Exam 8: Identifying Market Segments and Targets

________ is the science of using psychology and demographics to better understand consumers.

To be useful, market segments must rate favorably on five key criteria. What are those criteria?

Purchasing approaches segmentation variables in the business marketplace include technology, user and nonuser status, and general purchasing policies.

Effective target marketing requires that marketers use market segmentation, market targeting, and market positioning to achieve success in the marketplace.

Which of the following best represents the chief advantage of pursuing a selective specialization multisegment strategy?

Customer cloning is the practice of identifying the key characteristics of a market segment and then identifying multiple geographic areas where the majority of the population possesses those characteristics.

Volkswagen concentrates on the small-car market and Porsche on the sports car market. These would be examples of what is called ________.

Regardless of the type of segmentation scheme used, the key is adjusting the marketing program to recognize ________.

The process of selecting one or more market segments to enter is called ________.

All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment's needs, a strong market presence, operating economies through specializing in production, distribution, and promotion.

Rock band Foo Fighters created a digital street team that sends targeted e-mail messages to members who receive exclusive news, previews, and opportunities to win prizes. The Foo Fighters are using ________ to reach Generation Y.

Hard-core loyals can show the firm which brands are most competitive with its own.

According to the VALS segmentation system, ________ are considered to be elderly, passive people who are concerned about change and are loyal to their favorite brands.

Psychographics is the science of using psychology and demographics to better understand consumers.

The most attractive segment is one in which entry barriers are low and exit barriers are high.

A market segment consists of a group of consumers who share a similar set of needs and wants.

A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can show the firm which brands are most competitive with its own.

When a symphony orchestra targets people who have broad cultural interests, rather than only those who regularly attend concerts, the orchestra is targeting ________.

Explain the concept of differentiated marketing.

A segment is attractive when there are actual or potential substitutes for the product.