BA 370 Chapter 9

Of the various methods for segmenting, or breaking down, the market, demographic segmentation is the one that delves into how consumers actually describe themselves.

False

The STP process is made up of strategy, targeting, and promotion.

False

When a marketer adjusts the marketing mix to give customers a clear, distinctive, desirable understanding of what the product does, the marketer is engaging in

Market positioning

________ involves defining the firm's marketing mix variables so that target customers have a clear, distinctive, desirable understanding of the firm's offerings relative to competitors' offerings.

Positioning

Giant Food Stores in suburban Washington, DC, adjusts its ethnic food aisle offerings based on the ethnic groups living near each store. Giant Foods is using geodemographic segmentation.

True

Perceptual maps include positions of current brands as well as ideal points where a consumer segment would want a product to be.

True

Positioning strategies generally focus either on how the product benefits the consumer or on how it is better than competitors' products.

True

When deciding how to promote his new medical oncology center, Dr. Smith decided that he did not need to throw a large grand opening reception. Instead, he promoted the center to the internal medicine doctors in the area, who were the doctors most likely to refer patients to the center. Dr. Smith was engaged in a concentrated targeting strategy.

True

________ compares the price of a product to its benefits.

Value

The first step in the segmentation process is to

articulate the vision or objectives of the company's marketing strategy clearly.

Boho Clothing an online trendy women's clothing site, targets college-educated women between 25 and 40 years old with average household income of $70,000 or more. This is a form of ________ segmentation.

demographic

Kellogg's marketing communications about its Special K cereal appeal almost exclusively to women. This is an example of ________ segmentation.

demographic

In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into "Butterball" turkeys. In doing so, the company

differentiated its product.

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Adidas uses the different brands to pursue a(n) ________ strategy.

differentiated targeting

The first step in the STP process is to

establish the overall strategy or objectives.

Darlene has identified four potential market segments for her Don't Do It Yourself handyman service. The next step is to

evaluate the attractiveness of each segment.

Let's Dish is a meal-preparation service operating in three states. Customers visit a Let's Dish store to select and partially prepare their meals, which are then packaged for the freezer. At home, the customer can pull a meal out of the freezer and warm it in the oven or microwave. If Let's Dish wanted to expand into new areas of the United States, what segmentation method would probably be most useful in choosing new locations?

geodemographic segmentation

Television advertising has recently expanded to include "mini-ads," which are short ads lasting five to ten seconds. These ads are most useful in advertising to men, since men are more likely than women to channel surf during commercial breaks. Given this fact, this type of advertising will be more useful to marketers engaged in ________ segmentation.

is likely more costly than an undifferentiated strategy.

Automobile manufacturers could build cars specially designed for very short people (for example, under five feet), but it is likely that this segment

is not substantial.

Firms use a differentiated targeting strategy because

it helps obtain a bigger share of the market.

An engaged couple is meeting with a bakery to order their wedding cake. They want a cake that will represent their individual styles and tastes. Bakeries that cater to such unique requests are pursuing what kind of targeting strategy?

micromarketing

Adidas Group owns Reebok and Rockport—both of which offer different types of shoes. Having a variety of brands allows Adidas to use a differentiated targeting strategy to

obtain a bigger share of the shoe market.

Godiva Chocolates produces specially decorated boxes of candies for Valentine's Day, Easter, and Christmas. This is an example of ________ segmentation.

occasion

Which of the following segmentation methods is being used when M&M's offers special wedding-themed packaging for customized M&M's (imprinted with the names of the bride and groom)?

occasion segmentation

Whenever Liam calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local businessperson and has been in business over 20 years. Liam is ________ his business relative to his competition.

positioningCorrect

Venicia is assessing market growth, market competitiveness, and market access for each segment she has identified. Venicia is assessing the ________ of each potential market segment.

profitability

Marketers have found that ________ segmentation is often more useful for predicting consumer behavior than ________ segmentation.

psychographic; demographic

Education marketers know that the primary motivations of most nontraditional college students are self-respect and self-fulfillment, so they craft their marketing message to emphasize the benefits these consumers are looking for in a college education. What type of segmentation method was used to segment this market?

psychographics

College students can be a less ________ market segment because students' media habits are quite diverse, and firms might have to use a wide variety of media to attract this segment.

reachable

The manager of Oceanside Yacht Club wanted members of the very upscale club to use the bar and dining facilities more frequently. He offered a two-for-one "happy hour" special, but few members showed up. The manager did not have a grasp of what would make his target market

responsive.

As it relates to positioning, a _________ displays the position of products or brands in the consumer's mind.

segmentation map

Beverage companies often use television commercials with images of young people laughing and enjoying themselves on a beach or in a club. These images are designed to appeal to consumers' ________, suggesting "be like me."

self-concepts

To develop psychographic segments, the marketer must understand consumers'

self-values, self-concept, and lifestyles.

Overriding desires that drive how we live our lives are called

self-values.

Suzanna is concerned that one of the potential market segments she has identified for her mobile veterinary service is too small and has too little income to have sufficient buying power. Suzanna is concerned with whether the segment is

substantial

Almost all U.S. political candidates use some combination of red, white, and blue in their campaign posters. They are trying to position themselves in voters' minds using

symbols

One of the reasons marketers use loyalty segmentation is

the high cost of obtaining new customers.

After assessing the market growth potential in Brazil for his company's baby products, Jaime wanted to evaluate market competitiveness. To do this, Jaime would consider

the number of competitors, entry barriers, and product substitutes.

For products like pencils, which provide the same benefit for all consumers, marketers should probably use a(n) ________ strategy.

undifferentiated targeting

Frederico was assigned to help create a positioning strategy for his employer's products based on product attributes. He should consider

what the target market would consider the most important features.

While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do not help marketers determine

what their customers need.