Marketing CH 8
When a firm uses a concentrated targeting strategy, it can:
offer a highly specialized marketing mix
An individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer is referred to as:
one-to-one marketing
Lands' End offers customers the option of having jeans and other types of pants made to fit them according to their waist, hip, and leg length measurements. This is an example of:
one-to-one marketing
A(n) _____ is a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.
target market
ACT for kids, an anticavity fluoride rinse, comes in BubbleGum BlowOut flavor. The age-based variable that distinguishes the market for this product is an example of a _____ segmentation.
demographic
Coca-Cola launched a new Black History television commercial on BET to coincide with the Martin Luther King Jr. holiday. The ad is just one element of a strategy for connecting with African American consumers. Coca-Cola's segmentation plan for this promotional campaign is based on _____ segmentation.
demographic
Modern Maturity magazine is targeted toward adults age 50 years and older. It has articles on health and fitness as well as the arts and finance. What segmenting base is Modern Maturity using?
demographic
U.S. paint manufacturers traditionally use different formulas for developing paint to be used in the humid Southeast, the frigid Midwest, and the hot and dry Southwest. This is an example of how demographic segmentation is used.
false
Until the 1990s, few firms practiced market segmentation.
false
While it is important to understand potential business customers' buying processes, this is not a helpful segmentation basis.
false
A series of stages determined by a combination of age, marital status, and the presence or absence of children is known as the:
family life cycle
Evenflo makes baby gates to keep toddlers away from stairs. What demographic segmentation variable will Evenflo use to identify its target market?
family life cycle
To be useful, a segmentation scheme must produce segments that meet four basic criteria. The criteria are:
substantiality, identifiability and measurability, accessibility, and responsiveness
The requirement for a market segment to be responsive means:
the segment identified by a marketer should differ in how it responds to the marketing mix when compared to another segment confronted with the same mix
A product's positioning could be based on product users.
true
With respect to stage in the family life cycle, research has found that the overriding factor in describing baby boomer subsegments is the presence of children in the house.
true
A number of plastic surgery groups in Great Britain are making use of loyalty cards. Patients who have five procedures performed at their offices will receive either a free procedure or a discount on another more complex surgical procedure. Aimed at patients who get maintenance treatments such as Botox or regular face peels, the loyalty cards may be used toward any type of surgical procedure. This is an example of segmentation by:
usage rate
Most airline frequent flyer programs reward the most frequent flyers with business class upgrades and flight lounge privileges. Airlines are using these rewards as a means of implementing _____ segmentation.
usage-rate
Which of the following statements best describes the reason marketers find geodemographic segmentation so effective?
"Birds of a feather flock together."
Companies that adopt a concentrated marketing strategy violate which of the following old sayings?
"Don't put all your eggs in one basket."
The _____ proposes that a minority of a firm's customers purchase a majority of the volume of the product.
80/20 principle
Train collectors Jack McCoy and Sandro Dias have decided to open a store that sells train memorabilia--everything from toy train sets to full-sized railroad signs. After 18 months in business, they have noticed most of their sales are to the same small group of customers (about 40 people) even though they have records to show there are over 200 active train collectors within a 50-mile radius of their store. Their retailing experience is supportive of the:
80/20 principle
_____ are characteristics of individuals, groups, or organizations that marketers use to divide a total market into segments.
segmentation base
What is the first step in segmenting a market?
select a market or product category for study
List, in correct order, the steps in segmenting a market.
select a market or product category for study; choose a basis or bases for segmenting the market; select segmentation descriptors; profile and analyze segments; select target markets; design, implement, and maintain appropriate marketing mixes
After selecting a market for study and choosing bases for segmenting that market, the next step is to:
select segmentation descriptors
Increasing share of customer means:
selling more products to each customer
Market segmentation:
should be redone periodically
What are the four criteria that are necessary to define a market?
A market has the following characteristics: composed of people or organizations, the people or organizations have needs and wants that can be satisfied by particular product categories, the people or organizations have the ability to purchase the sought products, the people or organizations are willing to exchange resources for desired products
What is a segmentation base (or segmentation variable)? Name the common segmentation bases used by marketers to segment consumer markets.
