BA 370: Chapter 9
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
If a market is too ______ or if its buying power is ______, it won't generate sufficient profits or be able to support the marketing mix activities.
small; insignificant
A resort advertisement that contains images of groups of people having fun on the beach or lounging by the pool appeals to which component of psychographics?
Self-concept
Which of the following are examples of self-values? (Choose every correct answer.)
The need for self-respect The need for self-fulfillment The need for a sense of belonging
: 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: A firm assesses attractiveness of a target market and its own competencies using a SWOT analysis.
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
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 segment attractiveness 4. select target marketing 5. identify and develop positioning strategy
How do firms commonly position themselves in the marketplace when using a competition positioning method?
Against an entire product classification Against an entire service classification Against a specific competitor
For which of the following companies would demographic segmentation be the LEAST useful?
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
What type of segmentation categorizes consumers on the basis of the outcomes they hope to derive from a product or service?
Benefit
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"? (Choose every correct answer.)
Benefits Brand Target market
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"? (Choose every correct answer.) Multiple select question.
Brand Target market Benefits
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 situation constitutes a competitor's value proposition? Multiple choice question.
Customer needs are met by the competitor but not by the focal firm
Which situation constitutes a competitor's value proposition?
Customer needs are met by the competitor but not by the focal firm.
What is the first step marketers take in deriving a perceptual map?
Determining consumers' perceptions of the product in relation to competitors' products
What is the first step marketers take in deriving a perceptual map? Multiple choice question.
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
What options does a firm have if customers express little need or desire for the firm's value proposition?
Educating customers about the benefits of its product or service Removing unappealing benefits from the product
True or False: Marketers evaluate the attractiveness of a segment by considering whether the segment is powerful, vocal, visible, and influential.
False
Which of the following are marketing segmentation approaches?
Geographic Psychographic Benefits
Which of the following are criteria considered by marketers to evaluate whether or not a segment is worth pursuing?
Identifiable Reachable Profitable
When creating a perceptual map, what should a firm do after after it understands how customers view its brand relative to competitors'? Multiple choice question.
Identify competitors' positions
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 current situation Its mission and objectives
When marketers combine segmentation methods, which approaches do they typically use to design a product or service? (Check all that apply.)
Lifestyles Benefits
Which of the following are key factors to keep in mind when marketers focus their assessments on the potential profitability of market segments, both current and future? (Choose every correct answer.)
Market growth Market access Market competitiveness
Which of the following are targeting strategies? (Choose every correct answer.)
Micromarketing Concentrated marketing Undifferentiated marketing
Under which market situations would a firm be most likely to sustain a unique value proposition over the long term? (Choose every correct answer.)
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?
Occasion
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
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
______ is the image people ideally have of themselves.
Self-concept
What marketing opportunities does a firm have when customer needs are unmet?
The opportunity to augment existing products or services The opportunity to create new products or services
What does the size of a numbered circle on a perceptual map indicate?
The size of the target market
Which of the following are key elements of a value proposition statement? (Choose every correct answer.)
Unique differences/benefits Product name/brand Target market
Firms position products based on which of the following? (Choose every correct answer.)
Value Symbols Salient attributes
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
"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 ______. Multiple choice question.
competition
Whereas most men's suit brands focus on their craftsmanship and use of high-quality materials, Bluebird Suits distinguishes itself by emphasizing the durability of its products and deriding other suit makers as "delicate." Which positioning method is Bluebird using?
competition
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. Multiple choice question.
consumers
true or False: Marketers evaluate the attractiveness of a segment by considering whether the segment is powerful, vocal, visible, and influential.
false
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
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
hen creating a perceptual map, what should a firm do after after it understands how customers view its brand relative to competitors'
identify competitors positions
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
A well-known symbol can be used as a ______ tool, distinguishing the brand from its competition.
positioning
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
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
Which of the following is NOT a market segmentation approach?
product
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 joins a kayaking club. He purchases the necessary equipment, searches online for kayaking videos, and researches local rivers and lakes. He begins to see banner ads for companies that sell kayaking and other outdoor gear. This is an example of ______ segmentation based on his lifestyle.
psychographic
After evaluating each market segment's attractiveness, the next step in the STP process is ______.
selecting a target market
McDonald's often targets families by showing families having a good time in its advertising. This appeals to a families' ______.
self-concept
Another term for self-concept is ______.
self-image
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
Some ______, such as the Nike swoosh, are so strong and well known that they help position the brand.
symbols
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
When looking at a perceptual map containing the market's ideal points and size, firms should consider positioning themselves close to ______. Multiple choice question.
the largest ideal point
When a firm decides to position its brand using a perceptual map, it must also take into account competitors' positions. True false question.
true
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
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
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 analytical method does a firm typically employ to assess the target market and its own competencies?
