Exam 8: Segmenting and Targeting Markets

Fisher-Price is identifying Asian markets that are interested in their line of talking toys.Fisher-Price is engaged in the process of market segmentation.

Evenflo makes baby-gates to keep toddlers away from stairs.What demographic segmentation variable will Evenflo use to identify its target market?

NASCAR racing fans are some of the most diverse and loyal fans in the world.They will stand in the pouring rain,the freezing cold,or the blistering heat for hours to shake the hand and get the autograph of a NASCAR super driver.These fans are not concentrated in any one area,but are dispersed throughout the United States.A Web site designed to market NASCAR memorabilia would be most likely to be successful if it used _____ segmentation to determine its target market.

Thompson Pools installs and maintains swimming pools.They group their customers according to their needs: new installs,regular maintenance,and frequent product consumers.When do they need a new segmentation analysis?

When Procter & Gamble (P&G)introduced Liquid Tide to a new segment,consumers in the traditional powdered detergent segment switched to the liquid product.Rather than real sales growth,P&G simply experienced the shifting of existing customers to a new product.This exemplifies a drawback of multisegment targeting strategy called:

The Coca-Cola Company has over 450 brands in over 195 countries.According to their web site,their products range from Samurai,an energy drink available in Asia,to Vita,an African juice drink.Coca-Cola uses _____ segmentation in this marketing strategy.

Modern Maturity magazine is targeted toward adults age 50 and older.It has articles on health and fitness as well as the arts and finance.What segmenting base is Modern Maturity using?

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.It 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 Turkey Hunting Equipment.What kind of strategy does Cost use to select his target market?

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

Mercedes-Benz Daimler AG,the maker of Mercedes-Benz automobiles,is planning to launch a new line of downsized luxury vehicles in the United States by 2012.Daimler has experienced a recent drop in global sales attributed to its product mix that focuses on larger luxury automobiles.With increasing fuel prices and stricter U.S.fuel-economy standards coming down the pipeline,Daimler doesn't want to be left behind.Daimler is behind its competition,though.Its German rivals,Audi and BMW,have been relatively successful in the U.S.BMW's Mini Cooper,demanding as much as $34,000,has already driven away with some of Daimler's potential sales.While Daimler already offers the Smart car in the U.S. ,the new offerings will not be going after the same consumer -Refer to Mercedes-Benz.Mercedes-Benz's baby boomers are a useful segment because they meet certain criteria.Which of the following do the baby boomers meet?

Wine Spectator is a magazine that targets people who appreciate good wine and food.However,the discriminating reader of this magazine is also interested in travel and health,so the magazine features travel and health-related stories.This publication relies on _____ variables to identify its target market.

In Miami,several radio stations broadcast in Spanish and play Latin music for the Hispanic people living in South Florida.The radio stations are using _____ segmentation.

The place a product,brand,or group of products occupies in consumers' minds relative to competing offerings is referred to as a product's:

Discuss the four trends that have resulted in the continuing growth of one-to-one marketing.

Companies that adopt a concentrated marketing strategy violate which of the following old sayings?

Changing consumers' perceptions of a brand in relation to competing brands is known as:

ThermaCare air-activated heat wraps are meant to be wrapped around sore muscles and joints.The product is advertised as a powerful pain reliever and a source of deep muscle relaxation.Its soothing warmth can work at night while you sleep to restore your body.The manufacturer of ThermaCare heat wraps is using _____ segmentation.

Wrestling Merchandise Market research has shown that 6- to 17-year-old males,18- to 24-year-old females,and 18- to 44-year-old males are most likely to watch a televised professional wrestling event or to attend a live match.Wrestling events are regularly broadcast in 120 different countries.Merchandise licensed by World Wrestling Entertainment (formerly known as the World Wrestling Federation)can be purchased at JCPenney and Walmart.Clothes for adults are used to reach markets that may not buy action figures,video games,and novelty candy,but who are still proud to sport World Wrestling Entertainment (WWE)trademarks. -Refer to Wrestling Merchandise.Since the WWE must use different methods to reach its three largest target markets,it must use:

What is the first step in segmenting a market?

A group of middle school students stop by a bicycle store.The store has just received a new shipment of high-end racing bicycles.The bicycles range in price from $1,200 to $3,000.All of the students want one of these new bikes,but none has the means to buy one.Is this group of consumers a potential market for the expensive bikes?