SDSU Mktg 370 Ch. 9 Learnsmart

If a market is too SMALL and its buyer power INSIGNIFICANT, it won't generate sufficient profits or be able to support the marketing mix activities

yeah

Markets are not STAGNANT. consumers tastes shift, and competitors REACT to those shifts

yeah

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

yeah

The segmentation 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)

yeah

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

yup

When everyone is considered a potential user of its product, a firm should use an UNDIFFERENTIATED targeting strategy

yeah

symbols are registered TRADEMARKS that are legally protected by companies that create them

yeah

Different segments should have obvious customer SIMILARITIES within the segment and greater DIFFERENCES across the segments

yup

In the value proposition, "SportsAde offers serious athletes a great-tasting way to stay hydrated during exercise," identify the 4 main components

1. unique difference/benefits - "a great-tasting way to stay hydrated during exercise" is the benefit statement 2. product/service category or concept - the drink 3. target market - "serious athletes" is target market 4. offering name or brand - SportsAde is the brand

Concentrated segmentation

a firm selects a SINGLE target market and focuses all its energies on providing a product to fit that market's needs

Ideal Point

a point where a market segment's desired product would be located on a perceptual map is called an ideal point

Ford Motor Company owns Ford, Lincoln, Mercury, and Volvo automobile brands. Ford Motor uses this variety of brands to pursue a(n) _______ targeting strategy

differentiated

Factors influencing the profitability of a segment over the lifetime of a typical customer relationship

market growth rate

STP process

segmentation: identify groups of similar customers targeting: choose which groups to address positioning: design an appropriate marketing mix

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

self-image

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

Examples of self-values

sense of belonging self-respect self-fulfillment

Cookie

small text file providing a unique identification for each site visitor

The order of the segmentation, targeting, and positioning process

1. establish strategy or objectives 2. describe segments 3. evaluate segment attractiveness 4. select target market 5. identify and develop positioning strategy

One positioning strategy focuses on the product attributes that are most ______ to the target market

salient

True or False: Positioning a product by value requires that the firm set a low price

False.

True or False: Micro marketing segmentation strategies are rarely implemented using the Internet

False. The internet makes it easier to cater to very small segments efficiently and more inexpensively.

example of Geographic segmentation

McDonalds promotes coffee in cold, rainy Seattle and seasonal seafood meals including lobster and crab in select markets like New England

What does a firm do to assess the target market in light of its own competencies?

SWOT analysis

Market Segmentation

The process of dividing the market into groups of customers who have different needs, wants, or characteristics is called ________. These groups of buyers might appreciate products or services designed especially for them.

True or False: It is possible for a firm to position its products or services directly against a competitor.

True.

True or False: Value is a popular positioning method because of the relationship between price to quality.

True.

Geodemographic segmentation

a retailer can use __________, which uses a combination of geographic, demographic, and lifestyle characteristics to classify consumers who may patronize stores close to their neighborhood

If a firm positions its product too closely to the competition, they are risking:

a trademark infringement lawsuit

Breakfast cereal manufacturers have separated the market into many segments. Kellogg's makes several diff types of b-fast cereal to _____ several segments

appeal to

When customers visit Hewlett-Packard's website, they can choose from different options based on what types of customers they are and what the purpose is for which they need a computer. This is an example of ______ segmentation

benefit

the circles for a successful value proposition

benefits the company provides customer needs and wants benefits provided by competitors

Market Segmentation approaches

benefits, geographic, psychographic

Marketers ask consumers a series of questions about competitors products in order to determine the products _____ on the perceptual map

brand positions

The Value Proposition

communicates the customer benefits provided by a product/service

Benefit segmentation is often effective. It is relatively easy to portray a product's or service's benefits in the firm's _______ strategies.

communication

"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 a single target market and focusing all its efforts on offering a product to fit that market's needs, a firm is using a(n) ________ targeting strategy in marketing to a specific niche.

concentrated

marketers sometimes take into acct that as ppl age their needs change. this is ex. of?

demographic segmentation

Firms are finding that psychographic segmentation is often more useful for predicting consumer behavior than demographics. This is because people who share demographics often have _______ psychological traits

different

Firms using a(n) "_________ targeting strategy" target several market segments with a different offering for each.

