BA 370 Chapter 9

After evaluating each market segment's attractiveness, the next step in the STP process is Blank______. Multiple choice question. contacting consumers negotiating with retailers beginning production selecting a target market

selecting a target market

Another term for self-concept is Blank______. Multiple choice question. self-selection self-reflection self-image self-awareness

self-image

The overriding desires that drive how a person lives his or her life are ______. Multiple choice question. mile markers self-perceptions self-values lifestyles

self-values

Individuals in different segments should have Blank______ within the segment and Blank______ across the segments. Multiple choice question. targets; positioning similarities; differences similarities; familiarity differences; similarities

similarities; differences

A firm using a concentrated segmentation strategy selects a(n) Blank______ target market and focuses all its energies on providing a product to fit that market's needs. Multiple choice question. large single individualized diverse

single

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

t

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 question.TrueFalse

t

Psychographics is a segmentation method that delves into how consumers actually Blank______ themselves. Multiple choice question. spend money on relate to describe position

describe

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

differentiated

differentiated targeting strategy

A strategy through which a firm targets several market segments with a different offering for each.

Undifferentiated

A firm produces basic commodities like sugar, milk, and packaged ice.

Micromarketing

A florist designs bouquets for a bride and five attendants.

undifferentiated targeting strategy (or mass marketing)

A marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups.

concentrated targeting strategy

A marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that market's needs.

market basket analysis

A mathematical modeling technique that utilizes millions of customer purchases, often referred to as big data (discussed in Chapter 10), to determine an association between a group of items that customers purchase at the same time and place into their actual or virtual market basket. This analysis enables the firm to classify customers into behaviorally oriented market segments.

psychographic segmentation

A method of segmenting customers based on how they spend their time and money, what activities they pursue, and their attitudes and opinions about the world in which they live.

behavioral segmentation

A segmentation method that divides customers into groups based on how they use the product or service. Some common behavioral measures include occasion and loyalty.

Which of the following is an example of geographic segmentation? Multiple choice question. A diaper company sends direct mailers to individuals or couples that have recently had children. A solar panel installation company targets its web advertisements to individuals who have expressed an interest in environmental friendliness. A ski and snowboard equipment manufacturer markets its goods in states that have snowy mountains and ski resorts. A razor blade manufacturer sends samples of its products to 14-year-old males.

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

occasion segmentation

A type of behavioral segmentation based on when a product or service is purchased or consumed.

micromarketing

An extreme form of segmentation that tailors a product or service to suit an individual customer's wants or needs; also called one-to-one marketing.

Concentrated

An infomercial firm sells a gadget to better fry and flip eggs in cooking.

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? Multiple choice question. Behavioral Demographic Occasion Benefit Loyalty

Behavioral

______ segmentation forms market segments based on the way consumers use a product, such as more frequently or with greater loyalty. Multiple choice question. Behavioral Lifestyle Benefit Substantial

Behavioral

What type of segmentation categorizes consumers on the basis of the outcomes they hope to derive from a product or service? Multiple choice question. Behavioral Geodemographic Benefit Psychographic

Benefit

When marketers combine segmentation methods, which approaches do they typically use to design a product or service? (Choose every correct answer.) Multiple select question. Benefits Geography Lifestyles Demographics

Benefits Lifestyles

How does developing descriptions of each market segment help firms? (Choose every correct answer.) Multiple select question. By identifying differences across market segments By identifying similarities within market segments By determining the most attractive market segments By revealing similarities across market segments

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

? segmentation variables include age, income, and gender.

Demographic

When marketers seek to evaluate market attractiveness, what must they do first? Multiple choice question. Develop a positioning strategy Determine whether the segment is worth pursuing 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? Multiple choice question. Concentrated Micromarketing Undifferentiated Differentiated

Differentiated

perceptual map

Displays, in two or more dimensions, the position of products or brands in the consumer's mind.

