MKTG 3310 Practice Exam (Final Fall 09) Nielsen PRIZM (part of Nielsen Claritas) segmentation classifies every household into one of 66 demographically and __________ distinct neighborhood segments to identify lifestyles and purchase behavior within a defined geographic market area, such as zip code. Likewise, the Chrysler 300 looks more like a muscle car than the old Chrysler Fifth Avenue your great-grandpa might have driven. Click the card to flip . Based on the targeted market, businesses can determine the location and type of stores where they want to sell their products. Men and women generally have different likes, dislikes, needs, and thought processes. Consequently, one obvious way to begin the segmentation process is to segment markets into these two types of groups. A marketing manager must be able to put a market segmentation plan into effect. Marketing synergies and efficiencies run __________ because a single kind of marketing action can reach customers that buy different product groupings. 4U.S. There are all kinds of characteristics you can use to slice and dice a market. A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as a __________. Moreover, you are very concerned about nutrition and tend not to consume childrens drinks. Generations and Characteristics, Table 5.3 Major U.S. 45. Thus, venues segmentation is a form of __________ segmentation. 59. The Walt Disney Company carefully markets two distinct Winnie-the-Poohssuch as the original line-drawn figures on fine china sold at Nordstrom and a cartoon-like Pooh on polyester bed sheets sold at Walmart. \hline 7 & 1 \\ To read about some of the extreme techniques Nokia uses to understand cell phone consumers around the world, click on the following link: http://www.nytimes.com/2008/04/13/magazine/13anthropology-t.html?pagewanted=all. Which of the following is a disadvantage of employing a multiple products, multiple market segments strategy if NOT implemented well? Marketing 3000 CH 8. However, their dorm rooms are often woefully short of space. The idea is that housing areas in different zip codes typically attract certain types of buyers with certain income levels. Research has found that women who are solely homemakers tend to spend more money, perhaps because they have more time. the place a product offering occupies in consumers minds on important attributes. 59. They tend to have distinct ways of speaking and often spend their time on separate platforms. Well discuss each of these categories in a moment. First, we segment the audience using market segmentation practices. mass customization. Recently, U.S. dairies, struggling to increase milk sales, tried to change the way adults thought about chocolate milk. Check out a sample Q&A here See Solution star_border Students who've seen this question also like: Principles Of Marketing Ethnic Segments and Their Spending, http://www.claritas.com/MyBestSegments/Default.jsp?ID=20, Table 5.4 An Example of Geodemographic Segmentation for 76137 (Fort Worth, TX), http://www.sric-bi.com/vals/surveynew.shtml, http://www.nytimes.com/2008/04/13/magazine/13anthropology-t.html?pagewanted=all, http://www.insight-corp.com/reports/ethnic.asp, http://bluetomorrow.com/bluetooth-articles/marketing-technologies/bluetooth-proximity-marketing.html, http://www.strategicbusinessinsights.com/vals/ustypes.shtml, http://www.b2binternational.com/library/whitepapers/whitepapers04.php, http://learn.latpro.com/segmentation-of-the-hispanic-market/, http://cfsinnovation.com/content/some-marketers-low-income-hot, Next: 5.3 Selecting Target Markets and Target-Market Strategies, Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, The Silent Generation, Matures, Veterans, and Traditionalists, Millennials, Echo Boomers, includes Tweens (preteens). Think about some of your friends who seem a lot like you. finding ways to improve customer-service levels. The increased customer value achieved through performing organizational functions like marketing or manufacturing more efficiently is referred to as __________. The territory for this opportunity is Scottsdale, AZ. A) alembic B) perfuming C) commissary D) aquaculture 2) The intent is to reach highly-relevant accounts with the most revenue potential, so knowing occupation is integral. Not only do age groups and generations differ in their buying habits, but also in how they respond to advertising. To market to Scion drivers, who are generally younger, Toyota created Scion Speak, a social networking site where they can communicate, socialize, and view cool new models of the car. You can get your paper edited to read like this. The strategy most likely to exploit marketing synergies and efficiencies would be to target. Online events such as the fashion shows broadcast over the Web are also getting the attention of younger consumers, as are text, e-mail, and Twitter messages they can sign up to receive so as to get coupons, cash, and free merchandise. Advergames are electronic games sellers create to promote a product or service. grouping