Exam 7: Segmenting, targeting, and Positioning

You are the marketing manager for a food products firm.Your firm would like to introduce a new beverage to the marketplace.You have determined that two important dimensions for positioning a product are (1)nutritional value and (2)age orientation.Place the following beverages on the perceptual map provided: coffee,orange juice,diet cola,apple cider,mineral water,milk,herbal tea,liquor,tomato juice.Assuming the listed beverages comprise all competitive beverages,what position should your firm's new beverage have? Describe the new beverage.

Clorox targets individuals who buy lots of cleaning products (heavy users).Some of these users are mainly interested in cleaning bathrooms,while others are more concerned with kitchen cleanliness.Clorox doesn't approach these two groups differently but addresses both types of people as heavy users.This is an example of how companies use benefit segmentation.

ProtecTV is a product that selectively mutes words and phrases some people find objectionable.It can be connected to a television,VCR,DVD player,or satellite TV system.The manufacturer of ProtecTV targeted parents who did not want their children exposed to what they consider to be offensive language. -Refer to ProtecTV.What demographic segmentation variable has its manufacturer used to identify its target market?

When Holiday Inn used the slogan,"Pleasing people the world over," it was relying on demographic segmentation.

Ol' Roy (the Walmart store brand)dry dog food is sold at minimal cost with no promotion.Kal-Kan Foods markets Pedigree dry dog food and spends time and money to develop ads to show the relationships between dogs and their owners.Since the two companies' products provide the same level of nutrients to dogs,these products are undifferentiated.

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 the Bay 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.How can the groups identified above as strong wrestling fans be described?

Almost all cell phones sold in Canada are sold at subsidized prices,with expensive plans.Almost all cell phones sold in Europe are sold at full price with cheaper plans.A cell phone manufacturer knowing this information could use which type of segmentation when selling its phones internationally?

While still marketing traditional antacids,pharmaceutical firms have introduced new over-the-counter antacids that block the production of stomach acids.(Traditional antacids treat heartburn by neutralizing stomach acid. )If sales of the new acid blockers reduce sales of the traditional antacids,what has occurred?

What is a market segment? Why do companies engage in market segmentation?

What is geodemographic segmentation? What is the result of geodemographic segmentation? Give one specific example that illustrates this type of segmentation.

Disney is offering to print story books about your child.Each 30-page book will be personalized throughout based on information the parents provide.These books are based on the child's favourite Disney movies.For $20 a month,a new book will be created each month just for your child.What is this an example of?

A market segmentation study done classified recreational skiers in terms of their gender,age,and educational levels.The study used demographic segmentation variables.

According to the textbook,what is one of the potential disadvantages associated with a multisegment strategy?

What do marketers use to segment markets because this information is widely available,and factors such as age or gender are often related to consumer purchasing and consumption behaviour?

Women have been treated as second-class citizens by the sporting goods industry,but in 2002,sporting goods manufacturers and retailers began aggressively pursuing this market.Nike opened two women-only boutiques called Nike Goddess to test how receptive women are to its new merchandising concepts.Which type of demographic segmentation is the sporting goods industry using?

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 the Bay 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.Prior to the 1990s,professional wrestling tried to compete as a legitimate sport just like football and baseball.Now it uses the term "sports entertainment" when talking about what it is marketing to its fans.Which type of strategy is being implemented?

Marketers use demographic information to segment markets because it is widely available and often related to consumers' purchasing and consumption behaviour.List four common bases used by marketers for demographic segmentation.For each base listed,give an example of a product specifically targeted to the needs and wants of the segment identified within the base.

For many years,if car owners wanted to make sure they would not be stranded if their car broke down,they became members of the Canadian Automobile Association (CAA).Members also received discounts at CAA & AAA (American Automobile Association)-affiliated hotels and motels as well as access to maps and a trip planning service.Recently,a new company offering the same services has come on the market.Better World Travellers Club (BWTC)is competing against CAA by offering the same roadside assistance as CAA and at the same time,pitching a go-green philosophy.The company is diligently courting the environmentally conscious traveller.BWTC has agreed to donate 1 percent of club revenues to environmental organizations that seek to reduce the use of fossil fuel and fight global warming.In addition,its members receive discounts on travel to remote wilderness retreats,world-class eco-resorts,and "green" hotels (those that utilize energy-efficient practices). -Refer to Better World Travellers Club.Because BWTC has chosen to concentrate its efforts on environmentally conscious travelers,it can be said to have done which of the following?

The marketing researcher for Chickadee,a manufacturer of designer clothing for infants and toddlers,has submitted a report on potential segments for expansion of its marketing efforts.She noted an increase of professional women over the age of 35 who are leaving their jobs to have their first babies.She described this segment as having substantiality.What does this mean?

General Mills offers a deal where its cereal users can collect box tops and submit them to General Mills to earn money for their children's schools.This program,called the Box Tops for Education Program,is a means of changing light users into heavier users.Which form of segmentation is this?