BA370 ch 9

true
Coca-Cola launched Coke Zero to avoid cannibalizing current sales and to attract new customers in a segment they might not get with Diet Coke.
true
For products like pencils and paper clips, marketers should probably use an undifferentiated targeting strategy.
true
When deciding how to promote his new medical oncology center, Dr. Jones decided that he did not need to throw a large grand opening reception. Instead, he promoted the center to the internal medicine doctors in the area, who were the doctors most likely to refer patients to the center. Dr. Jones was engaged in a concentrated targeting strategy.
true
It would be logical for bathing suit marketers to use geographic segmentation.
true
Giant Food Stores in suburban Washington, D.C., adjusts its ethnic food aisle offerings based on the ethnic groups living near each store. Giant Foods is using geodemographic segmentation.
true
Positioning strategies generally focus either on how the product benefits the consumer or on how it is better than competitors’ products.
true
Perceptual maps include positions of current brands as well as ideal points where a consumer segment would want a product to be.
true
. The first step in the STP process is to establish an overall strategy.
true
Automobile manufacturers could build cars specially designed for very tall people (for example, over seven feet), but it is likely that this segment is not substantial.
Segmentation and targeting were of little use compared to developing special advertising.
Which of the following is NOT true about this effort?
identify and evaluate opportunities by conducting segmentation, targeting and positioning analysis.
. Sally is in the new marketing department of a midsized lawn and garden company. She is working on
the first marketing plan the firm has ever used. She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to
are part of a firm’s marketing strategy.
Segmentation, targeting, and positioning
market segments
Alex has found that both commercial and residential real estate buyers respond positively to his marketing communication message. Alex has identified __________ that respond similarly to his marketing efforts.
a clear, distinctive, and desirable understanding of their products relative to competing products.
For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting their marketing mix variables in order to give customers
clearly articulate the firm’s vision or marketing strategy objectives.
The first step in the STP process is to
undifferentiated targeting strategy.
. For products like pencils and paper clips, which provide the same benefit for all consumers, marketers should probably use a(n)
differentiated its product
In a classic example of segmentation strategy, years ago Swift
differentiated targeting
Adidas Group owns Reebok, Rockport, and Greg Norman brands. Adidas uses the different brands to pursue a(n) __________ strategy.
obtain a bigger share of the shoe market.
Adidas Group owns Reebok, Rockport, and Greg Norman brands. Having a variety of brands allows Adidas to
lower overall risk
One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify its business and
is often expensive
Although a differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market, this strategy
it helps to obtain a bigger share of the market
Firms use a differentiated targeting strategy because
concentrated
When Penguin Catering Services first opened, the owner decided to target only events at resorts in its geographic region. Penguin Catering was using a(n) __________ targeting strategy.
micromarketing
. __________ is an extreme form of a targeting strategy.
micromarketing
“Corporate pilot fish” are former employees who start a new business based primarily on contacts and contracts with their old company. A corporate pilot fish would probably pursue a __________ targeting strategy.
micromarketing
. Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order shoes with custom color combinations. This is a form of
concentrated
. Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies.
misguided geographic segmentation
. When Mr. How, a Pennsylvania-based discount lumber and hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in
geographic segmentation
Differences in weather and climate create opportunities for
demographic
. NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of race fans were female. This is an example of __________ segmentation.
demographic
__________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach.
demographic
Beer marketers know that high school educated, working-class males from the ages of 25 to 40 make up an attractive market for their products. This is a __________ segment of the beer market.
demographic
Television advertising has recently expanded to include “mini-ads,” which are short ads lasting five to ten seconds. These ads are most useful in advertising to men, since men are more likely than women to channel surf during commercial breaks. This type of advertising will be more useful to marketers engaged in __________ segmentation.
lifestyle
. Demographic segmentation is segmentation based on all of the following EXCEPT
“I’m like them, so i should but their products”
. Marketers like Benetton want their ads to appeal to one’s self-concept, suggesting to consumers
describe themselves
Psychographics is the segmentation method that delves into how consumers
it is based on underlying reasons why people make choices
Paul is considering psychographics as a way to segment the market for his small travel agency. This approach to segmentation offers him an advantage because
emphasize the benefits these consumers are looking for in a college education.
