Ch08 TB Boone 3Ce Final MOD

8/18/2019 Ch08 TB Boone 3Ce Final MOD

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Chapter 8—Market Segmentation, Targeting, and Positioning

MULTIPLE CHOICE

1. How might business products be identified?a. as goods and services purchased for use either directly or indirectly in the

production of other goods and services for resale

b. as goods and services of any kind bought for use in the home, but sold later as useditems

c. as goods and services, such as legal services, that can be bought by businesses orindividuals but do not enter into the production of finished goods

d. as goods and services sold in a finished state for use in the home or the businessoffice

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(. 5hat are goods and services purchased by the ultimate user for personal use called?a. personal products

b. purchased productsc. consumer productsd. commercial products

ANS 2 !"S 1 #$% 1 &'% ()*+- /1 0 &emember N+" AA2S Analytic 3 "4' odel !roduct

). 6yle plans to buy new tires for a converted bus his family uses for camping trips. "he tires arethe same type used on 7eneral otors commercial trucks and can be purchased from$ndustrial "ire 2ompany. How are the tires that 6yle will buy for this bus classified?a. as business products b. as service productsc. as commercial productsd. as consumer products

ANS # !"S 1 #$% 1 &'% ()*+- /1 0 Higher +rder N+" AA2S &eflective "hinking 3 "4' odel !roduct

*. 5hat is the lumber a carpenter purchases to finish a client8s basement known as?a. a raw material b. a business productc. a consumer good

d. a home/improvement productANS !"S 1 #$% ( &'% ()*+- /1 0 Higher +rder N+" AA2S &eflective "hinking 3 "4' odel !roduct

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2hapter ; arket Segmentation, "argeting, and !ositioning


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1:. 5hich of the following market segments could a marketing organi@ation +S" effectively promote to and serve based on the segment8s si@e and profit potential?a. the staff of foreign embassies from 'uropean countries b. baby boomersc. captains and crews of sea/going vesselsd. collectors of classic 7 sports cars

ANS !"S 1 #$% ( &'% ()<+- /1 0 Higher +rder N+" AA2S &eflective "hinking 3 "4' odel !roduct

11. 5hich of the following is N+" a common basis for segmenting consumer markets?a. geographic b. psychographicc. competitived. demographic

ANS 2 !"S 1 #$% 1 &'% ()>+- /1 0 &emember N+" AA2S Analytic 3 "4' odel Strategy

1(. 5hat is a commonly used basis for segmenting consumer markets?a. geographic segmentation based on locations b. career segmentation based on industry affiliationc. national segmentation based on citi@enshipd. institutional segmentation based on membership

ANS A !"S 1 #$% 1 &'% ()>+- /( 0 &emember N+" AA2S Analytic 3 "4' odel Strategy

1). $n addition to population and geography, a researcher might combine other indicators tosegment markets geographically. +f the indicators listed, what would marketers be 0'AS"

likely to use?a. income and Cob growth b. migration patternsc. average si@e of the householdsd. product/usage patterns

ANS 2 !"S 1 #$% ( &'% () 3 (


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1B. 5hich of the following is a characteristic of a 7eographic $nformation SystemsF7$SG?a. $t is very e=pensive to use because of the high cost of leasing the technology from

the military. b. $t is complicated to use because the data is produced using logarithmic displays that

most small computer systems cannot handle.c. $t has very sophisticated digital readouts that reuire three/dimensional colour

coding to read.d. $t assembles, stores, and displays data by location.

ANS # !"S 1 #$% ( &'% ()/()B+- /( 0 &emember N+" AA2S "echnology 3 "4' odel Strategy

(:. 5hat is the +S" common method of market segmentation?a. product/related segmentation b. demographic segmentationc. economic segmentationd. psychographic segmentation

ANS !"S 1 #$% 1 &'% ()B+- /( 0 &emember N+" AA2S Analytic 3 "4' odel Strategy

(1. 5hat is another name for socioeconomic market segmentation?a. product/related segmentation b. demographic segmentationc. psychographic segmentationd. geographic segmentation

ANS !"S 1 #$% 1 &'% ()B+- /( 0 &emember N+" AA2S Analytic 3 "4' odel Strategy

((. 5hich of the following statements is N+" true regarding socioeconomic marketsegmentation?a. $t is easy in foreign markets where income and life/cycle stage are not measured. b. $t is the most common type of market segmentation.c. $t is defined by variables that include age, gender, income, occupation, and

education.d. $t is most often compiled through data taken from Statistics 2anada.

