Exam 15: Segmenting and Targeting Markets

You are given the following limited information about a market consisting of ten people.Describe all the possible ways to segment this market.

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:

Many people find it difficult to peel hard-boiled eggs.Eggies is a kitchen gadget designed to help make cooking hard boiled eggs quicker and easier.The product allows customers to hard-boil eggs without the shell.Consumers simply crack an egg,pour it into the plastic "Eggie," boil,then twist to enjoy hard-boiled eggs without the messy peeling of the eggshell after they're done.Eggies is using _____ segmentation.

June LaVista owns a health and fitness gym.After dividing her customers into four segments based on income range,age,level of fitness,and other selected segmentation descriptors,she wrote out a description of each segment's size,expected growth,frequency of exercise,and overall profit potential.Which step in segmenting a market is LaVista engaged in?

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.Prior to the 1990s,professional wrestling tried to compete as a legitimate sport just like football and baseball.Now it uses the term sports entertainment when talking about what it is marketing to its fans.This is an example of the implementation of a(n)_____ strategy.

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.

Name and describe the three targeting strategies.For each strategy,name one advantage and one disadvantage of using the strategy.

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.

A segmentation plan must produce segments that are accessible-that is,the firm must be able to reach members of targeted segments with customized marketing mixes.

Which target marketing strategy views the market as one big market with no individual segments and thus uses a single marketing mix?

After selecting a market for study and choosing bases for segmenting that market,the marketer must select the segmentation _____,which identify the specific segmentation variables to use

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.What kind of strategy does Cost use to select his target market?

Coca-Cola launched a new Black History television commercial on BET to coincide with the Martin Luther King Jr.holiday.The ad is just one element of a strategy for connecting with African American consumers.Coca-Cola's segmentation plan for this promotional campaign is based on _____ segmentation.

Firms can be categorized by the type of purchasing strategy they use._____ usually contact familiar suppliers and place an order with the first that can meet product and delivery requirements.

Modern Maturity magazine is targeted toward adults aged 50 years and older.It has articles on health and fitness as well as the arts and finance.What segmenting base is Modern Maturity using?

The Ritz-Carlton hotel chain is renowned for its service and individual treatment of its customers.All service staff and employees have note pads and are taught to record every little piece of information they learn about a customer.If a business traveler ordered soft pillows,only wanted martinis in his mini bar,and needed access to a fax machine,he would find all of these amenities in his room when he arrived.The Ritz-Carlton is basing its CRM on which of the following trends?

_____ 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.

Ad campaigns for Aleve pain reliever emphasize the fact that to get the same relief offered by one Aleve,you would need to take six aspirin or Tylenol and four Advil.These promotions are using the positioning base of:

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.Mercedes-Benz's baby boomers are a useful segment because they meet certain criteria.Which of the following do the baby boomers meet?

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.