marketing 3000 lesson 4

E. defining some broad product-markets where you may be able to operate profitably

1. Which of the following should be the first step in market segmentation? A. deciding what new product you could develop B. evaluating what segment(s) you currently serve C. finding a demographic group likely to use your products D. listing features of your current products E. defining some broad product-markets where you may be able to operate profitably

homogeneous within

1st criteria for segmenting a broad product market; the customers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions

heterogeneous between

2nd criteria for segmenting a broad product market; the customers in different segments should be as different as possible with respect to their likely responses to marketing mix variables and their segmenting differences

substantial

3rd criteria for segmenting a broad product market; the segment should be big enough to be profitable

operational

4th criteria for segmenting a broad product market; the segmenting dimensions should be useful for identifying customers

goal positioning

At some point, brand growth may require building on the competition based positioning by attempting to show how the brand relates to the consumer's goals. This involves inferring what motivates customers to use a brand then positioning the brand so that its essence implies goal attainment. The process by which this can be achieved is called laddering up, and the product of laddering up is called brand essence.

E. purchase relationship

Behavioral segmenting dimensions (rather than demographic) include which of the following? A. family life cycle B. occupation C. education D. social class E. purchase relationship

E. create a competitive position

Dove moisturizer promises to moisturize skin 45 percent more effectively than Olay. What does Dove plan to accomplish with this claim? A. target a market B. create a superordinate category C. establish category membership D. segment a market E. create a competitive position

A. one

Generally, how many benefits should be used in a broadcast advertisement? A. one B. two C. three D. none E. as many as possible

number of benefits

In developing a brand position, it is important to limit the ____ ___ ____ that are presented, particularly when broadcast media are used to transmit the message. Conveying a benefit often requires an elaborate demonstration that not only depicts the benefit but also provides consumers a reason to belive the benefit.

category essence

Like brand essence, ____ ______can be achieved by relating the brand to other objects that imply the essence of the category that is related to some goal. However, any device that makes salient the connection between the category and some goal can be used to deliver ___ ____.

combiners

_____ try to increase the size of their target markets by combining two or more segments. They look at various submarkets for similarities. They try to extend or modify their basic offering to appeal to their combined customers with just one marketing mix. A combined target marketing approach may help achieve some economies of scale. Less investment than developing different marketing mixes for different segments--making it especially attractive for firms with limited resources. Too much is risky.

qualifying dimensions

______ ______ are those relevant to including a customer type in a product-market. Core needs

Determining dimensions

______ _________ are those that actually affect the customer's purchase of a specific product or brand in a product-market. can be very specific

product type, customer needs, customer types, geographic area

a complete product-market definition includes a four part description: what, to meet what, for whom, where. THese are referred to as product market "names" because managers label their markets when they think, write, or talk about them.

market

a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services

generic market

a market with broadly similar needs--and sellers offering various, often diverse, ways of satisfying those needs. ____ _____ description looks at markets broadly and from a customer's point of view. Sellers in this market have to focus on the needs the customer wants satisfied--not on how one seller's product is better than that of another producer. Quite different product types may compete with each other in this market.

product-market

a market with very similar needs and sellers offering various close substitute ways of satisfying those needs

market segment

a relatively homogenous group of customers who will respond to a marketing mix in a similar way

market segmentation

a two step process of naming broad product-markets and segmenting those broad product-markets in order to select target markets and develop suitable marketing mixes.

combined target market approach

combining two or more submarkets into one larger target market as a basis for one strategy

homogenous within, heterogeneous between, substantial, operational

criteria for segmenting a broad product market

product type

describes the goods and/or services that customers want

points of difference

in competition based positioning, how a brand dominates other members of its category

benefit selection

in competition based positioning, to identify potential benefits that might serve as a point of difference, it is useful to identify accepted consumer beliefs.

category membership

in competition based positioning, where a product belongs based on its qualities and benefits

Normative benefit

in selecting a benefit, marketers must assess whether the benefit motivates consumption or is a _____ _____--benefits that customers say are important because of societal standards rather than because these benefits actually influence behavior

segmenting

marketing-oriented managers think of ______ as an aggregating process--clustering people with similar needs into a "market segment"

customer (user) needs

refer to the needs the product type satisfies for the customer. basic level--usually provide functional benefits for basic or emotional needs. correctly defining the needs relevant to a market is crucial and requires a good understanding of customers.

customer type

refers to the final customer or user of a product type. choose a name that describes all present possible. should identify the final consumer or user of the product type, rather than the buyer if they are different.

