Marketing Chapter 9
Profiling market segments Attitudes Activities Interests Opinions
Attitudes
During which step in the recommended procedure for developing brand positioning strategies will perceptual mapping be employed? Determine the competitive set Determine position relative to competitors Identify important areas of competitive difference Develop marketing mix to convey the position All of the above
Determine position relative to competitors
The requirement that market segments be "actionable" includes all of the following except: Firms have the financial resources to target the market segments desired Firms' employees possess the necessary skill sets to capture sales in the desired segments There exist adequate media channels to communicate with customers in targeted segments There exist proper distribution channels to move products into the hands of consumer in targeted segments Firms can effectively differentiate their products from those of competitors in targeted segments.
Firms can effectively differentiate their products from those of competitors in targeted segments.
In 2013 approximately 60% of CAT's sales of heavy construction equipment came from international markets. CAT's global markets are divided into North America, Latin America, Asia-Pacific, Canada, and EAME (Europe, Africa, Middle East) classifications. These broader areas are further segmented into smaller locals to identify the best ways to compete against local and other global competitors. CAT is apparently employing a _______________ segmentation approach. Demographic Global NAICS Geographic Company characteristics
Geographic
The nested segmentation process employed by Caterpiller to segment its markets is based on: Hierarchical structures analysis Proprietary sophisticated statistical methodologies Perceptual mapping Managerial judgement None of the above
Hierarchical structures analysis
The use of the family lifecycle for segmenting markets for some products is particularly attractive because: Segments are easy to identify and target Individual stages in the lifecycle contain consumers with similar demographic characteristics and consumption preferences Only first and last stages in the lifecycle require different marketing mix approaches The stages in the lifecycle do not change over time making the scheme consistently useful to apply.
Individual stages in the lifecycle contain consumers with similar demographic characteristics and consumption preferences
___________ is the upper bound on sales for all firms in a given industry of a product sold to a specific market in a specified period of time. Sales potential Profit potential Actual demand Market potential Customer potential
Market potential
___________ can be viewed as the process of aggregating "similar" consumers or organizations based on similarities in their consumption, demographic, attitudinal, and psychographic characteristics. Market definition Customer aggregation Market opportunity analysis Market segmentation Market targeting
Market segmentation
_______________ is the process of subdividing heterogenous consumer or organizational markets into more homogeneous submarkets. Market definition Customer aggregation Market opportunity analysis Market segmentation Market targeting
Market segmentation
Once a firm identifies relevant market segments within a larger, more heterogeneous market it then must determine which market segment or segments to pursue. This is the process of: Market segmentation Market targeting Market definition Market aggregation Market Positioning
Market targeting
_____________ is a useful tool for determining brand positions in consumers' perceptual space. The tool employs survey data in which a sample of consumers rate a number of brands on key attributes. A computer algorithm then is used to map the brands relative to one another and to the rating attributes employed in the survey. Mind mapping Brand mapping Brand-attribute mapping Competitive mapping Perceptual mapping
Perceptual mapping
Which of the following is not an advantage to mass-marketing? A large pool of potential customers exists Scale economies in production and marketing can potentially be obtained Scale economies, if achieved, can yield low prices Firms still can differentiate their brands from those of competitors via creative promotion Individual customers' wants and needs can be more directly targeted.
Individual customers' wants and needs can be more directly targeted.
To effectively segment markets, several conditions must be met. Which is the exception? Segments should be "homogeneous within" and "heterogeneous between" Segments must be large enough to be profitable Segments must be accessible via communications and distribution channels Firms must have adequate resources to target these segments Members of segments must be concentrated geographically to be actionable.
Members of segments must be concentrated geographically to be actionable.
