Exam 7: Segmentation, Targeting, and Positioning

Why might a marketer of laundry detergent be interested in viewing a perceptual positioning map?

Your company wants to move away from mass marketing and engage in customer-driven marketing. The four steps to take, in order, are market segmentation, marketing positioning, differentiation, and targeting.

Your assignment at work is to divide buyers into different groups based on social class, lifestyle, and personality characteristics. After a planning session with the marketing and sales staff, you issue a memo to upper management recommending psychographic segmentation. You are right on target.

The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation.

International Drilling Company is a business-to-business company that segments its foreign markets by the income levels of a country's population. This firm segments on what basis?

Your firm's research reveals that consumers have different tastes in different cities. As a result, management has decided to localize its products and services to meet local market demands. This is an example of ________ segmentation.

In what ways might a marketer be able to gain competitive advantage through channel differentiation?

Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached ________ and effectively with products and services that match their unique needs.

"Less-for-much-less" positioning involves meeting consumers' ________.

The Montreal Athletic Association (MAA) is an upscale club and fitness facility in downtown Montreal. The club offers comprehensive fitness services that include a state-of-the-art weight room, squash courts, handball court, boxing ring, Olympic-sized swimming pool, zumba dance classes, yoga rooms, spinning classes, and a gymnasium for volleyball, badminton, basketball, and floor hockey. Several of the classes and personal training services are headed by fitness celebrities and former Olympic athletes. Beyond fitness, the MAA offers a world-class sports clinic that serves its members and many professional athletes. The clinic includes sports doctors, physiotherapists, and dietician services; and massage services and a restaurant are also part of the MAA offering. The restaurant, affectionately known by its members as "the Captain's Pub," has daily changes to its menu. Members routinely gather at the restaurant for drinks, holiday parties, Mother's Day brunches, and special events such as whiskey tastings. The staff likes to surprise its MAA "family members" by handing out roses to mothers on Mother's Day and having recognized experts lead the wine tasting sessions. Some members have belonged to the MAA for over 70 years! Not surprisingly, MAA is a favourite of celebrities when they shoot movies or perform concerts in Montreal. It is not uncommon for members to invite an A-lister movie star to join in a game of basketball or see a member have a game of squash with a rock-star. A few years ago, Reader's Digest voted MAA the best club in the country. The MAA likes to pamper its members. Change rooms are equipped with luxury towels and full amenities (e.g., shaving cream, razors, lotions, and shampoos). Laundry services and a pro shop with dedicated pros offering lessons are additional services that members can purchase. The MAA is not an inexpensive club. Each new member enters with an initiation fee of $250. Base monthly memberships on a 1-year contract start at $99 for those under 30, $109 for those between 30-35, and $125 for those over 35. The longstanding members who capture the "the spirit of the Club" are awarded Gold Memberships, which give the gold members access to special club privileges. -You meet the General Manager of the MAA. He asks, "How should we assess the attractiveness of the different market segments?"

Sanguine Services practices a marketing strategy where its limited resources are used to go after a large share of two small niches. Sanguine practices which one of these strategies?

Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation?

When a company interacts one-on-one with large numbers of customers to create customer-unique value by designing products and services tailor-made to individual needs, it is following ________.

Which group determines a product's position relative to competing products?

User status segmentation involves finding the major advantages or features people look for in the product class, the kinds of people who look for each advantage or feature, and the major brands that deliver each advantage or feature.

A product's position is the way the product is defined by the retailers who sell it to target markets. It is how it is defined on important attributes-the place the product occupies in the retailers' minds relative to competing products.

What competitive positioning strategy can attack a more-for-more strategy by introducing a brand offering with comparable quality at a lower price?

You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand is differentiated and positioned. This full positioning of the brand is called ________.

There are many exceptions to the geographic segmentation assumption that consumers in nations close to one another will have many common behaviours and traits.

Shopping For The Rich and Famous is a buying service that helps wealthy clients find the best buys in exclusive clothing, high-end cars, travel, and financial services. This firm would use household income segmentation.