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

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

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

ex. of behavioral segmentation

There are limitations to using psychographic segmentation. Psychographics is a more _______ method used to identify potential customers

expensive

Concentrated targeting strategies are generally more ______ than differentiated targeting strategies

focused

Occasion segmentation

form of behavioral segmentation in which segments are formed based on the situation in which the product or service is purchased or consumed for a special event or activity

Behavioral Segmentation

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

Foster Designs sells diff types of clothing for men and women. they would like to make sure the location of each of their retail stores contains the appropriate assortment of clothing for the area. they should use ________ segmentation

geodemographic

Self-Values

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

Demographic segmentation

groups consumers according to objective characteristics such as age, gender, income, education

Benefit segmentation

groups consumers on the basis of the outcomes they seek and derive from the products or service, such as clothing, appliances, toothpaste or paper towels

Firms that wish to change a product's positioning should be aware that:

it is always a challenge to do so

If values provide goals, self-concept is the way we see ourselves, _________ is how we live our lives to achieve goals and provides a method for market segmentation

lifestyle

Justin's Western Wear allows customers to order custom boots. When compared to ordering standard boots, the customized boots take a(n) _______ to receive

longer time

Key factors when marketers focus their assessments on the potential profitability of market segments, both current and future, are:

market competitiveness market access market growth

Compared to most available targeting strategies, differentiated targeting is ______

more expensive

Compared to most available targeting strategies, differentiated targeting is ________

more expensive

VALS

most widely used PSYCHOGRAPHIC segmentation tool shows correlations between psychology and lifestyle choices

B/c each segmentation method has its unique pros and cons, most firms often employ _______ methods

multiple

The first step in the segmentation process is to articulate the vision or the ______ of the company's marketing strategy clearly.

objectives

One of the benefits of a differentiated targeting strategy is that it allows the firm to:

obtain a bigger share of the market

Psychographics studies how people _____ their time and what underlying psychological reasons determine their choices

occupy

When using a perceptual map, a company should select a ______ according to what the market segment it's targeting really wants, or near the ideal point of a product of a segment

position

Sometimes, firms find it difficult to use demographics in their segmentation strategies. this is b/c in some cases demographics

predict consumer wants and needs poorly

Value is a popular positioning method and is the most important considerate for consumers when they make a purchase decision because of its relationship with _______

price and quality

Key criteria considered by marketers to evaluate whether or not a segment is worth pursuing

profitable, identifiable, reachable

Daniel joined an outdoor activities club. He has begun to purchase many books about kayaking and rafting. Borders bookstores sends him email promotions focusing on outdoor activities. This is an example of ______ segmentation, based on lifestyles

psychographic

Persuasive communication 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 is ______ which is an important element of successful segmentation

responsiveness

Once the firm understands how its competitors brands are viewed by the consumer, it should next _______

study how the competitors have positioned themselves

Some _______, like the Nike swoosh, are strong and well known; they create a position for a brand that distinguishes it from the competition

symbols

Companies should convey a clear, distinctive, desirable understanding of what the product or services do or what they represent relative to competing products, in the minds of customers in their _______ market

target

Example of occasion segmentation for a chocolate maker

the company sells its chocolates in simple plastic bags, but also offers it in attractive boxes for gift giving

In the Circles for a Successful Value Proposition, the best situation for a firm is if:

the product or service overlaps with customer needs and wants, but not with competitors' offerings

VALS can be used to help a caribbean resort identify customers most interested in and able to afford tropical vacations. Based on the ______ of its target customers, the resort can develop a successful advertising campaign

underlying motivations

When there is no perceived diff in benefits between competitor's products, the marketing manager should use a(n) ______ targeting strategy

undifferentiated

match each targeting strategy with examples of how that strategy is used

undifferentiated -- sugar, milk, packaged ice differentiated -- proctor and gamble offers pantene, head and shoulders, aussie, and well shampoos Concentrated -- an infomercial firm sells a gadget to better fry and flip one's eggs Mirco-marekting -- a florist designed the bride's and five attendants' bouquets

targeting strategies

undifferentiated, concentrated, micro marketing, differentiated

Perceptual map

used to display, in 2 dimensions, the positions of products or brands in the consumer's mind

firms position products based on methods including

value, salient attributes, competition, symbols

Micro Marketing

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 micro-marketing

Geographic segmentation

when a market is grouped by country, region (northeast, southeast), or areas within a region

A well-known symbol can be used as a POSITIONING tool, distinguishing the brand from its competition

yeah