Exam 8: Segmenting and Targeting Markets

A product's positioning could be based on product users.

The James Hardie Siding Company sells concrete siding.It was having little luck targeting contractors because concrete siding is difficult to install and shows every flaw if a house is incorrectly framed.So Hardie decided to target homeowners who wanted the security of knowing their siding was guaranteed not to rot or crack for 50 years.In terms of psychographic segmentation,the siding company used the _____ variable.

The Belly Cast kit by Proud Body helps an expectant mom to make a cast of her pregnant body,decorate it and keep it for a lifetime.The primary market segment for the Belly Cast kit is:

What is PRIZM?

Zatarains offers packaged spice mixes for jambalaya,gumbo,and red beans and rice. Consumers can buy the product in the store,so Zatarains sells individual household-size packages to resellers. It also sells institutional-size packages to military bases,schools,restaurants,and other large organizations.The marketers of Zatarains would most likely segment the business market according to:

A number of plastic surgery groups in Great Britain are making use of loyalty cards.Patients who have five procedures performed at their offices will receive either a free procedure or a discount off another more complex surgical procedure.Aimed at patients who get maintenance treatments such as Botox or regular face peels,the loyalty cards may be used toward any type of surgical procedure.This is an example of segmentation by:

Explain what is meant by positioning and describe the bases marketers use to position products and services.

_____ is 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.

The place a product,brand,or group of products occupies in consumers' minds relative to competing offerings is referred to as a product's:

_____ is the development of a specific marketing mix to influence potential customers' overall perception of a brand,product line,or organization in general,and is related to the place a product occupies in consumers' minds relative to competing offerings.

Home Cookin' Catering would like to improve customer satisfaction and increase repeat business.When you ask the owners to describe a typical customer,they say it is impossible and explain that with corporate functions,family affairs,and fund-raisers,they do not have a typical customer.You suggest it is time for market segmentation because:

Mercedes-Benz Daimler AG, the maker of Mercedes-Benz automobiles, is planning to launch a new line of downsized luxury vehicles in the United States by 2012. Daimler has experienced a recent drop in global sales attributed to its product mix that focuses on larger luxury automobiles. With increasing fuel prices and stricter U.S. fuel-economy standards coming down the pipeline, Daimler doesn't want to be left behind. Daimler is behind its competition, though. Its German rivals, Audi and BMW, have been relatively successful in the U.S. BMW"s Mini Cooper, demanding as much as $34,000, has already driven away with some of Daimler's potential sales. While Daimler already offers the Smart car in the U.S., the new offerings will not be going after the same consumers. -Refer to Mercedes-Benz. Daimler plans to introduce the downsized luxury vehicles in major U.S.cities,such as Los Angeles,New York,Miami,Atlanta,Dallas,and Chicago,because market research has shown that these metropolitan areas have the greatest potential with respect to the consumers able to purchase a $30,000+ smaller luxury vehicle. Which type of psychographic segmentation does this represent?

A market is people or organizations that have:

Dakin Farms in Vermont uses mass marketing.Marketers would call the strategy an undifferentiated targeting strategy.

A potential disadvantage of multisegment targeting is _____,which occurs when sales of a new product cut into sales of a firm's existing products.

Candace Popwell makes and markets Festive Holiday Truffles candy.The confectionary company owner views the world as one big market with no individual segments and tries to reach it with only one marketing mix.Her essentially mass-market philosophy indicates she probably uses a(n)_____ strategy.

Fisher-Price developed a rugged,waterproof camera for children.This product uses _____ segmentation.

All of the following are bases for psychographic segmentation EXCEPT:

To be successful,most businesses focus on customer service.However,the cable industry has a history of poor customer service.Cable companies are facing competition for TV customers who once had no choice but cable if they wanted to see more than local programs.In the face of this competition from direct broadcast satellites,cable companies are trying to use a _____ strategy to show that they have become customer-oriented.

Firms can be categorized by the type of purchasing strategy used._____ consider numerous,even unfamiliar suppliers and solicit and analyze options.