Education marketers have learned that the primary motivations of most nontraditional college students are self-respect and self-fulfillment. Understanding the values of this market segment allows marketers to
psychographic
Baby Boomers represent a huge demographic segment for travel marketers. Baby Boomers are also heavily motivated by self-fulfillment, which creates the possibility of __________
self-concepts
. Beverage companies often use television commercials with images of young people laughing and enjoying themselves on a beach or in a club. These images are designed to appeal to consumers’ __________, suggesting “be like me.”
the way we live our lives to achieve our goals
If values provide goals, and self-concept is the way we see ourselves, lifestyles are
psychographic
VALS is the most widely used __________ segmentation tool.
psychographic, demographic
Marketers have found that __________ segmentation is often more useful for predicting consumer behavior than __________ segmentation.
all of these
Firms might use multiple segmentation methods to
is a more expensive method for identifying potential customers
Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation
benefit
__________ segmentation is the segmentation method most directly related to value creation
providing classes at convenient times and offering online courses.
A university using benefit segmentation and targeting students who want to get a degree quickly while still working full time would focus on
benefit
The Lite beer commercial with the slogan, “less filling, tastes great,” was based on __________ segmentation.
benefit
Toothpastes sold in supermarkets and pharmacies promise various results, such as whiter teeth, protection against gum disease, tartar control, or fresh breath. Toothpaste marketers are using __________ segmentation.
geodemographic
Golden Years Vitamin Corporation targets consumers living in Florida who are over 65. Golden Years is using __________ segmentation.
geodemographic
The phrase “birds of a feather flock together” captures the idea of __________ segmentation.
geodemographic
PRIZM and Tapestry by ESRI divide and sort small geographic areas into categories using 60 or more demographic and lifestyle characteristics. These market research tools are examples of __________ segmentation.
real estate values by subdivision
Gloria is opening an upscale women’s clothing store in a growing suburban residential area. Gloria knows her target market is upper-income women living within twenty miles. She can’t afford to purchase a PRIZM or Tapestry analysis so she will most likely use __________ as a basis for targeting her market.
retailers
. Geodemographic segmentation can be particularly useful for __________, because customers typically patronize stores close to their neighborhood.
usually quite profitable
. Marketers often create a special marketing mix for loyalty segments because these segments are
loyalty
When Ron complained to his bank about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests. The branch management included Ron in its __________
frequent flyer programs
Airlines were among the first retailers to embrace loyalty segmentation when they created
the high cost of finding new customers
. One of the reasons marketers use loyalty segmentation is
what their customers need
While demographic and geographic segmentation of retail customers is relatively easy, these
characteristics do NOT help marketers determine
geodemographic; lifestyle
Kim’s Kayak Tours initially identified active retirees living in the retirement community nearby as one of its target markets. Kim then tailored her service and marketing message to the interests and schedules of that audience. Kim initially used __________ segmentation and then used __________ segmentation.
geodemographic segmentation; lifestyle or benefit segmentation
. Marketers often employ a combination of segmentation methods, using __________ to identify and target their customers, and __________ to design products and messages to appeal to them.
evaluate the attractiveness of each segment.
Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to
realistic
. Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate whether or not each segment is all of the following EXCEPT
identifiable
Carlos has identified four potential market segments for his Rent-A-Chef home meal catering service. He
will now compare the segments to see if they are different enough from each other. Carlos is evaluating
whether or not each segment is
substansive
Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power. Greta is concerned with whether the segment is
reachable
. Ryan wants to sell personal website services to American soldiers in Afghanistan. Because of the difficulty of communicating with people in a war zone, Ryan may have trouble with this segment not being
reachable
With access to the Internet nearly universal in the United States, many potential market segments have become more
demographic
Talbots, an upscale women’s clothing store, targets college-educated women between 35 and 55 years old with average household income of $75,000 or more. This is a form of __________ segmentation.
lifestyle
When Talbots, an upscale women’s clothing store, tries to portray an image of “traditional, conservative, and with good taste,” they are appealing to their target market’s
reachable
PRIZM segment.
80. College students can be a less __________ market segment because students’ media habits are quite diverse
responsive
For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm’s marketing mix. The market segment must be
responsive
. When Starbucks first opened, many critics suggested, “No one will pay $4.00 for a cup of coffee.” Starbucks’ critics suggested consumers would not be __________ to the company’s offerings.
responsive
The manager of Plantation River Country Club wanted members of the very upscale club to use the bar and dining facilities more frequently. He offered a two-for-one “happy hour” special but few members showed up. The manager did not have a grasp of what would make his target market
profitability
Caroline is assessing market growth, market competitiveness, and market access for each segment she has identified. Caroline is assessing __________ of each potential market segment.
the number of competitors, entry barriers, and product substitutes.
