Chapter 9 Acc 370

Differentiated

Proctor and Gamble offers Pantene, Head and Shoulders, Aussie, and Wella shampoos. Undifferentiated Differentiated Concentrated Micromarketing

Describe

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

Evaluate segment attractiveness

During which step of the STP process do marketers ask whether the segment is identifiable, substantial, reachable, responsive, and profitable?

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.

Geodemographic

Esri's Tapestry is a widely used tool for _______ segmentation.

Salient attributes Symbols Value NOT Demographics or Psychographics because they are both segmentation methods

Firms position products based on which of the following? (Choose every correct answer.)

Geographic

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.

Micromarketing

Ms. Frankel knows each and every child who comes to her art program and prides herself on knowing how she can personally address each of their artistic strengths. What type of market coverage strategy is Ms. Frankel employing in her business?

Substantial and Profitable

Once the firm has identified its potential target markets, it needs to measure their size and growth potential. If a market is too small or its buying power is insignificant, it won't generate sufficient profits or be able to support marketing mix activities. You must focus your assessment on the potential profitability of each segment, both current and future. Key factors to keep in mind in this analysis include market growth (current size and expected growth rate), market competitiveness (number of competitors, entry barriers, product substitutes), and market access. Some straightforward calculations can help illustrate the profitability of a segment. Segment profitability = (Segment size x Segment adoption percentage x Purchase behaviour x Profit margin percentage) - Fixed costs. By identifying the attractiveness of each market segment in your marketing plan using a set of descriptive criteria, you are better able to choose the right target market and then develop an effective positioning strategy based on the target market you have chosen to pursue.

1. establish strategy/ objectives 2. use segmentation methods 3. evaluate segment attractiveness 4. select target market 5. Identify and develop positioning strategy

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

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

What marketing opportunities does a firm have when customer needs are unmet? (Choose every correct answer.)

Benefit

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

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

Undifferentiated

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

Concentrated

When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that market's needs it is using a(n) ________ targeting strategy.

Undifferentiated

Which targeting strategy? A firm produces basic commodities like sugar, milk, and packaged ice. Undifferentiated Differentiated Concentrated Micromarketing

Psychographic

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

Occasion

Behavioral segmentation based on when a product or service is purchased or consumed is called ________ segmentation.

Communication

Benefit segmentation is often effective because it is relatively easy to portray a product's or service's benefits in the firm's ______ strategies.

True

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

True

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

QUIZ

UNDER THIS

SWOT Analysis

What analytical method does a firm typically employ to assess the target market and its own competencies?

Perceptual Map

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

Occasion

A clothing company that offers a special line of maternity clothing for women to wear specifically during pregnancy engages in which form of segmentation?

Micromarketing

A florist designs bouquets for a bride and five attendants. Undifferentiated Differentiated Concentrated Micromarketing

Establishing overall strategy or objectives

A high-end women's clothing company is evaluating its overall mission, including its strengths, weaknesses, opportunities, and threats. It is engaged in which step of the segmentation, targeting, and positioning process?

Mass marketing

A manufacturer of hats concentrates all its efforts on cost containment by offering the product in only one size but in a variety of colors, using a one-size-fits-all approach. This involves a ________ targeting strategy.

Consumer's

A perceptual map is used in developing a positioning strategy in order to display the position of the products or brands in the ______ mind.

to help understand the profile of each segment

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

Selecting a target market

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

Self- Concept

After some preliminary research in 2000, Unilever's Dove soap brand initiated its Campaign for Real Beauty campaign. This tactic relates to women's

Demographic

Age, gender, and income are all examples of ______ segmentation variables.

Concentrated

An infomercial firm sells a gadget to better fry and flip eggs in cooking. Undifferentiated Differentiated Concentrated Micromarketing

Self-image

Another term for self-concept is ______.

Multiple

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

Micromarketing

Choice, A florist designs bouquets for a bride and five attendants. A florist designs bouquets for a bride and five attendants. Undifferentiated Differentiated Concentrated Micromarketing

Correct Answer: The value proposition, salient attributes, symbols, and competition NOT Demographics, geodemographics, psychographics, and benefits Reason: These are segmentation methods. NOT Product, price, place, and promotion Reason: These are the elements of the marketing mix. NOT Undifferentiated positioning, concentrated positioning, differentiated positioning, and micropositioning Reason: This refers to targeting strategies (undifferentiated, concentrated, differentiated, and micromarketing).

Firms position their products based on methods such as ______.

Differentiated

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

Responsive

For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to your firm's offering. Even if a segment meets all the other criteria for a successful segment, you should not pursue it if the market probably won't be responsive to your product due to the competitiveness in the market

Responsive

For segmentation strategy to be successful, the customers in the segment must react similarly and positively to firm's offering, corresponding to which of the following criteria for evaluating segment attractiveness?

Reachable

For the ________ criteria to be met when evaluating segment attractiveness, the consumer must know the product or service exists, understand what it can do for him or her, and recognize how to buy it.

Geodemographic

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.

Geographic

Grouping a market by country, region (northeast, southeast), or areas within a region is known as _________ SEGMENTATION

By identifying similarities within market segments By identifying differences across market segments Reason: Evaluating segment attractiveness is part of the targeting process, not segmentation.

How does developing descriptions of each market segment help firms? (Choose every correct answer.)

Differentiated

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?

Loyalty

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.

Similarities; differences

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

Psychographic

Jodi describes herself as having a strong need to belong to a group, which motivates her to seek out activities that involve others. Marketers would use this type of information when developing ________ segments.

