Marketing Chapter 9

Estee Foods has succeeded in the highly competitive candy market by focusing on sugar-free sweets that meet the needs of people on strict sugar-free diets, like diabetics. Estee practices which of the following strategies for reaching its target market?

Concentrated marketing

Procter and Gamble is seeking to target women aged 18 to 34 to influence their purchasing of shampoo and bath gels. They selected the television network ABC Family and specifically airs commercials during the "Pretty Little Liars" time slot. Which criteria of effective segmentation is Procter and Gamble utilizing?

Ability to effectively promote to the market segment

While totaling your quarterly receipts for your business, The Breakfast Bar, you note that a sizable amount of your revenue comes from selling packaged coffee beans to regular customers who come in every day for an extra-large cup of coffee togo. Your plan for the next quarter is to promote your selection of fresh roasted beans with a buy one, get one half off incentive to encourage these customers to purchase more and/or try something new. Which segmentation approach are you employing to bolster sales for the next quarter?

Behavioral

Based on sales reports and customer feedback, you have mapped five brands of toothpaste marketed by your company so that you can get a visual of how each rates with the public. Based on the positioning descriptions below, which brand is considered by consumers as the best overall value? Brand A: Low Price; Low Quality. Brand B: High Price; High Quality. Brand C: Moderate Price; Moderate Quality. Brand D: Moderate Price; High Quality. Brand E: High Price; Low Quality.

Brand D

In your regular goods and services consumption activities, you purchase products from the wholesaler for resale and for use in your store's daily operations. You also purchase products that you will feature in the gift baskets you make. On the basis of this information, which of the following best describes the market component you are part of?

Business

Jacob is the facility manager for a senior living facility and is responsible for maintaining the facility and ensuring that it looks its best. He likes to repaint all surfaces in the facility every two years and has an exclusive contract with Sherwin Williams who supplies the paint and materials. The paint and materials that Jacob purchases from Sherwin Williams to be utilized in the senior living facility would be classified as _____ products.

Business

Making soap has been your hobby for some time, but now you are contemplating turning your hobby into a small business. You use only hypoallergenic ingredients in your small batch soaps. Now sales come by word of mouth, but you plan to promote your handmade goods and sell them on one or more online outlets to people who are sensitive to the cleaning agents used in mass market soaps. Which marketing strategy will fit your newly established business? Select the best answer.

Concentrated marketing, because you will concentrate on meeting the needs of a single market segment.

Your large retail store sells power tools and construction supplies, and your customer base is made up primarily of home improvement contractors, subcontractors, and serious DIYers. But business has stagnated now that the housing market has seen a downturn. What can you do to boost your sales and keep your business solvent?

Consider marketing to a segment that meets the criteria for effective segmentation.

The Fortune at the Bottom of the Pyramid is a book presenting an interesting argument - that emerging economies have 4 billion residents that struggle to live on a very minimal income, but even making a tiny profit off of sales of this volume can be a financial windfall. With a market of this size, there is certainly vast potential. However, the cost structure, product mix, and distribution system of U.S. firms has not proven to be well suited to provide the low cost goods and services this market needs. Overall, The Fortune at the Bottom of the Pyramid has not worked out for U.S. companies because of which of the key criteria for successful market segmentation? This segment is not:

Consistent with the U.S. firms' marketing capabilities

Recently a new product named Powerful Yogurt was introduced in the United States. This product is targeted toward men who often view yogurt as only for women. In fact, Powerful Yogurt is being referred to as "Brogurt" to emphasize its manliness. Powerful Yogurt is using:

Demographic segmentation

_____ defines consumer groups according to variables such as gender, age, income, occupation, education, sexual orientation, household size, and stage in the family lifecycle.

Demographic segmentation

Cody stopped by Ferrari of Beverly Hills to look at the new Ferrari 488 Spider that just came in. Cody is obsessed with cars and would love to buy the 488, but there is a slight problem. Cody is a full-time student in his senior year of college and works part time at Olive Garden where he earns $7.75 an hour. The new 488 is listed for sale for $429,000! Cody really should not be considered part of the market for the Ferrari because he:

Does not have the purchasing power

Two demographic variables used when segmenting consumer markets are segmenting by age and segmenting by stage in the life cycle. Which of the following situations does not illustrate segmenting by age?

