Post Grape-Nuts cereal has been marketed since the early 20th century. The quantity consumed or patronage (store visits) during a specific period is referred to as, Chip-N-Dough Cookie Company will let you select cookies and put a photo of yourself on the tin. 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. This makes your campaigns more precise because you can focus solely on serving smaller, more refined segmentsa concept known as demographic segmentation. 59. If you capture enough of them, you can earn a profit (von Hoffman, 2006). Understanding these similarities and differences allows you to isolate the market into individual categories and create specific selling points accordingly. In Figure 9-1 above, "B" represents which stage of the market segmentation process? Tornoe, J. G., Hispanic Marketing Basics: Segmentation of the Hispanic Market, January 18, 2008, http://learn.latpro.com/segmentation-of-the-hispanic-market/ (accessed December 2, 2009). This strategy is an example of. This is an example of multiple products aimed at multiple markets. ppp is in dollars and qqq is the number of units. The O3 technology refers to an innovative tennis racquet Prince Sports developed that simultaneously delivers faster racquet speed and a bigger "sweet spot" in the middle of the frame. The aggregation of prospective buyers into groups that 1) have common needs and 2) will respond similarly to a marketing action is referred to as_________. (You probably know some baby boomers who own a Nintendo Wii.) Demographics are commonly utilized to segment markets because demographic information is publicly available in databases around the world. Recently, U.S. dairies, struggling to increase milk sales, tried to change the way adults thought about chocolate milk. Type in your zip code, and you will see customer profiles of the types of buyers who live in your area. Which of the following is a disadvantage of employing a multiple products, multiple market segments strategy if NOT implemented well? E. Procter & Gamble adds a new line of baby clothing to its Pamper's stable of products. http://web.archive.org/web/20110426194400/http://www.bk.com/en/us/campaigns/subservient-chicken.html. Click the card to flip . So, of course, McDonald's adapted, even though they are a burger chain, by advertising their non-red-meat and vegetarian options. For example, over the past few decades U.S. families have been getting smaller. simplicity and cost of assigning potential buyers to segments. is incompatible with its companys goals or objectives. The fast-food chain is known to change up its menu based on regional tastes, but that also impacts their ads, like in the example below from India. This could impact both their response to marketing and their buying habits. 59. Retailing. Think of it as being similar to the way in which your professor builds up information on a PowerPoint slide to the point at which you are able to understand the material being presented. Understand and outline the ways in which markets are segmented. If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment. Mott's used a___ strategy. Berkowitz, E. N., The Essentials of Health Care Marketing, 2nd ed. After quite a while of cleaning a gross wheel every morning, I got the tip to use Pressn Seal wrap on his wheel, making clean up much easier! Want to create or adapt books like this? Market segmentation involves aggregating prospective buyers into groups that 1)____ and 2) will respond similarly to a marketing action. make intelligent "guesstimates" of the market size for each cell using a simple scale from zero to three ("0" = no market; "1" = a small market; "2" = a medium market; and "3" = a large market). The ultimate criterion for an organization's marketing success is that as a result of increased synergies. Transcribed image text: All of the following are criteria for effective market segmentation except: The market segments should be profitable. Many of the same factors can also be used to segment customers. Nearly 70 percent of Hispanics in the United States trace their lineage to Mexico; others trace theirs to Central America, South America, and the Caribbean. Chapter 3: Consumer Behavior: How People Make Buying Decisions, Chapter 5: Market Segmenting, Targeting, and Positioning, Chapter 7: Developing and Managing Offerings, Chapter 8: Using Marketing Channels to Create Value for Customers, Chapter 9: Using Supply Chains to Create Value for Customers, Chapter 10: Gathering and Using Information: Marketing Research and Market Intelligence, Chapter 11: Integrated Marketing Communications and the Changing Media Landscape, Chapter 12: Public Relations, Social Media, and Sponsorships, Chapter 14: Customer Satisfaction, Loyalty, and Empowerment, Chapter 15: Price, the Only Revenue Generator, Table 5.1 Common Ways of Segmenting Buyers, http://www.cia.gov/cia/publications/factbook, Table 5.2 U.S. The fourth step in segmenting and targeting markets that link customer needs to marketing actions is to __________. The personnel in Glads marketing department subsequently launched a Web site called 