Chapter 9: Market Segmentation, Targeting, and Positioning EXAM #2

Which of the following are characteristics of the original targeted segment for Zappos.com?

- Consumers that value free return policies - Consumer who want a large selection of shoes

Which factors should the marketer consider when forming market segments?

- Difference of needs of buyers among segments - Potential for increased profit - Simplicity and cost-effectiveness of assigning potential buyers to segment - Potential of a marketing action to reach a segment

Two things that are true of product positioning

- It is in relation to competitive products - It exists in the mind of the consumer

Examples of different consumer segments in the fast food industry

- Value seekers - Families with young children

Which of the following are criteria used to select target markets?

- cost of reaching - competitive positition - expected growth

_____ segmentation groups consumers on the basis of some observable actions such as usage rate or importance of product features

Behavioral

_____ is the component of psychographic segmentation related to the aspirations of prospective customers

Lifestyle

A market-product grid shows the relationship of market segments to products offered or to

potential marketing actions by an organization

In most segmentation situations, as is the case for Apple's computer products,

product lines and market segmentation segments overlap

John is a supporter of environmental issues. He is constantly examining the "green" credentials of the products he purchases. It may be very effective to reach John with marketing actions based on _____ segmentation

psychographic

Using breakfast, lunch, dinner, and snacks as categories helps consumers to _____ the products offered by a fast food brand that may have dozens of choices

relate to

In a weaker economy, some high-end brands may seek to become more attractive to additional customer segments. One way to do this is to ____ the brand

reposition

Product _______ involves changing the place a product occupies in a consumer's mind relative to competitive products

repositioning

Mass customization is one of several ______ strategies

segmentation

A business firm _____ its markets so it can respond more effectively to the wants of groups of potential buyers, which should result in increased sales and profits

segments

A market-product grid shoes various offerings and

segments of prospective buyers

The market-product grid can be used to identify both product and market _____ that may be available

synergies

Segmentation and targeting are the Lind between the buyers' needs and

the organization's marketing program

______ segmentation groups consumers according to some objective physical, measurable, or other classification attribute of prospective

Demographic

Manufacturing a product only when there is an order from a customer is known as

build-to-order

A firm attempting to reach a target market of day commuters, persuading them to buy its fast food products, should advertise via

buses and flyers on cars in parking lots

When McDonald's makes a point to show consumers with diverse ethnic background on its commercials, it uses _____ segmentation

demographic

Segmentation based on gender, age, or occupation in would be considered

demographic segmentation

Demographic segmentation is useful when marketing products and services where men and women behave

differently

The more segmentation a company pursues, the more ____ it will incur. Hence, each segment must be _____ on its own

expenses; profitable

Segmentation based on the size of city in which prospective customers live would be considered

geographic segmentation

Market segments are the relatively ____ groups of prospective buyers that result from the segmentation process

homogenous

What are two approaches to positioning?

Head-to-head and differentiation

The process of aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is called

market segmentation

The third step of the market segmentation process is to develop a(n) ______ grid and estimate the size of the markets

market-product

While the percentages may not hold in a particular industry, the _____ rule suggests that a small fraction of customers provide most of a firm's revenues

80/20

When Apple focuses its marketing efforts on a single segment to which it promotes all of its relevant products, it uses _____ synergies

marketing

The purpose of developing a market-product grid is to trigger _____ to increase sales and profits

marketing actions

A _____ map can be used to help managers see how consumers perceive competing products or brands

Perceptual

The next step after developing a market-product grid and estimating sizes in the segmentation process is to _____ appropriate target markets

Select

To create a perceptual map, evaluations of important attributes of the relevant products are collected from whom?

Target customers