A segmentation base (or variable) is a characteristic of individuals, groups, or organizations that marketers use to divide a total market into segments. Consumer goods marketers commonly use one or more of the following characteristics to segment markets: geography--by region, market size, market density, or climate demographics--such as age, gender, ethnic background, income, or family life cycle stage psychographics--such as motives, lifestyles, or personality benefits sought--such as less filling or great taste usage rate--heavy, medium, or light
Marketers use demographic information to segment markets because it is widely available and often related to consumers' purchasing and consumption behavior. List five common bases used by marketers for demographic segmentation. For each base listed, give an example of a product specifically targeted to the needs and wants of the segment identified within the base.
Common bases used in demographic segmentation include:age, gender, income, ethnic background, family life cycle
What is geodemographic segmentation? What is the result of geodemographic segmentation? Give one specific example that illustrates this type of segmentation.
Geodemographic segmentation clusters potential customers into neighborhood lifestyle categories. It is a combination of geographic, demographic, and lifestyle segmentation. The result of geodemographic segmentation is micromarketing, which is the targeting of small geographic regions with specially designed marketing programs. The text example is H-E-B Grocery Company tailoring merchandise in each store to patron preferences.
What is psychographic segmentation? Discuss why marketers use the basis for segmenting markets.
Psychographic segmentation is market segmentation on the basis of personality, motives, lifestyles, and geodemographics. While age, gender, income, ethnicity, family life cycle stage, and other demographic variables are usually helpful in developing segmentation strategies, often they do not paint the entire picture. Psychographics provide more detailed descriptions of market segments. Psychographic variables alone can be used to segment markets, or they can be combined with other segmentation variables.
What does the 80/20 principle propose
Roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product.
To be useful, a segmentation scheme must produce segments that meet four basic criteria. Name and briefly describe each of these four criteria.
SUBSTANTIALITY. A selected segment must be large enough to warrant developing and maintaining a special marketing mix (commercially viable).; IDENTIFIABILITY AND MEASURABILITY. The segments must be identifiable and their size measurable. Descriptive data regarding demographic, geographic, and/or other relevant characteristics of segment members must be available.; ACCESSIBILITY. The firm must be able to reach members of targeted segments with customized marketing mixes.; RESPONSIVENESS. The market segment must respond differently than other segments to marketing mixes; otherwise, there is no need to treat that segment separately.
All of the following are criteria for successful market segmentation except:
accountability
Refer to Mercedes-Benz. Mercedes-Benz's baby boomers are a useful segment because they meet certain criteria. Which of the following do the baby boomers meet?
all of these
A potential disadvantage of multisegment targeting is _____, which occurs when sales of a new product cut into sales of a firm's existing products.
cannibalization
All of the following are advantages of using a concentrated targeting strategy except:
cannibalization
Clorox saw sales of its bleach products suffer when it introduced laundry detergents with bleach as an added ingredient. This is an example of:
cannibalization
Pharmaceutical firms have introduced new over-the-counter antacids that block the production of stomach acids while still marketing traditional antacids. Traditional antacids treat heartburn by neutralizing stomach acid. If sales of the new acid blockers reduce sales of the traditional antacids, then _____ has occurred.
cannibalization
Refer to Mercedes-Benz. One potential problem is that some of the purchasers of Daimler's downsized luxury vehicles could be consumers who would have purchased a larger, higher-priced Mercedes-Benz. This situation is called:
cannibalization
When Procter & Gamble (P&G) introduced Liquid Tide to a new segment, consumers in the traditional powdered detergent segment switched to the liquid product. Rather than real sales growth, P&G simply experienced the shifting of existing customers to a new product. This exemplifies a drawback of multisegment targeting strategy called:
cannibalization
Zatarains offers packaged spice mixes for jambalaya, gumbo, and red beans and rice. Consumers can buy the product in the store, so Zatarains sells individual household-size packages to resellers. It also sells institutional-size packages to military bases, schools, restaurants, and other large organizations. The marketers of Zatarains would most likely segment the business market according to:
company characteristics
Ad campaigns for Aleve pain reliever emphasize the fact that to get the same relief offered by one Aleve, you would need to take six aspirin or Tylenol and four Advil. These promotions are using the positioning base of:
competitor
Tall Paul's designs and sells household furniture and furnishings to people who are over 6'6" tall--a rather small target market. Tall Paul's uses a(n) _____ targeting strategy.