Micromarketing

Lands' End allows customers buying shirts to choose from a variety of fabrics and types of collar and sleeve based on the customer's specific measurements, capitalizing on new technologies to mass customize its products and services. This is an example of

Differentiated

Large firms with multiple offerings in a particular product category engage in ________ targeting strategies to obtain a bigger share of the market, increase the overall market for the product categories they sell, and diversify their businesses.

Geographic

Lawn care products manufacturer Scotts has developed easy-to-follow, annual lawn care programs to help homeowners develop thick, green lawns that will combat weeds, insects, and diseases. The specific steps that must be used and their timing vary based on climate. What type of segmentation should Scotts use as the basis to design these programs?

Profitable

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

Geographic segmentation

Market differences across regions, states, or neighborhoods create opportunities for ______.

Profitable

Market growth, market competitiveness, and market access are all important factors in analyzing if a segmentation strategy is

CORRECT- Have a clear, distinctive understanding of the product NOT Are persuaded to seek additional product information Reason: Market position concerns understanding aspects of the product and competitive comparisons. The goal of consumer persuasion is an outcome of the process.

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

Competing

Market positioning is done so that the target customers have an understanding of the product offered by the company in comparison with ______ products.

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.

Behavioral Reason Not because Occasion segmentation falls under behavioral segmentation and involves the circumstances under which a consumer would use their product. Is Behavioral Reason: Specifically, it is an example of loyalty segmentation (a subset of behavioral segmentation).

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.

Answer is Behavioral Not Loyalty because Reason: This would be correct if consumers were segmented according to those who drank Coke products frequently and preferred Coke vs. those who do not. The question refers to soda in general, not Coke specifically. Behavioral Reason: Behavior includes how much of the product buyers consume regularly. Benefit Reason: This would be correct if consumers were segmented according to why they drink soda, such as to consume caffeine, for the flavor, or as part of a diet. Occasion Reason: This would be correct if customers were segmented according to the times when they tend to drink soda (with meals, at parties, for breakfast, etc.).

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?

Differentiated Marketing

The NFL targets several different market segments and designs separate clothing lines for men and women. This is an example of

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).

Ideal Point

The ________ indicates where a particular market segment's ideal product lies on the perceptual map.

Benefit

The ________ segmentation method is most closely related to providing value by satisfying customers' needs and wants.

Reachable

The best product or service cannot have any impact if that market is not easily accessible or reached through persuasive communications and product distribution. Consumers in the segment must be able to receive your marketing messages to know the product or service exists, understand what it can do for them, and recognize how to buy it.

Lifestyle

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

Self-Values

The overriding desires that drive how a person lives his or her life are ______.

Value proposition

The positioning strategy can help communicate the firm's or the product's ________, which communicates the customer benefits to be received from a product or service and thereby provides reasons for wanting to purchase it.

Market Segmentation

The process of dividing the market into groups of customers who have different needs, wants, or characteristics is called ______.

Identifiable

The publishing conglomerate Conde Nast is able to purchase mailing lists of people who have bridal interests, knowing that its Modern Bride magazine customers are somewhat distinct from those who subscribe to GQ. In terms of evaluating segment attractiveness, this is a way of ensuring the segment is

Attractiveness

The third step of the market segmentation process is to evaluate segment _________________, which is based on such criteria as its profitability, responsiveness, and reachability.

Positioning based on symbolism

Tony the Tiger is an example of which of the following positioning tools to create a position for the brand that distinguishes it from its competitors?

Its current situation Its mission and objectives

When establishing its overall segmentation strategy or objectives, what must the firm keep in mind? (Choose every correct answer.)

Undifferentiated

When everyone is considered a potential user of its product, a firm should use a(n) ______ targeting strategy.

Benefits Lifestyle Segmentation

When marketers combine segmentation methods, which approaches do they typically use to design a product or service? (Check all that apply.)

Determine whether the segment is worth pursuing

When marketers seek to evaluate market attractiveness, what must they do first?

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

Which of the following are examples of self-values? (Choose every correct answer.)

Psychographic Benefits Geographic

Which of the following are marketing segmentation approaches? (Check all that apply.)

Product

Which of the following is NOT a market segmentation approach?

product

Which of the following is NOT a market segmentation approach?

Ski, Snowboard manufactures makes goods where there is snow and mountains

Which of the following is an example of geographic segmentation?

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

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

Positioning based on product attributes

Which of the following positioning approaches was the focus of Subaru's objective to focus on safety and handling?

Establish strategy or objectives Evaluating segment attractiveness Selecting target market

Which of the following steps are part of the segmentation, targeting, and positioning process?

Self-value

Which of the following terms describes the overriding desires that drive how people live their lives?

When customer's needs are not completely met

Which situation represents an important marketing opportunity for creating new products or altering existing products?

Identifiable

Your firm must determine who is within your market to be able to design products or services to meet their needs. It is equally important to ensure that the segments are distinct from one another in terms of needs because too much overlap between segments means that distinct marketing strategies aren't necessary to meet segment members' needs.

Demographics

_ __________________ segmentation variables include age, income, and gender.

Self-concept

______ is the image people ideally have of themselves.

Behavioral

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

Perceptual Map

________ is a tool used to visually display how consumers perceive the position of products or brands in the market on different dimensions relative to competitors.

Psychographic

________ segmentation delves into how consumers actually describe themselves.

Occasion, Occasional, Ocassion, Ocasion, or Occassion

_________ 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.