marketing exam 2 continued

market segmentation
involves aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action
market segments
relatively homogeneous groups of prospective buyers that result from the market segmentation process
product differentiation
strategy of using different marketing mix activities to help consumers perceive a product as being different and better than competing products
what does segmentation do?
1. forms meaningful groupings
2. develops specific marketing mix actions
build to order
manu a product only when there is an order from a customer
steps in segmenting and targeting markets
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
way to segment consumer markets and what they mean?
geographic: region; where they live or work
demographic: household size
psychographic: lifestyle
behavioral: product features, usage rate, 80/20 rule
ways to segment organizational markets and what they mean?
geographic: statistical area
demographic: NAICS code, # of employees
behavioral: usage rate
usage rate
quantity consumed or the number of store visits during a specific period ( frequency marketing )
market product grid
framework relating the segments of a market to products or marketing actions of the firm
forming a market product grid
identifying and labeling markets and product groupings
criteria to use in selecting target markets
1. market size: determines whether or not worth going after
2. expected growth
3. competitive position: less competition, more attractive segment
4. cost of reaching the segment: segment that is inaccessible for firms market should not be pursued
5. compatibility with org objectives and resources
marketing synergies
horizontal across grid
product synergies
vertical down grid; represents opportunity for efficiency in research and development
product positioning
place a product occupies in consumers minds on important attributes relative to competition
head to head positioning
competing directly with competitors on similar product attributes in same target market
differentiation positioning
seeking less competitive smaller market niche in which to locate brand
product re positioning
changing place a product occupies in consumers mind relative to competition
80/20 rule
80% of a firms sales are obtained from 20% of its customers
synergy analysis
seeks growth opportunities by finding the optimum balance between marketing efficiencies versus production efficiencies
perceptual map
displaying or graphing in two dimensions the location of products or brand in minds of consumers to enable a manager to see how consumers perceive competing products or brands and then take marketing actions
consumer behavior
is the term that describes the actions a person takes in purchasing and using products and services.
When Edie fed her dog last night, she realized she was almost out of dog food. In which stage of the purchase decision process is Edie?
problem recognition
When Thomas goes to the store to buy breakfast cereal, he considers buying Rice Krispies, Cocoa Krispies, Rice Chex, and any other cereal made with rice. These cereals are his:
consideration set
consideration set
the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware
public sources include:
various product-rating organizations such as Consumer Reports, sales personal, government agencies, and radio and T.V. consumer programs.
Most likely, how might consumers who purchased a new innovative type of running shoe try to reduce any cognitive dissonance they might feel?
read ads for running shoes even after the purchase has been made
For which of the following purchases would an elementary school teacher be most likely to engage in routine problem solving?
construction paper
example of situational influence that can have an impact on the purchase decision process
physical surroundings
Ads for Visa debit cards show people who need to make a purchase quickly but are unable to do so because the retailer won’t accept a check without several forms of identification. Which situational influence is Visa using to show the benefits offered by its debit cards?
antecedent states
Several different food manufacturers use the American Heart Association seal in their ads for food products that are low in saturated fat and cholesterol. This seal and what it represents is most closely related to which of the following needs
safety
key traits
are enduring characteristics within a person or in his or her relationship with others.
After Emile purchased a XBOX game console for Christmas, he noticed a review of the product in Business 2.0 magazine. Jon who says he read the same magazine did not notice the review. Which of the following terms most likely explains why one magazine reader saw the review and the other did not?
selective exposure
retailers can reduce problems associated with selective retention by:
providing brochures for consumer to take home
When the television production company that produces Law & Order series uses the Law & Order name on two other series, Law & Order: Special Victims Unit and Law & Order: Criminal Intent, it relies on __________ to convince fans of the original show that the new shows will be equally well-crafted.
stimulus generalization
Febreeze is an odor-controlling spray manufactured by Procter & Gamble. When Febreeze was introduced, it was rumored to be a pet killer. P&G had to spend lots of money debunking the false claim and requested help from the ASPCA before consumers would purchase the product in the numbers expected. This promotion to debunk a false claim changed consumers’ attitudes by:
changing beliefs about the extent to which a brand has certain attributes
The VALS program is most closely associated with:
lifestyle
To attract new members, a golf club would focus its marketing efforts on people who view the current members as a(n) __________ group.
aspiration
The process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers is:
consumer socialization
which type of purchase is most likely to be the result of joint family decision making?
family vacations
Influencers
do not make the final decision but their info, status, role, or expertise is considered by those who do
The largest racial/ethnic subculture in the U.S. in terms of population and spending power is
hispanic
Richard Magnus runs the national outreach office for the Evangelical Lutheran Church. His organization compiles data on immigration, population shifts, education, income, age, and ethnicity that he uses to determine where there is a need for a new church. These compiled data are an example of __________ and help the church understand who its customers are.
