Salt Lake City South Mission President, Articles A

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 __________. With the tremendous increase in international business and global advertising brings an increase in segmentation based on ethnicity, race, nationality, and religion. Marketing professionals develop consumer insight when they gather both quantitative and qualitative information about their customers. As an owner of a Wendys fast-food restaurant, the information in Figure 9-6 above suggests. When Ann Taylor, a well-known retailer of sophisticated womens clothing, started losing sales to its own LOFT outlets that feature moderately priced casual clothes, Ann Taylor was dealing with the marketing phenomenon of __________. Psychographic information is frequently gathered via extensive surveys that ask people about their activities, interests, opinion, attitudes, values, and lifestyles. The average household spends nearly 50% of its food dollars in restaurants. tailoring goods or services to the tastes of . The units of an item available for sale during the year were as follows: There are 57 units of the item in the physical inventory at December 31. However, doing so would be dreadfully expensive, notes Juan Guillermo Tornoe, a marketing expert who specializes in Hispanic marketing issues. grouping people according to similar needs. A market-product grid is a framework to relate the __________ to products offered or potential marketing actions by an organization. The intent is to reach highly-relevant accounts with the most revenue potential, so knowing occupation is integral. Companies are interested in frequent users because they want to reach other people like them. Customers that order many goods and services from a seller often receive special deals and are served by salespeople who call on them in person. He also spends $25,000 per year on necessities, and $15,000 per year on luxuries. Samsung is using which type of segmentation variable in this example? The organization then created significantly different marketing campaigns to appeal to each group. Table 5.4 An Example of Geodemographic Segmentation for 76137 (Fort Worth, TX) shows the profiles of buyers who can be found the zip code 76137the Brite Lites, Lil City bunch, and Home Sweet Home set. The purpose of market segmentation is to respond more effectively to the wants of groups of potential buyers in order to. how the sleeper sleeps: side, back, or stomach. You wouldn't want to spend your time and money making sure your campaigns also make sense to seniorsthat would be a waste. How often the product is used (usage rate), Usage situation (daily use, holiday use, etc. True. All of the following are criterion used for selecting target market segments EXCEPT: simplicity and cost of assigning potential buyers to segments. Universal Concerts wants to bring a series of country music concerts to Canada next year. Rather than targeting individual leads, it targets the account level. Just like peoples demographics change, so do their tastes. For example, many famous fashion designers have different collections to target other age groups. Eventually, Avon created a separate product called Skin So Soft Bug Guard, which competes with repellents like Off! Dividing the market into smaller segments, each with a common variable, allows companies to use their time and resources more efficiently. Segmentation bases are criteria used to classify buyers. 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). 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)__________; (3) discover where the companys product or brand is on these attributes in the minds of potential customers; and (4) reposition the companys product or brand in the minds of potential customers. It is easy to forget to take the bowl that you brought to the dinner home with you. 7 (2007): 40618. Suppose this map describes accurately how adults see the drinks shown. The first step in segmenting and targeting markets that link customer needs to marketing actions is to. 59. Although we doubt Glad will ever go to great lengths to segment the Press n Seal market by hedgehog owners, the firm has certainly gathered a lot of good consumer insight about the product and publicity from its 1000uses.com Web site. Combining various types of marketing segmentation creates even more powerful, ROI-producing campaigns. There are five steps involved in segmenting and targeting markets. Have you ever noticed that in rural towns, McDonalds restaurants are hard to find, but Dairy Queens (DQ) are usually easy to locate? The first step in segmenting and targeting markets that links customer needs to marketing actions is to, The second step in segmenting and targeting markets that link customer needs to marketing actions is to. The fifth step in segmenting and targeting markets that link customer needs to marketing actions is to __________. Recently, U.S. dairies, struggling to increase milk sales, tried to change the way adults thought about chocolate milk. 2Telecommunications Marketing Opportunities to Ethnic Groups: Segmenting Consumer Markets by Ethnicity, Age, Income and Household Buying Patterns, 19982003, The Insight Research Corporation, 2003, http://www.insight-corp.com/reports/ethnic.asp (accessed December 2, 2009). b.importance of purchase. combining the factors of where the student lives and when (s)he is on campus. What is an example of a multiple products and multiple segments strategy? 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. To do this, companies take four steps: (1) __________; (2) discover how target customers rate competing products or brands with respect to these attributes; (3) discover where the companys product or brand is on these attributes in the minds of potential customers; and (4) reposition the companys product or brand in the minds of potential customers. At one time, firms scattered their marketing efforts (a "shotgun" approach) to reach consumers. Demographic segmentation is used for targeting specific audiences. The main types of buyer characteristics used to segment consumer markets are behavioral, demographic, geographic, and psychographic. You'll want to make sure any cultural references in your advertising make sense to the age group. a need to devise a marketing program to win customers from McDonalds and Burger King. What question should they ask when considering the potential for cannibalization on these strategies? Billboards outside stores tell Virgin Mobile users to switch your Bluetooth on to get free stuff here! (Who wouldnt want free stuff?). Imagine that the agency decided the singer would not perform at venues located in small town communities that have less than 100,000 people. Demographic segmentation is a precise form of audience identification based on data points like age, gender, marital status, family size, income, education, race, occupation, nationality, and/or religion. Income is used as a segmentation variable because it indicates a groups buying power and may partially reflect their education levels, occupation, and social classes. 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. The best segmentation approach is the one that. In China, KFC sells a spicier chicken the farther away its restaurants are from the coastal areas. Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22. This is an example of, A key question to ask before using the product differentiation and market segmentation strategies is, "Will our new products steal customers or sales from our older ones?". As you can guess, even within various ethnic groups there are many differences in terms of the goods and services buyers choose. In the Apple market-product grid shown above for its computer line, the "individuals" consumer segment seems willing to purchase each item in Apples product line. For instance, if your business is a high-end restaurant, should it be located near the local college or country club? link market needs of customers to the organizations marketing program. What should a marketer do after he or she has grouped products to be sold into categories? The purpose of the five key steps in segmenting and targeting markets that link customer needs to marketing actions is to. Moreover, both the Asian and Hispanic market segments include new immigrants, people who immigrated to the United States years ago, and native-born Americans. Geocoding can help businesses see where prospective customers might be clustered and target them with various ad campaigns, including direct mail. Many people who practice Hinduism (the predominant religion in India) observe a vegetarian diet because of their religious reverence for cows. The periodic Table 5.1 Common Ways of Segmenting Buyers shows some of the different types of buyer characteristics used to segment markets. This is an example of, Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to offer. Segmenting buyers by personal characteristics such as age, income, ethnicity and nationality, education, occupation, religion, social class, and family size is called demographic segmentation. 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. Think about some of your friends who seem a lot like you. 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. An analysis of the pillow market using a market-product grid suggests that the most important segment to target is, When a new product or a new chain steals customers and sales from older existing ones, it is referred to as, Figure 9-9 above shows the market-product grid for a Wendys restaurant next to a large urban university campus. Then they use the insights they gain to improve the next version of Quicken. Which segmentation base did these organizations use most? 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. Demographic segmentation allows you to get more specific with your marketing strategies. Manufacturing a product only when there is an order from a customer is referred to as, Performing organizational functions more efficiently, "will our new products steal customers or sales from our older ones?