ANS A !"S 1 #$% ( &'% ()B+- /( 0 Higher +rder N+" AA2S Analytic 3 "4' odel Strategy

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(). 5hat does the cohort effect describe?a. why members of the same psychographic group decide to vote the same way b. how 7eneration uses its financial power to influence product trendsc. the predictability of demographic characteristics in analy@ing purchase habits, as

well as product/usage rates, and brand preferenced. the tendency of members of a generation to be influenced and bound together by

events occurring during the key formative years

ANS # !"S 1 #$% 1 &'% (*(+- /( 0 &emember N+" AA2S Analytic 3 "4' odel Strategy

(*. %ord otor 2ompany surveyed 1: ::: customers to analy@e their needs and preferences inautomobiles. At the end of the survey, respondents were asked to provide demographicinformation, including age. &esponses concerning preferences were strikingly similar for eachgroup within a specific five/year age range. 5hat effect is this a result of?a. the income effect b. the life/cycle effectc. the cohort effectd. the global/generation effect

ANS 2 !"S 1 #$% ( &'% (*(/(*)+- /( 0 Higher +rder N+" AA2S &eflective "hinking 3 "4' odel Strategy

(. $n terms of numbers, which age group is the largest?a. baby boomers b. 7eneration c. BI11 7enerationd. 5orld 5ar $$ 7eneration

ANS A !"S 1 #$% ( &'% (*1+- /( 0 &emember N+" AA2S Analytic 3 "4' odel Strategy

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(. 5hat greatly attributes to the 2anadian population growth and change in2anada8s racial and ethnic make/up?a. North American %ree "rade Agreement b. immigration among some minority groupsc. shifts in population to urban areasd. increasing birth rate for the entire population

ANS !"S 1 #$% ( &'% (**+- /( 0 &emember N+" AA2S #iversity 3 "4' odel Strategy

(. 2ompared with other ethnic groups, 2hinese 2anadians represent the JJJJJJJJ ethnic groupin 2anada, and are a more JJJJJJJJ segment.a. smallestK homogenous b. smallestK heterogeneousc. largestK homogenousd. largestK heterogeneous

ANS # !"S 1 #$% ) &'% (**+- /( 0 &emember

(B. How can 2hinese 2anadian consumers be described?a. as trusting in family, hardworking, and thrifty b. as having a preference for North American food products and groceriesc. as being part of a homogenous segmentd. as more likely to obtain information about products and services from national

media sources

ANS A !"S 1 #$% ( &'% (*<+- /( 0 &emember

):. 5hat does the family life cycle refer to?

a. a way to apply psychographic segmentation b. the process of family formation and dissolutionc. insights into relationships among age, occupation, income, and housingd. the 11 stages of personal growth from infancy to retirement

ANS !"S 1 #$% 1 &'% (*<+- /( 0 &emember N+" AA2S Analytic 3 "4' odel Strategy

)1. 5hich of the following is N+" a life/cycle stage?a. unmarried b. first/child familiesc. remarried

d. empty nesters

ANS 2 !"S 1 #$% 1 &'% (*>+- /( 0 &emember N+" AA2S Analytic 3 "4' odel Strategy

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)(. 5hat has been an observed change in family life cycle behaviour noted byresearchers in the past decade?a. the tendency of unmarried people becoming customers for new homes and

e=pensive furnishings b. the tendency of newly married people cooking at home almost every meal instead

of dining outc. the tendency of LboomerangM children returning home, sometimes with their own

familiesd. the tendency of parents with a second or subseuent child buying new sets of cribs,

changing tables, and so forth for each child

ANS 2 !"S 1 #$% ( &'% (*+- /( 0 &emember N+" AA2S Analytic 3 "4' odel Strategy

)). According to 'ngel8s laws, what happens as family income increases?a. the percentage spent on recreation and education increases b. the percentage spent for clothing and household operations increasesc. the percentage spent for food and household operations decreasesd. the percentage spent on housing and food decreases