tactical support tools
first step in marketing research process is:
define the problem
An ESPN.com-commissioned study by Copernicus Marketing Consulting and Research wanted know to if sports-centered males are spending as much time on the computer digesting sports information as they are spending in front of their televisions. This is an example of a(n):
problem
Youth Culture is a research and media firm that developed a magazine called Watch for students aged 11-13. The idea for this publication began as a verbal description of the magazine or
a new product concept
A general rule of thumb among marketing researchers is to use __________ first and then collect _________
secondary data, primary data
The Census Bureau gathers data on immigration, population shifts, education, income, age, and ethnicity. It has specialists who compile, analyze the data, and publish the data. The Census Bureau uses __________ data to describe the population.
primary
Someone making the statement, “Before we begin this project we’ll have to hire someone to interview people to find out how many people in a 50-mile radius could use our service, what their average income is, and what their occupations are.” is preparing to
collect primary data
focus groups
informal sessions of 6 to 10 past, present, or prospective customers in which a discussion leader asks their opinions about the firm’s and its competitors’ products, how they use these products, and special needs they have that these products don’t address, the situation described in the question.
“Do you like pretzels and chips? ___ Yes ___ No,” is a poorly worded question because:
it is actually two questions in one
Teenagers complete drawings used by researchers at Teenage Research Unlimited (TRU) to help discover what teenagers like, wear, listen to, read and watch. What type of method does TRU use to collect this data?
fuzzy front end
Which of the following is the BEST example of an unanswerable question that might be asked on a survey about consumer online privacy?
what was the first day you began using internet?
A marketing researcher had people choose the sweeter juice from two containers, a red one and a yellow one. The respondents expressed a definite preference although the juice was exactly the same. This type of marketing research is called a(n)
experiment
Retail stores use a technique called _________ to find statistical links using large databases that suggest marketing opportunities.
data mining
Hot Topic is a California-based retailer that opened six Torrid plus-size-only retail stores that cater to women aged 15-30. Hot Topic expects its six Torrid stores to achieve $56 million in revenues in 2008. This $56 million is a(n)
sales forecast
Which of the following forecasting techniques would be most accurate for estimating sales revenues from industrial users for the Port of Los Angeles/Long Beach for next year?
a survey of buyers intentions forecast
Which of the following sales forecasting techniques is the easiest to do?
direct forecast
Market segmentation involves aggregating prospective buyers into groups that have common needs and will
respond similarly to a marketing action
There is a large Chinese population in British Columbia. The Hong Kong Bank of Canada (HKBC) tries to design its services to attract first-generation Chinese. HKBC uses a __________ strategy.
market segmentation
When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids __________, which often results extremely high research, engineering, and manufacturing expenses.
the extra cost of developing and producing additional versions of the product
The ultimate criterion in segmenting markets is that __________ as a result of increased synergy.
customers should be better off
Modern Maturity magazine is a publication that is sent to all AARP members who by organization definition have to be at least 50-years-old to join. The market segment for Modern Maturity magazine was defined by:
demographic characteristics
Points North is a magazine targeted to consumers who live on the northside of Atlanta, Georgia. Given this information, you know its publisher selected its readership through __________ segmentation.
geographic
Nyquil advertises that it alleviates “the nighttime, sniffling, sneezing, coughing, aching, stuffy head, fever” and helps you get the rest you need to get better. Nyquil uses a segmentation strategy based on __________ variables.
benefits sought
The target market for cookbooks is predominantly female and over 25 while the readership for comic books is mainly males between the ages of 15 to 25. This is important __________ information for a publisher to know.
demographics
Department stores often use Claritas to understand the lifestyles of consumers in nearby neighborhoods. What customer characteristic is being used in this type of segmentation?
psychographic
The 80/20 rule is most closely related to which consumer segmentation variable?
psychographic
Which of the following variables is NOT commonly used to segment organizational markets?
ownership type
Five general criteria are often used to pick target segments. They include the size of the market, expected growth of the market, competitive position of the firm with respect to the market, and compatibility with the organization’s objectives and resources. What is the fifth criterion?
cost of reaching segment
Kellie Johnson makes jams and jellies that sell under the brand name of Yesterday’s Kitchen. In developing a marketing strategy to sell her product line, she decided to buy an ad in the local shopper’s newspaper that is well-read in her region of the country. Johnson has just
taken marketing actions to reach target markets
A product manager at Xerox responsible for its new network color printer might use which of the following segmentation variables?
location, NAICS code, # of employees, usage rate
A perceptual map most closely resembles a:
graph with horizontal and vertical axes
Which of the following is the best example of repositioning?
Slow sales of soup led the Campbell Soup Company to promote recipes using soup as a main ingredient.