MKG 300 Chapter 4

A ____ market is a market with broadly similar needs and sellers offering various and often diverse ways of satisfying those needs
generic
A generic market
looks at markets broadly and from a customer’s viewpoint
A transistor radio, an MP3 player and a portable CD player might complete in the same
generic market
A pencil, a dictating machine and a word processor might compete in the same
generic market
Which of the following is LEAST LIKELY to compete in the same generic market with the others?
pretzel
A “product-market” is a market in which:
With very similar needs and sellers offering various close substitute ways of satisfying those needs (same product from different companies; ex: camera by Nikon or Canon)
Which of the following is NOT true of a product-market?
Not part of a product-market definition: information about which specific retailers will sell the product
A firm’s “relevant market for finding opportunities” should
be bigger than the firm’s present product market – but not so big that the firm couldn’t expand and be an important competitor
The customer type component of the product-market should include:
Choose a name that describes all present (possible) types of customers?
Customer type
Refers to the final consumer of user of a product type
The disaggregating step in market segmentation involves ______.
Brainstorming about very different solutions to various generic needs and selecting some broad areas (broad product markets) where the firm has some resources and experience
The marketing management team for Dada Motors brainstormed a variety of solutions to the problem of how to transport people in the world. This process came during the ______ step in the market segmentation process.
Disaggregating step
Market segmentation
Is a two-step process: 1. Naming broad product-markets, and 2. Segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes
Given its interest in the broad product-market for “ready-to-eat, health-conscious snack foods,” which of the following should the Good Health Foods Co. do FIRST?
Segment the product-market to try to identify homogeneous submarkets and select an attractive target market.
Marketing managers want market segments to have each of the following characteristics EXCEPT:
Characteristics they DO want:
1. homogeneous (similar) within – the customers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions
2. Heterogenous (different) between – the customers in different segments should be as different as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions
3. Substantial – the segment should be big enough to be profitable
4. Operational – the segmenting dimensions should be useful for identifying costumers and deciding on marketing mix variables
Jazzy Tile Co. segmented its broad product-market and decided to aim at two different segments, offering each segment a different marketing mix. Jazzy Tile Co. is following the ______________ approach.
Multiple target market approach
The combined target-market approach:
Combining two or more submarkets into one larger target market as a basis for one strategy
Having segmented its broad product-market, Blue Chip, Inc. feels that three segments are similar enough that-together-they can be treated as one large target market and offered the same marketing mix. Blue Chip, Inc. is following the ______________ approach.
Combined target market approach
A producer of electrical components combined electrical supply wholesalers and manufacturers of electrical equipment into the same market segment-one of several segments it was targeting. Soon it lost the manufacturers’ business to a competitor. It seems that the firm failed to consider the risk of ______.
Too much aggregating
Segmenters, in contrast to combiners:
Segmenters: aim at one or more homogeneous segments and try to develop a different marketing mix for each segment
Combiners: try to the increase the size of their target markets by combining two or more segments
Segmenting dimensions
1. Qualifying dimensions- those relevant to including a customer type and a product market // 2.
Strategy decisions pertaining to product features, packaging, product line assortment, and branding will be most affected by which target market dimension?
Behavioral needs and attitudes of consumers
BEHAVIORAL (rather than DEMOGRAPHIC) segmenting dimensions include:
Behavioral: needs, benefits sought, thoughts, rate of use, purchase relationship, brand familiarity, king of shopping, type of problem solving, information required
Coorgs Coffee, Inc. has substantial market share in South America but seeks growth. Its managers want to expand into North America and target cities with populations of 50,000-99,999. Identify the segmenting dimension most probably being used by Coorgs Coffee.
Geographic???
When Hallmark stores offer a product line that includes everything you need to have a Spiderman theme birthday party, what is the primary segmenting dimension that Hallmark is using?
Demographic???
Deciding whether a group of customers should be included in a target market is the purpose of _____ dimensions.
Qualifying???
Compared to qualifying dimensions, determining dimensions:
Qualifying dimensions: those relevant to including a customer type and a product market
Determining dimensions: those that actually affect the customer’s purchase of a specific product or brand in a product market
Which of the following is MOST LIKELY to be a DETERMINING dimension with respect to purchase of a particular brand of coffee?
Taste
Segmenting international markets (as contrasted with domestic markets):
First, marketers segment by country or region – looking at demographic, cultural, and other characteristics, including of economic development
When moving to international markets, some firms insist that local operations and decisions should be handled by natives because: ______.
They have a feel for their markets
Clustering techniques applied to segmenting markets ______.
Clustering techniques: try to find similar patterns within sets of data
The clustering techniques that can be used in segmenting:
Computer searches all the data for homogeneous groups of people; when it finds them, marketers study the dimensions of the people in the groups to see why the computer clustered them together
Alpine Auto Repair keeps a record of customer oil changes and sends a reminder postcard to its customers when it’s time for the next oil change. This is an example of a ______ system.
Customer relationship management
When a customer orders a book at Amazon.com, the online retailer recommends related books that have been purchased by other customers who bought that book. Amazon is using a(n):
CRM database
Customer relationship management (CRM) helps consumer marketers ______.
(Definition: where the seller fine-tunes the marketing effort with information from a detailed customer database;)
Treat customers individually as segments of one
“Positioning” is a marketing management aid that refers to:
How customers think about proposed or present brands in a market
“Positioning” might cause a marketing manager to:
Not have a hard time differentiating???
When PepsiCo asked its advertising agency to develop an advertising program for its Mountain Dew soft drink, it gave the agency a statement describing the age and fun-loving spirit of its target market and the one-of-a-kind citrus flavor of the new product, what type of statement was this?
Positioning statement