Exam 8: Segmenting and Targeting Markets

The 80/20 principle implies that the majority of all demand is due to a minority of the customers.

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.Wild turkey hunters would be defined as a:

Company characteristics,such as geographic location,type of company,company size,and product use,can be important segmentation variables.

Fisher-Price developed a line of toys for infants in China.Babies make up the market for these products.

A market segmentation study done by the University of Thessaly in Greece classified recreational skiers in terms of their gender,age,and educational levels.The study used psychographic segmentation variables.

All of the following are criteria for successful market segmentation EXCEPT:

Describe psychographic segmentation and discuss why marketers use the basis for segmenting markets. List the four psychographic variables commonly used as segmentation bases.

What is the family life cycle (FLC)? Using the following selected stages from the FLC,briefly describe the lifestyle and purchasing needs of consumers in that stage: (1)Young single,(2)Young married without children,(3)Young married with children,(4)Middle-aged married without children,and (5)Older unmarried.

The marketing manager of Gevala gourmet coffees wants to target the gay male consumer because he thinks this segment of consumers appreciates and consumes gourmet coffee. Even though gay lifestyles are becoming more accepted socially,the manager is finding it difficult to determine the market potential for this segment because many gay consumers are not willing to admit their lifestyle publicly. Which criterion of a useful segment does this illustrate?

Altria Group Inc.'s Phillip Morris failed at another attempt to target Americans looking for a potentially safer cigarette.This market exhibits a lack of _____.

All of the following are typical bases for positioning EXCEPT:

While it is important to understand potential business customers' buying processes,this is not a helpful segmentation basis.

Consumers' perceptions regarding a product's position cannot be changed.

Marketers use _____ to segment markets because this information is widely available,and factors such as age or gender are often related to consumer purchasing and consumption behavior.

Most airline frequent flyer programs reward the most frequent flyers with business class upgrades and flight lounge privileges. Airlines are using these rewards as a means of implementing _____ segmentation.

For years,fryer chickens sold in grocery stores were perceived to be a rather generic product--one brand of chicken was much like another.Then Frank Perdue began an advertising campaign to tell consumers his brand of chicken was more tender and a better choice.Perdue brought _____ to the marketing of fryer chickens.

NASCAR racing fans are some of the most diverse and loyal fans in the world.They will stand in the pouring rain,the freezing cold,or the blistering heat for hours to shake the hand and get the autograph of a NASCAR super driver.These fans are not concentrated in any one area,but are dispersed throughout the United States.A Web site designed to market NASCAR memorabilia would be most likely to be successful if it used _____ segmentation to determine its target market.

Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife Gets Home.It is an advice book for new fathers.What demographic variables have been used to define the market for this book?

Chandler Kumar owns two antique stores.One is in an upscale neighborhood,and its merchandise is artfully arranged and priced to indicate product rarity.The other is in a run-down strip mall and contains some of the same type of merchandise,but the items are left in open boxes and placed haphazardly on shelves.Customers of either store have entirely different perceptions of the stores and would be surprised to know Kumar operates each of them because he uses such differing _____ strategies.

Hank operates a plumbing and electrical supply store.He has categorized its business customers by their purchasing strategy.Hank has found it much easier to serve and satisfy the _____,who usually recontact familiar suppliers and place an order immediately if product and delivery requirements are acceptable.