Chapter 4Market Branding 1. When a brand team defines the target market of consumers for their product, they may also identify many smaller subsets of consumers within their broad market. a. True b. False ANSWER: True 2. In the world of advertising, markets are positioned, but products are segmented. a. True b. False ANSWER: False 3. STP marketing includes three factors—identifying, positioning, and informing. a. True b. False ANSWER: False 4. If General Mills decides to use the STP framework, it can divide its resources to reach a number of separate and distinct market segments. a. True b. False ANSWER: True 5. Positioning means to cut your market into pieces and focus on the piece or pieces that make the most sense. a. True b. False ANSWER: False 6. Companies can do well by spending advertising dollars to target nonusers over other user groups, since they offer the highest level of opportunity. a. True b. False ANSWER: False 7. Spending advertising dollars to get “switchers” to buy your brand may seem like a good idea, but it often results in only one-time or random purchases. a. True b. False ANSWER: True 8. Demographic segmentation is used in selecting target segments by focusing on consumers’ descriptors such as their values, beliefs, philosophies, and opinions. a. True b. False ANSWER: False 9. Demographics are rarely used to describe or profile target segments that have already been identified as prospects by other variables. a. True b. False ANSWER: False 10. Psychographic segmentation focuses on the inner mindset of consumers rather than outer aspects of their lives such as activities, interests, and lifestyles. a. True b. False ANSWER: False 11. Today, advertising tends to be used almost exclusively by businesses targeting consumer markets, and only in very rare circumstances by businesses trying to sell products to other businesses. a. True b. False ANSWER: False 12. If an advertiser sees a large potential segment being served by a competitor with a big budget, it might consider identifying and targeting smaller groups within that large segment. a. True b. False ANSWER: True The positioning model from Anne Bahr constitutes the overlapping of the proposition for the brand and persuasion tools. True b. False ANSWER: False 16. but they have all revolved around the same thematic core. Any meaningful positioning strategy needs to include several broad elements in its message—including attention- getting. and decadent—the richest and sweetest desserts found anywhere in America. True b. True b. is a company that manufactures products for babies and toddlers. variety. because it alerts consumers to a wide array of diverse functions and positive consequences related to the product. False ANSWER: False . a. The owner of the local shop buys ads focusing on extended hours and friendly service. a multiple-benefits approach is strongly suggested to satisfy many markets at the same time. False ANSWER: True 17. and complexity. One drawback of niche marketing is that a company often has to reduce the price of its product due to the smaller volume of sales it can expect. a. a. It's advertising campaigns have carried various slogans over the years. False ANSWER: False 18. False ANSWER: False 14. False ANSWER: False 15. True b. a. True b. creamy. Haley Inc. True b. a. This is an example of internal consistency. A gourmet ice cream franchise advertises itself as offering thick. This is an example of consistent positioning approach. flexibility. When formulating a positioning strategy. a. calling them delectable. gooey treats. desirous.13. The campaign alone will be enough to gain the loyalty of the younger segment. It claims to have the best customer care services and is prompt to address the grievances of its customers. True b. False ANSWER: False 21. a. is a company that manufactures cosmetic products for women. The basic premise of a positioning strategy must be simple and distinctive if it is to be communicated effectively to the target segment. a. False ANSWER: False 20. Bayt Café is launching a new advertising campaign portraying its restaurant as having very fast service and a cheerful staff to target a younger crowd. True b.19. LivTo Inc. To be internally consistent. a. True b. False ANSWER: True . the company should invest in a better Research and Development department and also create a new image for its products. a. emotional. rationalization d. False ANSWER: True 24. a. The process of cutting a market into pieces and focusing on the piece or pieces that make the most sense is termed a. True b. True b. integration c.22. its value proposition. The strategic planning triangle suggested by Thorson and Moore features as its three main aspects the campaign’s segments. True b. False ANSWER: True 25. a. differentiation ANSWER: a . in all likelihood. and its persuasion tools. no single ad can be expected to reflect all aspects of the brand’s value. and self-expressive benefits. A brand’s value proposition is a statement of the benefits of the brand that provide value to its target consumers and includes functional. segmentation b. When ad agency professionals are creating a campaign for a huge global retail firm with complex value propositions. False ANSWER: True 23. The Folgers brand team looked at the diverse market of all coffee drinkers. benefit positioning. c. Technology c. Territory ANSWER: c 28.26. market segmentation b. What