Chapter 7

A colleague wants to evaluate the attractiveness of a particular market segment. Which of the following would be good advice for your​ colleague? A. Carefully consider the degree of competition and ease of entry into the segment. B. A segment is attractive if there are substitute products available. C. Fast growing segments are always attractive. D. If a segment is larger than others it should always be targeted. E. If there are powerful buyers in the segment it will drive prices up.

A. Carefully consider the degree of competition and ease of entry into the segment.

Which of the following statements regarding positioning is​ correct? A. Positions must adapt over time to meet changing consumer needs. B. Once​ established, a strong position is never lost. C. Once a positioning strategy is​ identified, it is typically very easy to implement. D. Abruptly changing a position is an effective strategy when consumer needs change. E. Establishing a position usually takes a very short amount of time.

A. Positions must adapt over time to meet changing consumer needs.

What is​ positioning?

Arranging for a market offering to occupy a​ clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Which base of segmentation divides buyers into segments based on their​ knowledge, attitudes,​ uses, or responses to a​ product?

Behavioral

Which of the following statements regarding demographic segmentation is​ correct? A. Demographic segmentation divides a market based on​ age, personality, and benefits sought. B. Demographic variables are difficult to measure. C. Consumer​ needs, wants, and usage rates vary closely with demographic variables. D. Demographics segmentation uses lifestyle as the primary measure for segmentation. E. Demographics are rarely used anymore for market segmentation.

C. Consumer​ needs, wants, and usage rates vary closely with demographic variables.

There is a growing segment of people who want food that tastes good and is also good for them. This​ healthy-living segment represents which segmentation​ base?

Lifestyle

What are the three broad targeting strategies used by​ marketers?

Mass​ marketing, differentiated​ marketing, and micromarketing

__________ segmentation divides buyers into different segments based on lifestyle or personality characteristics.

Psychographic

Amazon and GEICO set themselves apart with their​ smooth-functioning direct delivery strategy referred to as​ __________ differentiation.

channel

If men and women respond similarly to the same marketing​ mix, they do not constitute​ distinct, identifiable segments. Gender would not be an effective base for segmentation in this example because the segments are not​ __________.

differentiable

The process of evaluating each market​ segment's attractiveness and selecting one or more market segments to enter is called​ __________.

market targeting

The step in designing a customer valuedash-driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market​ __________.

segmentation

Market​ __________ evaluates each market​ segment's attractiveness and selects one or more segments to serve.

targeting

Using​ a(n) __________ marketing​ strategy, a firm might decide to ignore market segment differences.

undifferentiated

The full mix of benefits on which a brand is differentiated and positioned is called​ a(n) __________.

value proposition