Exam 9: Market Segmentation, Targeting, and Positioning

While looking for a new computer you conclude that you value highly: cost, battery life, and weight. These different attributes form a(n):

Model E is a new type of car manufacturer that relies on the Internet to build new car designs from prototypes to marketable vehicles much faster than ever before. "Think of Model E as the Dell of the auto industry, designing products based on what consumers truly want and leveraging best-in-class components and micro-factory approaches for rapid design, launch, and direct delivery," said William Santana Li, President and CEO of Model E. From this quote, you should recognize that Model E relies on:

PepsiCo is assessing whether to launch a brand new type of antioxidant water product. The marketing department has described a selection of the population as: "relatively homogeneous collections of prospective buyers." The marketing department is Describing what?

Figure 9-8 -A perceptual map can be used to identify a firm's product in terms of how closely it fits the "ideal" and where it fits in relationship to competitors. The map is based on perceptions of:

What are the steps needed to segment and target a market?

At a Hallmark store you can find several different product lines of greeting cards, including Fresh Ink, Nature's Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cards. This is an example of:

Understanding customer needs is the _________ step in market segmentation.

When a telemarketer calls to sell a consumer vinyl siding for his or her home, the first question the telemarketer asks is if the person answering the phone is a homeowner. Whether the prospect is a homeowner indicates the use of which type of consumer segmentation variable?

Kellie Johnson makes jams and jellies that sell under the brand name of Yesterday's Kitchen. In developing a marketing strategy to sell her product line, she decided to buy an ad in the local shopper's newspaper that is well-read in her region of the country. She has just:

Your company earned sales of $10 million last year and is anticipating a growth rate this year of 12.5%. You calculate this year's sales may be $12.5 million. Which forecasting method did you use to arrive at this answer?

Several years ago dairies got the idea to target chocolate milk sales at a new market -adults. They did this by shifting perceptions of chocolate milk as a children's Moderately nutritional drink to it being perceived as a highly-nutritious adult drink. This illustrates successful implementation of a ___________.

Which of the following is NOT one of the five general criteria often used to pick target segments?

Henry Ford developed his Model T, a car he felt would satisfy the needs of everyone. Ford said, "They can have it in any colour, as long as it's black." His strategy was Simple: focus in the economies of scale created by mass production. Ford's strategy was also known as a:

By Terry is a company that caters to the very affluent consumer who desires complete personalization. This Paris-based boutique will use your DNA and planetary alignment to customize your very own lipstick. The lipstick is designed and created solely for you. But it will cost you US$1,200. This is an extreme example of:

Down by the Bay is a Muskoka-based retailer that sells cottage furniture and other items for cottagers. Down by the Bay expects to achieve $3 million in revenues in 2014. This $3 million is a(n):

Figure 9-8 -The perceptual map in Figure 9-8 shows how various drinks are seen in the minds of adult consumers. Suppose a coffee producer wants to increase sales. Its advertising agency recommends that it run ads showing that coffee is healthier than one or more competitive drinks shown in the figure. In the ads, coffee should be compared with

A new local coffee shop has noticed that in town there is a Tim Horton's, McDonald's, and Starbucks all competing for individual's daily coffee purchase. They conduct a survey of area residents who enter each one of these stores and learn that 85% desire an organic, fair-trade option. As the local coffee shop is just initiating the segmentation and targeting process, what has the local coffee shop just completed?

Miller beer once called itself "the champagne of bottled beer," and ads showed elegant women in long white dresses sipping beer from crystal goblets. Then the company discovered that most beer is consumed by men 18 to 30 years of age, and it changed The thrust of its marketing message to reflect the more productive target market. What segmentation variable has it focused on with the newer approach?

Market segmentation is only a means to an end. In economist's terms, it relates supply (________ )to demand (the customer needs).

Differentiation positioning requires a product to: