Mid Term Ch 7

Firms should consider three important factors during the targeting process: growth potential, level of competition and market share.

False

Psychographic segmentation involves categorizing customers based on what they actually do with their goods and services.

False

Unique segmentation is used when the similarity in needs and wants only extends across the region or several countries.

False

Which statement best characterizes international market segmentation?

It is a challenging process to complete.

Compare the following marketing tactics and select the company whose tactic raises an ethical concern.

Juicy Couture targeting tweens with sexualized clothing

According to the 2010 U.S. Census, which is the only Southern state that lost seats in the House of Representatives due to population shifts out of the state?

Louisiana

Mobile, Alabama, is a free-standing area with a population of about 200,000. According to the U.S. Census Bureau, this is a(n)

Metropolitan Statistical Area.

Carlotta is a realtor selling high-end homes priced over $750,000. Before showing a property to prospective clients, Carlotta makes sure they are prequalified for a home loan commensurate with the price of the house. This pre-qualification is based mainly on the client's income, which is what type of segmentation variable?

demographic

Easy Street is a business that tutors high-school students who are preparing to take the SAT test as part of their college entrance requirements. Because it possesses a unique offering that is desirable to a specific market, Easy Street would most likely use what type of target market strategy?

niche marketing

Which factor is a demographic segmentation variable?

gender

Which is a description of a behavioral segmentation variable?

how often a product is used by the target market

Behavioral segmentation divides consumers according to

how they behave with or act towards products.

The VALS typology classifies the American adult population into eight distinctive subgroups based on their motivations and level of resources. The three primary motivations include

ideals, achievement, and self-expression.

Global segmentation usually results in market segments made up of young people, those that have money to spend, or those with access to the Internet.

True

Marketers can develop a perceptual map without the need for marketing research.

True

Regardless of what target marketing strategy firms use, they must keep in mind the growing ethical concerns around targeting some market segments, in particular children and older adults.

True

A U.S. home construction company wants to build homes just over the Canadian border for U.S. citizens, but Canada is banning most foreigners from buying homes in Canada for two years. Which market segment criterion is having the most impact on the company's plans?

accessible

What are the two most commonly used demographic variables used by marketers?

age and gender

Claritin, makers of allergy tablets, expanded its product line to include a chewable, fruit-flavored allergy tablet, specifically designed to be easy for children to take. For this product, Claritin is segmenting the market based on

age.

It has been Mei's dream to open a bakery, and while she has experience in making all types of baked goods, she always gets rave reviews for her hand-decorated cakes. So, rather than open a bakery that offers a wide variety of baked goods, Mei has decided to open a specialty cake shop to cater to that market only. This is an example of

market segmentation

Market segmentation produces relatively homogenous groups of consumers called

market segments.

American households that have between $100,000 and $250,000 in investable assets are one of the fastest growing segments in the United States and are referred to as

mass affluent.

The potential savings in developing and marketing the product is the major advantage of

an undifferentiated targeting strategy.

The first step marketers should take when deciding how best to position their product is to

analyze competitors' positions.

A retail chain is emailing only customers who have purchased from it three years in a row a "thank you for your business" coupon for 30% off. This promotional campaign is an example of _____Blank segmentation.

behavioral

According to your text, the segmentation base that is often the most difficult to use is _____Blank segmentation.

behavioral

According to the VALS framework, why different consumer groups exhibit different behaviors or why different consumer groups exhibit the same behaviors for different reasons is based on

motivation and resources.

Psychographic segmentation refers to the science of segmenting markets based on

psychology, demographics and personality traits.

In today's society, environmental safety has caused marketers to rethink their products. Now many products include some type of environmentally friendly packaging. These products are being marketed as safer for the environment because they are made from biodegradable materials. This is an example of

repositioning.

Which market segment criterion refers to the fact that segments must be large enough for the firm to make a profit by serving them?

substantial

A clothing company considered several variables when deciding where to direct its marketing efforts. It decided on older, male, outdoor enthusiasts with discretionary income. This represents the company's

target market.

Considered to be one of the most important sources of demographic information for marketers, _____Blank provides free information on data such as how households are segmented by race, education, age, and occupation.

the U.S. Census Bureau

Which is considered to be a behavioral segmentation variable?

usage rate

As a marketing activity, positioning assumes that consumers

will compare goods and services on the basis of benefits.

Firms that market the same product to multiple regions with different preferences may need to tweak the product to ensure that it meets a need unique to each segment. This represents what type of targeting strategy?

a differentiated marketing strategy

What is an important component in determining psychographic characteristics?

lifestyles