MKT Chapter 8 Review Questions

1. Market segmentation is the dividing of the total market into smaller groups of people who share specific needs and characteristics. For example: Demographic Segmentation is based on Characteristics of a consumer, Geographic Segmentation is based on where people live, Psychographic Segmentation is based on lifestyle, attitude, personality, and values.
Market segmentation is the dividing of the total market into smaller groups of people who share specific needs and characteristics. For example: Demographic Segmentation is based on Characteristics of a consumer, Geographic Segmentation is based on where people live, Psychographic Segmentation is based on lifestyle, attitude, personality, and values.
2. Choose a Hospitality business (hotel or restaurant) and explain some segments in its overall market. Choose one of those markets and how it is targeted and how it differentiated itself from its competitors to position itself in the market.
McDonald’s is a prime example of a business which advertises to many market segments. It markets to families (with its variety of kids meals and “healthy alternatives” to french fries for the kids), people on a budget (with its dollar menu and other “Dollar Value” items), and it markets itself to people who are up early in the morning who just need something quick (with its breakfast selection which holds many things year round, but occasionally adds new things like the new “Steak, Egg and Cheese McMuffin). To differentiate from the other competitors in its line of work – fast food – it has marketed itself particularly well towards families and people with children. Many of their stores have children’s play areas, but many of their commercials show kids the fun and healthy side to eating at their establishment.
3. Identify a hotel or restaurant market segment in your community that you feel would be a good market segment to target. Explain the marketing mix you would put together to go after this market segment.
A local hotel market segment is family oriented hotels such as the Disney hotels. It is a good market segment to target in the greater Orlando area because of all the diversity in people that live here, most of which have kids/close relatives nearby. Besides the fact that Disney is already drawing in all the family-style guests to the area, sometimes they can only afford to go to Disney, but not to stay in one of their very lavish hotels.Not to mention that we live in a fairly tropical state and we are a natural vacation spot. An effective way to market to this segment in the local area would be billboards for all the parents that commute every day from home to work and back again. Seeing the ad over and over again would put the idea in their minds. Another way to advertise to the segment would be with commercials on local TV stations. Disney is going to bring many families to the area, and then they may be looking for a cheaper place to stay while on vacation, hence the hotel being a good choice for the area.
4. Some restauranteurs want to develop a restaurant with something for everyone. Why is this idea a dangerous policy?
Restaurants cannot be all things to all people. This leaves the brand undifferentiated or diluted. Because of this cutomers are confused as to the brand’s values and core services. Futhermore, it can prevent customer loyalty as the restaurant does not prioritize certain market segments and develop relationships with them.
5. Think about your classmates in this course. Can you classify them into different segments with specific names? What is your major segmentation variable? Could you effectively market products to these segments?
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6. What role do product attributes and perceptions of attributes play in the positioning of a product? Can an attribute common to several competing brands contribute to a sucessful positioning strategy?
Attributes and perceptions help determine a products’ positioning. What ever a customer finds impotant, a company should take into consideration when choosing its’ positioning. For example, Subway realized that people want fresh food but they also want it fast. Marketing themselves with the slogan “Eat Fresh”, They differentiated themselves by providing fresh food quickly meeting those needs and making themselves more desirable then other fast food brands. If the company is a small business, having attributes similar to large competeing companies could be benneficial in building up their reputation and positioning, however large companies have little to gain from having the same attributes as other competitiors. If a certain aspect is sucessful in another company, a competing company can try to use it, but should still develop its’ own positioning strategy to differentiate themselves.