Exam 9: Marketing Segmentation, Targeting, and Positioning

The division of the total market into smaller, relatively homogeneous groups is called market selectivity.

One of Engel's laws says the percentage spent on housing, household operations, and clothing remains constant. In recent years, however, this has been challenged. In fact, the percentage of income spent on these items has increased over the years.

What are computer systems that help marketers analyze marketing information by assembling, storing, manipulating, and displaying data by their location known as?

Typically, a single marketing mix strategy attracts all sectors of a market.

Geographic segmentation provides useful distinctions when regional preferences or needs exist.

The success of the market segmentation process depends heavily on a company's ability to use forecasting methods.

Why are micromarketing techniques used?

Geographic information systems (GIS) simplify the job of analyzing marketing information by placing data in a spatial format. The result is a map overlaid with digital data about consumers in a given area.

According to Jacques Bouchard, compared to the rest of Canada, Quebecers have a higher tolerance and crave the simple life.

Five years ago, Joshua spent 28 percent of his $45,000 yearly income on his bachelor apartment. Today, Joshua is earning $60,000 annually. According to Engel's laws, what percentage of income will he spend on his new apartment?

What is the group born between 1947 and 1965 and are a popular segment to target because of their numbers and income levels called?

BMW wanted to move beyond its yuppie image in order to attract buyers from the affluent car market, 75 percent of whom were not considering a BMW purchase. The new advertising campaign emphasizes that BMW is a "company of ideas" and its cars are built for the "creative class." This repositioning moves BMW from an attributes position strategy to an applications position strategy.

The 80/20 principle holds that a small percentage of loyal customers generate the bulk of sales.

What interactive medium might help micromarketers boost the effectiveness of their strategy by tracking specific demographics and communicating directly to individuals who are most likely to buy that product?

Home Depot introduced a new line of riding lawn mowers. The company decided to focus more on people living in the suburbs than those in the city because a survey showed the former category to be more inclined toward gardening. This is an example of a demographic segmentation by Home Depot.

Firms must attempt to group consumers according to the presence or absence of those factors that affect purchase decisions.

When one product becomes part of another product that is destined for resale, what is the first product considered?

Match each item to the statement or sentence listed below. a.target market b.market segmentation c.cohort effect d.census metropolitan area (CMA) e.differentiated marketing f.concentrated marketing g.micromarketing h.positioning map i.VALS j.AIO statement k.core region l.consumer product m.demographic segmentation n.80/20 principle o.psychographic segmentation p.geographic information system (GIS) q.positioning r.geographic segmentation s.business product t.mass marketing -A product that is purchased for use in the production of other goods and services for resale is called a(n) _____.

Match each item to the statement or sentence listed below. a.target market b.market segmentation c.cohort effect d.census metropolitan area (CMA) e.differentiated marketing f.concentrated marketing g.micromarketing h.positioning map i.VALS j.AIO statement k.core region l.consumer product m.demographic segmentation n.80/20 principle o.psychographic segmentation p.geographic information system (GIS) q.positioning r.geographic segmentation s.business product t.mass marketing -A firm that promotes numerous products with several marketing mixes designed to satisfy smaller target segments is said to practice _____.

Since rubber purchased by Goodyear is used to manufacture tires that are ultimately used by consumers on the automobiles they purchase, rubber is a consumer product for Goodyear.