Chapter 7: Smartbook
At the marketing staff meeting, Hillary reported that she felt the proposed target market had the required purchasing power to make it profitable for the company to sell there. Which criteria for effective segmentation is Hillary reporting on?
Measurable
When segmenting a B2B market, a company would be using a(n) __________ segmentation base when it wants to learn the size of an organization and the ownership structure within a company.
demographic
Of the three basic strategies for targeting markets, _____________ marketing focuses on products that meet a very specialized need.
niche
Family size and marital status are both examples of _______ segmentation.
demographic
When segmenting a B2B market, a company would be using a(n) ____________ segmentation base when it wants to learn the size of an organization and the ownership structure within a company.
demographic
Psychographic segmentation combines personality traits, the science of psychology and ______
demographics
The term mass affluent is used to describe
households that have between $100,000 and $250,000 in investable assets.
Individuals categorized as mass affluent have investable assets starting at _______.
100,000
Which of the following explains why social media can be a very attractive market segmentation tool to a company?
Social media requires minimal financial responsibility.
A marketer focusing on geographic market segmentation would consider which of the following aspects of the market?
Region
True or false: The category of American households known as mass affluents is one of the fastest growing segments in the United States.
True
Which strategy for targeting markets approaches the marketplace as one large segment?
Undifferentiated targeting
Which three of the following are basic strategies for targeting markets?
Undifferentiated targeting Niche marketing Differentiated targeting
As an international segmentation base, regional segmentation is used when a firm wants to
capitalize on the similarity in needs and wants extends across only the region.
Market segments refer to _______.
consumer groups
Stride Inc. is an athletic shoe-making company in the United States. It successfully sells the same range of shoes in all its international outlets and specifically targets young people. This is an example of
global segmentation.
A target market refers to a _______.
group of customers
SuperBrite is a brand of toothpaste. In its earlier campaign, SuperBrite was advertised as an effective whitening toothpaste. However, due to declining sales, its parent company has decided to rethink its marketing strategy. In its new campaign, SuperBrite is still portrayed as whitening toothpaste, but it also features a research study where other familiar brands in the market fail to make the grade. In this campaign, SuperBrite has tried to reposition
the competition.
________ consists of a succinct description of the core target market to which a product is directed and a compelling picture of how the firm wants that core market to view the product.
A positioning statement
A pen manufacturing company has designed a range of new pens by segmenting its consumers on the basis of gender and age. The strategy is has turned out to be ineffective for the company. From the information provided, it can be derived that the marketers have failed to make their segments
differentiable.
Al has run a pizza shop for ten years and decided six months ago to change his marketing tactic. Instead of marketing the same to all customers, Al has targeted those customers who like deep-dish pizza and those who like thin pizza. This is an example of _______.
market segmentation
As a targeting strategy, ______________ targeting works best with uniform products, like apples or bread because a company can develop a single marketing mix that satisfies all customers.
undifferentiated
Which of the following features would be the focus of global segmentation?
Common needs and wants
Which of the following positioning strategies can be used to highlight a firm's competitive advantage?
Price/quality relationship Attributes Application
According to the text, global segmentation usually results in market segments made up of _______
Those with access to the Internet Young people Those with more money to spend
A marketing mix strategy that works well in one market may be successful for other markets in the same segment, allowing the firm to __________ the marketing mix across segments.
standardize
Eileen is aware that there are several competitors who produce mountain bikes of the same value as her company. She has determined that her company's advantage lies in the fact that it is known for producing the bikes in an environmentally-friendly manufacturing plant and it uses this advantage in all of their marketing programs. Which positioning strategy is Eileen relying on as she defines her competitive advantage?
Attributes
Which of the following describes how B2B segmentation bases compare to segmentation bases targeted to consumers?
B2B segmentation uses some of the same bases, but they apply differently.
Which of the following are included among the four broad bases of market segmentation? (Check all that apply.)
Demographic Geographic Behavioral Psychographic
After Tonya's company tried to market its new line of imported textiles to a U.S.-based company, it learned that the company would never be able to purchase the textiles due to the size of the organization and complex buying processes. What aspect of B2B segmentation did Tonya's company fail to do?
Demographics
Paul works for a homebuilder. His company promotes four different home models that appeal to buyers at different price points. Which targeting strategy is Paul's company using?
Differentiated targeting
Since consumer needs and wants change constantly, which step of the positioning process should be under constant appraisal?
Evaluating feedback
Trisha is in the process of reviewing a survey of her company's customer base which shows how many have purchased products in the last six months and their reasons for purchasing them. Which step of the positioning process is Trisha demonstrating?
Evaluating feedback
When deciding how to position a product, the first step a marketer would take is to _______.
analyze the competitors' positions
A cereal manufacturer has different products for children and adults. It applies a different marketing strategy for each of these customer groups. Which segmentation base is the company using to divide its market in this case?
demographic
During the targeting process, a firm should take into account three important factors: growth potential, strategic fit and _______.
level of competition
Get-away Inc. is a vacation planning company. It provides various holiday packages, such as camping outdoors, adventure sports, island getaways, countryside wine tasting, cruises, and trekking, based on the vacation activities that its consumers prefer. Which of the following types of segmentation does this represent?
lifestyle
Sara's Flooring company is in competition with Tim's floors. Rather than reposition her floors, she has developed a campaign describing that Tim's company uses wood from underdeveloped countries that use child labor. This is an example of _____________ the compeition.
repositioning
A SWOT analysis would be useful when trying to determine the _______.
strategic fit of a target market
As the marketing director for the new product line of air conditioning systems, Chester is responsible for creating a statement which identifies the core target market to which the company wants to direct its efforts. He also needs to create a compelling picture of how his company wants the target market to view the air conditioning systems. Chester is responsible for developing a(n) _______.
positioning statement
Which of the international segmentation bases is the most specific and targeted?
Unique
The most commonly used psychographic segmentation tool is called the _______ framework
VALS
Which of the following are considered demographic segmentation variables?
Gender Income Age
Since most of his company's product line is sold in the western part of the United States, Jamal has allocated 75% of resources to warehouses in California, Arizona, and Oregon. Which aspect of B2B segmentation did Jamal use to make this determination?
Geographic
Which of the following segmentation bases do B2B firms generally use?
Geographic Behavioral Demographic
Kendra has targeted two distinct markets for her line of skin care cream. However, she knows that one of the markets already has four other companies promoting a similar product. Based on this information, she intends to promote her brand exclusively to the other target market. Kendra has made her decision based on which factor?
Level of competition
According to the text, repositioning typically involves changing which of the marketing elements?
Promotion Product
Many firms rely on the idea that 20% of heavy users account for _______ of total demand.
80%
Which statement characterizes market segmentation?
It helps firms design specific marketing strategies suited for specific market segments.
What initially caused the population of Louisiana to shift so dramatically that the state lost seats in the House of Representatives following the 2010 census?
Natural disaster
Which of the following can a B2B marketer learn through behavioral segmentation?
Purchasing patterns Technological orientation Supplier requirements
The snack food industry has introduced a wide variety of products in recent years in response to health-conscious consumers looking for a healthier snack option. Consumers can now find baked potato chips and low-fat crackers on the grocery store shelves. The snack food industry's response to changes in the marketplace represents the idea of _______.
Repositioning
When a company decides that a target market falls within the parameters established in the mission statement, it has established which factor of the targeting process?
Strategic fit
The text notes two market segments in which marketers should be aware of growing ethical concerns. Which of the following are included?
The elderly Children
While shopping for groceries on a family vacation, Stephanie noticed that the store carried several different flavors of her family's favorite snack chip that she had never seen in the store at home. This is evidence of _______________ targeting.
differentiated
Which of the following best represents current ethical concerns in targeting certain market segments?
Abercrombie and Fitch's campaign to sell sexualized clothing to the tween market
The VALS framework identifies which of these primary motivations?
Achievement Ideals Self-expression
Marketing analytics can provide what kind of data regarding target markets?
Age Lifestyle interests Gender
Jason has just opened a new store that sells athletic shoes. He has decided that his three main market segments include seasoned runners, high school athletes, and families with young children. Jason now needs to determine which of these groups will provide him with maximum sales. What process is Jason going through?
Targeting
____________ refers to the marketing process of evaluating each market segment and determining which one presents the most attractive opportunity to maximize sales
Targeting
Kelly has discovered that most of the customers at her ice cream shop are young mothers with pre-school age children. These demographic characteristics are an example of a segmentation _______.
base
When relying on psychographic segmentation the first thing a marketer would do is _____.
divide the market into groups based on the reason for the purchase
True or false: A firm should only be concerned with positioning a product when introducing a new product.
false
Compared to the U.S., data collection and classification in many other countries can be described as _______.
inconsistent
If the growth potential of a market segment is very limited, the attractiveness of that segment will be ________
low
__________ _____________ refers to the process of dividing a larger market into smaller groups based on meaningfully shared characteristics.
market segmentation
When the needs and wants of consumers only spreads across several countries, it is an example of __________ _____________. Firms will often use this when they want to capitalize on the financial savings of global segmentation but still adjust for local customs and culture.
regional segmentation
The groups of consumers that a marketer ends up with from the segmentation process are known as market _______.
segments
AirTran promotes the idea that consumers can view their schedules and ticketing services on the airline's Facebook page. In doing so, AirTran is utilizing the __________ ____________
social media
A marketing mix strategy that works well in one market may be successful for other markets in the same segment, allowing the firm to _______ the marketing mix across segments.
standardize
A target market can best be defined as
the group of customers toward which an organization has decided to direct its marketing efforts.
