MKT CH 9 STUDY GUIDE

Which of the following are examples of self-values?

Sense of belonging; self-respect; self-fufillment

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

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

differentiated

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

lifestyle

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

lifestyles; benefits

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

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

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

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

segmentation, targeting, and positioning

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

selecting a target market

______ is the image people ideally have of themselves.

self-concept

Another term for self-concept is ______.

self-image

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

describe

Which of the following steps are part of the segmentation, targeting, and positioning process? (Select all that apply.)

describing the segments; Identifying strategy or objectives; selecting target market

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

have a clear, distinctive understanding of the product

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

third

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

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

true

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

Which of the following are marketing segmentation approaches?

Benifits; Psychographic; collabrative

How does developing descriptions of each market segment help firms? (Select all that apply.)

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

The easiest market segments to reach are those that have been segmented using which approach?

Demographic segmentaion

What are the criteria used by marketers to evaluate whether a segment is worth pursuing or not?

Identifiable, substantial, reachable, responsive, profitable

Breakfast cereal manufacturers have separated the market into many segments. How does selecting a target market segment allow Kellogg's to maximize its chances of success in the cereal industry?

It allows the company to apply its specific competencies toward the most attractive market segment.

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

Perceptual map

Which of the following is NOT a market segmentation approach?

Political

Multiple Choice Question 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.

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

True

______ is a psychographic tool owned and operated by Strategic Business Insights (SBI) that classifies consumers into eight segments based on their answers to the questionnaire.

VALS

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

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

When a firm offers customers a loyalty card for car washes, the firm is employing a type of ________ segmantation

behavioral

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

behavioral

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

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'

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

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

Age, gender, and income are all examples of _______ segmentation variables

demographic

Demographic segmentation is the most common segmentation strategy because these segments are ____________.

easy to identify; easy to reach

True or false: Once a firm selects a segmentation strategy, it should never be changed.

false; Although the STP process makes it appear that the decision making is linear, a firm may modify its strategy as it gathers information about the segments' attractiveness

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

Market differences across continents create opportunities for ______.

geographic segmentation

a florist designs the bride's and five attendants' bouquets

micromarketing

VALS enables firms to identify target segments and their underlying ______.

motivations

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

multiple

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

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

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

occasion

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

profitable

VALS is the most widely used ______ segmentation tool.

psychographic

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

psychographic

______ 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

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

similarities; differences

The Gap clothing company has limited resources and must make efficient and effective decisions to focus its efforts on a specific portion of the market. The Gap would be advised to use ______ to narrow its focus on the segments that offer the best chance of success.

targeting

Firms position their products based on methods such as ______.

the value proposition, salient attributes, symbols, and competition

sugar, milk, packaged ice

undifferentiated

Firms position products based on which of the following? (Select all that apply.)

value; salient attributes; symbols, and competition