You cannot effectively communicate with an audience when you know nothing about them. Which benefit is most important to you when you buy a toothpaste: The toothpastes price, ability to whiten your teeth, fight tooth decay, freshen your breath, or something else? Segmenting buyers by personal characteristics such as their age, income, ethnicity, family size, and so forth is called demographic segmentation. Since members within each of these individual groups were born around the same time and grew up with similar experiences, they often share similar characteristics and thought processes. Which of the following is a consumer demographic segmentation variable? They are also keenly interested in nonusers and how they can be persuaded to use products. Collectively, they have the most buying power of any ethnic group in America. The first step in segmenting and targeting markets that links customer needs to marketing actions is to group potential buyers into segments. cut responsibilities is called the ________. compete with competitors on similar product attributes in the same market. 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. Best Foods Company is considering expanding beyond the regional market segments now served by its Hellmanns mayonnaise. 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. "Where's the Beef?" The Story of the Most Famous Slogan Ever African Americans are the second-largest ethnic group in America. A market-product grid is a framework to relate. This multiple product and multiple market segment strategy would have the greatest difficulty meeting which of the following criteria used to form market segments? Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it serves customers needs better, doesnt reduce quality or increase price, and. The William Morris Agency represents country singer Trace Adkins in negotiations with various venues in which he could perform. They purposely targeted them on Facebook for the most engagement and click-throughs. Americans over sixty-five now control nearly three-quarters of the net worth of U.S. households; this group spends $200 billion a year on major discretionary (optional) purchases such as luxury cars, alcohol, vacations, and financial products (Reisenwitz, 2007). Table 5.3 Major U.S. Restaurant - Community Economic Development The phrase "relatively homogeneous collections of prospective buyers" is most descriptive of. Considering the rising number of U.S. women who live without spouses, entrepreneurs have launched handyman services in many markets. 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. A) alembic B) perfuming C) commissary D) aquaculture 2) P&G is using which type of segmentation variable? Virgin Mobile is helping stores capitalize on proximity marketing by sending text messages to Virgin Mobile users when they opt to receive them. The first step in segmenting and targeting markets that links customer needs to marketing actions is to group potential buyers into segments 59. The greatest benefit to consumers when a firm chooses a one product, multiple market segment strategy is, The annual Sporting News Baseball Yearbook used 17 different covers featuring a baseball star from each of its regions in the United States. 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. b. secures higher levels of customer satisfaction and loyalty. Peoples ethnic backgrounds have a big impact on what they buy. Manufacturing these different cereals is clearly more expensive than producing one but seems worthwhile if it adds to the manufacturers sales revenues and profits, doesnt reduce quality or increase price, and, A market-product grid relates the market segments to the products offered or potential marketing actions. Get the latest trends, tactics, and thought leadership for advertising conversion and post-click automation. 8 Types of Market Segmentation With Real-World Examples - FounderJar 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. Teams of engineers from Intuit visit peoples homes and spend a couple of hours watching consumers use Quicken. Old Town. A key to effectively positioning a product or brand is discovering its perception in the minds of potential customers. Youre probably familiar with some of the age groups most commonly segmented (see Table 5.2 U.S. Which of the following is a criterion used in forming market segments? 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. A variety of pasta, seafood and beef dishes round out your options. This is an example of multiple products aimed at multiple markets. group products to be sold into categories. (Recall that this is how Healthy Choice frozen dinners were created.) 1 / 46. market segment. Samsung is using which type of segmentation variable in this example? This strategy is an example of. The segmentation strategy used by Prince Sports today is, Chapter 9: Market Segmentation, Targeting, an, Beleidsplan Ruimte Vlaanderen vraagjes p 23, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus. All of the following are examples of increased customer value from organizational synergy EXCEPT: When a new product or a new retail chain steals customers and sales from older existing ones of an organization, it is referred to as, Cannibalization would mostly likely occur if. 59. The identification of demographic variables is more objective than the identification of psychographic variables, which is more subjective. Companies have to develop new products designed to appeal to Generations X and Y and also find new ways to reach them. 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. Suppose marketers want to use product differentiation and market segmentation strategies. 