Exam 3: Market Segmentation and Strategic Targeting

Demographic variables can reveal ongoing trends that signal business opportunities,such as shifts in age,gender,and income distribution.

________ consist(s)of activities,interests,and opinions,which are mostly attitudes toward various issues,and cannot be classified according to standardized definitions.

Consumers' characteristics can be classed as either consumer-rooted or consumption-specific.In this context,consumption-specific features are attitudes and preferences toward specific products or buying situations.Examples of consumption-specific features include ________.

The largest age segment in the U.S.population is ________,76 million consumers born between 1946 and 1964.

In counter segmentation strategy,a company seeks to discover a more generic consumer need that would apply to the members of two or more segments and recombine those segments into a larger single segment that can be targeted with an individually tailored product or promotional campaign.

Marketplace decision difficulty - an attribute depicting one's hardship in making buying decisions - is more typical of older,less-educated consumers.

The theory behind geographic segmentation is that ________.

Education,occupation,and income tend to be closely correlated.

The most popular segmentation system combining lifestyle and values is ________.

Beyond flavor and the presence or absence of sugar,Nicorette offers a gum that will whiten your teeth while satisfying your nicotine craving and helping you quit smoking.This gum has been positioned on the basis of ________.

Marketers of many products such as soup,laundry detergent,beer,and dog food have found that a relatively small group of heavy users accounts for a disproportionately large percentage of the total product usage.Targeting these heavy users specifically is an example of ________.

Lifestyles,also known as ________,consist of activities,interests,and opinions.

A company that employs a mass marketing strategy typically offers a variety of specialized products.

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,the museum's approach to promoting its new children's programming is best described as ________.

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,providing museum members with special perks associated with heavy museum use is an example of a(n)________.

Explain how segmentation and targeting can work to the advantage of small players in industries dominated by large companies.

Catering to the distinct needs of consumers by offering them clearly differentiated products is significantly more profitable than mass marketing because it is significantly less expensive.

In the VALS typology,achievers are motivated by achievement and tend to have high resources.They have goal-oriented lifestyles that center on family and career.This segment tends to prefer ________.

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 is surprised to see that many of its Adventure Cruise guests are retired empty nesters with disposable income and an interest in travel.These consumers are most likely members of ________.

Trends in the markets,such as shifts in age,gender,and income distribution,are often detected through ________ information.