MKG 300 Chapter 4 – Flashcards
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A ____ market is a market with broadly similar needs and sellers offering various and often diverse ways of satisfying those needs
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generic
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A generic market
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looks at markets broadly and from a customer's viewpoint
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A transistor radio, an MP3 player and a portable CD player might complete in the same
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generic market
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A pencil, a dictating machine and a word processor might compete in the same
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generic market
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Which of the following is LEAST LIKELY to compete in the same generic market with the others?
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pretzel
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A "product-market" is a market in which:
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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)
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Which of the following is NOT true of a product-market?
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Not part of a product-market definition: information about which specific retailers will sell the product
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A firm's "relevant market for finding opportunities" should
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be bigger than the firm's present product market - but not so big that the firm couldn't expand and be an important competitor
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The customer type component of the product-market should include:
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Choose a name that describes all present (possible) types of customers?
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Customer type
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Refers to the final consumer of user of a product type
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The disaggregating step in market segmentation involves ______.
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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
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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.
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Disaggregating step
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Market segmentation
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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
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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?
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Segment the product-market to try to identify homogeneous submarkets and select an attractive target market.
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Marketing managers want market segments to have each of the following characteristics EXCEPT:
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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
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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.
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Multiple target market approach
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The combined target-market approach:
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Combining two or more submarkets into one larger target market as a basis for one strategy
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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.
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Combined target market approach
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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 ______.
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Too much aggregating
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Segmenters, in contrast to combiners:
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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
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Segmenting dimensions
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1. Qualifying dimensions- those relevant to including a customer type and a product market // 2.
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Strategy decisions pertaining to product features, packaging, product line assortment, and branding will be most affected by which target market dimension?
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Behavioral needs and attitudes of consumers
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BEHAVIORAL (rather than DEMOGRAPHIC) segmenting dimensions include:
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Behavioral: needs, benefits sought, thoughts, rate of use, purchase relationship, brand familiarity, king of shopping, type of problem solving, information required
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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.
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Geographic???
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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?
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Demographic???
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Deciding whether a group of customers should be included in a target market is the purpose of _____ dimensions.
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Qualifying???
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Compared to qualifying dimensions, determining dimensions:
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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
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Which of the following is MOST LIKELY to be a DETERMINING dimension with respect to purchase of a particular brand of coffee?
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Taste
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Segmenting international markets (as contrasted with domestic markets):
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First, marketers segment by country or region - looking at demographic, cultural, and other characteristics, including of economic development
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When moving to international markets, some firms insist that local operations and decisions should be handled by natives because: ______.
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They have a feel for their markets
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Clustering techniques applied to segmenting markets ______.
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Clustering techniques: try to find similar patterns within sets of data
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The clustering techniques that can be used in segmenting:
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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
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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.
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Customer relationship management
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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):
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CRM database
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Customer relationship management (CRM) helps consumer marketers ______.
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(Definition: where the seller fine-tunes the marketing effort with information from a detailed customer database;) Treat customers individually as segments of one
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"Positioning" is a marketing management aid that refers to:
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How customers think about proposed or present brands in a market
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"Positioning" might cause a marketing manager to:
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Not have a hard time differentiating???
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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?
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Positioning statement