ANS A !"S 1 #$% ( &'% (*+- /( 0 &emember N+" AA2S Analytic 3 "4' odel Strategy

)*. %ive years ago, -oshua spent ( percent of his *< ::: yearly income on his bachelorapartment. "oday, -oshua is earning >: ::: annually. According to 'ngel8s laws, what percentage of income will he spend on his new apartment?a. less than 1B percent b. about ( percentc. about


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)>. 5hat is psychographic segmentation based on?a. the uantitative side of the consumer demographic analysis b. the uantitative side of the consumer geographic analysisc. the individual8s residential patterns and life cycle preferencesd. the group8s psychological characteristics, values, and lifestyles

ANS # !"S 1 #$% 1 &'% (*B+- /( 0 &emember N+" AA2S Analytic 3 "4' odel Strategy

). 5hat type of segmentation divides a population into groups with similar psychologicalcharacteristics, values, and lifestyles?a. demographic b. polymorphicc. psychographicd. parallelgraphic

ANS 2 !"S 1 #$% 1 &'% (*B+- /( 0 &emember N+" AA2S Analytic 3 "4' odel Strategy

). OA0SP defines eight personality types that impact purchasing decisions. 5hich of thefollowing set of traits is N+" part of the OA0S matri=?a. Achievers and Strivers b. '=periencers and Survivorsc. "hinkers and elieversd. akers and #efiners

ANS # !"S 1 #$% ( &'% (


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*1. 5hy is segmentation by benefits used?a. to determine the marketer8s effectiveness in satisfying the consumer b. to measure brand loyaltyc. to evaluate post/consumptiond. to focus on the attributes that people seek in a product

ANS # !"S 1 #$% ( &'% (


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*>. 5hat should a firm do before beginning the market segmentation process?a. identify bases for segmenting markets b. forecast total market potentialc. forecast market shared. select target market segments

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>:. 5hat marketing strategy does urt8s ees skin/care products, manufacturedwith all natural ingredients, use?a. undifferentiated marketing b. differentiated marketingc. micromarketingd. concentrated marketing

ANS # !"S 1 #$% ( &'% (). 5hy are micromarketing techniues used?a. primarily to sell services or other intangibles b. to ma=imi@e revenue potential of large firms that have abundant financial resources

only by mass marketersc. for the sale of industrial goods by vendors onlyd. to target very specific groups or individuals

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>*. 5hat interactive medium might help micromarketers boost the effectiveness of their strategy by tracking specific demographics and communicating directly to individualswho are +S" likely to buy that product?a. customi@ed direct/mail packages b. the $nternetc. personali@ed telemarketing messagesd. fa= marketing

ANS !"S 1 #$% ( &'% (. 5hat are marketers who apply a positioning strategy wanting to do?a. make their product look as much like the market leader as possible

b. emphasi@e a product8s uniue advantagesc. make sure they clearly outline the product8s possible applicationsd. talk to specific, known users of the product

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>B. 5hat does a positioning map demonstrate?a. which companies utili@e undifferentiated marketing strategies b. what will remain constant through the entire product life cyclec. how consumers view a product relative to competitive productsd. how to introduce a new product to the marketplace

ANS 2 !"S 1 #$% 1 &'% (+- /< 0 &emember N+" AA2S Analytic 3 "4' odel Strategy

:. Home #epot introduced a new line of riding lawn mowers. However, the company believedthe residence location of the population in certain areas did not merit carrying the mowers inthat population. 5hich of the following 'S" describes why the company +S" likely madethis decision?a. it decided to use concentrated marketing b. it determined the market was saturated.c. it decided to re/position the productd. it determined re/segmentation was necessary.

ANS !"S 1 #$% ) &'% ()>/()

+- /( 0 Higher +rder N+" AA2S &eflective "hinking 3 "4' odel Strategy

1. A company is advertising a new cordless shaver during the 7rey 2up and NH0 telecasts,enabling the cordless shaver to become a big success. 5hat was the +S" likely marketsegmentation strategy used?a. 0ifestyle b. Qsage ratesc. 7ender d. Household type

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). "he target market for a product is the specific segment of consumers mostlikely to purchase that particular product.

ANS " !"S 1 #$% 1 &'% ()*+- /1 N+" AA2S Analytic 3 "4' odel Strategy

*. 2onsumer products are items purchased by consumers or businesses to be used in their homes,

offices, or factories.

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1(. A firm that uses market segmentation assumes that different types of customers with differentneeds, preferences, and purchasing power can be served by a single marketing mi=.

ANS % !"S 1 #$% 1 &'% ()<+- /1 N+" AA2S Analytic 3 "4' odel Strategy

1). "he division of the total market into smaller, relatively homogeneous groups is called market

selectivity.

ANS % !"S 1 #$% 1 &'% ()<+- /< N+" AA2S Analytic 3 "4' odel Strategy

1*. Qnited 5ay would N+" benefit from implementing market segmentation techniues becausesuch techniues are inappropriate for not/for/profits.

ANS % !"S 1 #$% 1 &'% ()<+- /1 N+" AA2S &eflective "hinking 3 "4' odel Strategy

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(:. "he number and si@e of the market segments chosen by a firm must match, not e=ceed, itsmarketing capabilities.

ANS " !"S 1 #$% 1 &'% ()+- /1 N+" AA2S Analytic 3 "4' odel Strategy

(1. arket segmentation attempts to isolate traits that distinguish a certain group from the overall

market, as well as seeking to pinpoint factors affecting their buying behaviour.

ANS " !"S 1 #$% 1 &'% ()>+- /1 N+" AA2S Analytic 3 "4' odel Strategy

((. Singles, families, and retirees could be considered market segments for a company promotingtravel packages.

ANS " !"S 1 #$% 1 &'% ()>+- /1 N+" AA2S &eflective "hinking 3 "4' odel 2ustomer

(). 2urrently, the two largest cities in the world are Shanghai, 2hina, and ombay, $ndia.

ANS " !"S 1 #$% 1 &'% ()+- /( N+" AA2S Analytic 3 "4' odel Strategy

(*. A marketing segmentation strategy aimed at women is unlikely to work because women aretoo diverse a group.

ANS % !"S 1 #$% ( &'% ()B+- /( N+" AA2S Analytic 3 "4' odel Strategy

(. "he 2anadian population is distributed uniformly across the country.

ANS % !"S 1 #$% 1 &'% ()+- /( N+" AA2S Analytic 3 "4' odel Strategy

(. ontreal is the largest city in 2anada in terms of population due to the large number ofimmigrants who have settled there.

ANS % !"S 1 #$% 1 &'% ()>+- /( N+" AA2S Analytic 3 "4' odel Strategy

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(. A census metropolitan area F2AG is considered to be the largest governmentclassification of urban data in 2anada.


(B. "o be considered a census agglomeration F2AG the geographical area must have a population

greater than 1:: :::.

ANS % !"S 1 #$% 1 &'% ()+- /( N+" AA2S Analytic 3 "4' odel Strategy

):. &esidence location within an area is an important geographic segmentation variable.


)1. %irms define core regions as the locations where they obtain between *: and : percent oftheir sales.


)(. 7eographic information systems F7$SG simplify the Cob of analy@ing marketing information by placing data in a spatial format. "he result is a map overlaid with digital data aboutconsumers in a given area.

ANS " !"S 1 #$% 1 &'% ()/()B+- /( N+" AA2S "echnology 3 "4' odel Strategy

)). Application of the geographic information systems may prove to be a sound investment for

companies because it allows them to better plan the logistics of delivery, transportation, andwarehousing, ensuring that valuable capital is not tied up in inefficiently placed assets.

