Key Point 1: Moving Away from Mass Marketing
- Distinguish between segmenting and targeting.
- List and describe the steps in the segmentation process.
- Explain why there has been a move away from mass marketing and toward segmented marketing.
- What is a market niche?
- What is one-to-one marketing? How is it different from mass marketing?
- Define self-selection. Why is self-selection considered to be the technique that locates the most interested and most responsive target audience?
- Find an advertisement for a product that you think is marketed to a niche. (Hint: Look in special-interest magazines.) Explain the characteristics of those who make up the niche, and analyze how the message is designed to speak their interests.
- Why should companies start with current customers when developing a segmentation and targeting strategy?
- What is the difference between buyers and users?
- What is profitability segmentation?
- What does RFM stand for? How are these factors used to ensure customer profitability?
- What are the five types of customer segmentation discussed in this chapter? Give an example of each.
- Distinguish between demographics and psychographics, and explain the role of each in segmentation.
- Explain how a company can develop segmentation strategies based on a knowledge of relationship factors.
- Working in teams, consult the diversity wheel (Figure 7-4). For each section of the middle and outer circles, write a specific insight about yourself and about the other person. When you have completed the list, identify all the points of similarity and all the points of difference.
- How does business-to-business segmenting and targeting differ from consumer segmenting and targeting? How are they similar?
- Analyze the contents of your closet or medicine cabinet. Find one brand that you think was targeted to you. Explain why and how that brand's targeting works in general, and tell how it speaks to you personally with its brand messages.
- Explore the ethics of targeting children who watch Saturday-morning cartoon programs. Suppose you were working on the advertising for a sugar-laden cereal, can you think of any socially responsible way to advertise it on Saturday-morning cartoon shows? What would be your personal opinion about this assignment?