concentrated
A(n) _____ strategy entails selecting one segment of a market to target and focuses on understanding the needs, motives, and satisfactions of the members of that segment, as well as on developing a highly specialized marketing mix.
concentrated targeting
E&V Bridal Studios, a wedding consulting business, only works with Eastern Asian customers who want to use their cultural heritage in their wedding ceremonies. What type of segmentation strategy does the wedding consultant use?
concentrated targeting
Product positioning is the process of:
creating the desired image of the firm's product
_____ is one of the potential disadvantages associated with a multisegment strategy.
demarketing
Income, ethnic background, gender, and age are all examples of _____ segmentation bases.
demographic
Refer to Wrestling Merchandise. The marketing research revealed that _____ segmentation can be used to identify the biggest fans of professional wrestling.
demographic
All of the following are steps in the market segmenting process except:
determining the objectives of the segmentation strategy
What is product differentiation, and how can it be achieved?
distinguishes one firm's products from those of competitors. Differences can be either real or perceived. Products can be differentiated by brand names, packaging, color, smell, or other means.
All of the following are typical bases for positioning except:
distribution
The advertisements for Kay Jewelers usually show a man presenting a woman with a ring or necklace and receiving a kiss in return. The ad then shows the slogan "Every Kiss Begins with Kay." This is an example of _____ positioning.
emotion
A product's position refers to where it is located on store shelves.
false
Refer to Mercedes-Benz. Daimler plans to introduce the downsized luxury vehicles in major U.S. cities, such as Los Angeles, New York, Miami, Atlanta, Dallas, and Chicago, because market research has shown that these metropolitan areas have the greatest potential with respect to the consumers able to purchase a $30,000+ smaller luxury vehicle. Which type of psychographic segmentation does this represent?
geodemographic
Refer to Wrestling Merchandise. Most wrestling fans live in the southern United States. Based on this information, what segmentation base would be appropriate?
geographic
With multisegment targeting, a company could benefit from all of the following except:
greater product design and management cost
Business marketers focus on all of the following market segments except:
households
Refer to Mercedes-Benz. Baby boomers have money to burn and will be the primary target for the downsized luxury vehicles offered by Mercedes. Many of them will want this type of car to feel young again. This group is considered a(n):
market
Refer to Wrestling Merchandise. The group identified as strong wrestling fans can be described as a:
market segment
All of the following have been identified as trends that will lead to the continuing growth of one-to-one marketing except:
mass marketing is no longer appropriate, especially for consumer packaged-goods products
Piper Corporation makes aircrafts. It produces several different planes for three categories of customer: Professional, Personal, and Trainer. What type of targeting strategy is Piper using?
multisegment
When a firm serves two or more well-defined market segments with a distinct marketing mix for each, it is using a(n) _____ targeting strategy.
multisegment
Refer to Wrestling Merchandise. Since the WWE must use different methods to reach its three largest target markets, it must use:
multisegment targeting
Stouffer's offers gourmet entrees for one segment of the frozen dinner market and Lean Cuisine for another segment that wants both good taste and low calories. When Stouffer's chose to serve two well-defined market segments and develop distinct marketing mixes for each, it was implementing a(n) _____ strategy.
multisegment targeting
Mirage Resorts in Las Vegas has a system that allows hotel clerks instantaneous access to a client's gambling history to determine what sort of room or complimentary services will provide the guests with the highest level of service. The resort is practicing:
one-to-one marketing
Firms can be categorized by the type of purchasing strategy used. _____ consider numerous, even unfamiliar, suppliers and solicit and analyze options.
optimizers
The Green Earth, a landscaping company, finds that the most difficult firms to get business from are the _____, because this group considers numerous and even unfamiliar suppliers, solicits bids, and carefully analyzes options; therefore, it requires a higher levels of customer service.
optimizers
A(n) _____ could help determine whether or not snacking consumers consider Kashi Tasty Little Crackers healthy and tasty in comparison to other brands.
perceptual map
Which of the following is a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds?
perceptual mapping
Elaine perceives Cadillac automobiles to be for older men, not for young professional women such as herself. Elaine's perception represents Cadillac's _____ in her mind.