1000uses.com that contains both the companys and consumers use tips. When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids __________, which often results in extremely high research, engineering, and manufacturing expenses. The market segments should be significant in size and purchasing power. When expenses are greater than the potential increased sales from segmentation, the firm should. Prince Sports has implemented a __________ strategy with its O3 innovative tennis racquet technology. Three specific segmentation strategies that illustrate this point are. Cox, B., GM Hopes Its New Managers Will Energize It, Fort Worth Star-Telegram, August 29, 2009, 1C4C. Consumer insight is what results when you use both types of information. Upscale/Fine Dining Restaurants. Another great example is McDonald's. 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. Peoples ethnic backgrounds have a big impact on what they buy. Sellers can choose to pursue consumer markets, business-to-business (B2B) markets, or both. Product features and usage rate are both variables used to employ __________ segmentation. Also, women typically do most of the household grocery shopping and are more likely than men to donate to charitable causes. Men and women have different needs and also shop differently. The trends toward larger cars and larger houses appear to be reversing. Restaurant - Community Economic Development Perhaps they do so because some studies show that the market segment with greatest financial potential is married couples without children (Hill, et. Figure 9-9 above shows the market-product grid for a Wendys restaurant next to a large urban university campus. When considering the quick-service restaurant competition, it will be most important for Wendy's to consider not only the offerings of Burger King, McDonald's, Five Guys Burgers, and other hamburger chains but also the. Reynolds responded to this problem by creating PotLux cookware, attractive and inexpensive disposable dishes for transporting food. c. loyalty status. Marketing professionals believe they appealed to baby boomers because they reminded them of better timestimes when they didnt have to worry about being laid off, about losing their homes, or about their retirement funds and pensions drying up. The Premier Control shoe is made for runners whose feet tend to turn out. Manufacturing a product only when there is an order from a customer is referred to as. Suppose marketers want to use product differentiation and market segmentation strategies. Which of the following statements best illustrates geographic segmentation? Combining various types of marketing segmentation creates even more powerful, ROI-producing campaigns. A) alembic B) perfuming C) commissary D) aquaculture 2) The complete guide to B2B market segmentation | Sopro Which of the following is an example of a multiple products and multiple markets strategy? First, we segment the audience using market segmentation practices. the relatively homogenous groups of prospective buyers that result from the market segmentation process. performing organizational functions more efficiently. For example, Colgate 2-in-1 Toothpaste & Mouthwash, Whitening Icy Blast is aimed at people who want the benefits of both fresher breath and whiter teeth. Its aimed at us adults! Imagine that the agency decided the singer would not perform at venues located in small town communities that have less than 100,000 people. Harrahs, an entertainment and gaming company, gathers information about the people who gamble at its casinos. Rather than targeting individual leads, it targets the account level. A single marketing campaign isnt likely to appeal to everyone. To see how geodemographics works, visit the following page on Claritas Web site: http://www.claritas.com/MyBestSegments/Default.jsp?ID=20. What is an example of the tiffany/walmart strategy? Dividing the market into smaller segments, each with a common variable, allows companies to use their time and resources more efficiently. The similarities must be ____________ a segment, and the differences must be __________ segments. finding ways to improve customer-service levels. The first step in segmenting and targeting markets that links customer needs to marketing actions is to group potential buyers into segments. quick-serve breakfast items from gas stations and convenience stores. Its no secret that the United States is becomingand will continue to becomemore diverse. Marketing Exam 2 Chapter 9 - Subjecto.com Generations and Characteristics, Table 5.3 Major U.S. PRIZM NE uses zip codes and demographic information to classify the American population into segments. To find out which category youre in, take a VALS survey at http://www.sric-bi.com/vals/surveynew.shtml. c. secures better insight into strengths and weaknesses of the firm's internal resources. This variable can be viewed regarding specific age ranges or life cycle stages: babies, children, adolescents, adults, middle-age, and seniors. All of the following are market segmentation strategies EXCEPT: B. multiple products, multiple market segments. a more adult-oriented beverage than sports drinks. Heres an Instagram ad that is both age- and generation-targeted, since many millennials in their 20s and 30s use the Wife, mom, boss phrase: In addition to age segmentation, Brooklyn & Barnes presumably uses gender, occupation, and family segmentation (more on these below). The third step in segmenting and targeting markets that link customer needs to marketing actions is to __________. 