Exam 9: Market Segmentation, Targeting, and Positioning

A positioning map:

Geographic segmentation provides useful distinctions when regional preferences or needs exist.

Not-for-profit organizations practice market segmentation.

You have just completed an extensive marketing research project designed to determine the potential of a new service your company is considering launching. Using surveys, polling, face-to-face interviews, and mail-in questionnaires, you have determined that the consumers who are most inclined to use this new service live in densely populated urban areas within certain zip codes. What approach to market segmentation should you use?

Placing a product at a certain point or location within a market in the minds of prospective buyers is known as _____.

Many other students in your class have demographic characteristics very similar to you. You are likely the same age, same level of education, same ethnic background, and so forth. However, you may have very different attitudes, interests, and opinions. For example, you may have little in common regarding your political opinion, taste in music, or hobbies you enjoy. Recognizing these differences are related to consumer purchase activity will lead a company to use:

Starbucks marketing itself as "premium coffee" beverage retailer is an example of a positioning strategy based on _____.

A market includes any person or entity that has the willingness and the purchasing power to buy a product.

Lefty's, The Left Hand Store claims it has the "biggest and most interesting selection of left-handed products" anywhere. Lefty's offers special scissors, tools, kitchen items and school supplies, all designed for left-handed people. Lefty's is quite successful, even though only about 10% of the population is left-handed. It can be said that left handed people are Lefty's:

​A junior member of your marketing department has recommended demographic segmentation for your fast food brand. In a memo, he wrote: "We should be marketing to females who are Hispanic, low-income, unmarried, and have four or more children." You express at least one strong concern about this recommendation. What concern(s) do you express?

A hotel purchases towels for use in its rooms. In this context, these towels will be considered business products.

_____ are goods and services purchased for use either directly or indirectly in the production of other goods and services for resale.

Psychographic segmentation involves segmenting the consumers on the basis of the benefits they seek from a product.

Raw silk is an example of a consumer product.

Home Depot introduced a new line of riding lawn mowers. The company decided to focus more on people living in the suburbs than those in the city because a survey showed the former category to be more inclined toward gardening. This is an example of a demographic segmentation by Home Depot.

The marketing strategy that focuses on producing a single product and marketing it to all customers is called:

Soft drink producers such as Pepsi make their products available to consumers in a variety of packages - 12 ounce cans, 20 ounce bottles, 1 liter bottles, and 2 liter bottles are just some examples. Of course, some consumers don't buy 2 liter bottles because the beverage can go flat before it is consumed. For other customers though, this is the preferred packaging. It seems Pepsi makes good use of _________ segmentation.

Angela has recently opened Angela's Exquisite Accessories, a boutique that sells women's accessories. She has picked items that she thinks young women will enjoy, and is especially interested in upscale designer items for wealthier customers. Angela is using:

The Fortune at the Bottom of the Pyramid is a book presenting an interesting argument - that emerging economies have 4 billion residents that struggle to live on a very minimal income, but even making a tiny profit off of sales of this volume can be a financial windfall. With a market of this size, there is certainly vast potential. Despite being very large and with high aggregate purchasing power the cost structure of serving this market has not been financially attractive to U.S. firms. Overall, The Fortune at the Bottom of the Pyramid has not worked out for U.S. companies because of which of the key criteria for successful market segmentation? This segment is not:

The lumber that a carpenter purchases to make a table for a customer can be classified as a(n):