MKTG 370 - Exam 2 Chapter 9

When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that markets needs it is using a(n) _____ targeting strategy.

Concentrated. Firms that select a single, primary target market to focus all their energies on use a concentrated targeting strategy to tailor their offer to satisfy their needs and wants.

_____ segmentation, the most common means to define segments, involves defining groups based on characteristics such as age, gender, income, and education.

Demographics. Demographic segmentation involves grouping individuals based on objective characteristics such as age, gender, income, and education. It is the most common means to define segments.

What is the first step marketers use to derive a perceptual map?

Determine consumers' perceptions and evaluations of the product or service in relation to competitors.

Large firms with multiple offerings in a particular product category engage in _____ targeting strategies to obtain a bigger share of the market, increase the overall market for the product categories they sell, and to diversify their businesses.

Differentiated. Firms embrace differentiated targeting because it helps them obtain a bigger share of the market, increase the market for the products overall, and for diversification.

When a firm evaluates its overall mission, including its strengths, weaknesses, opportunities, and threats, it is engaged in which step of the segmentation targeting and positioning process?

Establishing overall strategy or objectives. The first step in the segmentation process is to articulate the vision or objectives of the company's marketing strategy, consistent with its mission as well as its current situation—its strengths, weaknesses, opportunities, and threats.

During which step of the STP process do marketers ask whether the segment is identifiable, substantial, reachable, responsive, and profitable?

Evaluate segment attractiveness. In order to evaluate the attractiveness of the various segments, marketers must first determine whether the segment is worth pursuing, using several descriptive criteria: Is the segment identifiable, substantial, reachable, responsive, and profitable?

Best Years Travel targeted consumers living in New York City who were over 50 years of age. Best Years was using _______________ segmentation.

Geodemographic. Geodemographic segmentation uses both location (geography: New York City) and demographics (age: over 50) to segment target markets.

The _____ indicates where a particular market segment's ideal product lies on the perceptual map.

Ideal Point.

The Segmentation, Targeting and Positioning Process is not always linear, but the final stage is to:

Identify and develop a positioning strategy. While the sequence may be altered given opportunities, the full sequence is to establish the strategy or objectives, describe the segments, evaluate segment attractiveness, select a target market and identify and develop a positioning strategy.

One reason Forever Green Lawn Service uses ___________________ segmentation is because finding new customers is highly costly.

Loyalty. Research has shown that it is usually much more expensive to find new customers than to keep existing customers. Benefit segmentation focuses on the benefits or value different customer segments receive from a product or service.

When selecting a target market, a marketer should:

evaluate the attractiveness of each potential new customer.

A manufacturer of t-shirts concentrates all its efforts on cost containment by offering the product in only one size but in a variety of colors, using a one-size-fits-all approach. This involves a _____ targeting strategy.

Mass Marketing. An undifferentiated targeting strategy, or mass marketing, involves very little differentiation if any in the products offered to the marketplace.

Land's End allows customers buying shirts to choose from a variety of fabrics, types of collar and sleeve, based on the customer's specific measurements, capitalizing on new technologies to mass customize its products and services. This is an example of

Micromarketing. Firms that use mass customization to tailor products to suit the needs of individual consumers, it is using micromarketing or one-to-one marketing.

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

Occasion.

The Nike swoosh is an example of which of the following positioning tools to create a position for the brand that distinguishes it from its competitors?

Positioning based on symbolism.

A firm's __________________ must be consistent with and derived from the firm's mission and objectives, as well as its current situation.

segmentation strategy. Marketers match their core competencies, as outlined in a firm's mission and objectives, with market segments mostly likely to value what they have to offer.

Once segmenting and targeting have been completed, the marketer turns to _____________, often using a perceptual map to display graphically the customers' perceptions of the product and the competitors' products.

Positioning. Positioning involves five steps: determining consumers' perceptions and evaluations, identifying competitors' positions, determining consumers' preferences, selecting the position and monitoring the positioning strategy.

Market growth, market competitiveness, and market access are all important factors in analyzing which criteria of segment attractiveness?

Profitable. Marketers must also focus their assessments on the potential profitability of each segment, both current and future. Some key factors to keep in mind in this analysis include market growth, market competitiveness, and market access.

Jack describes himself as having a strong need to belong to a group, which motivates him to seek out activities that involve others. Marketers would use this type of information when developing _____ segments.

Psychographic. Psychographics are often defined by how people describe themselves, based on how they occupy their time and the underlying psychological reasons for those choices.

In order for the ______ criteria to be met when evaluating segment attractiveness, the consumer must know the product or service exists, understand what it can do for him or her, and recognize how to buy it.

Reachable. The best product or service cannot have any impact, no matter how identifiable or substantial the target market is, if that market cannot be reached (or accessed) through persuasive communications and product distribution. The consumer must know the product or service exists, understand what it can do for him or her, and recognize how to buy it.

In order for segmentation strategy be successful, the customers in the segment must react similarly and positively to firm's offering, corresponding to which of the following criteria for evaluating segment attractiveness?

Responsive. Firms must strive to target segments of customers in ways that will allow them to be responsive to those marketing efforts.

Which step in the STP process develops descriptions of the different segments, which helps firms better understand the customer profiles in each segment?

Select segmentation method. The second step in the segmentation process is to use a particular method or combination of methods to segment the market. This step also develops descriptions of the different segments, which helps firms better understand the customer profiles in each segment.

Marketers like Benetton want their ads to appeal to one's _____________, suggesting to consumers "I'm like them, so I should buy their products."

Self-concept is the image people have of themselves and can be a basis for psychographic segmentation.

Once a marketer has selected potential market segments for the product or service, he or she can evaluate each segment to determine if it is: __________________

Substantial, responsive, profitable, reachable. After identifying potential market segments, marketers ask and address questions such as "Is the segment substantial?" meaning are there enough people to potentially sell to? "Is the segment responsive?" addresses the question of whether consumers will likely respond to the firm's marketing strategy. Whether the potential segment is profitable is an obvious concern, while whether the segment is reachable, meaning can the marketer communicate with and deliver their goods to that segment, is also critical to successful marketing.

Market Positioning

The place the product occupies in consumer's minds relative to competing products.

The positioning strategy can help communicate a brand's _____, representing the unique value provided to customers.

Value Position. The value proposition is the unique value that a product or service provides to customers representing how it is better than and different from those of competitors.