Marketing Management: Chapter 7
Purchasing Approaches
Power structure, General purchasing policies, Purchasing criteria
Which of the following are key business market segmentation variables? Select all that apply.
Purchasing Approaches Operating Variables Personal Characteristics Demographic Situational Factors
The U.S. market is attractive, has growth potential, and is already tied to a specific brand offered by Company A. Company A wants to expand its offerings in the United States. Company A is most likely focused on Blank______.
segment size and growth potential
Situational Factors
Urgency, Specific application, Size of the order
A concentrated target marketing approach is also referred to as Blank______. (Select two answers)
a focus strategy a niche strategy
What analytical tool is used to display paired attributes in order to compare consumer perceptions of each competitor's delivery against those attributes?
a perceptual map
Why is target marketing called an investment decision?
because companies should invest in the target markets that will provide the best return on their investment over the long run
Which approach to target marketing develops different value offerings for different targeted segments?
differentiated
All things being equal, a firm should focus the most attention on market segments that Blank______.
provide the quickest, highest-level, and longest-sustaining ROI
All things being equal, a firm should focus the most attention on market segments that Blank______. Multiple choice question.
provide the quickest, highest-level, and longest-sustaining ROI
Dividing consumer groups based on variables such as personality and AIOs (activities, interests, and opinions) is called Blank______ segmentation.
psychographic
underpositioning
when consumers have only a vague idea about the company and its products, and do not perceive any real differentiation
overpositioning
when consumers have too narrow an understanding of the company, product, or brand
confused positioning
when frequent changes and contradictory messages confuse consumers regarding the positioning of the brand
___ segmentation presumes some regularity of consumer needs and wants by chronological age.
Age
Marketers are particularly interested in Blank______ because this generational group personifies conspicuous consumption—acquiring products for the pure enjoyment of the purchase.
Baby Boomers
If Drug Company B—a leader in the pain relief market—is primarily focused on competitive forces, why might the company be less concerned about new entrants to its market than it is about other factors?
Barriers to entry are high because of patents and R&D.
The ______ _____ _____ represents a series of life stages defined by age, marital status, number of children, and other factors.
Blank 1: Family Blank 2: life Blank 3: cycle
_____ and _____ segmentation is now of prime importance in the United States as the number of natural-born citizens of ethnic minorities has grown and the number of immigrants has increased.
Blank 1: Race Blank 2: ethnicity
Personal Characteristics
Buyer-seller similarity, Attitudes toward risk, Loyalty
_____ target marketing refers to developing different value offerings for different targeted segments.
Differentiated
Baby Boomers
Forever young; conspicuous consumption - great acquirers of goods and services
Match each generational group to the time period that the group represents.
GI Generation: matches 1901--1924 Silent Generation: 1925--1945 Baby Boomers: 1946--1964 Generation X: 1965--1977 Generation Y (millennials): 1978--1994 Generation Z: after 1994
____ segmentation is a type of demographic segmentation that recognizes differences both in the needs and wants of men versus women as well as recognizing the distinction between sex-typed people.
Gender
_____ segmentation is a type of demographic segmentation that recognizes differences both in the needs and wants of men versus women as well as recognizing the distinction between sex-typed people.
Gender
Which generational group is pegged as being a very entrepreneurial group being responsible for more than 70 percent of the new business start-ups in the United States?
Generation X
_____ segmentation is a type of age segmentation that helps get at the heart of differences in needs and wants by understanding differences in groups of people by generation.
Generational
____ segmentation divides consumer groups based on physical location. (Enter one word in the blank.)
Geographic
_______ segmentation is based on a very quantifiable demographic variable and is usually analyzed in incremental ranges. This segmenting approach is used by marketers quite frequently.
Income
Demographic:
Industry, Company size, Location
What is a true statement regarding positioning?
It is executed through unique combinations of the marketing mix variables.
_____ segmentation recognizes that there may be a number of consistent needs and wants demonstrated by consumers based on what type of job they have.
Occupational
Which of the following are criteria for effective segmentation? Select all that apply.
Segment can be reached to deliver the value of the product, and subsequently can be effectively and efficiently managed. Segment is clearly differentiated on one or more important dimensions when communicating the value of the product. Segment is readily identifiable and can be measured. Segment is of sufficient size to warrant investing in a unique value-creating strategy for that segment as a target market.
Which of the following are key business market segmentation variables? Select all that apply.
Situational Factors Operating Variables Personal Characteristics Demographic Purchasing Approaches
Operating Variables
Technology, User status, Customer capabilities
At the heart of segmentation is the process of Blank______, which means communicating and delivering value in different ways to different customer groups.
differentiation
When a company communicates and delivers value in different ways to different customer groups, it is engaged inBlank______.
differentiation
Benefits sought is a variable used in Blank______ segmentation.
behavioral
Dividing consumer groups according to similarities in benefits sought or product usage patterns is called Blank______ segmentation.
behavioral
A product that is sold primarily to one gender that is then adapted to appeal to another gender is a gender- ____ product.
bending
What are five approaches to geographic segmentation?
by climate by growth in population by size of population by region by density of population
Demographic, psychographic, and geographic are Blank______.
categories to segment consumer markets
Target marketing with a focus strategy that involves targeting a large portion of a small market is called Blank______ target marketing.
concentrated
Dividing consumer groups based on a variety of readily measurable descriptive factors about the group is called Blank______ segmentation.
demographic
Segmentation based on age, gender, or occupation would be considered ____ segmentation.
demographic
What are the four approaches to market segmentation?
