Ch 9 SmartBook-Segementation, Targeting, Positioning

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

Behavioral

Which of the following are marketing segmentation approaches? (Choose every correct answer.) Collaborative Benefit Psychographic User Geographic

Benefit Psychographic Geographic

When marketers combine segmentation methods, which approaches do they typically use to design a product or service? (Choose every correct answer.) Benefits Lifestyles Geography Demographics

Benefits Lifestyles

A perceptual map is used in developing a positioning strategy in order to display the position of the products or brands in the Blank______ mind. brand marketer's competitor's retailer's consumer's

consumer's

The component of segmentation that is determined by how we live our lives to achieve goals is called Blank______. self-image lifestyle value self-worth

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 Blank______segmentation and investing in initiatives to retain their most profitable customers. occasion benefit usage loyalty

loyalty

The process of dividing the market into groups of customers who have different needs, wants, or characteristics is called Blank______. market positioning customer marketing market segmentation target marketing

market segmentation

The overriding desires that drive how a person lives his or her life are ______. self-perceptions mile markers lifestyles self-values

self-values

Because each segmentation method has its unique advantages and disadvantages, most firms often employ Blank______ methods. multiple individual basic simple

multiple

Another term for self-concept is Blank______. self-reflection self-image self-selection self-awareness

self-image

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

single

Place the steps in the segmentation, targeting, and positioning process in their conventional order, with the first step at the top.

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

Firms position products based on which of the following? (Choose every correct answer.) Psychographics Demographics Symbols Salient attributes Value

Symbols Salient attributes Value

What analytical method does a firm typically employ to assess the target market and its own competencies? Target market buying power analysis Profit and loss analysis SWOT analysis Ratio analysis

SWOT analysis

______ is the image people ideally have of themselves. Self-selection Lifestyle Self-concept Self-value

Self-concept

Which of the following is an example of occasion segmentation for a chocolate maker? The company sells white, milk, and dark chocolate to serve different taste preferences. The company prices its chocolates differently in different geographic areas. The company sells both regular and sugar-free chocolate. The company offers some of its chocolates in heart-shaped boxes for Valentine's Day.

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

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

Undifferentiated

Which of the following is an example of geographic segmentation? A razor blade manufacturer sends samples of its products to 14-year-old males. A diaper company sends direct mailers to individuals or couples that have recently had children. A ski and snowboard equipment manufacturer markets its goods in states that have snowy mountains and ski resorts. A solar panel installation company targets its web advertisements to individuals who have expressed an interest in environmental friendliness.

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

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? Loyalty Behavioral Benefit Demographic Occasion

Behavioral

What type of segmentation categorizes consumers on the basis of the outcomes they hope to derive from a product or service? Behavioral Geodemographic Benefit Psychographic

Benefit

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

Concentrated

When marketers seek to evaluate market attractiveness, what must they do first? Secure a marketing communications license Develop a perceptual map Develop a positioning strategy Determine whether the segment is worth pursuing

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? Undifferentiated Concentrated Differentiated Micromarketing

Differentiated

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

Differentiated

Which of the following steps are part of the segmentation, targeting, and positioning process? (Choose every correct answer.) Establish strategy or objectives Develop the marketing plan Selecting target market Increasing benefits Evaluating segment attractiveness

Establish strategy or objectives Selecting target market Evaluating segment attractiveness

What does the value proposition do for marketers? It communicates the customer benefits provided by a product or service. It describes the target market. It details the marketing mix. It assesses the attractiveness of the target segment.

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

When establishing its overall segmentation strategy or objectives, what must the firm keep in mind? (Choose every correct answer.) Its target market Its past performance Its current situation Its mission and objectives

Its current situation Its mission and objectives

A florist designs bouquets for a bride and five attendants.

Micromarketing

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 Geographic Psychographic Loyalty

Occasion

What is used to display, in two or more dimensions, the positions of products or brands in the consumer's mind? Perceptual map VALS framework Ideal position Product graph

Perceptual map

Which of the following is NOT a market segmentation approach? Demographic Benefit Geographic Product Behavioral

Product

Which of the following are examples of self-values? (Choose every correct answer.) The need for self-indulgence The need for self-fulfillment The need for self-respect The need for a sense of belonging

The need for self-fulfillment The need for self-respect The need for a sense of belonging

