MARK3000 ch 9

"Why create a perceptual map?" asked David. Andreas, the senior marketing manager, gave him four reasons. Which of the following is NOT a valid reason?

"It's a way to show the position of the company throughout the product's life cycle."

Fiona wants to sell a local advertising calendar. There are 1,000 households in her community, and she estimates that 30 percent will buy a calendar. The printing company will charge a $100 setup fee, and calendars will cost $4.00 each to print. What price will she need to charge to cover all costs and make a $500 profit?

$6.00

The Lite beer commercial with the slogan, "less filling, tastes great," was based on __________ segmentation.

benefit

Toothpastes sold in supermarkets and pharmacies promise various results, such as whiter teeth, protection against gum disease, tartar control, or fresh breath. Toothpaste marketers are using __________ segmentation.

benefit

Social networking sites that compete directly with Facebook have a difficult time surviving; however, LinkedIn has survived by focusing on the needs of business professionals, who seek to network with colleagues, share their expertise, post online resumés, and look for new jobs. What segmentation method is LinkedIn using?

benefit segmentation.

The first step in the STP process is to

clearly articulate the firm's vision or marketing strategy objectives.

Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies.

concentrated

When Penguin Catering Services first opened, the owner decided to target only events at resorts in its geographic region. Penguin Catering was using a(n) __________ targeting strategy.

concentrated

The perceptions of __________ are being measured in a perceptual map.

consumers

Beer marketers know that high school educated, working-class males from the ages of 25 to 40 make an attractive market for their products. This is a __________ segment of the beer market.

demographic

NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of race fans were female. This is an example of __________ segmentation.

demographic

Talbots, an upscale women's clothing store, targets college-educated women between 35 and 55 years old with average household income of $75,000 or more. This is a form of __________ segmentation.

demographic

Television advertising has recently expanded to include mini-ads, which are short ads lasting five to ten seconds. These ads are most useful in advertising to men, since men are more likely than women to channel surf during commercial breaks. This type of advertising will be more useful to marketers engaged in __________ segmentation.

demographic

Psychographics is the segmentation method that delves into how consumers

describe themselves.

In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into Butterball turkeys. In the process, the company

differentiated its product.

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Adidas uses the different brands to pursue a(n) __________ strategy.

differentiated targeting

After assessing the market growth potential and market competitiveness for his company's baby products in Mexico, Harmon wanted to evaluate market access. To do this, Harmon would consider

ease of accessing or developing distribution channels and brand familiarity.

Education marketers have learned that the primary motivations of most nontraditional college students are self-respect and self-fulfillment. Understanding the values of this market segment allows marketers to

emphasize the benefits these consumers are looking for in a college education.

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to

evaluate the attractiveness of each segment.

Airlines were among the first retailers to embrace loyalty segmentation when they created

frequent flyer programs.

Marketers often create a special marketing mix for loyalty segments because these segments are

generally profitable.

Golden Years Vitamin Corporation targets consumers living in Florida who are over age 65. Golden Years is using __________ segmentation.

geodemographic

PRIZM and Tapestry divide and sort small geographic areas into categories using 60 or more demographic and lifestyle characteristics. These market research tools are examples of __________ segmentation.

geodemographic

Retail store chains often use __________ data to identify other locations with similar characteristics and purchasing behavior where it might make sense to open additional stores.

geodemographic

The phrase "birds of a feather flock together" captures the idea of __________ segmentation.

geodemographic

Let's Dish is a meal-preparation service operating in three states. Customers visit a Let's Dish store to select and partially prepare their meals, which are then packaged for the freezer. At home, the customer can pull a meal out of the freezer and warm it in the oven or microwave. If Let's Dish wanted to expand into new areas of the U.S., what segmentation method would probably be most useful in choosing new locations?

geodemographic segmentation.

