Chapter 9 SB

After evaluating each market segment's attractiveness, the next step in the STP process is ______.

selecting a target market

Another term for self-concept is ______.

self-image

Individuals in different segments should have obvious ______ within the segment and greater ______ across the segments.

similarities; differences

The Gap clothing company has limited resources and must make efficient and effective decisions to focus its efforts on a specific portion of the market. The Gap would be advised to use ______ to narrow its focus on the segments that offer the best chance of success.

targeting

When Kellogg's introduced Special K, the marketing communications about the product were meant to primarily appeal to women. This is an example of ______ segmentation.

demographic

Age, gender, and income are all examples of _____________ segmentation variables.

demographics

______________ segmentation variables include age, income, and gender.

demographics

Psychographics is a segmentation method that delves into how consumers actually ________ themselves.

describe

Firms using a(n) ________ targeting strategy direct their efforts to several market segments with distinct brands and product offerings for each segment.

differentiated

How does developing descriptions of each market segment help firms? (Select all that apply.)

-By identifying differences across market segments -By identifying similarities within market segments

Which of the following steps are part of the segmentation, targeting, and positioning process? (Select all that apply.)

-Describing segments -Identifying strategy or objectives -Selecting target market 1. Establish Strategy or Objective 2. Use Segmentation methods 3. Evaluate segment attractiveness 4. Select target market 5. Identify and develop positioning

Which of the following steps are part of the segmentation, targeting, and positioning process? (Select all that apply.)

-Identifying strategy or objectives -Describing segments -Selecting target market

Demographic segmentation is the most common segmentation strategy because these segments are ____________.

-easy to identify -easy to reach

List the following in order of the segmentation, targeting, and positioning process, with the first step at the top.

1. Establish strategy or objectives 2. Describe Segments. 3. Evaluate segment attractiveness. 4. Select Target Market. 5. Identify and develop positioning strategy.

STP analysis occurs during which step of the marketing planning process?

3rd

Which of the following is an example of geographic segmentation?

A ski and snowboard equipment manufacturer markets its goods in states that have snowy mountains and ski resorts.

For which of the following companies would demographic segmentation be the least useful?

An athletic shoe manufacturer

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?

Behavioral

______ segmentation forms market segments based on the way consumers use a product, such as more frequently or with greater loyalty.

Behavioral

When marketers combine segmentation methods, which approach(es) do they typically use to design the product or service rather than to identify and target communications to their customers? (Select all that apply.)

Benefits Lifestyles

The easiest market segments to reach are those that have been segmented using which approach?

Demographic segmentation

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?

Differentiated

True or false: Once a firm selects a segmentation strategy, it should never be changed.

F

Grouping a market by country, region (northeast, southeast), or areas within a region is known as ________ segmentation.

Geographic

Which of the following are marketing segmentation approaches?

Geographic Demographic Psychographic Benefit Behavioral

What are the criteria used by marketers to evaluate whether a segment is worth pursuing or not?

Identifiable, substantial, reachable, responsive, profitable

Breakfast cereal manufacturers have separated the market into many segments. How does selecting a target market segment allow Kellogg's to maximize its chances of success in the cereal industry?

It allows the company to apply its specific competencies toward the most attractive market segment

A clothing company that offers a special line of maternity clothing for women to wear specifically during pregnancy engages in which form of segmentation?

Occasion

________ segmentation is a very specific form of behavioral segmentation by which segments are formed based on when a product or service is purchased or consumer.

Occasion

What is used to display, in two or more dimensions, the positions of products or brands in the consumer's mind?

Perceptual map

Which of the following is NOT a market segmentation approach?

Political

What analytical method does a firm typically employ to assess the target market and its own competencies?

SWOT analysis

_____ is the image people ideally have of themselves.

Self-concept

____ are goals for life, not just the goals one wants to accomplish in a day. They are the overriding desires that drive how a person lives his or her life.

Self-values

______ are goals for life, not just the goals one wants to accomplish in a day. They are the overriding desires that drive how a person lives his or her life.

