Marketing Exam 2 Study Guide:
Chapter 7: Sharpen the Focus
1. Identify the steps in the target marketing process: Target marketing strategy:
select and enter a market.
Market fragmentation: The creation of many consumer groups due to a
diversity of distinct needs and wants in modern society.
Target Marketing Strategy: Dividing the total market into different segments
on the basis of customer characteristics, selecting one or more segments, and
developing products to meet the needs of those specific segments.
2. Understand the need for market segmentation and the approaches available to do
it. Step 1: Segmentation
Segmentation: the process of dividing a larger market into smaller pieces
based on one or more meaningfully shared characteristics.
Segmentation Variables: Dimensions that divide the total market into fairly
homogeneous groups, each with different needs and preferences.
Segment Consumer Markets:
Generation Y: The group of consumers born between 1979 and 1994.
ii. Segment by Demographics: Age
Demographics: Statistics that measure observable aspects of a
population, including size, age, gender, ethnic, group, income,
education, occupation, and family structure.
Generational Marketing: Marketing to members of a generation, who
tend to share the same outlook and priorities.
Generation X: The group of consumers born between 1965 and 1978.
Baby Boomers: The Segment of people born between 1946 and 1964.
iii. Segment by Demographics: Gender
Metrosexual: A straight, urban male who is keenly interested in
fashion, home design, gourmet cooking, and personal care.
iv. Segment by Demographics: Family Life Cycle:
v. Segment by Demographics: Income and Social Class
vi. Segment by Demographics: Ethnicity
Cultural Diversity: A management Practice that actively seeks to
include people of different sexes, races, ethnic groups, and religions in
an organization’s employees, customers, supplies, and distribution
vii.Segment by Demographics: Place of Residence
Geodemography: A segmentation technique that combines geography
Geocoding: Customizing Web advertising so that people who log on in
different places will see ad barriers for local businesses.
Segment by Psychographics:
The use of physchological, sociological, and anthropological factors to
contruct market segments.
VALS2 tm (Values and Lifestyles): A psychographic system that
divides the entire U.S. Population into eight segments.