79. For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm’s marketing mix. In other
words, the market segment must be
80. When Starbucks first opened, many critics suggested, “No one will pay $4 for a cup of coffee.” Starbucks’s critics suggested consumers would not
be __________ to the company’s offerings.
81. The manager of Plantation River Country Club wanted members of the very upscale club to use the bar and dining facilities more frequently. He
offered a two-for-one “happy hour” special but few members showed up. The manager did not have a grasp of what would make his target market
82. Caroline is assessing market growth, market competitiveness, and market access for each segment she has identified. Caroline is assessing the
__________ of each potential market segment.
83. After assessing the market growth potential in Mexico for his company’s baby products, Harmon wanted to evaluate market competitiveness. To do
this, Harmon would consider
84. After assessing the market growth potential and market competitiveness in Mexico for his company’s baby products, Harmon wanted to evaluate
market access. To do this, Harmon would consider
85. Which of the following would not be used in calculating the profitability of a segment?
86. Fiona is looking to expand her pet grooming business and wants to evaluate the profitability of a potential new market. The area she is looking at has
2,000 homes and Fiona estimates that 20 percent of them would be likely to use her service. She charges $45 per grooming and on average customers
groom their pets six times a year. Fiona estimates her variable costs to expand her business will be $10 per grooming and her fixed costs are $10,000.
How much profit would Fiona make on this new segment?
87. Paula is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will not
specifically help her in this analysis?
88. Ronaldo wants to develop an Internet auction-based business and is working through the STP process. After establishing his objectives, describing
potential market segments, and evaluating the attractiveness of each segment, Ronaldo now has to
89. When selecting a target market, firms will be most successful if they
90. __________ involves defining the firm’s marketing mix variables so that target customers have a clear, distinctive, desirable understanding of the
firm’s offerings relative to competitors’ offerings.
91. Whenever Donald calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local
business person and has been in business over 20 years. Donald is __________ his business relative to his competition.
92. Regina wants to position her financial services company. Regina can position her services according to all of the following except
93. Whenever the president of the local public university promotes the institution, he emphasizes the university’s price (much lower than neighboring
private colleges) and high quality. He is positioning the institution based primarily on
94. We often see advertisements touting a product as being made with natural ingredients, or being long-lasting. Marketers using these types of
promotions are positioning their products based primarily on
95. Marco was assigned to help create a positioning strategy for his employer’s products based on product attributes. He should consider
96. Almost all U.S. political candidates use some combination of red, white, and blue in their campaign posters. They are trying to position themselves
in voters’ minds using
97. Jim wants to position his firm against his competitors. In doing so he should
98. A __________ is often used to illustrate the position of a firm’s products or brands in consumers’ minds.
99. Within a perceptual map, a(n) __________ represents where a particular market segment’s desired product would lie.
100. “Why create a perceptual map?” asked David. Andreas, the senior marketing manager, gave him four reasons. All of the following are valid
reasons except
101. The perceptions of __________ are being measured in a perceptual map.
102. Which of the following segmentation methods is being used when M&M’s offers special wedding-themed packaging for customized M&M’s
(imprinted with the names of the bride and groom)?
103. Godiva Chocolates produces specially decorated boxes of candies for Valentine’s Day, Easter, and Christmas. This is an example of ________
segmentation.
104. Which of the following defines a value proposition?
105. Overriding desires that drive how we live our lives are called
106. When Victoria’s Secret offers different product lines, such as its Pink line, it is trying to capture the market by
107. When evaluating the attractiveness of the segment, if a segment is expected to react positively to the firm’s offering, we say that the segment is
108. What is the best situation in the Circles for a Successful Value Proposition framework?
109. In the Circles for a Successful Value Proposition framework, the value proposition is represented by
110. In the Circles for a Successful Value Proposition framework, the portion of the customer needs/wants circle that doesn’t overlap with anything else
represents
111. All of the following are one of the main components of a value proposition except
112. Let’s Dish is a meal-preparation service operating in three states. Customers visit a Let’s Dish store to select and partially prepare their meals,
which are then packaged for the freezer. At home, the customer can pull a meal out of the freezer and warm it in the oven or microwave. If Let’s Dish
wanted to expand into new areas of the United States, what segmentation method would probably be most useful in choosing new locations?
113. Social networking sites that compete directly with Facebook have a difficult time surviving; however, LinkedIn has survived by focusing on the
needs of business professionals, who seek to network with colleagues, share their expertise, post online résumés, and look for new jobs. What
segmentation method is LinkedIn using?
114. You are employed at a hotel near Boston University, and want to increase the hotel’s appeal to the parents of university students. How could the
hotel market itself to these parents?
Answers will vary, but might include: present the hotel as a virtual extension of the school (e.g., keep sports memorabilia in the front lobby); pitch offers
115. Why must a firm’s STP strategy be consistent with and derived from the firm’s mission and objectives?
116. In theory, why is micromarketing the ultimate in STP strategy? What is the weakness associated with micromarketing?
117. Assume you are the marketing consultant for your university, which wants to focus its marketing efforts on retention of current students. You have
a choice of segmenting the undergraduate student market on either a geographic or psychographic basis. What is the difference between the two? Which
would you recommend, and why?
118. Assume you are the marketing consultant for your university, which wants to focus its marketing efforts on recruiting new students. You have a
choice of segmenting the undergraduate student market on either a demographic or benefit basis. What is the difference between the two? Which would
you recommend, and why?
120. Develop a lifestyle segmentation scheme for students at your university, and label and describe three segments. You can think of this as developing
your own version of the VALS tool, but specifically for college students.
