Exam 9: Market Segmentation, Targeting and Positioning

If a marketer decides to segment a market based on neighbourhoods, the marketer will have chosen the________ method of segmentation.

It has been said that demographics is useful at answering the question, "Who buys the product or brand?" but does little to answer the question, "Why do people buy this brand?" Comment on this statement.

Marketers should be cautious in using age as a segmentation variable because age is often a poor predictor of a person's interests and needs.

To be useful, market segments should rate favourably on a number of key criteria. Which of the following is NOT one of these criteria?

The strategy of focusing on or gaining a large share of one or a few submarkets is called:

The Melbourne International Comedy Festival (MICF) is the second largest dedicated comedy event globally. In an effort to expand the market, festival organisers developed a new product, The Comedy Roadshow, designed to take the festival on tour around Australia. MICF now has two major products: the main event which features approximately 400 performances staged over one month and which appeals to urban consumers aged under 35 years and the Roadshow which features 60 gigs and appeals to broader age groups living in regional districts. MICF's approach to segmentation is BEST described as:

People with similar demographic characteristics generally will exhibit similar psychographic profiles as well.

The Tasty Snacks Company has determined that consumers' taste preferences differ according to the region of the country in which they live. The firm has segmented its market on the basis of:

When prospective customers give their express or implied consent for a company to communicate with them, this is known as which of the following?

The full positioning of a brand; that is, the full mix of benefits on which a brand is differentiated and positioned is known as its:

The Beta Corporation is preparing the strategy it will use in marketing its product against the competition it will face in its selected market segments. The firm is engaged in:

Which of the following statements is MOST correct about segmenting by usage?

The marketing research department at Whitney Corporation is attempting to identify consumer groups that might require different products or marketing mixes. Whitney is attempting to apply the concept of market:

The Accor Hotel Group operates five distinct hotel brands, each positioned at a different segment of the market. Sofitel is the luxury brand appealing to affluent travellers. Novotel is the mid- price, three- star hotel group appealing to both corporate market and independent travellers. Ibis is the two- star hotel division for the price- conscious. Formula One is positioned at the budget price end of the market; offering limited services it appeals to backpackers and families on very tight budgets. Finally, the Hotelia chain caters for extended hotel stays and appeals to the seniors market. The Accor group is using which approach to segmentation?

The Simms Corporation utilises lifestyle variables to segment its consumer markets. The firm is employing:

Mini Case 9- 1 A group of investors are thinking of starting a for- profit institution to be called Heaven University. They have identified a small segment of society that is displeased with the high cost of HECS or upfront fees and is willing to forego all social and sporting extracurricular activities in order to get an inexpensive, quality education in three years. The university investors will advertise nationally. Its target audience is individuals between 18- 40 years of age, who have either never undertaken a University degree or who failed to complete a degree commenced within the last ten years. The investors want to attract students who are currently working at a job with which they are dissatisfied. Heaven will only offer three degree programmes, which cannot be modified to individual student needs. Research has shown that these are degrees that this market segment repeatedly seeks. Students can earn their degrees over the Internet and only have to attend a one- week seminar on campus twice a year. -Refer to Mini Case 9- 1. The investors have identified their market through the use of segmentation variables.

Which of the following positioning strategies is most likely to be difficult to sustain in the long term?

An approach to segmentation that identifies consumers with similar needs or purchasing habits even though they may be located in different countries is known as:

Emma and Sarah operate an old- time coffee shop straight out of the 1950s with thick chocolate shakes, poodle- skirted waitresses, and a jukebox that contains 45 RPM records by such artists as the Drifters and the Platters. Emma and Sarah are using to create image differentiation.

Briefly explain the necessary characteristics of an effective and useful market segment.