MKTG 350 Ch 9 - Segmentation, Targeting, and Positioning

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

Evaluating segment attractiveness Establish strategy or objectives Selecting target market

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

When customer needs are not completely met

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

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

competing

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) _____ targeting marketing strategy.

concentrated

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

When Kellogg's introduced Special K, the marketing communications about the product were meant to primarily appeal to women. This is an example of ______ segmentation.

demographic

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

describe

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

differentiated

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

Perceptual map

What marketing opportunities does a firm have when customer needs are unmet?

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

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

Benefit

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

Benefits Lifestyles

How does developing descriptions of each market segment help firms?

By identifying similarities within market segments By identifying differences across market segments

True or False: Firms must be able to identify who is within their markets to be able to design products or services to meet customer needs.

True

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

True

Firms position products based on which of the following?

Value Symbols Salient attributes Competition

Methods for describing market segments

*Geographic- North America, Asia, Europe *Demographic- age, gender, income *Psychographic- lifestyle, self-concept, self-values *Benefits-Convenience, economy, prestige *Behavioral-Occasion, loyalty

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

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

Which of the following is an example of geographic segmentation?

A ski and snowboard equipment manufacturer markets its goods in states that have snowy mountains and ski resorts.

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

Behavioral

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

Determine whether the segment is worth pursuing

What does the value proposition do for marketers?

It communicates the customer benefits provided by a product or service.

When establishing its overall segmentation strategy or objectives, what must the firm keep in mind?

Its mission and objectives Its current situation

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

SWOT analysis

______ is the image people ideally have of themselves.

Self-concept

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.

Which of the following are examples of self-values?

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

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

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

True

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

attractiveness

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

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

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

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

It is important to ensure that segments are distinct from one another because too much overlap between segments means that

distinct marketing strategies are not necessary to meet segment members' needs

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 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

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

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

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

lifestyle

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

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

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

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 is a very specific form of behavioral segmentation by which segments are formed based on when a product or service is purchased or consumed.

occasional

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

profitable

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

psychographic

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

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

selecting a target market

Another term for self-concept is

self-image

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

self-values

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

similarities; differences

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

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.

undifferentiated

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

undifferentiated

The ______ communicates the customer benefits to be received from a product or service—in other words, why a customer should purchase the product.

value proposition