ANS " !"S 1 #$% ( &'% ()/()B+- /( N+" AA2S "echnology 3 "4' odel Strategy

)*. #emographic segmentation is also sometimes called psychographic segmentation.

ANS % !"S 1 #$% 1 &'% ()B+- /( N+" AA2S Analytic 3 "4' odel Strategy

)


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)>. +ne of the main sources for demographic data in 2anada is Statistics 2anada.

ANS " !"S 1 #$% 1 &'% ()B+- /( N+" AA2S Analytic 3 "4' odel Strategy

). Sociologists attribute differences in needs and wants between age groups to the cohort effect.

ANS " !"S 1 #$% ( &'% (*(+- /( N+" AA2S Analytic 3 "4' odel Strategy

). arketers have labelled people who were in the 1;((/year/old age bracket at the time of theSeptember 11, (::1 terrorist attacks the BI11 7eneration.

ANS " !"S 1 #$% 1 &'% (*)+- /( N+" AA2S Analytic 3 "4' odel Strategy

)B. !opulation age distribution and proCected changes in age groups are important to marketers because consumer needs and wants differ notably among age groups.

ANS " !"S 1 #$% 1 &'% (*:+- /( N+" AA2S Analytic 3 "4' odel Strategy

*:. arketers are increasingly shying away from children and teen market segments because of pressures calling for social responsibility on the part of advertisers.

ANS % !"S 1 #$% ( &'% (*:+- /( N+" AA2S Analytic 3 "4' odel Strategy

*1. 2hildren can have a significant impact on household food purchases, while tweens caninfluence the purchase of cell phones and automobiles.

ANS " !"S 1 #$% 1 &'% (*:+- /( N+" AA2S Analytic 3 "4' odel Strategy

*(. 7eneration is family oriented, educated, and less likely to define themselves by their careersalone than previous generations.

ANS " !"S 1 #$% 1 &'% (*1+- /( N+" AA2S Analytic 3 "4' odel Strategy

*). 5ith a ):/year span, baby boomers are too large a population with too many varying lifestages to be useful to marketers.

ANS % !"S 1 #$% 1 &'% (*1+- /( N+" AA2S Analytic 3 "4' odel Strategy

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**. aby boomers are decreasing in popularity as a market segment due to theirdeclining disposable income.

ANS % !"S 1 #$% 1 &'% (*1+- /( N+" AA2S Analytic 3 "4' odel Strategy

*


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/(*+- /( N+" AA2S &eflective "hinking 3 "4' odel Strategy


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2hapter ; arket Segmentation, "argeting, and !ositioningANS " !"S 1 #$% ( &'% (*B+- /( N+" AA2S Analytic 3 "4' odel Strategy

>(. "he OA0S theory measures two variablesRan individual8s resources and self/motivationR and plots them on a grid of eight defining personalities. "he assumption is that each of theeight personalities will e=hibit a certain type of buying behaviour.

ANS " !"S 1 #$% ( &'% (


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2hapter ; arket Segmentation, "argeting, and !ositioning+- /) N+" AA2S Analytic 3 "4' odel Strategy

:. After a company develops a profile for its market segment and a forecast of market potential,the ne=t step is to estimate market share.

ANS " !"S 1 #$% 1 &'% (


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>. +ne product class that has been successful with undifferentiated marketingstrategies has been maga@ines.

ANS % !"S 1 #$% ( &'% (


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ANS % !"S 1 #$% 1 &'% (


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B(. 6im8s 'gg &olls were long promoted as a 2hinese dinner item. However, when the productwas evaluated by consumers, research showed they were seen as snacks, not mealtime items."he company decided to change its packaging and advertising to advocate the idea of eggrolls as an afternoon or midnight treat. "his is an e=ample of repositioning a product.

ANS " !"S 1 #$% ( &'% (+- /< N+" AA2S &eflective "hinking 3 "4' odel Strategy

ESS!"

