Deck 6: Market Segmentation, positioning, and the Value Proposition
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Deck 6: Market Segmentation, positioning, and the Value Proposition
1
Spending advertising dollars to get "switchers" to buy your brand may seem like a bad idea,but it often results in strong brand loyalty.
False
2
Some advertisers try to use approaches to reach the green consumer segment
True
3
Positioning relates to an attempt to give a brand meaning relative to its competitors.
True
4
When formulating a positioning strategy,it is important to consider the competition.
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5
One drawback of niche marketing is that a company may have to raise the price of its product due to the smaller volume of sales it can expect.
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6
Psychographic segmentation is a term that advertisers created in the mid-1960s to refer to a form of research that emphasizes the understanding of consumers' activities,interests,and opinions.
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7
Bumbo is a company that manufactures products for babies and toddlers.Its advertising campaigns have carried various slogans over the years,and they change up the thematic core of the messages every week.This is an example of consistent positioning approach.
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8
If Nike decides to use the STP framework,it does not need to do market segmentation.
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9
When a brand team defines the target market of consumers for their product,they do not worry about identifying many smaller subsets of consumers within their broad market.
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10
A gourmet spa advertises itself as offering relaxation to the extreme and the best massage in America.The owner of the local shop buys ads focusing on a relaxing experience and their award-winning massage therapists.This is an example of internal consistency.
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11
Demographics are used to describe or profile target segments and may include gender,age,education,and income range.
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12
Taco Bell is launching a new advertising campaign portraying its restaurant as having very fast service and a cheerful staff to target a younger crowd.The campaign will be more successful if it uses various aspects of IBP such as sponsorships,contests,and sales promotions in addition to TV and social media,rather than TV commercials alone,to best reach this group.
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13
Psychographic segmentation is used in selecting target segments by focusing on consumers' descriptors such as theirvalues,beliefs,philosophies,and opinions.
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14
Brand opportunities relate with credibility,relevance,stretch,and differentiation.
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15
If an advertiser sees a large potential segment being served by a competitor with a big budget,it should withdraw from the marketplace.
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16
Advertising is relevant for both business-to-business as well as for business-to-consumer approaches.
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17
Alluring is a company that manufactures cosmetic products.It claims to have the most innovative and scientific formula of the makeup.To be internally consistent,the company should invest in a better Research and Development department to continue product innovation.
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18
In the world of advertising,products are positioned,but markets are segmented.
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19
STP marketing includes three aspects: segmentation,targeting,and positioning.
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20
Companies at times target "casual users".
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21
The McDonald's team aligned its marketing mix in a design that would represent a particular identity,showcasing certain themes and value,and shaped to gain distinctive approval from parents.This demonstrates the process of ______.
A) switching.
B) commoditization.
C) segmenting.
D) singularization.
A) switching.
B) commoditization.
C) segmenting.
D) singularization.
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22
A brand's opportunity claim is a statement of the brand's benefits that provide value to its target consumers and includes functional,emotional,and self-expressive benefits.
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23
The Folgers brand team looked at the diverse market of all coffee drinkers,then broke it down by age.The team chose to focus on college-aged students who were new to coffee; these people represent the _______
A) benefit positioning.
B) positioning value proposition.
C) target market.
D) segmenting persuasion tools.
A) benefit positioning.
B) positioning value proposition.
C) target market.
D) segmenting persuasion tools.
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24
What is geodemographic segmentation?
A) Creating multiple media markets to reach many global consumers.
B) Positioning a new service in a new region.
C) Identifying neighborhoods by zip code around the country that share common demographic characteristics.
D) Expanding a brand into a new country in a region where it already operates.
A) Creating multiple media markets to reach many global consumers.
B) Positioning a new service in a new region.
C) Identifying neighborhoods by zip code around the country that share common demographic characteristics.
D) Expanding a brand into a new country in a region where it already operates.
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25
The process of cutting a market into pieces and focusing on the piece or pieces that make the most sense is termed ________.
C) rationalization
D) differentiation
C) rationalization
D) differentiation
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25
As a segment,variety seekers:
A) are extremely committed to a brand.
B) enjoy new experiences and switch brands for that reason.
C) need little encouragement to continue purchasing a brand.
D) are unusually enthusiastic about one brand and often excessive in their purchasing activities of it.
A) are extremely committed to a brand.
B) enjoy new experiences and switch brands for that reason.
C) need little encouragement to continue purchasing a brand.
D) are unusually enthusiastic about one brand and often excessive in their purchasing activities of it.
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26
Folgers coffee focuses on graduates and newlyweds in advertising,as they are the next generation of coffee-drinkers at home.This campaign is an example of:
A) ambush marketing.
B) guerilla marketing.
C) heavy-user-focused marketing.
D) point-of-entry marketing.
A) ambush marketing.
B) guerilla marketing.
C) heavy-user-focused marketing.
D) point-of-entry marketing.
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27
Climate,topography,community size,and national region have been found to make dramatic differences in consumption,including habits involving eating and food preparation,entertainment,and recreation.This is the basis of segmentation.
