Exam 7: Segmenting and Targeting Markets

A manufacturer of blankets knows heavy 100 percent wool blankets sell better in the New England area where the winters are harsh and that lighter-weight blankets sell better in the Southeast market where mild winters require fewer and lighter covers for the bed.Segmenting the market according to climate is an example of _____ segmentation.

Market researchers estimate thousands of Americans have high blood pressure and do not know it because they do not have annual medical exams.A pharmaceutical company that has developed a medicine to reduce blood pressure should not count on this group to be a good target market because the group lacks:

According to the criteria of _____ a selected segment must be large enough to warrant developing and maintaining a special marketing mix.Serving the specific needs of this segment must be commercially viable,even if the number of potential customers is small.

The debate over gay marriages is causing a great deal of furor,but it has done little to deplete the importance of the affluent gay market to businesses.Georgia Pacific and Mitchell Gold,a furniture manufacturer,are two companies that have implemented and maintained marketing mixes designed to meet the needs of lesbians and gays.To these companies and others,lesbians and gays are a desirable:

The Hudson-May Company manufactures and installs above-ground swimming pools.When the company began in 1989,it completed a thorough examination of its business customers.It grouped the customers into three segments based on size,geographic region,and benefits sought.Would you recommend a new segmentation analysis this year?

General Mills offers a deal where its cereal users can collect box tops and submit them to General Mills to earn money for their children's schools.This program,called the Box Tops for Education Program,is a means of changing light users into heavier users.In other words,it is a form of _____ segmentation.

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 Better World Travelers Club.What base has BWTC selected for its positioning strategy?

_____ divides individuals into groups according to the way they spend their time,the importance of items in their surroundings,their beliefs,and socioeconomic characteristics.

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 about six a year that are sold for military transport purposes.Ayres Corp.uses _____ variables.

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 Wrestling Merchandise.The groups identified above as strong wrestling fans can be described as:

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.What demographic variables have been used to define the market for this book?

Products such as bleaches,aspirin,unleaded regular gasoline,and some soaps are distinguished by minor differences,such as brand names,packaging,color,smell,or "secret" additives.With these products,marketers attempt to convince customers that their product is significantly different from the others and should therefore be demanded over competing brands.These marketers are using:

One of the causes of the growth of one-to-one marketing is decreasing brand loyalty.Discuss the reasons why consumers are more willing than ever to switch back and forth between major brands in a product category and even sometimes buy generic brands.

What is geodemographic segmentation? What is the result of geodemographic segmentation? Give one specific example that illustrates this type of segmentation.

AkPharm,Inc.has developed Cat-Sip,a lactose-free milk designed to be digestible by cats.The market for this product is cats.

You are the president of a new,capital-rich firm and you must decide on your firm's targeting approach.Three large subgroups exist in your market that have never had their unique needs served.If you don't act now,others will seize the opportunity.You should use a(n):

When a firm uses a concentrated targeting strategy,it can:

List in order the six steps used to segment a market.Then name two subsequent marketing activities.

When Ford Motor Company launched an online effort to market its F-Series trucks,it created a database,which could be used for one-to-one marketing.One potential problem with the use of this database is:

Everyone tends to go through periods where they feel a need to partake in some kind of exercise,and they buy the equipment needed.When they stop the exercise program,the equipment can gather dust or be sold to a store in the Play It Again Sports retail chain.The Play It Again Sports chain carries all kinds of sports equipment at much lower prices than the typical sporting goods store.Typically,merchandise sold in the store has little,if any,wear.By being both a way for people to get rid of unwanted equipment and a source of new-to-you equipment,Play It Again Sports is emphasizing: