Principles of Marketing CH 9, Principles of Marketing CH 9, Chapter 9 STP, Week 4, Marketing Chapter 9
Which of the following is NOT a market segmentation approach?
Political (segmentation includes: Benefits, Geographic, Consumption, Demographic)
Which of the following is NOT a market segmentation approach? Consumption Benefits Geographic Demographic Product
Product
A luxury car company that markets its products to consumers who have a strong need to project an image of power and success uses which method of market segmentation?
Psychographic
Which of the following are marketing segmentation approaches?
Psychographic Geographic Benefits
Which of the following are marketing segmentation approaches? (Choose every correct answer.) Benefits User Psychographic Geographic Collaborative
Psychographic Geographics Benefits
______ is the image people ideally have of themselves
Self-concept
______ is the image people ideally have of themselves.
Self-concept
Which of the following are examples of self-values? (Choose every correct answer.) Self-fulfillment Sense of belonging Self-respect Self-indulgence
Self-fulfillment Sense of belonging Self-respect
True or false: Value is a popular positioning method because the relationship between price and quality is important to consumers.
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 Lifestyles are the third component of people's psychographic makeup, are the way we live our lives to achieve goals.
Which situation represents an important marketing opportunity to create new products or alter existing products?
When customer needs are not completely met
Which of the following are examples of self-values?
Self-respect Self-fulfillment Sense of belonging
______ are goals for life, not just the goals one wants to accomplish in a day. They are the overriding desires that drive how a person lives his or her life.
Self-values
What does STP stand for?
Segmentation, Targeting, Positioning
A resort advertisement that contains images of groups having fun on the beach or lounging by the pool appeals to which component of psychographics?
Self-concept
Ford Motor Company owns Ford, Lincoln, Mercury, and Volvo automotive brands, each with vehicles appealing to market segments with different needs and lifestyle choices. Ford uses this variety of brands to pursue a(n) ______ targeting strategy.
differentiated
Estee Lauder has a brand portfolio with more than 25 brands in over 150 companies. Having a variety of brands allows Estee Lauder to ______.
increase the market for its products
VALS are
is a psychographic tool owned and operated by Strategic Business Insights (SBI) that classifies consumers into eight segments based on their answers to the questionnaire.
The component of segmentation that is determined by how we live our lives to achieve goals is called ______.
lifestyle
The process of dividing the market into groups of customers who have different needs, wants, or characteristics is called ______.
market segmentation
Psychographics study how people ______ their time and the underlying psychological factors that determine their choices.
occupy
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
______ segmentation forms market segments based on the way consumers use a product, such as more frequently or with greater loyalty. - Behavioral - Substantial - Life style - Benefit
- Behavioral
Which of the main value components are contained in the value proposition "SportsAde offers serious athletes a great-tasting way to stay hydrated during exercise"?
- Benefits - Target market - Brand
Which of the following are criteria considered by marketers to evaluate whether or not a segment is worth pursuing? (Select all that apply.)
- Profitable - Identifiable - Reachable
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.
What are the criteria used by marketers to evaluate whether a segment is worth pursuing or not?
Identifiable, substantial, reachable, responsive, profitable
When creating a perceptual map, what should a firm do after after it understands how customers view its brand relative to competitors'?
Identify competitors' positions
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
This segmentation variables include age, income, and gender.
demographic
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
____ segmentation variables include age, income, and gender.
demographic
_______ segmentation variables include age, income, and gender.
demographic
Psychographics is a segmentation method that delves into how consumers actually ______ themselves.
describe
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
A point where a market segment's desired product would be located on a perceptual map is called a(n) ______ point. (Remember to type only one word per blank.)
ideal
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
occasion
While some segmentation methods rely on external descriptions and factors to break down the market, ______ segmentation relies on consumers' descriptions of themselves.
psychographic
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
True or False: Lifestyles are a component of psychographic segmentation that describes how an individual lives his or her life to achieve goals.
true
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
Market differences across regions, states, or neighborhoods create opportunities for ______.
geographic segmentation
self-values are
goals for life, not just the goals one wants to accomplish in a day; a component of psychographics that refers to overriding desires that drive how a person lives his or her life
Firms position their products based on methods such as ______.
the value proposition, salient attributes, symbols, and competition
If a firm positions its product too closely to the competition, it risks ______.
trademark infringement lawsuits
Which of the following is NOT a market segmentation approach? - Demographic - Benefits - Geographic - Consumption - Political
- Political
What marketing opportunities does a firm have when customer needs are unmet?
