Marketing Chapter 7

In the context of behavioral segmentation, who among the following is a potential user?

Anita, who recently had a baby

Which of the following is true about behavioral segmentation on the basis of the loyalty variable?

By looking at customers who are shifting away from its brand, a company can learn about its marketing weaknesses and take actions to correct them.

Which of the following is true about the concentrated marketing strategy?

Companies that rely on a few segments for all of their business will suffer if a segment turns sour.

Which of the following is a drawback of local marketing?

Local marketing increases manufacturing costs by reducing the economies of scale.

Which of the following is true about multivariable segmentation systems?

Multiple segmentation bases help identify smaller, better-defined target groups.

Harvey's Bookstore is a popular online bookstore that has differentiated itself through smooth-functioning delivery networks. This is an example of ________.

channel differentiation

differentiation

differentiating the market offering to create superior customer value

value proposition

full positioning of a brand - the full mix of benefits on which it is positioned

Using ________, marketers form segments of consumers who have similar needs and buying behaviors even though they are located in different countries.

intermarket segmentation

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes college students, as an untapped group of potential customers for their new line of products, they were engaging in ________.

market targeting

Through ________ differentiation, brands can be differentiated on features, performance, or style and design.

product

________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.

psychographic

Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.

psychographic segmentation

target market

set of buyers sharing common needs or characteristics that the company decides to serve

positioning statement

statement that summarizes company or brand positioning using this form

A(n) ________ consists of a set of buyers who share common needs or characteristics that the company decides to serve.

target market

________ refers to a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

undifferentiated marketing

Which of the following refers to a cultural factor in the context of segmenting international markets?

values and attitudes

________ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

demographic

Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?

demographic segmentation

________ segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.

differentiable

"Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods." This is an example of ________.

geographic segmentation

Pacific Fisheries divides its customers into different regional units, such as Asia, Australia, and the Americas. This is an example of ________.

geographic segmentation

________ assumes that nations close to one another will have many common traits and behaviors.

geographic segmentation

________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods.

geographic segmentation

When a company customizes its merchandise store by store to meet shopper needs, it is practicing ________.

local marketing

_______ tailors brands and promotions to the needs and wants of regional customer groups, such as cities, neighborhoods, and even specific stores.

local marketing

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

market segmentation

________ segmentation refers to dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

occasion

Stores such as Walmart, Best Buy, PetSmart, David's Bridal, and DSW Shoes use ________ positioning.

same for less

With a(n) ________ marketing strategy, a firm goes after a large share of one or a few smaller niches.

concentrated

Which of the following is LEAST relevant when a firm evaluates different market segments?

core competencies of competitors

Consumers who show their allegiance to brands, stores, or companies help marketers to segment consumers by their ________.

degree of loyalty

The winning value proposition would be to offer ________.

more for less

undifferentiated marketing

a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer

Which of the following states the product's membership in a category and then shows its point of difference from other members of the category?

a positioning statement

Market segments that can be effectively reached and served are ________.

accessible

When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________.

actionable

competitive advantage

an advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices

positioning

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

________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.

behavioral

________ requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it.

benefit segmentation

To the extent that a company can differentiate and position itself as providing superior customer value, it gains ________.

competitive advantage

market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each is known as ________.

differentiated marketing

________ involves actually distinguishing the firm's market offering to create superior customer value.

differentiation

________ is more suited for products that vary in design.

differnentiated marekting

age and life-cycle segmentation

dividing a market into different age and life-cycle groups

geographic segmentation

dividing a market into different geographical units such as nations, states, regions, countries, cities or even neighborhoods

income segmentation

dividing a market into different income segments

gender segmentation

dividing a market into different segments based on gender

psychographic segmentation

dividing a market into different segments based on social class lifestyle or personality characteristics

behavioral segmentation

dividing a market into segments based on consumer knowledge, attitudes, uses or responses to a product

occasion segmentation

dividing the market into segments according to occasions when buyers get the idea to buy actually make their purchase, or use the purchased item

benefit segmentation

dividing the market into segments according to the different benefits that consumers seek from the product

demographic segmentation

dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity adn generation

market segmentation

diving a market into smaller segments of buyers with distinct needs characteristics or behaviors that might require separate marketing strategies or mixes

Double Drill Inc. segments its foreign markets by per capita income. This firm segments the international markets based on ________.

economic factors

market targeting

evaluating each market segments attractiveness and selecting one or more segments to enter

intermarket segmentation

forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries

________ segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

gender

Even when competing offers look the same, buyers may perceive a difference based on ________ differentiation.

image

Gilron Holidays runs a premium membership club which caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts on select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach.

income

A segment is less attractive if ________.

it already contains many strong and aggressive competitors

________ positioning involves meeting consumers' lower performance or quality requirements at a much lower price.

less for much less

________ consists of evaluating each market segment's attractiveness and selecting one or more market segments to enter.

market targeting

differentiated marketing

market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each

concentrated marketing

market-coverage strategy in which a firm goes after a large share of one or a few segments or niches

________ is the process by which firms interact one-to-one with masses of customers to design products and services tailor-made to individual needs.

mass customization

When the size, purchasing power, and profiles of a market segment can be calculated, the market is ________.

measurable

________ is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.

micromarketing

________ positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs.

more for more

Which of the following marketing strategies is most suitable for smaller firms with limited resources?

niche marketing

Which of the following is NOT a common variable used by both consumer and business marketers while segmenting markets?

operating characteristics

________ shows consumer perceptions of a company's brands versus competing products on important buying dimensions.

perceptual positioning maps

Marketers often segment international markets according to the type and stability of government. In such instances, they segment markets based on ________.

political

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

positioning

"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) ________.

positioning strategy

A ________ refers to the way a product is defined by consumers on important attributes—the place the product occupies in consumers' minds relative to competing products.

product position

Different soft drinks target different personalities. This is an example of ________

psychographic

A company selling child care products ran a television ad depicting women as being primarily responsible for child care. Many women viewers considered this regressive alleging that the ad failed to recognize the much more diversified role of women in today's world. This is an example of ________.

stereotyping

A market segment that is large or profitable enough to serve is ________.

substantial

local marketing

tailoring brands and a marketing to the needs and wants of local customer segments - cities, neighborhoods and specific stores

individual marketing

tailoring products and marketing programs to the needs and preferences of individual customers

micromarketing

tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing

Which of the following is a disadvantage of using a differentiated marketing strategy?

the costs of doing business increase

product position

the way a product is defined by consumers on important attributes - the place the product occupies in consumers' minds relative to competing products

________ marketing is more suited for uniform products, such as grapefruit or steel.

undifferentiated

In the context of behavioral segmentation, markets segmented by ________ can be categorized into light, medium, and heavy product users.

usage rate

Which of the following refers to a behavioral segmentation variable that involves segmenting markets into nonusers, ex-users, potential users, first-time users, and regular users of a product?

user status

________ refers to how a company will create differentiated value for targeted segments and what positions it wants to occupy in those segments.

value positioning

The full mix of benefits on which a brand is differentiated and positioned is known as the brand's ________.

value proposition