demographic behavioral psychographic geographic
Segmentation that might lead a firm to offer its credit cards to specific consumers based on some anticipated future payoff is called Blank______.
educational segmentation
Segmentation that might lead a firm to offer its credit cards to specific consumers based on some anticipated future payoff is called Blank______. Multiple choice question.
educational segmentation
Which are characteristics of Baby Boomers?
feeling of being forever young personify conspicuous consumption
______ segmentation is a hybrid form of segmentation that considers both geographic and demographic factors.
g
Recently, a trend is growing to take a less traditionally rigid approach toward Blank______ segmentation by looking past the simple and traditional male/female dichotomy and to make more of a distinction between sex-typed people. Multiple choice question.
gender
When a product sold to one gender is adapted for the other gender, it is referred to as a (n) Blank______ product.
gender-bending product
A type of age segmentation that helps get at the heart of differences in needs and wants is called Blank______ segmentation.
generational
A hybrid form of segmentation that considers both geographic and demographic factors is called Blank______.
geodemographic segmentation
Dividing consumer groups based on physical location is called Blank______ segmentation.
geographic
Segmenting by region, density of population, size of population, growth in population, or climate is called Blank______.
geographic segmentation
The availability of credit means that consumers' income may not necessarily reflect one's ability to buy a product. This is why using Blank______ segmentation alone can be problematic.
income
The process of dividing a market into meaningful smaller markets or submarkets based on common characteristics is called Blank______.
market segmentation
If Bentley Pharmaceuticals is primarily focused on competitive forces, which of the following competitive forces is the least important?
new entrants to their market
What three demographic variables are taken into consideration when composing social classes for segmentation?
occupation income education
Which of the following are consumer variables that psychographic segmentation relies on to segment a market? Select all that apply.
personality activities opinions
Which are characteristics of Baby Boomers?
personify conspicuous consumption feeling of being forever young
Data gathered from Blank______ helps to develop a perceptual map. Multiple choice question.
positioning
Select three characteristics that describe the Generation X group.
prefers a work-life balance referred to as the "baby bust" very entrepreneurial
The U.S. market is attractive, has growth potential, and is already tied to a specific brand offered by Company A. Company A wants to expand its offerings in the United States. Company A is most likely focused on Blank______. Multiple choice question.
segment size and growth potential
It is important to remember that an essential part of executing a(n) Blank______ approach is determining that the portion of the market is of sufficient size to warrant a unique strategy.
segmentation
Market ___ divides a market into meaningful smaller markets or submarkets based on common characteristics.
segmentation
Segment size and overall strategic fit with the company's goals and capabilities are two factors used to Blank______.
select target markets
Segment ______ and potential growth are key factors when analyzing segment attractiveness.
size
What three variables are typically used in demographic segmentation.
social class gender income
Segmentation that involves grouping consumers by a standardized set of social strata around the familiar lower class, middle class, and upper class, or their substrata, is called Blank______.
social class segmentation
The process of evaluating market segments and deciding which show the most promise for development is called Blank______.
target marketing
What is the process of evaluating market segments and deciding which among them shows the most promise for development?
target marketing
Which of the following is not a level of priority for development of potential target markets?
target markets pursued by competitors
A series of life stages defined by age, marital status, number of children, and other factors is called Blank______.
the family life cycle
Target marketing that is a one-market strategy, sometimes referred to as an unsegmented mass market, is called Blank______ target marketing.
undifferentiated
Which approach to selecting a target market is the broadest?
undifferentiated
In what two ways are markets segmented based on behavioral segmentation?
usage patterns benefits sought
Match the levels of priority for development of potential target markets to its corresponding description.
1. primary target markets: Choice those segments that clearly have the best chance of meeting ROI goals and the other attractiveness factors 2. secondary target markets: Choice those segments that have reasonable potential but for one reason or another are not best suited for development immediately 3. tertiary target markets: Choice those segments that may develop emerging attractiveness for investment in the future but that do not appear attractive at present 4. target markets to abandon for future development: Choice those segments that demonstrate little or no potential for investment
Generation X
Choice Cynical and media-savvy; work to live, not live to work
GI Generation
Choice Financial security and conservative spending (shaped by hard times and the economic depression of the 1930s)
Generation Z
Choice Multicultural; grown up in affluence; big spending power
Generation Y (millennials)
Choice Pragmatic, optimistic, and focused on urban style
Silent Generation
Choice Strength in human relation skills; respectful of others opinions
doubtful positioning
Choice when the claims made for the product or brand are not regarded as credible by consumers
positioning
Communicating one or more sources of value to customers in ways that connect needs and wants to what the product has to offer.
____ means communicating and delivering value in different ways to different customer groups.
Differentiation
market Segmentation
Dividing a market into meaningful smaller markets or submarkets based on common characteristics
____ segmentation might lead a firm to offer its products based on some anticipated future payoff from the consumer.
Educational
target Marketing
Evaluating the market segments, then making decisions about which among them is most worthy of investment for development.
What are two reasons why using income alone as a segmentation approach is problematic?
People misstate or refuse to reveal their income on questionnaires. The availability of credit allows consumers to purchase more than their income would dictate.
____ occurs when the firm turns its attention to creating, communicating, delivering, and exchanging offerings that have value to the target markets so that customers understand its ability to fulfill their needs and wants.
Positioning
A type of segmentation that is based on a very quantifiable demographic variable and is usually analyzed in incremental ranges is Blank______. Multiple choice question.
income segmentation
What are three sources of marketing differentiation?
innovative leadership service leadership price leadership