position
The place a product, brand, or group of products occupies in consumers' minds relative to competing offerings is referred to as a product's:
position
Chandler Kumar owns two antique stores. One is in an upscale neighborhood, and its merchandise is artfully arranged and priced to indicate product rarity. The other is in a run-down strip mall and contains some of the same type of merchandise, but the items are left in open boxes and placed haphazardly on shelves. Customers of either store have entirely different perceptions of the stores and would be surprised to know Kumar operates each of them because he uses such differing _____ strategies.
positioning
_____ is the development of a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general and is related to the place a product occupies in consumers' minds relative to competing offerings.
positioning
Name the four broad segments of the business market.
producers, resellers, government, institutions
For years, fryer chickens sold in grocery stores were perceived to be a rather generic product--one brand of chicken was much like another. Then Frank Perdue began an advertising campaign to tell consumers that his brand of chicken was more tender and a better choice. Perdue brought _____ to the marketing of fryer chickens.
product differentiation
Products such as bleaches, aspirin, unleaded regular gasoline, and some soaps are distinguished by differences such as brand names, packaging, color, smell, or "secret" additives. With these products, marketers attempt to convince customers that their product is significantly different from the others and should therefore be demanded over competing brands. These marketers are using:
product differentiation
There are a number of devices that parents can buy to prevent their children from hearing objectionable language while they watch television. ProtecTV is the only product of its kind that has an expandable dictionary. Parents can add words and phrases they find offensive, and the additional words will be deleted from soundtracks and captioning. ProtecTV uses a(n) _____ strategy.
product differentiation
When the Sara Lee Bakery Group introduced Iron Kids Crustless bread (to save mothers the time and effort of slicing the crusts off sandwiches), it was using:
product differentiation
In 2008, Apple, Inc. introduced Mobile Me, which keeps everything on a consumer's Mac, PC, iPod, or iPhone on an online server Apple calls the "Cloud" so that it can be accessed at any time. Apple is catering to on-the-go consumers who use multiple platforms. This positioning strategy is based on the:
product user
Refer to Mercedes-Benz. Which positioning base will Daimler be using if the company emphasizes the type of people who buy Mercedes-Benz automobiles in its promotional efforts?
product user
Hank operates a plumbing and electrical supply store. He has categorized its business customers by their purchasing strategy. Hank has found it much easier to serve and satisfy the _____, who usually recontact familiar suppliers and place an order immediately if product and delivery requirements are acceptable.
satisficers
June LaVista owns a health and fitness gym. After dividing her customers into four segments based on income range, age, level of fitness, and other selected segmentation descriptors, she wrote out a description of each segment's size, expected growth, frequency of exercise, and overall profit potential. Which step in segmenting a market is LaVista engaged in?
profiling and analyzing her market segments
_____ segmentation is based on personality, motives, and lifestyles.
psychographic
Tower Fasteners developed a commanding position in the fastener industry by having in stock over 150,000 different types of fasteners. Tower's primary market is defined as companies with a need for specialized fasteners. All of the following are characteristics of the buying organization that Tower can use for segmentation except:
psychographic variables
The basic goal of one-to-one marketing is to:
reduce costs through customer retention and increase revenue through customer loyalty
H&R Block launched a $100 million marketing campaign to parlay the company's intimate knowledge of 20 million customers' finances into other services like mortgages and investment advice. Block has great brand recognition, but consumers only care about it four months out of the year. H&R Block is attempting to _____ itself to make people think of it as a company offering services year-round.
reposition
Changing consumers' perceptions of a brand in relation to competing brands is known as:
repositioning
Refer to Wrestling Merchandise. Prior to the 1990s, professional wrestling tried to compete as a legitimate sport just like football and baseball. Now it uses the term sports entertainment when talking about what it is marketing to its fans. This is an example of the implementation of a(n) _____ strategy.
repositioning
The Southern Company is the largest provider of utilities in the southeastern United States. It has also been accused of being the biggest source of industrial air pollution in the area. Southern is trying to change consumers' perceptions of the company by sponsoring a series of television programs on how to preserve our environment. The Southern Company is hoping the programming will lead to:
repositioning
To be successful, most businesses focus on customer service. However, the cable industry has a history of poor customer service. Cable companies are facing competition for television customers who once had no choice but cable if they wanted to see more than local programs. In the face of this competition from direct broadcast satellites, cable companies are trying to use a _____ strategy to show that they have become customer oriented.
