Exam 4: Focusing Marketing Strategy With Segmentation and Positioning

Clustering is a technique that divides a large group of people into smaller groups, so that each small group is as diverse as the large group from which it was formed.

Marketers segment broad markets into smaller target segments based on a variety of _____.

Market segmentation applies only to consumer goods and services; it cannot be applied to business products.

In the seven-step approach to market segmentation

In the example for the 7-step approach (discussed in the text), the "resort seekers" and the "executives" should be combined because both groups have high incomes.

Product type describes the goods and/or services that customers want.

Segmenters, in contrast to combiners:

A positioning analysis is a product-oriented approach.

The segmenting step of the segmentation process

Marketing managers for Mountain Dew used a positioning statement to help focus efforts and gain market share in a competitive environment.

The process of naming broad product-markets and then segmenting them in order to select target markets and develop suitable marketing mixes is called:

Unlike a generic market description, a product-market definition includes

James is a prospective car buyer. In his context, which of the following statements would reflect a determining dimension?

When segmenting markets, one should look at geographic location and demographic characteristics as well as customers' desire and willingness to compare and shop, but behavioral needs aren't important for this purpose.

A product-market definition should include:

Saying that a market segment is "substantial" means that it contains customers from a variety of demographic variables.

Which of the following is a BEHAVIORAL segmenting dimension?

A firm is most likely to rely on customer relationship management (CRM) approaches when it does not have a database of information on individual customers.

When segmenting markets, cost considerations typically encourage a company to ________ and ________.

A market is a group of two or more sellers who offer substitute ways of satisfying customer needs.