- Augment existing products or services - Create new products or services
How do firms commonly position themselves in the marketplace when using a competition positioning method? (Select all that apply.)
- Against an entire service classification - Against an entire product classification - Against a specific competitor
For which of the following companies would demographic segmentation be the least useful? - A cosmetics company - An athletic shoe manufacturer - A beard oil producer - A discount club for retirees
- An athletic shoe manufacturer
When a company sells commodities such as salt, sugar, or gasoline the firm might use a(n) _____ strategy, although this strategy is becoming less common in an increasingly complex market. - undifferentiated - micromarketing - concentrated - differentiated - niche
- undifferentiated
When firms sell products that meet the needs of many kinds of customers, it may use a(n) ____________ targeting strategy because there is little need to formulate different strategies for different groups. - undifferentiated - one-to-one - concentrated - differentiated
- undifferentiated
The ______ communicates the customer benefits to be received from a product or service—in other words, why a customer should purchase the product. - micromarketing strategy - targeting strategy - value proposition - segmentation strategy
- value proposition
What is the correct order of the STP Process?
1) Establish strategy or objectives 2) describe segments 3) Evaluate segment attractiveness 4) Select a Target market 5) Identify and develop a positioning strategy
List the following in order of the segmentation, targeting, and positioning process, with the first step at the top.
1. Establish Strategy or Objective 2. Describe Segments 3. Evaluate Segment Attractiveness 4. Select Target Market 5. Identify and Develop positioning strategy
For which of the following companies would demographic segmentation be the least useful?
An athletic shoe manufacturer - A cosmetics company - A beard oil producer - An athletic shoe manufacturer
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
______ segmentation forms market segments based on the way consumers use a product, such as more frequently or with greater loyalty.
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 Includes how much of the product buyers consume regularly.
How does developing descriptions of each market segment help firms? (Choose every correct answer.) By determining the most attractive market segments By identifying similarities within market segments By revealing similarities across market segments By identifying differences across market segments
By identifying similarities within market segments By identifying differences across market segments
Why are successful brands unable to realize enduring success in meeting consumer demands?
Competitors will encroach on the firm's value proposition by copying important product or service attributes.
Which of the following steps are part of the segmentation, targeting, and positioning process? (Choose every correct answer.) Increasing benefits Develop the marketing plan Establish strategy or objectives Selecting target market Evaluating segment attractiveness
Establish strategy or objectives Selecting target market Evaluating segment attractiveness
Which step in the segmentation process involves determining what the company hopes to accomplish with its marketing strategy?
Establish the overall strategy or objectives.
True or false: Marketers evaluate the attractiveness of a segment by considering whether the segment is powerful, vocal, visible, and influential.
False
True or false: Once a firm selects a segmentation strategy, it should never be changed.
False: Although the STP process makes it appear that the decision making is linear, a firm may modify its strategy as it gathers information about the segments' attractiveness.
Grouping a market by country, region (northeast, southeast), or areas within a region is known as ____ segmentation.
Geographic
Grouping a market by country, region (northeast, southeast), or areas within a region is known as:
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
Breakfast cereal manufacturers have separated the market into many segments. How does selecting a target market segment allow Kellogg's to maximize its chances of success in the cereal industry?
It allows the company to apply its specific competencies toward the most attractive market segment.
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? (Choose every correct answer.) Its past performance Its current situation Its mission and objectives Its target market
Its current situation Its mission and objectives
______ 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 or Occasional
What is used to display, in two or more dimensions, the positions of products or brands in the consumer's mind?
Perceptual map
Which of the following is NOT a market segmentation approach?
Political -benefits -demographic -consumption -geographic
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.
What does the size of a numbered circle on a perceptual map indicate?
The size of the target market
Why are psychographic market segments considered "self-selecting" groups?
They are grouped together based on factors that they choose rather than those they cannot control.
STP analysis occurs during which step of the marketing planning process?
Third
True or False: Lifestyles are a component of psychographic segmentation that describes how an individual lives his or her life to achieve goals.
True, lifestyles are the third component of people's psychographic makeup, are the way we live our lives to achieve goals.
A dairy producer has determined that almost all grocery consumers are potential customers for its products. Which type of marketing strategy should the company use?
