One of the most popular bases for segmentation is ________ segmentation because consumer needs, wants, and usage rates often vary closely with these variables. Additionally, they are easier to measure than most other types of variables. Often when marketers first define segments using other bases, such as benefits sought or behavior, they often rely on this base of segmentation to assess the size of the target market and reach it efficiently.
Many marketers think that companies should aggressively promote only one benefit to the target market. Former advertising executive Rosser Reeves, for example, said that a company should develop which single feature concept for each brand?
Unique selling proposition (USP)
Business buyers can be segmented geographically, demographically based on industry and company size, or by benefits sought, user status, usage rate, and loyalty status. However, business marketers also use some additional variables such as operating characteristics, personal characteristics, and what other factors?
Purchasing approaches and situational factors
Modern communication technologies enable consumers to connect across many of the traditional segmentation bases. Increasingly, firms will employ ________ segmentation in the international market to form segments of consumers who have similar needs and buying behaviors, even though they are located in different countries.
Although most producers of tablets market their devices to adults, Amazon has spotted a smaller tablet market. Feedback from parents suggested that they were handing their entertainment-packed Kindle Fire tablet over to their young children for entertainment, education, and babysitting purposes. Amazon introduced FreeTime Unlimited, a multimedia subscription service targeted toward three- to eight-year-olds. This strategy employs which base for segmentation?
Age and life-cycle demographic segmentation
There are four steps in designing a customer-driven marketing strategy. The second two, ________ and ________, deal with how the firm decides on the value proposition for the markets and how it will create value for the chosen markets.
Cruise ships and companies in the travel industry often divide the market into segments according social class, lifestyle, or personality characteristics, which is also known as what type of segmentation?
Traditionally, marketing was not focused on specific buyers but marketers were scattering their marketing efforts through ________, which is more of a “shotgun” approach.
When choosing a target-marketing strategy, the firm should pay close attention to several factors. In addition to competitors’ marketing strategies, market variability, product variability and the extent of variety, the firm should consider which of the following?
The product’s life cycle stage
A grocery chain decides to divide the market into urban, suburban, and rural markets and then direct efforts towards the suburban segments first and eventually move into urban areas. The grocer is employing what type of segmentation?
Marketers use which type of segmentation to help increase product usage? This type of segmentation groups buyers according the situations under which they get the idea to buy, actually make their purchases, or use the purchased items.
What is the third step in the differentiation and positioning task?
Selecting an overall positioning strategy
The positioning of a brand is called the “brand’s value proposition,” which is the full mix of benefits on which a brand is differentiated and positioned. There are essentially five possible value propositions. Which of the following examples is not correctly paired with a brand?
Costco/more for less
A cosmetics firm selects seven different segments to target with five different brands and product lines. The firm has embraced which targeting strategy?
One of the most frequently used systems is ________, which can break down markets by zip codes and will classify households into lifestyle segments. An example of a lifestyle segment is Sports Utility Families.
After market segmentation, the firm next will decide on which segment to target. Targeting can be carried out at several different levels ranging from mass marketing, which is very broad, to ________, which is very narrow.
There are four steps in designing a customer-driven marketing strategy. The first two, ________ and ________, deal with selection of the customers the firm chooses to serve.
market segmentation; targeting
Crest toothpaste does not segment the market by geography or gender, but it divides it by the features and outcomes buyers expect from their toothpaste such as whitening, cavity-fighting, or breath-freshening qualities. What approach is Crest using to segment the market?
Even when competing offers look the same, buyers might perceive a difference based on company or brand ________ differentiation. A company’s or brand’s identity should convey a product’s distinctive benefits and positioning derived through creativity and hard work.
There are many ways to segment a market, but not all segmentation strategies are effective. To be useful, market segments must meet four requirements. Which one of the following is an undesirable quality for segmenting markets?
A firm learns that potential customers are graduating from high school and soon attending college. It might segment the market based on ________ and try to reach potential buyers who are consumers facing life-stage changes and who can be turned into heavy users for products such as popcorn, credit cards, or air travel. What approach to segmentation is this approach?
In the four-step process used to design a customer-driven marketing strategy, which step involves dividing the market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes?
The department store chain Macy’s has rolled out a localization program called “My Macy’s” in which merchandise is customized under 69 different geographical districts. Due to climate and taste differences, the firm markets brands and promotions specifically to the needs and wants of local customer groups. Which marketing strategy is this?
The ________ is the way a product is defined by consumers or the place the product occupies in consumers’ minds relative to competing products. Products are made in factories, but brands happen in the minds of consumers.
P&G offers a great variety of bestselling detergent and laundry care brands, including Tide, Gain, Cheer, Era, Dreft, Bold, Bounce, and Downey. Essentially, in the laundry market, P&G is competing with itself. Why does it offer so many competing brands?
The firm wants to appeal to different market segments.