A) psychographic
B) commitment-level-based
C) geographic
D) demographic
A) psychographic
B) commitment-level-based
C) geographic
D) demographic
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28
The strategic planning triangle suggested by Thorson and Moore features as its three main aspects the campaign's colors,celebrity endorsers,and logo.
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29
The consumers termed ____ turn out to be a costly target segment; much can be spent in getting their business merely to have it disappear just as quickly as it was won.
A) brand freaks
B) lead users
C) switchers
D) heavy users
A) brand freaks
B) lead users
C) switchers
D) heavy users
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30
The basic premise of a positioning strategy must be complex and fitting in with the competitors' messages if it is to be communicated effectively to the target segment.
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31
What is the first step in STP marketing?
A) market segmentation
B) solidify strategy
C) supplementary positioning
D) selecting marketing
A) market segmentation
B) solidify strategy
C) supplementary positioning
D) selecting marketing
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32
What does "T" stand for in the term STP marketing?
A) Tangible
B) Technology
C) Target
D) Territory
A) Tangible
B) Technology
C) Target
D) Territory
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33
In STP marketing,the term refers to an attempt to give a brand a certain meaning relative to its competitors.
A) segmentation
B) redistribution
C) positioning
D) targeting
A) segmentation
B) redistribution
C) positioning
D) targeting
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34
A characteristic that share is that their brand preferences are still under development.
A) variety seekers
B) brand-freaks
C) heavy users
D) emergent consumers
A) variety seekers
B) brand-freaks
C) heavy users
D) emergent consumers
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35
What does the acronym STP mean?
A) Sales, Target, Product
B) Sell To People
C) Segmenting, Targeting, Positioning
D) Sell The Product
A) Sales, Target, Product
B) Sell To People
C) Segmenting, Targeting, Positioning
D) Sell The Product
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36
When ad agency professionals are creating a campaign for a huge global retail firm with complex value propositions,it is important to make sure the campaign aligns with one or more aspects of the brand's value.
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37
Location is most related to segmentation.
A) geographic
B) psychographic
C) competitive
D) demographic
A) geographic
B) psychographic
C) competitive
D) demographic
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38
What is a downside to adopting a heavy-user-focused segmentation plan?
A) Heavy users usually form less than one percent of users by volume.
B) Heavy users may differ significantly from average or infrequent users in terms of their motivations to consume, their approach to the brand, or their image of the brand.
C) Heavy users are a costly target segment and much can be spent in getting their business merely to have it disappear just as quickly as it was won.
D) Heavy users have little knowledge of the brand and negligible social influence.
A) Heavy users usually form less than one percent of users by volume.
B) Heavy users may differ significantly from average or infrequent users in terms of their motivations to consume, their approach to the brand, or their image of the brand.
C) Heavy users are a costly target segment and much can be spent in getting their business merely to have it disappear just as quickly as it was won.
D) Heavy users have little knowledge of the brand and negligible social influence.
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39
Which segment is important when there is a big influx of first-time buyers?
A) switchers
B) brand-freaks
C) lead users
D) emergent consumers
A) switchers
B) brand-freaks
C) lead users
D) emergent consumers
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40
For most products and services,some users will purchase much more,and more frequently,than others.These consumers are called .
A) lead users
B) switchers
C) emergent consumers
D) variety seekers
A) lead users
B) switchers
C) emergent consumers
D) variety seekers
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41
The top of the strategic planning triangle is ,as it relates to customers.
A) specification of the brand's history
B) identification and specification of the target segment
C) identification of the various headlines that may be deployed as part of the campaigns
D) specification of ideas
A) specification of the brand's history
B) identification and specification of the target segment
C) identification of the various headlines that may be deployed as part of the campaigns
D) specification of ideas
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42
Which of the following forms the final apex of the strategic planning triangle proposed by Esther Thorson and Jeri Moore?
A) selection of a mix of persuasion tools
B) identification of the target segment
C) specification of the brand's value proposition
D) division of a market into segments
A) selection of a mix of persuasion tools
B) identification of the target segment
C) specification of the brand's value proposition
D) division of a market into segments
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43
_____ is a term that advertisers created in the mid-1960s to refer to a form of research that emphasizes the understanding of consumers' activities,interests,and opinions.
A) Demographics
B) Geodemographics
C) Psychographics
D) Micrographics
A) Demographics
B) Geodemographics
C) Psychographics
D) Micrographics
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44
A major criterion to consider during segment selection is the ____,or the companies that are vying for that segment's business.
A) ad clutter
B) business market
C) competitive field
D) niche market
A) ad clutter
B) business market
C) competitive field
D) niche market
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45
A firm hires an agency to persuade real estate professionals to use their finance services.In this case,the agency is specifically involved in:
A) psychographic research.
B) business-to-business marketing.
C) the competitive field
D) need-based segmentation.
A) psychographic research.
B) business-to-business marketing.
C) the competitive field
D) need-based segmentation.