Undifferentiated
Based on the Circles for a Successful Value Proposition framework, when should a firm reengineer its product to stop providing certain benefits?
When customers express little need or desire for the benefits in question
When should a firm attempt to match its competitor's value proposition?
When increasingly more customers demand the competing product's benefits.
Ease of developing distribution channels and brand familiarity is also known as market ______.
access Reason: Market development is not a part of analyzing profitability, unlike the correct term, which refers to the ease of developing distribution channels and brand familiarity.
Firms that wish to change a product's positioning should be aware that it is ______.
always a challenging task
"Pork. The Other White Meat." is an advertising campaign that promoted pork as a white-meat alternative to chicken or turkey. This is a positioning strategy that focuses on ______.
competition
Market positioning is done so that the target customers have an understanding of the product offered by the company in comparison with ________ products.
competitors'
By selecting only senior women golfers as the target and focusing all efforts on products to fit their needs, a firm is using a(n) ______ targeting marketing strategy.
concentrated
Demographic segmentation is the most common segmentation strategy because these segments are ____________.
easy to reach and identify
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
Grouping a market by country, region (northeast, southeast), or areas within a region is known as _______ segmentation.
geographic
VALS enables firms to identify target segments and their underlying ______.
motivations
Because each segmentation method has its unique advantages and disadvantages, most firms often employ ______ methods.
multiple
One of the benefits of a differentiated targeting strategy is that it allows the firm to
obtain a bigger share of the market/diversify business
Value is a popular positioning method and is the most important consideration for consumers when they make a purchase decision based on ______.
price and quality
John is a supporter of environmental issues. He is constantly examining the "green" credentials of the products he purchases. John's purchasing behavior is a reflection of his ______.
self-values
______ are goals for life, not just the goals one wants to accomplish in a day. They are the overriding desires that drive how a person lives his or her life.
self-values
How does developing descriptions of each market segment help firms? (Select all that apply.) - By determining the most attractive market segments - By revealing similarities across market segments - By identifying similarities within market segments - By identifying differences across market segments
- By identifying similarities within market segments - By identifying differences across market segments
Why are successful brands unable to realize enduring success in meeting consumer demands? - The federal government will not allow a single firm to maintain that level of success. - Competitors will encroach on the firm's value proposition by copying important product or service attributes. - Customer needs and wants change too rapidly for the firm to maintain its current level of success. - The costs associated with meeting customer needs on that scale will soon lead the company to go out of business.
- Competitors will encroach on the firm's value proposition by copying important product or service attributes.
Which of the following are targeting strategies? (Select all that apply.)
- Concentrated marketing - Undifferentiated marketing - Micromarketing
Which situation constitutes a competitor's value proposition? - Customer needs are met by the focal firm but not by the competitor. - Customer needs are not met by either the competitor or the focal firm. - Customer needs are met by both the competitor and the focal firm. - Customer needs are met by the competitor but not by the focal firm.
- Customer needs are met by the competitor but not by the focal firm.
When marketers seek to evaluate market attractiveness, what must they do first? - Determine whether the segment is worth pursuing - Develop a positioning strategy - Develop a perceptual map - Secure a marketing communications license
- Determine whether the segment is worth pursuing
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 - Undifferentiated - Concentrated - Micromarketing
- Differentiated
Which of the following is NOT a targeting strategy? - Undifferentiated - Diffused - Concentrated - Differentiated - Micromarketing
- Diffused
What options does a firm have if customers express little need or desire for the firm's value proposition? (Select all that apply.)
- Educate customers about the benefits of its product or service - Remove unappealing benefits from the product
Which of the following are marketing segmentation approaches?
- Geographic - Benefits - Psychographic
Which of the following are marketing segmentation approaches? - Geographic - Benefits - User - Collaborative - Psychographic
- Geographic - Benefits - Psychographic
What is used to display, in two or more dimensions, the positions of products or brands in the consumer's mind? - VALS framework - Perceptual map - Product graph - Ideal position
- Perceptual map
What does the value proposition do for marketers? - It describes the target market. - It communicates the customer benefits provided by a product or service. - It assesses the attractiveness of the target segment. - It details the marketing mix.
- It communicates the customer benefits provided by a product or service.
What does the value proposition do for marketers? - It describes the target market. - It details the marketing mix. - It assesses the attractiveness of the target segment. - It communicates the customer benefits provided by a product or service.