repositioning
Firms can be categorized by the type of purchasing strategy they use. _____ usually contact familiar suppliers and place an order with the first that can meet product and delivery requirements.
satisficers
Sure Fit, Inc. has begun a rebranding strategy to let customers know it no longer only produces slipcovers but now also carries a line of rugs, window treatments, and bedding. Its _____ is described as women with average annual household income of $60,000 or more.
target market
The debate over gay marriages is causing a great deal of furor, but it has done little to deplete the importance of the affluent gay market to businesses. Georgia Pacific and Mitchell Gold, a furniture manufacturer, are two companies that have implemented and maintained marketing mixes designed to meet the needs of lesbians and gays. To these companies and others, lesbians and gays are a desirable:
target market
The Ritz-Carlton hotel chain is renowned for its service and individual treatment of its customers. All service staff and employees have note pads and are taught to record every little piece of information they learn about a customer. If a business traveler ordered soft pillows, only wanted martinis in his mini bar, and needed access to a fax machine, he would find all of these amenities in his room when he arrived. The Ritz-Carlton is basing its one-to-one marketing on which of the following trends?
the fact that consumers do not want to be treated like the masses
Thompson Pools installs and maintains swimming pools. They group their customers according to their needs: new installs, regular maintenance, and frequent product consumers. When do they need a new segmentation analysis?
they should do them regularly because of the rapidly changing nature of most markets
Which target marketing strategy views the market as one big market with no individual segments and thus uses a single marketing mix?
undifferentiated
Candace Popwell makes and markets Festive Holiday Truffles candy. The confectionary company owner views the world as one big market with no individual segments and tries to reach it with only one marketing mix. Her essentially mass-market philosophy indicates she probably uses a(n) _____ strategy.
undifferentiated targeting
When Henry Ford made the Model T, he said that consumers "can have their car in any color they want, as long as it's black." This was a case of:
undifferentiated targeting
General Mills offers a deal where its cereal users can collect box tops and submit them to General Mills to earn money for their children's schools. This program, called the Box Tops for Education Program, is a means of changing light users into heavier users. In other words, it is a form of _____ segmentation.
usage-rate
All of the following statements are reasons why consumer goods companies take a regional approach to marketing rather than a national approach except:
A regional approach gives marketing managers control over the competitive environment.
The marketing manager of Gevalia gourmet coffees wants to target the gay male consumer because he thinks this segment of consumers appreciates and consumes gourmet coffee. Even though gay lifestyles are becoming more accepted socially, the manager is finding it difficult to determine the market potential for this segment because many gay consumers are not willing to admit their lifestyle publicly. Which criterion of a useful segment does this illustrate?
Identifiability and measurability
A group of middle school students stop by a bicycle store. The store has just received a new shipment of high-end racing bicycles. The bicycles range in price from $1,200 to $3,000. All of the students want one of these new bikes, but none has the means to buy one. Is this group of consumers a potential market for the expensive bikes?
No, they do not have the ability to purchase at this time.
There are many furniture manufacturers. Tall Paul's is the only one that makes furniture to meet the needs of people who are over 6'6" tall. These people find furniture designed for average-sized people to be cramped and uncomfortable. Tall Paul's uses _____ segmentation.
benefit
Rachel is the owner of a gift shop. She understands the need to segment her market, and available marketing research indicates there is much demand in the community for personalized gifts. She has few resources and cannot engage in intensive consumer research to precisely identify a segment. Which of the following strategies would you suggest she employ?
Use a single-variable strategy, because it offers an inexpensive alternative that would not require much experience to employ
The city of Monroe has a literacy program for the homeless but has had a difficult time reaching this group with information about the program, even though radio and television stations have provided public service advertisements free of charge. This illustrates a segmentation problem with:
accesibility
Which criterion of useable market segments means the firm must be able to reach members of targeted segments with customized marketing mixes?
accesibility
Fisher-Price developed a rugged, waterproof camera for children. This product uses _____ segmentation.
