Marketing Chapter 9 concepts
Which of the following companies would benefit the most from using a concentrated targeting strategy?
A new, relatively unknown food cart with two employees and a minimal budget
How does developing descriptions of each market segment help firms?
By identifying differences across market segments By identifying similarities within market segments
Because consumers' tastes shift, markets are not Blank______, and competitors must therefore Blank______ those shifts.
stagnant; react to
Some Blank______ such as the Nike swoosh, are so strong and well known that they help position the brand.
symbols
If a firm positions its product too closely to the competition, it risks Blank______.
trademark infringement lawsuits
Symbols are generally registered Blank______ that are legally protected by the companies that create them.
trademarks
The Blank______ communicates the customer benefits to be received from a product or service—in other words, why a customer should purchase the product.
value proposition
Place the steps in the segmentation, targeting, and positioning process in their conventional order, with the first step at the top.
1. Establish strategy or objectives 2. Use segmentation methods 3. Evaluate segment attractiveness 4. select target market 5. Identify and develop positioning strategy
Why might a start-up company benefit from selecting a concentrated targeting strategy?
A concentrated strategy is a more efficient use of limited resources.
How do firms commonly position themselves in the marketplace when using a competition positioning method?
Against an entire service classification Against an entire product classification Against a specific competitor
Which situation constitutes a competitor's value proposition?
Customer needs are met by the competitor but not by the focal firm.
segmentation variables include age, income, and gender.
Demographic,
What is the first step marketers take in deriving a perceptual map?
Determining consumers' perceptions of the product in relation to competitors' products
Which targeting strategy is likely to be most costly for a firm?
Differentiated
What options does a firm have if customers express little need or desire for the firm's value proposition?
Educating customers about the benefits of its product or service Removing unappealing benefits from the product
When creating a perceptual map, what should a firm do after it understands how customers view its brand relative to competitors'?
Identify competitors' positions
What does the value proposition do for marketers?
It communicates the customer benefits provided by a product or service.
______ is the process of creating a clear, distinctive, and desirable understanding of the product in the consumer's mind relative to competing products.
Market positioning
Under which market situations would a firm be most likely to sustain a unique value proposition over the long term?
Monopoly Monopolistic competition
A clothing company that offers a special line of maternity clothing for women to wear specifically during pregnancy engages in which form of segmentation?
Occasion
What is used to display, in two or more dimensions, the positions of products or brands in the consumer's mind?
Perceptual map
Which aspect of the STP process involves adjusting the marketing mix to give consumers a clear picture of what a product does in comparison to competing products?
Positioning
Differentiated
Proctor and Gamble offers Pantene, Head and Shoulders, Aussie, and Wella shampoos
The maker of a line of protein shakes knows that its target market places a high value on the use of natural products, so the company's positioning strategy focuses on its use of organic, locally sourced ingredients. Which positioning method is the company using?
Salient attributes
Which of the main value components are contained in the value proposition "SportsAde offers serious athletes a great-tasting way to stay hydrated during exercise"?
Target market Benefits Brand
Which of the following are key elements of a value proposition statement?
Target market Unique differences/benefits Product name/brand
Which step of the STP process involves evaluating the attractiveness of various market segments and choosing the segments to pursue?
Targeting
What are the three components of the STP process?
Targeting Segmentation Positioning
Which of the following is a segmentation tool that classifies U.S. residential neighborhoods into segments based on the lifestyles and demographics of the people who live there?
The Tapestry Segmentation system
Which of the following is an example of occasion segmentation for a chocolate maker?
The company offers some of its chocolates in heart-shaped boxes for Valentine's Day. The company sells its chocolates in simple plastic bags, but also offers it in attractive boxes for gift giving.
Why are psychographic market segments considered "self-selecting" groups?
They are grouped together based on factors that they choose rather than those they cannot control.
What is the purpose of a trademark?
To protect a well-known symbol or other identifying feature from use by other companies or individuals
True or False: A firm assesses attractiveness of a target market and its own competencies using a SWOT analysis.
True
True or False: Value is a popular positioning method because the relationship between price and quality is important to consumers.
True
True or False: When a firm decides to position its brand using a perceptual map, it must also take into account competitors' positions.True
True
Firms position products based on which of the following?
Value Salient attributes Symbols
Which of the following questions might a marketer ask to determine consumers' perceptions and evaluations of a product in relation to a competitor's product?
What might make you choose one brand over another? What products do you consider satisfying alternatives? How do you use our product?
Which situation represents an important marketing opportunity for creating new products or altering existing products?
When customer needs are not completely met
Based on the Circles for a Successful Value Proposition framework, when should a firm reengineer its product to stop providing certain benefits?