- It communicates the customer benefits provided by a product or service.
Which of the following statements are true concerning micromarketing? - It is also known as one-to-one marketing. - It involves customizing a product or service. - It is a strategy that is rarely implemented using the Internet. - It is considered an extreme form of segmentation.
- It is also known as one-to-one marketing. - It involves customizing a product or service. - It is considered an extreme form of segmentation.
Which of the following statements are true concerning micromarketing?
- It is also known as one-to-one marketing. - It is considered an extreme form of segmentation. - It involves customizing a product or service.
When establishing its overall segmentation strategy or objectives, what must the firm keep in mind? (Select all that apply.)
- Its current situation - Its mission and objectives
When establishing its overall segmentation strategy or objectives, what must the firm keep in mind? (Select all that apply.) - Its current situation - Its target market - Its past performance - Its mission and objectives
- Its current situation - Its mission and objectives
When marketers combine segmentation methods, which approach(es) do they typically use to design the product or service rather than to target communications to their customers? (Select all that apply.)
- Lifestyles - Benefits
When marketers combine segmentation methods, which approach(es) do they typically use to design the product or service rather than to target communications to their customers? (Select all that apply.) - Lifestyles - Demographics - Geography - Benefits
- Lifestyles - Benefits
What are the factors considered in the analysis of profitability of a market segment? (Select all that apply.)
- Market growth - Market competitiveness - Market access
The process of dividing the market into groups of customers who have different needs, wants, or characteristics is called ___________. These groups of buyers might want products or services designed especially for them.
- Market segmentation
Under which market situations would a firm be most likely to sustain a unique value proposition over the long term? (Select all that apply.)
- Monopolistic competition - Monopoly
A clothing company that offers a special line of maternity clothing for women to wear specifically during pregnancy engages in which form of segmentation? - Loyalty - Psychographic - Geographic - Occasion
- Occasion
A luxury car company that markets its products to consumers who have a strong need to project an image of power and success uses which method of market segmentation? - Benefit - Psychographic - Demographic - Geographic
- Psychographic
What analytical method does a firm typically employ to assess the target market and its own competencies? - ratio analysis - profit and loss analysis - It determines the size and buying power of the target market - SWOT analysis
- SWOT analysis
The maker of a line of protein shakes knows that its target market places a high value on the use of natural products, so the company's positioning strategy focuses on its use of organic, locally sourced ingredients. Which positioning method is the company using? - Competition - Value proposition - Symbols - Salient attributes
- Salient attributes
Firms position products based on which of the following? (Select all that apply.)
- Salient attributes - Symbols - Values
Which of the following steps are part of the segmentation, targeting, and positioning process? (Select all that apply.)
- Selecting target market - Identifying strategy or objectives - Describing segments
______ is the image people ideally have of themselves. - Self-concept - Self-value - Lifestyle - Self-selection
- Self-concept
Which of the following are examples of self-values? (Select all that apply.) - Self-fulfillment - Self-indulgence - Sense of belonging - Self-respect
- Self-fulfillment - Sense of belonging - Self-respect
______ are goals for life, not just the goals one wants to accomplish in a day. They are the overriding desires that drive how a person lives his or her life. - Lifestyles - Mile markers - Self-values - Self-perceptions
- Self-values
Which of the following are examples of self-values? (Select all that apply.)
- Sense of belonging - Self-fulfillment - Self-respect
Which of the following is an example of occasion segmentation for a chocolate maker? - The company prices its chocolates differently in different geographic areas. - The company sells both regular and sugar-free chocolate. - The company sells white, milk, and dark chocolate to serve different preferences. - The company offers some of its chocolates in heart-shaped boxes for Valentine's Day.
- The company offers some of its chocolates in heart-shaped boxes for Valentine's Day.
Which of the following are factors that can help a marketer determine the profitability of a segment over the lifetime of one of its typical customers?
- The cost of replacing lost customers - Probable length of customer loyalty - Customer defection rate
What does the size of a numbered circle on a perceptual map indicate? - The profitability of the market position - The size of the target market - The number of existing products in that position - The cost of the positioning strategy
- The size of the target market
Why are psychographic market segments considered "self-selecting" groups? - They are determined by voluntary responses to surveys. - They are grouped together based on factors that they choose rather than those they cannot control. - They prefer to be alone and are notoriously difficult to contact. - They respond best to advertisements that feature people who look like them.
