Exam 8: Market Segmentation, Targeting, and Positioning

What should a firm do before beginning the market segmentation process?

Generation X is family oriented, educated, and less likely to define themselves by their careers alone than previous generations.

Market segmentation attempts to isolate traits that distinguish a certain group from the overall market, as well as seeking to pinpoint factors affecting their buying behaviour.

Five years ago, Joshua spent 28 percent of his $45 000 yearly income on his bachelor apartment.Today, Joshua is earning $60 000 annually.According to Engel's laws, what percentage of income will he spend on his new apartment?

What is one of the two largest metropolitan areas in the world?

What interactive medium might help micromarketers boost the effectiveness of their strategy by tracking specific demographics and communicating directly to individuals who are MOST likely to buy that product?

Match each item to the statement or sentence listed below. a.target market b.market segmentation c.cohort effect d.census metropolitan area (CMA) e.differentiated marketing f.concentrated marketing g.micromarketing h.positioning map i.VALS j.AIO statement k.core region l.consumer product m.demographic segmentation n.80/20 principle o.psychographic segmentation p.geographic information system (GIS) -A geographic area that generates 40 percent to 80 percent of a company's sales is called a(n) _____. 2.A product that is purchased for use by an individual is called a(n) _____. 3.The division of a market into smaller, relatively homogeneous groups is called _____. 4.is a psychographic segmentation system based on two key concepts: resources and self-motivation. 5.defines consumer groups according to variables such as gender, age, income, occupation, and stage in the family life cycle. 6.A(n) _____ creates a graphical illustration of consumers' perceptions of competing products. 7.is a geographic area surrounding an urban core with a population of at least 100 000 or more. 8.With _____, a company focuses its efforts on profitably satisfying a single market segment. 9.focuses on producing several products and using different marketing mixes designed to satisfy smaller segments. 10.A computer system that can tie location data to market data is called a(n) _____. 11.A(n) _____ is a specific segment of consumers or businesses that are most likely to purchase a company's product. 12.describes an activity, interest, or opinion that allows researchers to develop lifestyle profiles. 13.The _____ occurs when a generation of individuals are impacted by current events during the formative years of 17 to 22. 14.is the targeting of a market based on a single variable level such as postal code, occupation, medical condition, or past purchase. 15.The idea that a small number of loyal consumers will generate the majority of a firm's revenue is called the _____. 16.Dividing a population into similar values, beliefs, and lifestyles is called _____.

Which of the following statements is NOT true regarding socioeconomic market segmentation?

When a consumer product such as toilet paper is sold in bulk quantities to businesses, the paper products company is involved in micromarketing.

Based on the MOST recent census data, where does 68 percent of the Canadian population live?

A marketing segmentation strategy aimed at women is unlikely to work because women are too diverse a group.

One of the main sources for demographic data in Canada is Statistics Canada.

The number and size of the market segments chosen by a firm must match, not exceed, its marketing capabilities.

Currently, the two largest cities in the world are Shanghai, China, and Bombay, India.

Application of the geographic information systems may prove to be a sound investment for companies because it allows them to better plan the logistics of delivery, transportation, and warehousing, ensuring that valuable capital is not tied up in inefficiently placed assets.

What is the MOST common method of market segmentation?

Compared with other ethnic groups, Chinese Canadians represent the ________ ethnic group in Canada, and are a more ________ segment.

What are the basic requirements or criteria for effective market segmentation?

The market segmentation process must consider the size and purchasing power of market segments.

Sociologists attribute differences in needs and wants between age groups to the cohort effect.