MKT 3013 Chapter 9

What marketing opportunities does a firm have when customer needs are unmet?

-Augment existing products or services -Create new products or services

How does developing descriptions of each market segment help firms?

-By identifying similarities within market segments -By identifying differences across market segments

What options does a firm have if customers express little need or desire for the firm's value proposition?

-Educate customers about the benefits of its product or service -Remove unappealing benefits from the product

Which of the following are marketing segmentation approaches?

-Geographic -Benefits -Psychographic

Which of the following steps are part of the segmentation, targeting, and positioning process?

-Identifying strategy or objectives -Selecting target market -Describing segments

Which of the following are targeting strategies?

-micromarketing -concentrated marketing -undifferentiated marketing

List the following in order of the segmentation, targeting, and positioning process, with the first step at the top.

1. Establish strategy or objectives 2. Describe segments 3. Evaluate segment attractiveness 4. Select target market 5. Identify and develop positioning strategy

undifferentiated

A firm produces basic commodities like sugar, milk, and packaged ice. A firm produces basic commodities like sugar, milk, and packaged ice.

micromarketing

A florist designs bouquets for a bride and five attendants.

Which of the following is an example of geographic segmentation?

A ski and snowboard equipment manufacturer markets its goods in states that have snowy mountains and ski resorts.

For which of the following companies would demographic segmentation be the least useful?

An athletic shoe manufacturer

concentrated

An infomercial firm sells a gadget to better fry and flip eggs in cooking. An infomercial firm sells a gadget to better fry and flip eggs in cooking.

Suppose that Coca-Cola were to divide its market up into segments based on the amount of soda consumers drink (heavy, medium, and occasional soda drinkers). What type of segmentation does this represent?

Behavioral

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

Behavioral

Why are successful brands unable to realize enduring success in meeting consumer demands?

Competitors will encroach on the firm's value proposition by copying important product or service attributes.

When marketers seek to evaluate market attractiveness, what must they do first?

Determine whether the segment is worth pursuing

If a handbag manufacturer offers three different purses (a budget-conscious version, a slightly higher-end version, and a luxury version) to three different target markets, which targeting strategy is it using?

Differentiated

Which of the following is NOT a targeting strategy?

Diffused

What does the value proposition do for marketers?

It communicates the customer benefits provided by a product or service.

A clothing company that offers a special line of maternity clothing for women to wear specifically during pregnancy engages in which form of segmentation?

Occasion

________ segmentation is a very specific form of behavioral segmentation by which segments are formed based on when a product or service is purchased or consumed.

Occasion

What is used to display, in two or more dimensions, the positions of products or brands in the consumer's mind?

Perceptual map

differentiated

Proctor and Gamble offers Pantene, Head and Shoulders, Aussie, and Wella shampoos

Sunrise foods has been developing a new line of meatless breakfast sandwiches. Sunrise has identified a market segment and, through the use of surveys and blind taste tests, has found that members of the segment react favorably to the new offerings. Which criterion for evaluating segment attractiveness does the segment meet?

Responsive

______ 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

Which of the following is an example of occasion segmentation for a chocolate maker?

The company offers some of its chocolates in heart-shaped boxes for Valentine's Day.

What does the size of a numbered circle on a perceptual map indicate?

The size of the target market

Why are psychographic market segments considered "self-selecting" groups?

They are grouped together based on factors that they choose rather than those they cannot control.

STP analysis occurs during which step of the marketing planning process?

Third

True or False: Firms must be able to identify who is within their markets to be able to design products or services to meet customer needs.

True

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

True

True or false: A firm assesses attractiveness of a target market and its own competencies using a SWOT analysis.

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

Southwest Airlines promotes its Rapid Rewards program to reward frequent flyers with benefits like free travel vouchers, priority seating, and premium beverages. This is an example of ______ segmentation.

behavioral

When a firm offers customers a loyalty card for car washes, the firm is employing loyalty segmentation, one of two common types of ________ segmentation.

behavioral

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

Market positioning is done so that the target customers have an understanding of the product offered by the company in comparison with ________ products.

competitors'

By selecting only senior women golfers as the target and focusing all efforts on products to fit their needs, a firm is using a(n) ________ 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

Age, gender, and income are all examples of ______ segmentation variables.

demographic

Marketers sometimes take into account that as people age their needs change. This is an example of ______ segmentation.

demographic

When Kellogg's introduced Special K, the marketing communications about the product were meant to primarily appeal to women. This is an example of ______ segmentation.

demographic

_________ segmentation variables include age, income, and gender.

demographic

Psychographics is a segmentation method that delves into how consumers actually ________ themselves.

describe

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 not necessary to meet segment members' needs

Foster Designs sells different types of clothing for men and women. To ensure the retail store locations contain the appropriate assortment of clothing for the typical customer living in the area, the firm should use ______ segmentation.

geodemographic

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 (northeast, southeast), or areas within a region is known as ________ segmentation.

geographic

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

ideal

The component of segmentation that is determined by how we live our lives to achieve goals is called ______.

lifestyle

In light of the high costs associated with finding new customers who feel that a brand can meet their relevant needs and are willing to exclude competitors, today's companies are using "______ segmentation" and investing in initiatives to retain their most profitable customers.

