One advantage of a market-product grid is that it can be used to. The periodic 93% (54) Criteria for forming segments involve both similarities and differences. link market needs of customers to the organizations marketing program. Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as. Last Human Getaway Hedgehog CC BY-NC-ND 2.0. Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to offer, 59. Table 5.3 Major U.S. According to Toney Hsieh, CEO of Zappos, the greatest amount of time is spent. the extra cost of developing and producing additional versions of the product, After establishing the market segments and product groupings on a market-product grid, the next step is to. 59. But when she later tried to tear them off of the dogs paws, he bit her. 7. A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as a __________. Figure 9-9 above shows the market-product grid for a Wendys restaurant next to a large urban university campus. seek a less-competitive, smaller market niche in which to locate a brand. This is an example of, Segmentation that is based on some objective physical (gender, ethnicity), measurable (age, income), or other classification attribute (occupation) of prospective customers is referred to as. For example, you can know what types of demographic segments you have in your customer base, such as girls from ages 13 to 18. John earns $50,000 per year. For example, millennials may spend most of their time on Instagram and Facebook, while seniors prefer their email inboxes. When a new product or a new retail chain steals customers and sales from older existing ones of an organization, this is referred to as. The advertising message was that using applesauce in baking cuts calories and makes the resulting baked good healthier. \hline \boldsymbol{X} & \text { Frequency } \\ 45. FOR COMPETITIVE ADVANTAGE MULTIPLE CHOICE QUESTIONS 1. The Premier Road is made with extra cushioning for pavement runners. Kellogg's has several cereals targeted at different types of users. You can get your paper edited to read like this. The increased customer value achieved through performing organizational functions like marketing or manufacturing more efficiently is referred to as . They purposely targeted them on Facebook for the most engagement and click-throughs. Click on the following link to see a fun one created by Burger King to advertise its Tender Crisp Chicken. C. meeting customer needs but at the expense of higher prices, D. lower prices but with higher production costs. Which of the following is a criterion used in forming market segments? Which of the following is a disadvantage of employing a multiple products, multiple market segments strategy if NOT implemented well? Let us have a look at your work and suggest how to improve it! However, a recent survey found that the latest recession had forced teens to change their spending habits and college plans and that roughly half of older Generation Yers reported they had no savings1. Now, however, firms are finding they can target their B2B customers more cost-effectively via e-mail campaigns, search-engine marketing, and fan pages on social networking sites like Facebook. Behavioral segmentation divides people and organization into groups according to how they behave with or act toward products. The annual Sporting News Baseball Yearbook had exactly the same stories but with 17 different covers to appeal to baseball fans in 17 different regions of the U.S. What is the basis of its market segmentation strategy? Determine the inventory cost using (a) the first-in, first-out (FIFO) 216.Positioning that involves competing directly with competitors on similar product attributes in the same target market is referred to as . mass customization. Today, a firm is more likely to use: a. a "bazooka" approach, where special effects are used to "explode" into the buyer's Which of the following is the process of getting oxygen from the environment to the tissues of the body? The William Morris Agency represents country singer Trace Adkins in negotiations with various venues in which he could perform. In the United States, the Harry Potter series of books were often at the top of The New York Times fiction bestseller list. seek a less-competitive, smaller market niche in which to locate a brand. Upscale/Fine Dining Restaurants. 1) All of the following are restaurant market segments EXCEPT? Unlike consumers, they arent concerned about their social standing or influenced by their families and peers. Four general categories used to segment consumer markets are geographic segmentation, demographic segmentation, __________, and behavioral segmentation. If youre going to appeal to my daughter, youre going to have to be in the digital world, explained one GM vice president (Cox, 2009). inventory system is used. Michigans biggest travel segment are Chicagoans in certain zip codes consisting of upper-middle-class households with childrenor the kids in cul-de-sacs group, as Claritas puts it. The first step in segmenting and targeting markets that links customer needs to marketing actions is to group potential buyers into segments. All of the following are geographic segmentation variables EXCEPT: Which of the following data are collected from consumers to develop a perceptual map for a particular product? What is an example of a multiple products and multiple segments strategy? a more adult-oriented beverage than sports drinks. e.type of buying situation. A marketing manager must be able to put a market segmentation plan into effect. the place a product offering occupies in consumers minds on important attributes. what is the first step in the market segmentation process? Organizational synergy is the increased customer value achieved through. A (n) _____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have similar product needs. Pepsi Throwback and Mountain Dew Throwback, which are made with cane sugarlike they were back in the good old daysinstead of corn syrup, are examples (Schlacter, 2009). Table 5.4 An Example of Geodemographic Segmentation for 76137 (Fort Worth, TX) shows the profiles of buyers who can be found the zip code 76137the Brite Lites, Lil City bunch, and Home Sweet Home set. If increased revenues don't offset extra costs of this action, a marketer should __________. a need to devise a marketing program to win customers from McDonalds and Burger King. Consumer insight is what results when you use both types of information. new menu items or promotional strategies may succeed in converting the prospects into users. Likewise, B2B sellers often divide their customers by geographic areas and tailor their products to them accordingly. grouping people according to similar needs. ppp is in dollars and qqq is the number of units. Companies reduce the risk of running campaigns to uninterested consumers, which quickly increases ROI. Geographic segmentation divides the market into areas based on location and explains why the checkout clerks at stores sometimes ask for your zip code. You might see a snowboard shop in the same area but probably not a surfboard shop. To find out which category youre in, take a VALS survey at http://www.sric-bi.com/vals/surveynew.shtml. \hline 1 & 2 \\ Mercedes Benzs cheaper line of C class vehicles is designed to appeal to these consumers. My hedgie can run all he wants, and I dont have to think about the cleanup. Marketing synergies and efficiencies run __________ because a single kind of marketing action can reach customers that buy different product groupings. All the buyers in the entire market have similar wants and needs. 216.Mott's used an advertising campaign to change the way consumers thought about its applesauce from a dinnertime side dish to a replacement for cooking oil in baking. Be careful not to assume gender stereotypes, such as considering pink a feminine color and blue a masculine color. By dividing its tennis racquet market into three categories, which it labels Performance, Recreational, and Junior tennis players, Prince Sports is using a marketing strategy called, Custom Foot runs six retail locations. Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens. Work with our consultant to learn what to alter. The segmenting techniques weve discussed so far in this section require gathering quantitative information and data. A recent study by the Aberdeen Group analyzed which segmentation bases were used by the top 20 percent of 220 organizations surveyed. The personnel in Glads marketing department subsequently launched a Web site called 1000uses.com that contains both the companys and consumers use tips. For now, you can get a rough idea of what the categories consist of by looking at them in terms of how marketing professionals might answer the following questions: Table 5.1 Common Ways of Segmenting Buyers. The units of an item available for sale during the year were as follows: There are 57 units of the item in the physical inventory at December 31. Tornoe, J. G., Hispanic Marketing Basics: Segmentation of the Hispanic Market, January 18, 2008, http://learn.latpro.com/segmentation-of-the-hispanic-market/ (accessed December 2, 2009). Many iconic commercials and catchphrases have existed over the years, but in the 1980s one rose above them all. Four general categories used to segment consumer markets are geographic segmentation, demographic segmentation, __________, and behavioral segmentation. Take toothpaste, for example. not be worth doing since its market size is very small. \hline 7 & 1 \\ Nee, E., Due Diligence: The Customer Is Always Right, CIO Insight, May 23, 2003. At one time, firms scattered their marketing efforts (a "shotgun" approach) to reach consumers. The purpose of the five key steps in segmenting and targeting markets is to. This is an example of multiple products aimed at multiple markets. Organizational synergy is the increased customer value achieved through. This Facebook ad presumably targets individuals who have families with small children: Note: It also targets by geographical location, as seen in the description. $$$$. Click on the profiles on the Claritas site to see which one most resembles you. Positioning that involves competing directly with competitors on similar product attributes in the same target market is referred to as __________. 3/15 Webinar: How to Optimize Landing Pages for Your Marketing Mix. Avon Skin So Soft was originally a beauty product, but after Avon discovered that some people were using it as a mosquito repellant, the company began marketing it for that purpose. Want to create or adapt books like this? 4 (1990): 1827. Segmentation bases are criteria used to classify buyers. Within a segment, the needs of potential buyers should be similar; among segments, the needs of buyers should be different. B. discover how target customers rate competing products or brands with respect to these attributes. The market segments should be consistent with the firm's marketing capabilities. Food service is also a significant employer. 