Exam 8: Segmenting and Targeting Markets

A _____ is a group of people or organizations that has wants and needs that can be satisfied by particular product categories,has the ability to purchase these products,and is willing to exchange resources for the products.

Which criterion of useable market segments means the firm must be able to reach members of targeted segments with customized marketing mixes?

Define cannibalization.Is it always bad? Explain.

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.Baby boomers have money to burn and will be the primary target for the downsized,luxury vehicles offered by Mercedes. Many of them will want this type of car to feel young again. This group is considered a _____.

Stouffer's offers gourmet entrees for one segment of the frozen dinner market and Lean Cuisine for another segment that wants both good taste and low calories.When Stouffer's chose to serve two well-defined market segments and develop distinct marketing mixes for each,it was implementing a(n)_____ strategy.

General Mills offers a deal where its cereal users can collect box tops and submit them to General Mills to earn money for their children's schools.This program,called the Box Tops for Education Program,is a means of changing light users into heavier users.In other words,it is a form of _____ segmentation.

_____ is the process of grouping customers into market segments according to what is sought from the product.

When a firm serves two or more well-defined market segments with a distinct marketing mix for each,it is using a(n)_____ targeting strategy.

The Hispanic American market is best treated as a single segment.

One reason marketers use market segmentation as a tool is that once completed,the process need not be repeated.

Almost all cell phones sold in the United States sold are black or gray.Almost all cell phones sold in Europe are colorful,and very few black phones are sold.A cell phone manufacturer knowing this information could use _____ segmentation when selling its phones internationally.

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

A manufacturer of lenses used in microscopes,binoculars,and telescopes has segmented its market into scientific equipment manufacturers,sporting equipment manufacturers,and retailers who sell replacement lenses.In order for this segmentation scheme to be successful,all of the following criteria must be met EXCEPT:

_____ is the process of dividing a market into meaningful groups that are relatively similar and identifiable.

The process of market segmentation involves breaking down a heterogeneous market into homogeneous and identifiable segments.If this process is carried to its extreme,then one could say that:

Thompson Pools installs and maintains swimming pools.They group their customers according to their needs: new installs,regular maintenance,and frequent product consumers.When do they need a new segmentation analysis?

A(n)_____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have relatively similar product needs.

While most marketing to Generation Y tries so hard to be hip that it borders on parody,Vans has kept the decades-old brand real and vital for Gen Yers.Marketing programs the footwear manufacturer uses to reach Gen Yers include the Vans Skate Parks,which operate in malls around the country; the wildly successful Vans Warped Tour for alternative music; and the Vans Triple Crown,the brand's answer to the X Games.The segmentation plan used by Vans relies heavily on _____ segmentation.

Turkey Hunting Equipment Around the beginning of fall each year, about 2.7 million turkey hunters all over the United States start looking at catalogs for the perfect item to guarantee that this year they will kill a wild turkey, the most elusive game bird on the North American continent. The devoted turkey stalker can stock up on everything from camouflaged turkey hunting socks, turkey license plate holders, vests with huge pockets for toting dead birds, and hunting videos to turkey decoys, turkey earrings, and turkey callers. Neil Cost is considered the best manufacturer of turkey callers in the world. It is his only product, and each is highly prized by turkey hunters. It is not unusual for a turkey hunter to pay $5,000 for one of Cost's callers. -Refer to Turkey Hunting Equipment.Segmenting a market based on the fact that people who enjoy hunting typically exhibit a particular lifestyle is an example of _____ segmentation.

To be useful,a segmentation scheme must produce segments that meet four basic criteria.Name and briefly describe each of these four criteria.