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46
Which system has identified many market segments based on zip codes and the personal characteristics of their residents,creating a well-known tool for geodemographic segmentation?
A) Thorson and Moore's model
B) PRIZM
C) SIC Codes
D) VALS
A) Thorson and Moore's model
B) PRIZM
C) SIC Codes
D) VALS
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47
A ______ is a core idea that frames an ambition or aspiration for a brand that will be relevant to target audiences over time.
A) brand extension
B) brand orientation
C) brand initial
D) brand platform
A) brand extension
B) brand orientation
C) brand initial
D) brand platform
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48
There should be ______ persuasion tool(s).
A) five
B) a mix of
C) one
D) two
A) five
B) a mix of
C) one
D) two
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49
Why are systems such as PRIZM used by advertisers for segmentation?
A) because they provide deep segment description
B) because they allow for segmentation on the basis of frequency of usage
C) because they provide deep insights into consumers' motivations
D) because they emphasize the understanding of consumers' activities, interests, and opinions
A) because they provide deep segment description
B) because they allow for segmentation on the basis of frequency of usage
C) because they provide deep insights into consumers' motivations
D) because they emphasize the understanding of consumers' activities, interests, and opinions
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50
The American Pork Producers has been running a long-term campaign with the tagline "Pork.The other white meat." This is an example of:
A) lifestyle segmentation.
B) demographic segmentation.
C) benefit positioning.
D) competitive positioning.
A) lifestyle segmentation.
B) demographic segmentation.
C) benefit positioning.
D) competitive positioning.
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51
What is niche marketing?
A) A relatively small group of consumers within a segment that has a distinctive set of needs or seeks very specific benefits.
B) A large group of heavy users who are loyal to a brand because it provides value at a relatively low price
C) A market segment that is served by many firms and is characterized by high levels of competition
D) A market segment that is characterized by high sales volumes and low prices
A) A relatively small group of consumers within a segment that has a distinctive set of needs or seeks very specific benefits.
B) A large group of heavy users who are loyal to a brand because it provides value at a relatively low price
C) A market segment that is served by many firms and is characterized by high levels of competition
D) A market segment that is characterized by high sales volumes and low prices
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52
_____ involves the overlapping of four important factors: current relevance to the consumer,credibility or consumer belief in the brand,differentiation or a recognition of uniqueness,and "stretch" or the potential for consumer relevance over time.
A) SWOT analysis
B) Competitive field
C) Brand opportunity
D) Niche marketing
A) SWOT analysis
B) Competitive field
C) Brand opportunity
D) Niche marketing
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53
One big plus from a product position that stays consistent over time,like Chick-fil-A's "Eat More Chicken" campaign,is that it:
A) is more likely to break through advertising clutter.
B) successfully reaches nonusers.
C) doesn't need to target a particular segment.
D) is easily repositioned.
A) is more likely to break through advertising clutter.
B) successfully reaches nonusers.
C) doesn't need to target a particular segment.
D) is easily repositioned.
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54
In recent years,mobile phones and location of consumers on the go relates with segmentation.
A) value
B) micrographic
C) reprographic
D) geodemographic
A) value
B) micrographic
C) reprographic
D) geodemographic
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55
Segment selection revolves around what the members of the segment want versus:
A) how much they are willing to pay for it.
B) whether the segment is currently growing.
C) how much they are willing to settle for.
D) the organization's ability to provide it.
A) how much they are willing to pay for it.
B) whether the segment is currently growing.
C) how much they are willing to settle for.
D) the organization's ability to provide it.
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56
In Chobani yogurt's positioning as the yogurt with quality ingredients only,it can benefit the position of the brand with:
A) competitors.
B) integrated brand promotion.
C) not having any advertising.
D) taking information out of any advertising.
A) competitors.
B) integrated brand promotion.
C) not having any advertising.
D) taking information out of any advertising.
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57
Effective positioning strategies should be linked to the ______________ offered by the brand.
A) history
B) substantive benefits
C) sale
D) drama
A) history
B) substantive benefits
C) sale
D) drama
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58
A potential downside of a heavy-user-focused segmentation plan is that:
A) there may be a relatively small number of people in the segment.
B) heavy users usually require constant encouragement to keep consuming a product.
C) heavy users do not differ significantly from infrequent users in terms of their motivations to consume.
D) it shifts focus to old consumers who quit.
A) there may be a relatively small number of people in the segment.
B) heavy users usually require constant encouragement to keep consuming a product.
C) heavy users do not differ significantly from infrequent users in terms of their motivations to consume.
D) it shifts focus to old consumers who quit.
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59
A fast-food restaurant is attempting to position itself as the best choice when you're in a hurry because it serves customers within 100 seconds.To maintain internal consistency,the firm might take all of the following steps below,EXCEPT for which one?
A) adding a gourmet condiment station with more flavors and sauce choices
B) adding extra drive-up windows
C) hiring more order-takers
D) hanging up digital timers behind the counter
A) adding a gourmet condiment station with more flavors and sauce choices
B) adding extra drive-up windows
C) hiring more order-takers
D) hanging up digital timers behind the counter
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60
An important apex in Thorson and Moore's strategic planning triangle entails:
A) identification and specification of complex themes.