When customers express little need or desire for the benefits in question
Market differences across regions, states, or neighborhoods create opportunities for Blank______.
geographic segmentation
Firms that wish to change a product's positioning should be aware that it is Blank______.
always a challenging task
Market positioning is done so that the target customers have an understanding of the product offered by the company in comparison with Blank______ products.
competing
Benefit segmentation is often effective because it is relatively easy to portray a product's or service's benefits in the firm's Blank______ strategies.
communication
Benefit segmentation is often effective because it is relatively easy to portray a product's or service's benefits in the firm's ______ strategies.
communication
Age, gender, and income are all examples of Blank______ segmentation variables.
demographic
Grouping a market by country, region (northeast, southeast), or areas within a region is known as segmentation.
demographic
Marketers sometimes take into account that as people age, their needs change. This is an example of Blank______ segmentation.
demographic
When Kellogg's introduced Special K, the marketing communications about the product were meant to primarily appeal to women. This is an example of Blank______ segmentation.
demographic
segmentation variables include age, income, and gender.
demographic
Firms using a(n) targeting strategy direct their efforts to several market segments with distinct brands and product offerings for each segment.
differentiated
Ford Motor Company owns Ford, Lincoln, Mercury, and Volvo automotive brands, each with vehicles appealing to market segments with different needs and lifestyle choices. Ford uses this variety of brands to pursue a(n) Blank______ targeting strategy.
differentiated
The component of segmentation that is determined by how we live our lives to achieve goals is called Blank______.
lifestyle
In light of the high costs associated with finding new customers who feel that a brand can meet their relevant needs and are willing to exclude competitors, today's companies are using Blank______ segmentation and investing in initiatives to retain their most profitable customers.
loyalty
When a firm adapts a product or service to meet an individual customer's wants or needs, it is undertaking an extreme targeting strategy called
micromarketing
Compared to most available targeting strategies, differentiated targeting is Blank______.
more expensive
One of the benefits of a differentiated targeting strategy is that it allows the firm to Blank______.
obtain a bigger share of the market
A well-known symbol can be used as a Blank______ tool, distinguishing the brand from its competition.
positioning
Value is a popular positioning method and is the most important consideration for consumers when they make a purchase decision based on Blank______.
price and quality
While some segmentation methods rely on external descriptions and factors to break down the market, Blank______ segmentation relies on consumers' descriptions of themselves.
psychographic
Persuasive communications and accurate product distribution are techniques used by firms to Blank______ market segments.
reach
______ is the image people ideally have of themselves.
self concept
After evaluating each market segment's attractiveness, the next step in the STP process is Blank______.
selecting a target market
Which of the following is NOT a targeting strategy?
Diffused
Which of the following steps are part of the segmentation, targeting, and positioning process?
Establish strategy or objectives Selecting target market Evaluating segment attractiveness
Because each segmentation method has its unique advantages and disadvantages, most firms often employ Blank______ methods.
multiple
Ellie's Deli offers good sandwiches and fast service to its lunchtime customers from a nearby university. It also delivers the same sandwiches packaged with side dishes as part of its catering services. This is an example of Blank______ segmentation.
occasion
McDonald's often targets families by showing families having a good time in its advertising. This appeals to a families' Blank______.
self-concept
Another term for self-concept is
self-image
John is a supporter of environmental issues. He is constantly examining the "green" credentials of the products he purchases. John's purchasing behavior is a reflection of his Blank______.
self-values
Recognizing that many people attend sporting events to meet their need for camaraderie and belonging, a minor-league baseball team promotes its season ticket packages by highlighting the sense of community among season ticket holders. In this case, the team is using psychographic segmentation based on Blank______.
self-values
Undifferentiated
A firm produces basic commodities like sugar, milk, and packaged ice.
Micromarketing
A florist designs bouquets for a bride and five attendants.
Which of the following is an example of geographic segmentation?
A ski and snowboard equipment manufacturer markets its goods in states that have snowy mountains and ski resorts.
Which of the following are marketing segmentation approaches? (Choose every correct answer.)
Psychographic Benefit Geographic
Sunrise foods has been developing a new line of meatless breakfast sandwiches. Sunrise has identified a market segment and, through the use of surveys and blind taste tests, has found that members of the segment react favorably to the new offerings. Which criterion for evaluating segment attractiveness does the segment meet?
Responsive
What analytical method does a firm typically employ to assess the target market and its own competencies?
SWOT analysis
_______ are goals for life, not just the goals one wants to accomplish in a day. They are the overriding desires that drive how a person lives his or her life.
Self-values
Which of the following are examples of self-values?
Sense of belonging Self-respect Self-fulfillment
For which of the following companies would demographic segmentation be the LEAST useful?
An athletic shoe manufacturer
Concentrated
An infomercial firm sells a gadget to better fry and flip eggs in cooking.
