Chapter 9 - Market Segmentation

Socioeconomic market segmentation is another name for _____ segmentation. * a. product-related b. demographic c. psychographic d. geographic

b. demographic

The most common method of market segmentation is: * a. product based segmentation. b. demographic segmentation. c. economic segmentation. d. psychographic segmentation.

b. demographic segmentation.

Oscar Mayer, a marketer of a variety of meat products introduced Lunchables, a product specifically aimed at children. This is an example of: * a. undifferentiated marketing. b. differentiated marketing. c. mass marketing. d. micromarketing.

b. differentiated marketing.

Undifferentiated marketing

A firm may produce only one product or product line and promote it to all customers with a single marketing mix; such a firm is said to practice undifferentiated marketing, sometimes called mass marketing.

Positioning strategies

Attributes, price/quality, competitors, application, product user, product class

Differentiated marketing

Firms that promote numerous products with differing marketing mixes designed to satisfy smaller segments are said to practice differentiated marketing

Concentrated marketing or Niche marketing

a firm focuses its efforts on profitably satisfying a single market segment. This approach can appeal to a small firm lacking the financial resources of its competitors and to a company offering highly specialized goods and services.

_____are those born between 1946 and 1964 and are a popular segment to target because of their numbers and income levels. * a. Baby boomers b. Generation X c. Generation Y d. Tweens

a. Baby boomers

Placing a product at a certain point or location within a market in the minds of prospective buyers is known as _____. * a. positioning b. social referencing c. value engineering d. optimizing

a. positioning

.Starbucks marketing itself as "Premium coffee" is an example of a positioning strategy that is based on _____. * a. product class b. product users c. product life cycle stage d. product homogeneity

a. product class

Which of the following is a basic requirement for effective market segmentation? * a. The firm must avoid focusing on consumer-dependent variable, such as discretionary income, while conducting market segmentation. b. The market segment must present measurable purchasing power and size. c. The company must expand beyond its marketing capabilities to capture those market segments that have reached the maturity stage in the product life cycle. d. The company must target a large number of small market segments so that they can develop effective strategies to appeal to them.

b. The market segment must present measurable purchasing power and size.

A frequent flyer program used by an airline is an example of _____. * a. segmentation by benefits sought b. brand loyalty segmentation c. psychographic segmentation d. socioeconomic segmentation

b. brand loyalty segmentation

Japanese automaker, Subaru, generates more than half of its sales in just four states (Alaska, Colorado, Maine, and Washington). These states constitute Subaru's: * a. primary market. b. core region. c. secondary market. d. capital region.

b. core region.

A technology company that makes computers for professional use is trying to segment its customers. The company asked some professional computer users to evaluate the importance of various computer attributes that influence their purchase decisions and then used this data to segment the consumers based on similar response patterns. This is an example of segmentation by: * a. brand loyalty. b. usage rates. c. expenditure pattern. d. benefits sought.

b. usage rates.

Which of the following products would be the best choice to be marketed using an undifferentiated marketing strategy? * a. Luxury automobiles b. Healthy snack foods c. Table salt d. Imported wine

c. Table salt

LuLuLemon Athletica, which specializes in athletic wear for women, recently launched a website featuring Ivivva, a new line of athletic and dance clothing for girls. Based on the information given in this example, LuLuLemon Athletica is using _____ segmentation to segment its markets. * a. geographic b. psychographic c. demographic d. core based

c. demographic

In the process of market segmentation, once the market potential of the segments has been estimated, the next step is to: * a. develop a marketing mix. b. develop a relevant profile for each segment. c. forecast probable market share. d. seek strategies to enter the market.

c. forecast probable market share.

A firm that divides its customers into homogeneous groups based on their locations is said to be practicing _____ segmentation. * a. psychographic b. product-based c. geographic d. demographic

c. geographic

Marketers applying a positioning strategy want to: * a. make their product look as much like the market leader as possible. b. emphasize a product's unique advantages and differentiate it from competitors' options. c. identify the different product attributes desired by different market segments. d. target only the loyal users of the product.

c. identify the different product attributes desired by different market segments.

The division of the total market into smaller, homogenous groups is called _____. * a.Customer aggregation b. market capitalization c. market segmentation d. brand segmentation

c. market segmentation

A consumer goods company segments its markets on the basis of purchase patterns of their customers. The company groups its consumers who regularly buy their product into heavy, moderate, and light users, and nonusers. This segmentation approach is an example of _____. * a. segmentation by benefits sought b. geographic segmentation c. segmentation by usage rates d. distributive segmentation

c. segmentation by usage rates

The revised VALS segmentation system categorizes consumers based on _____. * a. religious affiliations b. political views c. self-motivation d. social values

c. self-motivation

Repositioning

changing the position it holds in the minds of prospective buyers relative to the positions of competing products.

_____ defines consumer groups according to variables such as gender, age, income, occupation, education, sexual orientation, household size, and stage in the family lifecycle. * a. Geographic segmentation b. End-use segmentation c. Product-based segmentation d. Demographic segmentation

d. Demographic segmentation

The tagline used by Walmart, "Save money. Live better" is an example of a positioning strategy that is based on _____. * a. quality b. attributes c. product users d. competitors

d. competitors

While researching on the idea of opening his own health club, Tom learned that there are 11 million health club members in the United States, and 90 percent of them are between the ages of 18 and 49. They prefer to exercise with people of their own sex and majority of them are urban dwellers. During the process of market segmentation, this information is most likely to be used by Tom for: * a. observational analysis. b. marketing research. c. forecasting total market potential. d. developing a market segment profile.

d. developing a market segment profile.

Before beginning the market segmentation process, a firm should: * a. select target market segments. b. forecast total market potential. c. forecast market share. d. identify bases for segmenting markets.

d. identify bases for segmenting markets.

Four steps in the market segmentation process

develop a relevant profile for each segment; forecast market potential;forecast probable market share; select specific market segment

Positioning map

provides a valuable tool in helping managers position products by graphically illustrating consumers' perceptions of competing products within an industry.

Positioning

seeks to put a product in a certain position, or place, in the minds of prospective buyers.

Micromarketing

targeting potential customers at a very basic level, such as by ZIP code, specific occupation, or lifestyle.

Four basic strategies for reaching target markets.

undifferentiated marketing; differentiated marketing;concentrated or niche marketing;