Exam 7: Segmenting and Targeting Markets

Train collectors Jack McCoy and Sandro Dias have decided to open a store that sells train memorabilia--everything from toy train sets to full-sized railroad signs.After 18 months in business,they have noticed that most of their sales are to the same small group of customers (about 40 people)even though they have records to show their are over 200 active train collectors within a 50-mile radius of their store.Their retailing experience is supportive of the:

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.An appropriate market segment for this book could be family life cycle.

If you wanted to introduce a magazine devoted to providing information on how to live off the land in Canada,you would be likely to target Western Canadian men who have a strong need for individualism and limited government regulations.In other words,you would probably use _____ segmentation.

The continuing rise in the number of women in the workforce,the increase in working mothers,and the rise in single-parent households mostly headed by women,have produced:

What is usage-rate segmentation? What is the 80/20 principle and how does it apply to usage rate segmentation?

The business market consists of four broad segments.What are these segments?

The marketing researcher for Chickadee,a manufacturer of designer clothing for infants and toddlers,has submitted a report on potential segments for expansion of its marketing efforts.She noted an increase of professional women over the age of 35 who are leaving their jobs to have their first babies.She described this segment as having substantiality.This means it:

Reader's Digest magazine plans to send to millions of people 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 subscriber has.Reader's Digest is applying benefit segmentation which is:

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 marketing research revealed that _____ segmentation can be used to identify the biggest fans of professional wrestling.

To be useful,a segmentation scheme must produce segments that meet four basic criteria.The criteria are:

Business marketers focus on four broad market segments.Which of the following is NOT one of those segments?

Mirage Resorts in Las Vegas has a system that allow hotel clerks instantaneous access to a client's gambling history to determine what sort of room or complimentary services will provide the guests with the highest level of service.The resort is practicing:

Name and briefly describe four bases that firms typically use for positioning or repositioning their products/services.

The James Hardie Siding Company sells concrete siding.It was having little luck targeting contractors because concrete siding is difficult to install and shows every flaw if a house is incorrectly framed.So Hardie decided to target homeowners who wanted the security of knowing their siding that was guaranteed not to rot or crack for fifty years.In terms of psychographic segmentation,the siding company used the _____ variable.

The public transportation system in the San Francisco area conducted a survey that revealed respondents could be assigned to one of four categories: (1)people who never utilized mass transit,(2)people who utilized mass transit in the past but not now,(3)people who utilized mass transit occasionally,and (4)people who utilized mass transit regularly.These groups have significantly different perceptions about transportation alternatives.This is an example of _____ segmentation.

SRD Research Firm has conducted marketing research on the market for concrete siding for homes.The research firm has determined there are thousands of homeowners who want the security,safety,warmth,and stability provided by concrete siding.These homeowners are generally married and between 25 and 54 years of age.They tend to live in suburban neighborhoods and most subscribe to lifestyle magazines.If you were interpreting these results you might suggest that SRD:

A manufacturer of lenses used in microscopes,binoculars,and telescopes,has segmented its market into scientific equipment manufacturers,sporting equipment manufacturers,and retailers who sell replacement lenses.In order for this segmentation scheme to be successful,all of the following criteria must be met EXCEPT:

Terri LaVoile operates a plumbing and electrical supply store.He has categorized its business customers by their purchasing strategy.LaVoile has found it much easier to serve and satisfy the ______,who usually recontact familiar suppliers and place an order immediately if product and delivery requirements are acceptable.

_____ is one of the potential disadvantages associated with a multisegment strategy.

Multisegment targeting offers many benefits to firms,as well as many additional costs.List two benefits and four costs of multisegment targeting.