The smallest operational market segment is referred to as a: Macro-segment Micro-segment or niche Aggregate market Mass market
Micro-segment or niche
Which of the following are commonly employed to profile market segments once they are created? Psychographics Mediagraphics Geographics All of the above
All of the above
A single firm's potential unit or dollar sales for a specific product to a specific target segment during a specified period of time is that firm's: Profit potential Market potential Demand potential Customer potential Sales potential
Sales potential
Jennifer is marketing manager for a major consumer goods firm. She is interested in determining if market opportunity exists for the sales of a new brand of organic, gluten free line of ready-made dinners. Jennifer knows that the market for ready-made dinners is very large and heterogeneous and wants to more precisely pinpoint those customers within this market that are most likely to respond favorably to the new brand. Apparently, Jennifer is interested in: How to best segment the ready-made dinner market Determining the best position for her brand Determining the range of subcultural groups that exists in the ready-made meal market How to best promote her new brand All of the above
How to best segment the ready-made dinner market
Which of the following is not a likely way of segmenting organizational markets? Industry type by employing NAICS or SICs Industry size assessed, for example, by number of employees Technologies employed in firms Geographic locations Industry (product) life cycle stage
Industry (product) life cycle stage
The category of variables used in profiling market segments that tells marketers the best places to put their communications about their products and brands is: Demographics Lifestyles Self-concepts Attitudes Mediagraphics
Mediagraphics
Colorado Rocky Mountain Winery bottles a line of wines sold at a number of price points, based on the quality of the wine. Based on studies of its customer base, the winery knows that customers prefer different qualities of wines depending on when they are consumed. Its cheaper wines are targeted to casual consumption situations, while the more expensive wines are expected to be consumed on special happenings. Colorado Rocky Mountain Winery is apparently segmenting its customers based on: Usage rate Benefits desired Lifestyle Usage occasion Self-concept
Usage occasion
With respect to market segmentation, the 80-20 principle has been applied to segmenting markets based on: Benefits desired Usage occasion Lifestyle Demographics Usage rates
Usage rates
Consider the overall market for beverages in the US. This market consists of both alcoholic and non-alcoholic drinks. Within the alcoholic portion of the market there are a large range on different types of alcoholic drinks, including wines, beers, hard liquors, etc. In addition, each of these later alcoholic lines of beverages can be further subdivided. For example, beers can be, as a minimum, divided into ales and lagers, with many subcategories within these broader groups. If one is seeking to enter the beer brewing business and is conducting an MOA, they might define the category of ales to be: The mass market or total product-market A macro-segment A micro-segment A simple market segment A niche
A macro-segment
Comparative ads that attempt to show consumers that their brand is somehow superior to brands of other companies are employing a___________ positioning strategy Comparative Competitive Benefit Lifestyle Attribute
Competitive
Wendy's, in its classic "Where's the Beef" advertising campaign, emphasized the superior size of their burgers relative to McDonald's and Burger King. Making claims of direct superiority is the most common _____________ positioning strategy. Comparative Competitive Brand Usage occasion Benefit
Competitive
______________ positioning entails using customers' existing perceptions of other brands as the basis from which to create and eventually differentiate the firm's brand image. Comparative Competitive Brand Usage occasion Benefit
Competitive
Which of the following is not a step in the recommended process for developing a brand positioning strategy? Define the firm's mission Determine the competitive set Determine position relative to competitors Identify important areas of competitive difference Develop marketing mix to convey the position
Define the firm's mission
AquaWorld is a full service dive shop based at the Park Royal in Cozumel. Dive shop management knows that its clientele possess a diverse range of experience (or lack there-of) in diving. Some clients need a lot of hand-holding, prefer to follow a guide while under water, and usually rent their equipment. In contrast the more experienced divers tend to prefer to venture out on their own and generally use their own equipment. AquaWorld has effectively created packages with appropriate pricing for both types of customer. Apparently, AquaWorld is using a ______________ strategy. Undifferentiated targeting Differentiated targeting Concentrated targeting Custom targeting Focused targeting
Differentiated targeting
Black & Decker produces a number of product lines of power tools. The Black & Decker line targets DIYS (Do It Your Self) consumers, the DeWalt line, a premium higher priced brand, is geared more to professional builders. Porter-Cable, a recent acquisition, is positioned similarly to Black & Decker. The Mac Tools brand targets professional automotive mechanics. Black & Decker treat each line and its associated customers as distinct target markets toward which they direct unique marketing programs. Black & Decker is employing a _____________ strategy. Undifferentiated targeting Differentiated targeting Concentrated targeting Custom targeting Focused targeting
Differentiated targeting
To reverse a downward trend in sales, Mazda introduced its MPV minivan. Mazda positioned its van as a cross between a standard minivan and a sport utility vehicle. Mazda knew that it needed to use a market segmentation strategy to correctly target the MPV. The first thing Mazda had to do when it segmented the automobile-buyer market was to: Identify the current and potential needs of the market (assuming that a benefit segmentation base is desirable). Develop several prototypes Identify the characteristics that distinguish each segment Modify the company's mission statement to bring it in line with its new segmentation strategy Do test marketing to determine what customers in the segments really like.
