Marketing Final Exam

Of segment members must be available accessibility

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Unformatted text preview: ria. ANS: SUBSTANTIALITY. A selected segment must be large enough to warrant developing and maintaining a special marketing mix (commercially viable). IDENTIFIABILITY AND MEASURABILITY. The segments must be identifiable and their size measurable. Descriptive data regarding demographic, geographic, and/or other relevant characteristics of segment members must be available. ACCESSIBILITY. The firm must be able to reach members of targeted segments with customized marketing mixes. RESPONSIVENESS. The market segment must respond differently than other segments to marketing mixes; otherwise, there is no need to treat that segment separately. PTS: 1 REF: 122-123 Communication KEY: CB&E Model Customer OBJ: 08-3 TOP: AACSB MSC: BLOOMS Synthesis 5. Discuss the advantages and disadvantages of single-variable segmentation and multiple-variable segmentation. ANS: Markets can be segmented using a single variable, such as age group, or several variables, such as age group, gender, and education. Although it is less precise, single-variable segmentation has the advantage of being simpler and easier to use than multiple-variable segmentation. Disadvantages of multiple-variable segmentation include: It is often more difficult to employ than single-variable segmentation. Usable secondary data are less likely to be available. As the number of segmentation bases increases, the size of individual segments decreases. PTS: 1 REF: 123 Communication KEY: CB&E Model Strategy OBJ: 08-4 TOP: AACSB MSC: BLOOMS Synthesis 6. What is geographic segmentation? Name four reasons why a company would use a regional marketing approach. Then give a specific example of a company marketing its product(s) regionally. ANS: Geographic segmentation refers to segmenting markets based on region of the country or the world, market size, market density, or climate. Marketers might adopt a regional approach for the following reasons: Firms need to find new ways to generate sales volume because of sluggish and intensely competitive markets. Computerized checkout stations with scanners enable retailers to accurately assess which brands are selling well in their region. Packaged-goods manufacturers are introducing new regional brands intended to appeal to local preferences. Consumer goods companies use a regional approach because it allows them to react more quickly to competition. Examples of companies using a regional approach include: Cracker Barrel, as it designs its product offering to meet the cultural requirements of different regions any company selling climate-dependent products such as snow blowers, water and snow skis, and air-conditioning and heating systems PTS: 1 REF: 123-124 Communication KEY: CB&E Model Strategy OBJ: 08-4 TOP: AACSB MSC: BLOOMS Synthesis 7. What is a segmentation base (or segmentation variable)? Name the common segmentation bases used by marketers to segment consumer markets. ANS: A segmentation base (or variable) is a characteristic of individuals, grou...
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This document was uploaded on 09/29/2013.

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