MKT 574: Chapter 7: Segmentation, Target marketing, and positioning

3 steps in target marketing

1. analyze market segments 2. develop profiles of each potential target market 3. select a target marketing approach

place the steps in target marketing in the correct order

1. analyze market segments 2. develop profiles of each potential target market 3. select a target marketing approach

A hybrid form of segmentation that considers both geographic and demographic factors is called ______

geodemographic segmentation

_______ _______ segmentations involves grouping consumers by a standardized set of social strata around the familiar lower class, middle class, and upper class.

social class

A series of life stages defined by age, marital status, number of children, and other factors is called ______

family life cycle

Mary has a large family and buys all of her paper products at the local big box store. She doesn't care much about the variety of product choices, but she does find it easy to be able to buy everything in bulk. In terms of behavioral segmentation, Mary's behavior is an example of:

benefits sought

differentiation

communicating and delivering value in different ways to different customer groups

perceptual map

displays paired attributes in order to compare consumer perceptions of each competitor's delivery against those attributes

geographic segmentation

divides groups based on physical location

market segmentation

dividing a market into meaningful smaller markets or submarkets based on common characteristics

undifferentiated target marketing

essentially a one-market strategy, sometimes referred to as an unsegmented mass market

target marketing

evaluating the market segments, then making decisions about which among them is most worthy of investment for development

A type of segmentation that is based on a very quantifiable demographic variable and is usually analyzed in incremental ranges is ________.

income segmentation

concentrated target marketing

involves targeting a large portion of a small market - aka focus strategy or niche strategy

Dividing a market into meaningful smaller markets or submarkets based on common characteristics is called:

market segmentation

The data generated form positioning research can be used to develop a useful visual tool for positioning called a(n) ______ ______.

perceptual map

When the firm turns its attention to creating, communicating, delivering, and exchanging offerings that have value to the target markets so that customers understand its ability to fulfill their needs and wants, the firm is engaged in _______

positioning

_____ strategies are executed through the development of unique combinations of the marketing mix variables.

positioning

______ relies on the communication of one or more sources of value to customers in a way that the customer can easily make the connection between his or her needs and wants and what the product has to offer.

positioning

Dividing consumer groups based on variables such as personality and AIOs (activities, interests, and opinions) is called _____ segmentation.

psychographic

segmentation

seeks to find one or more factors about members of a heterogeneous market that allow for dividing the market into smaller, more homogeneous subgroups for the purpose of developing different marketing strategies to best meet the segment's distinct needs and wants.

VALS

segments Us adults age 18 and older into eight consumer groups on the basis of a standardized questionnaire and proprietary algorithm.

________ measure(s) underlying motivations and resources that different groups of consumers share to explain each group's most likely choices as consumers.

VALS

PRIZM profiles every zip code in the US by both _____ and lifestyle (psychographic) variables.

demographic

_________ segmentation divides consumer groups based on physical location.

geographic

Place the steps in the positioning process in the correct order, with the first step at the top.

1. conduct a series of focus groups to develop or confirm the relevant attributes 2. conduct a survey in which respondents rate the importance of each attribute 3. analyze data through a gap analysis

most often used sources of differentiation

1. innovative leadership: constantly developing the "next new thing" 2. product leadership: performance, features, durability, reliability, style, and so on. 3. image leadership: symbols, atmosphere, and creative media 4. price leadership: efficiencies in cost of labor, materials, supply chain, or other operational elements enabling the price leader to charge less 5. convenience leadership: making the product or service significantly easier to obtain 6. service leadership: having an unusual and notable commitment to providing service to customers 7. personnel leadership: hiring employees who are competent, reliable, courteous, credible, responsive, and able to communicate clearly

criteria questions for successful segmentation

1. is the segment of sufficient size to warrant investing in a unique value-creating strategy for that segment as a target market? 2. is the segment readily identifiable and can it be measured? 3. is the segments clearly differentiated on one or more important dimensions when communicating the value of the product? 4. can the segment be reached in order to deliver the value of the product, and subsequently can ti be effectively and efficiently managed?

Target marketing with a focus strategy that involves targeting a large portion of a small market is called _____ target marketing.

concentrated

Target Marketing that advocates that firms should establish a learning relationship with each customer and then fulfill that customer's needs in as customer a manner as possible is called _______ target marketing

customized

_________ segmentation divides consumer groups based on a variety of readily measurable descriptive factors about the group.

demographic

______ target marketing refers to developing different value offerings for different targeted segments.

differentiated

__________ and __________ segmentation is now of prime importance in the US as the number of natural born citizens of ethnic minorities has grown and the number of immigrants has increased.

race and ethnicity

Adapting the marketing mix approach necessary to change present consumer perceptions of the product is called ______.

repositioning

Which of the following are approaches to geographic segmentation? Select all that apply.

