Exam 8: Segmenting, Targeting, and Positioning

ThermaCare air-activated heat wraps are to be wrapped around sore muscles and joints. The product is advertised as a powerful pain reliever and a source of deep muscle relaxation. Its soothing warmth can work at night while you sleep to restore your body. Which type of segmentation is the manufacturer of ThermaCare heat wraps using?

Which of the following identifies correctly how often market segmentation should be done?

Segmentation by customer type occurs when business marketers segment their markets by income, occupation, and educational variables.

Jane Roman, a regional manager forChapters, used the company's customers' ages, genders, income levels, lifestyles, and the manners in which they consumed books to divide the reading market. What are these characteristics known as?

Which of the following can market segmentation assist marketers to do?

Define cannibalization and product differentiation. How can product differentiation help avoid cannibalization?

When Procter & Gamble (P&G) introduced Liquid Tide to a new segment, consumers in the traditional powdered detergent segment switched to the liquid product. Rather than real sales growth, P&G simply experienced the shifting of existing customers to a new product. This exemplifies a drawback of multisegment targeting strategy. What is it called?

John Sichner, editor and publisher of Beverage Digest, a trade journal for beverage producers, wrote, "In this day and age, one product can't be the answer for all consumers." What was Sichner opposing the use of?

The Mammoth Company is the largest provider of utilities in a region. It has also been accused of being the biggest source of industrial air pollution in the area. The Mammoth Company is trying to change consumer perception of the company by sponsoring a series of television programs on how to preserve our environment. What is the company hoping the programming will lead to?

You are the president of a new, capital-rich firm and you must decide on your firm's targeting approach. Three large subgroups exist in your market that have never had their unique needs served. If you don't act now, others will seize the opportunity. What should you use?

DCS designed an excellent line of specialty barbecues, had good distribution, used effective promotion with its market, and within four years had a respectable market share. Yet financial losses every year have caused DCS to drop this line. What might this market segment, relative to the resources devoted to it, have lacked?

Georgia Pacific and Mitchell Gold are two companies that have implemented and maintained marketing mixes designed to meet the needs of lesbians and gays. To these companies and others, lesbians and gays are desirable customers. How would they be best classified?

The advertisements for Torengos tortilla chips that come in cans like Pringles deliberately compare the product to Frito-Lay's Tostitos tortilla chips and ask if you really prefer broken chips. What is Torengos being positioned by?

June LaVista owns a health and fitness gym. After dividing her customers into four segments based on income range, age, level of fitness, and other selected segmentation descriptors, she wrote out a description of each segment's size, expected growth, frequency of exercise, and overall profit potential. What did LaVista engage in?

Markets can be segmented using a single variable (such as gender) or by several variables in combination (such as gender, age group, and education). While multiple-variable segmentation is more descriptive and precise than single-variable segmentation, it has several disadvantages. Name three disadvantages of multiple-variable segmentation.

For a successful market segmentation, one marketing mix cannot be used for another market segment.

To position a product, a manufacturer must develop a marketing mix to influence potential consumers' overall image of that product.

You are given the following limited information about a market consisting of ten people. Describe all the possible ways to segment this market.Gender Income Male Medium Female Low Female Low Male High Female Low Male Low Male Medium Male High Female High Female High

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

Scenario 8-1 E&V Bridal Studios is a wedding consulting business designed to appeal to East Asians. At one time it used the same marketing mix for all of its customers, but it has discovered that it needs a different marketing mix to appeal to its ethnic customers.E&V studios are located in urban areas such as Toronto and Vancouver. -Refer to the scenario. What type of segmentation strategy does the wedding consultant use?