Identify the current and potential needs of the market (assuming that a benefit segmentation base is desirable).
Most consumers know that they must exercise to get into better physical condition. But many worry about what they look like while exercising. Some consumers also may want to exercise at odd times of the day when most gyms are closed. Advertisers of home fitness equipment have taken particular advantage of these facts. They are, in part, probably using ________________ segmentation. Geographic Life-style Usage occasion Usage-rate Demographic
Life-style
When using the product-based approach to Hierarchical Structures analysis for segmenting markets managers usually start by identifying the overall product-market in which the firm competes and then working down to: The niche in which the firm competes The specific micro-segments in which the firm competes The branded product-market in which the firm competes The macro-segment in which the firm competes
The branded product-market in which the firm competes
Candice is the marketing manager for a consumer goods firm. Based on results from a market segmentation study, Candice has decided to segment the firm's market into 'usage rate' or 'consumption rate' segments. The results of the study identified a sizable 'heavy half' that Candice decided to target because she has always assumed that the most profit potential exists with this segment. Candice may be guilty of committing __________________ . The majority fallacy Marketing myopia The 80-20 principle Statistical sampling error None of the above
The majority fallacy
Gatorade AM is targeted to consumers who desire an energy drink in the morning instead of traditional coffee or tea. Gatorade is clearly trying to increase consumption of its brand by targeting additional _____________ segments. Usage rate Usage occasion Benefit Lifestyle Self-concept
Usage occasion
The step in the market segmentation process in which marketers employ a combination of demographic traits, mediagraphics, psychographics, and attitudes to characterize segment members is the ____________ stage. Positioning to market segments Profiling market segments Creating market segments Evaluation of market segments Targeting market segments
Profiling market segments
_________ positioning emphasizes the brand's ability to satisfy specific needs that customers may have. Comparative Competitive Brand Usage occasion Benefit
Benefit
The large, heterogeneous market from which specific submarkets (market segments) are drawn is also called the: Mass market Total product-market Grand market Aggregate market Both a and b above
Both a and b above
Because data are easily collected, readily available in secondary sources, and often are highly correlated with consumer wants and needs, __________________ is the most commonly employed segmentation base used in marketing applications. Life style Benefit Usage occasion Demographic Geographic
Demographic
Which of the following is not one of the three steps in the market segmentation process described in the text? Create market segments using the segmentation "bases" that have been identified. Profile customers in market segments. Estimate demand in segments that have been identified. Identify segmentation bases or variables to be used.
Estimate demand in segments that have been identified.
Some firms find it attractive to target "niches" because niches are typically larger and, therefore, attract more competitors. TRUE FALSE
FALSE
Which of the following least justifies the claim that demographic segmentation bases the most widely employed of segmentation bases? Demographic traits are often highly correlated with consumption behaviors and preferences Demographic traits are easily identified and measured Demographic information is readily available in secondary sources Demographic characteristics can be used to segment markets and simultaneously profile them Few differences exist across different geographic areas for the relationships between key demographic traits and consumption behaviors.
