Principles of Marketing Chapter 6

Mi Rancho Supermarkets is a chain grocer that locates stores in neighborhoods with large Hispanic populations. Their stores carry a greater selection of Hispanic and Latin foods. The type of marketing that Mi Rancho uses is an example of​ ________.

micromarketing

When Subaru of America allows Outback buyers to customize cars to meet their exact needs and​ preferences, it is practicing which type of​ marketing?

micromarketing

Geographic

Nations, regions, states, counties, cities, neighborhoods, population density (urban, suburban, rural), climate

Amazon is now promising​ same-day pick-up of goods as well as local secure​ pick-up points. What point of differentiation is​ this?

services differentiation

The same for less

gives a good deal

Segmentation systems

help marketers segment people and locations into marketable groups of like-minded consumers

If competitors cannot easily copy the benefit a company chooses to​ promote, that benefit is said to be​ _________.

preemptive

At one​ time, Miller Beer was known as the​ "champagne of bottled​ beer." It was targeted at an elite class of customers.​ Later, to increase​ sales, Miller was repositioned to attract members of the working middle class. What is this segmentation method​ called?

psychographic

more for the same

high quality at lower prices

​H2Coast, an automobile​ manufacturer, produces​ fuel-efficient hybrid vehicles that are targeted toward​ high-end exotic-vehicle collectors with ample leisure time. H2Coast most likely segments the consumer market based on​ ________ variables.

psychographics

Number of differences to promote

-Developing a unique selling proposition (USP) for each brand and sticking to it -Positioning on more than one differentiator

Segmentation bases help companies to

-Identify smaller, better-defined target groups -Identify and understand key customer segments -Reach customers more efficiently by tailoring market offerings and messages to customers' specific needs

Demographic

Age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, generation

Which of the following describes the process of dividing markets into groups based on​ consumers' knowledge,​ attitudes, uses, or​ responses?

Behavioral segmentation

Positioning statement

summarizes company or brand positioning

Usage rate

Markets can be segmented into light, medium, and heavy product users.

User status

Markets can be segmented into nonusers, ex-users, potential users, first-time users, and regular users.

Which of the following would make a segment less attractive to​ enter?

New entrants finding it easy to enter the segment

The product's position should be

monitored and adapted over time.

Firms can differentiate in terms of

product, services, channels, people, or image

_______________ segments are those segments that are conceptually distinguishable and respond differently to different marketing mix elements and programs.

Differentiable

Market segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

Munoz Specialty Foods groups its customers by regions in the United​ States, such as​ Midwest, Northeast, and Southwest. For each​ region, Munoz creates a different set of advertisements and promotions. On which of the following segmentation variables does the firm divide its​ market?

Geographic

Behavioral

Occasions, benefits, user status, usage rate, loyalty status

Which of the following is a variable used to segment business buyers that is not used to segment consumer​ buyers?

Operating characteristics

Four market-targeting strategies

Undifferentiated (or mass), differentiated, concentrated (or niche), and micromarketing

Socially responsible target marketing would classify which of the following as an especially vulnerable target market for harmful or controversial​ products?

children

The website leftyslefthand.com markets products to​ left-handed consumers only. Which targeting strategy does this​ represent?

concentrated marketing

Heeltoe, a boutique that caters to the footwear needs of​ women, manufactures two different lines of footwear based on the purchasing power of its customers. One product line caters to the needs of​ affluent, middle-aged​ women, and the other line targets younger professionals and homemakers. Heeltoe most likely segments the consumer market based on​ ________ variables.

demographic

The type of segmentation that forms segments of consumers who have similar needs and buying behaviors even though they are located in different countries is known as​ _________.

intermarket segmentation

Hyperlocal social marketing

location-based targeting to consumers in local communities or neighborhoods using digital and social media

Dividing a market into smaller segments of buyers with distinct needs or behaviors that might require separate marketing strategies is known as​ ______________________.

market segmenting

Requirements for effective segmentation

measurable, accessible, substantial, differentiable, actionable

A manufacturer of​ half-ton pickup trucks creates a positioning map for the U.S.​ half-ton pickup market. The position of each circle on the map indicates the​ brand's perceived positioning on two​ dimensions: price and orientation​ (economy versus​ performance). The size of each circle indicates the​ brand's relative market share. This is an example of a​ ________________

perceptual positioning map

Socially responsible target marketing

should be done to serve both the interests of the company and the interests of those targeted

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

When marketers aggressively promote only one benefit to the target​ market, the benefit promoted is known as the product or​ service's _____________________.

unique selling proposition

Factors to consider when choosing a target strategy

Company resources, product variability, product's life-cycle stage, market variability, competitor's marketing strategies

Occasion segmentation

Segments divided according to occasions.

Benefit segmentation

Segments divided according to the different benefits that consumers seek from the product.

Controversy and concern of target marketing

Vulnerable or disadvantaged consumers are targeted with controversial or potentially harmful products

Market segment

a group of consumers who respond in a similar way to a given set of marketing efforts

​Kidcomp, an American​ computer-manufacturing firm, targets children younger than age 10 by providing free games and applications. The​ firm's marketing approach is reflective of​ ________ segmentation.

age and life-cycle

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

Maintain the position obtained through

consistent performance and communication.

Perceptual Map

created by questioning a sample of consumers about their perception of products, brands, and organizations with respect to two or more dimensions

The​ Ritz-Carlton has carefully created a strong and distinctive differentiation​ strategy, which is supported by everything the company​ says, is, and does. Which type of differentiation is​ this?

image differentiation

The type of segment characteristic in which the​ size, purchasing​ power, and profiles of the segments can be quantified is known as​ _______________________

measurable

All the company's marketing mix efforts

must support the positioning strategy

Firms that manufacture seasonal products target their consumers primarily through​ ________ segmentation.

occasion

Demographics

provides the foundation

Psychographic

social class, lifestyle, personality

Customer value-driven marketing strategy

- Identifying which customers to serve - Determining a value proposition

Psychographic Segmentation Marketers segment their markets using variables such as

- Lifestyle - Personality characteristics

less for much less

Meeting consumers' lower performance or quality requirements at a lower price

more for less

best winning proposition

Loyalty status

consumers can be loyal to brands, stores, and companies

Criteria of differences to promote

important, distinctive, superior, communicable, preemptive, affordable, profitable

More for more

provides the most upscale product or service

Dividing buyers into groups based on social​ class, lifestyle, or personality characteristics is called​ ________ segmentation.

psychographic

The marketing manager at Only Organic Delicatessen targets customers who are focused on​ organic, healthy food choices but who still want to dine out. The restaurant chain offers a wide variety of​ organic, low-fat, locally raised produce and foods. Only​ Organic's approach is best referred to as​ ________ segmentation.

psychographic

psychographics

builds the segment

Values, Attitudes & Lifestyles (VALS)

developed by SRI Consulting Business Intelligence; classifies consumers based on psychological characteristics that are correlated with purchase behavior and key demographics

Which of the following describes the process 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