age
While most marketing to Generation Y tries so hard to be hip that it borders on parody, Vans has kept the decades-old brand real and vital for Gen Yers. Marketing programs the footwear manufacturer uses to reach Gen Yers include the Vans Skate Parks, which operate in malls around the country; the wildly successful Vans Warped Tour for alternative music; and the Vans Triple Crown, the brand's answer to the X Games. The segmentation plan used by Vans relies heavily on _____ segmentation.
age
Heavenly Ham is a ham and sandwich store that stresses in its advertisements that customers should choose them "when taste matters." Heavenly Ham uses _____ segmentation.
benefit
Karry-Lite, the manufacturer of light-weight suitcases with wheels, uses as its slogan, "Takes the 'lug' out of luggage." This slogan illustrates the use of _____ segmentation.
benefit
Private Ears are earphones that a person with limited hearing can use to hear the television without turning the volume up full blast. That way, other family members with normal hearing can watch the television at the appropriate volume for them. Private Ears is using _____ segmentation.
benefit
ThermaCare air-activated heat wraps are meant to be wrapped around sore muscles and joints. The product is advertised as a powerful pain reliever and a source of deep muscle relaxation. Its soothing warmth can work at night while you sleep to restore your body. The manufacturer of ThermaCare heat wraps is using _____ segmentation.
benefit
When asked to name a brand of sports drink, most people will answer Gatorade, and some will respond with POWERade. But people with diabetes who still need to replenish electrolytes lost during activity or illness cannot drink these sports drinks because they are high in sugar and thus cannot be consumed by diabetics. As a result, a manufacturer has developed Champion Lyte, which contains no sugar. The manufacturer of Champion Lyte has used _____ segmentation to identify its market.
benefit
_____ is the process of grouping customers into market segments according to the benefits sought from the product.
benefit segmentation
All of the following are bases for psychographic segmentation except:
benefits
A manufacturer of lenses used in microscopes, binoculars, and telescopes has segmented its market into scientific equipment manufacturers, sporting equipment manufacturers, and retailers who sell replacement lenses. In order for this segmentation scheme to be successful, all of the following criteria must be met except:
complexity
A research firm has conducted marketing research on the market for metal roofing for homes. The research firm has determined there are thousands of homeowners who want the durability provided by metal roofs. These homeowners are generally married and between 25 and 54 years of age. They tend to live in suburban neighborhoods, and most subscribe to lifestyle magazines. If you were interpreting these results, you might suggest that the research firm:
conduct a follow-up analysis to determine if the segments it might choose would respond differently than other segments to its marketing strategy
Redbook magazine targets what it calls "Redbook jugglers," defined as 25- to 44-year-old women who must juggle family, husband, and job. According to a Redbook ad, "She's the product of the 'me generation,' the thirty-something woman who balances home, family, and career—more than any generation before her, she refuses to put her pleasures aside. She's old enough to know what she wants. And young enough to get it." This is an example of _____ segmentation.
demographic and psychographic
Marketers use _____ to segment markets because this information is widely available, and factors such as age or gender are often related to consumer purchasing and consumption behavior.
demographics
The purpose of market segmentation is to:
enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups
In Miami, several radio stations broadcast in Spanish and play Latin music for the Hispanic people living in South Florida. The radio stations are using _____ segmentation.
ethnic
Johnson Publishing Company, the world's largest African American-owned publishing company and home of Ebony magazine, has forged an alliance with Dan River, Inc. to create luxury bed and bath products for the newly developed Ebony Home brand. This brand will use the strong relationship the publisher has with the African American market to sell the brand. What form of demographic segmentation will be used to market the Ebony Home brand?
ethnic
The Belly Cast kit by Proud Body helps an expectant mom to make a cast of her pregnant body, decorate it, and keep it for a lifetime. The primary market segment for the Belly Cast kit is:
expectant moms
A market segment is deemed to have substantiality if it contains a large number of potential customers.
false
A market segmentation study done by the University of Thessaly in Greece classified recreational skiers in terms of their gender, age, and income levels. The study used psychographic segmentation variables.
false
A segmentation plan must produce segments that exhibit responsiveness, which means all segments respond similarly to a marketing mix.
false
Clorox describes individuals who buy lots of cleaning products as heavy users. This is an example of how companies use benefit segmentation.
false
Consumers' perceptions regarding a product's position cannot be changed.
