Chapter 7 Int. Mrkt

Demographic Segmentation

Age, Gender, Income, Ethnic background, family life cycle

Family Life Cycle

Age-Martial Status-Children

ord Motor Company produces passenger cars, commercial trucks and specialty vehicles, performance vehicles, and race cars. Ford uses a procedure called _____ to divide its large market. A. micromarketing B. positioning C. market segmentation D. cannibalization E. perceptual mapping

C) Market segmentation

Most airline frequent flyer programs reward the most frequent flyers with business class upgrades and flight lounge privileges. Airlines are using these rewards as a means of implementing _____ segmentation. a. lifestyle B. motive C. usage-rate D. demographic e. personality

C) Usage rate

The city of Monroe has a literacy program for the homeless but has had a difficult time reaching this group with information about the program, even though radio and television stations have provided public service advertisements free of charge. This illustrates a segmentation problem with: A. substantiality B. identifiability and measurability C. responsiveness D. accessibility E. accountability

D) accessibility

Targeting

Determining which customer groups to serve

Segmentation

Dividing the mass market into subsets of consumers who share relatively homogeneous in terms of their needs, wants, and preferences.

A market segment is deemed to have substantiality if it contains a large number of potential customers. True False

False

A Taiwanese company sent a shipment of drinking glasses to a buyer in the Middle East. The glasses were packed in wooden crates with hay used as dunnage to prevent breakage. Is this a good decision?

No.

Base for Psychographic Segmentation

Personality, Motives, Lifestyles

Positioning

The process of communicating with firm's target market(s)

Jane graduated from high school in 1978, is married, and has two teenaged children. Most of Jane's friends from high school have children who have already graduated from college, gotten married, and some with grandchildren. Jane and her former classmates are at difference stages of the: a. internalization phase b. segmentation process c. family life cycle d. psychographic cycle e. maturation process

c) family life cycle

H&M plans to open a new store in Saudi Arabia. It will be staffed completely by women. Saudi Arabia has strict laws about women interacting with men other than their husbands so only women will be permitted to shop there. Which type of demographic segmentation is H&M using? a. lifestyle b. usage rate c. benefit d. age e. gender

e) Gender

Substantiality

egment must be large enough to warrant a special marketing mix