6) The most artistic step in preparing to meet guests' foodservice needs is ________. With respect to market targets, a company should target segments in which: a. there are the most customers. the place a product offering occupies in consumers' minds on important attributes. (Solved) - MULTIPLE CHOICE 11.All of the following are potential micro Many iconic commercials and catchphrases have existed over the years, but in the 1980s one rose above them all. Universal Concerts wants to bring a series of country music concerts to Canada next year. Its among the four main types of marketing segmentation, and perhaps the most commonly used method. But when she later tried to tear them off of the dogs paws, he bit her. The market segments should be heterogeneous. Geographic segmentation divides the market into areas based on location and explains why the checkout clerks at stores sometimes ask for your zip code. 59. A recent study by the Aberdeen Group analyzed which segmentation bases were used by the top 20 percent of 220 organizations surveyed. Generations and Characteristics) in the United States. Firms are finding that this group is a large, untapped pool of customers who tend to be more brand loyal than most. creates greater savings in production costs. Chapter 7 market segmentation, targeting, and positioning mcqs In comparison to traditional demand gen, account-based marketing is often described as a flipped funnel approach because it inverts the process. Building open and honest relationships with communication is an example of Zappos __________. \hline 6 & 0 \\ Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as, aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action, A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can, Market segmentation involves aggregating prospective buyers into groups that __________ and will respond similarly to a marketing action, Market segmentation involves aggregating prospective buyers into groups that have common needs and will. performing organizational functions more efficiently. 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. (You probably know some baby boomers who own a Nintendo Wii.) 2.2 Components of the Strategic Planning Process, 2.3 Developing Organizational Objectives and Formulating Strategies, 2.4 Where Strategic Planning Occurs within Firms, 2.5 Strategic Portfolio Planning Approaches, 3.1 Factors That Influence Consumers Buying Behavior, 3.2 Low-Involvement Versus High-Involvement Buying Decisions and the Consumers Decision-Making Process, 4.1 The Characteristics of Business-to-Business (B2B) Markets, 4.4 Stages in the B2B Buying Process and B2B Buying Situations, 4.5 International B2B Markets and E-commerce, 5.1 Targeted Marketing versus Mass Marketing, 5.3 Selecting Target Markets and Target-Market Strategies, 5.4 Positioning and Repositioning Offerings, 6.3 Types of Business-to-Business (B2B) Offerings, 7.2 Managing New Products: The Product Life Cycle, 8.1 Marketing Channels and Channel Partners, 8.3 Functions Performed by Channel Partners, 9.2 Demand Planning and Inventory Control, 9.4 Track and Trace Systems and Reverse Logistics, 10.2 Steps in the Marketing Research Process, 11.1 Integrated Marketing Communications (IMC), 11.3 Factors Influencing the Promotion Mix, Communication Process, and Message Problems, 12.1 Public Relations Activities and Tools, 13.1 The Role Professional Salespeople Play, 13.2 Customer Relationships and Selling Strategies, 13.4 Ethics in Sales and Sales Management, 14.4 Ethics, Laws, and Customer Empowerment, 15.1 The Pricing Framework and a Firms Pricing Objectives, 15.2 Factors That Affect Pricing Decisions, 16.4 Ongoing Marketing Planning and Evaluation. 59. The intent is to reach highly-relevant accounts with the most revenue potential, so knowing occupation is integral. seek a less-competitive, smaller market niche in which to locate a brand. what is the first step in the market segmentation process? 11.All of the following are potential micro bases of business market segmentation except: a.organizational innovativeness. She is now thinking of trading him in for a hedgehog.). a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. Have you ever gone to their homes and been shocked by their lifestyles and how vastly different they are from yours? Organizational synergy is the increased customer value achieved through. Probably not, but you need to perform your due diligence and understand where the majority of the people you are trying to reach land on this matrix, modifying your message according to this insight, Tornoe explains (Tornoe, 2008). discover how target customers rate competing products or brands with respect to these attributes. Scholastic Press, the publisher of the Harry Potter books in the U.S., is using which of the following segmentation strategies? 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. B2B market segmentation focuses on finding unique audience segments by examining common characteristics. Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo. Except for buffet-style restaurants, casual dining restaurants typically provide table service. Upscale/Fine Dining Restaurants. 7000 E. Mayo Blvd., Scottsdale, 602-283-4730, smarantos.com. Segmentation based on what product features are important to different customers is known 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. You'll want to make sure any cultural references in your advertising make sense to the age group. mass customization. grouping people according to similar needs. In some areas, you can switch your mobile phone to a discoverable mode while youre shopping and, if you want, get ads and deals from stores as you pass by them, which is often less expensive than hiring people to hand you a flier as you walk by3. 3Bluetooth Proximity Marketing, April 24, 2007, http://bluetomorrow.com/bluetooth-articles/marketing-technologies/bluetooth-proximity-marketing.html (accessed December 2, 2009). performing organizational functions more efficiently. And a personalized, targeted approach is essential to effectively manage your advertising spending. Combining various types of marketing segmentation creates even more powerful, ROI-producing campaigns. 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. The 80/20 rule is most closely related to which consumer segmentation variable?