Marketing - Chapter 7

4 Geographic Segmentations

- nations - regions - states - neighborhoods

Application

Apple

The text details how Five Guys identified that their target market values taste, freshness, and quality and are willing to pay a premium price for a "gourmet" hamburger experience. How did market segmentation help Five Guys in this example?

It helped Five Guys define the needs and wants of their customer.

Kelly has discovered that most of the customers at her ice cream shop are young mothers with pre-school age children. These demographic characteristics are an example of a segmentation _______.

base

Positioning statement

consists of a succinct description of the core target market to which a product is directed and a compelling picture of how the firms wants that core market to view the product

Positioning

consists of the activities a firm undertakes to create a certain perception of its product in the eyes of the target market

B2B geographic variables are similar to consumer variables. They include things like:

country, region, state, and climate

When relying on psychographic segmentation the first thing a marketer would do is _____.

divide the market into groups based on the reason for the purchase

VALS identifies 3 primary motivations:

ideals, achievement, and self-expression

Niche marketing

involves targeting a large share of a small market segment

AirTran promotes the idea that consumers can view their schedules and ticketing services on the airline's Facebook page. In doing so, AirTran is utilizing the ______ ________

social media

Undifferentiated targeting

strategy approaches the marketplace as once large segment.

As a targeting strategy, ______ targeting works best with uniform products, like apples or bread because a company can develop a single marketing mix that satisfies all customers.

undifferentiated

When a marketer questions whether a market segment is actionable, he or she is referring to _________.

whether or not a strategy can be created to attract the market segment to the firm's products

_________ _______________refers to the process of dividing a larger market into smaller groups based on meaningfully shared characteristics.

market segmentation

When marketers segment based on ______, they divide a market into groups according to the reason a consumer made a purchase.

psycographic

The snack food industry has introduced a wide variety of products in recent years in response to health-conscious consumers looking for a healthier snack option. Consumers can now find baked potato chips and low-fat crackers on the grocery store shelves. The snack food industry's response to changes in the marketplace represents the idea of _______.

repositioning

Which of the following are important considerations a company should take into account during the targeting process? (Check all that apply.)

Strategic fit Growth potential Level of competition

Which three of the following are basic strategies for targeting markets?

Undifferentiated targeting Niche marketing Differentiated targeting

When deciding how to position a product, the first step a marketer would take is to _______.

analyze the competitors position

4 Demographic Segmentations

- age - gender - income - family size/marital status

4 Behavioral Segmentations

- loyalty - price sensitivity - occasions - usage rate

3 Psychographic Segmentations

- psychological traits - motivation - consumer attitudes

Steps in market positioning

1. analyze competitors positions 2. clearly define your competitive advantage 3. evaluate feedback

A number of positioning strategies are available to highlight a firm's competitive advantage:

1. price-quality relationship 2. attributes 3. application

Which of the following accurately describe a positioning statement? (Check all that apply.)

A succinct description of the core target market A compelling picture of how a company wants the market to view the product

Which of the following concepts should a company take into account in order to create effective market segmentation? (Check all that apply.)

Actionable Substantial Differentiable Measurable Accessible

targeting

After completing an effective market segmentation, a company must evaluate each market segment to determine which one has the most potential to maximize sales.

The main ______ ____________ variables include industry size, size of the organization, and ownership structure

B2B demographic

Which of the following describes how B2B segmentation bases compare to segmentation bases targeted to consumers?

B2B segmentation uses some of the same bases, but they apply differently.

Which of the following are included among the four broad bases of market segmentation? (Check all that apply.)

Demographic Geographic Psychographic Behavioral

Which of the following segmentation bases do B2B firms generally use? (Check all that apply.)

Geographic Demographic Behavioral

VALS Network

Innovators, thinkers, believers, achievers, strivers, experiencers, makers, and survivors

In which of the following ways does market segmentation help marketers navigate the needs and wants of consumers? (Check all that apply.)

It helps a firm decide how to allocate marketing resources to maximize profit. It helps define the needs and wants of consumers who are most interested in buying the product. It helps a company design specific marketing strategies for the characteristics of that segment.

Which of the following are important considerations a company should take into account during the targeting process? (Check all that apply.)

Level of competition Growth potential Strategic fit

Al has run a pizza shop for ten years and decided six months ago to change his marketing tactic. Instead of marketing the same to all customers, Al has targeted those customers who like deep-dish pizza and those who like thin pizza. This is an example of _______.

Market segmentation

Perceptual map

creates a visual picture of product location in consumers' minds

Price-quality relationship

customers are often attracted to firms that offer them the same product quality as other stores, but at a more affordable price.

The 3 types of B2B segmentation bases are:

demographic, geographic, and behavioral

When a company needs to make modifications to a product in order to satisfy the cultural demands of international customers, it is in the process of _______ targeting.

differentiated

Regional segmentation

divides consumers into groups whose needs and wants extend across the region or several countries.

Factors in selecting target markets

growth potential, level of competition, and strategic fit

Global segmentation

identifies a group of consumers with common needs and wants that spans the entire globe.

Unique segmentation

identifies a group of consumers with similar needs and wants only within one country

Repositioning

involves reestablishing a product's position in response to changes in the marketplace

During the targeting process, a firm should take into account three important factors: growth potential, strategic fit and _______.

level of competition

Serena's company sells shoes and boots to many international markets. In certain countries, the company is faced with charging higher prices for its products because the country places a higher tariff on imports. Based on this, Serena's company would want to _______ the marketing mix within this segment.

localize

Repositioning the competition

make your competition loom negative without changing anything about yourself

Differentiated targeting

occurs when an organization simultaneously pursues several different market segments, usually with a different customized strategy for each

Attributes

often a product will have multiple attributes that create a unique position in the market. successful attributes might include leadership, heritage, product manufacturing process, or the coolness factor

Market ________ refers to the activities a company undertakes to create a certain perception of its product in the eyes of the target market.

positioning

Marketing mix elements

price, product, promotion, place

B2B behavioral segmentation may be the most beneficial, it enables them to segment based on:

purchasing patterns, supplier requirements, and technological orientation

Repositioning and the marketing mix

repositioning typically involves changing one or more of the marketing-mix elements, often product or promotion

Evaluate feedback

the third step in market positioning is to constantly evaluate consumer feedback

VALS measures _____ dimensions. These dimensions are ________ and ______

two. primary motivation and resources

Target Marketing Strategies:

undifferentiated targeting, differentiated targeting, and niche marketing