Few differences exist across different geographic areas for the relationships between key demographic traits and consumption behaviors.
Some firms find it attractive to target "niches" because: There are more potential customers in niches. Niches are typically larger and, therefore, attract more competitors. Firms can gain a competitive advantage by 'specializing' on serving the more narrowly defined needs of customers in niches. Customers in niches tend to possess more variation in wants, needs, and demographic characteristics making it that much easier to develop marketing programs that will fit the requirements of at least some customers in the niche. None of the above
Firms can gain a competitive advantage by 'specializing' on serving the more narrowly defined needs of customers in niches.
Since Texas and a handful of other states have legislated incentives that encourage their states' drivers to buy alternative fuel vehicles, Ford Motor Company has introduced just for those states a full-size truck that runs on natural gas. This is an example of ________________ segmentation. Demographic Behavioral Usage-rate Geographic Psychographic
Geographic
Consumers within market segments should be more similar to one another on key consumption-related characteristics than they should be with consumers in other segments. This requirement for effectively segmenting markets is referred to as: Actionable Large, measurable, profitable Homogeneous within, heterogeneous between Accessible Differentiated
Homogeneous within, heterogeneous between
The positioning strategy usually employed for products such as cigarettes which deliver no real benefits to consumers tend to focus on using ___________ dimensions. Lifestyle Income Age Usage Occasion Consumption or usage rate
Lifestyle
A product or brand ____________ is the mental representation of that product or brand in consumers' minds. Position Relationship Attitude Representation Symbol
Position
When marketers ____________ brands they are essentially creating personalities for those brands telling to consumers what the brand stands for with respect to such things as important attributes, benefits, and competing brands. Market Target Promote Position Endorse
Position
____________ involves creating a personality for a brand that makes a statement to consumers about what the brand stands for with respect to such things as important attributes, benefits, and competing brands. Marketing Targeting Promoting Positioning Endorsing
Positioning
Gatorade is normally promoted as a sports drink for replenishing lost electrolytes after a hard workout. However, Gatorade has aired ads that position the brand for use at other times. Some Gatorade ads promote its use during cold and flu seasons as an aid in replenishing lost fluids due to illness. Gatorade is employing a usage occasion positioning strategy. TRUE FALSE
TRUE
Jeremy runs a SCUBA diving shop in Cozumel, Mexico. Jeremy has tailored his diving operation to serve serious divers preferring deeper diving profiles and longer dives. His marketing program is geared specifically to attract this type of diver which, apparently, is his: Customer base Market segment Target audience Target customer Target Market
Target market
Gatorade is normally promoted as a sports drink for replenishing lost electrolytes after a hard workout. However, Gatorade has aired ads that position the brand for use at other times. Some Gatorade ads promote its use during cold and flu seasons as an aid in replenishing lost fluids due to illness. Gatorade is employing a ______________ positioning strategy. Usage occasion Competitive Brand Lifestyle Benefit
Usage occasion
In the early 80s a highly ambiguous ad for Heineken Beer with the caption, "Come to think of it, I'll have a Heineken." The picture was of a cold bottle of Heineken with water dripping down its length. The positioning strategy suggested in this ad was ____________ positioning. Usage occasion Competitive Brand Lifestyle Benefits
Usage occasion
When marketers segment consumer markets into heavy, light, and moderate users of products they are employing a ____________ segmentation scheme. Usage rate Usage occasion Benefit or attribute Demographic Psychographic
Usage rate
Which stage in the family lifecycle is associated with consumers who prefer sports cars, recreational products, entertainment, and fashion clothing? Young married couples with no children Young married couples with children Middle-aged with no dependent children Young singles Older singles
Young singles
Which stage in the family lifecycle is associated with consumers who prefer sports cars, recreational products, entertainment, and fashion clothing? This is also the first stage in the lifecycle. oung married couples with no children Young married couples with children Middle-aged with no dependent children Young singles Older singles
Young singles
