Exam 8: Segmenting and Targeting Markets

A(n)_____ is a group of people or organizations for whom an organization designs,implements,and maintains a marketing mix intended to meet the needs of that group,resulting in mutually satisfying exchanges.

Consumers' perceptions regarding a product's position cannot be changed.

What does the 80/20 principle propose?

Tower Fasteners developed a commanding position in the fastener industry by having in stock over 150,000 different types of fasteners.Tower's primary market is defined as companies with a need for specialized fasteners.All of the following are characteristics of the buying organization that Tower can use for segmentation EXCEPT:

Explain what is meant by positioning and describe the bases marketers use to position products and services.

A market is people or organizations that have:

Zatarains offers packaged spice mixes for jambalaya,gumbo,and red beans and rice.Consumers can buy the product in the store,so Zatarains sells individual household-size packages to resellers.It also sells institutional-size packages to military bases,schools,restaurants,and other large organizations.The marketers of Zatarains would most likely segment the business market according to:

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 consumers. -Refer to Mercedes-Benz.Which positioning base will Daimler be using if the company emphasizes the type of people who buy Mercedes-Benz automobiles in its promotional efforts?

The slogan used by GlaxoSmithKline,"Disease has no greater enemy" indicates the pharmaceutical company relies heavily on benefit segmentation variables.

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

While it is important to understand potential business customers' buying processes,this is not a helpful segmentation basis.

A(n)_____ strategy entails selecting one segment of a market to target,and focuses on understanding the needs,motives,and satisfactions of the members of that segment,as well as on developing a highly specialized marketing mix.

When Henry Ford first made the model T,he said consumers "can have any color they want as long as it is black." This was a case of _____.

What is the family life cycle (FLC)? Using the following selected stages from the FLC,briefly describe the lifestyle and purchasing needs of consumers in that stage: (1)Young single,(2)Young married without children,(3)Young married with children,(4)Middle-aged married without children,and (5)Older unmarried.

Marketers are realizing that the "one-size-fits-all" approach to marketing is still relevant.

Company characteristics,such as geographic location,type of company,company size,and product use,can be important segmentation variables.

The Green Earth,a landscaping company,finds that the most difficult firms to get business from are the _____ because this group considers numerous,even unfamiliar suppliers,solicits bids,and carefully analyzes options; therefore,it requires a higher levels of customer service.

What is geographic segmentation? Name four reasons why a company would use a regional marketing approach.Then give a specific example of a company marketing its product(s)regionally.

Johnson Publishing Company,the world's largest African American-owned publishing company and home of Ebony magazine,has forged an alliance with Dan River,Inc.,to create luxury bed and bath products for the newly developed Ebony Home brand.This brand will use the strong relationship the publisher has with the African American market to sell the brand.What form of demographic segmentation will be used to market the Ebony Home brand?

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 was guaranteed not to rot or crack for 50 years.In terms of psychographic segmentation,the siding company used the _____ variable.