After assessing the market growth potential for his company’s baby products in Mexico, Harmon wanted to evaluate market competitiveness. To do this, Harmon would consider
ease of accessing or developing distribution channels and brand familiarity.
After assessing the market growth potential and market competitiveness for his company’s baby products in Mexico, Harmon wanted to evaluate market access. To do this, Harmon would consider
segment perceptions
Which of the following would NOT be used in calculating the profitability of a segment?
6 dollars
Fiona wants to sell a local advertising calendar. There are 1,000 households in her community, and she estimates that 30 percent will buy a calendar. The printing company will charge a $100 setup fee, and calendars will cost $4.00 each to print. What price will she need to charge to cover all costs and make a
$500 profit?
The average number of school-age children in families sending a child to the day care center
. Paula is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will not specifically help her in this analysis?
all of these
. In addition to calculating the potential profitability of a market segment, marketers will also consider
select a target market
. Ronaldo wants to develop an Internet auction-based business and is working through the STP process. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Ronaldo now has to
match the firm’s competencies with a market segment’s attractiveness.
When selecting a target market, firms should attempt to
positioning
. __________ involves defining the firm’s marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of the firm’s offerings relative to competitors’ offerings.
positioning
Whenever Donald calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local business person and has been in business over twenty years. Donald is __________ his business relative to his competition.
profitability
Regina wants to position her financial services company. Regina can position her services according to all of the following EXCEPT
the value proposition
Whenever the president of the local public university promotes the institution, he emphasizes the university’s price (much lower than neighboring private colleges) and high quality. He is positioning the institution based on
product attributes
We often see advertisements touting a product as being made with natural ingredients, or being long lasting. Marketers using these types of promotions are positioning their products based on
all of these
Alexis has selected target markets for her fashion accessories store in a suburban strip mall. She is now deciding how to position the accessories. She could consider positioning based on
what the target market would consider the most important features.
Marco was assigned to help create a positioning strategy for his employer’s products based on product attributes. He should consider
symbols
Almost all U.S. political candidates use some combination of red, white, and blue in their campaign posters. They are trying to position themselves in voters’ minds using
avoid looking too much like the competitor so that he’d confuse the target segment.
Jim wants to position his firm against his competitors. In doing so he should
perceptual map
.A __________ is often used to illustrate the position of a firm’s products or brands in consumers’ minds.
ideal point
Within a perceptual map, a(n) __________ represents where a particular market segment’s desired product would lie.
It’s a way to show the position of the company in ten years
Why create a perceptual map?” asked David. Andreas, the senior marketing manager, gave him four reasons. Which of the following is NOT a valid reason?
consumers
The perceptions of __________ are being measured in a perceptual map.
occasion segmentation
Which of the following segmentation methods is being used when M&Ms offers special wedding-themed
packaging for customized M&Ms (imprinted with the names of the bride and groom)?
occasion segmentation
Godiva Chocolates produces specially decorated boxes of candies for Valentine’s Day, Easter, and Christmas. This is an example of
The unique value that a product or service provides to its customers
.Which of the following defines a value proposition?
self-values
Overriding desires that drive how we live our lives are called
offering everything to everyone
When Victoria’s Secret offers different product lines, such as its Pink line, it is trying to capture the market by
responsive
When evaluating the attractiveness of the segment, if a segment is expected to react positively to the firm’s offering, we say that the segment is
The firm’s benefits overlap with customer needs/wants but not with competitors’ benefits.
What is the best situation in the Circles for a Successful Value Proposition framework?
the intersection between customer needs/wants and the firm’s benefits.
In the Circles for a Successful Value Proposition framework, the value proposition is represented by
unmet customer needs/wants
In the Circles for a Successful Value Proposition framework, the portion of the customer needs/wants circle that doesn’t overlap with anything else represents
the price of the product or service being offered.
.Which of these is NOT one of the main components of a value proposition?
geodemographic segmentation
Let’s Dish is a meal-preparation service operating in three states. Customers visit a Let’s Dish store to select and partially prepare their meals, which are then packaged for the freezer. At home, the customer can pull a meal out of the freezer and warm it in the oven or microwave. If Let’s Dish wanted to expand into new areas of the U.S., what segmentation method would probably be most useful in choosing new locations?
benefit segmentation
Social networking sites that compete directly with Facebook have a difficult time surviving; however, LinkedIn has survived by focusing on the needs of business professionals, who seek to network with colleagues, share their expertise, post online resumés, and look for new jobs. What segmentation method is LinkedIn using?