Chapter 8- Identifying Market Segments and Targets

1. TOP 10 Learning Questions for
(Chapter 8- Identifying
Market Segments and
Targets)
Nailah P. Cristobal
December 16, 2011
Marketing Management Class of
Prof. Remigio Joseph De Ungria
Colorful Me http://nailah08.blogspot.com

2. 1. A ______ is a more narrowly defined customer
group seeking a distinctive mix of benefits.
A. Segment
B. Local Area
C. Place
D. Niche
E. Individual
http://nailah08.blogspot.com 2

3. Four Levels of Micromarketing
Segments Niches
Local Areas Individuals
http://nailah08.blogspot.com 3

4. What does an attractive
niche look like?
• fairly small but has size, profit, and growth
potential
• unlikely to attract many other competitors
• gains certain economies through specialization
http://nailah08.blogspot.com 4

5. 1. A ______ is a more narrowly defined customer
group seeking a distinctive mix of benefits.
A. Segment
B. Local Area
C. Place
D. Niche
E. Individual
http://nailah08.blogspot.com 5

6. 2. Which is not a part of segmenting
consumer markets?
A. Behavioral
B. Geographic
C. Psychographic
D. Demographic
E. Cultural
http://nailah08.blogspot.com 6

7. Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral
http://nailah08.blogspot.com 7

8. Segmenting Consumer Markets
divide the market into
geographical units such as nations
Geographic states, regions, countries, cities
divide the market into variables
such as age and life cycle,
Demographic life stage, gender, income,
generation, social class
divide the market into groups
Psychographic on the basis of psychological/
personality traits, lifestyle,
or values
Behavioral
divide the market on the basis
of their knowledge, attitude &
response to a product
http://nailah08.blogspot.com 8

9. 2. Which is not a part of segmenting
consumer markets?
A. Behavioral
B. Geographic
C. Psychographic
D. Demographic
E. Cultural
http://nailah08.blogspot.com 9

10. 3. How many roles do people play in a buying
decision?
A. Four
B. Five
C. Six
D. Three
E. Two
http://nailah08.blogspot.com 10

11. Behavioral Segmentation
Behavioral Variables
5 Decision Roles
• Occasions
• Initiator
• Benefits
• Influencer
• User Status
• Decider
• Usage Rate
• Buyer
• Buyer Readiness
• User
• Loyalty Status
• Attitude
http://nailah08.blogspot.com 11

12. Decision Roles
Assume a wife initiates a request
5 Decision Roles that she wants a new macbook on her
birthday. The husband may then
• Initiator seek advice from his best friend
who has a macbook and is a key
• Influencer influencer in what models to consider.
• Decider After presenting the alternative
choices to his wife , he then
• Buyer purchases her preferred model which,
as it turns out, ends up being used by
• User the entire family .
http://nailah08.blogspot.com 12

13. 3. How many roles do people play in a buying
decision?
A. Four
B. Five
C. Six
D. Three
E. Two
http://nailah08.blogspot.com 13

14. 4. ___________ are consumers who buy only
one brand all the time.
A. Split Loyals
B. Switchers
C. Hard-core Loyals
D. Shifting Loyals
E. Loyalists
http://nailah08.blogspot.com 14

15. Loyalty Status
Hard-core
Loyals
Split Loyals
Shifting Loyals
Switchers
http://nailah08.blogspot.com 15

16. 4 Groups based on Loyalty Status
 Hard-core loyals-Consumers who buy only one
brand all the time.
 Split loyals-Consumers who are loyal to two or
three brands.
 Shifting loyals-Consumers who shift loyalty from
one brand to another.
 Switchers-Consumers who show no loyalty to
any brand.
http://nailah08.blogspot.com 16

17. 4. ___________ are consumers who buy only
one brand all the time.
A. Split Loyals
B. Switchers
C. Hard-core Loyals
D. Shifting Loyals
E. Loyalists
http://nailah08.blogspot.com 17

18. 5. Which statement is false?
A. The size, purchasing power, and characteristics of
the segments can be measured.
B. The segments are small and profitable enough to
serve.
C. The segments can be effectively reached and
served.
D. The segments are conceptually distinguishable.
E. Effective programs can be formulated for attracting
and serving the segments.
http://nailah08.blogspot.com 18

19. Effective Segmentation Criteria
Measurable
Substantial
Accessible
Differentiable
Actionable
http://nailah08.blogspot.com 19

20. Effective Segmentation Criteria
• size, purchasing power &
Measurable characteristics can be measured
• should be large and profitable
Substantial enough to serve
•can be effectively reached and
Accessible served
• can be distinguishable and
Differentiable responsive to marketing mix
Actionable •Should formulate effective
programs to attract and serve
http://nailah08.blogspot.com 20

21. 5. Which statement is false?
A. The size, purchasing power, and characteristics of
the segments can be measured.
B. The segments are small and profitable enough to
serve.
C. The segments can be effectively reached and
served.
D. The segments are conceptually distinguishable.
E. Effective programs can be formulated for attracting
and serving the segments.
http://nailah08.blogspot.com 21

