chapter 6 - marketing management

​Heeltoe, a boutique that caters to the footwear needs of​ women, manufactures two different lines of footwear based on the purchasing power of its customers. One product line caters to the needs of​ affluent, middle-aged​ women, and the other line targets younger professionals and homemakers. Heeltoe most likely segments the consumer market based on​ ________ variables.

demographic

What is a​ product's position?

The way a product is defined by consumers on important attributes

Which structural factor would make a market segment attractive to​ enter?

Very few actual or potential substitute products

Grocers in neighborhoods with a large Hispanic population typically carry more brands that Hispanic consumers prefer than grocers in other neighborhoods. This is an example of​ ________.

local marketing

Dividing a market into smaller segments of buyers with distinct needs or behaviors that might require separate marketing strategies is known as​ ______________________.

market segmenting

After marketers divide a market into distinct groups of buyers who have different needs, characteristics, or behaviors, they then perform _________________, evaluating each segment's attractiveness and selecting one or more segments to serve.

market targeting

Evaluating each market​ segment's attractiveness and selecting one or more market segments to enter is called​ _____.

market targeting

If competitors cannot easily copy the benefit a company chooses to​ promote, that benefit is said to be​ _________.

preemptive

Dividing buyers into groups based on social​ class, lifestyle, or personality characteristics is called​ ________ segmentation.

psychographic

The marketing manager at​ Arbor's Delicatessen targets customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of​ low-fat, low-calorie meals that appeal to dieters.​ Arbors' approach is best referred to as​ ________ segmentation.

psychographic

If a segment is large enough or profitable enough to​ serve, it is​ ________.

substantial

A​ _______ defines how a company will create differentiated value for targeted segments and what positions it wants to occupy in those segments.

value proposition

Major variables used to segment consumer markets include which of the​ following?

​Geographic, demographic,​ psychographic, and behavioral

Demographic

- Life Cycle: Louis and Theresa have a full house of kids living at home ages 15, 12, and 10. - Occupation: Tyrese is an engineer who works full time for a government contractor.

Companies market competitive ATVs differently than they market ATVs used for other purposes, such as recreation. On which type of market segmentation is this based?

Benefit segmentation

You are focusing on two product attributes when promoting the Sauber washer-dryer. Given what you know about the Sauber washer-dryer combo, which product attributes do you want to promote to your target market?

Cleaning power and convenience

The website leftyslefthand.com markets products to​ left-handed consumers only. Which targeting strategy does this​ represent?

Concentrated marketing

​________ segmentation calls for dividing the market into different​ nations, regions,​ states, counties,​ cities, or even neighborhoods.

Geographic

A company can differentiate itself from competitors using symbols such as​ McDonald's golden​ arches, Twitter's​ bird, and the Nike swoosh. Which type of differentiation is​ this?

Image differentiation

Which of the following would make a segment less attractive to​ enter?

New entrants finding it easy to enter the segment

​__________ show consumer perceptions of their brands versus those of competing products on important buying dimensions.

Perceptual positioning maps

Which of the following describes the process of arranging for a market offering to occupy a​ clear, distinctive, and desirable place relative to competing products in the minds of target​ consumers?

Positioning

Marketers may segment markets into groups such as soccer moms or sports enthusiasts. This represents which type of segmentation?

Psychographic

Which of the following is a variable used to segment consumer buyers that is not used to segment business​ buyers?

Psychographics

Which perceptual map best represents your positioning strategy?

Shows a diagram with a star on the right (Between high and small)

The VP continues: "I need you to analyze three key demographic segmentation variables and make recommendations for each. As you make your recommendations, keep the washer-dryer's key attributes in mind. We'll begin with household size."

Small households: 1-2 members

In which targeting strategy does a firm go after a large share of one or a few smaller​ segments?

Concentrated marketing

Marketers of sunscreen tend to market the product more heavily during summer months. This represents which type of segmentation?

Occasion segmentation

Marketers must be careful to guard against stereotypes when using​ ________.

age and life cycle segmentation

Dividing a market into different age and life-cycle segments is known as __________ segmentation.

demographic

Toyota allows Scion buyers to customize their cars to meet their exact needs and preferences. This is an example of​ ____________.

micromarketing

Firms that manufacture seasonal products target their consumers primarily through​ ________ segmentation.

occasion

Choose the two variables that would be most predictive of purchase intent for the All-in-One washer-dryer.