3Bluetooth Proximity Marketing, April 24, 2007, http://bluetomorrow.com/bluetooth-articles/marketing-technologies/bluetooth-proximity-marketing.html (accessed December 2, 2009). Click the card to flip . Market segmentation stresses __________ and relating them to specific marketing actions. creates greater savings in production costs. Market segmentation stresses __________ and relating them to specific marketing actions. Baby boomers are aging and the size of the group will eventually decline. Which of the following is a consumer demographic segmentation variable? Psychographic segmentation seeks to differentiate buyers based on their activities, interests, opinions, attitudes, values, and lifestyles. the usage index per person is highest for that segment. By understanding similar traits, needs and behaviours, marketing can better connect with potential customers. To be identified as a market segment, members of the group must. Motts used a __________ strategy. Ethnic Segments and Their Spending. Marketing professionals believe they appealed to baby boomers because they reminded them of better timestimes when they didnt have to worry about being laid off, about losing their homes, or about their retirement funds and pensions drying up. S. Maranto's Italian Bar & Market. Tweens might appear to be a very attractive market when you consider they will be buying products for years to come. The process of segmenting a market and selecting specific segments as targets is the link between _____ and the organizations marketing program. According to the Apple market-product grid above, Apple would most likely get the LEAST market synergies from. To do this, companies take four steps: (1) __________; (2) discover how target customers rate competing products or brands with respect to these attributes; (3) discover where the companys product or brand is on these attributes in the minds of potential customers; and (4) reposition the companys product or brand in the minds of potential customers. Parents are now paying for their tweens to get facials, pedicures, and other pampering in numbers no one in years past could have imagined. Perhaps they do so because some studies show that the market segment with greatest financial potential is married couples without children (Hill, et. what is step 2 in the market segmentation process, what is step 3 in the market segmentation process, The extra cost of developing and producing additional versions of the product, Creates greater savings in production costs, developing separate promotional campaigns, lower retail prices because of lower production costs. For example, although the common ancestral language among the Hispanic segment is Spanish, Hispanics trace their lineages to different countries. Contrast this with a recent meal deal ad served in the United States, where religious preferences differ and beef is commonly eaten. All the buyers in the entire market have similar wants and needs. Many companies use this data to sell different tiers of the same product, based on income level. Some consumers might be interested in the fiber, some consumers (especially children) may be interested in the prize that comes in the box, other consumers may be interested in the added vitamins, and still other consumers may be interested in the type of grains. Definition. developing separate promotional campaigns for each market, Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as. All of the following are market segmentation strategies EXCEPT: B. multiple products, multiple market segments. Think of it as being similar to the way in which your professor builds up information on a PowerPoint slide to the point at which you are able to understand the material being presented. Dividing the market into smaller segments, each with a common variable, allows companies to use their time and resources more efficiently. College dorm residents frequently want to keep and prepare their own food and snacks to save money or have a late night snack. b. user status. He also spends $25,000 per year on necessities, and $15,000 per year on luxuries. Almost all marketing campaigns target age-specific audiences. 7 (2007): 40618. A graph displaying consumers' perceptions of product attributes in two dimensions is referred to as a. two product attributes, ranging from high to low on that attribute. In some areas, you can switch your mobile phone to a discoverable mode while youre shopping and, if you want, get ads and deals from stores as you pass by them, which is often less expensive than hiring people to hand you a flier as you walk by3. A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products is referred to as __________. Universal Concerts wants to bring a series of country music concerts to Canada next year. Which of the following is a criterion used in forming market segments? Now were both GLAD!. If you capture enough of them, you can earn a profit (von Hoffman, 2006). (Sudbury, MA: Jones & Bartlett Publishers, 2006), 13. Recently, U.S. dairies, struggling to increase milk sales, tried to change the way adults thought about chocolate milk. Am I looking at life from their point of view? The average household spends nearly 50% of its food dollars in restaurants. The ultimate criterion for an organizations marketing success is that __________ as a result of increased synergies. Many markets are segmented based on peoples family life cycle needs. Advergames are electronic games sellers create to promote a product or service. a single customer segment will likely require a variety of products. Geocoding can help businesses see where prospective customers might be clustered and target them with various ad campaigns, including direct mail. If marketing