BA 370 Chapter 9
After evaluating each market segment's attractiveness, the next step in the STP process is Blank______. Multiple choice question. contacting consumers negotiating with retailers beginning production selecting a target market
selecting a target market
Another term for self-concept is Blank______. Multiple choice question. self-selection self-reflection self-image self-awareness
self-image
The overriding desires that drive how a person lives his or her life are ______. Multiple choice question. mile markers self-perceptions self-values lifestyles
self-values
Individuals in different segments should have Blank______ within the segment and Blank______ across the segments. Multiple choice question. targets; positioning similarities; differences similarities; familiarity differences; similarities
similarities; differences
A firm using a concentrated segmentation strategy selects a(n) Blank______ target market and focuses all its energies on providing a product to fit that market's needs. Multiple choice question. large single individualized diverse
single
True or False: A firm assesses attractiveness of a target market and its own competencies using a SWOT analysis. True false question.TrueFalse
t
True or False: Firms must be able to identify who is within their markets to be able to design products or services to meet customer needs. True false question.TrueFalse
t
Psychographics is a segmentation method that delves into how consumers actually Blank______ themselves. Multiple choice question. spend money on relate to describe position
describe
Firms using a(n) ? targeting strategy direct their efforts to several market segments with distinct brands and product offerings for each segment.
differentiated
differentiated targeting strategy
A strategy through which a firm targets several market segments with a different offering for each.
Undifferentiated
A firm produces basic commodities like sugar, milk, and packaged ice.
Micromarketing
A florist designs bouquets for a bride and five attendants.
undifferentiated targeting strategy (or mass marketing)
A marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups.
concentrated targeting strategy
A marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that market's needs.
market basket analysis
A mathematical modeling technique that utilizes millions of customer purchases, often referred to as big data (discussed in Chapter 10), to determine an association between a group of items that customers purchase at the same time and place into their actual or virtual market basket. This analysis enables the firm to classify customers into behaviorally oriented market segments.
psychographic segmentation
A method of segmenting customers based on how they spend their time and money, what activities they pursue, and their attitudes and opinions about the world in which they live.
behavioral segmentation
A segmentation method that divides customers into groups based on how they use the product or service. Some common behavioral measures include occasion and loyalty.
Which of the following is an example of geographic segmentation? Multiple choice question. A diaper company sends direct mailers to individuals or couples that have recently had children. A solar panel installation company targets its web advertisements to individuals who have expressed an interest in environmental friendliness. A ski and snowboard equipment manufacturer markets its goods in states that have snowy mountains and ski resorts. A razor blade manufacturer sends samples of its products to 14-year-old males.
A ski and snowboard equipment manufacturer markets its goods in states that have snowy mountains and ski resorts.
occasion segmentation
A type of behavioral segmentation based on when a product or service is purchased or consumed.
micromarketing
An extreme form of segmentation that tailors a product or service to suit an individual customer's wants or needs; also called one-to-one marketing.
Concentrated
An infomercial firm sells a gadget to better fry and flip eggs in cooking.
Suppose that Coca-Cola were to divide its market up into segments based on the amount of soda consumers drink (heavy, medium, and occasional soda drinkers). What type of segmentation does this represent? Multiple choice question. Behavioral Demographic Occasion Benefit Loyalty
Behavioral
______ segmentation forms market segments based on the way consumers use a product, such as more frequently or with greater loyalty. Multiple choice question. Behavioral Lifestyle Benefit Substantial
Behavioral
What type of segmentation categorizes consumers on the basis of the outcomes they hope to derive from a product or service? Multiple choice question. Behavioral Geodemographic Benefit Psychographic
Benefit
When marketers combine segmentation methods, which approaches do they typically use to design a product or service? (Choose every correct answer.) Multiple select question. Benefits Geography Lifestyles Demographics
Benefits Lifestyles
How does developing descriptions of each market segment help firms? (Choose every correct answer.) Multiple select question. By identifying differences across market segments By identifying similarities within market segments By determining the most attractive market segments By revealing similarities across market segments
By identifying differences across market segments By identifying similarities within market segments
? segmentation variables include age, income, and gender.
Demographic
When marketers seek to evaluate market attractiveness, what must they do first? Multiple choice question. Develop a positioning strategy Determine whether the segment is worth pursuing Develop a perceptual map Secure a marketing communications license
Determine whether the segment is worth pursuing
If a handbag manufacturer offers three different purses (a budget-conscious version, a slightly higher-end version, and a luxury version) to three different target markets, which targeting strategy is it using? Multiple choice question. Concentrated Micromarketing Undifferentiated Differentiated
Differentiated
perceptual map
Displays, in two or more dimensions, the position of products or brands in the consumer's mind.
Which of the following steps are part of the segmentation, targeting, and positioning process? (Choose every correct answer.) Multiple select question. Evaluating segment attractiveness Establish strategy or objectives Increasing benefits Selecting target market Develop the marketing plan
Evaluating segment attractiveness Establish strategy or objectives Selecting target market
self-values
Goals for life, not just the goals one wants to accomplish in a day; a component of psychographics that refers to overriding desires that drive how a person lives his or her life.