1. #iscuss the differences between the business and consumer product markets.

ANS

2onsumer products are purchased by the ultimate consumer for personal or household use.usiness products are purchased for use either directly or indirectly in the production of

other goods or services for resale. Sometimes the same product may fall into any of theseclassifications, depending on its intended use or who purchases it.

!"S 1 #$% 1 &'% ()* +- /1 N+" AA2S Analytic 3 "4' odel !roduct

(. 7ive e=amples of how each product listed can be classified as either a consumer andIor business product.

a. shampoo b. steel bars for concrete reinforcementc. lawn mower d. computer e. automobile

ANS

Shampoo is normally a consumer product unless it is purchased by a hair salon for use inservicing customers. Steel bars would normally be considered a business product unless aconsumer purchases them from Home #epot to use in a do/it/yourself proCect. A lawn mowercould be purchased by a homeowner Fa consumer productG but could also be purchased by alawn care company Fused in the production of a serviceG. oth computers and automobiles can be consumer purchases or business products purchased by an organi@ation for salesoperations.

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). #iscuss the concept of market segmentation and how it relates to consumersand businesses.

ANS

arket segmentation is the division of the total market into smaller, relatively homogeneousgroups. A target market is the specific segment of customers most likely to purchase a particular product. 2onsumer products are those purchased by ultimate consumers for

personal use. usiness products are goods and services purchased for use either directly orindirectly in the production of other goods and services for resale. All businesses, takentogether, make up the business market. oth the business market and the consumer market can be further segmented into a large number of market segments, any one of which might be atarget market for a particular product.

!"S 1 #$% ) &'% ()< ; ()> +- /1 N+" AA2S Analytic 3 "4' odel Strategy

*. 5hat are the basic reuirements or criteria for effective market segmentation?

ANS

a. arket segments must present measurable purchasing power and si@e. b. $t must be possible and feasible to effectively promote to and serve a market segment.c. $dentified market segments must be large enough to be potentially profitable.d. "he number and si@e of chosen segments must match the firm8s marketing capabilities.

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>. 5hat does age segmentation tell a researcher about marketing opportunities?0ist the maCor age segments, and describe the buying characteristics of each segment.

ANS

arketers segment by age because it is an easy distinction to make. 'ven though products can be marketed toward more than one group, the products marketed to each age are usuallydistinctive. "he first group of note is the cohort effectRor individuals who were 1;(( years

of age during the same time in history. "heir long/term beliefs and values were shaped by thehistorical events of that time and may be reflected in their purchasing decisions. 2ohortgroups include baby boomers and 7eneration . +ther age segments include seniors, children,tweens, and teens. 2hildren, tweens, and teens influence purchases of food, candy, videogames, electronics, and music. Automobile purchases can be directly FopinionsG or indirectlyFcar seatsG impacted by children, tweens, and teens. 7eneration ers are family oriented andsavvy with electronics, which reflects in their purchases. aby boomers are straddling somany different life cycle segments they are hard to categori@e, e=cept they are still into health,fitness, and uality of life. +lder boomers and seniors hold most of the country8s financialassets.

!"S 1 #$% ) &'% (*:/(*( +- /( N+" AA2S Analytic 3 "4' odel Strategy

. 5hy would a marketer be interested in understanding a person8s family life cycle stage? 7ivean e=ample.

ANS

"he underlying theme of family life cycle segmentation is that life cycle stage is the primarydeterminant of many consumer purchases. An e=ample would be baby products. Qnlike previous generations, today it is not uncommon for couples in their late ):s or early *:s tohave young children. $f segmenting by age, marketers might consider this age group to be tooold to be interested in baby products, but they would target this group if segmenting by family

life cycle.

!"S 1 #$% ) &'% (* +- /( N+" AA2S &eflective "hinking 3 "4' odel Strategy

. '=plain 'ngle8s three laws. 5hy are they of interest to marketers?

ANS

According to 'ngle8s three laws, as income risesa. a smaller percentage of e=penditures goes for food. b. the percentage spent on housing and clothing remains about the same.

c. the percentage spent on other items, such as recreation and education, increases.

