Chapter 3 - Developing Lists and Discovering Markets

Question 1

What are the Lists Viewed as Market Segment ?

Answer 1

• Lists identify prospects & current customers who are likely to respond to an offer
• Different types of lists: mailing, telephone, email, magazine, newspaper
• Lists are a perishable commodity

Question 2

What are three types of lists ?

Answer 2

• House Lists
• Response Lists
• Compiled Lists

Question 3

What are The List Industry ?

Answer 3

• List users
• List Owners
• List Managers
• List compliers
• List brokers
• Service bureaus

Question 4

What is Evaluation of Lists ?

Answer 4

Measurement of Results

• Key Codes on promotional pieces;
• Different toll-free numbers;
• Hotline names identified & tracked

Response differences attributable to timing

Question 5

What is Market Segmentation ?

Answer 5

Market Segmentation is a marketing plan devised to attract and meet the needs of a specific submarket

Question 6

What is Product Differentiation ?

Answer 6

Product Differentiation is a strategy which attempts to make a clear distinction between products serving the same market segment.

• Is an alternative to price competition
• Can distinguish a product from that of competitors

Question 7

What is Product Posititoning ?

Answer 7

Product Positioning is a marketing strategy that enables marketers to understand how each consumer perceives a company’s product or service based on important attributes

Question 8

What are Ways to Position Products ?

Answer 8

• Product quality
• Product size
• Product color
• Distribution method
• Time of day
• Price

Question 9

What is Sementing Business Markets ?

Answer 9

• A common means of industrial market segmentation is through the Standard Industrial Classification (SIC) coding system.
• The SIC codes serve as a basis for statistical data, used by government, trade associations, and business enterprises.

Question 10

What is an acronym of NAICS ?

Answer 10

The North American Industry Classification System (NAICS) has replaced the SIC system.

The NAICS has several improvements over the SIC system

Question 11

What are the Based For Market Segmentation ?

Answer 11

Marketers use five distinct indicators for segmenting markets. These indicators are also known as “bases” for segmenting markets.

Question 12

What are the five bases for market segmentation ?

Answer 12

Geographic

Demographic

Social

Psychological

Behavioral

Question 13

What are the examples of Geographic Segmentation ?

Answer 13

• Neighborhood subdivisions, census divisions, Federal Reserve districts, states, countries, trading areas, cities, towns, census tracts, neighborhoods, and even city blocks.
• There are also numerical codes: ZIP codes, telephone area codes, computer “match” codes, territory and route numbers.
• Global Positioning System
• Geographic Information Systems

Question 14

What is Demographic Segmetation ?

Answer 14

Statistics that describe the consumer population must be

• Identifiable
• Measurable

Examples: age, gender, income, marital status, occupation, education level, etc.

Question 15

What is Social Factor Segmentation ?

Answer 15

Social factors demonstrate the influence others have on our behaviors

• Beer & Bowling
• Golf & Martinis

Question 16

What is Psychographic Segmentation ?

Answer 16

• Lifestyles
• Habits
• Attitudes
• Beliefs
• Value systems

Question 17

What is Behavioral Segmentation ?

Answer 17

• Specific types of products and services consumers have purchased
• Time the transaction took place
• Method or location of their purchases
• Method of payment they choose
• “Cookies” placed on their computers