B) identification of the various global markets.
C) specification of the brand's value proposition.
D) specification of details.
A) identification and specification of complex themes.
B) identification of the various global markets.
C) specification of the brand's value proposition.
D) specification of details.
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61
A powerful value proposition in many situations includes functional,emotional,and self-expressive benefits,
A) though there is only one basis for market segmentation.
B) though it is not easy to reflect all three aspects in one single ad.
C) all of which must be included in a given headline.
D) though it only applies to services.
A) though there is only one basis for market segmentation.
B) though it is not easy to reflect all three aspects in one single ad.
C) all of which must be included in a given headline.
D) though it only applies to services.
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62
Scenario 6-2
Sunshine Meals Inc. is a company that sells breakfast foods such as cereals, pancake mixes, etc. The company conducts a study to segment its consumers. It finds that segment A consists of a small group of individuals who purchase four boxes of the brand's cereal every week. The average user consumes one box every week. It targets segment A by providing them with samples of other Sunshine products with the purchase of one box.Segment B consists of a large number of college students and individuals who have recently begun living on their own, and require readymade mixes as their breakfast solution. It targets these consumers by providing more variety with pancakes and waffle mixes. Segment C consists of consumers who are not consistent buyers; targeting these consumers could prove a loss for the company.
(Scenario 6-2)Which of the following marketing strategies is more likely to have been used by the company to target segment B users?
A) Niche marketing
B) Geographic segmentation marketing
C) Ambush marketing
D) Point-of-entry marketing
Sunshine Meals Inc. is a company that sells breakfast foods such as cereals, pancake mixes, etc. The company conducts a study to segment its consumers. It finds that segment A consists of a small group of individuals who purchase four boxes of the brand's cereal every week. The average user consumes one box every week. It targets segment A by providing them with samples of other Sunshine products with the purchase of one box.Segment B consists of a large number of college students and individuals who have recently begun living on their own, and require readymade mixes as their breakfast solution. It targets these consumers by providing more variety with pancakes and waffle mixes. Segment C consists of consumers who are not consistent buyers; targeting these consumers could prove a loss for the company.
(Scenario 6-2)Which of the following marketing strategies is more likely to have been used by the company to target segment B users?
A) Niche marketing
B) Geographic segmentation marketing
C) Ambush marketing
D) Point-of-entry marketing
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63
Lion Inc.,a manufacturer of shampoo,offers two product lines,each catering to a distinct segment.Its most popular brand targets women who want hair that will shine for days after a wash while blocking the sun's rays.With this brand,the company targets a niche market of women who are looking for shine and UV protection.What type of segmentation is Lion Inc.using?
A) Benefit segmentation
B) Heavy-user-focused segmentation
C) Positioning segmentation
D) Geographic segmentation
A) Benefit segmentation
B) Heavy-user-focused segmentation
C) Positioning segmentation
D) Geographic segmentation
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64
Scenario 6-3
Keds has been trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving. But over time, competition from Sam & Libby and Easy Spirit brands has been nipping at the heels of Keds. As part of its effort to revitalize the brand several years ago, Keds' advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother saying, "She was my first, I could never tell her how to dress," with the daughter saying, "She made me feel pretty even when I had braces."
(Scenario 6-3)The copy for this campaign features moms and daughters commenting on their close relationships,and Brandweek magazine said that the new Keds ads "really go for the heart." This points to the campaign's focus on
A) identifying emotional benefits.
B) delivering its promise.
C) targeting nonusers.
D) using VALS data.
Keds has been trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving. But over time, competition from Sam & Libby and Easy Spirit brands has been nipping at the heels of Keds. As part of its effort to revitalize the brand several years ago, Keds' advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother saying, "She was my first, I could never tell her how to dress," with the daughter saying, "She made me feel pretty even when I had braces."
(Scenario 6-3)The copy for this campaign features moms and daughters commenting on their close relationships,and Brandweek magazine said that the new Keds ads "really go for the heart." This points to the campaign's focus on
A) identifying emotional benefits.
B) delivering its promise.
C) targeting nonusers.
D) using VALS data.
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65
Scenario 6-3
Keds has been trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving. But over time, competition from Sam & Libby and Easy Spirit brands has been nipping at the heels of Keds. As part of its effort to revitalize the brand several years ago, Keds' advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother saying, "She was my first, I could never tell her how to dress," with the daughter saying, "She made me feel pretty even when I had braces."
(Scenario 6-3)Which of these segmentation techniques would provide the most insight for Keds' advertising agency in the creation of its advertisements?
A) Emergent
B) Lifestyle
C) Geographic
D) Usage pattern
Keds has been trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving. But over time, competition from Sam & Libby and Easy Spirit brands has been nipping at the heels of Keds. As part of its effort to revitalize the brand several years ago, Keds' advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother saying, "She was my first, I could never tell her how to dress," with the daughter saying, "She made me feel pretty even when I had braces."
