Marketing 370 Chapter 9, CH.9, BA 370: Chapter 9, Principles of Marketing CH 9, Principles of Marketing CH 9, Chapter 9 STP, Week 4, Marketing Chapter 9

Positioning Product Methods based on:

1. Competition 2. Value Proposition 3. Salient Attributes 4. Symbols

Order of the STP process

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

Criteria for Attractive Segment

1. Identifiable 2. Substantial 3. Reachable 4. Responsive 5. Profitable

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

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

Behavioral

A coffee company that advertises its products as "a delicious pick-me-up to start your morning right" uses which form of segmentation?

Benefit

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

Circles for a Successful Value Proposition

Benefits the company provides, customer needs and wants, benefits provided by competitors

How does developing descriptions of each market segment help firms?

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

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

Demographic segmentation

What is the first step marketers use to derive a perceptual map?

Determine consumers' perceptions and evaluations of the product or service in relation to competitors'

Sodexho has identified six unique segments: Metro Fusion, Main Streamers, Fun Express, Time Liners, Dream Catchers, and Trend Setters. Sodexho is working on developing product offerings that meet the needs of each of these types of market segments. This is an example of what type of segmentation strategy?

Differentiation

Which step in the segmentation process involves determining what the company hopes to accomplish with its marketing strategy?

Establish the overall strategy or objectives.

During which step of the STP process do marketers ask whether the segment is identifiable, substantial, reachable, responsive, and profitable?

Evaluate segment attractiveness

True or false: Marketers evaluate the attractiveness of a segment by considering whether the segment is powerful, vocal, visible, and influential.

False

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

False

PRIZM and ESRI's Tapestry are two of the most widely used tools for _______ segmentation.

Geodemographic

One of the main variables for evaluating whether a segment is attractive is whether the segments are __________. Sodexho was able to recognize six segments that would respond favorably to its product offerings, thus fulfilling the first requirement of segment attractiveness.

Identifiable

The publishing conglomerate Conde Nast is able to purchase mailing lists of people who have bridal interests, knowing that its Modern Bride magazine customers are somewhat distinct from those who subscribe to GQ. In terms of evaluating segment attractiveness, this is a way of ensuring the segment is:

Identifiable

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

Identifiable, substantial, reachable, responsive, profitable

Which of the following is NOT a characteristic a desirable market segment should possess?

It should be compact.

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 ________

Loyalty Segmentation (subset of Behavioral Segmentation)

Ease of developing distribution channels and brand familiarity is also known as market ______.

access

Which of the following are considered when using the Tapestry Segmentation system?

age home value education

The first step in the segmentation process is to ______ the vision or the objectives of the company's marketing strategy clearly.

articulate

Which step in the STP process develops descriptions of the different segments, which helps firms better understand the customer profiles in each segment? a. Establish overall strategy or objectives b. Select segmentation method c. Develop positioning strategy d. Evaluate segment attractiveness e. Select target market

b. Select segmentation method

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

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

When customers visit Hewlett-Packard's website, they can choose from different options based on what they need from a computer and how they expect it to improve their life. This is an example of ___________ segmentation

benefit

When customers visit Hewlett-Packard's website, they can choose from different options based on what they need from a computer and how they expect it to improve their life. This is an example of ___________ segmentation.

benefit

Marketers ask consumers a series of questions about competitors' products in order to determine the products'______ on the perceptual map

brand positions

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

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

demographic

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

describe

It is important to ensure that segments are distinct from one another because too much overlap between segments means that ______.

distinct marketing strategies are unnecessary to meet segment members' needs

Demographic segmentation is the most common segmentation strategy because these segments are ___________

easy to reach easy to identify

A potential drawback to using psychographic segmentation is that it is a more ______ method than demographics to identify potential customers.

expensive

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

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

In order to define a market segment as attractive, the market segment must be _________

identifiable reachable

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

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

loyalty

Which of the following are key factors to keep in mind when marketers focus their assessments on the potential profitability of market segments, both currently and future

market growth market competitiveness market access

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

Psychographics study how people ______ their time and the underlying psychological factors that determine their choices.

occupy

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

When assessing the attractiveness of a segment, marketing managers need to calculate the ______ of each segment, both current and future.

profitability

A manufacturer of tee shirts concentrates all its efforts on cost containment by offering the product in only one size but in a variety of colors, using a one-size-fits-all approach. This involves a _____ targeting strategy.

