Exam 4: Understanding the Marketing Environment: Segmentation, Targeting, and Positioning

Scenario 4-4 Keds is trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving. However, as of late, competition from Sam & Libby and Easy Spirit brands have been nipping at the heels of Keds. As part of its effort to revitalize the brand, Keds' advertising agency has developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to Brandweek magazine, "The new ads really go for the heart." Copy on the first ad includes, "She was my first, I could never tell her how to dress," with the daughter saying, "She made me feel pretty even when I had braces." -(Scenario 4-4) The theme of the advertisements that Keds is running uses

Demographic segmentation is widely used in selecting target segments and includes basic descriptors such as age, gender, race, and education.

Scenario 4-3 El Sol sunglasses were designed by an avant-garde artist. She said there were no sunglasses out there that she would wear, so she had to design her own. Her sunglasses were worn by a whacked-out bad guy in a blockbuster movie and, because of this, have acquired a cult following among young teens. Print advertisements are visually sparse--nothing more than a still shot from the movie and a logo for the brand. Eyewake sunglasses were designed by an optician after he realized that conventional sunglasses allowed in certain types of light that promoted eye fatigue. He made 1,000 of his sunglasses and gave 100 of them away to friends and acquaintances. After trying them out for awhile, several of them told him that they really liked them when they had to drive for extended lengths of time. He placed an ad in the back of a tourism magazine, extolling the safety benefit of driving with eyes that weren't fatigued. He promptly sold all of his remaining glasses. Kushyspecs sunglasses were developed after research revealed that there was a small group of people who didn't like wearing sunglasses because most sunglasses left pinch marks on their noses. The company that performed the research developed sunglasses with a soft, cushiony nose piece. Advertisements for Kushyspecs feature the headline "The mark of a good pair of sunglasses is no mark at all." -(Scenario 4-3) Which of these brands of sunglasses was positioned through a product differentiation strategy?

____ are those whose brand preferences are still under development and are likely to offer future potential success for the brand.

The STP approach is strongly recommended when markets are:

Descriptors such as age, gender, race, and marital status are widely used in

Scenario 4-5 Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and accessories called The Plantatarium. Their initial feeling when they went into business was that virtually everyone was a potential customer for house plants. Subsequent market research conducted for them painted a different picture. This research identified three particularly strong market segments. The first was college students ages 18-24. The next segment was retired seniors ages 65-80. The third segment was professional offices for doctors, accountants, and lawyers. The college students liked houseplants because they dressed up their living spaces. The senior liked them because they became the focus of a hobby. The professionals did not buy them for any other reason than décor. -(Scenario 4-5) A few customers told the owners of the Plantatarium that they would like to see them carry a few varieties of cactus. The Garretts decided to devote a small corner of their store exclusively to cacti. These customers constitute an example of a ____.

Scenario 4-1 Headquartered in Boston, The Gillette Company is the world leader in male grooming, a category that includes blades, razors and shaving preparations. The Gillette Company announced the upcoming launch of two new high-performance women's razors, broadening the portfolio of the top-selling Venus brand, the world's most successful franchise in female shaving. The two new razors are Venus Vibrance™, the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporate technological and design enhancements to better address the specific shaving needs of women. (http://www.gillette.com/women/product_news/gillette_introduces_two_new_razors.htm) -(Scenario 4-1) The philosophy behind Gillette's efforts is based on

Scenario 4-1 Headquartered in Boston, The Gillette Company is the world leader in male grooming, a category that includes blades, razors and shaving preparations. The Gillette Company announced the upcoming launch of two new high-performance women's razors, broadening the portfolio of the top-selling Venus brand, the world's most successful franchise in female shaving. The two new razors are Venus Vibrance™, the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporate technological and design enhancements to better address the specific shaving needs of women. (http://www.gillette.com/women/product_news/gillette_introduces_two_new_razors.htm) -(Scenario 4-1) This effort by Gillette to capture the female market

State Farm's "Like a good neighbor" ad campaign is an example of positioning consistency over the long run.

Scenario 4-4 Keds is trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving. However, as of late, competition from Sam & Libby and Easy Spirit brands have been nipping at the heels of Keds. As part of its effort to revitalize the brand, Keds' advertising agency has developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to Brandweek magazine, "The new ads really go for the heart." Copy on the first ad includes, "She was my first, I could never tell her how to dress," with the daughter saying, "She made me feel pretty even when I had braces." -(Scenario 4-4) Why should Keds not define its target segment simply as "women" instead of "mothers and daughters?"