Which stage in the family lifecycle is the fastest growing, on limited income, with preferences for smaller food portions, smaller and more efficient apartments, less expensive childcare, and time-saving appliances? Young singles Young singles (or divorced) with children Middle-aged with children Middle-aged no dependent children Middle-aged divorced with children
Young singles (or divorced) with children
The term "psychographics" refers to consumers' __________ Personality Attitudinal Behavioral Lifestyle a and d above
a and d above
Consider the overall market for beverages in the US. This market consists of both alcoholic and non-alcoholic drinks. Within the alcoholic portion of the market there are a large range on different types of alcoholic drinks, including wines, beers, hard liquors, etc. In addition, each of these later alcoholic lines of beverages can be further subdivided. For example, beers can be, as a minimum, divided into ales and lagers, with many subcategories within these broader groups. If one is seeking to enter the beer brewing business and is conducting an MOA, within the category of ales exists the subcategory of English ales which might be considered: The mass market or total product-market A macro-segment A micro-segment or niche A simple market segment
A micro-segment or niche
Within the fitness market, dedicated bodybuilding clubs exist that amount to "sweat shops" serving the needs of amateur and professional bodybuilders. These clubs focus on traditional free weights with limited machines, support facilities, and services. This market represents: A niche A target market A macro market segment A market opportunity A market position
A niche
With respect to segmenting consumer markets by consumption rates, it is usually assumed that: About 50% of the market will be heavy users, the remaining 50% will consist of light or moderate users. A small proportion of consumers (e.g. 20%) will be heavy users and account for the majority of the product's consumption A large proportion of consumers (e.g.75% or more) will be heavy users and account for the majority of the product's consumption About 50% of the market will be heavy users, 25% will be moderate users, 15% will be light users and the remaining 10% will be sporadic users.
A small proportion of consumers (e.g. 20%) will be heavy users and account for the majority of the product's consumption
There are a number of common sources of key "determinant dimensions" employed to help define positioning strategies. Which of the following is not one of those sources? Attributes employed during the perceptual mapping process Image dimensions between competing brands Benefit or product attribute differences between competing brands Service differences between competing brands Customer differences associated with competing brands
Attributes employed during the perceptual mapping process
The requirement that market segments be "actionable" means that: Firms have the financial resources to target the market segments desired Firms' employees possess the necessary skill sets to capture sales in the desired segments There exist adequate media channels to communicate with customers in targeted segments There exist proper distribution channels to move products into the hands of consumer in targeted segments All of the above
All of the above
To effectively segment markets, the following conditions must be met: Segments should be "homogeneous within" and "heterogeneous between" Segments must be large enough to be profitable Segments must be accessible via communications and distribution channels Firms must have adequate resources to target these segments All of the above
All of the above
Which of the following are advantages of mass-marketing? A large pool of potential customers exists Scale economies in production and marketing can potentially be obtained Scale economies, if achieved, can yield low prices Firms still can differentiate their brands from those of competitors via creative promotion All of the above
All of the above
Which of the following are likely ways of segmenting organizational markets? Industry type by employing NAICS or SICs Industry size assessed, for example, by number of employees Technologies employed in firms Geographic locations All of the above
All of the above
Which of the following is true of "niches" as market segments? They are the smallest operational market segment Consumers in niches are more similar to one another in terms of purchase-related characteristics than consumers in other market segments Consumers within a given niche tend to respond similarly to a given marketing program (marketing mix) Niches tend to attract less competition than other types of market segments. All of the above
All of the above
A mass-marketing strategy is most likely to work when: The product being marketed is in the early stages of its product life cycle The product being sold is not easily differentiated from other brands of the same product Little competition exists from other brands Market segments exist but are too small to effectively target individually All of the above are true