brand essence

related to some consumer goal

multiple target market approach

segmenting the market and choosing two or more segments, then treating each as a separate target market needing a different marketing mix

single target market approach

segmenting the market and picking one of the homogeneous segments as the firm's target market

niche marketing

selecting only one segment to serve is called single-segment strategy, or ___ ____.

identify the current and potential wants that exist within a market

the first step in market segmentation; carefully examine the market to determine the specific needs being satisfied by current offerings, the needs current offerings fail to adequately satisfy, and the needs that may not yet be recognized. This may involve interviewing and/or observing consumers or firms to determine their behavior, levels of satisfaction, and frustrations.

identify characteristics that distinguish among the segments

the second step in market segmentation; focus on what consumers who share a particular want have in common to distinguish them from other segments in the market that have different wants

brand position

the way a product is viewed relative to the competition

C. always when marketing products or services

When should market segmentation be practiced? A. only when several segments are targeted B. only when serving multiple markets C. always when marketing products or services D. only when there are no costs involved E. when marketing products but not services

A. beverage

Which category for colas is superordinate? A. beverage B. Diet Vanilla Coke C. carbonated beverage D. Coca-Cola E. diet cola

determine the size of the segments and how well they are being satisfied

third step of market segmentation; estimate how much demand each segment represents and the strength of the competition. This will help identify which segments are worth pursuing.

Psychographic segmentation

type of segmentation; examining attributes related to how a person thinks, feels, and behaves. Frequently included in this are personality dimensions, life style characteristics (activities, hobbies, opinions, etc.) and consumer values.

behavioral segmentation

type of segmentation; segmenting based on product or service-related behaviors, particularly the benefits that a consumer desires to obtain, and their usage rate.

demographic segmentation

type of segmentation; subdividing markets into segments based on age, gender, family life-cycle stage, income, and education. Segments are based on these characteristics because they are often strongly related to demand and are relatively easy to measure.

geographic segmentation

type of segmentation; subdividing markets into segments based on location (regions, counties, cities). This is done because consumers' wants and product or service usage are often related to one or more subcategory.

geographic area

where a firm competes, or plans to compete for customers. understanding these boundaries can suggest new opportunities

C. The product-market segment should be large enough to be profitable.

Which of the following is the criterion for a "good" product-market segment to be considered substantial? A. Customers in the product-market segment should be as similar as possible in regards to their reactions to marketing mix variables. B. Customers in the product-market segment should have substantially different reactions to marketing mix variables. C. The product-market segment should be large enough to be profitable. D. The product-market segment should be small enough to cater to unique individual customers. E. The segmenting dimensions should be helpful in identifying customers and deciding on marketing mix variables.

B. It may be more difficult because critical data may not be available or dependable.

Which of the following is true of segmenting international markets, as contrasted with segmenting domestic markets? A. It is more complicated because local decisions and operations must be handled by natives, who seldom have a feel for their markets. B. It may be more difficult because critical data may not be available or dependable. C. It usually involves less risk because more potential target markets are available. D. It usually involves fewer segmenting dimensions. E. All of the above statements are true.

E. All of the above are true.

Which of the following statements is true about the clustering techniques that can be used in segmenting? A. Computers are often used in clustering approaches today, largely replacing intuition and judgment formerly relied upon. B. Clustering could examine such dimensions as demographic characteristics, attitudes toward a product, and past buying behavior. C. Clustering tries to find similar patterns within sets of data. D. Results from clustering sometimes suggest new or better marketing strategies. E. All of the above are true.

D. I or II

Which of the following three methods would a "segmenter" use to develop market-oriented strategies in a broad product-market? I. single target market approach II. multiple target market approach III. combined target market approach A. I only B. II only C. III only D. I or II E. II or III

customer relationship management (CRM)

With _____ ______ ______, the seller fine tunes the marketing effort with information from a detailed customer database. This usually includes data on a customer's past purchases as well as other segmenting information.

laddering up

___ _____ is based on the notion that in developing a product point of difference, two types of characteristics are considered. One is attributes and image, and the other is benefits.

laddering down

____ _____ involves giving credence to the assertion that a brand delivers some benefit. ____ _____ often occurs in the context of a laddering up campaign as a means of reinforcing the foundation on which brand essence is built. More generally, ___ _____ is used to provide a reason for consumers to believe a benefit in the context of competition-based positioning.

clustering techniques

_____ _______ try to find similar patterns within sets of data.

Segmenters

_____ aim at one or more homogeneous segments and try to develop a different marketing mix for each segment. They believe that aiming at one, or some, of these smaller markets makes it possible to provide superior value and satisfy them better. This then provides greater potential profit for the firm.

Profit

_____ is the balancing point between combining and segmenting.

Positioning

_____ refers to how customers think about proposed or present brands in a market. Without that, its hard to differentiate.