1. climate 2. growth in population 3. size of population 4. region 5. density of population

consumer market segmentation approaches

1. geographic 2. demographic 3. psychographic 4. behavioral

Place the elements of the market segmentation, target marketing, and positioning process in the correct order.

1. market segmentation 2. target marketing 3. positioning

Which of the following are consumer variables that psychographic segmentation relies on to segment a market? Select all that apply.

1. opinions 2. personality 3. activities

Which fo the following are sources of marketing differentiation?

1. price leadership 2. innovative leadership 3. service leadership

4 basic levels of priority for development

1. primary target market: those segments that clearly have the best chance of meeting ROI goals and the other attractiveness factors. 2. secondary target markets: those segments that have reasonable potential but for one reason or another are not best suited for development immediately. 3. tertiary target markets: those segments that may develop emerging attractiveness for investment in the future but that do not appear attractive at present. 4. target markets to abandon for future development

Which of the following are key business market segmentation variables? select all that apply.

1. purchasing approaches 2. personal characteristics 3. operating variables 4. situational factors 5. demographic

criteria for effective segmentation

1. segment is of sufficient size to warrant investing in a unique value-creating strategy for that segment as a target market 2. segment is readily identifiable and can be measured 3. segment is clearly differentiated on one or more important dimensions when communicating the value of the product 4. segment can be reached to deliver the value of the product, and subsequently can be effectively and efficiently managed

Which of the following are factors that should be considered when analyzing segment attractiveness?

1. segment size and growth potential 2. competitive forces related to the segment 3. overall strategic fit of the segment to the company's goals and value adding capabilities

positioning errors that can undermine a firm's overall marketing strategy

1. under positioning: when consumers have only a vague idea about the company and its products, and do not perceive any real differentiation 2. over positioning: when consumers have too narrow an understanding of the company, product, or brand 3. confused positioning: when frequent changes and contradictory messages confuse consumers regarding the positioning of the brand. 4. doubtful positioning: when the claims made for the product or brand are not regarded as credible by consumers

Segmentation that presumes some regularity of consumer needs and wants by chronological age is called _______ segmentation.

age

Dividing consumer groups according to similarities in benefits sought or product usage patters is called ______ segmentation.

behavioral

positioning

communicating one or more sources of value to customers in ways that connect needs and wants to what the product has to offer. Positioning strategies are executed through the development of unique combinations of the marketing mix variables.

Which of the following is NOT a type of VALS segments?

culturals

When a company communicates and delivers value in different ways to different customer groups, it is engaged in _______.

differentiating

demographic segmentation

divides consumer groups based on a variety of readily measurable descriptive factors about the group. - age, generational group, gender, family, race and ethnicity, income, occupation, education, social class, and geodemographic group - one of the most popular segmentation approaches because customer needs and wants tend to vary with some degree of regularity based on demographic differences and because of the relative ease of measurement of the variables

behavioral segmentaiton

divides customers into groups according to similarities in benefits sought or product usage patterns

Which of the following is a potential positioning error?

doubtful positioning

________ segmentation might lead a firm to offer its products based on some anticipated future payoff from the consumer.

educational

positioning strategy

execution of the positioning approach - executed through the development of unique combinations of the marketing mix variables (product, price, place, and promotion

______ segmentation is a type of demographic segmentation that recognizes differences in needs and wants of men versus women.

gender

A type of age segmentation that helps get at the heart of differences in needs and wants is called _______ segmentation.

generational

repositioning

involves understanding the marketing mix approach necessary to change present consumer perceptions of the product

age segmentation

presumes some regularity of consumer needs and wants by chronological age

psychographic segmentation

relies on consumer variables such as personality and AIOs (activities, interests, and opinions) to segment a market. - aka segmentation of lifestyle or values. - builds on purely demographic approach in that it helps flesh out the profile of the consumer as a human being and not just a location or demographic descriptor.

Match the term to its example

usage occasion: Jose takes Maria out to dinner for their anniversary usage rate: dentists strongly recommend that patients floss every day user status: Sasha flies American Airlines only because her frequent flyer miles are good for where she wants to vacation

Which of the following are criteria for effective segmentation? Select all that apply.

1. segment is of sufficient size to warrant investing in a unique value-creating strategy for that segment as a target market 2. segment is readily identifiable and can be measured 3. segment is clearly differentiated on one or more important dimensions when communicating the value of the product 4. segment can be reached to deliver the value of the product, and subsequently can be effectively and efficiently managed.

factors to consider when analyzing segments attractiveness

1. segment size and growth potential 2. competitive forces related to the segment 3. overall strategic fit of the segment to the company's goals and value-adding capabilities

_______ segmentation recognizes that there may be a number of consistent needs and wants demonstrated by consumers based on what type of job they have.

occupational

Positioning

relies on the communication of one or more sources of value to customers in such a way that the customer can easily make the connection between his or her needs and wants and what the product has to offer.

Some firms use a market approach of low cost to all potential customers. This represents a one-market strategy, sometimes referred to as _____ target marketing.

undifferentiated