Mass Marketing

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

profitable

Daniel joined an outdoor activities club. He has begun to purchase many books about kayaking and rafting. Borders bookstore sends him email promotions focusing on outdoor activities. This is an example of ______ segmentation based on his lifestyle.

psychographic

Despite different demographics, consumers may hold similar self-values and might perceive themselves to belong to a distinct group of people. To identify this segment, the marketing manager might use ______ segmentation.

psychographic

VALS is the most widely used ______ segmentation tool.

psychographic

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

psychographic

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

Persuasive communications and accurate product distribution are techniques used by firms to ______ market segments.

reach

Customers in the segment must react similarly and positively to the firm's offering. This quality is known as ______, which is an important element of successful segmentation.

responsiveness

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

McDonald's often targets families by showing families having a good time in its advertising. This appeals to a family's ______.

self-concept

Another term for self-concept is ______.

self-image

John is a supporter of environmental issues. He is constantly examining the "green" credentials of the products he purchases. John's purchasing behavior is a reflection of his ______.

self-values

Recognizing that many people attend sporting events to meet their need for camaraderie and belonging, a minor-league baseball team promotes its season ticket packages by highlighting the sense of community among season ticket holders. In this case, the team is using psychographic segmentation based on ______.

self-values

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

similarities; differences

If a market is too ______ and its buying power ______, it won't generate sufficient profits or be able to support the marketing mix activities.

small; insignificant

If a market is too ______ and its buying power ______, it won't generate sufficient profits or be able to support the marketing mix activities. Multiple choice question. large; insignificant

small; insignificant

Market growth, market competitiveness, and market access are all important factors in analyzing if a segmentation strategy is________.

Profitable

Which of the following are criteria considered by marketers to evaluate whether or not a segment is worth pursuing? (Select all that apply.)

Profitable Reachable Identifiable

A luxury car company that markets its products to consumers who have a strong need to project an image of power and success uses which method of market segmentation?

Psychographic

Once a firm is able to identify the market and is able to design products or services to meet its needs, the next step is to determine if the market size is ______

substantial

Once a firm is able to identify the market and is able to design products or services to meet its needs, the next step is to determine if the market size is ______.

substantial

The developers of a new self-improvement app want to target their advertisements toward individuals who share an underlying motivation for achievement. The best way to identify this market segment is through the use of ______.

the VALS framework

For segmentation strategy to be successful, the customers in the segment must react similarly and positively to firm's offering, corresponding to which of the following criteria for evaluating segment attractiveness?

Responsive

Sunrise foods has been developing a new line of meatless breakfast sandwiches. Sunrise has identified a market segment and, through the use of surveys and blind taste tests, has found that members of the segment react favorably to the new offerings. Which criterion for evaluating segment attractiveness does the segment meet?

Responsive

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

Selecting target market Using segmentation methods Identifying strategy or objectives

A resort advertisement that contains images of groups having fun on the beach or lounging by the pool appeals to which component of psychographics?

Self-concept

______ is the image people ideally have of themselves.

Self-concept

Which of the following are examples of self-values?

Self-respect Sense of belonging Self-fulfillment

The overriding desires that drive how people live their lives are called

Self-values

The Gap clothing company has limited resources and must make efficient and effective decisions and should focus its efforts. The Gap is advised to use:

Targeting

Which step of the STP process involves evaluating the attractiveness of various market segments and choosing the segments to pursue?

Targeting

What are the three components of the STP process?

Targeting Segmentation Positioning

Which of the following is a segmentation tool that classifies U.S. residential neighborhoods into segments based on the lifestyles and demographics of the people who live there?

The Tapestry Segmentation system

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.

Why are psychographic market segments considered "self-selecting" groups?

They are grouped together based on factors that they choose rather than those they cannot control.

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

Third

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

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

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

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

A Caribbean resort wishes to identify customers that can afford and have the most interest in taking tropical vacations. Using the VALS framework, the resort can develop a successful advertising campaign based on the ______ of its target customers,

underlying motivations

When firms sell commodities, or products that are considered the same as those of its competitors, it should use a(n) __________ strategy.

undifferentiated