The U.S. Census Bureau administers an official census every _____ years which gives evidence to population shifts within the country.
years
Trisha has been invited to sell her line of jewelry at the local farmer's market. Before agreeing to this, she wants to know what percentage of attendees at the market are women. Which segmentation base is Trisha concerned with?
Demographic
True or false: A perceptual map is a tool to help marketers define the process of niche marketing.
False
True or false: You can create a successful marketing strategy no matter how defined your target market is.
False
Which of the following is a target marketing analytics tool?
Google Analytics
Barat, the marketing manager at Teelock Inc., is in the process of market positioning. He has finished analyzing competitors' positions. What should he do next?
He should clearly define the firm's competitive advantage.
Corinne owns a mountain climbing apparel shop in Denver and recently tried marketing her products in the Midwest. While she did sell a few products, she realized that she sells more in those areas of the country where mountain climbing is common. While she will still sell in the Midwest, she plans to focus her advertising campaigns in the mountain states. Which of the following did Corinne learn through market segmentation?
How to allocate her marketing resources to maximize profit
________ is the most commonly used psychographic segmentation tool that classifies adults into eight psychographic groups: Innovators, Thinkers, Believers, Achievers, Strivers, Experiencers, Makers, and Survivors.
VALS Framework
Robert works for a swim 'n surf manufacturer. His company is interested in understanding why its customers buy their products and how they use them. After his analysis, Robert has segmented the market into customers who are experienced water sports enthusiasts, those who want to achieve greatness in every possible sport, and those who want to encourage disabled children to get involved with water sports. Which psychographic segmentation tool did Robert most likely use to learn this?
VALS framework
Marketers should follow three major steps to decide how to best position their product. The first step is to
analyze competitors' positions.
A B2B marketer who segments the market based on purchasing patterns is using _______ segmentation.
behavioral
Business-to-business firms generally use three types of segmentation. What is one of them?
behavioral segmentation
Annie owns a donut shop next to a college campus. She knows that most of her customers will be college students and has decided to stay open until midnight rather than open early in the morning because she knows college students tend to stay up late. Annie is geographically segmenting her market based on _______.
customer convenience
Paul's family drove from Montana to Pennsylvania to visit his grandmother. Along the way, he noticed that a Jiffy Mart was located at almost every major exit. From his observation, Paul could say that Jiffy Mart is most likely geographically segmented based on _______.
customer convenience
Jason owns a home remodeling business and notices that more people are adding on to their homes in order to accommodate an elderly parent. He decides to focus his marketing efforts on that segment of the population. Jason is targeting his market based on the demographic variable of _______.
family size
Hillary knows she should concentrate on selling her line of beach shoes to states bordering the coastline. She is using _______________ segmentation to make this determination.
geographic
While consumers in New York might shop for long, wool winter coats, a consumer in Dallas would be more interested in a light jacket. This demonstrates the _______ segmentation base.
geographic
Typically, a segment will be more attractive if its growth potential is _______
high
Trevor is dividing his target market into groups based on the athletic interests they like to pursue and how often they buy new athletic shoes. Trevor is in the process of dividing the market based on the psychographic segmentation known as __________ segmentation
lifestyle
Serena's company sells shoes and boots to many international markets. In certain countries, the company is faced with charging higher prices for its products because the country places a higher tariff on imports. Based on this, Serena's company would want to _______ the marketing mix within this segment.
localize
Be Healthy, a vitamin manufacturer, has divided its huge consumer base into smaller groups based on age: children, adults, and the elderly. This is an example of
market segmentation.
Home Depot typically places its' stores in urban areas with a large population base. This would mean that Home Depot is geographically segmenting based on _______.
market size
The store development team advised its client that it should locate any new stores in areas with a population of at least 500,000, living within a 20-mile radius of the store. Which geographic indicator is the development team concerned with?
market size
____________ marketing involves targeting a large share of a small market segment.
niche
Collin's company determined that since it didn't have the government permits required to sell in Indonesia, potential distribution there would not be a possibility. These Indonesian distributors fail to meet the _______criteria associated with effective market segmentation.
accessible
Columbia Properties is in the business of building homes. It has acquired land large enough to make 10 large and 10 medium-sized homes in the suburbs of Portland, Oregon. Columbia Properties has also made the required arrangements with prospective investors for financial capital. However, the local authorities are not permitting Columbia Properties to build the large houses due to certain permit issues. In this case, Columbia Properties is unable to serve its customer segments because they are not
accessible.
