mar 3023 chapter 9 learnsmart
The 80/20 rule helps marketers recognize the importance of ______.
heavy users
What is a variable used in psychographic segmentation?
lifestyle
In head-to-head positioning a company positions its product to compete directly against competitor's products, while ________ positioning allows for more indirect competition.
differentiation
When McDonald's offers healthy menu items in hopes of avoiding competition with Wendy's and Burger King, it uses ________ positioning.
differentiation
True or false: It is always a good idea to segment a market.
false
Potential for increased profit and similarity of needs of potential buyers within a segment are criteria used to ______.
form market segments
Frequent-flyer programs used by airlines focus on increasing the usage rate, and are an example of ______.
frequency marketing
McDonald's promotes coffee in Seattle and orange juice in Orlando. This is an example of _________ segmentation.
geographic
Miller Engine company has its sales representatives personally visit its customers located in metropolitan statistical areas, but only make sales calls via the telephone for its customers located in micropolitan statistical areas. The company has made this decision based on ______ segmentation.
geographic
Segmentation based on the size of city in which prospective customers live would be considered ______ segmentation.
geographic
When Macy's promotes and sells different apparel based on the location of its retail stores is it an example of ______ segmentation.
geographic
___________ segmentation organizes prospective customers into groups on the basis of where they live or work.
geographic
What are the four bases used to segment consumer markets?
geographic, psychographic, behavioral, & demographic
Dollar Rental Car, Avis, and Hertz compete directly on similar attributes in the same target market, with ________ positioning.
head-to-head
What are two approaches to product positioning?
head-to-head & differentiation
Customer lifetime value is higher for ______.
heavy users
What two outcomes result from effective market segmentation?
identifying specific marketing mix actions & forming meaningful groupings
Select the variables that are typically used in demographic segmentation.
income, gender, & marital status
The fundamental reason a business firm engages in market segmentation is to ______.
increase its sales and profits
What two questions should you answer affirmatively before you proceed with segmentation?
is segmentation possible & would it be worth doing
A business goes to the trouble and expense of segmenting its markets when ______.
it expects that it will increase sales and profits
Which two statements are true of product positioning?
it is in relation to competitive products & it exists in the mind of the consumer
After Zappos.com identified the needs of its target customer segment, what two marketing actions did the company take to fulfill the needs of its target customer?
it offered quick delivery and free returns & it offered a huge inventory of shoes
A product differentiation strategy should achieve which of the following?
it should help consumers perceive the product as being different and better than competing ones
After developing a market-product grid and estimating market sizes, the marketer should select ______.
its target markets
When expenses are greater than the potentially increased sales from segmentation, a firm should ______.
not attempt to segment its market
A fast food restaurant chain has identified day commuters as its market segment. If the chain wants to persuade this segment to buy its fast food products, what would be the most likely place for it to advertise?
on buses and signs in parking lots
A balance between satisfying a customer's individual wants and achieving ________ benefits a firm's attempts at product differentiation and segmentation.
organizational synergy
________ is the increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently.
organizational synergy
Product _________ is the place a product occupies in consumers' minds based on important attributes relative to competitive products.
positioning
"For upscale American families who desire a carefree driving experience, Volvo is a premium-priced automobile that offers the utmost in safety and dependability," would best be described as a ______.
positioning statement
A market-product grid shows the relationship of market segments either to products offered or to ______.
potential marketing actions by an organization
When Apple promotes a single product to all targeted segments, it uses _________ synergies.
product
The _________ strategy involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products.
product differentiation
In most segmentation situations, as is the case for Apple's computer products, ______.
product lines and market segments overlap
________ refers to the place a product occupies in the consumer's mind on important attributes relative to competitive products.
product positioning
Market segments are made up of ________ that are relatively similar to one another.
prospective buyers
John is a supporter of environmental issues. He is constantly examining the "green" credentials of the products he purchases. It may be very effective to reach John with marketing actions based on ________ segmentation.
psychographic
Nielsen PRIZM uses ________ segmentation to classify market segments based on the belief that "birds of a feather flock together," with groups living near one another having similar interests and buying similar offerings.