All of the above are true
The firm's primary purpose for segmenting larger markets into more homogeneous submarkets in which members share common consumption, demographic, psychographic, and attitudinal characteristics is that members of such segments tend to: Prefer similar products possessing similar product features, attributes, and benefits. Respond similarly to a given promotional messages React similarly to the same pricing strategies Prefer to buy through the same distribution channels All of the above are true
All of the above are true
Coke points out in advertising for caffeine-free Diet Coke that the "best things in life are free," meaning free of both sugar and caffeine. The implied positioning strategy is: Lifestyle Benefit Attribute Usage Occasion Consumption or usage rate
Attribute
When marketers determine the types of communications and promotional media consumers prefer they are assessing their: Demographics Lifestyles Self-concepts Attitudes Mediagraphics
Mediagraphics
Which of the following is least characteristic of "niches" as market segments? They are the smallest operational market segment Consumers in niches are more similar to one another in terms of purchase-related characteristics than consumers in other market segments Because of their small sizes, it is tough to establish a differential advantage over competing brands. Consumers within a given niche tend to respond similarly to a given marketing program (marketing mix) Niches tend to attract less competition than other types of market segments.
Because of their small sizes, it is tough to establish a differential advantage over competing brands.
To reverse a downward trend in sales, Mazda introduced its MPV minivan. Mazda positioned its van as a cross between a standard minivan and a sport utility vehicle. Mazda knew that it needed to use a market segmentation strategy to correctly target the MPV. One of the segments that Mazda targeted was automobile owners who wanted to be able to tow their boats and campers behind their minivans. Which segmentation base is implied? Psychological Geographic Benefit Demographic Product
Benefit
____________ positioning is typically used for products that are purchased for their form utility or functionality. Consumer non-durable goods such as toothpaste, soap, household cleaning supplies, canned goods, and personal care products are commonly positioned in this manner. Comparative Competitive Brand Usage occasion Benefit
Benefit
Which of the following segmentation bases best illustrates how market segments were created in Russell Haley's toothpaste segmentation study which segmented toothpaste users into the categories of worriers, sensories, socialbles, and general? Age Lifestyle Income Benefits Self-concept
Benefits
Which of the following segmentation bases is most consistent with the tenets of the marketing concept? In other words, if you are a strong advocate of the marketing concept, which of the following segmentation bases will be most consistent with your "philosophy of doing business?" Age Lifestyle Income Benefits Self-concept
Benefits
Gillette advertised its line of Mach 3 razors as the first triple-bladed razor. Which type of segmentation base is implied? Lifestyle Age Income Benefits or product attributes Gender
Benefits or product attributes
Jeremy runs a SCUBA diving shop in Cozumel, Mexico. Jeremy has tailored his diving operation to serve serious divers preferring deeper diving profiles and longer dives. His marketing program is geared specifically to attract this type of diver. Jeremy is using which approach to target marketing? Undifferentiated targeting Differentiated targeting Concentrated targeting Custom targeting Focused targeting
Concentrated targeting
Geographic segmentation bases are typically employed for some products because: Such bases are easy to use Consumer living in different geographic areas, for some products, may have similar wants and needs and other consumption related characteristics There is a strong correlation between consumers' geographic locations and brand preferences The same marketing mix can be employed across a number of geographically defined market segments
Consumer living in different geographic areas, for some products, may have similar wants and needs and other consumption related characteristics
"Market positioning" as a component of the marketing management process involves: Determining the best physical location for products on the retail shelf Creating the desired image for the brand in the minds of the firm's customers Identifying and satisfying the wants and needs of customers in identified target markets Designing competitive marketing programs consisting of product, price, promotion, and distribution None of the above
Creating the desired image for the brand in the minds of the firm's customers
