Marketing Chapter 9

Symbols Value Salient attributes

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

Social and Mobile Marketing

demographics also can be critical to defining an overall marketing strategy. Many of the clothing brands and retailers that dominated the market in previous decades are struggling, faced with a distinct lack of appeal to experience-focused, social media-addicted, young sharing consumers. They want to snap up the latest style, take a picture of how it looks, and share it with their followers and friends

Demographic Segmentation

Most common segmentation strategy (easy to identify and measure)

Establish strategy or objectives Use segmentation methods Evaluate segment attractiveness Select target market Identify and develop positioning strategy

the segmentation, targeting, and positioning process

to help understand the profile of each segment

After establishing overall objectives, why do marketers then use a particular method or combination thereof to identify and describe market segments? to eliminate less desirable consumers from the customer base 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

Using Multiple Segmentation Methods

Although all segmentation methods are useful, each has its unique advantages and disadvantages. Thus, firms often employ a combination of segmentation methods, using demographics and geography to identify and target marketing communications to their customers, then using benefits or lifestyles to design the product or service and the substance of the marketing message. One very popular mixture of segmentation

self-image

Another term for self-concept is ______.

Profitable

Assess potential profitability of each segment, both current and future. Key factors: Current market growth rate Future growth rate Market competitiveness Market access costs

occasion segmentation

Based on when a product or service is purchased or consumed Clothing, snack foods

Communication

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

Reachable

Can the market be reached through persuasive communication and product distribution? The consumer must: Know the product exists. Understand what it can do. Recognize how to buy.

Value proposition

Communicates the customer benefits to be received from a product or service.

Responsive

Customers must react similarly and positively to the firm's offering. If a firm cannot provide products and services to the segment, it shouldn't be targeted.

marketing positioning

Defining marketing mix variables so target customers have a clear, distinctive, desirable understanding of what the product does.

easy to identify easy to reach

Demographic segmentation is the most common segmentation strategy because these segments are ____________. easy to identify easy to reach less demanding more profitable

benefit segmentation

Dividing the market into segments whose needs and wants are best satisfied by the product's benefits can be a very powerful tool.

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 ______ segmentation.

substantial, reachable, responsive, profitable, identifiable

Evaluate Segment Attractiveness

identifiable

Firms must be able to ______ who is within their market to be able to design products or services to meet their needs. It is equally important to ensure that the segments are distinct from one another, because too much overlap between segments means that distinct marketing strategies aren't necessary to meet segment members' needs.

the value proposition, salient attributes, symbols, and competition

Firms position their products based on methods such as ______.

differentiated targeting strategy

Firms using a _________ target several market segments with a different offering for each.

geodemographic

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.

undifferentiated, differentiate, concentrated, micromarketing or one-to one marketing

Four different targeting strategies can be used.

geographic segmentation

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

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

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

Substantial

How large is the market segment in terms of size and buying power? If a market segment is too small, it won't generate sufficient profits. If its buying power is insignificant, despite its size, the marketing mix cannot be supported.

similarities; differences

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

loyalty segmentation

Loyal customers are the most profitable in the long term Hotels, airlines, restaurants (Starbucks)

describe

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

third step

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

Determine consumers' perceptions and evaluations in relation to competitors'. Identify the market's ideal points and size. Identify competitors' positions. Determine consumer preferences. Select the position. Monitor the positioning strategy.

Six Positioning Steps to Derive a Perceptual Map

behavorial

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.

segmentation

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).

Demographic segmentation

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

VALS (value and lifestyle survey)

The most widely used tool to support such psychographic segmentation efforts is _____ owned and operated by Strategic Business Insights (SBI). It examines the intersection of psychology, demographics, and lifestyles. Consumers can be classified into eight segments based on their answers to the _____ survey and proprietary algorithm

motivations

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

psychographic

VALS is the most widely used ______ segmentation tool.

correlations

VALS shows ______ between psychology and lifestyle choices.

benefit

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?

Behavioral Segmentation

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

micromarketing or one-to-one marketing.

When a firm tailors a product or service to suit an individual customer's wants or needs, it is undertaking an extreme form of segmentation called _____

concentrated targeting strategy

When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that market's needs, it is using a ____________

undifferentiated targeting strategy (mass marketing)

When everyone might be considered a potential user of its product, a firm uses an

benefits; lifestyles

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.) Geography Benefits Demographics Lifestyles

Self-respect Self-fulfillment Sense of belonging

Which of the following are examples of self-values? Self-respect Self-indulgence Self-fulfillment Sense of belonging

Benefits Geographic Psychographic

Which of the following are marketing segmentation approaches? Benefits Geographic User Psychographic Collaborative

positioning strategies/methods

________ generally focus on either how the product or service affects the consumer or how it is better than competitors' products and services.

Behavioral Segmentation

based on when a product or service is purchased or consumed is called occasion segmentation.

benefit segmentation

groups consumers on the basis of the benefits they derive from products or services. Because marketing is all about satisfying consumers' needs and wants, dividing the market into segments whose needs and wants are best satisfied by the product benefits can be a very powerful tool.

psychographic segmentation

how consumers describe themselves in terms of, self-values, self-concept, lifestyle

value proposition

is represented by the benefits that a firm provides but that its competitors do not.

psychographic segmentation

is the segmentation method that delves into how consumers actually describe themselves. Usually marketers determine (through demographics, buying patterns, or usage) into which segment an individual consumer falls. Determining _________ involves knowing and understanding three components: self-values, self-concept, and lifestyles.

Step 1: Establish the Overall Strategy or Objectives

is to articulate the vision or objectives of the company's marketing strategy clearly.

Step 2: Use Segmentation Methods

is to use a particular method or combination of methods to segment the market.

perceptual map displays

map displays, in two or more dimensions, the position of products or brands in the consumer's mind.

Geographic segmentation

organizes customers into groups on the basis of where they live. Geographic information software (GIS) aids in such segmentation

Value Salient Attributes Symbols Competition

positioning methods include

demographic segmentation

segmentation groups consumers according to easily measured, objective characteristics such as age, gender, income, and education. These variables represent the most common means to define segments because they are easy to identify, and demographically segmented markets are easy to reach.

geo-demographic segmentation

segmenting potential customers into neighborhood lifestyle categories