216.Head-to-head positioning requires a product to. Ethnic Segments and Their Spending contains information about the number of people in these groups and their buying power. This allows teams to focus on the most important segments. Which of the following statements regarding when and how to segment markets is most accurate? So what language will you use to communicate your offerings to these people, and where? Different factors influence consumers to buy certain things. Behavioral segmentation divides people and organization into groups according to how they behave with or toward products. College dorm residents frequently want to keep and prepare their own food and snacks to save money or have a late night snack. Harrison, M., Paul Hague, and Nick Hague, Why Is Business-to-Business Marketing Special?(whitepaper), B2B International, http://www.b2binternational.com/library/whitepapers/whitepapers04.php (accessed January 27, 2010). Sushi, sashimi and poke are on the menu at this new Sunnyslope takeout-only restaurant. Choose the one alternative that best completes the statement or answers the question. In determining its positioning in the minds of customers, companies take four steps: (1) identify the important attributes for the product or brand class; (2) discover how target customers rate competing products or brands with respect to these attributes; (3) ___________; and (4) reposition the companys product or brand in the minds of potential customers. And a personalized, targeted approach is essential to effectively manage your advertising spending. Based on their responses to different questions, consumers were divided up into the following categories, each characterized by certain buying behaviors. The video game market is very proud of the fact that along with Generation X and Generation Y, many older Americans still play video games. Chapter 6 Flashcards | Chegg.com Marketing professionals want to know why consumers behave the way they do, what is of high priority to them, or how they rank the importance of specific buying criteria. In addition to better ROI, by using demographic segmentation to define and target audiences, you can: Reaching your customers on a more human level with targeted, personalized marketing creates deeper customer loyalty. This is an example of, Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to offer. Marketing professionals develop consumer insight when they gather both quantitative and qualitative information about their customers. Frequency marketing is a market segmentation strategy that focuses on, According to the Apple market-product grid above, Apple would most likely get the LEAST product synergies from the, Reebok makes shoes with DMX Shear and Foam cushioning. the market segments of potential buyers to products offered or potential marketing actions by an organization. Ethnic Segments and Their Spending. The Mahogany line is designed to appeal to African-Americans. African Americans are the second-largest ethnic group in America. You might see a snowboard shop in the same area but probably not a surfboard shop. 8.The purpose of market segmentation is to: a. reduce the market down to a size the firm can handle b. divide the market into equal size and profit regions for sales territories c. group a large number of markets together, enabling a company to serve them simultaneously d. develop a generalized definition of the market as a whole e. 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. The bureau was also able to identify segments significantly different from the Chicago segment, including blue-collar adults in the Cleveland area who vacation without their children. Advergames are electronic games sellers create to promote a product or service. method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method. Selling a product to a different market segment usually requires a different marketing action that in turn means greater costs. Which of the following is the process of getting oxygen from the environment to the tissues of the body? Which of the following is a criterion used for selecting a target market? maximizes the opportunity for future profit and ROI. Tweens might appear to be a very attractive market when you consider they will be buying products for years to come. Each variable adds a layer of information. Each cell of the complete market-product grid shows the __________. Let X=X=X= be the number of pairs of sneakers owned. Dine Like a Local - Experience Scottsdale Age is the most basic variable of them all, albeit the most important because consumer preferences continually change with age.

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