Chapter 9
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.
demographic
Psychographics is a segmentation method that delves into how consumers actually Blank______ 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
______ 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
True or False: Marketers evaluate the attractiveness of a segment by considering whether the segment is powerful, vocal, visible, and influential.
false
Marketers sometimes take into account that as people age, their needs change. This is an example of Blank______ segmentation.
demographic
Foster Designs sells different types of clothing for men and women. To ensure that each retail store location contains the appropriate assortment of clothing for the typical customer living in the respective area, the firm should use Blank______ segmentation.
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.
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 Blank______ segmentation.
geographic
Market differences across regions, states, or neighborhoods create opportunities for Blank______.
geographic segmentation
Which of the following is a market segmentation approach?
geographic, demographic, psychographic, and benefit
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
When creating a perceptual map, what should a firm do after it understands how customers view its brand relative to competitors'?
identify competitors' positions
When a firm positions a product based on its salient attributes, it highlights features that are most Blank______ to the target market.
important
Estee Lauder has a brand portfolio with more than 25 brands in over 150 companies. Having a variety of brands allows Estee Lauder to Blank______.
increase the market for its products
When assessing the attractiveness of a segment, marketing managers need to calculate the Blank______ of each segment, both current and future.
profitability
Loyal customers buy a substantial amount from the firm. These loyal customers are the most Blank______ in the long term to the firm.
profitable
Daniel joins a kayaking club. He purchases the necessary equipment and 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 Blank______ segmentation based on his lifestyle.
psychographic
While some segmentation methods rely on external descriptions and factors to break down the market, Blank______ segmentation relies on consumers' descriptions of themselves.
psychographic
Persuasive communications and accurate product distribution are techniques used by firms to Blank______ market segments.
reach
Which of the following are examples of self-values? (Choose every correct answer.)
Self-fulfillment Self-respect Sense of belonging
Which step in the segmentation process involves determining what the company hopes to accomplish with its marketing strategy?
Establish the overall strategy or objectives.
Place the steps in the segmentation, targeting, and positioning process in their conventional order, with the first step at the top.
1. establish strategy or objectives 2. use segmentation methods 3. evaluate segment 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.
How do firms commonly position themselves in the marketplace when using a competition positioning method? (Choose every correct answer.)
Against an entire service classification Against a specific competitor Against an entire product classification
For which of the following companies would demographic segmentation be the LEAST useful?
An athletic shoe manufacturer
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.)
Brand Target market Benefits
How does developing descriptions of each market segment help firms? (Choose every correct answer.)
By identifying differences across market segments By identifying similarities within market segments
When marketers seek to evaluate market attractiveness, what must they do first?
Determine whether the segment is worth pursuing
Which of the following steps are part of the segmentation, targeting, and positioning process? (Choose every correct answer.)
Establish strategy or objectives Evaluating segment attractiveness Selecting target market
What does the value proposition do for marketers?
It communicates the customer benefits provided by a product or service.
Which of the following statements are true concerning micromarketing? (Choose every correct answer.)
It involves customizing a product or service. It is also known as one-to-one marketing. It is considered an extreme form of segmentation.
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 competitiveness Market growth Market access
_____ 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
______ 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
Which of the following are targeting strategies? (Choose every correct answer.)
Micromarketing Undifferentiated marketing Concentrated marketing
What is used to display, in two or more dimensions, the positions of products or brands in the consumer's mind?
Perceptual map
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
Which of the following are criteria considered by marketers to evaluate whether or not a segment is worth pursuing? (Choose every correct answer.)
Reachable Profitable Identifiable
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
What are the three components of the STP process? (Choose every correct answer.)
Segmentation Positioning Targeting
____ is the image people ideally have of themselves.
Self-concept
Firms position products based on which of the following? (Choose every correct answer.)
Symbols Value Salient attributes
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
Which of the following are key elements of a value proposition statement? (Choose every correct answer.)
Unique differences/benefits Target market Product name/brand
Firms that wish to change a product's positioning should be aware that it is Blank______.
always a challenging task
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
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
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
______ segmentation forms market segments based on the way consumers use a product, such as more frequently or with greater loyalty.
behavioral
A coffee company that advertises its products as "a delicious pick-me-up to start your morning right" uses which form of segmentation?
benefit
What type of segmentation categorizes consumers on the basis of the outcomes they hope to derive from a product or service?
benefit
When customers visit Hewlett-Packard's website, they can choose from different options based on what they need from a computer and how they expect it to improve their life. This is an example of Blank______ segmentation.
benefit
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.
communication
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.
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
The component of segmentation that is determined by how we live our lives to achieve goals is called Blank______.
lifestyle
When marketers combine segmentation methods, which approaches do they typically use to design a product or service? (Choose every correct answer.)
lifestyles benefits
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.
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 Blank______.
micromarketing
Which of the following is a targeting strategy?
micromarketing differentiated undifferentiated concentrated
Because each segmentation method has its unique advantages and disadvantages, most firms often employ Blank______ methods.
multiple
One of the benefits of a differentiated targeting strategy is that it allows the firm to Blank______.
obtain a bigger share of the market
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
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
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.
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.
occasional
Psychographics study how people Blank______ their time and the underlying psychological factors that determine their choices.
occupy
Sometimes, firms find it difficult to use demographics in their segmentation strategies. This is because in some cases demographics Blank______.
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 Blank______.
price and quality
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
Customers in the segment must react similarly and positively to the firm's offering. This quality is known as Blank______ which is an important element of successful segmentation.
responsiveness
A successful marketing plan requires identifying and evaluating opportunities by performing an STP analysis, which stands for Blank______.
segmentation, targeting, and positioning
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
McDonald's often targets families by showing families having a good time in its advertising. This appeals to a families' Blank______.
self-concept
Another term for self-concept is Blank______.
self-image
Individuals in different segments should have ______ within the segment and ______ across the segments.
similarities; differences
If a market is too Blank______ or if its buying power is Blank______ it won't generate sufficient profits or be able to support the marketing mix activities.
small; insignificant
Because consumers' tastes shift, markets are not Blank______, and competitors must therefore Blank______ 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 Blank______.
substantial
Which step of the STP process involves evaluating the attractiveness of various market segments and choosing the segments to pursue?
targeting
When looking at a perceptual map containing the market's ideal points and size, firms should consider positioning themselves close to Blank______.
the largest ideal point
Firms position their products based on methods such as Blank______.
the value proposition, salient attributes, symbols, and competition
If a firm positions its product too closely to the competition, it risks Blank______.
trademark infringement lawsuits
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
True or False: Value is a popular positioning method because the relationship between price and quality is important to consumers.
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
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.
undifferentiated
When everyone is considered a potential user of its product, a firm should use a(n) Blank______ targeting strategy.
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 Blank______.
unreachable
The Blank______ communicates the customer benefits to be received from a product or service—in other words, why a customer should purchase the product.
value proposition
