Exam 6: Market Segmentation, positioning, and the Value Proposition

Scenario 6-3 Keds has been 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. But over time, competition from Sam & Libby and Easy Spirit brands has been nipping at the heels of Keds. As part of its effort to revitalize the brand several years ago, Keds' advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother saying, "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 6-3)Instead of "mothers and daughters," why didn't Keds define its target segment simply as "women"? 

The Folgers brand team looked at the diverse market of all coffee drinkers,then broke it down by age.The team chose to focus on college-aged students who were new to coffee; these people represent the _______ 

_____ involves the overlapping of four important factors: current relevance to the consumer,credibility or consumer belief in the brand,differentiation or a recognition of uniqueness,and "stretch" or the potential for consumer relevance over time.

Scenario 6-3 Keds has been 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. But over time, competition from Sam & Libby and Easy Spirit brands has been nipping at the heels of Keds. As part of its effort to revitalize the brand several years ago, Keds' advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother saying, "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 6-3)Which of these segmentation techniques would provide the most insight for Keds' advertising agency in the creation of its advertisements? 

Scenario 6-2 Sunshine Meals Inc. is a company that sells breakfast foods such as cereals, pancake mixes, etc. The company conducts a study to segment its consumers. It finds that segment A consists of a small group of individuals who purchase four boxes of the brand's cereal every week. The average user consumes one box every week. It targets segment A by providing them with samples of other Sunshine products with the purchase of one box.Segment B consists of a large number of college students and individuals who have recently begun living on their own, and require readymade mixes as their breakfast solution. It targets these consumers by providing more variety with pancakes and waffle mixes. Segment C consists of consumers who are not consistent buyers; targeting these consumers could prove a loss for the company. -(Scenario 6-2)The consumers of segment A can be classified as      .

Scenario 6-1 Headquartered in Boston, Gillette is a world leader in male grooming, a category that includes blades, razors, and shaving preparations. Several years ago, Gillette announced the 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 were Venus Vibrance, the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporated technological and design enhancements to better address the specific shaving needs of women, and will build on current market segments. More recently the company has launched Venus Embrace, the first five-blade women's razor, with the tagline, "Reveal the Goddess in You." According to its website, at one point there 40 million women using Venus products. -(Scenario 6-1)The position for any one market segment should: 

Scenario 6-4 Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and accessories, which they named 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 seniors liked them because they became the focus of a hobby. The professionals did not buy them for any reason other than décor. -(Scenario 6-4)The Plantatarium sends out direct mail offers to consumers in a nearby zip code who have household incomes of greater than $60,000 a year.This is an illustration of a ________ strategy.

What are the disadvantages of the heavy-user strategy?

_____ is a term that advertisers created in the mid-1960s to refer to a form of research that emphasizes the understanding of consumers' activities,interests,and opinions.

Scenario 6-4 Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and accessories, which they named 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 seniors liked them because they became the focus of a hobby. The professionals did not buy them for any reason other than décor. -(Scenario 6-4)A small group of customers have mentioned that they would like to browse through several varieties of cactus,so the Garretts have decided to devote a small corner exclusively to rare cacti.These customers constitute an example of: 

What is a value proposition? Explain why it is useful-even critical-to an organization,its brand,its team,and its target audience.

Scenario 6-3 Keds has been 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. But over time, competition from Sam & Libby and Easy Spirit brands has been nipping at the heels of Keds. As part of its effort to revitalize the brand several years ago, Keds' advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother saying, "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 6-3)The copy for this campaign features moms and daughters commenting on their close relationships,and Brandweek magazine said that the new Keds ads "really go for the heart." This points to the campaign's focus on 

Scenario 6-4 Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and accessories, which they named 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 seniors liked them because they became the focus of a hobby. The professionals did not buy them for any reason other than décor. -(Scenario 6-4)To attract the ______ in the market,the Plantatarium offers a punch card that rewards buyers with a $10 discount each time they purchase $190 worth of plants and other goods from the store.

Scenario 6-5 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 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 in which 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 (100seats total)"Kingpin Club" - participants in local recreation bowling leagues - guaranteed bleacher seats for $10.00 to anymatch (100 seats total)"Alleycat Club" - students who have maintained a 3.9 GPA or better - guaranteed bleacher seats for $1.00 to any match (100 seats total) -(Scenario 6-5)Based on the planned schedule described here,students who have maintained a 3.9 GPA would be described as one of the bowling team's: 

Demographics are used to describe or profile target segments and may include gender,age,education,and income range.

In STP marketing,the term          refers to an attempt to give a brand a certain meaning relative to its competitors.

Some advertisers try to use approaches to reach the green consumer segment 

Which of the following is true of segment selection? 

Scenario 6-2 Sunshine Meals Inc. is a company that sells breakfast foods such as cereals, pancake mixes, etc. The company conducts a study to segment its consumers. It finds that segment A consists of a small group of individuals who purchase four boxes of the brand's cereal every week. The average user consumes one box every week. It targets segment A by providing them with samples of other Sunshine products with the purchase of one box.Segment B consists of a large number of college students and individuals who have recently begun living on their own, and require readymade mixes as their breakfast solution. It targets these consumers by providing more variety with pancakes and waffle mixes. Segment C consists of consumers who are not consistent buyers; targeting these consumers could prove a loss for the company. -(Scenario 6-2)If Sunshine Meals Inc.begins producing a range of sugar-free marmalades to target a small segment of health-conscious consumers who would be willing to pay a premium price for products appropriate for their diets,this would be an example of: 

A fast-food restaurant is attempting to position itself as the best choice when you're in a hurry because it serves customers within 100 seconds.To maintain internal consistency,the firm might take all of the following steps below,EXCEPT for which one?