121. Marketers find psychographics a valuable segmentation approach. What are some of the limitations of psychographic segmentation and what can
marketers do to offset those limitations?
122. The text states that “geodemographic segmentation can be particularly useful for retailers.” Use a local retailer to describe how geodemographic
segmentation could be useful.
123. Why does loyalty segmentation make so much sense? Describe how a local pizza restaurant could employ loyalty segmentation.
124. Kim’s Kayak Tours identified active retirees living in the retirement community nearby as one of her potential target markets. She knows she can
125. Jared is looking to expand his lawn-mowing business and wants to evaluate the profitability of a potential new market. The area he is looking at has
400 homes and Jared estimates that 10 percent of them would be likely to use his service. He charges $25 per mowing and on average customers mow
their lawns 20 times a year. Jared estimates the variable costs to expand his business will be $5 per mowing and his fixed costs are $2,000. How much
126. Segment profitability asks marketers to consider segment size, segment adoption percentage, purchase behavior, profit margin percentage, and
fixed costs. Select three of these five elements and explain where marketers will find solid quantifiable information to make the calculations.
127. Ronaldo is developing an Internet auction-based business. After establishing his objectives, describing potential market segments, and evaluating
the attractiveness of each segment, Ronaldo now has to choose which target market to focus his efforts on. What factors should influence his decision?
128. Create a positioning strategy for your school’s business program. How do you want potential students to view your program?
129. UPS, FedEx, DHL, and the United States Postal Service are four major competitors in the private package delivery market. Choose one of the four
firms and describe its positioning efforts.
130. You are the marketing manager of a company that sells indoor lighting fixtures. When developing the company’s positioning strategy, you choose
to position the company’s offerings against the offerings of your competitors. What would you expect your competitors to do?
131. Imagine that you are a marketing executive at a toothpaste manufacturing company. How would you create and use a perceptual map? What
positioning criteria might you use in creating it?
132. In a perceptual map of two dimensions, how are these dimensions determined?
133. Segmentation, targeting, and positioning involve a number of processes, many decisions, and many different options. With all that effort, why are
marketers so concerned with STP?
134. Imagine that you are a marketing executive for a company that manufactures office supplies, including pens and pencils. What type of marketing
strategy would you consider for these products, and why?
135. Create an example of geodemographic segmentation.
136. Your business is best described as an entrepreneurial start-up venture with limited resources. It sells basketball sneakers for women. Describe the
marketing strategy that is most beneficial for your company.
137. Which of the segmentation attractiveness criteria is addressed when Magnolia Café asks the question, “Are there enough employees in the
government center to justify targeting the center for lunch delivery service?”
138. Which of the segmentation attractiveness criteria is addressed when Magnolia Pizzeria asks the question, “Are private food service companies
allowed to deliver pizzas on the military base?”
139. Which of the segmentation attractiveness criteria is assumed by the statement, “Build it, and they will come”?
140. Why do marketers often use perceptual maps when developing positioning strategies?
141. List the steps in the segmentation, targeting, and positioning process.
142. As the marketing manager of your firm, you are responsible for evaluating segments based on their attractiveness. Identify the five criteria and
explain how your firm would use this information to determine if a segment is worth pursuing.
143. Identify two methods used in segmenting markets and give an example of a situation where each might be used.
144. Isabella is the marketing manager of a company that manufactures salt. How can Isabella use a differentiated targeting strategy?
145. Evaluate why a company would use a micromarketing strategy versus an undifferentiated strategy.
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146. A laptop manufacturer is considering designing and marketing a left-handed laptop, with the keyboard rearranged to better suit left-handed people.
The CEO is left-handed, and has pointed out to senior management that over 10 percent of the population is left-handed. It will be expensive to design
this new model, so the laptop manufacturer wants to make sure that this is an attractive segment. For each of the five criteria of segment attractiveness,
list a question the laptop manufacturer will want to consider in evaluating the attractiveness of “left-handed laptop users” as a segment.
147. Write a value proposition for your favorite restaurant.
148. Social networking sites that compete directly with Facebook have a difficult time surviving; however, LinkedIn has survived by focusing on the
needs of business professionals, who seek to network with colleagues, share their expertise, post online résumés, and look for new jobs. Write a value
proposition for LinkedIn.
149. Healthcare Options markets health-care aids such as walkers, crutches, and portable oxygen tanks. It is located in a large city with branches in
neighboring suburbs. It needed to determine if one of its stores was profitable or if it should close it. What is the formula for determining profitability?
Category # of Questions
AACSB: Analytical Thinking 103
AACSB: Knowledge Application 46
AACSB: Technology 1
Accessibility: Keyboard Navigation 113
Blooms: Analyze 2
Blooms: Apply 48
Blooms: Create 3
Blooms: Remember 24
Blooms: Understand 73
Difficulty: 1 Easy 26
Difficulty: 2 Medium 73
Difficulty: 3 Hard 50
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Learning Objective: 09-01 Outline the different methods of segmenting a market. 65
Learning Objective: 09-02 Describe how firms determine whether a segment is attractive and therefore worth pursuing. 30
Learning Objective: 09-03 Articulate the differences among targeting strategies: undifferentiated, differentiated, concentrated, or micromarketing.
22
Learning Objective: 09-04 Determine the value proposition. 8
Learning Objective: 09-05 Define positioning, and describe how firms do it. 24
Topic: Methods of Market Segmentation 84
Topic: Positioning 31
Topic: Steps in Market Segmentation 10
Topic: Target Markets 24