- They are grouped together based on factors that they choose rather than those they cannot control.
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 - False
- True
True or false: A firm assesses attractiveness of a target market and its own competencies using a SWOT analysis. - True - False
- True
True or false: Value is a popular positioning method because the relationship between price and quality is important to consumers. - True - False
- True
Which of the following are key elements of a value proposition statement? (Select all that apply.)
- Unique differences/benefits - Target market - Product name/brand
Which of the following questions might a marketer ask to determine consumers' perceptions and evaluations of a product in relation to a competitor's product?
- What might make you choose one brand over another? - How do you use our product? - What products do you consider satisfying alternatives?
Based on the Circles for a Successful Value Proposition framework, when should a firm reengineer its product to stop providing certain benefits? - When customers are unaware that the product meets one of their needs - When customer needs are met by the benefits in question as well as by competitors - When customers express little need or desire for the benefits in question - When customer needs are met by the benefits in question, but are not met by benefits provided by competitors
- When customers express little need or desire for the benefits in question
When should a firm attempt to match its competitor's value proposition? - When customer needs shift away from the competitor's benefits - When increasingly more customers demand the competing product's benefits. - When more customers demand the firm's products than its competitor's products - When the competitor is losing market share
- When increasingly more customers demand the competing product's benefits.
Benefit segmentation is often effective because it is relatively easy to portray a product's or service's benefits in the firm's _______ strategies. - relationship - sales - supply chain - communication
- communication
Market positioning is done so that the target customers have an understanding of the product offered by the company in comparison with ________ products. - competitors' - compatible - the firm's other - previous
- competitors'
A perceptual map is used in developing a positioning strategy in order to display the position of the products or brands in the ______ mind. - competitor's - consumer's - retailer's - brand marketer's
- consumer's
On a perceptual map, marketers can represent the size of both ___________ and potential markets by using different sized ovals that correspond to the market size.
- current
Psychographics is a segmentation method that delves into how consumers actually ________ themselves. - relate to - position - describe - spend money on
- describe
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 - the target market segment is definitely too small - there is always a need to have many diverse market segments targeted - the target market segment is probably too large
- 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. - psychographic - demographic - geodemographic - behavioral - benefit
- 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. - regional - geodemographic - behavioral - benefit
- geodemographic
Market positioning involves a process of defining the marketing mix variables so that the target customers ______. - have a clear, distinctive understanding of the product - know the ideal point of all products in the market - are persuaded to seek additional product information - know the price of the product
- have a clear, distinctive understanding of the product
A point where a market segment's desired product would be located on a perceptual map is called _________, point
- ideal
When a firm positions a product based on its salient attributes, it highlights features that are most ______ to the target market. - mysterious - affordable - expensive - important
- important
The component of segmentation that is determined by how we live our lives to achieve goals is called ______. - self-image - lifestyle - self-worth - value
- lifestyle
Which of the following are key factors to keep in mind when marketers focus their assessments on the potential profitability of market segments, both currently and future.
- market growth - market access - market competitiveness
When a firm adapts a product or service to meet an individual customer's wants or needs, it is undertaking an extreme targeting strategy called ______. - macromarketing - mass marketing - concentrated marketing - micromarketing
- micromarketing
Because each segmentation method has its unique advantages and disadvantages, most firms often employ ______ methods. - simple - multiple - basic - individual
- multiple
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. - reachable - loyalty - occasion - demographic
- occasion
Sometimes, firms find it difficult to use demographics in their segmentation strategies. This is because in some cases demographics ______. - are irrelevant to the user - are very complicated to understand - predict consumer wants and needs poorly - are prohibitively expensive to measure
- predict consumer wants and needs poorly
Value is a popular positioning method and is the most important consideration for consumers when they make a purchase decision based on ______. - quality and quantity - price, quantity, and quality - price and quality - price and quantity
- price and quality
Persuasive communications and accurate product distribution are techniques used by firms to ______ market segments. - identify - reach - measure - assess the size of
- reach
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 - demographic - accounting - shareholder
- segmentation
After evaluating each market segment's attractiveness, the next step in the STP process is ______. - negotiating with retailers - beginning production - contacting consumers - selecting a target market
- selecting a target market
Another term for self-concept is ______. - self-reflection - self-selection - self-image - self-awareness
- self-image
Individuals in different segments should have obvious ______ within the segment and greater ______ across the segments. - targets; positioning - differences; similarities - similarities; differences - similarities; familiarity
- similarities; differences
If a market is too ______ and its buying power ______, it won't generate sufficient profits or be able to support the marketing mix activities. - large; rapid in growth - small; rapid in growth - small; insignificant - large; insignificant
- small; insignificant
Once a firm is able to identify the market and is able to design products or services to meet its needs, the next step is to determine if the market size is ______. - tangible - substantial - variable - recognizable
- substantial
When looking at a perceptual map containing the market's ideal points and size, firms should consider positioning themselves close to ______. - their most successful competitor - the smallest ideal point - the largest ideal point - the least crowded space
- the largest ideal point
After establishing overall objectives, why do marketers then use a particular method or combination thereof to identify and describe market segments? - to articulate the vision of the marketing strategy clearly - to validate preconceived notions of each market segment - to help understand the profile of each segment - to eliminate less desirable consumers from the customer base
- to help understand the profile of each segment
If a firm positions its product too closely to the competition, it risks ______. - being forced to stop production - being forced to lower the price - consumer backlash - trademark infringement lawsuits
- trademark infringement lawsuits
List the following in order of the segmentation, targeting, and positioning process, with the first step at the top.
