Exam 15: Segmenting and Targeting Markets

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 United States. 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 United States, the new offerings will not be going after the same consumers. -Refer to Mercedes-Benz.Which positioning base will Daimler be using if the company emphasizes the type of people who buy Mercedes-Benz automobiles in its promotional efforts?

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

Product positioning is the process of:

Consumers in Louisiana love hot sauce,and Tabasco and Crystal brands are particularly popular there.Consumers in Michigan do not like hot food,so they purchase very little hot sauce.A national chain of grocery stores would likely use _____ segmentation when stocking condiment merchandise.

In market segmentation,individual psychographic variables can be combined with other variables to provide more detailed descriptions of market segments.

What is a segmentation base (or segmentation variable)? Name the common segmentation bases used by marketers to segment consumer markets.

Which of the following statements about the teen market is TRUE?

A health club has a new fitness program for expectant mothers.After flyers were placed at the offices of area obstetricians,classes filled up within two days.Which segmentation success criterion was most influential in the success of this promotion?

Which of the following statements best describes the reason marketers find geodemographic segmentation so effective?

There are a number of devices that parents can buy to prevent their children from hearing objectionable language while they watch television.ProtecTV is the only product of its kind that has an expandable dictionary.Parents can add words and phrases they find offensive,and the additional words will be deleted from soundtracks and captioning.ProtecTV uses a(n)_____ strategy.

Product differentiation is a positioning strategy.

ThinkGeek is an online retailer that caters to computer enthusiasts and other "geeky" social groups.Their merchandise includes clothing,electronic and scientific gadgets,unusual computer peripherals,office toys,pet toys,child toys,and caffeinated drinks and candy.ThinkGeek runs a points-for-reward system called Geek Points,under which customers can earn rewards for buying more products.This is an example of segmentation by:

A group of middle school students stop by a bicycle store.The store has just received a new shipment of high-end racing bicycles.The bicycles range in price from $1,200 to $3,000.All of the students want one of these new bikes,but none has the means to buy one.Is this group of consumers a potential market for the expensive bikes?

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.

H&M plans to open a new store in Saudi Arabia.It will be staffed completely by women.Saudi Arabia has strict laws about women interacting with men other than their husbands,so only women will be permitted to shop there.Which type of demographic segmentation is H&M using?

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 in North America. 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.Primos Hunting Calls is another company that manufactures wild turkey callers.It claims each of its callers is able to cluck,shriek,and kee-kee (three sounds that have been known to attract the wild turkey).If you buy one of Cost's callers,you are limited to one sound.In this way,Primos has implemented a(n)_____ strategy.

Wrestling Merchandise Market research has shown that 6- to 17-year-old males, 18- to 24-year-old females, and 18- to 44-year-old males are most likely to watch a televised professional wrestling event or attend a live match. Wrestling events are regularly broadcast in 120 different countries. Merchandise licensed by World Wrestling Entertainment (formerly known as the World Wrestling Federation) can be purchased at JCPenney and Walmart. Clothes for adults are used to reach markets that may not buy action figures, video games, and novelty candy, but who are still proud to sport World Wrestling Entertainment (WWE) trademarks. -Refer to Wrestling Merchandise.The group identified as strong wrestling fans can be described as a(n):

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

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

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.