Self-values

Which of the following are examples of self-values?

Sense of belonging Self-respect Self-fulfillment

Firms position products based on which of the following? (Select all that apply.)

Symbols Salient attributes Value

True or False: Lifestyles are a component of psychographic segmentation that describes how an individual lives his or her life to achieve goals.

T

Which of the following is an example of occasion segmentation for a chocolate maker?

The company offers some of its chocolates in heart-shaped boxes for Valentine's Day.

True or false: A firm assesses attractiveness of a target market and its own competencies using a SWOT analysis.

True

_____ is a psychographic tool owned and operated by Strategic Business Insights (SBI) that classifies consumers into eight segments based on their answers to the questionnaire.

VALS

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 ______ segmentation.

behavioral

When a firm offers customers a loyalty card for car washes, the firm is employing a type of _______ segmentation.

behavioral

When a firm offers customers a loyalty card for car washes, the firm is employing a type of _______segmentation.

behavioral

What type of segmentation categorizes consumers on the basis of the outcomes they hope to derive from a product or service, such as clothing, appliances, toothpaste, or paper towels?

benefit

Benefit segmentation is often effective because it is relatively easy to portray a product's or service's benefits in the firm's _______ strategies.

communication

Market positioning is done so that the target customers have an understanding of the product offered by the company in comparison with ________ products.

competitors

A perceptual map is used in developing a positioning strategy in order to display the position of the products or brands in the ______ mind.

consumer's

VALS shows ______ between psychology and lifestyle choices.

correlations

Marketers sometimes take into account that as people age their needs change. This is an example of ______ segmentation.

demographic

The component of segmentation that is determined by how we live our lives to achieve goals is called ______.

lifestyle

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 ______ segmentation.

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 ________ segmentation.

geodemographic

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 ______ segmentation.

geographic

Market differences across continents create opportunities for ______.

geographic segmentation

Market positioning involves a process of defining the marketing mix variables so that the target customers ______.

have a clear, distinctive understanding of the product

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 "______ segmentation" and investing in initiatives to retain their most profitable customers.

loyalty

The process of dividing the market into groups of customers who have different needs, wants, or characteristics is called ______. These groups of buyers might want products or services designed especially for them.

market segmentation

VALS enables firms to identify target segments and their underlying ______.

motivations

Because each segmentation method has its unique advantages and disadvantages, most firms often employ ______ methods.

multiple

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 ______ segmentation.

occasion

Sometimes, firms find it difficult to use demographics in their segmentation strategies. This is because in some cases demographics ______.

predict consumer wants and needs poorly

Loyal customers buy a substantial amount from the firm. These loyal customers are the most ______ in the long term to the firm.

profitable

VALS is the most widely used ______ segmentation tool.

psy

While some segmentation methods rely on external descriptions and factors to break down the market, ______ segmentation relies on consumers' descriptions of themselves.

psychographic

The ________ 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).

segmentation

A successful marketing plan requires identifying and evaluating opportunities by performing an STP analysis, which stands for ______.

segmentation, targeting, and positioning

Firms position their products based on methods such as ______.

the value proposition, salient attributes, symbols, and competition

After establishing overall objectives, why do marketers then use a particular method or combination thereof to identify and describe market segments?

to help understand the profile of each segment

When everyone is considered a potential user of its product, a firm should use a(n) ______ targeting strategy.

undifferentiated

When firms sell products that meet the needs of many kinds of customers, it may use a(n) ____________ targeting strategy because there is little need to formulate different strategies for different groups.

undifferentiated

Match each of the following targeting strategies (on the left) with an example (on the right) that shows how that strategy is used.

undifferentiated - sugar, milk, packaged ice differentiated - Proctor and Gamble offers Pantene, Head and Shoulders, Aussie, and Wella shampoos concentrated - an infomercial firm sells a gadget to better fry and flip eggs in cooking micromarketing - a florist designs the bride's and five attendants' bouquets