Chapter 7
A colleague wants to evaluate the attractiveness of a particular market segment. Which of the following would be good advice for your colleague? A. Carefully consider the degree of competition and ease of entry into the segment. B. A segment is attractive if there are substitute products available. C. Fast growing segments are always attractive. D. If a segment is larger than others it should always be targeted. E. If there are powerful buyers in the segment it will drive prices up.
A. Carefully consider the degree of competition and ease of entry into the segment.
Which of the following statements regarding positioning is correct? A. Positions must adapt over time to meet changing consumer needs. B. Once established, a strong position is never lost. C. Once a positioning strategy is identified, it is typically very easy to implement. D. Abruptly changing a position is an effective strategy when consumer needs change. E. Establishing a position usually takes a very short amount of time.
A. Positions must adapt over time to meet changing consumer needs.
What is positioning?
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Which base of segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product?
Behavioral
Which of the following statements regarding demographic segmentation is correct? A. Demographic segmentation divides a market based on age, personality, and benefits sought. B. Demographic variables are difficult to measure. C. Consumer needs, wants, and usage rates vary closely with demographic variables. D. Demographics segmentation uses lifestyle as the primary measure for segmentation. E. Demographics are rarely used anymore for market segmentation.
C. Consumer needs, wants, and usage rates vary closely with demographic variables.
There is a growing segment of people who want food that tastes good and is also good for them. This healthy-living segment represents which segmentation base?
Lifestyle
What are the three broad targeting strategies used by marketers?
Mass marketing, differentiated marketing, and micromarketing
__________ segmentation divides buyers into different segments based on lifestyle or personality characteristics.
Psychographic
Amazon and GEICO set themselves apart with their smooth-functioning direct delivery strategy referred to as __________ differentiation.
channel
If men and women respond similarly to the same marketing mix, they do not constitute distinct, identifiable segments. Gender would not be an effective base for segmentation in this example because the segments are not __________.
differentiable
The process of evaluating each market segment's attractiveness and selecting one or more market segments to enter is called __________.
market targeting
The step in designing a customer valuedash-driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market __________.
segmentation
Market __________ evaluates each market segment's attractiveness and selects one or more segments to serve.
targeting
Using a(n) __________ marketing strategy, a firm might decide to ignore market segment differences.
undifferentiated
The full mix of benefits on which a brand is differentiated and positioned is called a(n) __________.
value proposition