ch 9 MAR

List the steps of the segmenting and targeting process (put the first step on top).

1. group potential buyers into segments 2. group products to be sold into categories 3. develop a market-product grid and estimate the size of markets 4. select target markets 5. take marketing actions to reach target markets

Which product is the best example of multiple products directed at two or more distinct market segments?

Crest oral care products

When an organization produces only a single product and attempts to sell it to two or more market segments, it avoids which costs?

Developing and producing several versions of the product

Which two statements are true of product positioning?

It is in relation to competitive products. It exists in the mind of the consumer.

A product differentiation strategy should achieve which of the following?

It should help consumers perceive the product as being different and better than competing ones.

Which are specific segmentation strategies? (Select all that apply)

Multiple products and multiple markets One product and multiple markets Segments of one

When an organization produces only a single product and attempts to sell it to two or more different market segments, which costs may it incur?

When an organization produces only a single product and attempts to sell it to two or more different market segments, which costs may it incur?

What two questions should you answer affirmatively before you proceed with segmentation?

Would segmentation be worth doing? Is segmentation possible?

Differentiation positioning means that ______.

a product is positioned to operate in smaller, less-competitive niches

What criteria are used to select target markets? (Select all that apply)

amount of competition for the segment cost of reaching the segment expected growth of segment

What are the four bases used to segment consumer markets?

behavioral psychographic demographic geographic

Manufacturing a product only when there is an order from a customer is known as ______.

build to order

Mass customization is a step beyond a ________ strategy, because although the latter allows for good choice with quick delivery, it does not allow customers unlimited options for features.

build to order

The Ann Taylor chain of stores has a problem with ________ from its sister chain Ann Taylor LOFT, whose sales have surpassed the the original Ann Taylor stores and have made it harder for them to reach their target customers.

cannibalization

Product repositioning refers to ______.

changing the place an offering occupies in consumers' minds relative to competitive products.

A marketer has various groups to target but notices that the needs of the various segments aren't very different. What should the marketer do in this instance?

combine the various groups into fewer segments

Product positioning relies on _________ evaluations of a product's important attributes.

comsumers

In developing a positioning strategy, a perceptual map is used to display the position of the products or brands in the minds of ______.

consumers

What measurement represents the financial worth of a customer to a company over the course of their relationship?

customer lifetime value

What components are taken into consideration when calculating customer lifetime value? (Select all that apply)

customer usage rate customer loyalty the costs required to serve customers

Crest toothpaste markets its fruit flavored toothpaste to children, and its whitening toothpaste to adults. This is an example of ______ segmentation.

demographic

Steve Jobs' product matrix for Apple's computer products provided a segmentation strategy based on which two elements?

desktop and laptop computers consumer and professional sectors

After a marketer has identified a group with specific needs and benefits, the marketer should then ______.

develop specific marketing actions that will satisfy that groups' particular needs

When McDonald's offers healthy menu items in hopes of avoiding competition with Wendy's and Burger King, it uses ________ positioning.

differentiation

Synergies, in the context of segmentation, are ________ that can be achieved by focusing on horizontal or vertical lines within the market-product matrix.

efficiencies

Potential for increased profit and similarity of needs of potential buyers within a segment are criteria used to ______.

form market segments

What two outcomes result from effective market segmentation?

forming meaningful groupings identifying specific marketing mix actions

Frequent-flyer programs used by airlines focus on increasing the usage rate, and are an example of ______.

frequency marketing

Select the variables that are typically used in demographic segmentation. (Select all that apply)

gender marital status income

Dollar Rental Car, Avis, and Hertz compete directly on similar attributes in the same target market, with ________ positioning.

head to head

What are two approaches to product positioning?

head to head differentiation

Customer lifetime value is higher for ______.

heavy users

What is a variable used in psychographic segmentation?

lifestyle

The third step of the market segmentation process is to develop a(n) _________ grid and estimate the size of the markets.

market product

A firm wants to identify how each of its segments responds to each of its offerings in order to select which market to target. What tool would help the firm accomplish this task?

market product grid

A ________ is a framework to relate the market segments of potential buyers to products offered or potential marketing actions.

market-product grid

An eyeglass manufacturer produces all of the frames for its reading glasses and then inserts the eyeglass lens based on the different magnification needs of its customers. This is an example of ______.

mass customization

Tailoring goods or services to the tastes of individual customers on a high-volume scale is a segmentation strategy known as ______.

mass customization

Two specific segmentation strategies are to identify either (1) one product or (2) multiple products that can serve

multiple market segments

The increased customer value associated with ________ may take the form of more products, improved quality on existing ones, or lower prices.

organizational synergy

What analytical tool is used to display, in two dimensions, the locations of products or brands in the consumer's mind?

perceptual map

Select the variables that are typically used in psychographic segmentation. (Select all that apply)

peronality lifestyle

"For upscale American families who desire a carefree driving experience, Volvo is a premium-priced automobile that offers the utmost in safety and dependability," would best be described as a ______.

positioning statement

Which three factors should a marketer consider when forming market segments?

potential for increased profit simplicity and cost-effectiveness of assigning potential buyers to segments potential of a marketing action to reach a segment

A market-product grid shows the relationship of market segments either to products offered or to ______.

potential marketing actions by an organization

When Apple promotes a single product to all targeted segments, it uses _________ synergies.

product

Both of these types of synergies are available in business, but focusing on one may come at the expense of the other.

product marketing

The _________ strategy involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products.

product differentiation

In most segmentation situations, as is the case for Apple's computer products, ______.

product lines and market segments overlap

________ refers to the place a product occupies in the consumer's mind on important attributes relative to competitive products.

product positioning

Market segments are made up of ________ that are relatively similar to one another.

prospective buyers

Nielsen PRIZM uses ________ segmentation to classify market segments based on the belief that "birds of a feather flock together," with groups living near one another having similar interests and buying similar offerings.

psychographic

Personality traits, lifestyles, and needs of prospective customers provide the bases for _________ segmentation.

psychographic

In a weaker economy, some high-end brands may seek to become more attractive to additional customer segments. One way to do this is to __________ the brand.

reposition

If consumers' tastes shift, marketers may need to change how these consumers think about a product in a process known as ______.

repositioning

A business firm should ________ its markets so it can respond more effectively to the needs of its potential buyers, which should result in increased sales and profits.

segment

________ links the needs of buyers to the actions of marketers and should be done in such a way that it leads to increased sales and profitability.

segmentation

A market-product grid shows various product offerings and

segments of prospective buyers

Market size and compatibility with the organization's objectives and resources are two of the criteria used to ______.

select target markets

A mass customization strategy seeks to ______.

tailor products to individual customers on a high-volume scale

The final step of the segmentation process is to ______.

take marketing actions to reach the target markets

Ideally, a positioning statement should identify which three things?

the category of the firm that the product belongs to the target market and needs satisfied the product's unique benefits

The segmentation and targeting process should result in ______.

the development of an action plan in the form of a marketing program

The first step in positioning a product using a perceptual map is to identify ______.

the important attributes of the product

Each market segment consists of people who are relatively similar to each other in terms of ______.

their consumer behavior

When a firm's product is near a competitor's product on a perceptual map, these products have head-to-head positioning, meaning ______.

they compete on similar attributes in the same target market

When it comes to selecting target markets, the best product cannot be successful, no matter how large the target market is, if that segment is ______.

too expensive or impossible to reach

In what two ways are markets segmented based on behavioral segmentation?

usage rate product features

One main purpose of a perceptual mapping exercise is for the firm to see where competitors are positioned in the consumer's mind, and ______.

where the firm is in relation to the competition