(Scenario 6-3)Which of these segmentation techniques would provide the most insight for Keds' advertising agency in the creation of its advertisements?
A) Emergent
B) Lifestyle
C) Geographic
D) Usage pattern
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66
Which of the following is true of segment selection?
A) The number of heavy users in a segment is usually very large.
B) It is enough to assess the size of a segment to select it as a company's target segment.
C) Growth potentials for all segments are generally very low.
D) Marketers are inclined to devote resources to segments projected for dramatic growth.
A) The number of heavy users in a segment is usually very large.
B) It is enough to assess the size of a segment to select it as a company's target segment.
C) Growth potentials for all segments are generally very low.
D) Marketers are inclined to devote resources to segments projected for dramatic growth.
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67
Scenario 6-1
Headquartered in Boston, Gillette is a world leader in male grooming, a category that includes blades, razors, and shaving preparations. Several years ago, Gillette announced the launch of two new high- performance women's razors, broadening the portfolio of the top-selling Venus brand, the world's most successful franchise in female shaving. The two new razors were Venus Vibrance, the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporated technological and design enhancements to better address the specific shaving needs of women, and will build on current market segments. More recently the company has launched Venus Embrace, the first five-blade women's razor, with the tagline, "Reveal the Goddess in You." According to its website, at one point there 40 million women using Venus products.
(Scenario 6-1)According to the information provided here,Gillette has identified market segments along lines.
A) benefit
B) demographic
C) geographic
D) usage pattern
Headquartered in Boston, Gillette is a world leader in male grooming, a category that includes blades, razors, and shaving preparations. Several years ago, Gillette announced the launch of two new high- performance women's razors, broadening the portfolio of the top-selling Venus brand, the world's most successful franchise in female shaving. The two new razors were Venus Vibrance, the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporated technological and design enhancements to better address the specific shaving needs of women, and will build on current market segments. More recently the company has launched Venus Embrace, the first five-blade women's razor, with the tagline, "Reveal the Goddess in You." According to its website, at one point there 40 million women using Venus products.
(Scenario 6-1)According to the information provided here,Gillette has identified market segments along lines.
A) benefit
B) demographic
C) geographic
D) usage pattern
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68
Scenario 6-2
Sunshine Meals Inc. is a company that sells breakfast foods such as cereals, pancake mixes, etc. The company conducts a study to segment its consumers. It finds that segment A consists of a small group of individuals who purchase four boxes of the brand's cereal every week. The average user consumes one box every week. It targets segment A by providing them with samples of other Sunshine products with the purchase of one box.Segment B consists of a large number of college students and individuals who have recently begun living on their own, and require readymade mixes as their breakfast solution. It targets these consumers by providing more variety with pancakes and waffle mixes. Segment C consists of consumers who are not consistent buyers; targeting these consumers could prove a loss for the company.
(Scenario 6-2)Segment C consumers are more likely to be .
A) emergent consumers
B) brand freaks
C) lead users
D) variety seekers
Sunshine Meals Inc. is a company that sells breakfast foods such as cereals, pancake mixes, etc. The company conducts a study to segment its consumers. It finds that segment A consists of a small group of individuals who purchase four boxes of the brand's cereal every week. The average user consumes one box every week. It targets segment A by providing them with samples of other Sunshine products with the purchase of one box.Segment B consists of a large number of college students and individuals who have recently begun living on their own, and require readymade mixes as their breakfast solution. It targets these consumers by providing more variety with pancakes and waffle mixes. Segment C consists of consumers who are not consistent buyers; targeting these consumers could prove a loss for the company.
(Scenario 6-2)Segment C consumers are more likely to be .
A) emergent consumers
B) brand freaks
C) lead users
D) variety seekers
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69
Scenario 6-2
Sunshine Meals Inc. is a company that sells breakfast foods such as cereals, pancake mixes, etc. The company conducts a study to segment its consumers. It finds that segment A consists of a small group of individuals who purchase four boxes of the brand's cereal every week. The average user consumes one box every week. It targets segment A by providing them with samples of other Sunshine products with the purchase of one box.Segment B consists of a large number of college students and individuals who have recently begun living on their own, and require readymade mixes as their breakfast solution. It targets these consumers by providing more variety with pancakes and waffle mixes. Segment C consists of consumers who are not consistent buyers; targeting these consumers could prove a loss for the company.
(Scenario 6-2)The consumers of segment A can be classified as .
A) fickle users
B) heavy users
C) variety users
D) competitive users
Sunshine Meals Inc. is a company that sells breakfast foods such as cereals, pancake mixes, etc. The company conducts a study to segment its consumers. It finds that segment A consists of a small group of individuals who purchase four boxes of the brand's cereal every week. The average user consumes one box every week. It targets segment A by providing them with samples of other Sunshine products with the purchase of one box.Segment B consists of a large number of college students and individuals who have recently begun living on their own, and require readymade mixes as their breakfast solution. It targets these consumers by providing more variety with pancakes and waffle mixes. Segment C consists of consumers who are not consistent buyers; targeting these consumers could prove a loss for the company.
