Exam 5: Target Market Segmentation and Evaluation

Market segment profiles help a marketer determine which segments are most attractive relative to a firm's strengths, weaknesses, objectives, and resources.

Lucy always wanted to live in downtown San Francisco. For 10 years she has worked as a manager at an investment banking firm, where she is well paid. However, the most affordable condo is still more than $1 million more than she wants to pay. Although Lucy has the money to purchase the condo, she cannot justify to herself paying so much money for one person-even for a condo in the middle of downtown San Francisco. Lucy ______ part of the market for condos in downtown San Francisco because she ___________________ to buy.

Age, rate of product use, location, and gender are all examples of common

Systems such as Acorn and PRIZM provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid

Taco Bell has been very inventive in partnering with companies such as Frito-Lay to create new menu items. Recently Taco Bell developed the Nacho Cheese Doritos Locos Tacos, a Taco Supreme® made with premium seasoned beef, crisp lettuce, diced juicy red ripe tomatoes, real cheddar cheese, and topped with cool reduced-fat sour cream, in a shell made from Nacho Cheese Doritos® Chips. Prior to the partnership and roll-out of the product throughout the Taco Bell system, a ________was conducted where several "test" stores carried the products for a limited time and Taco Bell and Frito-Lay could measure the actual sales to gauge the strength of the brand and opportunity for success.

An undifferentiated targeting strategy does not target a single market with one marketing mix.

Describe the variables used to segment business markets, and provide at least one example of each.

The amount of product a company expects to sell during a specific period at a specified level of marketing activity is called the

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?

Marketing managers have several choices in selecting a targeting strategy. Kristin Minks is a marketing manager with a craft bourbon distiller in Kentucky and knows that there are many different types of bourbon drinkers. However, she concentrates her marketing on the enthusiast or high-involved bourbon drinker who often enjoys a bourbon beverage before or after dinner, reads magazines to keep up with the craft bourbon industry, and is a member of their e-mail list and subscriber to the company's blog. Kristin knows that this segment of bourbon drinkers will consume more bourbon, be more likely to engage in positive word-of-mouth about the brand, and will also be more likely to purchase accessories such as glassware or T-shirts. Kristin is most likely utilizing the _____ targeting strategy, employing just one marketing mix and focusing on one target market segment.

A segmentation variable is used to group smaller markets into one larger market.

Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income. Kelly's Kids is using ____ variables to segment its market.

Seventh Generation is a company producing products that limit the amount of negative impact on the environment. Its product line includes dishwashing liquid, toilet paper, paper towels, baby wipes, and laundry detergent, to name a few. Seventh Generation is now interested in producing a new line of clothing, mostly T-shirts, shorts, and long pants for both men and women. Its research indicates that they should use psychographic segmentation in their marketing strategy. Which group of segmentation variables will Seventh Generation be using?

The size of the market potential places limits on the size of the company sales potential.

If Campbell were to offer single-serving "Soup for One" packages to household markets, it would be using segmentation based on

In order for the marketer to achieve effective market segmentation, which of the following conditions must exist?

A market segment profile may cover such aspects as demographic characteristics, geographic factors, product benefits sought, lifestyles, brand preferences, and usage rates.

When selecting specific target markets, a firm should

Which of these statements is not true about business markets?

Hasbro views the toy market as composed of four age groupings, each with different needs and desires. Hasbro is using a(n) ____ targeting strategy for its groups, which are known as _____.