Suppose that Coca-Cola were to divide its market up into segments based on the amount of soda consumers drink (heavy, medium, and occasional soda drinkers). What type of segmentation does this represent?
Behavioral
______ segmentation forms market segments based on the way consumers use a product, such as more frequently or with greater loyalty.
Behavioral
What type of segmentation categorizes consumers on the basis of the outcomes they hope to derive from a product or service?
Benefit
When marketers combine segmentation methods, which approaches do they typically use to design a product or service?
Benefits Lifestyles
Whereas most men's suit brands focus on their craftsmanship and use of high-quality materials, Bluebird Suits distinguishes itself by emphasizing the durability of its products and deriding other suit makers as "delicate." Which positioning method is Bluebird using?
Competition
Why are successful brands unable to realize enduring success in meeting consumer demands?
Competitors will encroach on the firm's value proposition by copying important product or service attributes.
Which of the following statements are true concerning micromarketing? (Choose every correct answer.)
It is also known as one-to-one marketing. It involves customizing a product or service. It is considered an extreme form of segmentation
When establishing its overall segmentation strategy or objectives, what must the firm keep in mind?
Its mission and objectives Its current situation
What are the factors considered in the analysis of profitability of a market segment?
Market access Market competitiveness Market growth
Which of the following is NOT a market segmentation approach?
Product
Which of the following are factors that can help a marketer determine the profitability of a segment over the lifetime of one of its typical customers?
The cost of replacing lost customers Customer defection rate Probable length of customer loyalty
What marketing opportunities does a firm have when customer needs are unmet?
The opportunity to create new products or services The opportunity to augment existing products or services
A dairy producer has determined that almost all grocery consumers are potential customers for its products. Which type of marketing strategy should the company use?
Undifferentiated
Southwest Airlines promotes its Rapid Rewards program to reward frequent flyers with benefits like free travel vouchers, priority seating, and premium beverages. This is an example of Blank______ segmentation.
behavioral
Psychographics is a segmentation method that delves into how consumers actually Blank______ themselves.
describe
Psychographics is a segmentation method that delves into how consumers actually ______ themselves.
describe
General Mills manufactures a wide variety of brands of breakfast cereals because it targets many consumer markets. Although it is likely to be more costly for the firm, a(n) Blank______ marketing strategy would help lower the company's overall level of risk.
differentiated
It is important to ensure that segments are distinct from one another because too much overlap between segments means that Blank______.
distinct marketing strategies are not necessary to meet segment members' needs
Market positioning involves a process of defining the marketing mix variables so that the target customers Blank______.
have a clear, distinctive understanding of the product
A point where a market segment's desired product would be located on a perceptual map is called a(n) _______ point.
ideal
When a firm positions a product based on its salient attributes, it highlights features that are most Blank______ to the target market.
important
Psychographics study how people Blank______ their time and the underlying psychological factors that determine their choices.
occupy
Sometimes, firms find it difficult to use demographics in their segmentation strategies. This is because in some cases demographics Blank______.
predict consumer wants and needs poorly
When assessing the attractiveness of a segment, marketing managers need to calculate the Blank______ of each segment, both current and future.
profitability
Loyal customers buy a substantial amount from the firm. These loyal customers are the most Blank______ in the long term to the firm.
profitable
Individuals in different segments should have ______ within the segment and ______ across the segments.
similarities; differences
A firm using a concentrated segmentation strategy selects a(n) Blank______ target market and focuses all its energies on providing a product to fit that market's needs.
single
If a market is too Blank______ or if its buying power is Blank______ it won't generate sufficient profits or be able to support the marketing mix activities.
small; insignificant
Once a firm is able to identify the market and is able to design products or services to meet its needs, the next step is to determine if the market size is
substantial
When looking at a perceptual map containing the market's ideal points and size, firms should consider positioning themselves close to Blank______.
the largest ideal point
In the Circles for a Successful Value Proposition, the best situation for a firm is if ______.
the product or service overlaps with customer needs and wants but not with competitors' offerings
Firms position their products based on methods such as Blank______.
the value proposition, salient attributes, symbols, and competition
When a company sells commodities such as salt, sugar, or gasoline, the firm will most likely use a(n) Blank______ strategy, although this strategy is becoming less common in an increasingly complex market.
undifferentiated
When a firm sells products that meet the needs of many kinds of customers, it will most likely use a(n) Blank____________ targeting strategy because there is little need to formulate different strategies for different groups.
undifferentiated
Which of the following are targeting strategies?
Concentrated marketing Micromarketing Undifferentiated marketing
When marketers seek to evaluate market attractiveness, what must they do first?
Determine whether the segment is worth pursuing
If a handbag manufacturer offers three different purses (a budget-conscious version, a slightly higher-end version, and a luxury version) to three different target markets, which targeting strategy is it using
Differentiated
Which step in the segmentation process involves determining what the company hopes to accomplish with its marketing strategy?