Marketers often employ a combination of segmentation methods, using __________ to identify and target their customers, and __________ to design products and messages to appeal to them.

geodemographic segmentation; lifestyle or benefit segmentation

Kim's Kayak Tours initially identified active retirees living in the retirement community nearby as one of its target markets. Kim then tailored her service and marketing message to the interests and schedules of that audience. Kim initially used __________ segmentation and then used __________ segmentation.

geodemographic; lifestyle

Differences in weather and climate create opportunities for

geographic segmentation.

Within a perceptual map, a(n) __________ represents where a particular market segment's desired product would lie.

ideal point

Carlos has identified four potential market segments for his Rent-A-Nurse service. He will now compare the segments to see whether they are distinct from each other. Carlos is evaluating whether each segment is

identifiable

Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the firm has ever used. She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to

identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis.

Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation

is a more expensive method for identifying potential customers.

A differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market; this strategy

is likely more costly than an undifferentiated strategy.

Firms use a differentiated targeting strategy because

it helps to obtain a bigger share of the market.

Paul is considering psychographics as a way to segment the market for his small travel agency. This approach to segmentation offers him an advantage because

it is based on underlying reasons people make choices.

Demographic segmentation is segmentation based on all of the following EXCEPT

lifestyle

When Talbots, an upscale women's clothing store, tries to portray an image of "traditional, conservative, and with good taste," it is appealing to its target market's

lifestyle

One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify its business and

lower overall risk.

When Ron complained to his bank about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests. The branch management included Ron in its __________ segmentation.

loyalty

Alex has found that both commercial and residential real estate buyers respond positively to his marketing communication message. Alex has identified __________ that respond similarly to his marketing efforts.

market segments

When selecting a target market, firms will be most successful if they

match the firm's competencies with a market segment's attractiveness.

Corporate pilot fish are former employees who start a new business based primarily on contacts and contracts with their old company. A corporate pilot fish would probably pursue a __________ targeting strategy.

micromarketing

Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order shoes with custom color combinations. This is a form of

micromarketing

When Mr. How, a Pennsylvania-based discount lumber and hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in

misguided geographic segmentation.

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Having a variety of brands allows Adidas to

obtain a bigger share of the shoe market.

Godiva Chocolates produces specially decorated boxes of candies for Valentine's Day, Easter, and Christmas. This is an example of ________ segmentation.

occasion

Which of the following segmentation methods is being used when M&M's offers special wedding-themed packaging for customized M&M's (imprinted with the names of the bride and groom)?

occasion segmentation

A __________ is often used to illustrate the position of a firm's products or brands in consumers' minds.

perceptual map

Whenever Donald calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local business person and has been in business over twenty years. Donald is __________ his business relative to his competition.

positioning

We often see advertisements touting a product as being made with natural ingredients, or being long-lasting. Marketers using these types of promotions are positioning their products based primarily on

product attributes.

Caroline is assessing market growth, market competitiveness, and market access for each segment she has identified. Caroline is assessing the __________ of each potential market segment.

profitability

Regina wants to position her financial services company. Regina can position her services according to all of the following EXCEPT

profitability

A university using benefit segmentation and targeting students who want to get a degree quickly while still working full time would focus on

providing classes at convenient times and offering online courses.

Baby Boomers represent a huge demographic segment for travel marketers. Baby Boomers are also heavily motivated by self-fulfillment, which creates the possibility of __________ segmentation.

psychographic

VALS is the most widely used __________ segmentation tool.

psychographic

Marketers have found that __________ segmentation is often more useful for predicting consumer behavior than __________ segmentation.

psychographic; demographic

College students can be a less __________ market segment because students' media habits are quite diverse.

reachable

Ryan wants to sell personal website services to American soldiers in Afghanistan. Because of the difficulty of communicating with people in a war zone, Ryan may have trouble with this segment not being

reachable

With access to the Internet nearly universal in the United States, many potential market segments have become more

reachable

Gloria is opening an upscale women's clothing store in a growing suburban residential area. Gloria knows her target market is upper-income women living within twenty miles. She can't afford to purchase a PRIZM or Tapestry analysis, so she will most likely use __________ as a basis for targeting her market.

