Exam 8: Segmenting, Targeting, and Positioning

What is the term for the segmenting of markets based on the region of the country or the world, market size, market density (number of people within a certain unit of land), or climate?

Once a marketer is aware of all possible segmentation variables, choosing which variables to use is a simple, scientific process.

A group of high school students stop by a sporting goods store. The store has just received a new shipment of high-end racing bicycles. The bicycles range in price from $1,200 to $3,000. All of the students want one of these new bikes, but none has the means to buy one. Is this group of consumers a potential market for the expensive bikes?

Canon Cameras has developed a new camera for baby boomers with a fewer options and larger buttons. What would these baby boomers be to Canon?

Mirage Resorts in Las Vegas has a system that allows hotel clerks instantaneous access to a client's gambling history to determine what sort of room or complimentary services will provide the guests with the highest level of service. What is the resort practising?

You would expect to find more stores targeting hunters in Northern Ontario than in Southern Ontario because hunting is a more popular pastime in rural areas than urban. A national chain of sporting goods stores would likely use which type of segmentation when stocking hunting merchandise?

What is the basic goal of one-to-one marketing?

Ten Thousand Villages is a nonprofit retail store that sells gift items made by artisans from over 30 different countries. This store provides employment to craftspeople in developing nations and markets their handiwork at a fair price. The store defines its market segment as people who believe in helping others and who feel good about helping others whenever possible. Which type of segmentation does the store use?

The city of Blossom Valley has a job training program for the homeless but has had a difficult time reaching this group with information about the program even though radio and television stations have provided public service advertisements free of charge. This illustrates a segmentation problem with which of the following?

The business market consists of four broad segments. They are producers, resellers, governments, and regions.

Which of the following proposes that a minority of a firm's customers purchase a majority of the volume of the product?

With multisegment targeting, which of the following could a company benefit from?

Discuss why market segmentation is important to the well-being of most companies.

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?

The Play It Again Sports chain carries all kinds of sports equipment at much lower prices than the typical sporting goods store. Typically, merchandise sold in the store has little, if any, wear. By being both a way for people to get rid of unwanted equipment and a source of new-to-you equipment, what is Play It Again Sports emphasizing?

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.

What is one advantage of using a concentrated targeting strategy?

Tall Paul's Tall Mall is the only furniture manufacturer that makes furniture to meet the needs of people who are over 198 cm tall. These people find furniture designed for average-sized people to be cramped and uncomfortable. Which type of segmentation does Tall Paul's use?

What is geographic segmentation? Name four reasons that a company would use a regional marketing approach. Then give a specific example of a company marketing its product(s) regionally.

A firm's marketing mix is intended to bring about a mutually satisfying exchange relationship with a market.