PM Chapter 8 – Flashcards

Market

Market Segment

Market Segmentation

Segmentation bases (variables)

Geographic segmentation

Demographic segmentation

Family life cycle

Psychographic segmentation

Geodemographic segmentation

Benefit segmentation

Usage-rate segmentation

80/20 principle

Satisficers

Optimizers

Target market

Undifferentiated targeting strategy

Concentrated targeting strategy

Niche

Multisegment targeting strategy

Cannibalization

Positioning

Product differentiation

Perceptual mapping

Repositioning

The purpose of market segmentation is to: a. group a large number of markets together, enabling a company to serve them simultaneously b. reduce the market down to a size the firm can handle c. develop a generalized definition of the market as a whole d. divide the market into equal size and profit regions for sales territories e. enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups

True or False: Clorox describes individuals who buy lots of cleaning products as heavy users. This is an example of how companies use benefit segmentation.

True or False: Geodemographic segmentation combines geographic, demographic, and lifestyle segmentations.

Consumers in Louisiana love hot sauce, and Tabasco and Crystal brands are particularly popular there. Consumers in Michigan do not like hot food, so they purchase very little hot sauce. A national chain of grocery stores would likely use _____ segmentation when stocking condiment merchandise. a. benefit b. geographic c. demographic d. geodemographic e. economic

Kraft Foods plans to tailor different ads for different neighborhoods in the same region. For example, viewers watching a cable show in a Hispanic neighborhood in Chicago would see different ads during the same commercial breaks as non-Hispanics living in a different neighborhood. Kraft's strategy best exemplifies _____ segmentation. a. sociocultural b. cluster benefit c. lifestyle d. geodemographic e. systematic geographic

A _____ is a group of people or organizations that has wants and needs that can be satisfied by particular product categories, has the ability to purchase these products, and is willing to exchange resources for the products. a. target b. firm c. buyer d. market e. consumer

A manufacturer of lenses used in microscopes, binoculars, and telescopes has segmented its market into scientific equipment manufacturers, sporting equipment manufacturers, and retailers who sell replacement lenses. In order for this segmentation scheme to be successful, all of the following criteria must be met. a. complexity b. substantiality c. identifiability and measurability d. responsiveness e. accessibility

Miller Lite's long-running "Great Taste...Less Filling!" advertising campaign was ranked by Advertising Age magazine as the 8th-best advertising campaign in history. Miller Lite was using _____ segmentation in this ad campaign. a. benefit b. geographic c. psychographics d. demographics e. usage rate

Which of the following statements best describes the reason marketers find geodemographic segmentation so effective? a. "A rifle is more exact than a shotgun." b. "A bird in the hand is worth two in the bush." c. "Don't put all of your eggs in one basket." d. "Every action has an opposite and equal reaction." e. "Birds of a feather flock together."

A group of middle school students stop by a bicycle store. The store has just received a new shipment of high-end racing bicycles. The bicycles range in price from $1,200 to $3,000. All of the students want one of these new bikes, but none has the means to buy one. Is this group of consumers a potential market for the expensive bikes? a. No, they do not have the ability to purchase at this time. b. Yes, they are a market because this product could satisfy their consumer wants and desires. c. Yes, they are a market because this group shares relatively similar product needs and purchasing characteristics. d. Yes, they are a potential market since they are all about the same age. e. No, to qualify as a market, they must need the product.

True or False: The first step in segmenting a market is to choose a basis or bases for segmenting the markets.

Redbook magazine targets what it calls "Redbook jugglers," defined as 25- to 44-year-old women who must juggle family, husband, and job. According to a Redbook ad, "She's the product of the 'me generation,' the thirty-something woman who balances home, family, and career—more than any generation before her, she refuses to put her pleasures aside. She's old enough to know what she wants, and young enough to get it." This is an example of _____ segmentation. a. benefit desired and usage rate b. benefit desired and demographic c. demographic and usage rate d. demographic and psychographic e. geodemographic and benefit desired

True or False: A segmentation plan must produce segments that are accessible—that is, the firm must be able to reach members of targeted segments with customized marketing mixes.

Ford Motor Company produces passenger cars, commercial trucks and specialty vehicles, performance vehicles, and race cars. Ford uses a procedure called _____ to divide its large market. a. market segmentation b. micromarketing c. perceptual mapping d. positioning e. cannibalization

True or False: A market segmentation study done by the University of Thessaly in Greece classified recreational skiers in terms of their gender, age, and income levels. The study used psychographic segmentation variables.