MAR3023 CH9

The third step of the market segmentation process is to develop a(n) _________ grid and estimate the size of the markets.

market-product

Mass customization is one of several ______ strategies

segmentation

The 80/20 rule is a concept suggesting that ______.

80 percent of a firm's sales are obtained from 20 percent of its customers`

While the percentages may not hold in a particular industry, the ______ rule suggests that a small fraction of customers provide most of a firm's revenues.

80/20

Which two statements are true of product positioning?

It is in relation to competitive products. It exists in the mind of the consumer.

______ is the increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently

Organizational synergy

How does the level of competition affect the attractiveness of a market segment?

The less competition there is, the more attractive the segment is.

A firm wants to identify how each of its segments responds to each of its offerings in order to select which market to target. What tool would help the firm accomplish this task?

a market-product grid

What analytical tool is used to display, in two dimensions, the locations of products or brands in the consumer's mind?

a perceptual map

What criteria are used to select target markets?

amount of competition for the segment cost of reaching the segment expected growth of segment

Demographic, psychographic, and geographic are ______.

bases to segment consumer markets

Usage rate is a variable used in ______ segmentation

behavioral

Where prospective customers buy, what benefits they seek, and how frequently they buy provide the bases for _________ segmentation.

behavioral

Mass customization is a step beyond a ________ strategy, because although the latter allows for good choice with quick delivery, it does not allow customers unlimited options for features.

build to order

Mass customization is a step beyond a _________ strategy, because although the latter allows for good choice with quick delivery, it does not allow customers unlimited options for features

build to order

When a business's own new product or new chain is stealing customers and sales from its older, existing products it is known as ______.

cannibalization

Product repositioning refers to ______.

changing the place a product occupies in a consumer's mind relative to competitive products

A marketer has various groups to target but notices that the needs of the various segments aren't very different. What should the marketer do in this instance?

combine the various groups into fewer segments

Product positioning relies on _________ evaluations of a product's important attributes.

consumers'

What components are taken into consideration when calculating customer lifetime value?

customer loyalty the costs required to serve customers customer usage rate

The original target customer from Zappos.com had which two characteristics?

customers who want a large selection of shoes customers that value free return policies

Because more than half of all U.S. households are made up of only one or two persons, Campbell's packages meals with only one or two servings, which is an example of ________ segmentation.

demographic

Crest toothpaste markets its fruit flavored toothpaste to children, and its whitening toothpaste to adults. This is an example of ______ segmentation.

demographic

After a marketer has identified a group with specific needs and benefits, the marketer should then

develop specific marketing actions that will satisfy that groups' particular needs

When an organization produces only a single product and attempts to sell it to two or more market segments, it avoids which costs?

developing and producing several versions of the product

In head-to-head positioning a company positions its product to compete directly against competitor's products, while ________ positioning allows for more indirect competition.

differentiation

Potential for increased profit and similarity of needs of potential buyers within a segment are criteria used to ______.

form market segments

the variables that are typically used in demographic segmentation

gender income marital status

When Macy's promotes and sells different apparel based on the location of its retail stores is it an example of ______ segmentation.

geographic

What are the four bases used to segment consumer markets?

geographic demographic behavioral psychographic

Dollar Rental Car, Avis, and Hertz compete directly on similar attributes in the same target market, with ________ positioning.

head to head

Customer lifetime value is higher for ______.

heavy users

The 80/20 rule helps marketers recognize the importance of

heavy users

Market segments are the relatively ________ groups of prospective buyers that result from the market segmentation process

homogenous

What two outcomes result from effective market segmentation?

identifying specific marketing mix actions forming meaningful groupings

The fundamental reason a business firm engages in market segmentation is to

increase its sales and profits

What two questions should you answer affirmatively before you proceed with segmentation?

is segmentation possible? would segmentation be worth doing?

A business goes to the trouble and expense of segmenting its marketing when

it expects that it will increase sales and profits

A product differentiation strategy should achieve which of the following

it should help consumers perceive the product as being different and better than competing ones

After developing a market-product grid and estimating market sizes, the marketer should select ______.

its target markets

What is a variable used in psychographic segmentation?

lifestyle

A _________ is a framework to relate the market segments of potential buyers to products offered or potential marketing actions

market product grid

A _____ is a framework to relate the market segments of potential buyers to products offered or potential marketing actions

market-product grid

Tailoring goods or services to the tastes of individual customers on a high volume scale is a segmentation strategy known as

mass customization

Two specific segmentation strategies are to identify either 1: one product or 2: multiple products that can serve

multiple market segments

When expenses are greater than the potentially increased sales from segmentation, a firm should

not attempt to segment its market

A balance between satisfying a customer's individual wants and achieving ________ benefits a firm's attempts at product differentiation and segmentation.

organization synergy

Head-to-head and differentiation are two approaches to ______.

positioning

A market-product grid shows the relationship of market segments either to products offered or to ______.

potential marketing actions by an organization

Both of these types of synergies are available in business, but focusing on one may come at the expense of the other.

product and marketing

The _________ strategy involved a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products

product differentiation

In what two ways are markets segmented based on behavioral segmentation?

product features usage rate

John is a supporter of environmental issues. He is constantly examining the "green" credentials of the products he purchases. It may be very effective to reach John with marketing actions based on ________ segmentation.

psychographic

Personality traits, lifestyles, and needs of prospective customers provide the bases for _________ segmentation.

psychographic

A business firm should ________ its markets so it can respond more effectively to the needs of its potential buyers, which should result in increased sales and profits

segment

Developing a market product grid is a step in the _______ process

segmenting and targeting

Developing a market-product grid is a step in the ______ process.

segmenting and targeting

A market product grid shows various product offerings and

segments of prospective buyers

Market size and compatibility with the organization's objectives and resources are two of the criteria used to ______.

select target markets

The next step after developing a market-product grid and estimating market sizes in the segmentation process is to ________.

select target markets

Which three factors should a marketer consider when forming market segments?

simplicity and expected growth of the market potential for increased profit potential of a marketing action to reach a segment

The market-product grid can be used to identify both product and market ________ that may be available.

synergies

The final step of the segmentation process is to ______.

take marketing actions to reach the target markets

The segmentation and targeting process should result in ______.

the development of an action plan in the form of a marketing program

The first step in positioning a product using a perceptual map is to identify ______.

the important attributes of the product

Ideally, a positioning statement should identify which three things?

the target market and needs satisfied the product's unique benefits the category of the firm that the product belongs to

Each market segment consists of people who are relatively similar to each other in terms of

their consumption behavior

When a firm's product is near a competitor's product on a perceptual map, these products have head-to-head positioning, meaning ______.

they compete on similar attributes in the same target market

At the drive-up menu for his favorite fast food restaurant, Jake notices the menu is listed in categories: breakfast items, lunch items, dinner items and dessert items. Why would the fast food chain organize its menu in this way?

to make it easier for customers to relate to the categories based on the time of day they are purchased

When it comes to selecting target markets, the best product cannot be successful, no matter how large the target market is, if that segment is ______.

too expensive or impossible to reach

The quantity consumed or patronage during a specific period is referred to as ______.

usage rate

One main purpose of a perceptual mapping exercise is for the firm to see where competitors are positioned in the consumer's mind, and ______.

where the firm is in relation to the competition