Chapter 9 Quiz - Quiz PDF

Preview

Summary

Quiz...

Description

Chapter 9 Quiz

College students can be a less __________ market segment because students' media habits are quite diverse. substantial perceptive identifiable quantifiable reachable Although there are many potential ways to reach college students, their media habits diverge so much that it can be difficult to reach them without using a wide variety of media. Almost all U.S. political candidates use some combination of red, white, and blue in their campaign posters. They are trying to position themselves in voters' minds using the competition. salient attributes. perceptual maps. symbols. the value proposition. Red, white, and blue colors serve as symbols in this context because they call to mind the U.S. flag. A __________ is often used to illustrate the position of a firm's products or brands in consumers' minds. mass marketing analysis loyalty timeline PRIZM analysis psychographic profile perceptual map Perceptual maps show the position of a firm's products and those of competitors in the minds of consumers. Ronaldo wants to develop an Internet auction-based business and is working through the STP process. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Ronaldo now has to create a perceptual map.

divide geographic segments into lifestyle groups. differentiate his product line. select a target market. consider future customer loyalty. After setting objectives, forming segments, and evaluating segment attractiveness, the next step of the STP process is to select one or more target markets. Firms use a differentiated targeting strategy because banks are more willing to extend credit to companies with this strategic approach. it is better than focusing on individual or small groups of potential customers. most market segments are too small to be profitable. it helps to obtain a bigger share of the market. it is easier than mass marketing. A differentiated targeting strategy builds a different marketing mix for each of several market segments. This allows the firm to target a larger portion of the market and gain a greater market share. When Mr. How, a Pennsylvania-based discount lumber and hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in psychographic segmentation. misguided geographic segmentation. benefit segmentation. concentrated segmentation. geodemographic segmentation. This is an example of geographic segmentation—segmentation by geographic region—but is misguided because snow blowers are not needed in Georgia in April. Marketers have found that __________ segmentation is often more useful for predicting consumer behavior than __________ segmentation. demographic; psychographic geographic; geodemographic demographic; behavioral demographic; benefit psychographic; demographic

Psychographics, with its focus on values and lifestyles, is often more useful for predicting behavior than are demographics, which generalize across groups with similar ages, incomes, education levels, ethnicity, and/or gender. On the other hand, demographic information is usually much more readily available at lower expense. When Ron complained to his bank about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests. The branch management included Ron in its __________ segmentation. geographic psychographic geodemographic benefit loyalty Ron has been identified as a loyal customer, to be handled via the marketing mix the bank has designed via loyalty segmentation. _________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach. Psychographic Geographic Demographic Behavioral Benefits Demographic segmentation tends to be easy to define because demographic factors are widely collected and so tend to be readily available. Airlines were among the first retailers to embrace loyalty segmentation when they created frequent flyer programs. 30-day advance pricing. business-class seating. in-flight movies. fuel surcharges. Airline frequent flyer programs offer an example of a marketing mix based on loyalty segmentation, since only those who fly on the airline frequently are eligible.

Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation is a more expensive method for identifying potential customers. is rarely used and unproven. is available only in limited geographic areas. is still an unproven area. offers only one-to-one marketing potential. Psychographic segmentation is by no means unproven, and can be used for many applications unrelated to one-to-one marketing. Psychographic segmentation, though, is generally more expensive than demographic segmentation because demographic information is so much more readily available. Jim wants to position his firm against his competitors. In doing so he should avoid discussing the weaknesses of his competitors so they won't retaliate. avoid looking too much like the competitor so that he'd confuse the target segment. avoid discussing the strengths of his product so that competitors won't be aware of his product quality. avoid making the competitor's product look undesirable. never select a competitor in the same neighborhood. One danger in positioning against competitors is that the firm may end up confusing customers unless a clear distinction is made between the firm's products and those of competitors. To develop psychographic segments, the marketer must understand consumers' buying patterns and behaviors. age, income, and education. self-values, self-concept, and lifestyles. gender, race, and religion. disposable personal income, benefit perceptions, and alternative egos. Psychographics is related to the way we describe ourselves—our self-concept, values, and lifestyle. In the Circles for a Successful Value Proposition framework, the value proposition is represented by the intersection between the firm's benefits and competitors' benefits. the intersection between customer needs/wants and the firm's product's benefits.

