BA370 - Chapter 9

A point where a market segment's desired product would be located on a perceptual map is called a(n) _____ point

ideal

What are considered when using the Tapestry Segmentation system?

- home value - age - education

What are true statements concerning micro marketing?

- involves customizing a product or service - considered an extreme form of segmentation - also known as one-to-one marketing

Factors considered in the analysis of profitability of a market segment?

- market access - market growth - market competitiveness

What are examples of self-values?

- self-respect - self-fulfillment - sense of belonging

Firms position products based on what?

- symbols - value - salient attributes

Where are marketing segmentation approaches?

- psychographic - geographic - benefits

Steps of STP in order:

1. establish strategy or objectives 2. describe segments 3. evaluate segment attractiveness 4. select target market 5. identify and develop positioning strategy

T or F: A firm assesses attractiveness of a target market in light of its own competencies using a SWOT analysis

True

T or F: Lifestyles are a component of psychographic segmentation that describes how an individual lives his or her life to achieve goals

True

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

_____ segmentation forms market segments based on the way consumers use a product, such as more frequently or with greater loyalty

behavioral

Suppose that Coca Cola were to divide its market up into segments based on the amount of soda consumers drink. What type of segmentation does this represent?

behavioral (includes how much of the product buyers consume regularly)

The value proposition ____

communicates the customer benefits provided by a product or service

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

By selecting only senior women golfers as the target and focusing all efforts on products to fit their needs, a firm is using a _______ 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 ___ mind

consumer's

VALS shows ____ between psychology and lifestyle choices

correlations

firms using a(n) ____ targeting strategy direct their efforts to several market segments with distinct brands and product offerings for each segment

differentiated

It is important to ensure that segments are distinct from one another because too much overlap between segments means that _____

distinct marketing strategies are unnecessary to meet segment members' needs

Segmentation that uses a combination of geographic, demographic, and lifestyle characteristics to classify consumers who may patronize stores close to their neighborhood is called ______ segmentation

geodemographic

Grouping a market by country, region, or areas within a region is known as _____ 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 _______

increase the market for its products

Because each segmentation method has its unique advantages and disadvantages, most firms often employ ____ methods

multiple

____ segmentation is very specific form of behavioral segmentation by which segments are formed based on use of the product or service for a special event or activity, rather than everyday activities

occasion

While some segmentation methods rely on external descriptions and factors to break down the market, ____ segmentation relies on consumers' descriptions of themselves.

psychographic

Loyal customers buy a substantial amount from the firm. These loyal customers are the most ____ in the long term to the firm

profitable

Which is not a main component of a value proposition:

reach a large audience what IS a main component: - target market - product name/brand - unique diffrences/benefits

_____ is the image people ideally have of themselves

self-concept

______ 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

Because consumers' tastes shift, markets are not ____ and competitors must therefore _____ those shifts

stagnant; react to

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 everyone is considered a potential user of the product, a firm should use a(n) targeting strategy

undifferentiated

Targeting strategy examples:

undifferentiated: sugar, milk, packaged ice differentiated: P&G offer Pantene, Head and Shoulders, Aussie and Wella shampoos concentrated: an infomercial firm sells a gadget to better fry and flip eggs in cooking micromarketing: a florist designs the bride's and five attendants' bouquets

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

____ segmentation groups consumers according to objective characteristics, such as age, gender, income and education

demographic