1. Establish strategy or objective 2. Describe segments 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.
1. Establish strategy or objectives 2. Use segmentation methods 3. Evaluate segmentation 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. - A diaper company sends direct mailers to individuals or couples that have recently had children. - A razor blade manufacturer sends samples of its products to 14-year-old males. - A solar panel installation company targets its web advertisements to individuals who have expressed an interest in environmental friendliness.
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: includes how much of the product buyers consume regularly.
When marketers combine segmentation methods, which approach(es) do they typically use to design the product or service rather than to identify and target communications to their customers? (Select all that apply.)
Benefits Lifestyles
How does developing descriptions of each market segment help firms? (Select all that apply.)
By identifying differences across market segments By identifying similarities within market segments
How does developing descriptions of each market segment help firms? (Select all that apply.)
By identifying differences across market segments By identifying similarities within market segments
Which of the following is NOT a targeting strategy?
Concentrated Micromarketing Differentiated - Diffused Undifferentiated
Which situation constitutes a competitor's value proposition?
Customer needs are met by the competitor but not by the focal firm.
When marketers seek to evaluate market attractiveness, what must they do first?
Determine whether the segment is worth pursuing
What is the first step marketers take in deriving a perceptual map?
Determining consumers' perceptions of the product in relation to competitors' products
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
Which of the following steps are part of the segmentation, targeting, and positioning process? (Select all that apply.)
Identifying strategy or objectives, lecting target market, Describing segments
When a firm adapts a product or service to meet an individual customer's wants or needs, it is undertaking an extreme targeting strategy called ______.
Micromarketing
Sunrise foods has been developing a new line of meatless breakfast sandwiches. Sunrise has identified a market segment and, through the use of surveys and blind taste tests, has found that members of the segment react favorably to the new offerings. Which criterion for evaluating segment attractiveness does the segment meet?
Responsive Reason: Power is not one of the criteria used to evaluate segment attractiveness. Reason: Loyalty is not one of the criteria used to evaluate segment attractiveness.
What analytical method does a firm typically employ to assess the target market and its own competencies?
SWOT analysis
The maker of a line of protein shakes knows that its target market places a high value on the use of natural products, so the company's positioning strategy focuses on its use of organic, locally sourced ingredients. Which positioning method is the company using?
Salient attributes
Firms position products based on which of the following? (Choose every correct answer.) Salient attributes Psychographics Symbols Value Demographics
Salient attributes Symbols Value
When marketers consider the defection rate of a market segment, what behavior are they calculating?
The percentage of customers who switch to a competitor over a given year
After establishing overall objectives, why do marketers then use a particular method or combination thereof to identify and describe market segments? To articulate the vision of the marketing strategy clearly To help understand the profile of each segment To eliminate less desirable consumers from the customer base To validate preconceived notions of each market segment
To help understand the profile of each segment
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 False
True
True or false: A firm assesses attractiveness of a target market and its own competencies using a SWOT analysis.
True
True or false: When a firm decides to position its brand using a perceptual map, it must also take into account competitors' positions.