professionals know what those benefits are, they can then tailor different toothpaste offerings to you (and other people like you). The segmentation strategy used by Prince Sports today is. C The identification of psychographic variables is more objective than the identification of demographic, 216.The place a product occupies in consumers' minds on important attributes relative to competitive products is referred to as, Changing the place an offering occupies in consumers' minds relative to competitive products is referred to as. Many of the same factors can also be used to segment customers. Retro brandsold brands or products that companies bring back for a period of timewere aimed at baby boomers during the recent economic downturn. Subsegmenting the markets could potentially help you. You cannot effectively communicate with an audience when you know nothing about them. 8.The purpose of market segmentation is to: a. reduce the market down to a size the firm can handle b. divide the market into equal size and profit regions for sales territories c. group a large number of markets together, enabling a company to serve them simultaneously d. develop a generalized definition of the market as a whole e. Stephanie Mialki is a digital marketing professional with expertise in ecommerce trends, landing pages, journalism, and mass communication. One marketing action that can be taken to sell a single product or service to multiple market segments is to. Later in the chapter, well look at the ways in which B2B markets can be segmented. Virgin Mobile is helping stores capitalize on proximity marketing by sending text messages to Virgin Mobile users when they opt to receive them. To see how geodemographics works, visit the following page on Claritas Web site: http://www.claritas.com/MyBestSegments/Default.jsp?ID=20. Which of the following is NOT a reason to segment a market? The territory for this opportunity is Scottsdale, AZ. The larger TVs can be outfitted with surround sound at a higher price than the smaller ones. A market-product grid is a framework to relate. By contrast, a surfboard shop is likely to be located along the coast, but you probably would not find a snowboard shop on the beach. Ghelani is a senior sales engineer for Air2Web, a company that helps businesses promote their brands and conduct transactions with people via their mobile phones. MicroFridge is using which basis of segmentation? A rehabilitation center wants to target women in their 20s who have received some permanent disability as the result of a skiing accident. Criteria for forming segments involve both similarities and differences. This restaurant market segment is all about location, location, location. In fact, email marketers have witnessed a 760% increase in revenue by segmenting their email campaigns. Australia-based Renewable Energy Ltd. sells a $10 million device that converts manure into energy. Despite the challenges U.S. automakers face today, they have taken great pains to cater to the younger generationtodays baby boomers who dont think of themselves as being old. If you are a car buff, you perhaps have noticed that the once-stodgy Cadillac now has a sportier look and stiffer suspension. Buyers throughout the entire market have very similar wants and needs. group products to be sold into categories. Dividing the market into smaller segments, each with a common variable, allows companies to use their time and resources more efficiently. Proximity marketing is an interesting new technology firms are using to segment and target buyers geographically within a few hundred feet of their businesses using wireless technology. Suppose this map describes accurately how adults see the drinks shown. Would you like to play one now? A. Dell adds high-end speaker systems to its line. In terms of the criteria used for selecting a target segment, this market would. tailoring goods or services to the tastes of . Overview Advisory \hline 4 & 12 \\ These groups have many individual cultures that come with conflicting interests, preferences, attitudes, and beliefs. Think about some of your friends who seem a lot like you. Let X=X=X= be the number of pairs of sneakers owned. Which of the following statements about market segmentation for organizational markets is most accurate? An analysis of the pillow market using a market-product grid suggests that the most important segment to target is, When a new product or a new chain steals customers and sales from older existing ones, it is referred to as, Figure 9-9 above shows the market-product grid for a Wendys restaurant next to a large urban university campus. Quickly and professionally. Read my post about how well appointed it is, how amazing the food is and why you must try the focaccia bread. In the Apple market-product grid shown above for its computer line, the "individuals" consumer segment seems willing to purchase each item in Apples product line. There are five steps involved in segmenting and targeting markets. All of the following are criterion used for selecting target market segments EXCEPT: simplicity and cost of assigning potential buyers to segments. c. secures better insight into strengths and weaknesses of the firm's internal resources. One of the most well-known psychographic surveys is VALS (which originally stood for Values, Attitudes, and Lifestyles) and was developed by a company called SRI International in the late 1980s. The people grouped into segments share characteristics and respond similarly to the messages you send.
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