ch8 identifying market segments and targets bejerano

TOP 10 Learning Questions for

Chapter 8Identifying Market

Segments and Targets

Brian T. BejeranoDecember 16, 2010

Marketing Management Class of Prof. Remigio Joseph De Ungria

http://brianbejerano13.blogspot.com/

1. What are the 4 bases for segmenting consumer markets?

A. Segments, Niches, Local Areas, IndividualsB. Demographic, Operating Variable,

Situational Factors, Personal Characteristics

C. Life Stage, Gender, Income, Social ClassD. Geographic, Demographic, Psychographic,

BehavioralE. None of the Above


Bases for Segmenting Consumer Markets

Geographic Demographic Psychographic Behavioral




Geographic – divides the market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods

Demographic – divides markets into groups on the basis of variables such as age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality, and social class


Psychographic – buyers are divided into different groups on the basis of psychological / personality traits, lifestyle, or values

Behavioral – buyers are divided in groups on the basis of their knowledge of, attitude toward, use of, or response to a product


1. What are the 4 bases for segmenting consumer markets?

A. Segments, Niches, Local Areas, IndividualsB. Demographic, Operating Variable,

Situational Factors, Personal Characteristics

C. Life Stage, Gender, Income, Social ClassD. Geographic, Demographic, Psychographic,

BehavioralE. None of the Above


2. Under the Psychographic Segmentation, what are the four groups with higher resources?

A. Innovators, Thinkers, Achievers, Experiencer

B. Believers, Strivers, Makers, SurvivorsC. Innovators, Strivers, Achievers, MakersD. Enthusiasts, Image Seekers, Makers,

BelieversE. Traditionalist, Strivers, Believers,

Innovators


VALS Segmentation System


Four Groups with Higher Resources

Innovators – successful, sophisticated, active, take charge people with high self esteem

Thinkers – mature, satisfied, and reflective people who are motivated by ideals and who value order, knowledge, and responsibility

Achievers – successful, goal oriented people who focus on career and family.

Experiencer – young, enthusiastic, impulsive people who seek variety and excitement


2. Under the Psychographic Segmentation, what are the four groups with higher resources?

A. Innovators, Thinkers, Achievers, Experiencer

B. Believers, Strivers, Makers, SurvivorsC. Innovators, Strivers, Achievers, MakersD. Enthusiasts, Image Seekers, Makers,

BelieversE. Traditionalist, Strivers, Believers,

Innovators


3. Under the Psychographic Segmentation, what are the four groups with lower resources?

A. Believers, Strivers, Makers, Survivors

B. Innovators, Strivers, Achievers, Makers

C. Traditionalist, Strivers, Believers, Innovators

D. Innovators, Thinkers, Achievers, Experiencer

E. None of the abovehttp://

brianbejerano13.blogspot.com/

VALS Segmentation System


Four Groups with Lower Resources

Believers – conservative, conventional, and traditional people with concrete beliefs

Strivers – trendy and fun loving people who are resource constrained

Makers – practical, down to earth, self sufficient people who like to work with their hands

Survivors – elderly, passive, people who are concerned about change


3. Under the Psychographic Segmentation, what are the four groups with lower resources?

A. Believers, Strivers, Makers, Survivors

B. Innovators, Strivers, Achievers, Makers

C. Traditionalist, Strivers, Believers, Innovators

D. Innovators, Thinkers, Achievers, Experiencer



4. Behavioral Segmentation; Initiator, infuencer, decider, buyer, and user are roles under _____________.

A. Behavioral VariablesB. Decision RolesC. User StatusD. AttitudeE. Age and Life Cycle


Behavioral Segmentation

Decision Roles Behavioral VariablesInitiator OccasionsInfluencer BenefitsDecider User StatusBuyer Usage RateUser Buyer Readiness

Loyalty StatusAttitude


Decision Roles

People play five roles in a buying decision: Initiator, Influencer, Decider, Buyer, and User. e.g. Assume a wife initiates a purchase by requesting a new treadmill for her birthday. The husband may seek information from many sources, including his best friend who has a treadmill and is a key influencer in what models to consider. After presenting the alternative choices to his wife, he then purchases her preferred model which, as it turns out, ends up being used by the entire family. Different people are playing different roles, but all are crucial in the decision process and ultimate satisfaction.

4. Behavioral Segmentation; Initiator, infuencer, decider, buyer, and user are roles under _____________.

A. Behavioral VariablesB. Decision RolesC. User RolesD. AttitudeE. Age and Life Cycle


5. Which of the following is true?

A. Hard Core loyals can help identify the products’ strengths

B. The conversion model measures the effectiveness of consumer psychological commitment

C. Switchers are not considered group based on brand loyalty

D. Shifting loyals show no loyalty to any brand



Loyalty Status


Hard Core Loyals

Split Loyals

Shifting Loyals

Switchers

Loyalty Status

Marketers usually envision four groups based on brand loyalty status:

Hard core loyals – consumers who buy only one brand all the time – helps identify the products’ strengths

Split loyals – consumers who are loyal to two or three brands – show the firm which brands are most competitive with its own

