Chapter 9: Segmentation, Targeting, and Positioning - TTU HARPER-

Another term for self-concept is

self-image

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

similarities; differences

Place the steps in the segmentation, targeting, and positioning process in their conventional order, with the first step at the top. Instructions [Establish strategy or objectives] [Evaluate segment attractiveness] [Identify and develop positioning strategy] [Select target market] [Use segmentation methods]

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

What are the six positioning steps.

1. Determine consumers' perceptions and evaluations of the product or service in relation to competitors' 2. Identify the market's ideal points and size 3. Identify competitors' positions 4. Determine consumer preferences 5. Select the position 6. Monitor the positioning strategy

What is a perceptual map?

A perceptual map displays, in two or more dimensions, the position of products or brands in the consumer's mind.

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

TRUE

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

SWOT analysis

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

Select a target market

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

Self-Values

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

Single Reason: Individualized means targeted toward an individual; the concentrated segmentation strategy chooses a particular market.

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

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

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?

Behavioral Reason: Behavior includes how much of the product buyers consume regularly.

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 Segmentation

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

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.

Behavioral Segmentation Reason: Specifically, it is an example of loyalty segmentation (a subset of behavioral segmentation).

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

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

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 strategies

segmentation variables include age, income, and gender.

Demographic

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

Determine whether the segment is worth pursuing

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

DiFFERENTIATED TARGETING STRATEGY

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?

Differentiated

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

Evaluate segment attractiveness

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

Evaluating segment attractiveness Selecting target market Establish strategy or objectives

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 Segmentation

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

Geodemographic segmentation

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

Geographic Psychographic Benefit

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 Segmentation

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

Its current situation Its mission and objectives Reason: Firms select the target market later in the segmentation process

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

Life style

When marketers combine segmentation methods, which approaches do they typically use to design a product or service?

Lifestyles Benefits

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 Segmentation

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

Market Segmentation

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

Multiple methods

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 Segmentation

___ 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 Segmentation

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

Perceptual map

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

Psychographic

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

The correct answer is D. The value proposition, salient attributes, symbols, and competition A is wrong, reason: These are the elements of the marketing mix. B is wrong, reason: These are segmentation methods. C is wrong, reason: This refers to targeting strategies (undifferentiated, concentrated, differentiated, and micromarketing).

Which of the following are examples of self-values? he need for self-indulgence 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 The need for self-fulfillment

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 augment existing products or services 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

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

To help understand the profile of each segment

Drag and drop each of the following targeting strategies against their corresponding examples where such strategies can be employed. Undifferentiated Differentiated Concentrated Micromarketing An infomercial firm sells a gadget to better fry and flip eggs in cooking. A firm produces basic commodities like sugar, milk, and packaged ice. A florist designs bouquets for a bride and five attendants. Proctor and Gamble offer Pantene, Head and Shoulders, Aussie, and Wella shampoos.

Undifferentiated = A firm produces basic commodities like sugar, milk, and packaged ice. Differentiated = Proctor and Gamble offers Pantene, Head and Shoulders, Aussie, and Wella shampoos. Concentrated = An infomercial firm sells a gadget to better fry and flip eggs in cooking. Micromarketing = A florist designs bouquets for a bride and five attendants.

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

Undifferentiated Targeting strategy

What are ideal points on a perceptual map?

Where a particular market segment's ideal product would lie on the map.

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

benefit

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

competing products

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) ___ marketing strategy

concentrated targeting market strategy

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

Psychographics is a segmentation method that delves into how consumers actually____ themselves

describe themselves

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

geographic segmentation

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

have a clear, distinctive understanding of the product Reason: Market position concerns understanding aspects of the product and competitive comparisons. The goal of consumer persuasion is an outcome of the process.

When a firm tailors a product or service to suit an individual customer's wants or needs, it is undertaking an extreme form of segmentation called _____ or _____

micromarketing or one-to-one marketing

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

occasion segmentation

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

profitable

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).

segmentation