Packaged goods manufacturers are introducing new

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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 snowblowers, water and snow skis,
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and air-conditioning and heating systems. PTS: 1 REF: 119-120 OBJ: 08-4 TOP: AACSB Communication | TB&E Model Strategy 8. Marketers use demographic information to segment markets because it is widely available and often related to consumers' purchasing and consumption behavior. List five common bases used by mar- keters for demographic segmentation. For each base listed, give an example of a product specifically targeted to the needs and wants of the segment identified within the base. ANS: Common bases used in demographic segmentation include: age gender income ethnic background family life cycle Some examples: AGE. Cell phones, magazines, and clothing marketed to teens; beer, wine, and spirits marketed to people 20-40 years of age; retirement properties, health and wellness products, and Vespa scooters marketed to baby boomers are examples of products/services targeted at specific age groups. GENDER. Marketers of clothing, cosmetics, personal-care items, magazines, jewelry, footwear com- monly use gender as a segmentation variable. INCOME. The housing, clothing, automobile, and food markets are often segmented by income. Sam’s Club is aimed at lower-income consumers, while Costco attracts more upscale consumers. ETHNIC BACKGROUND. Many products are targeted specifically to various ethnic groups, espe- cially African Americans, Hispanics, and Asian Americans. FAMILY LIFE CYCLE. Marketers target people in different stages of the family life cycle by noting spending needs. Young singles and marrieds buy more cars, furniture, appliances, and vacations. Mar- rieds with children buy more toys, baby products, and appliances. Middle-ageds buy more luxury items and home improvements. The elderly focus spending on medical care. PTS: 1 REF: 120-122 OBJ: 08-4 TOP: AACSB Communication | TB&E Model Strategy 9. What is the family life cycle (FLC)? Using the following selected stages from the FLC, briefly de- scribe the lifestyle and purchasing needs of consumers in that stage: (1) Young single, (2) Young mar- ried without children, (3) Young married with children, (4) Middle-aged married without children, and (5) Older unmarried. ANS: The family life cycle is a series of stages determined by a combination of age, marital status, and the presence or absence of children. The FLC is a valuable basis for segmenting markets, because families' needs, income, resources, and expenditures are different in each life-cycle stage.
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YOUNG SINGLE. Members of this group have few financial burdens, are fashion opinion leaders, and are recreation oriented. They buy kitchen equipment, basic furniture, cars, vacations, and items ne- cessary for the "mating game." YOUNG MARRIED WITHOUT CHILDREN. This group is financially better off, so members pur- chase at a high rate. Many durables are bought, such as cars, home appliances, and furniture. Addition-
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