Shifting loyals – consumers who shift loyalty from one brand to another – company can learn weaknesses and attempt to correct them

Switchers – consumers who show no loyalty to any brand


5. Which of the following is true?

A. Hard Core loyals can help identify the products’ strengths

B. The conversion model measures the effectiveness of consumer psychological commitment

C. Switchers are not considered group based on brand loyalty

D. Shifting loyals show no loyalty to any brand



6. The conversion Model measures the strength of consumers’ _____________ to brands and their openness to change

A. Philosophical AnalogyB. Psychological CommitmentC. AttitudeD. Purchase Patterns E. Brand Loyalty


The Conversion Model

Convertible Shallow Average Entrenched

Strongly Weakly Ambivalent Available

Unavailable Unavailable


UsersNon-

Users

Conversion Model

The conversion model measures the strength of consumer’s psychological commitment to brands and their openness to change. The model determines how easily a consumer can be converted to another choice; assesses commitment based on consumer attitudes towards, and satisfaction with, current brand choices.


6. The conversion Model measures the strength of consumers’ _____________ to brands and their openness to change

A. Philosophical AnalogyB. Psychological CommitmentC. AttitudeD. Purchase Patterns E. Brand Loyalty


7. Which of the following is True?

A. The size, purchasing power, and characteristics of the segments can be measured

B. The segments can be effectively reached and served

C. Effective programs can be formulated for attracting and serving the segments

D. The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs

E. All of the above


Effective Segmentation Criteria

Measurable Substantial Accessible Differentiable Actionable


Effective Segmentation Criteria Measurable - The size, purchasing power, and

characteristics of the segments can be measured Substantial – the segments are enlarged and

profitable enough to serve Accessible - The segments can be effectively

reached and served Differentiable - The segments are conceptually

distinguishable and respond differently to different marketing mix elements and programs

Actionable - Effective programs can be formulated for attracting and serving the segments


7. Which of the following is True?

A. The size, purchasing power, and characteristics of the segments can be measured

B. The segments can be effectively reached and served

C. Effective programs can be formulated for attracting and serving the segments

D. The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs

E. All of the above


8. We can target markets at:

A. 5 levels: demographics, behavioral, geographic, psychographic, niches

B. 4 levels: segments, niches, local areas, individuals

C. 4 levels: hard core, split loyals, switchers, shifting loyals

D. 3 levels: life stage, generation, social class

E. None of the above


Four Levels of Micromarketing

Segments Niches Local Areas Individuals

http://brianbejerano13.blogspot.com/http://



We can target markets at four levels: segments, niches, local areas, and individuals. Market segments are large identifiable groups within a market. A niche is a more narrowly defined group. Globalization and the internet have made niche marketing more feasible to many. Marketers appeal to local markets through grassroots marketing for trading areas, neighborhoods, and even individual stores.


8. We can target markets at:

A. 5 levels: demographics, behavioral, geographic, psychographic, niches

B. 4 levels: segments, niches, local areas, individuals

C. 4 levels: hard core, split loyals, switchers, shifting loyals

D. 3 levels: life stage, generation, social class

E. None of the above


9. Which statement is true about an attractive niche?

A. Niche gains certain economies through specialization

B. Niche is fairly small but has size, profit, and growth potential

C. Customers will be willing to pay a premium that best satisfies them

D. Unlikely to attract competitorsE. All of the above


Niche Marketing

A Niche is a more narrowly defined customer group seeking a distinctive mix of benefits. Marketers usually identify niches by dividing a segment into subsegments. What does an attractive Niche look like? Customers have a distinct set of needs; they will pay a premium to the firm that best satisties them; the niche is fairly small but has size, profit, and growth potential and is unlikely to attract many other competitors; and the nicher gains certain economies through specialization.

9. Which statement is true about an attractive niche?

A. Niche gains certain economies through specialization

B. Niche is fairly small but has size, profit, and growth potential

C. Customers will be willing to pay a premium to the niche that best satisfies them

D. Unlikely to attract competitorsE. All of the above

10. What is the ultimate level of segmentation?

A. Local MarketingB. Demographic SegmentationC. Individual Marketing D. Niche MarketingE. Segment Marketing

Individual Marketing

The ultimate level of segmentation leads to “segments of one,” “customized marketing,” or “one to one marketing.” More companies now practice individual and mass customization. The future is likely to see more self marketing – wherein individual consumers take the initiative in designing products and brands

10. What is the ultimate level of segmentation?

A. Local MarketingB. Demographic SegmentationC. Individual Marketing D. Niche MarketingE. Segment Marketing

Reference

Reference:Marketing Management (13th Edition)Philip Kotler and Kevin Keller

TOP 10 Learning Questions for

Chapter 8Identifying Market

Segments and Targets

Brian T. BejeranoDecember 16, 2010

Marketing Management Class of Prof. Remigio Joseph De Ungria


ch8 identifying market segments and targets bejerano

Documents

innovators http

innovators innovators

survivors innovators

psychographic segmentation

excitement http

ungria http

product http

change http