- Dwelling type: apartment, condo, or house - Household size: how many people?

Now that you have your primary segmentation variables identified, what should your next step be?

- Identify the market segments to target.

Psychographic

- Social class: Ellie has a Harvard MBA, a $500,000 salary, a trust fund, and a high-power career, which places her in the upper upper class. - Personality: Phil is outgoing, gregarious, and always up for an adventure.

Behavioral

- Usage rate: Erin loves lattes and visits her local coffee shop on a daily basis to get her fix. - Occasion: George only buys his wife flowers once a year. She gets a dozen red roses every Valentine's Day.

The average American house is 2600 square feet, with 85% having washer and dryer hookups.The average American apartment is 940 square feet, with 67% having washer and dryer hookups.The average American condominium is 1750 square feet, with 91% having washer and dryer hookups.

Apartment

Socially responsible target marketing would classify which of the following as an especially vulnerable target market for harmful or controversial​ products?

Children

What is market​ segmentation?

Dividing a market into distinct groups of buyers who have different​ needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

Which type of market segmentation has long been used in​ clothing, cosmetics,​ toiletries, and​ magazines?

Gender

Munoz Specialty Foods groups its customers by regions in the United​ States, such as​ Midwest, Northeast, and Southwest. For each​ region, Munoz creates a different set of advertisements and promotions. On which of the following segmentation variables does the firm divide its​ market?

Geographic

The last segmentation variable you need to consider is income. You could target consumers with high incomes (greater than $100,000) or medium incomes (between $40,000 and $99,999). Sauber eliminated consumers with incomes less than $40,000 from consideration because not enough of these consumers have the ability to purchase their own laundry machines.

High income

Which of the following are additional variables marketers use to segment business markets but not consumer​ markets?

Operating​ characteristics, purchasing​ approaches, situational​ factors, and personal characteristics

At one​ time, Miller Beer was known as the​ "champagne of bottled​ beer." It was targeted at an elite class of customers.​ Later, to increase​ sales, Miller was repositioned to attract members of the working middle class. What is this segmentation method​ called?

Psychographic

Keeping the target market and competition in mind, what is the best way to position the Sauder washer-dryer in the marketplace? Laundry appliance consumers seek a number of attributes from the product. Fortunately, you just received data from a recent consumer survey identifying cleaning ability, price, and machine size as the three most important attributes to consumers.

Sauber All-In-One: Cleanest clothes, small machine.

Amazon is now promising​ same-day pick-up of goods as well as local secure​ pick-up points. What point of differentiation is​ this?

Services differentiation

Social butterfly: With large social circles and lots of activities, these consumers are always on the go. Typically young, these consumers move from work, to the gym, to a night on the town nearly every night. A quick change of clothes is all they need to keep the party going.Work-a-holic: With a high-pressure job and the CEO's office in sight, it's not uncommon for these consumers to pull 80+ hour work weeks. Approaching their mid-30s, these consumers recognize that their professional aspirations have taken a toll on their social life, but for now they're content with the sleep-work-sleep routine.Homebody: With a comfortable career and income, these consumers know what makes them happy: reading, listening to music, and spending time at home with their pets and close friends.

Social butterfly

Everyone at Sauber is now in agreement that consumers who are time-pressed are the best target market for the All-in-One washer-dryer. Therefore, the target market for the washer-dryer combo is a busy, small-household, high-income consumer who lives in an apartment.In order to promote the All-in-One washer-dryer to this target, you need to decide how to distinguish it from its competitors. What is a good number of key product differences to promote? There may be more than one good choice here.

Two

​Kidcomp, an American​ computer-manufacturing firm, targets children below the age of ten by providing free games and applications. The​ firm's marketing approach is reflective of​ ________ segmentation.

age and life cycle

​H2Coast, an automobile​ manufacturer, produces​ fuel-efficient hybrid vehicles that are targeted toward​ middle-income consumer groups. H2Coast most likely segments the consumer market based on​ ________ variables.

demographic

When marketers aggressively promote only one benefit to the target​ market, the benefit promoted is known as the product or​ service's _____________________.

unique selling proposition