false
Fisher-Price developed a line of toys for infants in China. Babies make up the market for these products.
false
Increasing share of customer means getting more customers.
false
Marketers are realizing that the "one-size-fits-all" approach to marketing is still relevant.
false
One reason marketers use market segmentation as a tool is that once completed, the process need not be repeated
false
Procter & Gamble markets six different brands of laundry detergent, such as Tide, Era, Gain, and Dreft, each targeting a different market segment. This is an example of concentrated targeting.
false
The business market consists of four broad segments: producers, resellers, government, and regions.
false
The first step in segmenting a market is to choose a basis or bases for segmenting the markets.
false
Jane graduated from high school in 1978, is married, and has two teenage children. Most of Jane's friends from high school have children who have already graduated from college and gotten married, and some have grandchildren. Jane and her former classmates are at different stages of the:
family life cycle
Modern Bride is a publication that contains articles and lots of ads for the bride-to-be. Many young women consult this magazine as they plan their special day. The segmentation base used to define the publication's target market is based on _____ variables.
family life cycle
H&M plans to open a new store in Saudi Arabia. It will be staffed completely by women. Saudi Arabia has strict laws about women interacting with men other than their husbands, so only women will be permitted to shop there. Which type of demographic segmentation is H&M using?
gender
Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife Gets Home. It is an advice book for new fathers. What demographic variables have been used to define the market for this book?
gender and family life cycle stage
In Baton Rouge, Louisiana, everyone who is anybody in society can't wait to get a copy of 225 magazine. The magazine is targeted to the upper middle and upper classes in Baton Rouge and features articles on how they work and play. The editor of 225 magazine is relying on _____ segmentation.
geodemographic
Kraft Foods plans to tailor different ads for different neighborhoods in the same region. For example, viewers watching a cable show in a Hispanic neighborhood in Chicago would see different ads during the same commercial breaks as non-Hispanics living in a different neighborhood. Kraft's strategy best exemplifies _____ segmentation.
geodemographic
_____ is a method that clusters potential customers into neighborhood lifestyle categories and is a combination of geographic, demographic, and lifestyle segmentations.
geodemographic segmentation
A manufacturer of blankets knows heavy 100 percent wool blankets sell better in the New England area where the winters are harsh and that lighter-weight blankets sell better in the Southeast market where mild winters require fewer and lighter covers for the bed. Segmenting the market according to climate is an example of _____ segmentation.
geographic
Almost all cell phones sold in the United States are black or gray. Almost all cell phones sold in Europe are colorful, and very few black phones are sold. A cell phone manufacturer knowing this information could use _____ segmentation when selling its phones internationally.
geographic
Consumers in Louisiana love hot sauce, and Tabasco and Crystal brands are particularly popular there. Consumers in Michigan do not like hot food, so they purchase very little hot sauce. A national chain of grocery stores would likely use _____ segmentation when stocking condiment merchandise.
geographic
The Coca-Cola Company has over 450 brands in over 195 countries. According to their Web site, their products range from Samurai, an energy drink available in Asia to Vita, an African juice drink. It uses _____ segmentation in this marketing strategy.
geographic
_____ is the segmenting of markets based on the region of the country or the world, market size, market density (number of people within a certain unit of land), or climate.
geographic segmentation
Market segmentation can assist marketers to do all of the following except:
identify which variable base should be used for segmenting
The marketing researcher for Pooch Party, a manufacturer of toys for dogs, has noticed an increased trend in pet owners dressing their dogs in clothing. The researcher thinks there is a market for designer clothing for small- and medium-sized dogs, but he's not sure if the segment is substantial. In this case, substantiality means the segment:
is large enough to permit a profitable market effort toward its members
Home Cookin' Catering would like to improve customer satisfaction and increase repeat business. When you ask the owners to describe a typical customer, they say it is impossible and explain that with corporate functions, family affairs, and fund-raisers, they do not have a typical customer. You suggest it is time for market segmentation because:
it will enable them to build an accurate description of customer needs by group and to design a marketing mix to fit each segment
_____ divides individuals into groups according to the way they spend their time, the importance of items in their surroundings, their beliefs, and socioeconomic characteristics.
lifestyle segmentation
A _____ is a group of people or organizations that has wants and needs that can be satisfied by particular product categories, has the ability to purchase these products, and is willing to exchange resources for the products.