psychographic
Using breakfast, lunch, dinner, and snacks as categories helps consumers to ________ the products offered by a fast food brand that may have dozens of choices.
relate to
U.S. dairies attempted to ________ chocolate milk on the perceptual map so that it was viewed as more nutritious and more appropriate for adults.
reposition
If consumers' tastes shift, marketers may need to change how these consumers think about a product in a process known as ______.
repositioning
Product ________ involves changing the place a product occupies in a consumer's mind relative to competitive products.
repositioning
Ideally, a positioning statement should identify which three things?
the category of the firm that the product belongs to, the product's unique benefits, & the target market and needs satisfied
The segmentation and targeting process should result in ______.
the development of an action plan in the form of a marketing program
The first step in positioning a product using a perceptual map is to identify ______.
the important attributes of the product
How does the level of competition affect the attractiveness of a market segment?
the less competition there is, the more attractive the segment is
Each market segment consists of people who are relatively similar to each other in terms of ______.
their consumption behavior
When a firm's product is near a competitor's product on a perceptual map, these products have head-to-head positioning, meaning ______.
they compete on similar attributes in the same target market
At the drive-up menu for his favorite fast food restaurant, Jake notices the menu is listed in categories: breakfast items, lunch items, dinner items and dessert items. Why would the fast food chain organize its menu in this way?
to make it easier for customers to relate to the categories based on the time of day they are purchased
Why is it important for a firm to group its products into meaningful categories?
to make it easy for buyers to relate to the firm's offerings
What criteria are used to select target markets?
cost of reaching the segment, amount of competition for the segment, & expected growth of segment
When an organization produces only a single product and attempts to sell it to two or more different market segments, which costs may it incur?
creating a separate promotional campaign & establishing a new channel of distribution
Which product is the best example of multiple products directed at two or more distinct market segments?
crest oral care products
What measurement represents the financial worth of a customer to a company over the course of their relationship?
customer lifetime value
The original target customer for Zappos.com had which two characteristics?
customers that value free return policies & customers who want a large selection of shoes
After a marketer has identified a group with specific needs and benefits, the marketer should then ______.
develop specific marketing actions that will satisfy that groups particular needs
When an organization produces only a single product and attempts to sell it to two or more market segments, it avoids which costs?
developing and producing several versions of the product
Manufacturing a product only when there is an order from a customer is known as ______.
build to order
Mass customization is a step beyond a ________ strategy, because although the latter allows for good choice with quick delivery, it does not allow customers unlimited options for features.
build to order
List the steps of the segmenting and targeting process
1. group potential buyers into segments 2. group products to be sold into categories 3. develop a market product grid and estimate the size of markets 4. select target markets 5. take marketing actions to reach target markets
The 80/20 rule is a concept suggesting that ______.
80 percent of a firm's sales are obtained from 20 percent of its customers
Select the item that is NOT a part of the segmenting and targeting process.
evaluating the marketing mix
In developing a positioning strategy, a perceptual map is used to display the position of the products or brands in the minds of ______.
consumers
A firm wants to identify how each of its segments responds to each of its offerings in order to select which market to target. What tool would help the firm accomplish this task?
a market product grid
What analytical tool is used to display, in two dimensions, the locations of products or brands in the consumer's mind?
a perceptual map
Differentiation positioning means that ______.
a product is positioned to operate in smaller, less competitive niches
Product positioning relies on _________ evaluations of a product's important attributes.
consumers
Positioning strategy using perceptual maps begins with identifying the most important _________ of the product class to the target customers.
attributes
Demographic, psychographic, and geographic are ______.
bases to segment consumer markets
Segmenting on the bases of either product features desired by prospective customers or their actual usage rates are examples of _________ segmentation
behavioral
Usage rate is a variable used in ______ segmentation.
behavioral
Where prospective customers buy, what benefits they seek, and how frequently they buy provide the bases for _________ segmentation.
behavioral
The Ann Taylor chain of stores has a problem with ________ from its sister chain Ann Taylor LOFT, whose sales have surpassed the the original Ann Taylor stores and have made it harder for them to reach their target customers.
