Exam 3: Market Segmentation and Strategic Targeting

Every segment that can be identified is inherently viable and profitable as a basis for targeted marketing.

Most marketers prefer to target consumer segments that are relatively stable in terms of demographic and psychological factors and needs that are likely to grow larger over time.

CRUISE MINI CASE: Sunshine Cruise Lines is a cruise operator that offers three- to seven-day cruises along five Caribbean routes. It has developed a reputation as a party cruise operator and the majority of its revenue comes from vacationing college students. This type of customer demand is highly cyclical, and Sunshine finds that repeat purchase is high while its consumers are in college, but practically disappears after graduation. In an effort to encourage its customers to continue taking Sunshine Cruises after they have graduated, the cruise operator has begun offering Adventure Cruises, with port stops on islands known for eco-tourism and biodiversity, both on land and off shore, appealing to young professionals who like to hike and scuba dive or snorkel. In contrast to its party cruises, Sunshine focuses its marketing message for Adventure Cruises on activities at port stops and the convenience of being able to explore several Caribbean destinations from the comfort of a single ship. Adventure Cruises are roughly 15% more expensive than party cruises, priced to discourage a raucous college-age party crowd, and do not allow children under 18. The first season of Adventure Cruises was a great success and, much to Sunshine's surprise, attracted not only the intended young professional crowd, but also many empty nester couples that were looking for a reasonably priced, active vacation. -In the CRUISE MINI CASE,Sunshine specifically markets its party cruises to college students in January and February in anticipation of spring break.This is an example of ________.

Identify and discuss the four criteria that make market segments effective targets.

Research has shown that 25 to 35 percent of beer drinkers account for more than 70 percent of all beer consumed.This is an example of ________ segmentation.

Often marketers target consumers who are known to be brand switchers,in belief that such people represent greater market potential than consumers who are loyal to competing brands.

The behavioral component of brand loyalty involves ________.

A college that decreases the number of courses it offers as a result of under-enrollment in in-depth courses by combining those in-depth courses into one single course is engaging in ________.

MUSEUM MINI CASE: Central City Art Museum is looking to increase museum revenues by trying to draw more people to the museum.Research has shown that the most frequent users of the museum are over 55 years old, have college degrees, and have a household income of over $100,000.Less frequent users of the museum have the same education and income profile as frequent users, but tend to be younger, between 35 and 55.Surveys suggest that these younger adults would use the museum more frequently, but have do not have enough time due to the demands of their children and families.In order to increase museum entrance revenues, the administrative team wants to attract people who are likely to become heavy users of the museum when they get older, and try to bring them into the heavy user category at an earlier age.In an effort to encourage heavy museum use, the museum has begun a membership program that offers discounts on museum entrance and gift shop purchases and special exhibit preview events for members.The museum has also begun to offer free children's art and museum appreciation classes on weekend afternoons that will allow younger adults to drop their children off once a week and then enjoy the museum's exhibits and café. In order to promote its new children's programming, the museum acquired an address list of local households with children, including the ages of those children, and intends to send tailored messages specifically highlighting programming that is age-appropriate for each household's children. -In the MUSEUM MINI CASE,segmenting families based on the age of their children constitutes a ________ segmentation basis.

MUSEUM MINI CASE: Central City Art Museum is looking to increase museum revenues by trying to draw more people to the museum.Research has shown that the most frequent users of the museum are over 55 years old, have college degrees, and have a household income of over $100,000.Less frequent users of the museum have the same education and income profile as frequent users, but tend to be younger, between 35 and 55.Surveys suggest that these younger adults would use the museum more frequently, but have do not have enough time due to the demands of their children and families.In order to increase museum entrance revenues, the administrative team wants to attract people who are likely to become heavy users of the museum when they get older, and try to bring them into the heavy user category at an earlier age.In an effort to encourage heavy museum use, the museum has begun a membership program that offers discounts on museum entrance and gift shop purchases and special exhibit preview events for members.The museum has also begun to offer free children's art and museum appreciation classes on weekend afternoons that will allow younger adults to drop their children off once a week and then enjoy the museum's exhibits and café. In order to promote its new children's programming, the museum acquired an address list of local households with children, including the ages of those children, and intends to send tailored messages specifically highlighting programming that is age-appropriate for each household's children. -In the MUSEUM MINI CASE,dividing museum attendees into frequent users,less frequent users,and non-users is known as ________.

