MRKT 303 Chapter 8

In the context of product positioning, the distinctions between products can be either real or perceived.
True
A market is people or organizations with needs or wants and with the ability and the willingness to buy.
True
A concentrated strategy presents more risk for a firm than a multi-segmentation strategy does if there are unfavorable changes in the environment.
True
A market segment is a subgroup of people or organizations having different characteristics that cause them to have distinct product needs.
False
Market segmentation helps decision makers to more accurately define the target market, and therefore better allocate resources to the variables in their marketing mix.
True
According to family life cycle segmentation, consumption patterns among people of the same age and gender differ because they are in different stages of the family life cycle.
True
In the context of age segmentation, baby boomers expect everything to be instantaneous because they have never been introduced to a world without the Internet.
False
Tennot Inc. sells used cars. It focuses solely on low-income customers who prefer to buy an old car rather than a new one. Therefore, it develops one marketing mix that targets the low-income group. In this scenario, Tennot Inc. most likely uses a(n)_____.
concentrated targeting strategy
Which of the following statements is true of markets?
They are composed of people or organizations.
_____ is a common base of demographic segmentation.
Income
The editorial board of Gamers’ Page, a magazine that primarily caters to people who are enthusiastic about sports and gaming, targets people who enjoy games. In this scenario, Gamers’ Page uses _____.
psychographic segmentation
Mass-marketing efforts will continue to be used by marketers:
to remind consumers of a product.
Which of the following is a psychographic segmentation variable?
Achievers who are motivated to show their successful lifestyle
A concentrated targeting strategy differs from an undifferentiated targeting strategy in that a concentrated targeting strategy:
involves the selection of a market niche to target the marketing efforts of a firm.
Bed Bath and Beyond’s describes their market as largely female, which reflects the retailer’s marketing mix. Which segmentation base has Bed Bath and Beyond used to segment the market for household goods?
demographics
Which of the following statements is true of market segmentation?
It helps marketers design marketing mixes that match the characteristics of the target market.
_____ is a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds.
Perceptual mapping
Which of the following is an advantage of a multisegment targeting strategy?
It provides opportunities for larger markets/more customers, which in turn can allow economies of scale in manufacturing and marketing.
Sephora, a cosmetics brand that primarily caters to women, wants to reach out to the less-traditional male market. The company has launched new products especially for men. In this context, Sephora uses _____.
gender segmentation
In the context of family life cycle segmentation, which of the following statements is true?
Middle-aged married couples with or without children have high average purchase of durable goods.
Which of the following statements is true of a concentrated targeting strategy?
It allows smaller firms to compete effectively with much larger firms.
_____ is market segmentation on the basis of attitudes, motives, lifestyles, and geodemographics.
Psychographic segmentation
A firm using a(n) _____ essentially adopts a mass-market philosophy, viewing the market as one big market with no individual segments.
undifferentiated targeting strategy
A firm that adopts an undifferentiated targeting strategy assumes that:
small firms can compete effectively with large firms.
_____ refers to segmenting markets by region of a country or the world, market size, market density, or climate.
Geographic segmentation
_____ helps marketers develop marketing programs tailored to prospective buyers who live in small regions or who have very specific lifestyle.
Geodemographic segmentation
The purpose of market segmentation is to:
enable a marketer to tailor marketing mixes to meet the needs of one or more specific segments.
_____ involves dividing a market into groups such as newborns, infants, young children, tweens, Millennials, Generation X, baby boomers, and seniors.
Age segmentation
In the context of the strategies for selecting target markets, which of the following is a disadvantage of an undifferentiated targeting strategy?
It often results in sterile, unimaginative product offerings that have little appeal to anyone.
Which of the following statements is true of product positioning?
Consumer goods marketers are particularly concerned with positioning .
Laelle is a confectionery company that manufactures candies. It does not use specific strategies to target children while marketing its products. Instead, it uses the same strategies to promote its candies among all consumers in the market. In this scenario, Laelle uses a(n) _____.
undifferentiated targeting strategy
Explain product differentiation as a positioning strategy used by marketers to distinguish their products from competitors.
Answers will vary. A positioning strategy that many firms use to distinguish their products from competitors is based on product differentiation. The distinctions between products can be either real or perceived. For example, Kentucky Fried Chicken differentiates itself from other fast-food fried chicken restaurants with its secret blend of eleven herbs and spices (perceived), as well as unique offerings like the Double Down, Famous Bowl, and Bucket & Bites Meal (real). However, many everyday products, such as bleaches, aspirin, unleaded regular gasoline, and some soaps, are differentiated by such trivial means as brand names, packaging, color, smell, or “secret” additives. The marketer attempts to convince consumers that a particular brand is distinctive and that they should demand it.
What is geographic segmentation? Briefly explain why consumer goods companies take a geographic approach to marketing.
Answers will vary. Geographic segmentation refers to segmenting markets by region of a country or the world, market size, market density, or climate. Market density means the number of people within a unit of land, such as a census tract. Climate is commonly used for geographic segmentation because of its dramatic impact on residents’ needs and purchasing behavior.Consumer goods companies take a regional approach to marketing because firms continually need to find ways to grow. Target’s growth strategy includes opening smaller stores in urban locations such as San Francisco, Chicago, and Washington, DC. These stores are designed to provide quick-trip shopping, customized product assortments, and services tailored to customers living in large cities.
Discuss the importance of market segmentation.
Answers will vary. Market segmentation is the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups. It plays a key role in the marketing strategy of almost all successful organizations and is a powerful marketing tool for several reasons. Most important, nearly all markets include groups of people or organizations with different product needs and preferences. Market segmentation helps marketers define customer needs and wants more precisely. Because market segments differ in size and potential, segmentation helps decision makers to more accurately define marketing objectives and better allocate resources. In turn, performance can be better evaluated when objectives are more precise.