cannibalization
When a business's own new product or new chain is stealing customers and sales from its older, existing products it is known as ______.
cannibalization
Product repositioning refers to ______.
changing the place a product occupies in a consumer's mind relative to competitive products
A marketer has various groups to target but notices that the needs of the various segments aren't very different. What should the marketer do in this instance?
combine the various groups into fewer segments
Steve Jobs' product matrix for Apple's computer products provided a segmentation strategy based on which two elements?
consumer and professional sectors & desktop and laptop computers
Segmentation based on gender, age, or occupation in would be considered ______ segmentation.
demographic
A large manufacturing firm segments its organizational market, in part, using the North American Industry Classification System (NAICS) code for potential customers, which is an example of _________ segmentation.
demographic
Because more than half of all U.S. households are made up of only one or two persons, Campbell's packages meals with only one or two servings, which is an example of ________ segmentation.
demographic
Crest toothpaste markets its fruit flavored toothpaste to children, and its whitening toothpaste to adults. This is an example of ______ segmentation.
demographic
Select the variables that are typically used in psychographic segmentation.
lifestyle & personality
The third step of the market segmentation process is to develop a(n) _________ grid and estimate the size of the markets.
market-product
A ________ is a framework to relate the market segments of potential buyers to products offered or potential marketing actions.
market-product grid
When Apple focuses its marketing efforts on a single segment to which it promotes all of its relevant products, it uses _________ synergies.
marketing
Both of these types of synergies are available in business, but focusing on one may come at the expense of the other.
marketing & product
An eyeglass manufacturer produces all of the frames for its reading glasses and then inserts the eyeglass lens based on the different magnification needs of its customers. This is an example of ______.
mass customization
Dell manufactures all the necessary components for its desktops and laptops. It assembles these components into basic computers that can be sold in stores and also assembles products to the exact specifications of customers. Dell is engaged in ______.
mass customization
Tailoring goods or services to the tastes of individual customers on a high-volume scale is a segmentation strategy known as ______.
mass customization
Today's Internet ordering and flexible manufacturing and marketing processes have made ________ possible.
mass customization
Product positioning refers to the place a product occupies in the consumer's _________ based on important attributes relative to competitive brands.
minds
Two specific segmentation strategies are to identify either (1) one product or (2) multiple products that can serve
multiple market segments
Ford produces many types of vehicles from compact cars to trucks, each with a different type of customer in mind. This is an example of which type of segmentation strategy?
multiple products and multiple markets
A restaurant has identified a target market of elderly patrons who eat early in the evening, a slower period for the business. The best communication strategy to reach this group would be to ______.
run a print ad with coupon in a senior center program schedule
A business firm should ________ its markets so it can respond more effectively to the needs of its potential buyers, which should result in increased sales and profits.
segment
________ links the needs of buyers to the actions of marketers and should be done in such a way that it leads to increased sales and profitability.
segmentation
Developing a market-product grid is a step in the ______ process.
segmenting and targeting
Which are specific segmentation strategies?
segments of one & one product and multiple markets
A market-product grid shows various product offerings and
segments of prospective buyers
Market size and compatibility with the organization's objectives and resources are two of the criteria used to ______.
select target markets
The next step after developing a market-product grid and estimating market sizes in the segmentation process is to ________.
select target markets
Which three factors should a marketer consider when forming market segments?
simplicity and cost-effectiveness of assigning potential buyers to segments, potential for increased profit, & potential of a marketing action to reach a segment
The third step of the market segmentation process is to develop a market-product grid and estimate the ___________ of the markets.
size
The market-product grid can be used to identify both product and market ________ that may be available.
synergies
A mass customization strategy seeks to ______.
tailor products to individual customers on a high-volume scale
The final step of the segmentation process is to ______.
take marketing actions to reach the target markets
To create a perceptual map, evaluations of important attributes of the relevant products are collected from whom?
target customers
When it comes to selecting target markets, the best product cannot be successful, no matter how large the target market is, if that segment is ______.
too expensive or impossible to reach
In what two ways are markets segmented based on behavioral segmentation?
usage rate & product features