loyalty

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

multiple

Ellie's Deli offers good sandwiches and fast service to its lunchtime customers from a nearby university. It also delivers the same sandwiches packaged with side dishes as part of its catering services. This is an example of ______ segmentation.

occasion

Psychographics study how people ______ their time and the underlying psychological factors that determine their choices.

occupy

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

profitable

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

psychographic

Persuasive communications and accurate product distribution are techniques used by firms to ______ market segments.

reach

Customers in the segment must react similarly and positively to the firm's offering. This quality is known as ______, which is an important element of successful segmentation.

responsiveness

The ________ strategy must be consistent with and derived from the firm's mission and objectives, as well as its current situation—its strengths, weaknesses, opportunities, and threats (SWOT).

segmentation

After evaluating each market segment's attractiveness, the next step in the STP process is ______.

selecting a target market

Another term for self-concept is ______.

self-image

Individuals in different segments should have obvious ______ within the segment and greater ______ across the segments.

similarities; differences

If a market is too ______ and its buying power ______, it won't generate sufficient profits or be able to support the marketing mix activities.

small; insignificant

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 its product, a firm should use a(n) ______ targeting strategy.

undifferentiated

Even if a firm has developed a product that addresses the needs of a specific, substantial market segment, its efforts will fail if the segment is ______.

unsegmented

A firm using a concentrated segmentation strategy selects a(n) ______ target market and focuses all its energies on providing a product to fit that market's needs.

single

What analytical method does a firm typically employ to assess the target market and its own competencies?

SWOT analysis

The maker of a line of protein shakes knows that its target market places a high value on the use of natural products, so the company's positioning strategy focuses on its use of organic, locally sourced ingredients. Which positioning method is the company using?

Salient attributes

______ is the image people ideally have of themselves.

Self-concept

Which of the following statements are true concerning micromarketing?

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

When establishing its overall segmentation strategy or objectives, what must the firm keep in mind?

-Its current situation -Its mission and objectives

When marketers combine segmentation methods, which approach(es) do they typically use to design the product or service rather than to target communications to their customers?

-Lifestyles -Benefits

Under which market situations would a firm be most likely to sustain a unique value proposition over the long term?

-Monopoly -Monopolistic competition

Firms position products based on which of the following?

-Salient attributes -Symbols -Value

Which of the following are examples of self-values?

-Sense of belonging -Self-fulfillment -Self-respect

Which of the following is NOT a market segmentation approach?

Political

A luxury car company that markets its products to consumers who have a strong need to project an image of power and success uses which method of market segmentation?

Psychographic

True or false: Value is a popular positioning method because the relationship between price and quality is important to consumers.

True

A dairy producer has determined that almost all grocery consumers are potential customers for its products. Which type of marketing strategy should the company use?

Undifferentiated

Which situation represents an important marketing opportunity to create new products or alter existing products?

When customer needs are not completely met

Based on the Circles for a Successful Value Proposition framework, when should a firm reengineer its product to stop providing certain benefits?

When customers express little need or desire for the benefits in question

What type of segmentation categorizes consumers on the basis of the outcomes they hope to derive from a product or service, such as clothing, appliances, toothpaste, or paper towels?

benefit

McDonald's promotes coffee in cold, rainy Seattle and seasonal seafood meals including lobster and crab in select markets like New England. This is an example of ______ segmentation.

geographic

Market differences across continents create opportunities for ______.

geographic segmentation

Market positioning involves a process of defining the marketing mix variables so that the target customers ______.

have a clear, distinctive understanding of the product

When a firm positions a product based on its salient attributes, it highlights features that are most ______ to the target market.

important

The process of dividing the market into groups of customers who have different needs, wants, or characteristics is called ______. These groups of buyers might want products or services designed especially for them.

market segmentation

When a firm adapts a product or service to meet an individual customer's wants or needs, it is undertaking an extreme targeting strategy called ______.

micromarketing

Sometimes, firms find it difficult to use demographics in their segmentation strategies. This is because in some cases demographics ______.

predict consumer wants and needs poorly

Value is a popular positioning method and is the most important consideration for consumers when they make a purchase decision based on ______.

price and quality

Daniel joined an outdoor activities club. He has begun to purchase many books about kayaking and rafting. Borders bookstore sends him email promotions focusing on outdoor activities. This is an example of ______ segmentation based on his lifestyle.

psychographic

A successful marketing plan requires identifying and evaluating opportunities by performing an STP analysis, which stands for ______.

segmentation, targeting, and positioning

Firms position their products based on methods such as ______.

the value proposition, salient attributes, symbols, and competition

After establishing overall objectives, why do marketers then use a particular method or combination thereof to identify and describe market segments?

to help understand the profile of each segment

When a company sells commodities such as salt, sugar, or gasoline the firm might use a(n) _____ strategy, although this strategy is becoming less common in an increasingly complex market.

undifferentiated

When firms sell products that meet the needs of many kinds of customers, it may use a(n) ____________ targeting strategy because there is little need to formulate different strategies for different groups.

undifferentiated

The ______ communicates the customer benefits to be received from a product or service—in other words, why a customer should purchase the product.

value proposition