Establish the overall strategy or objectives
True or False: Marketers evaluate the attractiveness of a segment by considering whether the segment is powerful, vocal, visible, and influential.
FALSE
Which of the following are marketing segmentation approaches?
Geographic Benefit Psychographic
Which of the following are considered when using the Tapestry Segmentation system?
Home value Education Age
Which of the following are key factors to keep in mind when marketers focus their assessments on the potential profitability of market segments, both current and future?
Market access Market competitiveness Market growth
Which of the following are criteria considered by marketers to evaluate whether or not a segment is worth pursuing?
Profitable Identifiable Reachable Substantial
A luxury car company that markets its products to consumers who have a strong need to project an image of power and success uses which method of market segmentation?
Psychographic
A resort advertisement that contains images of groups of people having fun on the beach or lounging by the pool appeals to which component of psychographics?
Self-concept
______ is the image people ideally have of themselves. Multiple choice question. Self-selection Lifestyle Self-value Self-concept
Self-concept
Which of the following are the Circles for a Successful Value Proposition?
The company's offerings Benefits offered by competitors Customer needs and wants
When marketers consider the defection rate of a market segment, what behavior are they calculating?
The percentage of customers who switch to a competitor over a given year
What does the size of a numbered circle on a perceptual map indicate?
The size of the target market
After establishing overall objectives, why do marketers then use a particular method or combination thereof to identify and describe market segments?
To help understand the profile of each segment
True or False: Firms must be able to identify who is within their markets to be able to design products or services to meet customer needs.
True
True or False: Lifestyles are a component of psychographic segmentation that describes how an individual lives his or her life to achieve goals.
True
When should a firm attempt to match its competitor's value proposition?
When increasingly more customers demand the competing product's benefits.
Ease of developing distribution channels and brand familiarity is also known as market ______.
access
The first step in the segmentation process is to ______ the vision or the objectives of the company's marketing strategy clearly.
articulate
The third step of the market segmentation process is to evaluate segment , which is based on such criteria as its profitability, responsiveness, and reachability.
attractiveness
When a firm offers customers a loyalty card for car washes, the firm is employing loyalty segmentation, one of two common types of segmentation
behavioral
A coffee company that advertises its products as "a delicious pick-me-up to start your morning right" uses which form of segmentation?
benefit
When customers visit Hewlett-Packard's website, they can choose from different options based on what they need from a computer and how they expect it to improve their life. This is an example of Blank______ segmentation.
benefit
Pork. The Other White Meat." is an advertising campaign that promoted pork as a white-meat alternative to chicken or turkey. This is a positioning strategy that focuses on Blank______.
competition
By selecting only senior women golfers as its target and focusing all of its efforts on making products that fit these women's needs, a firm is using a(n) targeting marketing strategy.
concentrated
A perceptual map is used in developing a positioning strategy in order to display the position of the products or brands in the Blank______ mind.
consumer's
On a perceptual map, marketers can represent the size of both ________ and potential markets by using different sized ovals that correspond to the market size.
current
Foster Designs sells different types of clothing for men and women. To ensure the retail store locations contain the appropriate assortment of clothing for the typical customer living in the area, the firm should use Blank______ segmentation.
geodemographic
Segmentation that uses a combination of geographic, demographic, and lifestyle characteristics to classify consumers who may patronize stores close to their neighborhood is called Blank______ segmentation
geodemographic
McDonald's promotes coffee in cold, rainy Seattle and seasonal seafood meals, including lobster and crab, in select markets like New England. This is an example of Blank______ segmentation.
geographic
Estee Lauder has a brand portfolio with more than 25 brands in over 150 companies. Having a variety of brands allows Estee Lauder to Blank______.
increase the market for its products
segmentation is a very specific form of behavioral segmentation by which segments are formed based on when a product or service is purchased or consumed.
occasion
Daniel joins a kayaking club. He purchases the necessary equipment and searches online for kayaking videos and researches local rivers and lakes. He begins to see banner ads for companies that sell kayaking and other outdoor gear. This is an example of Blank______ segmentation based on his lifestyle
psychographic
Customers in the segment must react similarly and positively to the firm's offering. This quality is known as Blank______ which is an important element of successful segmentation. Multiple choice question.
responsiveness
The Blank______ strategy must be consistent with and derived from the firm's mission and objectives, as well as its current situation—its strengths, weaknesses, opportunities, and threats (SWOT).
segmentation
When everyone is considered a potential user of its product, a firm should use a(n) Blank______ targeting strategy.
undifferentiated
Even if a firm has developed a product that addresses the needs of a specific, substantial market segment, its efforts will fail if the segment is Blank______.
unreachable