When establishing its overall segmentation strategy or objectives, what must the firm keep in mind? (Choose every correct answer.) Multiple select question. Its current situation Its past performance Its mission and objectives Its target market
Its current situation Its mission and objectives
A clothing company that offers a special line of maternity clothing for women to wear specifically during pregnancy engages in which form of segmentation? Multiple choice question. Psychographic Loyalty Occasion Geographic
Occasion
What is used to display, in two or more dimensions, the positions of products or brands in the consumer's mind? Multiple choice question. VALS framework Product graph Ideal position Perceptual map
Perceptual map
Differentiated
Proctor and Gamble offers Pantene, Head and Shoulders, Aussie, and Wella shampoos.
Multiple Choice Question Which of the following is NOT a market segmentation approach? Multiple choice question. Product Geographic Behavioral Benefit Demographic
Product
Which of the following are marketing segmentation approaches? (Choose every correct answer.) Multiple select question. Collaborative Psychographic Geographic User Benefit
Psychographic Geographic Benefit
value
Reflects the relationship of benefits to costs, or what the consumer gets for what he or she gives.
What analytical method does a firm typically employ to assess the target market and its own competencies? Multiple choice question. Target market buying power analysis Ratio analysis Profit and loss analysis SWOT analysis
SWOT analysis
______ is the image people ideally have of themselves. Multiple choice question. Lifestyle Self-value Self-concept Self-selection
Self-concept
loyalty segmentation
Strategy of investing in loyalty initiatives to retain the firm's most profitable customers.
Firms position products based on which of the following? (Choose every correct answer.) Multiple select question. Symbols Salient attributes Psychographics Demographics Value
Symbols Salient attributes Value
Which of the following is an example of occasion segmentation for a chocolate maker? Multiple choice question. The company sells white, milk, and dark chocolate to serve different taste preferences. The company offers some of its chocolates in heart-shaped boxes for Valentine's Day. The company prices its chocolates differently in different geographic areas. The company sells both regular and sugar-free chocolate.
The company offers some of its chocolates in heart-shaped boxes for Valentine's Day.
demographic segmentation
The grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and education.
geodemographic segmentation
The grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristics.
benefit segmentation
The grouping of consumers on the basis of the benefits they derive from products or services.
geographic segmentation
The grouping of consumers on the basis of where they live.
self-concept
The image a person has of himself or herself; a component of psychographics.
Which of the following are examples of self-values? (Choose every correct answer.) Multiple select question. The need for a sense of belonging The need for self-respect The need for self-fulfillment The need for self-indulgence
The need for a sense of belonging The need for self-respect The need for self-fulfillment
What marketing opportunities does a firm have when customer needs are unmet? (Choose every correct answer.) Multiple select question. The opportunity to change customer needs The opportunity to identify new market segments The opportunity to create new products or services The opportunity to augment existing products or services
The opportunity to create new products or services The opportunity to augment existing products or services
ideal point
The position at which a particular market segment's ideal product would lie on a perceptual map.
market positioning
The process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.
value proposition
The unique value that a product or service provides to its customers and how it is better than and different from those of competitors.
lifestyle
The way a person lives his or her life to achieve goals.
After establishing overall objectives, why do marketers then use a particular method or combination thereof to identify and describe market segments? Multiple choice question. To help understand the profile of each segment To articulate the vision of the marketing strategy clearly To validate preconceived notions of each market segment To eliminate less desirable consumers from the customer base
To help understand the profile of each segment
True or False: Lifestyles are a component of psychographic segmentation that describes how an individual lives his or her life to achieve goals. True false question.TrueFalse
True
psychographics
Used in segmentation; delves into how consumers describe themselves; allows people to describe themselves using those characteristics that help them choose how they occupy their time (behavior) and what underlying psychological reasons determine those choices.
Which situation represents an important marketing opportunity for creating new products or altering existing products? Multiple choice question. When customers have little need or desire for the firm's offerings When customers are satisfied with only the firm's offerings When customer needs are not completely met When customers' needs are met by the firm and its competitors
When customer needs are not completely met
The third step of the market segmentation process is to evaluate segment ? , which is based on such criteria as its profitability, responsiveness, and reachability.
attractiveness
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 Blank______ segmentation. Multiple choice question. behavioral occasion multiple psychographic
behavioral
When a firm offers customers a loyalty card for car washes, the firm is employing loyalty segmentation, one of two common types of ? segmentation.
behavioral
Benefit segmentation is often effective because it is relatively easy to portray a product's or service's benefits in the firm's Blank______ strategies. Multiple choice question. communication relationship supply chain sales
communication
Market positioning is done so that the target customers have an understanding of the product offered by the company in comparison with Blank______ products. Multiple choice question. compatible conceptual previous competing
competing
By selecting only senior women golfers as its target and focusing all of its efforts on making products that fit these women's needs, a firm is using a(n) ?targeting marketing strategy.