(Scenario 6-2)The consumers of segment A can be classified as .
A) fickle users
B) heavy users
C) variety users
D) competitive users
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70
Scenario 6-1
Headquartered in Boston, Gillette is a world leader in male grooming, a category that includes blades, razors, and shaving preparations. Several years ago, Gillette announced the launch of two new high- performance women's razors, broadening the portfolio of the top-selling Venus brand, the world's most successful franchise in female shaving. The two new razors were Venus Vibrance, the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporated technological and design enhancements to better address the specific shaving needs of women, and will build on current market segments. More recently the company has launched Venus Embrace, the first five-blade women's razor, with the tagline, "Reveal the Goddess in You." According to its website, at one point there 40 million women using Venus products.
(Scenario 6-1)______ is a tool likely employed by Gillette to supplement the use of demographic data by providing information about consumers' activities,interests,and opinions.
A) Psychographics
B) PRIZM
C) STP
D) Bass diffusion
Headquartered in Boston, Gillette is a world leader in male grooming, a category that includes blades, razors, and shaving preparations. Several years ago, Gillette announced the launch of two new high- performance women's razors, broadening the portfolio of the top-selling Venus brand, the world's most successful franchise in female shaving. The two new razors were Venus Vibrance, the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporated technological and design enhancements to better address the specific shaving needs of women, and will build on current market segments. More recently the company has launched Venus Embrace, the first five-blade women's razor, with the tagline, "Reveal the Goddess in You." According to its website, at one point there 40 million women using Venus products.
(Scenario 6-1)______ is a tool likely employed by Gillette to supplement the use of demographic data by providing information about consumers' activities,interests,and opinions.
A) Psychographics
B) PRIZM
C) STP
D) Bass diffusion
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71
Scenario 6-1
Headquartered in Boston, Gillette is a world leader in male grooming, a category that includes blades, razors, and shaving preparations. Several years ago, Gillette announced the launch of two new high- performance women's razors, broadening the portfolio of the top-selling Venus brand, the world's most successful franchise in female shaving. The two new razors were Venus Vibrance, the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporated technological and design enhancements to better address the specific shaving needs of women, and will build on current market segments. More recently the company has launched Venus Embrace, the first five-blade women's razor, with the tagline, "Reveal the Goddess in You." According to its website, at one point there 40 million women using Venus products.
(Scenario 6-1)It appears that the management at Gillette has performed the fundamental task behind effective segmentation; Gillette has matched what members of different segments want with:
A) the company's ability to provide it.
B) a single appeal.
C) a heavy-user-focused campaign.
D) a distinct geographic profile.
Headquartered in Boston, Gillette is a world leader in male grooming, a category that includes blades, razors, and shaving preparations. Several years ago, Gillette announced the launch of two new high- performance women's razors, broadening the portfolio of the top-selling Venus brand, the world's most successful franchise in female shaving. The two new razors were Venus Vibrance, the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporated technological and design enhancements to better address the specific shaving needs of women, and will build on current market segments. More recently the company has launched Venus Embrace, the first five-blade women's razor, with the tagline, "Reveal the Goddess in You." According to its website, at one point there 40 million women using Venus products.
(Scenario 6-1)It appears that the management at Gillette has performed the fundamental task behind effective segmentation; Gillette has matched what members of different segments want with:
A) the company's ability to provide it.
B) a single appeal.
C) a heavy-user-focused campaign.
D) a distinct geographic profile.
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72
The use of psychographics to focus on differences in consumers' activities,interests,and opinions usually results in segmentation.
A) new -user-focused
B) bias
C) time
D) lifestyle
A) new -user-focused
B) bias
C) time
D) lifestyle
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73
Scenario 6-2
Sunshine Meals Inc. is a company that sells breakfast foods such as cereals, pancake mixes, etc. The company conducts a study to segment its consumers. It finds that segment A consists of a small group of individuals who purchase four boxes of the brand's cereal every week. The average user consumes one box every week. It targets segment A by providing them with samples of other Sunshine products with the purchase of one box.Segment B consists of a large number of college students and individuals who have recently begun living on their own, and require readymade mixes as their breakfast solution. It targets these consumers by providing more variety with pancakes and waffle mixes. Segment C consists of consumers who are not consistent buyers; targeting these consumers could prove a loss for the company.
(Scenario 6-2)If Sunshine Meals Inc.begins producing a range of sugar-free marmalades to target a small segment of health-conscious consumers who would be willing to pay a premium price for products appropriate for their diets,this would be an example of:
A) niche marketing.
B) geographic segmentation.
C) point-of-entry marketing.
D) geodemographic segmentation.