'ngle8s laws provide the marketing manager with useful rules about the types of consumerdemand that evolve with increased income. "hese laws can also help marketers evaluate the potential of a target market at all income levels.

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B. $dentify the si= psychographic consumer segments worldwide, as defined in the OA0sframework. $n what countries are these groups typically found?

ANS

StriversRvalue professional and material goodsK one/third of the Asian population arestrivers.#evoutsRvalue duty and traditionK typically found in Africa, the iddle 'ast, and developing

Asia.AltruistsRemphasi@e asocial issuesK most common in 0atin America and &ussia$ntimatesRvalue family and personal relationshipsK most common in North America and'urope%un seekersRfocus on personal enCoymentK most common in developed Asia2reativesRseeks education, technology, and knowledgeK most common in western 'uropeand 0atin America

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11. $dentify and describe four strategies for reaching target markets.

ANS

a. Qndifferentiated marketing, also known as mass marketing, is undertaken by firms that produce only one product or product line, and market it to all customers with a singlemarketing mi=. $t was a much more common practice in the past than today. b. #ifferentiated marketing is a strategy aimed at satisfying a large part of the total market,

but instead of marketing one product with a single marketing program, the organi@ationmarkets a number of products designed to appeal to individual parts of the total market. ostfirms practise differentiated marketing.c. 2oncentrated marketing is also known as niche marketing. &ather than attempting tomarket its product offerings to several market segments, a firm chooses to focus its entireefforts on profitably satisfying only one market segment. "his strategy is particularlyappealing to small firms that lack the financial resources of their competitors.d. icromarketing is more narrowly focused than concentrated marketingK it involvestargeting potential customers at a very basic level, such as postal code, specific occupation, orindividual lifestyle.

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1). 5hat is a positioning map? How does the map assist a firm with repositioningdecisions?

ANS

A positioning map provides a graphical illustration of consumers8 perceptions of competing products within an industry. Qsually such a map presents two different characteristics, such as price and perceived uality, and shows how consumers view a product and its maCor

competitors based on these traits.

&epositioning means changing the position a product holds in the minds of prospective buyersrelative to the positions of competing products. Sometimes changes in the competitiveenvironment force repositioning, even for successful products. "he positioning map helpsmarketers see the product8s current position and may help them decide where to bestreposition it.

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2hapter ; arket Segmentation, "argeting, and !ositioningM!TCHI#$

Match each item to the statement or sentence listed below.

a. target market b. market segmentationc. cohort effectd. census metropolitan area F2AG

e. differentiated marketingf. concentrated marketingg. micromarketingh. positioning mapi. OA0S C. A$+ statementk. core regionl. consumer productm. demographic segmentationn. :I(: principleo. psychographic segmentation

p. geographic information system F7$SG1. A geographic area that generates *: percent to : percent of a company8s sales is called aFnG

JJJJJ.

(. A product that is purchased for use by an individual is called aFnG JJJJJ.

). "he division of a market into smaller, relatively homogeneous groups is called JJJJJ.

*. is a psychographic segmentation system based on two key concepts resources and self/motivation.

. AFnG JJJJJ creates a graphical illustration of consumers8 perceptions of competing products.

. is a geographic area surrounding an urban core with a population of at least 1:: ::: or more.. 5ith JJJJJ, a company focuses its efforts on profitably satisfying a single market segment.

B. focuses on producing several products and using different marketing mi=es designed to satisfysmaller segments.

1:. A computer system that can tie location data to market data is called aFnG JJJJJ.

11. AFnG JJJJJ is a specific segment of consumers or businesses that are most likely to purchase acompany8s product.

1(. describes an activity, interest, or opinion that allows researchers to develop lifestyle profiles.

1). "he JJJJJ occurs when a generation of individuals are impacted by current events during theformative years of 1 to ((.

1*. is the targeting of a market based on a single variable level such as postal code, occupation,medical condition, or past purchase.

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Ch08 TB Boone 3Ce Final MOD