Flat-pack furniture is marketed as inexpensive and easily portable.

As a marketer, you have many different tools at your disposal to gather the information necessary to develop targeted marketing programs. One of those tools is psychographic segmentation. Select the type of information below that cannot be gathered using psychographic variables.

I want to know how many children under the age of 18 live in the households of my target market.

Purchases by ______ are classified as business products because they are used to produce other goods and services for resale.

Manufacturers

You turned on your tablet to read an online article about a Texas-based furniture retailer that reported its first gain in same-store sales in almost two years. The gains were realized in foldable tables and convertible sofas, areas specifically targeted for improvement and often preferred by apartment dwellers with limited space. The company attributes its success to having moved its stores from rural and suburban communities into Dallas-Ft. Worth, 1 of the 10 largest metropolitan areas in the United States. What significant geographic variable or combination of variables is likeliest to be responsible for this retailer's success?

Market density.

Did you ever notice that there are many names for carbonated beverages? Consumers in different areas of the United States might call a carbonated soft drink soda, pop, soft drink, cold drink, or coke (in a generic sense that covers all carbonated beverages). Knowing this, marketers can change their terminology to suit the consumers. These differences show the importance of what type of geographic segmentation?

Market region

Almost everyone purchases laundry detergent. However, how do you choose the specific detergent to buy from all the options? For instance, Procter and Gamble's Tide brand is just one of many brands available. However Tide is actually 70 different products when the different PODS, liquid Tide, and powder Tide are considered. There are Tide brand detergents for very specific purposes - such as Tide Plus Febreeze Freshness Botanical Rain (HE) Turbo Clean liquid laundry detergent designed for those that want lasting odor protection and for use in high efficiency washing machines. It is clear that Procter and Gamble is using:

Market segmentation

Dell Computer offers a variety of desk top, tablet, and laptop computers. One popular product line is Dell's Alienware - built for gamers with high speed processors, enhanced memory and special graphics cards. What marketing principle is Dell utilizing with its Alienware product line?

Market segmentation

Market segmentation is used by marketers to develop the strategy they will use to present their product or service to the consumer. Select the statement below that best describes how market segmentation works.

Market segmentation groups consumers according to similarities and differences in reference to factors that influence purchase decisions.

As the marketer for a new electronics firm that produces a limited number of products, you recognize that consumers are not all cut from the same cloth—many variables exist in needs and preferences. But your company cannot change its products to suit each individual consumer preference. Select the statement below that does not accurately tell how market segmentation can help your company sell its goods.

Market segmentation will help your company identify product changes that will meet all consumer preferences and needs.

Marketers adopt different strategies in order to promote their products in the market. But what is a market? Select the best definition of market from the choices below:

People and organizations with purchasing power, authority, and willingness to buy goods and services

The same product purchased for _______ use by a retail customer may also be purchased by a manufacturer for resale, which makes it both a consumer and a business product.

Personal

Product positioning is about creating a mental image or perception of a brand, especially vis-à-vis competitive brands. How do you think of Ford and Chevrolet compared to Jaguar or Aston Martin? Or Walmart compared to Neiman Marcus? Or Rice Krispies compared to Shredded Wheat? These brands all have a certain space in your mind on different attributes. To help capture and illustrate this, marketers often use a:

Product use or application

The Fortune at the Bottom of the Pyramid is a book presenting an interesting argument - that emerging economies have 4 billion residents that struggle to live on a very minimal income, but even making a tiny profit off of sales of this volume can be a financial windfall. With a market of this size, there is certainly vast potential. Despite being very large and with high aggregate purchasing power the cost structure of serving this market has not been financially attractive to U.S. firms. Overall, The Fortune at the Bottom of the Pyramid has not worked out for U.S. companies because of which of the key criteria for successful market segmentation? This segment is not:

Profitable

Sustainability has become an important value among individuals in the United States and some believe that manmade factors such as the increased use of diesel and gasoline in cars has led to global warming. Those worried about global warming and seeking ways to reduce their carbon footprint and have invested in products such as solar panels for their homes and electric or hybrid vehicles. What type of segmentation would be most appropriate for Toyota to utilize in marketing its Prius - a hybrid vehicle?