Scenario 4-3 El Sol sunglasses were designed by an avant-garde artist. She said there were no sunglasses out there that she would wear, so she had to design her own. Her sunglasses were worn by a whacked-out bad guy in a blockbuster movie and, because of this, have acquired a cult following among young teens. Print advertisements are visually sparse--nothing more than a still shot from the movie and a logo for the brand. Eyewake sunglasses were designed by an optician after he realized that conventional sunglasses allowed in certain types of light that promoted eye fatigue. He made 1,000 of his sunglasses and gave 100 of them away to friends and acquaintances. After trying them out for awhile, several of them told him that they really liked them when they had to drive for extended lengths of time. He placed an ad in the back of a tourism magazine, extolling the safety benefit of driving with eyes that weren't fatigued. He promptly sold all of his remaining glasses. Kushyspecs sunglasses were developed after research revealed that there was a small group of people who didn't like wearing sunglasses because most sunglasses left pinch marks on their noses. The company that performed the research developed sunglasses with a soft, cushiony nose piece. Advertisements for Kushyspecs feature the headline "The mark of a good pair of sunglasses is no mark at all." -(Scenario 4-3) Which of these brands of sunglasses has a target audience selected on the basis of usage patterns and commitment levels?

When Mobil positioned itself as the "Friendly Serve" station, it had a number of good reasons for the selection of its target market. Which one of the following is not one of them?

The American Pork Producers association is running a campaign with the position "Pork. The other white meat." This is an example of

Scenario 4-3 El Sol sunglasses were designed by an avant-garde artist. She said there were no sunglasses out there that she would wear, so she had to design her own. Her sunglasses were worn by a whacked-out bad guy in a blockbuster movie and, because of this, have acquired a cult following among young teens. Print advertisements are visually sparse--nothing more than a still shot from the movie and a logo for the brand. Eyewake sunglasses were designed by an optician after he realized that conventional sunglasses allowed in certain types of light that promoted eye fatigue. He made 1,000 of his sunglasses and gave 100 of them away to friends and acquaintances. After trying them out for awhile, several of them told him that they really liked them when they had to drive for extended lengths of time. He placed an ad in the back of a tourism magazine, extolling the safety benefit of driving with eyes that weren't fatigued. He promptly sold all of his remaining glasses. Kushyspecs sunglasses were developed after research revealed that there was a small group of people who didn't like wearing sunglasses because most sunglasses left pinch marks on their noses. The company that performed the research developed sunglasses with a soft, cushiony nose piece. Advertisements for Kushyspecs feature the headline "The mark of a good pair of sunglasses is no mark at all." -(Scenario 4-3) Which of these brands of sunglasses uses benefit positioning in its advertisements?

Segmentation used in selecting target markets that includes basic descriptors such as age, gender, and income is known as ____ segmentation.

Scenario 4-5 Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and accessories called The Plantatarium. Their initial feeling when they went into business was that virtually everyone was a potential customer for house plants. Subsequent market research conducted for them painted a different picture. This research identified three particularly strong market segments. The first was college students ages 18-24. The next segment was retired seniors ages 65-80. The third segment was professional offices for doctors, accountants, and lawyers. The college students liked houseplants because they dressed up their living spaces. The senior liked them because they became the focus of a hobby. The professionals did not buy them for any other reason than décor. -(Scenario 4-5) The owners of this business have decided to carry a great deal of plants that flower throughout the year because most consumers have said they like them for the cheerful feeling they give. This suggests that The Plantatarium is following a ____ strategy.

Effective positioning is based on:

When segmenting markets based on consumers' usage patterns, variety seekers as a segment are characterized by

Scenario 4-4 Keds is trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving. However, as of late, competition from Sam & Libby and Easy Spirit brands have been nipping at the heels of Keds. As part of its effort to revitalize the brand, Keds' advertising agency has developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to Brandweek magazine, "The new ads really go for the heart." Copy on the first ad includes, "She was my first, I could never tell her how to dress," with the daughter saying, "She made me feel pretty even when I had braces." -(Scenario 4-4) Which segmentation technique would provide the most insight for Keds's advertising agency in the creation of its advertisements?