Exam 7: Segmenting and Targeting Markets

After selecting a market for study,and choosing a basis for segmenting that market,the next step is to:

United Social Service Agency wants to identify segments by their readiness to participate in a drug and alcohol program or in prenatal care.The agency will need to gauge whether there are enough people to justify setting up the service.The FIRST segmentation criterion problem that would greet this proposal is:

Income,ethnic background,gender,and age are all examples of _____ segmentation bases.

Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife Gets Home.It is an advice book for new fathers.This is an example of the use of demographic segmentation variables.

_____ are characteristics of individuals,groups,or organizations that marketers use to divide a total market into segments.

SCENARIOS Turkey Hunting Equipment Around the beginning of fall each year,about 2.7 million turkey hunters all over the United States start looking at catalogs for the perfect item to guarantee that this year they will kill a wild turkey,the most elusive game bird on the North American continent.The devoted turkey stalker can stock up on everything from camouflaged turkey hunting socks,turkey license plate holders,vests with huge pockets for toting dead birds,and hunting videos to turkey decoys,turkey earrings,and turkey callers.Neil Cost is considered the best manufacturer of turkey callers in the world.That is his only product,and each is highly prized by turkey hunters.It is not unusual for a turkey hunter to pay $5,000 for one of Cost's callers. -Refer to Turkey Hunting Equipment.What kind of strategy does Neil Cost use to select his target market?

The purpose of market segmentation is to:

Ol' Roy (the Wal-Mart store brand)dry dog food is sold at minimal cost with no promotion.Kal-Kan Foods markets Pedigree dry dog food and spends time and money to develop ads to show the relationships between dogs and their owners.The two companies' products provide the same level of nutrients to dogs.These products are not differentiated.

Ayres Corp.makes airplanes.It sells about 50 planes a year to be used as crop dusters.It sells another 75 a year to delivery companies.In addition,it manufactures another dozen or so that are used for fire fighting,and it sells about six a year for military transport purposes.What type of targeting strategy is Ayers using?

John Sichner,editor and publisher of Beverage Digest,a trade journal for beverage producers,wrote,"In this day and age,one product can't be the answer for all consumers." In other words,Sichner was opposing the use of:

Marketers use demographic information to segment markets because it is widely available and often related to consumers' purchasing and consumption behavior.List four common bases used by marketers for demographic segmentation.For each base listed,give an example of a product specifically targeted to the needs and wants of the segment identified within the base.

Hudson's Bay Company has Canada's largest reward program-HBC Rewards.This program enables members to earn points at the Hudson's Bay family of stores,including The Bay,Zellers,Home Outfitters and hbc.com.Consumers can redeem points for over 600 rewards in the HBC Rewards catalogue,including travel,leisure and entertainment items,Air Miles reward miles or Bay and Zellers gift certificates.Which of the following provides the most likely reason why Hudson's Bay Company implemented this reward program?

A(n)_____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have relatively similar product needs.

Reader's Digest magazine sent millions of subscribers with different medical conditions,such as high blood pressure or high cholesterol,a booklet filled with articles and prescription-drug ads,all about the very condition each person has.Reader's Digest's segmentation plan used benefit segmentation variables.

The Southern Company is the largest provider of utilities in the southeastern United States.It has also been accused of being the biggest source of industrial air pollution in the area.The Southern Company is trying to change consumer perception of the company by sponsoring a series of television programs on how to preserve our environment.The Southern Company is hoping that the programming will lead to:

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.

Alexa Ling,the new owner of a stationary shop,understands the need to segment her market.Available marketing research indicates there is much demand in the community for personalized gifts.Ling has few resources and cannot engage in intensive consumer research to precisely identify a segment.Which of the following strategies would you suggest she employ?

Markets can be segmented using a single variable (such as gender),or by several variables in combination (such as gender,age group,and education).While multiple-variable segmentation is more descriptive and precise than single-variable segmentation,it has several disadvantages.Name three disadvantages of multiple-variable segmentation.

When the Sara Lee Bakery Group introduced Iron Kids Crustless bread (to save mothers the time and effort of slicing the crusts off of sandwiches),it was using:

The Grief Store sells keepsake urns,cremation urns,funeral jewelry,and books on how to cope with the grief caused by a loved one dying.Demographically,the Grief Sore is probably using _____ segmentation.