When Abercrombie & Fitch expanded their clothing line to offer products to children still in elementary school, it was segmenting the market based on _______.
age
Which of the following is a demographic variable used in segmentation?
age
Of the following demographic characteristics, what are the two most commonly used by marketers simply because they are often the easiest to identify?
age, gender
Several years ago, Apple created a television advertising campaign that focused on "I'm a Mac, I'm a PC." These advertisements demonstrate how marketers sometime choose to reposition the _______.
competition
World Spice Salsa, a manufacturer of salsa, sells its product throughout the United States and all over the world. The company has developed region-specific salsas like Five Spice Salsa for its customers in China, saffron and cumin salsa for customers in India, and even red beans and rice salsa for its customers in New Orleans. World Spice Salsa has employed ________ segmentation in this case.
geographic
When a firm can identify a group of consumers with common needs and wants that span the entire globe, it demonstrates the idea of. ________ Segemenation
global
The three basic strategies for targeting markets include: undifferentiated targeting, differentiated targeting, and _________ ________
niche marketing
Uniquely, a successful lotion manufacturer, sells luxury lotions exclusively for women under the brands Uniquely Lavish, Uniquely Luxurious, and Uniquely Glorious. It has now added Uniquely Dignified to target a specialized segment of urban men who are particular about their grooming practices. The introduction of Uniquely Dignified represents
niche marketing.
Repositioning typically involves changing _______ or promotion.
product
When a company realizes it needs to reestablish its product line because the marketplace has changed, it must start the process of ______________
repositioning
The text details how McDonald's eventually removed the Angus burger from its menu because it discovered that people were not willing to pay for this more expensive product. From a marketing perspective, McDonald's failed to take into consideration _______.
strategic fit
In order for market segmentation to be effective, market segments must be large enough for a firm to make a profit by serving them. This means that segments must be
substantial
According to your text, when considering the age component of demographics, older consumers typically have which of these two things that more of younger consumers do not? (
time and money
True or false: The more intense the competition within a segment, the less attractive it is to marketers.
true
Which of the following exemplifies the idea of gender segmentation?
After targeting boys for more than 20 years, Lego introduced the Lego Friends line for girls.
If a business was targeting its new stores based on the largest MSAs within six states, that business would be most concerned with which aspect of the location of its stores?
Population
Jonathan Looney has relied on his personal five Ps to achieve success in his career. What does Jonathan say he relies on to prevent poor performance in his job?
Preparation
Jonathan Looney tells graduates that in order to achieve success, they should seek advice from those with more experience. In other words, they should be _______.
coachable
Trisha runs a natural foods store and wants to entice more customers to shop at her store. In order to do so, she created an app which creates an instant menu based on the items people put into their grocery cart. She hopes to make dinnertime easier which, in turn, will make more customers come into her store. Trisha is segmenting her market based on people's lifestyles which is an aspect of _______ segmentation.
psychographic
Ellen owns a floral business and has decided to focus on selling to brides-to-be. The brides-to-be are Ellen's _______.
target market
A marketer would rely on the _________ ___________ when trying to determine if an Achiever or Striver is more likely to buy the company's products.
VALS Framework
Because it is expensive and time-consuming, the text advises that _______ segmentation is considered the most difficult of all the segmentation strategies to use.
behavioral
While positioning can happen in a variety of ways, it always assumes that _______.
consumers compare goods and services on the basis of benefits
Market ____________ refers to the activities a company undertakes to create a certain perception of its product in the eyes of the target market.
positioning
In which of the following ways does market segmentation help marketers navigate the needs and wants of consumers? (Check all that apply.)
It helps define the needs and wants of consumers who are most interested in buying the product. It helps a company design specific marketing strategies for the characteristics of that segment. It helps a firm decide how to allocate marketing resources to maximize profit.
Which of the following accurately characterizes international market segmentation?
It is a very expensive process. Accessing psychographic information is difficult.
Which of the following are important considerations a company should take into account during the targeting process?
Level of competition Strategic fit Growth potential
If the women's clothing store, Ann Taylor, decided to promote a new clothing line that catered to female athletes, they would rely on which type of segmentation to divide their existing market into women who participate in sports and those who do not?
Lifestyle
A cookie company would not design a line of products for children under six months of age because they would not be able to eat a cookie. This is a simplistic example of which criteria for effective segmentation?
Substantial