Which of the following steps are part of the segmentation, targeting, and positioning process? (Choose every correct answer.) Multiple select question. Evaluating segment attractiveness Establish strategy or objectives Increasing benefits Selecting target market Develop the marketing plan

Evaluating segment attractiveness Establish strategy or objectives Selecting target market

self-values

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.

When establishing its overall segmentation strategy or objectives, what must the firm keep in mind? (Choose every correct answer.) Multiple select question. Its current situation Its past performance Its mission and objectives Its target market

Its current situation Its mission and objectives

A clothing company that offers a special line of maternity clothing for women to wear specifically during pregnancy engages in which form of segmentation? Multiple choice question. Psychographic Loyalty Occasion Geographic

Occasion

What is used to display, in two or more dimensions, the positions of products or brands in the consumer's mind? Multiple choice question. VALS framework Product graph Ideal position Perceptual map

Perceptual map

Differentiated

Proctor and Gamble offers Pantene, Head and Shoulders, Aussie, and Wella shampoos.

Multiple Choice Question Which of the following is NOT a market segmentation approach? Multiple choice question. Product Geographic Behavioral Benefit Demographic

Product

Which of the following are marketing segmentation approaches? (Choose every correct answer.) Multiple select question. Collaborative Psychographic Geographic User Benefit

Psychographic Geographic Benefit

value

Reflects the relationship of benefits to costs, or what the consumer gets for what he or she gives.

What analytical method does a firm typically employ to assess the target market and its own competencies? Multiple choice question. Target market buying power analysis Ratio analysis Profit and loss analysis SWOT analysis

SWOT analysis

______ is the image people ideally have of themselves. Multiple choice question. Lifestyle Self-value Self-concept Self-selection

Self-concept

loyalty segmentation

Strategy of investing in loyalty initiatives to retain the firm's most profitable customers.

Firms position products based on which of the following? (Choose every correct answer.) Multiple select question. Symbols Salient attributes Psychographics Demographics Value

Symbols Salient attributes Value

Which of the following is an example of occasion segmentation for a chocolate maker? Multiple choice question. The company sells white, milk, and dark chocolate to serve different taste preferences. The company offers some of its chocolates in heart-shaped boxes for Valentine's Day. The company prices its chocolates differently in different geographic areas. The company sells both regular and sugar-free chocolate.

The company offers some of its chocolates in heart-shaped boxes for Valentine's Day.

demographic segmentation

The grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and education.

geodemographic segmentation

The grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristics.

benefit segmentation

The grouping of consumers on the basis of the benefits they derive from products or services.

geographic segmentation

The grouping of consumers on the basis of where they live.

self-concept

The image a person has of himself or herself; a component of psychographics.

Which of the following are examples of self-values? (Choose every correct answer.) Multiple select question. The need for a sense of belonging The need for self-respect The need for self-fulfillment The need for self-indulgence

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

What marketing opportunities does a firm have when customer needs are unmet? (Choose every correct answer.) Multiple select question. The opportunity to change customer needs The opportunity to identify new market segments The opportunity to create new products or services The opportunity to augment existing products or services

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

ideal point

The position at which a particular market segment's ideal product would lie on a perceptual map.

market positioning

The process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

value proposition

The unique value that a product or service provides to its customers and how it is better than and different from those of competitors.

lifestyle

The way a person lives his or her life to achieve goals.

After establishing overall objectives, why do marketers then use a particular method or combination thereof to identify and describe market segments? Multiple choice question. To help understand the profile of each segment To articulate the vision of the marketing strategy clearly To validate preconceived notions of each market segment To eliminate less desirable consumers from the customer base

To help understand the profile of each segment

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 question.TrueFalse

True

psychographics

Used in segmentation; delves into how consumers describe themselves; allows people to describe themselves using those characteristics that help them choose how they occupy their time (behavior) and what underlying psychological reasons determine those choices.