22. 6. The ____________ Model measures the strength of
consumers' psychological commitment to brands and
their openness to change.
A. Adaptation
B. Innovation
C. Conversion
D. Modification
E. Qualification
http://nailah08.blogspot.com 22

23. The Conversion Model
Convertible Shallow Average Entrenched
Users Non-Users
Strongly Weakly
Unavailable Unavailable Ambivalent Available
http://nailah08.blogspot.com 23

24. The Conversion Model
• most likely to defect
Convertible
• uncommitted to the brand and
Shallow could switch
• committed to the brand and
Average unlikely to switch (short term)
• highly unlikely to switch in
Entrenched foreseeable future
http://nailah08.blogspot.com 24

25. 6. The ____________ Model measures the strength of
consumers' psychological commitment to brands and
their openness to change.
A. Adaptation
B. Innovation
C. Conversion
D. Modification
E. Qualification
http://nailah08.blogspot.com 25

26. 7. __________ determines which demographics,
lifestyles, and usage behaviors make the
segment distinct.
A. Segment Identification
B. Segment Attractiveness
C. Segment Profitability
D. Segment Positioning
E. Segment “Acid Test”
http://nailah08.blogspot.com 26

27. Steps in Segmentation Process
Needs-based Segmentation
Segment Identification
Segment Attractiveness
Segment Profitability
Segment Positioning
Segment Acid Test
http://nailah08.blogspot.com 27

28. Segment Identification
 For each needs-based segment, determine which
demographics, lifestyles, and usage behaviors make
the segment distinct and identifiable (actionable) .
http://nailah08.blogspot.com 28

29. 7. __________ determines which demographics,
lifestyles, and usage behaviors make the
segment distinct.
A. Segment Identification
B. Segment Attractiveness
C. Segment Profitability
D. Segment Positioning
E. Segment “Acid Test”
http://nailah08.blogspot.com 29

30. 8. To what particular segment does this
question relate to, “What geographical area
should we serve?”
A. Operating Variable
B. Purchasing Approaches
C. Personal Characteristics
D. Demographic
E. Situational Factors
http://nailah08.blogspot.com 30

31. Segmenting for Business Markets
Demographic
Operating Variable
Purchasing Approaches
Situational Factors
Personal Characteristics
http://nailah08.blogspot.com 31

32. Segmenting for Business Markets
Demographic
1. Industry: Which industries
should we serve?
2. Company size: What size
companies should we serve?
3. Location-What geographical
areas should we serve?
http://nailah08.blogspot.com 32

33. 8. To what particular segment does this
question relate to, “What geographical area
should we serve?”
A. Operating Variable
B. Purchasing Approaches
C. Personal Characteristics
D. Demographic
E. Situational Factors
http://nailah08.blogspot.com 33

34. 9. ________ can be defined in terms of the time of day,
week, month, year, or in terms of other well-defined
temporal aspects of a consumer's life.
A. Occasions
B. Benefits
C. User Status
D. Usage Rate
E. Buyer- Readiness
http://nailah08.blogspot.com 34

35. Behavioral Segmentation
Behavioral Variables
5 Decision Roles
• Occasions
• Initiator
• Benefits
• Influencer
• User Status
• Decider
• Usage Rate
• Buyer
• Buyer Readiness
• User
• Loyalty Status
• Attitude
http://nailah08.blogspot.com 35

36. Behavioral Segmentation
During the 1960’s-70’s, cranberry
was just consumed as a side-dish
Behavioral Variable during thanksgiving. Because of
pesticide scare, growers thought
• Occasions of a way to diversify and create a
year round market by producing
cranberry juice.
http://nailah08.blogspot.com 36

37. 9. ________ can be defined in terms of the time of day,
week, month, year, or in terms of other well-defined
temporal aspects of a consumer's life.
A. Occasions
B. Benefits
C. User Status
D. Usage Rate
E. Buyer- Readiness
http://nailah08.blogspot.com 37

38. 10. What type of non-users are most likely to be
acquired based on the Conversion Model?
A. Strongly Unavailable
B. Weakly Unavailable
C. Ambivalent
D. Unavailable
E. Available
http://nailah08.blogspot.com 38

39. The Conversion Model
Convertible Shallow Average Entrenched
Users Non-Users
Strongly Weakly
Unavailable Unavailable Ambivalent Available
http://nailah08.blogspot.com 39

40. Non Users
 Strongly unavailable (unlikely to switch to the brand-
their preference lies strongly with their current
brands)
 Weakly unavailable (not available to the brand
because their preference lies with their current brand,
although not strongly)
 Ambivalent (as attracted to the brand as they are to
their current brands)
 Available (most likely to be acquired in the short run)
http://nailah08.blogspot.com 40

41. 10. What type of non-users are most likely to be
acquired in the short-run based on the Conversion
Model?
A. Strongly Unavailable
B. Weakly Unavailable
C. Ambivalent
D. Unavailable
E. Available
http://nailah08.blogspot.com 41

42. TOP 10 Learning Questions for
(Chapter 8- Identifying
Market Segments and
Targets)
Nailah P. Cristobal
December 16, 2011
Marketing Management Class of
Prof. Remigio Joseph De Ungria
Colorful Me http://nailah08.blogspot.com