real estate values by subdivision

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate whether each segment is attractive relative to all of the following EXCEPT

realistic

For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's marketing mix. In other words. the market segment must be

responsive

The manager of Plantation River Country Club wanted members of the very upscale club to use the bar and dining facilities more frequently. He offered a two-for-one happy hour special but few members showed up. The manager did not have a grasp of what would make his target market

responsive

When Starbucks first opened, many critics suggested, "No one will pay $4.00 for a cup of coffee." Starbucks' critics suggested consumers would not be __________ to the company's offerings.

responsive

When evaluating the attractiveness of the segment, if a segment is expected to react positively to the firm's offering, we say that the segment is

responsive.

Geodemographic segmentation can be particularly useful for __________, because customers typically patronize stores close to their neighborhood.

retailers

Which of the following would NOT be used in calculating the profitability of a segment?

segment perceptions

When Victoria's Secret offers different product lines, such as its Pink line, it is trying to capture the market by

segmenting, targeting, and positioning.

Ronaldo wants to develop an Internet auction-based business and is working through the STP process. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Ronaldo now has to

select a target market.

Beverage companies often use television commercials with images of young people laughing and enjoying themselves on a beach or in a club. These images are designed to appeal to consumers' __________, suggesting "be like me."

self-concepts

To develop psychographic segments, the marketer must understand consumers'

self-values, self-concept, and lifestyles.

Overriding desires that drive how we live our lives are called

self-values.

Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power. Greta is concerned with whether the segment is

substantial

Almost all U.S. political candidates use some combination of red, white, and blue in their campaign posters. They are trying to position themselves in voters' minds using

symbols

One of the reasons marketers use loyalty segmentation is

the high cost of finding new customers.

In the Circles for a Successful Value Proposition framework, the value proposition is represented by

the intersection between customer needs/wants and the firm's product's benefits.

After assessing the market growth potential for his company's baby products in Mexico, Harmon wanted to evaluate market competitiveness. To do this, Harmon would consider

the number of competitors, entry barriers, and product substitutes.

Which of the following defines a value proposition?

the unique value that a product or service provides to customers

Whenever the president of the local public university promotes the institution, he emphasizes the university's price (much lower than neighboring private colleges) and high quality. He is positioning the institution based primarily on

the value proposition.

If values provide goals, and self-concept is the way we see ourselves, lifestyles are

the way we live our lives to achieve our goals.

For products like clothespins, which provide the same benefit for all consumers, marketers should probably use a(n) ________ strategy.

undifferentiated targeting

In the Circles for a Successful Value Proposition framework, the portion of the customer needs/wants circle that doesn't overlap with anything else represents

unmet customer needs/wants.

Marco was assigned to help create a positioning strategy for his employer's products based on product attributes. He should consider

what the target market would consider the most important features.

While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do NOT help marketers determine

what their customers need.

__________ segmentation is the segmentation method most directly related to value creation for consumers.

Benefit

__________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach.

Demographic

__________ is an extreme form of a targeting strategy.

Micromarketing

__________ involves defining the firm's marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of the firm's offerings relative to competitors' offerings.

Positioning

Paula is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will NOT specifically help her in this analysis?

The average number of school-age children in families sending a child to the day care center.

What is the best situation in the Circles for a Successful Value Proposition framework?

The firm's benefits overlap with customer needs/wants but not with competitors' benefits.

Which of these is NOT one of the main components of a value proposition?

The price of the product or service being offered.

For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting its marketing mix variables to give customers

a clear, distinctive, and desirable understanding of its products relative to competing products.

Segmentation, targeting, and positioning

are part of a firm's marketing strategy.

Jim wants to position his firm against his competitors. In doing so he should

avoid looking too much like the competitor so that he'd confuse the target segment.