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

STP marketing includes segmenting, targeting, and positioning.

While a company may use a variety of themes in establishing a position, it should communicate only a single theme within any one advertisement.

Getting switchers to buy your brand ensures a new crop of loyal brand users.

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 competitive positioning in its advertising?

The purpose behind all efforts at market segmentation is to

Success from applying the STP framework is often short-lived.

As marketing manager for a large company that publishes magazines, you have been put in charge of positioning a new magazine for "woopies," or well-off older people. You research the market and make a recommendation to segment on the basis of some VALS information that you collected. You are about to use

Scenario 4-2 Stronger income growth among upscale shoppers is fueling sales at the high end, while slow job growth and higher energy costs are prompting more moderate-income consumers to search of bigger bargains. No retail sector is more squeezed from both sides than the department-store chains, most of which continue to lose sales to other retailers. That has opened the door for financier Edward S. Lampert, 42, whose plans to merge Kmart Holdings and Sears could result in Sears vacating 200 to 300 of its 871 mall-based stores Overriding all this jostling is the biggest question in retail: whether the planned merger of Kmart and Sears will work. The deal would accelerate Sears' strategy to move off the mall by taking some Kmart sites. The retailers believe, too, that they would benefit from cross-selling some of their proprietary brands, like Kenmore appliances. (Robert Berner, "Retail's Unhappy Middle Ground," Business Week Online, December 24, 2004.) -(Scenario 4-2) Sears promotes its Kenmore line with the phrase "The innovative side of Sears." This phrase should be a clear reflection of its

Define and explain the importance of the value proposition in brand promotion.

Aligning the marketing mix to yield distinctive approval for the target segment is

A value proposition fosters the most effective IMC strategies because it

Scenario 4-6 Madison State University has a reputation for having a powerful intercollegiate coed bowling team. Seating in the campus bowling alley only allows for 400 fans to attend any of their matches. Long lines for seats have formed in the past with many fans leaving disappointed because they could not get a ticket. As a result, the school's administrators decided to institute a "priority seating" plan where fans would be given access to advance tickets based on the following schedule: • "Lanemaster Club" - $10,000 annual donation to the bowling program - guaranteed free box seats to any match (100 seats total) • "Strike Club" - $1,000 annual donation to the bowling program - guaranteed free bleacher seats to any match (100 seats total) • "Kingpin Club" - participants in local recreation bowling leagues - guaranteed bleacher seats for $10.00 to any match (100 seats total) • "Pinhead Club" - students who have maintained a 3.9 GPA or better - guaranteed bleacher seats for $1.00 to any match (100 seats total) -(Scenario 4-6) There is a group of 30 students that have earned 3.9 GPA or better that have attended every match for nearly four years. These students would best be described as ____.

The acronym STP stands for

A market niche is

Scenario 4-2 Stronger income growth among upscale shoppers is fueling sales at the high end, while slow job growth and higher energy costs are prompting more moderate-income consumers to search of bigger bargains. No retail sector is more squeezed from both sides than the department-store chains, most of which continue to lose sales to other retailers. That has opened the door for financier Edward S. Lampert, 42, whose plans to merge Kmart Holdings and Sears could result in Sears vacating 200 to 300 of its 871 mall-based stores Overriding all this jostling is the biggest question in retail: whether the planned merger of Kmart and Sears will work. The deal would accelerate Sears' strategy to move off the mall by taking some Kmart sites. The retailers believe, too, that they would benefit from cross-selling some of their proprietary brands, like Kenmore appliances. (Robert Berner, "Retail's Unhappy Middle Ground," Business Week Online, December 24, 2004.) -(Scenario 4-2) Kenmore previously appealed to penny-conscious consumers who were in a position to buy major appliances for the first time. When studying usage patterns, the members of this group are referred to as

One reason to pursue niche marketing is that a company can often charge a premium price for its product.

Surprisingly, psychographic segmentation is refers not just to the inner mindset of consumers but also to their lifestyles.

Once a company matches what it can offer with what a target segment wants, the task of segmenting has begun but is by not yet complete.

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) In order to capture the ____ in the market, the Plantatarium offers a punch card that rewards buyers with a $10.00 discount each time they have purchased over $150.00 of plants from the store.

A package delivery company decides it wants to get into the flower delivery business. However, it knows that FTD has a huge share of the market and can offer service worldwide. It decides to look for a market niche. Which of the following is not an advantage of this strategy?