Which situation represents an important marketing opportunity for creating new products or altering existing products? Multiple choice question. When customers have little need or desire for the firm's offerings When customers are satisfied with only the firm's offerings When customer needs are not completely met When customers' needs are met by the firm and its competitors

When customer needs are not completely met

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 Blank______ segmentation. Multiple choice question. behavioral occasion multiple psychographic

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

Benefit segmentation is often effective because it is relatively easy to portray a product's or service's benefits in the firm's Blank______ strategies. Multiple choice question. communication relationship supply chain sales

communication

Market positioning is done so that the target customers have an understanding of the product offered by the company in comparison with Blank______ products. Multiple choice question. compatible conceptual previous competing

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 Blank______ mind. Multiple choice question. consumer's brand marketer's retailer's competitor's

consumer's

Marketers sometimes take into account that as people age, their needs change. This is an example of Blank______ segmentation. Multiple choice question. benefit demographic psychographic geographic

demographic

Multiple Choice Question Age, gender, and income are all examples of Blank______ segmentation variables. Multiple choice question. geographic demographic psychographic benefit

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 Blank______ segmentation. Multiple choice question. lifestyle demographic geodemographic psychographic

demographic

It is important to ensure that segments are distinct from one another because too much overlap between segments means that Blank______. Multiple choice question. the target market segment is definitely too small distinct marketing strategies are not necessary to meet segment members' needs 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

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

establish strategy or objectives. use segmentation methods. evaluate segment attractiveness. select target market. identify and develop positioning strategy.

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 Blank______ segmentation. Multiple choice question. psychographic geodemographic demographic benefit behavioral

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 Blank______ segmentation. Multiple choice question. behavioral benefit geodemographic regional

geodemographic

Grouping a market by country, region (northeast, southeast), or areas within a region is known as ? segmentation.

geographic

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 Blank______ segmentation. Multiple choice question. psychographic demographic benefit geographic

geographic

Market differences across regions, states, or neighborhoods create opportunities for Blank______. Multiple choice question. geodemographic segmentation psychographic segmentation geographic segmentation concentrated segmentation

geographic segmentation

Market positioning involves a process of defining the marketing mix variables so that the target customers Blank______. Multiple choice question. are persuaded to seek additional product information have a clear, distinctive understanding of the product know the ideal point of all products in the market know the price of the product

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 Blank______. Multiple choice question. self-image self-worth value lifestyle

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 Blank______ segmentation and investing in initiatives to retain their most profitable customers. Multiple choice question. benefit usage loyalty occasion

loyalty

The process of dividing the market into groups of customers who have different needs, wants, or characteristics is called Blank______. Multiple choice question. market positioning customer marketing market segmentation target marketing

market segmentation

Because each segmentation method has its unique advantages and disadvantages, most firms often employ Blank______ methods. Multiple choice question. basic individual multiple simple

multiple

? 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

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 Blank______ segmentation. Multiple choice question. reachable occasion loyalty demographic

occasion

Loyal customers buy a substantial amount from the firm. These loyal customers are the most Blank______ in the long term to the firm. Multiple choice question. successful heavy users similar to each other profitable

profitable

While some segmentation methods rely on external descriptions and factors to break down the market, Blank______ segmentation relies on consumers' descriptions of themselves. Multiple choice question. benefit demographic psychographic geographic geo-demographic

psychographic

The Blank______ 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). Multiple choice question. accounting demographic segmentation shareholder

segmentation

Firms position their products based on methods such as Blank______. Multiple choice question. demographics, geodemographics, psychographics, and benefits the value proposition, salient attributes, symbols, and competition product, price, place, and promotion undifferentiated positioning, concentrated positioning, differentiated positioning, and micropositioning

the value proposition, salient attributes, symbols, and competition

When a firm sells products that meet the needs of many kinds of customers, it will most likely use a(n) Blank______ targeting strategy because there is little need to formulate different strategies for different groups. Multiple choice question. undifferentiated concentrated differentiated one-to-one

undifferentiated

When everyone is considered a potential user of its product, a firm should use a(n) Blank______ targeting strategy. Multiple choice question. undifferentiated concentrated specialized micro-marketing

undifferentiated