the intersection between customer needs/wants and competitors' benefits. the intersection between all three of the circles. the part of the firm's benefits that doesn't overlap with anything. The value proposition is the intersection between customer needs/wants and the benefits offered by the firm. This is the area in which customer needs/wants match the benefits the firm can offer. Talbots, an upscale women's clothing store, targets college-educated women between 35 and 55 years old with average household income of $75,000 or more. This is a form of __________ segmentation. geodemographic geographic benefit psychographic demographic This is a demographic segment because it is defined according to demographic variables: gender, age, and income. When Starbucks first opened, many critics suggested, "No one will pay $4.00 for a cup of coffee." Starbucks' critics suggested consumers would not be __________ to the company's offerings. reachable quantifiable perceptive responsive identifiable A segment is responsive if its members react similarly and positively to the marketing mix. Early critics did not believe that consumers would respond positively to the offer of a $4 cup of coffee. Demographic segmentation is segmentation based on all of the following EXCEPT education. age. income. gender. lifestyle.

Age, gender, education, and income are all demographic variables. Lifestyle is a psychographic variable. Which of the following would NOT be used in calculating the profitability of a segment? fixed costs segment size segment perceptions segment adoption percentage profit margin percentage A calculation of segment profitability uses segment size, estimated segment adoption percentage, purchase behavior (frequency and price), profit margin percentage, and fixed costs. "Why create a perceptual map?" asked David. Andreas, the senior marketing manager, gave him four reasons. Which of the following is NOT a valid reason? "It shows where we aren't—and where our competitors aren't—in our customers' and prospects' minds." "We can easily show where we are positioned and how large the market is." "It's a way to show the position of the company throughout the product's life cycle." "It's a way to demonstrate the dimensions that our customers think are important." "It's a quick way for senior managers to see not only our product but each of our competitors, all at once." A perceptual map shows the current position of a company's products, not a future position. Paul is considering psychographics as a way to segment the market for his small travel agency. This approach to segmentation offers him an advantage because psychographics is the preferred method for service businesses. it is based on underlying reasons people make choices. the travel business doesn't respond well to other approaches to segmentation. it is easier to use than demographics. psychographic segmentation is the least expensive method. Psychographics is related to the way we describe ourselves—our self-concept, values, and lifestyle. These characteristics are closely related to our behavior and to the reasons for the choices we make. Psychographics is the segmentation method that delves into how consumers describe themselves.

adjust to demographic changes. believe other people see them. allocate scarce incomes to a variety of goods and services. value their livelihoods. Psychographics is related to the way we describe ourselves—our self-concept, values, and lifestyle. While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do NOT help marketers determine which customers have young children. where their customers live. how old their customers are. what income brackets their customers are in. what their customers need. Demographic and geographic segmentation of retail customers is fairly easy to do with readily available data; however, translating segment membership to actual needs is more complex. Firms often follow up initial demographic and/or geographic segmentation with segmentation based on lifestyles or benefits, which are more closely connected with customer needs. Adidas Group owns Reebok, Rockport, and TaylorMade brands. Having a variety of brands allows Adidas to use geographic segmentation. obtain a bigger share of the shoe market. use mass marketing techniques. generate economies of scale in advertising expenditures. engage in micromarketing for hard-to-fit shoe customers. Adidas can adopt a differentiated targeting strategy, in which it builds a different marketing mix around each of its brands to serve a different target market. By doing so, Adidas can target a larger portion of the shoe market and gain a greater market share. After assessing the market growth potential for his company's baby products in Mexico, Harmon wanted to evaluate market competitiveness. To do this, Harmon would consider ease of pricing control and number of promotional outlets. the current size of the market and the expected growth rate. mass marketing distribution potential and logistical support.

profitability and customer buying behavior. the number of competitors, entry barriers, and product substitutes. Evaluation of profitability considers market growth, market competitiveness, and market access, along with ensuring that the profit margin will be sufficient to cover costs. Market competitiveness includes the number of competitors, entry barriers, and product substitutes. Caroline is assessing market growth, market competitiveness, and market access for each segment she has identified. Caroline is assessing the __________ of each potential market segment. profitability responsiveness identification reach substance Evaluation of profitability considers market growth, market competitiveness, and market access, along with ensuring that the profit margin will be sufficient to cover costs....