mkt 9-exam 3

Which of the following is NOT a market segmentation approach? Product Benefit Geographic Behavioral Demographic

Product

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? Demographic Benefit Psychographic Geographic

Psychographic

Which of the following are marketing segmentation approaches? (Choose every correct answer.) Collaborative Psychographic User Geographic Benefit

Psychographic, Geographic, Benefit

______ is the image people ideally have of themselves. Lifestyle Self-value Self-selection Self-concept

Self-concept

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

Ocassion

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 Loyalty Psychographic Geographic

Occasion

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

Psychographics is a segmentation method that delves into how consumers actually ______ themselves. position spend money on describe relate to

describe

A point where a market segment's desired product would be located on a perceptual map is called a(n) __________ point.

ideal - on a perceptual map, the firm will want to be closest to the biggest ideal point, this is where there is the most people in the market

While some segmentation methods rely on external descriptions and factors to break down the market, ______ segmentation relies on consumers' descriptions of themselves. geographic geo-demographic demographic benefit psychographic

psychographic

If a firm positions its product too closely to the competition, it risks ______. being forced to lower the price being forced to stop production trademark infringement lawsuits consumer backlash

trademark infringement lawsuits

List the steps of segmentation, targeting, and positioning process

1. Establish strategy or objectives 2. Use segmentation methods 3. Evaluate segment attractiveness 4. Select target methods 5. Identify and develop positioning strategy

undifferentiated targeting strategy (or mass marketing)

A marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups. Salt or sugar

concentrated targeting strategy

A marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that market's needs. Ex An infomercial firm sells a gadget to better fry and flip eggs in cooking.

differentiated targeting strategy

A strategy through which a firm targets several market segments with a different offering for each. Ex Proctor and Gamble offers Pantene, Head and Shoulders, Aussie, and Wella shampoos.

How do firms commonly position themselves in the marketplace when using a competition positioning method? (Choose every correct answer.) Against an entire product classification Against their own customer bases Against an entire service classification Against a specific competitor

Against an entire product classification Against an entire service classification Against a specific competitor

For which of the following companies would demographic segmentation be the LEAST useful? A beard oil producer An athletic shoe manufacturer A discount club for retirees A cosmetics company

An athletic shoe manufacturer

micromarketing

An extreme form of segmentation that tailors a product or service to suit an individual customer's wants or needs; also called one-to-one marketing. Ex A florist designs bouquets for a bride and five attendants.

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? Demographic Loyalty Benefit Behavioral Occasion

Behavioral

When a firm offers customers a loyalty card for car washes, the firm is employing loyalty segmentation, one of two common types of ____________ segmentation.

Behavioral

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

Behavioral

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

Behavioral

What type of segmentation categorizes consumers on the basis of the outcomes they hope to derive from a product or service? Psychographic Behavioral Benefit Geodemographic

Benefit

How does developing descriptions of each market segment help firms? (Choose every correct answer.) By determining the most attractive market segments By revealing similarities across market segments By identifying similarities within market segments By identifying differences across market segments

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

Why are successful brands unable to realize enduring success in meeting consumer demands? The costs associated with meeting customer needs on that scale will soon lead the company to go out of business. The federal government will not allow a single firm to maintain that level of success. Customer needs and wants change too rapidly for the firm to maintain its current level of success. Competitors will encroach on the firm's value proposition by copying important product or service attributes.

Competitors will encroach on the firm's value proposition by copying important product or service attributes.

When marketers seek to evaluate market attractiveness, what must they do first? Develop a perceptual map Determine whether the segment is worth pursuing Secure a marketing communications license Develop a positioning strategy

Determine whether the segment is worth pursuing

perceptual map

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

Which of the following statements are true concerning micromarketing? (Choose every correct answer.) It involves customizing a product or service. It is considered an extreme form of segmentation. It is also known as one-to-one marketing. It is a strategy that is rarely implemented using the Internet.

It involves customizing a product or service. It is considered an extreme form of segmentation. It is also known as one-to-one marketing.

When establishing its overall segmentation strategy or objectives, what must the firm keep in mind? (Choose every correct answer.) Its target market Its mission and objectives Its current situation Its past performance

Its mission and objectives Its current situation

When marketers combine segmentation methods, which approaches do they typically use to design a product or service? (Choose every correct answer.) Lifestyles Geography Demographics Benefits

Lifestyles, Benefite

Under which market situations would a firm be most likely to sustain a unique value proposition over the long term? (Choose every correct answer.) Pure competition Monopolistic competition Monopoly Oligopoly

Monopolistic competition Monopoly

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

Ocassion

The maker of a line of protein shakes knows that its target market places a high value on the use of natural products, so the company's positioning strategy focuses on its use of organic, locally sourced ingredients. Which positioning method is the company using? Competition Salient attributes Symbols Value proposition

Salient attributes

Firms position products based on which of the following? (Choose every correct answer.) Salient attributes Value Demographics Psychographics Symbols

Salient attributes Value Symbols

Which of the following steps are part of the segmentation, targeting, and positioning process? (Choose every correct answer.) Selecting target market Develop the marketing plan Establish strategy or objectives Evaluating segment attractiveness Increasing benefits

Selecting target market Establish strategy or objectives Evaluating segment attractiveness

Which of the following is an example of occasion segmentation for a chocolate maker? The company sells white, milk, and dark chocolate to serve different taste preferences. The company prices its chocolates differently in different geographic areas. The company sells both regular and sugar-free chocolate. The company offers some of its chocolates in heart-shaped boxes for Valentine's Day.

