customer types, or "segments."

Identifying Market Segments (Variables)

Geographic Variables: Geographic units considered in developing a segmentation strategy.
Demographic Variables: Populations' characteristics influencing segmentation strategy (age, education, family life cycle, family size, income, nationality, race, religion, gender).
Geo-Demographic Variables: Combination of geographic and demographic traits used in segmentation strategies.
Psychographic Variables: Consumer characteristics such as (lifestyles, opinions, interests, and attitudes).

Understanding Consumer Behavior

Consumer Behavior: The study of the decision process by which people buy and consume products.
Influences on Consumer Behavior:
- Psychological: Motivations, perceptions, ability to learn, and attitudes.
- Personal: Lifestyle, personality, and economic status.
- Social: Family, opinion leaders, reference groups (friends, coworkers, professional associates).
- Cultural: Culture, subculture, and social class influences.
Stages in the Consumer Buying Process: Problem/Need recognition; Information Seeking; Evaluation of Alternatives; Purchase Decision; Postpurchase Evaluation.

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Explore the essential concepts of target marketing and market segmentation presented in Chapter 10. This quiz will test your understanding of how organizations create and deliver value to customers, as well as the benefits of effective marketing strategies. Enhance your marketing knowledge and refine your skills in customer relationship management.