Consumers' characteristics can be classed as either facts or cognitions.In this context,facts can be determined from direct questioning and categorized by a single objective measure.Examples of facts include ________.

Home Depot uses its individual customer purchase history to design customized ads.This is an example of ________.

CRUISE MINI CASE: Sunshine Cruise Lines is a cruise operator that offers three- to seven-day cruises along five Caribbean routes. It has developed a reputation as a party cruise operator and the majority of its revenue comes from vacationing college students. This type of customer demand is highly cyclical, and Sunshine finds that repeat purchase is high while its consumers are in college, but practically disappears after graduation. In an effort to encourage its customers to continue taking Sunshine Cruises after they have graduated, the cruise operator has begun offering Adventure Cruises, with port stops on islands known for eco-tourism and biodiversity, both on land and off shore, appealing to young professionals who like to hike and scuba dive or snorkel. In contrast to its party cruises, Sunshine focuses its marketing message for Adventure Cruises on activities at port stops and the convenience of being able to explore several Caribbean destinations from the comfort of a single ship. Adventure Cruises are roughly 15% more expensive than party cruises, priced to discourage a raucous college-age party crowd, and do not allow children under 18. The first season of Adventure Cruises was a great success and, much to Sunshine's surprise, attracted not only the intended young professional crowd, but also many empty nester couples that were looking for a reasonably priced, active vacation. -In the CRUISE MINI CASE,Sunshine markets Adventure Cruises as a way to see multiple islands from the comfort of a single ship,alleviating the hassle of flying between islands and staying in a different hotel every couple of nights.Targeting consumers who view this convenience as appealing is an example of ________.

CRUISE MINI CASE: Sunshine Cruise Lines is a cruise operator that offers three- to seven-day cruises along five Caribbean routes. It has developed a reputation as a party cruise operator and the majority of its revenue comes from vacationing college students. This type of customer demand is highly cyclical, and Sunshine finds that repeat purchase is high while its consumers are in college, but practically disappears after graduation. In an effort to encourage its customers to continue taking Sunshine Cruises after they have graduated, the cruise operator has begun offering Adventure Cruises, with port stops on islands known for eco-tourism and biodiversity, both on land and off shore, appealing to young professionals who like to hike and scuba dive or snorkel. In contrast to its party cruises, Sunshine focuses its marketing message for Adventure Cruises on activities at port stops and the convenience of being able to explore several Caribbean destinations from the comfort of a single ship. Adventure Cruises are roughly 15% more expensive than party cruises, priced to discourage a raucous college-age party crowd, and do not allow children under 18. The first season of Adventure Cruises was a great success and, much to Sunshine's surprise, attracted not only the intended young professional crowd, but also many empty nester couples that were looking for a reasonably priced, active vacation. -In the CRUISE MINI CASE,of the eight VALS segments,Sunshine is most likely targeting ________ with its new adventure Cruises.

The primary advantage of mass marketing is ________.

The greeting card industry capitalizes on occasions to sell products; this is a perfect example of ________ segmentation.

RENTAL CAR MINI CASE: Rosetta Car Rental operates car rental lots at airports nationwide.It specifically targets vacationers and advertises in travel magazines and through travel web sites with a campaign that emphasizes its quality customer service and well-maintained cars.Rosetta stocks its lots based on a number of factors, including climate and the type of activities it expects its renters to undertake.For example, Rosetta stocks more convertible cars in its warm California lots than in New York.Its Colorado lots stock a large number of station wagons, vans, and SUVs to accommodate skiers and snow-boarders and all their gear. -In the RENTAL CAR MINI CASE,segmenting consumers on the basis of their purpose for travel is an example of a ________ segmentation basis.

When Henry Ford introduced the Model T,the first affordable,mass-produced car,he stated that consumers "can have a car in any color they want,as long as it is black." Offering the same product to all consumers in this fashion is known as ________.

Why is family life cycle an important basis for segmentation?

Teenagers around the world tend to want products that are trendy,entertaining,and image oriented,regardless of where those teens live.This is an example of ________.