Sunshine Meals Inc. is a company that sells breakfast foods such as cereals, pancake mixes, etc. The company conducts a study to segment its consumers. It finds that segment A consists of a small group of individuals who purchase four boxes of the brand's cereal every week. The average user consumes one box every week. It targets segment A by providing them with samples of other Sunshine products with the purchase of one box.Segment B consists of a large number of college students and individuals who have recently begun living on their own, and require readymade mixes as their breakfast solution. It targets these consumers by providing more variety with pancakes and waffle mixes. Segment C consists of consumers who are not consistent buyers; targeting these consumers could prove a loss for the company.
(Scenario 6-2)If Sunshine Meals Inc.begins producing a range of sugar-free marmalades to target a small segment of health-conscious consumers who would be willing to pay a premium price for products appropriate for their diets,this would be an example of:
A) niche marketing.
B) geographic segmentation.
C) point-of-entry marketing.
D) geodemographic segmentation.
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74
Scenario 6-1
Headquartered in Boston, Gillette is a world leader in male grooming, a category that includes blades, razors, and shaving preparations. Several years ago, Gillette announced the launch of two new high- performance women's razors, broadening the portfolio of the top-selling Venus brand, the world's most successful franchise in female shaving. The two new razors were Venus Vibrance, the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporated technological and design enhancements to better address the specific shaving needs of women, and will build on current market segments. More recently the company has launched Venus Embrace, the first five-blade women's razor, with the tagline, "Reveal the Goddess in You." According to its website, at one point there 40 million women using Venus products.
(Scenario 6-1)The position for any one market segment should:
A) also hold an appeal for those outside the segment.
B) be identical to positions selected for other segments.
C) change occasionally to break through advertising clutter.
D) be easily communicated to consumers.
Headquartered in Boston, Gillette is a world leader in male grooming, a category that includes blades, razors, and shaving preparations. Several years ago, Gillette announced the launch of two new high- performance women's razors, broadening the portfolio of the top-selling Venus brand, the world's most successful franchise in female shaving. The two new razors were Venus Vibrance, the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporated technological and design enhancements to better address the specific shaving needs of women, and will build on current market segments. More recently the company has launched Venus Embrace, the first five-blade women's razor, with the tagline, "Reveal the Goddess in You." According to its website, at one point there 40 million women using Venus products.
(Scenario 6-1)The position for any one market segment should:
A) also hold an appeal for those outside the segment.
B) be identical to positions selected for other segments.
C) change occasionally to break through advertising clutter.
D) be easily communicated to consumers.
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75
Scenario 6-1
Headquartered in Boston, Gillette is a world leader in male grooming, a category that includes blades, razors, and shaving preparations. Several years ago, Gillette announced the launch of two new high- performance women's razors, broadening the portfolio of the top-selling Venus brand, the world's most successful franchise in female shaving. The two new razors were Venus Vibrance, the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporated technological and design enhancements to better address the specific shaving needs of women, and will build on current market segments. More recently the company has launched Venus Embrace, the first five-blade women's razor, with the tagline, "Reveal the Goddess in You." According to its website, at one point there 40 million women using Venus products.
(Scenario 6-1)The original plan to sell new products to the female market:
A) cannot be considered an STP effort because Gillette is targeting multiple segments.
B) may or may not have been an STP effort, depending on whether Gillette has created sub-segments of these large segments.
C) may or may not have been an STP effort, depending on whether all possible segments are being targeted by Gillette.
D) fit all the criteria of an STP effort by Gillette.
Headquartered in Boston, Gillette is a world leader in male grooming, a category that includes blades, razors, and shaving preparations. Several years ago, Gillette announced the launch of two new high- performance women's razors, broadening the portfolio of the top-selling Venus brand, the world's most successful franchise in female shaving. The two new razors were Venus Vibrance, the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporated technological and design enhancements to better address the specific shaving needs of women, and will build on current market segments. More recently the company has launched Venus Embrace, the first five-blade women's razor, with the tagline, "Reveal the Goddess in You." According to its website, at one point there 40 million women using Venus products.
(Scenario 6-1)The original plan to sell new products to the female market:
A) cannot be considered an STP effort because Gillette is targeting multiple segments.
B) may or may not have been an STP effort, depending on whether Gillette has created sub-segments of these large segments.
C) may or may not have been an STP effort, depending on whether all possible segments are being targeted by Gillette.
D) fit all the criteria of an STP effort by Gillette.
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76
Scenario 6-4
Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and accessories, which they named The Plantatarium. Their initial feeling when they went into business was that virtually everyone was a potential customer for house plants. Subsequent market research conducted for them painted a different picture. This research identified three particularly strong market segments. The first was college students ages 18-24. The next segment was retired seniors ages 65-80. The third segment was professional offices for doctors, accountants, and lawyers. The college students liked houseplants because they dressed up their living spaces. The seniors liked them because they became the focus of a hobby. The professionals did not buy them for any reason other than décor.
(Scenario 6-4)The Plantatarium sends out direct mail offers to consumers in a nearby zip code who have household incomes of greater than $60,000 a year.This is an illustration of a ________ strategy.