Psychographic

A television commercial shows several enthusiastic teens smiling widely and speaking in turn directly to the camera. Using the featured skincare product has changed their lives! It costs more than what you find in the corner drugstore, but it is worth every penny! After weeks of trying one product after another, embarrassed by acne breakouts and shy about socializing with others, now they have clear faces with a healthy-looking glow! What form of product-related segmentation has driven the development of this marketing campaign?

Segmenting by benefits sought

XYZ Company defines its primary customer group based on demographic variables. To guide the development of its advertising, you were asked to write a description of the typical customer in that group. Just before submitting the assignment, you caught an error: one sentence is wrong because it references a variable that isn't demographic. Which sentence is wrong?

The XYZ consumer doesn't want to look her age.

Darren King owns a small printing company and uses reams of print paper every month. When he goes to the wholesaler to pick up his normal paper supply, he also sees that the supplier is selling remnants of colored construction paper. Darren purchases the colored construction paper for his children to use for school projects and to make art. Select the two statements below that correctly describe Darren's purchases.

The colored construction paper from the wholesaler is a consumer product because Darren's family will use it for personal projects. AND The supply of print paper from the wholesaler is a business product because Darren uses it to provide a service that he sells.

Which of the following is a basic requirement for effective market segmentation?

The market segment must present measurable purchasing power and size.

​You've started a business on your college campus to sell luxurious blue dorm room rugs with the college logo. You plan to target male freshmen who come from local towns, like the color blue, can afford luxury products, want rugs for their rooms, and are enthusiastic about boosting the school. You can easily and efficiently promote to all freshmen, including this segment, with Facebook and other social media tools. But your marketing professor cautions that you may be unable to meet certain criteria for effective segmentation. Which criteria does she cite?

The segment must be large enough to offer significant profit potential AND The segment must present measurable purchasing power and size

Which of the following positioning strategies is inaccurately described?

To succeed with value positioning, a company must offer the lowest price.

When the _______ consumer completes a transaction for personal use, it is considered a consumer product.

Ultimate

Uber offers its customers "the smartest way to get around." By stressing this notion and the ease and convenience of the Uber experience of getting one where they need to go, the organization is establishing its:

Value proposition

A basic distinction in types of markets is between markets that purchase the item for their own personal use and those that purchase the item for use either directly or indirectly in the production or distribution of other goods or services for resale. For example, when Logan stopped at the gas station to fill up his car before heading home for the weekend, they gas was for his personal use. However, when Brandon filled up his car with gas before a night of working as an Uber driver the gas was actually used to provide a service for sale. In this case, gas was:

a consumer product for Logan and a business product for Brandon.

Sunscreen sells better in Florida than in North Dakota, primarily because of the southern state's

climate

People who drink iced tea in Georgia and Alabama are more likely to sweeten the beverage than iced tea drinkers in Vermont and New Hampshire. This is an example of a(n) ________ difference that may be relevant to geographic segmentation based on ________.

cultural; region

Some people move away from urban areas because urban housing tends to be small and crowded. From a marketing perspective, this reflects the variable of

density

An undifferentiated marketing strategy:

is efficient from a production point of view.

Companies want to learn about consumer psychographic characteristics as these often relate directly to purchase activity. However, unlike demographic characteristics that are often observable or available through sources such as the census, psychographic information is more difficult to obtain. The most common method of gathering psychographic information is through:

large-scale surveys asking consumers to agree or disagree with a collection of statements describing various activities, interests, and opinions.

Often a ______ product serves as both a consumer product and a business product

single

Psychographic segmentation divides a population into groups based on:

their attitudes, values, and lifestyles.

Soft drink producers such as Pepsi make their products available to consumers in a variety of packages - 12 ounce cans, 20 ounce bottles, 1 liter bottles, and 2 liter bottles are just some examples. Of course, some consumers don't buy 2 liter bottles because the beverage can go flat before it is consumed. For other customers though, this is the preferred packaging. It seems Pepsi makes good use of _________ segmentation.

usage rate segmentation

Developing a relevant user profile is the first step in the market segmentation process. How are segment profiles used to identify the typical customer in each segment?​

​Segment profiles are used to describe similarities among members of a market segment, and to explain differences among members in separate market segments.

​Market segmentation has interested you ever since your first marketing course, and you want to work for the type of organization that uses this technique. This means you should avoid pursuing a job with:

​You could pursue a job with any of the above, since all would use market segmentation.