Chapter 7: Segmentation Targeting and Positioning

Many firms rely on the idea that 20% of heavy users account for ______ of total demand.

80%

Which of the following best represents current ethical concerns in targeting certain market segments?

Abercrombie and Fitch's campaign to sell sexualized clothing to the tween market

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

Actionable Measurable Substantial Differentiable Accessible

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 segmentation bases do B2B firms generally use? (Check all that apply.)

Demographic Behavioral Geographic

Paul works for a homebuilder. His company promotes four different home models that appeal to buyers at different price points. Which targeting strategy is Paul's company using?

Differentiated targeting

What are the three basic strategies for targeting markets? (Check all that apply.)

Differentiated targeting Undifferentiated targeting Niche marketing

True or false: A firm should only be concerned with positioning a product when introducing a new product.

False

What are the four broad bases of market segmentation?

Geographic Psychographic Behavioral Demographic

Which of the following is a target marketing analytics tool?

Google Analytics

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

Growth potential Level of competition Strategic fit

Corinne owns a mountain climbing apparel shop in Denver and recently tried marketing her products in the Midwest. While she did sell a few products, she realized that she sells more in those areas of the country where mountain climbing is common. While she will still sell in the Midwest, she plans to focus her advertising campaigns in the mountain states. Which of the following did Corinne learn through market segmentation?

How to allocate her marketing resources to maximize profit

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.

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

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. It helps a firm decide how to allocate marketing resources to maximize profit.

Which statement(s) accurately characterizes international market segmentation? (Check all that apply.)

It is a very expensive process. Accessing psychographic information is difficult.

Marketing analytics can provide what kind of data regarding target markets? (Check all that apply.)

Lifestyle interests Age Gender

______ marketing involves targeting a large share of a small market segment.

Niche

A marketer focusing on geographic market segmentation would consider which aspect of the market?

Region

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 explains why social media can be a very attractive market segmentation tool to a company?

Social media requires minimal financial responsibility.

Jason has just opened a new store that sells athletic shoes. He has decided that his three main market segments include seasoned runners, high school athletes, and families with young children. Jason now needs to determine which of these groups will provide him with maximum sales. What process is Jason going through?

Targeting

______ refers to the marketing process of evaluating each market segment and determining which one presents the most attractive opportunity to maximize sales.

Targeting

The text notes two market segments in which marketers should be aware of growing ethical concerns. Which of the following are included? (Check all that apply.)

The elderly Children

According to the text, global segmentation usually results in market segments made up of which characteristics? (Check all that apply.)

Those with access to the Internet Those with more money to spend Young people

Which strategy for targeting markets approaches the marketplace as one large segment?

Undifferentiated targeting

In which of the following situations would competitive analysis be the most important?

When all competitors offer a similar good or service

Match the criteria for effective market segmentation on the left with the appropriate definition on the right. Substantial

a segment must be large enough for a firm to make a profit

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

Stacey knows that her company's line of high-end paper products are used for weddings, anniversaries, and other milestone celebrations. Stacey is using ______ segmentation to understand how her company's products are used.

behavioral

While positioning can happen in a variety of ways, it always assumes that ______.

consumers compare goods and services on the basis of benefits

When a marketer relies on characteristics such as age, gender, and income, to understand a target market, they are using ______ segmentation.

demographic

Psychographic segmentation combines personality traits, the science of psychology and ______.

demographics or demographic

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

While shopping for groceries on a family vacation, Stephanie noticed that the store carried several different flavors of her family's favorite snack chip that she had never seen in the store at home. This is evidence of ______ targeting.

differentiated

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

After Tonya moved to Chicago, she realized that the Target store near her did not stock swimming suits year-round like the Target she had lived near in Tampa. This demonstrates the idea of ______ segmentation.

geographic

When a firm can identify a group of consumers with common needs and wants that span the entire globe, it demonstrates the idea of ______ segmentation.

global or international

Compared to the U.S., data collection and classification in many other countries can be described as ______.

inconsistent

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

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

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 ______ ______. (Enter one word in each blank.)

social media

A marketing mix strategy that works well in one market may be successful for other markets in the same segment, allowing the firm to ______ the marketing mix across segments.

standardize

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

targeting

Undifferentiated, differentiated, and niche marketing are the three basic strategies used in ______.

targeting markets

To discover less obvious information about a customer, such as income, a marketer could turn to ______ which provides free information on how households are segmented.

the U.S. Census Bureau

Match the criteria for effective market segmentation on the left with the appropriate definition on the right. Differentiable

the defined segments must respond differently to marketing strategies

Match the criteria for effective market segmentation on the left with the appropriate definition on the right. Measurable

the size and purchasing power of the segment should be clearly identified

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

The process of dividing a larger market into smaller groups based on meaningfully shared characteristics is referred to as ______.

market segmentation

Match the criteria for effective market segmentation on the left with the appropriate definition on the right. Accessible

marketers must be able to reach and serve the segment

Match the criteria for effective market segmentation on the left with the appropriate definition on the right. Actionable

marketers should be able to develop strategies that can attract certain market segments to their firms' goods and services

Irene's Ice Cream has created a new product line targeting customers who are lactose intolerant. This demonstrates the idea of ______ marketing.

niche

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

positioning

As the marketing director for the new product line of air conditioning systems, Chester is responsible for creating a statement which identifies the core target market to which the company wants to direct its efforts. He also needs to create a compelling picture of how his company wants the target market to view the air conditioning systems. Chester is responsible for developing a(n)

positioning statement

As the marketing director for a major car manufacturer, Parul realizes that while most of its customers are at least 40 years old and earn more than $200,000 per year, some people are purchasing their car as a status symbol, while others are buying it for its' safety features. Parul is segmenting the market based on ______.

psychographics

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

psychographics

When a company realizes it needs to reestablish its product line because the marketplace has changed, it must start the process of ______.

repositioning

Which of the following features would be the focus of global segmentation?

Common needs and wants

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

analyze the competitors' positions