market
A(n) _____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have similar product needs.
market segment
Ford Motor Company produces passenger cars, commercial trucks and specialty vehicles, performance vehicles, and race cars. Ford uses a procedure called _____ to divide its large market.
market segmentation
_____ is the process of dividing a market into meaningful groups that are relatively similar and identifiable.
market segmentation
The James Hardie Siding Company sells concrete siding. It was having little luck targeting contractors because concrete siding is difficult to install and shows every flaw if a house is incorrectly framed. So Hardie decided to target homeowners who wanted the security of knowing their siding was guaranteed not to rot or crack for 50 years. In terms of psychographic segmentation, the siding company used the _____ variable.
motives
A market is people or organizations that have:
needs and wants and an ability and willingness to buy
A Small World is a nonprofit retail store that sells gift items made by artisans from over 30 different countries. This store provides employment to craftspeople in developing nations and markets their handiwork at a fair price. The store defines its market segment as people who believe in helping others and who feel good about helping others whenever possible. The store uses _____ segmentation.
psychographic
Magazines like Martha Stewart Living, Better Homes & Gardens, and other magazines targeted to people who are interested in improving their personal spaces rely on _____ segmentation.
psychographic
NASCAR racing fans are some of the most diverse and loyal fans in the world. They will stand in the pouring rain, the freezing cold, or the blistering heat for hours to shake the hand and get the autograph of a NASCAR driver. These fans are not concentrated in any one area but are dispersed throughout the United States. A Web site designed to market NASCAR memorabilia would be most likely to be successful if it used _____ segmentation to determine its target market.
psychographic
Wine Spectator is a magazine that targets people who appreciate good wine and food. However, the discriminating reader of this magazine is also interested in travel and health, so the magazine features travel and health-related stories. This publication relies on _____ variables to identify its target market.
psychographic
A health club has a new fitness program for expectant mothers. After flyers were placed at the offices of area obstetricians, classes filled up within two days. Which segmentation success criterion was most influential in the success of this promotion?
responsiveness
Altria Group, Inc.'s Phillip Morris failed at another attempt to target Americans looking for a potentially safer cigarette. This market exhibits a lack of:
responsiveness
If a market segment is especially motivated by coupons in newspapers, which segmentation success criterion is most influential in the success of this program?
responsiveness
Military Spouses is the only publication in the world that targets readers who are "married to the military." Its content reflects the unique set of challenges, hardships, and rewards to those whose spouses are in the military. The marital status that has been used to distinguish the market for this magazine is an example of a(n):
segmentation base
According to the criterion of _____, a selected segment must be large enough to warrant developing and maintaining a special marketing mix. Serving the specific needs of this segment must be commercially viable, even if the number of potential customers is small.
substantiality
Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife Gets Home. It is an advice book for new fathers. The market for this book is based on demographics.
true
Company characteristics, such as geographic location, type of company, company size, and product use, can be important segmentation variables.
true
Dakin Farms in Vermont uses mass marketing. Marketers would call the strategy an undifferentiated targeting strategy.
true
Fisher-Price is identifying Asian markets that are interested in their line of talking toys. Fisher-Price is engaged in the process of market segmentation.
true
Geodemographic segmentation combines geographic, demographic, and lifestyle segmentations
true
Geography, psychographics, and benefits sought are examples of possible segmentation variables used by marketers.
true
In market segmentation, individual psychographic variables can be combined with other variables to provide more detailed descriptions of market segments.
true
Niche marketing is a form of concentrated targeting.
true
Product differentiation is a positioning strategy.
true
The 80/20 principle implies that the majority of all demand is due to a minority of the customers.
true
The public transportation system in the San Francisco area conducted a survey that revealed respondents could be assigned to one of four categories: (1) people who never utilized mass transit, (2) people who utilized mass transit in the past but not now, (3) people who utilized mass transit occasionally, and (4) people who utilized mass transit regularly. These groups have significantly different perceptions about transportation alternatives. This is an example of _____ segmentation.
usage-rate
Which type of segmentation divides a market by the amount of product bought or consumed?
usage-rate segmentation
Which of the following businesses would be most likely to use family life cycle segmentation?
wedding planners, couples-only resorts, and day care centers
