Mktg. 370 Ch. 9

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

demographic

age, gender, and income are all examples of ___________ segmentation variables

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

psychographics is a segmentation method that delves into how consumers actually ___________ themselves

describe

Ford Motor Company owns Ford, Mercury, and Volvo automotive brands, Ford Motor uses this variety of brands to pursue a _________ targeting strategy?

differentiated

Foster Design sells different types of clothing for men and women. to ensure the retail store locations contain the appropriate assortment of clothing for the area, the firm should use _____________ segmentation

geodemographic

marketing positioning involves a process of defining the marketing mix variables so that the target customers _____________

have a clear distinctive understanding of the product

which of the following are considered when using the Tapestry Segmentation system?

home value, education, age

a point where a market segment's desired product would be located on a perceptual map is called the ________ point

ideal

which of the following are criteria considered by marketers to evaluate whether or not a segment is worth pursuing

identifiable, profitable, reachable

one of the benefits of differentiated targeting strategy is that it allows the firm to _____________

obtain a bigger share of the market

individuals in different segments should have obvious _________ within the segment and greater _________ across the segments

similarities; differences

symbols are generally registered __________ that are legally protected by the companies that create them

trademarks

T or F: firms must be able to identify who is within their markets to be able to design products or services to meet customer needs

true

T or F: value is a popular positioning method because the relationship between value and quality is important to consumers

true

companies should convey a clear, distinctive, desirable understanding of what the product or services do or what they represent relative to competing products, in the minds of consumers in their _________ market

target

some ___________, such as the Nike swoosh, are so strong and well known that they help position the brand

symbols

firms position products based on which of the following

symbols, value, salient attributes

what analytical method does a firm typically employ to assess the target market in light of its own competencies?

SWOT analysis

________ 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

why might a start-up company benefit from selecting a concentrated targeting strategy?

a concentrated strategy is a more efficient use of limited resources

if a firm positions its product too closely to the competition, they risk _________

a trademark infringement lawsuit

ease of developing distribution channels and brand familiarity is also known as market ________

access

which of the following are ways in which firm commonly position themselves in the marketplace?

against a specific competitor, against an entire service classification, and against an entire product classification

firms that wish to change a product's positioning should be aware that it is _________

always a challenge to do so

breakfast food manufacturers have separated the market into many segments. Kellogg's makes several different types of breakfast cereal to _________ several very diverse segments

appeal to

the first step in the segmentation process is to ________ the vision or the objectives of the company's marketing strategy clearly

articulate

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

__________ 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

__________ segmentation groups consumers on the basis of the outcomes they seek and derive from the products or service, such as clothing, appliances, toothpaste, or paper towels

benefit

when customers visit Hewlett-Packard's website, they can choose from different options based on what type of customer they are and why they need a computer. this is an example of __________ segmentation

benefit

marketers ask consumers a series of questions about competitors' products in order to determine the competing products' __________ on consumers' perceptual maps

brand positions

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

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

company sells its chocolates in simple plastic bags, but also offers it in attractive boxes for gift giving

"Pork. The Other White Meat." is an advertising campaign that promoted pork as a white meat alternative to chicken or turkey. this is a positioning strategy that focuses on _____________

competition

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 __________ 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

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

which of the following are the Circles for a Successful Value Proposition?

customer needs and wants, benefits provided by competitors, benefits the company provides

firms using a ___________ 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 overlaps between segments means that __________

distinct marketing strategies are unnecessary to meet segment members' needs

a potential drawback to using psychographic segmentation is that it is a more ________ method than demographics to identify potential customers

expensive

T or F: once a firm selects a segmentation strategy, it should never be changed

false

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

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

grouping a market by country, region, or areas within a region is known as _________ segmentation

geographic

because each segmentation method has its unique advantages and disadvantages, most firms often employ _________ methods

multiple

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

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

what are the factors considered in the analysis of profitability of a market segment?

market access, market competitiveness, market growth

which of the following are key factors to keep in mind when marketers focus their assessments on the potential profitability of market segments, both currently and future

market competitiveness, market growth

which of the following is NOT a factor influencing the profitability of a segment over the lifetime of a typical customer relationship?

market growth rate

__________ is the process of creating a clear, distinctive, and desirable understanding of the consumer's mind relative to competing products

market positioning

the process of dividing the market into groups of customers who have different needs, wants, or characterized is called ___________. these groups of buyers might want products or services designed especially for them

market segmentation

compared to most available targeting strategies, differentiated targeting is _________

more expensive

VALS enables firms to identify target segments and their underlying __________

motivations

_______ segmentation is a 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

psychographics study how people _________ their time and the underlying psychology that determines their choices

occupy

which of the following is NOT a market segmentation approach

political

when using a perceptual map, a company should select a ___________ according to what the map segment it is targeting really want--or, put another way, near a segment's ideal point for a product

position

a well-known symbol can be used as a ________tool, distinguishing the brand from its competition

positioning

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

which of the main value components are contained in the value proposition "SportsAde offers serious athletes a great-tasting way to stay hydrated during exercise"

product/service category or concept, unique difference/benefits, target market

when assessing the attractiveness of a segment, marketing managers need to calculate the _________ from each segment, both current and future

profits

Daniel joined an outdoor activities club. he has begun to purchase many books about kayaking and rafting. Borders bookstore sends email promotions focusing on outdoor activities. this is an example of ____________ segmentation based on lifestyles

psychographic

VALS is the most widely used __________ segmentation tool

psychographic

despite different demographics, consumers may hold similar self-values and might perceive themselves to belong to a distinct group of people. to identify this segment, the marketing manager might use __________ segmentation

psychographic

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

which of the following is NOT one of the main components of a value proposition?

reach a large audience

one positioning strategy focuses on the product attributes that are most _________ to the target market

salient

for a _________ strategy to be successful, the customers in the group must react similarly and positively to the firm's offering

segmentation

what are the three components of the STP process?

segmentation, positioning, and targeting

Mcdonald's often targets families by shower families having a good time in its advertising. this appeals to a family's ___________

self-concept

_________ is the image people ideally have of themselves

self-concept

which of the following are examples of self-values

self-respect, self-fulfillment, sense of belonging

_______ 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-value

John is a supporter of environmental issues. He is constantly examining the "green" credentials of the products he purchases. John's purchasing behavior is a reflection of his _________

self-values

because consumers' tastes shift, markets are not _______ and competitors must therefore ________ those shifts

stagnant; react to

once the firm understands how its competitors' brands are viewed by the consumer, it should next __________

study how the competitors have positioned themselves

once a firm is able to identify the market and is able to design products or services to meet needs, the next step is to determine if the market size is __________

substantial

in the Circles for a Successful Value Proposition, the best situation for a firm is if:

the product or service overlaps with customer needs and wants, but not with competitor's offerings

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

to help firms understand the profile of each segment

a Caribbean resort wishes to identify customers that can afford and have the most interest in taking tropical vacations. using the VALS framework, the resort can develop a successful advertising campaign based on the ___________ of its target customers

underlying motivations

when a company sells commodities such as salt, sugar, or gasoline the firm might use a __________ 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 consumers, it may use a ________ targeting strategy because there is little need to formulate different strategies for different groups

undifferentiated

which of the following are targeting strategies

undifferentiated marketing, concentrated marketing, and micromarketing

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