True Reason: When the firm understands how its customers view its brand relative to competitors', it must study how those same competitors position themselves.
The first step in the segmentation process is to ______ the vision or the objectives of the company's marketing strategy clearly.
articulate
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
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
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
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 Reason: Specifically, it is an example of loyalty segmentation (a subset of behavioral segmentation).
What type of segmentation categorizes consumers on the basis of the outcomes they hope to derive from a product or service, such as clothing, appliances, toothpaste, or paper towels?
benefit
What type of segmentation categorizes consumers on the basis of the outcomes they hope to derive from a product or service?
benefit
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
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
Marketers sometimes take into account that as people age their needs change. This is an example of ______ segmentation.
demographic
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
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
On a perceptual map, marketers can represent the size of both ______ and potential markets by using different sized ovals that correspond to the market size.
current or existing
Age, gender, and income are all examples of ______ segmentation variables.
demographic
General Mills manufactures scores of brands of breakfast cereals because it targets many consumer markets. Although it is likely to be more costly for the firm, a ______ marketing strategy would help lower the company's overall level of risk.
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
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
oster 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
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 continents create opportunities for ______.
geographic segmentation
When a firm positions a product based on its salient attributes, it highlights features that are most ______ to the target market.
important
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 ______. These groups of buyers might want products or services designed especially for them.
market segmentation
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.
occasion
Sometimes, firms find it difficult to use demographics in their segmentation strategies. This is because in some cases demographics ______.
predict consumer wants and needs poorly
When assessing the attractiveness of a segment, marketing managers need to calculate the ______ of each segment, both current and future.
profitability
Loyal customers buy a substantial amount from the firm. These loyal customers are the most ______ in the long term to the firm.
profitable
Daniel joined an outdoor activities club. He has begun to purchase many books about kayaking and rafting. Borders bookstore sends him email promotions focusing on outdoor activities. This is an example of ______ segmentation based on his lifestyle.
psychographic
Persuasive communications and accurate product distribution are techniques used by firms to ______ market segments.
reach
Customers in the segment must react similarly and positively to the firm's offering. This quality is known as ______, which is an important element of successful segmentation.
responsiveness
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
A successful marketing plan requires identifying and evaluating opportunities by performing an STP analysis, which stands for ______.
segmentation, targeting, and positioning
______ is the image people ideally have of themselves.
self concept
McDonald's often targets families by showing families having a good time in its advertising. This appeals to a family's ______.
self-concept
Another term for self-concept is ______.
self-image
Recognizing that many people attend sporting events to meet their need for camaraderie and belonging, a minor-league baseball team promotes its season ticket packages by highlighting the sense of community among season ticket holders. In this case, the team is using psychographic segmentation based on ______.
self-values
Individuals in different segments should have ______ within the segment and ______ across the segments.
similarities; differences
Individuals in different segments should have obvious ______ within the segment and greater ______ across the segments.
similarities; differences
If a market is too ______ and its buying power ______, it won't generate sufficient profits or be able to support the marketing mix activities.
small; insignificant
Because consumers' tastes shift, markets are not ______ and competitors must therefore ______ those shifts.
stagnant; react to
Once a firm is able to identify the market and is able to design products or services to meet its needs, the next step is to determine if the market size is ______.
substantial
When looking at a perceptual map containing the market's ideal points and size, firms should consider positioning themselves close to ______.
the largest ideal point
Firms position their products based on methods such as ______. the value proposition, salient attributes, symbols, and competition undifferentiated positioning, concentrated positioning, differentiated positioning, and micropositioning product, price, place, and promotion demographics, geodemographics, psychographics, and benefits
the value proposition, salient attributes, symbols, and competition
When everyone is considered a potential user of its product, a firm should use a(n) ______ targeting strategy.
undifferentiated
When firms sell products that meet the needs of many kinds of customers, it may use a(n) ____________ targeting strategy because there is little need to formulate different strategies for different groups.
undifferentiated
When a company sells commodities such as salt, sugar, or gasoline the firm might use a(n) _____ strategy, although this strategy is becoming less common in an increasingly complex market.
undifferentiated Reason: Differentiated strategy is not as commonly used for basic commodities.
Match each of the following targeting strategies (on the left) with an example (on the right) that shows how that strategy is used.
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.
Even if a firm has developed a product that addresses the needs of a specific, substantial market segment, its efforts will fail if the segment is ______.
unreachable
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