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

Which of the following are examples of self-values? (Choose every correct answer.) The need for a sense of belonging The need for self-respect The need for self-indulgence The need for self-fulfillment

The need for a sense of belonging The need for self-respect The need for self-fulfillment

Why are psychographic market segments considered "self-selecting" groups? They prefer to be alone and are notoriously difficult to contact. They are determined by voluntary responses to surveys. They are grouped together based on factors that they choose rather than those they cannot control. They respond best to advertisements that feature people who look like them.

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

After establishing overall objectives, why do marketers then use a particular method or combination thereof to identify and describe market segments? To articulate the vision of the marketing strategy clearly To eliminate less desirable consumers from the customer base To help understand the profile of each segment To validate preconceived notions of each market segment

To help understand the profile of each segment

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

True

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

True

Which situation represents an important marketing opportunity for creating new products or altering existing products? When customers are satisfied with only the firm's offerings When customers' needs are met by the firm and its competitors When customers have little need or desire for the firm's offerings When customer needs are not completely met

When customer needs are not completely met

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 occasion multiple psychographic

behavioral (loyalty)

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 sales supply chain relationship

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. supply chain communication sales relationship

communication

It is important to ensure that segments are distinct from one another because too much overlap between segments means that ____________. the target market segment is definitely too small there is always a need to have many diverse market segments targeted the target market segment is probably too large distinct marketing strategies are not necessary to meet segment members' needs

distinct marketing strategies are not necessary to meet segment members' needs

On a perceptual map, marketers can represent the size of both ______ and potential markets by using different sized ovals that correspond to the market size.

existing

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 benefit behavioral psychographic demographic

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 regional benefit behavioral

geodemographic

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

geographic

When a firm positions a product based on its salient attributes, it highlights features that are most ______ to the target market. important mysterious expensive affordable

important

The component of segmentation that is determined by how we live our lives to achieve goals is called ______. value lifestyle self-image self-worth

lifestyle

The process of dividing the market into groups of customers who have different needs, wants, or characteristics is called ______. customer marketing market segmentation target marketing market positioning

market segmentation

Because each segmentation method has its unique advantages and disadvantages, most firms often employ _______ methods. basic individual simple multiple

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. demographic reachable occasion loyalty

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. reachable occasion loyalty demographic

occasion

Psychographics study how people ______ their time and the underlying psychological factors that determine their choices. value occupy pay for increase

occupy

Sometimes, firms find it difficult to use demographics in their segmentation strategies. This is because in some cases demographics ______. are prohibitively expensive to measure are very complicated to understand predict consumer wants and needs poorly are irrelevant to the user

predict consumer wants and needs poorly

Value is a popular positioning method and is the most important consideration for consumers when they make a purchase decision based on: price and quality. price and demand. price and availability. quality and quantity.

price and quality.

Loyal customers buy a substantial amount from the firm. These loyal customers are the most ______ in the long term to the firm. successful similar to each other profitable heavy users

profitable

Daniel joins a kayaking club. He purchases the necessary equipment, searches online for kayaking videos, and researches local rivers and lakes. He begins to see banner ads for companies that sell kayaking and other outdoor gear. This is an example of ______ segmentation based on his lifestyle. benefit geographic psychographic demographic

psychographic

After evaluating each market segment's attractiveness, the next step in the STP process is ______. negotiating with retailers beginning production contacting consumers selecting a target market

selecting a target market

The overriding desires that drive how a person lives his or her life are ______. mile markers self-perceptions self-values lifestyles

self-values

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

similarities, differences

If a market is too ______ or if its buying power is ______ it won't generate sufficient profits or be able to support the marketing mix activities. small; insignificant small; rapid in growth large; insignificant large; rapid in growth

small; insignificant

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 ______. recognizable tangible substantial variable

substantial

Firms position their products based on methods such as ______. product, price, place, and promotion demographics, geodemographics, psychographics, and benefits undifferentiated positioning, concentrated positioning, differentiated positioning, and micropositioning the value proposition, salient attributes, symbols, and competition

the value proposition, salient attributes, symbols, and competition

Even if a firm has developed a product that addresses the needs of a specific, substantial market segment, its efforts will fail if the segment is ______. too large diverse unreachable unsegmented

unreachable