SWOT analysis
Which of the following steps are part of the segmentation, targeting, and positioning process? (Choose every correct answer.)
-Establish strategy or objectives -Selecting target market -Evaluating segment attractiveness
______ segmentation forms market segments based on the way consumers use a product, such as more frequently or with greater loyalty.
Behavioral
Which of the following are marketing segmentation approaches?
Benefits Geographic Psychographic
How does developing descriptions of each market segment help firms?
By identifying similarities within market segments By identifying differences across market segments
______segmentation variables include age, income, and gender.
Demographic
When marketers seek to evaluate market attractiveness, what must they do first?
Determine whether the segment is worth pursuing
Which targeting strategy is likely to be most costly for a firm?
Differentiated
Which of the following is NOT a targeting strategy? Micromarketing Undifferentiated Diffused Differentiated Concentrated
Diffused
Market differences across regions, states, or neighborhoods create opportunities for ______.
geographic segmentation
_____segmentation is a very specific form of behavioral segmentation by which segments are formed based on when a product
Occasion
Which aspect of the STP process involves adjusting the marketing mix to give consumers a clear picture of what a product does in comparison to competing products?
Positioning
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
______ is the process of creating a clear, distinctive, and desirable understanding of the product in the consumer's mind relative to competing products.
Market positioning
Grouping a market by country, region (northeast, southeast), or areas within a region is known as _____ segmentation
Geographic
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
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
Age, gender, and income are all examples of ______ segmentation variables.
demographic
Marketers sometimes take into account that as people age, their needs change. This is an example of ______ segmentation.
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
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
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
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
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
_______segmentation variables include age, income, and gender.
geographic
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
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
Compared to most available targeting strategies, differentiated targeting is ______.
more expensive
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
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
Psychographics study how people ______ their time and the underlying psychological factors that determine their choices.
occupy
While some segmentation methods rely on external descriptions and factors to break down the market, ______ segmentation relies on consumers' descriptions of themselves.
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
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
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
When a company sells commodities such as salt, sugar, or gasoline, the firm will most likely use a(n) ______ strategy, although this strategy is becoming less common in an increasingly complex market.
undifferentiated
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
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
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
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? (Choose every correct answer.) Multiple select question.
What might make you choose one brand over another? What products do you consider satisfying alternatives? How do you use our product?
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
General Mills manufactures a wide variety 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
Market positioning involves a process of defining the marketing mix variables so that the target customers ______.
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 a(n__________point
ideal
When a firm positions a product based on its salient attributes, it highlights features that are most ______ to the target market.
important
When a firm positions a product based on its salient attributes, it highlights features that are most ______ to the target market. Multiple choice question.
important
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 ______. Multiple choice question.
trademark infringement lawsuits
True or False: Value is a popular positioning method because the relationship between price and quality is important to consumers.
True
When should a firm attempt to match its competitor's value proposition?
When increasingly more customers demand the competing product's benefits.
What is used to display, in two or more dimensions, the positions of products or brands in the consumer's mind?
Perceptual map
What is used to display, in two or more dimensions, the positions of products or brands in the consumer's mind? Multiple choice question.
Perceptual map
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.
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.
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
When should a firm attempt to match its competitor's value proposition?.
When increasingly more customers demand the competing product's benefits.
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
When a firm offers customers a loyalty card for car washes, the firm is employing loyalty segmentation, one of two common types of_______ segmentation.
behavorial
Market positioning is done so that the target customers have an understanding of the product offered by the company in comparison with ______ products.
competing
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
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
Which of the following statements are true concerning micromarketing?
It involves customizing a product or service. It is also known as one-to-one marketing. It is considered an extreme form of segmentation.
Undifferentiated - Differentiated - concentrated - micromarketing -
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 - Choice, An infomercial firm sells a gadget to better fry and flip eggs in cooking. 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.
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