A) geographic segmentation
B) demographic segmentation
C) psychographic segmentation
D) geodemographic segmentation
Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and accessories, which they named The Plantatarium. Their initial feeling when they went into business was that virtually everyone was a potential customer for house plants. Subsequent market research conducted for them painted a different picture. This research identified three particularly strong market segments. The first was college students ages 18-24. The next segment was retired seniors ages 65-80. The third segment was professional offices for doctors, accountants, and lawyers. The college students liked houseplants because they dressed up their living spaces. The seniors liked them because they became the focus of a hobby. The professionals did not buy them for any reason other than décor.
(Scenario 6-4)The Plantatarium sends out direct mail offers to consumers in a nearby zip code who have household incomes of greater than $60,000 a year.This is an illustration of a ________ strategy.
A) geographic segmentation
B) demographic segmentation
C) psychographic segmentation
D) geodemographic segmentation
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77
Scenario 6-3
Keds has been trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving. But over time, competition from Sam & Libby and Easy Spirit brands has been nipping at the heels of Keds. As part of its effort to revitalize the brand several years ago, Keds' advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother saying, "She was my first, I could never tell her how to dress," with the daughter saying, "She made me feel pretty even when I had braces."
(Scenario 6-3)Instead of "mothers and daughters," why didn't Keds define its target segment simply as "women"?
A) This concept already has a number of established companies targeting it.
B) This is not based on a realistic approach to segmentation.
C) This is based on demographic criteria for which media is difficult to define.
D) This is poorly defined and provides no clear orientation or identity.
Keds has been trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving. But over time, competition from Sam & Libby and Easy Spirit brands has been nipping at the heels of Keds. As part of its effort to revitalize the brand several years ago, Keds' advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother saying, "She was my first, I could never tell her how to dress," with the daughter saying, "She made me feel pretty even when I had braces."
(Scenario 6-3)Instead of "mothers and daughters," why didn't Keds define its target segment simply as "women"?
A) This concept already has a number of established companies targeting it.
B) This is not based on a realistic approach to segmentation.
C) This is based on demographic criteria for which media is difficult to define.
D) This is poorly defined and provides no clear orientation or identity.
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78
Scenario 6-4
Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and accessories, which they named The Plantatarium. Their initial feeling when they went into business was that virtually everyone was a potential customer for house plants. Subsequent market research conducted for them painted a different picture. This research identified three particularly strong market segments. The first was college students ages 18-24. The next segment was retired seniors ages 65-80. The third segment was professional offices for doctors, accountants, and lawyers. The college students liked houseplants because they dressed up their living spaces. The seniors liked them because they became the focus of a hobby. The professionals did not buy them for any reason other than décor.
(Scenario 6-4)To attract the ______ in the market,the Plantatarium offers a punch card that rewards buyers with a $10 discount each time they purchase $190 worth of plants and other goods from the store.
A) emergent consumers
B) demographic segment
C) variety seekers
D) heavy users
Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and accessories, which they named The Plantatarium. Their initial feeling when they went into business was that virtually everyone was a potential customer for house plants. Subsequent market research conducted for them painted a different picture. This research identified three particularly strong market segments. The first was college students ages 18-24. The next segment was retired seniors ages 65-80. The third segment was professional offices for doctors, accountants, and lawyers. The college students liked houseplants because they dressed up their living spaces. The seniors liked them because they became the focus of a hobby. The professionals did not buy them for any reason other than décor.
(Scenario 6-4)To attract the ______ in the market,the Plantatarium offers a punch card that rewards buyers with a $10 discount each time they purchase $190 worth of plants and other goods from the store.
A) emergent consumers
B) demographic segment
C) variety seekers
D) heavy users
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79
Scenario 6-3
Keds has been trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving. But over time, competition from Sam & Libby and Easy Spirit brands has been nipping at the heels of Keds. As part of its effort to revitalize the brand several years ago, Keds' advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother saying, "She was my first, I could never tell her how to dress," with the daughter saying, "She made me feel pretty even when I had braces."
(Scenario 6-3)The information provided says that Keds was trying to "turn around a long-term slide" in its shoe business,and that "for years,it had depended on its image as the women's no-frills summer shoe." Obviously,things had changed and what Keds needed was a change in its once-successful strategy and identity to meet new market conditions.This change in strategy is called:
A) internal consistency.
B) self-expressive marketing.
C) repositioning.
D) business-to-business marketing.
Keds has been trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving. But over time, competition from Sam & Libby and Easy Spirit brands has been nipping at the heels of Keds. As part of its effort to revitalize the brand several years ago, Keds' advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother saying, "She was my first, I could never tell her how to dress," with the daughter saying, "She made me feel pretty even when I had braces."
(Scenario 6-3)The information provided says that Keds was trying to "turn around a long-term slide" in its shoe business,and that "for years,it had depended on its image as the women's no-frills summer shoe." Obviously,things had changed and what Keds needed was a change in its once-successful strategy and identity to meet new market conditions.This change in strategy is called:
A) internal consistency.
B) self-expressive marketing.
C) repositioning.
D) business-to-business marketing.
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