concentrated
A perceptual map is used in developing a positioning strategy in order to display the position of the products or brands in the Blank______ mind. Multiple choice question. consumer's brand marketer's retailer's competitor's
consumer's
Marketers sometimes take into account that as people age, their needs change. This is an example of Blank______ segmentation. Multiple choice question. benefit demographic psychographic geographic
demographic
Multiple Choice Question Age, gender, and income are all examples of Blank______ segmentation variables. Multiple choice question. geographic demographic psychographic benefit
demographic
When Kellogg's introduced Special K, the marketing communications about the product were meant to primarily appeal to women. This is an example of Blank______ segmentation. Multiple choice question. lifestyle demographic geodemographic psychographic
demographic
It is important to ensure that segments are distinct from one another because too much overlap between segments means that Blank______. Multiple choice question. the target market segment is definitely too small distinct marketing strategies are not necessary to meet segment members' needs there is always a need to have many diverse market segments targeted the target market segment is probably too large
distinct marketing strategies are not necessary to meet segment members' needs
Place the steps in the segmentation, targeting, and positioning process in their conventional order, with the first step at the top.
establish strategy or objectives. use segmentation methods. evaluate segment attractiveness. select target market. identify and develop positioning strategy.
Foster Designs sells different types of clothing for men and women. To ensure the retail store locations contain the appropriate assortment of clothing for the typical customer living in the area, the firm should use Blank______ segmentation. Multiple choice question. psychographic geodemographic demographic benefit behavioral
geodemographic
Segmentation that uses a combination of geographic, demographic, and lifestyle characteristics to classify consumers who may patronize stores close to their neighborhood is called Blank______ segmentation. Multiple choice question. behavioral benefit geodemographic regional
geodemographic
Grouping a market by country, region (northeast, southeast), or areas within a region is known as ? segmentation.
geographic
McDonald's promotes coffee in cold, rainy Seattle and seasonal seafood meals, including lobster and crab, in select markets like New England. This is an example of Blank______ segmentation. Multiple choice question. psychographic demographic benefit geographic
geographic
Market differences across regions, states, or neighborhoods create opportunities for Blank______. Multiple choice question. geodemographic segmentation psychographic segmentation geographic segmentation concentrated segmentation
geographic segmentation
Market positioning involves a process of defining the marketing mix variables so that the target customers Blank______. Multiple choice question. are persuaded to seek additional product information have a clear, distinctive understanding of the product know the ideal point of all products in the market know the price of the product
have a clear, distinctive understanding of the product
The component of segmentation that is determined by how we live our lives to achieve goals is called Blank______. Multiple choice question. self-image self-worth value lifestyle
lifestyle
In light of the high costs associated with finding new customers who feel that a brand can meet their relevant needs and are willing to exclude competitors, today's companies are using Blank______ segmentation and investing in initiatives to retain their most profitable customers. Multiple choice question. benefit usage loyalty occasion
loyalty
The process of dividing the market into groups of customers who have different needs, wants, or characteristics is called Blank______. Multiple choice question. market positioning customer marketing market segmentation target marketing
market segmentation
Because each segmentation method has its unique advantages and disadvantages, most firms often employ Blank______ methods. Multiple choice question. basic individual multiple simple
multiple
? segmentation is a very specific form of behavioral segmentation by which segments are formed based on when a product or service is purchased or consumed.
occasion
Ellie's Deli offers good sandwiches and fast service to its lunchtime customers from a nearby university. It also delivers the same sandwiches packaged with side dishes as part of its catering services. This is an example of Blank______ segmentation. Multiple choice question. reachable occasion loyalty demographic
occasion
Loyal customers buy a substantial amount from the firm. These loyal customers are the most Blank______ in the long term to the firm. Multiple choice question. successful heavy users similar to each other profitable
profitable
While some segmentation methods rely on external descriptions and factors to break down the market, Blank______ segmentation relies on consumers' descriptions of themselves. Multiple choice question. benefit demographic psychographic geographic geo-demographic
psychographic
The Blank______ strategy must be consistent with and derived from the firm's mission and objectives, as well as its current situation—its strengths, weaknesses, opportunities, and threats (SWOT). Multiple choice question. accounting demographic segmentation shareholder
segmentation
Firms position their products based on methods such as Blank______. Multiple choice question. demographics, geodemographics, psychographics, and benefits the value proposition, salient attributes, symbols, and competition product, price, place, and promotion undifferentiated positioning, concentrated positioning, differentiated positioning, and micropositioning
the value proposition, salient attributes, symbols, and competition
When a firm sells products that meet the needs of many kinds of customers, it will most likely use a(n) Blank______ targeting strategy because there is little need to formulate different strategies for different groups. Multiple choice question. undifferentiated concentrated differentiated one-to-one
undifferentiated
When everyone is considered a potential user of its product, a firm should use a(n) Blank______ targeting strategy. Multiple choice question. undifferentiated concentrated specialized micro-marketing
undifferentiated