Chapter 9
The light beer commercial with the slogan "less filling, tastes great" was based on ________ segmentation.
benefit
"Why create a perceptual map?" asked Don. Andrea, the senior marketing manager, gave him four reasons. Which of the following are valid reasons?
"We can easily show where we are positioned and how large the market is."
Justin is looking to expand his pet grooming business and wants to evaluate the profitability of a potential new market. The area he is looking at has 2,000 homes and Justin estimates that 20 percent of them would be likely to use his service. He charges $45 per grooming and on average customers groom their pets six times a year. Justin estimates his variable costs to expand his business will be $10 per grooming and his fixed costs are $10,000. How much profit would Justin make on this new segment?
$72,240
________ segmentation is the segmentation method most directly related to satisfying consumers' needs and wants.
Benefit
A complex product that is best described in writing will be difficult to explain to consumers who are unable to read. For this reason, a segment in which many consumers could not read would be considered unattractive because the consumers would not be responsive.
False
NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of its fans were female. This is an example of psychographic segmentation.
False
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. Group starts
False
The Value and Lifestyle Survey (VALS) conducted by Strategic Business Insights (SBI) is a widely used tool for geographic segmentation.
False
What is the best situation in the Circles for a Successful Value Proposition framework?
The firm's offering overlaps with customer needs/wants but not with competitors' offerings.
For products like sugar or pepper, marketers should probably use an undifferentiated targeting strategy. Group starts
True
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. Group starts
True
It would be logical for bathing suit marketers to use geographic 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
For each target market, Showall Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting its marketing mix variables in order to give customers
a clear, distinctive, and desirable understanding of their products relative to competing products.
Segmentation, targeting, and positioning
are part of a firm's marketing strategy.
Thomas wants to position his firm against his competitors. In doing so he should
avoid looking too much like the competitor so as not to confuse the target segment.
The perceptions of ________ are being measured in a perceptual map.
consumers
Beer marketers know that high-school-educated, working-class males from the ages of 25 to 40 make an attractive market for their products. This is a ________ segment of the beer market.
demographic
Kellogg's marketing communications about its Special K cereal appeal almost exclusively to women. This is an example of ________ segmentation.
demographic
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.
demographic
Marketers often employ a combination of segmentation methods, using ________ to identify and target their customers, and ________ to design products and messages to appeal to them.
demographics and geography; lifestyle or benefit segmentation
Psychographics is the segmentation method that delves into how consumers
describe themselves.
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
After assessing the market growth potential and market competitiveness in Brazil for his company's baby products, Jaime wanted to evaluate market access. To do this, Jaime would consider
ease of accessing or developing distribution channels and brand familiarity.
The first step in the STP process is to
establish the overall strategy or objectives.
The Tapestry™ Segmentation system divides and sorts small geographic areas into categories using 65 or more demographic and lifestyle characteristics. This market research tool is an example of ________ segmentation.
geodemographic
The phrase "birds of a feather flock together" captures the idea of ________ segmentation.
geodemographic
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
Canton's Canoes initially identified active retirees living in the retirement community nearby as one of its target markets. Canton's then tailored their service and marketing message to the interests and schedules of that audience. Canton's initially used ________ segmentation and then used ________ segmentation.
geodemographic; lifestyle
If values provide an end goal, and self-concept is the way one sees oneself in the context of that goal, lifestyles are
how we live our lives to achieve our goals.
Within a perceptual map, a(n) ________ represents where a particular market segment's desired product would lie.
ideal point
Sanjay is in the new marketing department of a midsized accessories company. He is working on the first marketing plan the firm has ever used. He has defined the mission and objectives, and he just finished a situation analysis for the firm. The next step is to
identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis.
Demographic segmentation is segmentation based on
income.
Vittorio is considering psychographics as a way to segment the market for his small travel agency. This approach to segmentation offers him an advantage because
it is based on underlying motivations of target customers.
When Mario complained to his bank about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all tellers that Mario was a valued customer and to provide whatever service he requests. The branch management included Mario in its __________ segmentation.
loyalty
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.
Edmund has found that both commercial and residential real estate buyers respond positively to his marketing communication message. Edmund has identified ________ that respond similarly to his marketing efforts.
market segments
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
When Derek's Hardware, a New Jersey-based discount hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in
misguided geographic segmentation.
Godiva Chocolates produces specially decorated boxes of candies for Valentine's Day, Easter, and Christmas. This is an example of ________ segmentation.
occasion
As it relates to positioning, a _________ displays the position of products or brands in the consumer's mind.
perceptual map
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.
positioning
We often see advertisements touting a product as being made with natural ingredients or being long-lasting. Marketers using these types of promotions are positioning their products based primarily on
product attributes
Baby Boomers represent a huge demographic segment for travel marketers. Baby Boomers are also heavily motivated by self-fulfillment, which creates the possibility of ________ segmentation.
psychographic
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
With access to the Internet nearly universal in the United States, many potential market segments have become more
reachable.
Darlene has identified four potential market segments for her Don't Do It Yourself handyman service. She will now evaluate whether or not each segment is attractive relative to all of the following except
realistic.
When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be ________ to the company's offerings.
responsive
For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's offering. In other words, the market segment must be
responsive.
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.
When evaluating the attractiveness of the segment, if a segment is expected to react positively to the firm's offering, we say that the segment is
responsive.
Geodemographic segmentation can be particularly useful for ________, because customers typically patronize stores close to their neighborhood.
retailers
Which of the following would be used in calculating the profitability of a segment?
segment size
Gerardo wants to develop an Internet-based auction business and is working through the STP process. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Gerardo now has to
select a target market.
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.
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.
One of the reasons marketers use loyalty segmentation is
the high cost of obtaining new customers.
Fiona is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will specifically help her in this analysis?
the number of children needing day care in the immediate area
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.
Whenever the president of the local public university promotes the institution, he emphasizes the university's price (much lower than neighboring private colleges) and high quality. He is positioning the institution based primarily on
the value proposition.
For products like pencils, which provide the same benefit for all consumers, marketers should probably use a(n) ________ strategy.
undifferentiated targeting