people according to similar needs. What is Market Segmentation? The 5 Types, Examples, and Use Cases - KyLeads Companies are going to great lengths to court this once overlooked group. However, a recent survey found that the latest recession had forced teens to change their spending habits and college plans and that roughly half of older Generation Yers reported they had no savings1. The ultimate criterion for an organizations marketing success is that __________ as a result of increased synergies. Quantitative information can be improved with qualitative information you gather by talking to your customers and getting to know them. a marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products. (You probably know some baby boomers who own a Nintendo Wii.) Despite the challenges U.S. automakers face today, they have taken great pains to cater to the younger generationtodays baby boomers who dont think of themselves as being old. A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products is referred to as __________. If you sell ski equipment, you probably will want to locate your shop somewhere in the vicinity of a mountain range where there is skiing. Before you open the store, you will probably want to do some research to determine which geographical areas have the best potential. These groups have many individual cultures that come with conflicting interests, preferences, attitudes, and beliefs. The messages are entirely different, based on local customs, religions, nationality, etc. Which segmentation base and associated variable (s) should you use? Then they use the insights they gain to improve the next version of Quicken. B Marketers should use segmentation bases in this order to reduce potential costs: behavioral. Participants bring casseroles, vegetables, breads, and desserts to share. Post recently launched a campaign to increase consumption of the cereal by inviting consumers to sprinkle the crunchy cereal on yogurt, salad, or soup as a delicious addition. A positioning approach that involves seeking a less competitive, smaller market niche in which to locate a brand is referred to as __________. We design just a few products that consumers truly want, leveraging best-in-class components and micro-factory approaches for rapid design, launch, and direct delivery," said William Santana Li, president and CEO of Model E. Model E manufactures a car only when there is an order from a customer. performing organizational functions more efficiently. Automakers have begun reaching out to Generations X and Y, too. Instead of reaching an entire market or broad customer base, a brand uses this method to speak directly to a defined subset of the market. According to Harrison, Hague, and Hague, the behavioral, or needs-based, segments in B2B markets include the following: B2B sellers, like B2C sellers, are exploring new ways to reach their target markets. Which of the following in NOT a criterion to use in forming market segments? High energy costs, the credit crunch, and concern for the environment are leading people to demand smaller houses. TexMex restaurants are more commonly found in the southwestern United States. SRI asked thousands of Americans the extent to which they agreed or disagreed with questions similar to the following: My idea of fun at a national park would be to stay at an expensive lodge and dress up for dinner and I could stand to skin a dead animal (Donnelly, 2002). Psychographic information is frequently gathered via extensive surveys that ask people about their activities, interests, opinion, attitudes, values, and lifestyles. As an owner of a Wendy's fast-food restaurant, the information in Figure 9-6 above suggests Universal Concerts wants to bring a series of country music concerts to Canada next year. When a new product or a new retail chain steals customers and sales from older existing ones of an organization, this is referred to as. Based on their responses to different questions, consumers were divided up into the following categories, each characterized by certain buying behaviors. But would you change your mind if you knew that baby boomers account for 50 percent of all consumer spending in the United States? However, northern states are now seeing more of them as more people of Hispanic descent move northward. determine which target market segments to select and which product groupings to offer. For example, over the past few decades U.S. families have been getting smaller. The phrase "relatively homogeneous collections of prospective buyers" is most descriptive of. According to Toney Hsieh, CEO of Zappos, the greatest amount of time is spent. Kelloggs different types of cereals are each targeted at a different type of user. Generations and Characteristics. Segmenting buyers by personal characteristics such as age, income, ethnicity and nationality, education, occupation, religion, social class, and family size is called demographic segmentation. This allows Apple to enjoy __________. Barry, T., Mary Gilly, and Lindley Doran, Advertising to Women with Different Career Orientations, Journal of Advertising Research 25 (AprilMay 1985): 2635. Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer the question, "Would segmentation be worth doing and is it possible?". The fourth step in segmenting and targeting markets that link customer needs to marketing actions is to __________. A firm will often use multiple segmentation bases, or criteria to classify buyers, to get a fuller picture of its customers and create real value for them. a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand. Similarly, Glad, the company that makes plastic wrap and bags, found out customers were using its Pressn Seal wrap in ways the company could never have imagined. As one of these adults, you are a heavy consumer of mineral water. Trade shows and direct mail campaigns are two traditional ways of reaching B2B markets. If your offering fulfills the needs of a specific demographic group, then the demographic can be an important basis for identifying groups of consumers interested in your product. A key to effectively positioning a product or brand is discovering its perception in the minds of potential customers. Three specific segmentation strategies that illustrate this point are. Keep in mind that although you might be able to isolate a segment in the marketplace, including one based on family life cycle, you cant make assumptions about what the people in it will want. 8 Types of Market Segmentation With Real-World Examples - FounderJar One of the most popular geocoding software programs is PRIZM NE, which is produced by a company called Claritas. Shein has the right idea with their Facebook ad: They created this ad specifically for women (hence the womens swimsuits and the for women in the description). The process of segmenting a market and selecting specific segments as targets is the link between __________ and the organization's marketing program. 111.Segmentation based on where prospective customers live or work is referred to as. In the Apple market-product grid shown above for its personal computer line, the iMac is popular among all the segments Apple can target. Custom Foot guarantees your boots will be ready within three weeks. For a fraction of the cost of attending a trade show to exhibit their products, B2B sellers are holding Webcasts and conducting online product demonstrations for potential customers. Big-and-tall stores cater to the segment of population thats larger sized. Plus, Japanese cars had developed a better reputation. In market segmentation studies. Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as. The first step in segmenting and targeting markets that links customer needs to marketing actions is to. By contrast, a surfboard shop is likely to be located along the coast, but you probably would not find a snowboard shop on the beach. In a marketing context, "promotion" includes all of the following, except: Advertising. Consequently, one obvious way to begin the segmentation process is to segment markets into these two types of groups. Organizational synergy is the increased customer value achieved through. Perhaps its a combination of two or more benefits. d. lifestyle. Manufacturing these different cereals is clearly more expensive than producing only one but seems worthwhile if it adds to the manufacturer's sales revenues and profits, doesn't reduce quality or increase price, and, 59. For example, you can know what types of demographic segments you have in your customer base, such as girls from ages 13 to 18. Marketing professionals dont stop there, though. (Sudbury, MA: Jones & Bartlett Publishers, 2006), 13. This is an example of. Its aimed at us adults! Large families might be more interested in low-cost household products, as compared to a couple with the same income, but without any children. S. Maranto's Italian Bar & Market. You cant please all consumers, but you can divide the larger market into unique demographic segments and then cater to each ones needs individually. Many of the same bases used to segment consumer markets are used to segment business-to-business (B2B) markets. The market segments should be heterogeneous. This is an example of, Chip-N-Dough Cookie Company will let you select cookies and put a photo of yourself on the tin. Samsung is using which type of segmentation variable in this example? Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens. All of the following are psychographic segmentation variables EXCEPT: The place a product occupies in consumers minds on important attributes relative to competitive products is referred to as. Which of the following statements is most accurate? group products to be sold into categories. Take this Pardot ebook display ad, for example: When prospects click the ad, they go to a dedicated landing page to download the ebook: Job titles are especially necessary with an account-based advertising campaign. Schlacter, B., Sugar-Sweetened Soda Is Back in the Mainstream, Fort Worth Star-Telegram, April 22, 2009, 1C, 5C.