From a customer-oriented perspective, the ideal basis for segmenting a market is with: Product usage rates Customer's desired benefits or needs Customer demographics Where customers live When customers tend to use a product
Customer's desired benefits or needs
Product categories most appropriate for segmenting consumers of those products into usage rate segments include: Consumer appliances, such as TVs and microwave ovens Designer clothes and jewelry Fast food, snacks, and beverages Automobiles and other forms of transportation All are equally appropriate for usage rate segmentation
Fast food, snacks, and beverages
Consumers in some European countries prefer to buy top-loading clothes washers, while consumers in other Europeon countries prefer front-loaders. In developing its strategy for marketing to these nations, LG had to implement a ____________ segmentation to make sure that its washers suited the tastes of the consumers in each of the European countries. Demographic Behavioral Usage-rate Geographic Psychographic
Geographic
Suppose a chain of hair salons decides to locate its stores only in the suburbs. This would be an example of the use of a _________ segmentation base. Demographic Behavioral Usage-rate Geographic Psychographic
Geographic
The managerial judgment-based approach to market segmentation in which managers employ as series of segmentation bases in sequence to achieve a workable segmentation scheme is called: Hierarchical structures analysis Proprietary sophisticated statistical methodologies Perceptual mapping Managerial judgement None of the above
Hierarchical structures analysis
With respect to requirements for effectively segmenting markets, ________________ means that consumers within markets are similar to one another on key consumption-related characteristics. Actionable Homogeneous within Heterogeneous between Accessible Differentiated
Homogeneous within
When using __________ positioning, firms attempt to develop associations between the brand and some desirable human state of existence by exploiting relationships that already exist in consumers' minds between the desirable state of existence and the consumer's ideal or actual self-concept. Comparative Competitive Brand Lifestyle Benefit
Lifestyle
____________ positioning is most common for products such as expensive perfumes, colognes, designer clothes and jewelry, and cigarettes. Comparative Competitive Brand Lifestyle Benefit
Lifestyle
Inventories of AIO-related questions on surveys are employed to identify groups of consumers with common AIO profiles. These groups typically can be treated by marketers as: Lifestyle segments Geographic market segments Mass markets Demographic segments Benefit segments
Lifestyle segments
The term AIO stands for a series of measures designed to assess consumers' ____________. Self-concepts Brand attitudes Demographic traits Lifestyles Cultural values
Lifestyles
_______________ is the process of subdividing heterogenous consumer or organizational markets into more homogeneous submarkets in which members share common consumption, demographic, psychographic, and attitudinal characteristics. Market definition Customer aggregation Market opportunity analysis Market segmentation more homogeneous submarkets in which members share common consumption, demographic, psychographic, and attitudinal characteristics. Market targeting
Market segmentation more homogeneous submarkets in which members share common consumption, demographic, psychographic, and attitudinal characteristics.
The process of evaluating a series of market segements to determine which segment or segments the firm should pursue is called: Market segmentation Market targeting Market definition Market aggregation Market Positioning
Market targeting
Price competition between firms is most likely with which of the following target marketing strategies? "Niching" Mass-marketing Macro-marketing Micro-marketing Target marketing
Mass-marketing
Organizations in the same industry usually perform similar business functions and face many of the same general production, marketing, personnel, or purchasing problems. These similarities make it possible to employ ____________ for segmenting such organizational markets. NAICS Geographic locatio Company size and number of employees Industry size
NAICS
____________ involves creating a personality for a brand that makes a statement to consumers about what the brand stands for with respect to such things as important attributes, benefits, and competing brands. Marketing Targeting Promoting Positioning Endorsing
Positioning
Lucas is marketing manager for Monster, a producer of energy drinks. A primary market segment targeted by Monster is the fitness market. Lucas estimates that the size of this market exceeds $6.3 billion per year. In addition, Lucas estimates that Monster can garner 12% of this market, worth about $.756 billion. The lower estimate of $.756 billion is ________ . The market potential Monster energy drinks The actual demand for Monster energy drinks The profit potential for Monster energy drinks Sales potential for Monster energy drinks Customer potential for Monster energy drinks
