Marketing Management Chapter 8 – Flashcards
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With ________ as a target market strategy, the firm concentrates on serving many needs of a particular customer group
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Market Specialization
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Which of the following statements about Gen Yers is true?
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They are selective, confident, and impatient
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Which of the following best represents the chief advantage of pursuing a selective specialization multisegment strategy?
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It diversifies the firms risk
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Heavy users of a particular product are often a small percentage of the market but account for a high percentage of total consumption.
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True
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________ is the science of using psychology and demographics to better understand consumers.
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Psychographics
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Mature and reflective people who seek durability, functionality, and value in products are most likely to be categorized as ________ in the VALS system.
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Thinkers
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Marketers usually identify niches by ________.
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Dividing a segment into subsegments
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A marketer is interested in segmenting a business market on ________ if the marketer intends to eventually segment the market based on loyalty and attitudes toward risk.
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Personal characteristics
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A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can show the firm which brands are most competitive with its own.
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Split loyals
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According to the VALS segmentation system, ________ are successful, goal-oriented people who focus on career and family. They favor premium products that demonstrate success to their peers.
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Achievers
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Generation Y members are often turned off by overt branding practices and "hard sell." List and provide examples for the different approaches tried by the marketers to reach and persuade them.
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The different approaches tried by the markets to reach and persuade Generation Y members include: 1) Online buzz-Rock band Foo Fighters created a digital street team that sends targeted e-mail blasts to members who "get the latest news, exclusive audio/video sneak previews, tons of chances to win great Foo Fighters prizes, and become part of the Foo Fighters Family." 2) Student ambassadors-Red Bull enlisted college students as Red Bull Student Brand Managers to distribute samples, research drinking trends, design on-campus marketing initiatives, and write stories for student newspapers. 3) Unconventional sports-Chick-fil-A sponsored the National Amateur Dodgeball Association, "a recreational pursuit for nontraditional sport enthusiasts." 4) Cool events-Hurley, which defined itself as an authentic "Microphone for Youth" brand rooted in surf, skate, art, music, and beach cultures, became the title sponsor of the U.S. Open of Surfing. Other sponsors included Casio, Converse, Corona, Paul Mitchell, and Southwest Airlines. 5) Computer games-Product placement is not restricted to movies or TV: Mountain Dew, Oakley, and Harley-Davidson all made deals to put logos on Tony Hawk's Pro Skater 3 from Activision. 6) Videos-Burton ensures its snowboards and riders are clearly visible in any videos that are shot. 7) Street teams-As part of an antismoking crusade, the American Legacy Foundation hires teens as the "Truth Squad" to hand out T-shirts, bandanas, and dog tags at teen-targeted events.
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Coca Cola's original marketing strategy that offered a single drink Coca Cola Classic in a single sized bottle with the advertising theme "Coke is it," is an example of ________ marketing.
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Undifferentiated
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If an organization's marketing department wished to create "segment storyboards" to test the attractiveness of each segment's positioning strategy, this action would most likely occur in the ________ step of the segmentation process.
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segment "acid test"
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Consumer attitudes are an interesting way to segment a market. What are the five different consumer attitudes about a product that can be found in the market?
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The five attitude groups are: (1) enthusiastic, (2) positive, (3) indifferent, (4) negative, and (5) hostile.
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Purchasing approaches segmentation variables in the business marketplace include technology, user and nonuser status, and general purchasing policies.
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False
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The key to attracting potential users, or even possibly nonusers, is ________.
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understanding the reasons they are not using
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Rock band Foo Fighters created a digital street team that sends targeted e-mail messages to members who receive exclusive news, previews, and opportunities to win prizes. The Foo Fighters are using ________ to reach Generation Y.
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Online buzz
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The norms, language nuances, buying habits, and business practices of multicultural markets need to be factored into the initial formulation of a marketing strategy, rather than added as an afterthought.
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True
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Beltway Boomers are the nation's tech-savvy singles and couples living in fashionable neighborhoods on the urban fringe.
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False
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According to the VALS segmentation framework, consumers primarily motivated by ideals are guided by ________.
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Knowledge
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Baby boomers are also less likely to associate retirement with "the beginning of the end" and see it instead as a new chapter in their lives with new activities, interests, careers, or even relationships.
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True
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Volkswagen concentrates on the small-car market and Porsche on the sports car market. These would be examples of what is called ________.
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Single segment concentration
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Door-to-door workers in a political campaign use attitude to determine how much time to spend with each voter.
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True
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If a marketer is seeking to segment a business market, which of the following variables is generally felt to be the most important?
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Demographic variables
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A segment is attractive when there are actual or potential substitutes for the product.
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False
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________ are products such as the Mercedes Benz C-class and the American Express Blue card, that extend historically high-priced brands down-market while retaining their cachet.
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Old Luxury brand extensions
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A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can help identify the products' strengths.
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Hard-core loyals
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________ combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product service offering of their choice.
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Customerization
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General Motors, a leading American multinational automaker, sells cars for every purpose, purse, and personality. This is an example of ________ marketing.
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Differentiated
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A flexible market offering consists of two parts. Identify and describe these two parts.
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A flexible market offering consists of two parts: a naked solution containing the product and service elements that all segment members value, and discretionary options that some segment members value.
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According to the VALS segmentation system, ________ are considered to be elderly, passive people who are concerned about change and are loyal to their favorite brands.
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Survivors
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Characterize psychographic segmentation.
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In psychographic segmentation, buyers are divided into different groups on the basis of psychological/personality traits, lifestyle, or values.
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Jose and Erika have just divorced. Which of the following demographic segmentation subsegment formats might be used by marketers to reach Jose or Erika?
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Life stage
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Robert is the owner of an automobile manufacturing company. He calls for a board meeting and tells his directors that he wants to build a car that lets the users experience power and exhilaration. He tells them that the car must allow his users to soar from 0-60 mph in about 4 seconds. He also adds in that the price of the car must be affordable enough for anybody making a good salary. In accordance with the given scenario, Robert is trying to segment the market on the basis of ________.
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Benefits
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If a marketer decides to segment a market based on neighborhoods, the marketer will have chosen the ________ method of segmentation.
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Geographic
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Increasingly, companies are finding that their markets are "hourglass shaped." What does this mean for consumers and for marketers?
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Middle-market U.S. consumers are migrating toward both discount and premium products. Companies that miss out on this new market risk being "trapped in the middle" and seeing their market share steadily decline.
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A ________ consists of two parts: a naked solution and discretionary options.
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Flexible market offering
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To be useful, market segments must rate favorably on five key criteria. What are those criteria?
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To be useful, market segments must be: (1) measurable, (2) substantial, (3) accessible, (4) differentiable, and (5) actionable.