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

True

Which situation represents an important marketing opportunity for creating new products or altering existing products? When customers are satisfied with only the firm's offerings When customer needs are not completely met When customers have little need or desire for the firm's offerings When customers' needs are met by the firm and its competitors

When customer needs are not completely met

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 Blank______segmentation. behavioral multiple psychographic occasion

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 Blank______ strategies. supply chain relationship sales communication

communication

Market positioning is done so that the target customers have an understanding of the product offered by the company in comparison with Blank______ products. compatible previous competing conceptual

competing

By selecting only senior women golfers as its target and focusing all of its efforts on making products that fit these women's needs, a firm is using a(n)_______ targeting marketing strategy.

concentrated

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

demographic

______ segmentation variables include age, income, and gender.

demographic

Psychographics is a segmentation method that delves into how consumers actually Blank______themselves. relate to spend money on describe position

describe

Firms using a(n) targeting strategy direct their efforts to several market segments with distinct brands and product offerings for each segment.

differentiated

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

geographic

Market differences across regions, states, or neighborhoods create opportunities for Blank______. psychographic segmentation geodemographic segmentation geographic segmentation concentrated segmentation

geographic segmentation

Market positioning involves a process of defining the marketing mix variables so that the target customers Blank______. know the ideal point of all products in the market are persuaded to seek additional product information have a clear, distinctive understanding of the product know the price of the product

have a clear, distinctive understanding of the product

Loyal customers buy a substantial amount from the firm. These loyal customers are the most Blank______ in the long term to the firm. heavy users profitable similar to each other successful

profitable

While some segmentation methods rely on external descriptions and factors to break down the market, Blank______ segmentation relies on consumers' descriptions of themselves. psychographic geo-demographic demographic benefit geographic

psychographic

After evaluating each market segment's attractiveness, the next step in the STP process is Blank______. beginning production negotiating with retailers contacting consumers selecting a target market

selecting a target market

Individuals in different segments should have Blank______ within the segment and Blank______ across the segments. targets; positioning similarities; familiarity similarities; differences differences; similarities

similarities; differences

Firms position their products based on methods such as Blank______. product, price, place, and promotion the value proposition, salient attributes, symbols, and competition demographics, geodemographics, psychographics, and benefits undifferentiated positioning, concentrated positioning, differentiated positioning, and micropositioning

the value proposition, salient attributes, symbols, and competition

The Blank______ 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). shareholder segmentation demographic accounting

segmentation

How does developing descriptions of each market segment help firms? (Choose every correct answer.) By identifying similarities within market segments By determining the most attractive market segments By identifying differences across market segments By revealing similarities across market segments

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

What marketing opportunities does a firm have when customer needs are unmet? (Choose every correct answer.) The opportunity to change customer needs The opportunity to create new products or services The opportunity to identify new market segments The opportunity to augment existing products or services

The opportunity to create new products or services The opportunity to augment existing products or services

After establishing overall objectives, why do marketers then use a particular method or combination thereof to identify and describe market segments? To articulate the vision of the marketing strategy clearly To validate preconceived notions of each market segment To eliminate less desirable consumers from the customer base To help understand the profile of each segment

To help understand the profile of each segment

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

True

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

True

Age, gender, and income are all examples of Blank______ segmentation variables. benefit demographic geographic psychographic

demographic

Marketers sometimes take into account that as people age, their needs change. This is an example of Blank______ segmentation. geographic demographic psychographic benefit

demographic

It is important to ensure that segments are distinct from one another because too much overlap between segments means that Blank______. the target market segment is probably too large the target market segment is definitely too small there is always a need to have many diverse market segments targeted distinct marketing strategies are not necessary to meet segment members' needs

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 Blank______ segmentation. benefit behavioral demographic psychographic geodemographic

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 Blank______segmentation. geodemographic benefit behavioral regional

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 Blank______ segmentation. geographic psychographic benefit demographic

geographic

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 Blank______ segmentation. loyalty occasion reachable demographic

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

When a firm sells products that meet the needs of many kinds of customers, it will most likely use a(n) Blank______ targeting strategy because there is little need to formulate different strategies for different groups. differentiated one-to-one concentrated undifferentiated

undifferentiated

When everyone is considered a potential user of its product, a firm should use a(n) Blank______targeting strategy. concentrated undifferentiated micro-marketing specialized

undifferentiated

The Blank______ communicates the customer benefits to be received from a product or service—in other words, why a customer should purchase the product. segmentation strategy micromarketing strategy targeting strategy value proposition

value proposition