Sales potential for Monster energy drinks
Which of the following is not a category of variables commonly used to profile market segments once these segments are created? Demographics Psychographics Mediagraphics Satisfaction indexes Geographics
Satisfaction indexes
Those characteristics that allow marketers to define market segments and distinguish one market segment from another are called: Segmentation dimensions Segmentation bases Dimensioning variables Separation bases Segmentation characteristics
Segmentation bases
With respect to usage rate segmentation schemes, the heavy consumption segment is normally called: Heavy users The primary usage category The heavy consumption target The heavy half The major half
The heavy half
Lucas is marketing manager for Monster, a producer of energy drinks. A primary market segment targeted by Monster is the fitness market. Lucas estimates that the size of this market exceeds $6.3 billion per year. In addition, Lucas estimates that Monster can garner 12% of this market, worth about $.756 billion. The upper estimate of $6.3 billion is ________ . The market potential for all energy drinks The actual demand for all energy drinks The profit potential for all energy drinks Sales potential for all energy drinks Customer potential for all energy drinks
The market potential for all energy drinks
Consider the overall market for beverages in the US. This market consists of both alcoholic and non-alcoholic drinks. Within the alcoholic portion of the market there are a large range on different types of alcoholic drinks, including wines, beers, hard liquors, etc. In addition, each of these later alcoholic lines of beverages can be further subdivided. For example, beers can be, as a minimum, divided into ales and lagers, with many subcategories within these broader groups. If one is seeking to enter the beer brewing business and is conducting an MOA, they might define the entire beer market as: The mass market or total product-market A macro-segment A micro-segment A simple market segment A niche
The mass market or total product-market
Mass marketing (as contrasted with market segmentation) is most likely to be a viable strategy when: The market contains a large number of competitors, all of whom target one or more specific market segments within the overall product/market. The product is in the decline stage of its life cycle and competitors are systematically leaving the market. The product is in the introductory stage of the life cycle. Few competitors exist, the product is rather undifferentiated, and consumers' wants & needs are rather basic or simple with respect to the product in question. The product is highly differentiated, with characteristics and benefits that appeal to a limited number of people in the overall product/market. None of the above
The product is in the introductory stage of the life cycle. Few competitors exist, the product is rather undifferentiated, and consumers' wants & needs are rather basic or simple with respect to the product in question.
Rural grocery stores often stock products geared to the average customer in its market area. Management assumes there are negligible differences in needs between customers. Consequently, an "average" range of products will appeal to the most people. The implied target market strategy is: Undifferentiated targeting Differentiated targeting Concentrated targeting Custom targeting Mass targeting
Undifferentiated targeting
_____________ assumes that no viable differences exist among market segments. Firms treat the market as comprising a single segment and employ a single marketing mix approach that appeals to a broader customer spectrum. Undifferentiated targeting Differentiated targeting Concentrated targeting Custom targeting Mass targeting
Undifferentiated targeting
Bayer Aspirin promotes its Baer PM brand as "the only night-time aspirin that relieves pain and gently helps you sleep." Bayer is positioning its brand using: Lifestyle Income Age Usage occasion Consumption or usage rate
Usage occasion
For many people, soft drinks are coffee substitutes; an alternative morning "wake-up" call. Recognizing this trend, Coke offered its local bottlers a canned advertising program titled "Coke in the Morning." The advertising was essentially employing ______________ positioning. Usage occasion Competitive Brand Lifestyle Benefit
Usage occasion
The requirement that market segments be "large, measureable, and profitable" requires that firms be able to: Profile the consumers within the segment in terms of their demographics, psychographics, attitudes, and other characteristics Be able to estimate the size of the market segment in terms of numbers of potential customers, market potentials, and sales potentials Be able to precisely identify the geographic locations of customer segments a and b above All of a, b, and c above
a and b above
