Chapter 9: Segmentation

How does developing descriptions of each market segment help firms? (Select all that apply.)

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

A resort advertisement that contains images of groups having fun on the beach or lounging by the pool appeals to which component of psychographics?

self-concept

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

What is the first step marketers take in deriving a perceptual map?

Determining consumers' perceptions of the product in relation to competitors' products

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

For which of the following companies would demographic segmentation be the least useful?

an athletic shoe manufacturer

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

______ 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

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

List the following in order of the segmentation, targeting, and positioning process, with the first step at the top.

establish strategy or objectives describe segments evaluate segment attractiveness select target market identify and develop positioning strategy

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

When establishing its overall segmentation strategy or objectives, what must the firm keep in mind? (Select all that apply.)

its current situation its mission and objectives

Which of the following are key factors to keep in mind when marketers focus their assessments on the potential profitability of market segments, both currently and future.

market growth, competitiveness and 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

The process of dividing the market into groups of customers who have different needs, wants, or characteristics is called ______. These groups of buyers might want products or services designed especially for them.

marketing segmentation

Psychographics study how people ______ 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 ______.

predict consumer wants and needs poorly

Which of the following are criteria considered by marketers to evaluate whether or not a segment is worth pursuing? (Select all that apply.)

profitable reachable identifiable

Persuasive communications and accurate product distribution are techniques used by firms to ______ market segments.

reach

McDonald's often targets families by showing families having a good time in its advertising. This appeals to a family's ______.

self-concept

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

Individuals in different segments should have obvious ______ within the segment and greater ______ across the segments.

similarities; differences

If a market is too ______ and its buying power ______, it won't generate sufficient profits or be able to support the marketing mix activities.

small;insignificant

Because consumers' tastes shift, markets are not ______ and competitors must therefore ______ 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 ______.

substantial

Firms position their products based on methods such as ______.

the value proposition, salient attributes, symbols, and competition

STP analysis occurs during which step of the marketing planning process?

third

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 everyone is considered a potential user of its product, a firm should use a(n) ______ targeting strategy.

undifferentiated