does T stand for in the term STP marketing? a. Target d. When the team chose to focus on just-graduated-20-somethings. position strategy c. positioning. segmenting. benefit positioning d. What is the first step in STP marketing? a. d. Tangible b. then broke it down by age. targeting. ANSWER: d 27. it was a. target marketing ANSWER: a . b. d. a. b. Sell The Product ANSWER: c 31. Targeting. Positioning d. Segmenting. What does the acronym STP mean? a. the term refers to an attempt to give a brand a certain meaning relative to its competitors. The Folgers team aligned its marketing mix in a design that would represent a particular identity. positioning d. c. showcasing certain themes and values. segmenting. This demonstrates the process of a. ANSWER: c 30. switching. redistribution c.29. shaped to gain distinctive approval from the just-graduated-20-somethings. commoditization. targeting ANSWER: c . singularization. segmentation b. In STP marketing. Sell To People c. Target. Product b. Sales. and more frequently. For most products and services. or their image of the brand. lead users b. are consumers who are so committed to a brand that their consumer behavior toward it borders on the pathological. Heavy users are a costly target segment and much can be spent in getting their business merely to have it disappear just as quickly as it was won. b. than others. switchers c. Heavy users usually form less than one percent of users by volume. Brand-freaks ANSWER: d 34. Heavy users may differ significantly from average or infrequent users in terms of their motivations to consume. These consumers are called . c. d. ANSWER: b . What is a downside to adopting a heavy-user-focused segmentation plan? a. a. variety seekers ANSWER: a 33. their approach to the brand. Variety seekers c. some users will purchase much more.32. Switchers d. a. emergent consumers d. Emergent consumers b. Heavy users have little knowledge of the brand and negligible social influence. discount coupons. ANSWER: b 37. emergent consumers ANSWER: d . be extremely committed to a brand. heavy users ANSWER: c 36. c. b. Which segment specifically offers marketers an important opportunity to build future business by luring first-time buyers? a. need little encouragement to continue purchasing a brand. lead users c. much can be spent in getting their business merely to have it disappear just as quickly as it was won. brand-freaks c. buy brands based on sales.35. lead users d. The consumers termed turn out to be a costly target segment. variety seekers tend to a. or other incentives. a. brand freaks b. d. As a segment. switchers b. switchers d. be unusually enthusiastic and often excessive in their purchasing activities. psychographic c.. ANSWER: d 40. Characteristics and traits such as age. race. a manufacturer of high-end cell phones and laptops.15.DISC: Customer KEYWORDS: Bloom's: Knowledge . point-of-entry marketing. gender.BUSPROG: Reflective Thinking STATE STANDARDS: United States . has designed a campaign that specifically targets a group of emergent consumers and aims to persuade them to try its products. This campaign is an example of: a. income. heavy-user-focused marketing. Ultima Inc. demographic ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI. guerilla marketing. variety seekers b. heavy users d. b. The one key characteristic that all types of share is that their brand preferences are still under development.38. brand-freaks c. ambush marketing. marital status. and occupation are widely used in segmentation. education.6-2 NATIONAL STANDARDS: United States . c.Ohio . emergent consumers ANSWER: d 39. competitive d. geographic b. d. a. a. SIC Codes d. Which system has identified 62 market segments based on zip codes and the personal characteristics of their residents. They represent the youngest demographic segment in the U. Which of the following is true about the demographic group known as "woopies"? a. c. d. psychographic b. They are identified as consumers over 50 years of age. a. topography. Climate. who will have great buying power within a few years.S.41. relationships. creating a well-known tool for geodemographic segmentation? a. or even geographic locations. including habits involving eating and food preparation. and national region have been found to make dramatic differences in consumption. Thorson and Moore’s model b. They are identified as free spirits in their 20s and 30s who have yet to commit to long-term careers. entertainment. lifestyles. commitment-level-based c. community size. They consist of pre-teens and early adolescents. geographic d. and recreation. ANSWER: c 42. PRIZM c. b. VALS ANSWER: b . demographic ANSWER: c 43.This is the basis of segmentation. and opinions ANSWER: a 46.6-2 NATIONAL STANDARDS: United States .OGUI. and opinions.Ohio . is a term that advertisers created in the mid-1960s to refer to a form of research that emphasizes the understanding of consumers’ activities. interests. Why are systems such as PRIZM used widely by advertisers for segmentation? a. interests. Estée Lauder b. Micrographics ANSWER: c 45. Demographics b. customizing lifestyle segmentation with a particular focus? a.44.000 consumers and created five distinct segments that it could then target in different ways. Folgers c. because they provide deep insights into consumers' motivations d. Mobil d.BUSPROG: Reflective Thinking STATE STANDARDS: United States . because they provide deep segment description b. because they emphasize the understanding of consumers’ activities. a. because they allow for segmentation on the basis of frequency of usage c. Which company was highlighted in the text because it interviewed 3. Pillsbury ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.DISC: Customer KEYWORDS: Bloom's: Knowledge . Geodemographics c.15. Psychographics d. geopsychographic b. repositioned d.47. the competitive field d. psychographic research. c. lifestyle ANSWER: d 48. reprographic d.” and “Functional Feeders” are all segments identified by Pillsbury based on segmentation. and professional tools. demographic b. As highlighted in the text. In recent years skillful marketers have merged information on where people live with the U. lifestyle segmentation. geodemographic ANSWER: d 49. a. Census Bureau’s demographic data to produce a form of market segmentation known as segmentation.S. “Careful Cooks. a. micrographic c. and hair salons to purchase its line of hair care products. niche c. spas. A firm hires an agency to persuade hairdressers. ANSWER: b . In this case.” “DownHome Stokers. business-to-business marketing. grooming equipment. b. the agency is specifically involved in: a. whether the segment is currently growing. or the companies that are vying for that segment’s business. competitive field d. c.50. business market c. ad clutter b. the organization’s ability to provide it. What is a market niche? a. Perhaps the most fundamental criterion in segment selection revolves around what the members of the segment want versus: a. A major criterion to consider during segment selection is the . ANSWER: d 51. how much they are willing to pay for it. how much they are willing to settle for. target market ANSWER: c 52. A small group of consumers with unique needs and who typically are willing to pay a premium to have those needs met b. A market segment that is characterized by high sales volumes and low prices ANSWER: a . A large group of heavy users who are loyal to a brand because it provides value at a relatively low price c. a. d. b. A market segment that is served by many firms and is characterized by high levels of competition d. hiring more order-takers d. The model shows that a brand’s best opportunity for success involves the overlapping of four important factors: current relevance to the consumer. bought extras besides just gas. SWOT analysis b. credibility or consumer belief in the brand. A fast-food restaurant is attempting to position itself as the best choice when you're in a hurry because it serves all customers within 90 seconds. a. expanding on its menu b. PEST analysis c. it had many good reasons to select the particular target market that it did. Porter's four corners ANSWER: c . But one issue that was NOT a factor was that the segment a. Symantec brand opportunity d. and “stretch” or the potential for consumer relevance over time. hanging up digital timers behind the counter ANSWER: a 55.53. To maintain internal consistency. EXCEPT for which one? a. In Mobil’s positioning as the "Friendly Serve" station. d. b. had potential for growth. the firm might take all of the following steps below. spent the largest amount of money at service stations. c. had the greatest number of consumers in sheer numbers. differentiation or a recognition of uniqueness. ANSWER: b 54. adding extra drive-up windows c. 56. like State Farm's “Good Neighbor” campaign. Exedrin b. Jack Daniels c. division of a market into segments ANSWER: a . successful campaign that epitomizes “simplicity” in defining its distinctiveness. identification of the target segment c. ANSWER: a 57. doesn’t need to target a particular segment. a critical ingredient in a good positioning strategy? a. specification of the brand’s value proposition d. One big plus from a product position that stays consistent over time. is more likely to break through advertising clutter. Which firm did the text highlight as one with a long-term. c. selection of a mix of persuasion tools b. Which of the following forms the final apex of the strategic planning triangle proposed by Esther Thorson and Jeri Moore? a. is that it a. Nike d. is easily repositioned. successfully reaches nonusers. b. d. Tylenol ANSWER: b 58. 59. it can take resources away from those that require persuasion. identification of the various persuasion tools that may be deployed as part of the campaigns d. identification and specification of the target segment c. Thorson and Moore place as the paramount apex in their model. d. heavy users usually require constant encouragement to keep consuming a product. brand orientation c. a. brand extension b. b. it shifts focus to emergent consumers who need to be convinced to purchase the product. A potential downside of a heavy-user-focused segmentation plan is that: a. A is a core idea that frames an ambition or aspiration for a brand that will be relevant to target audiences over time. specification of niche segments within larger segments ANSWER: b 61. brand initial d. specification of the brand’s value proposition b. brand platform ANSWER: d . heavy users do not differ significantly from infrequent users in terms of their motivations to consume. c. a. ANSWER: a 60. What are the three fundamental options that advertisers have when choosing a positioning theme? a. ANSWER: d . lifestyle segmentation. or psychological ANSWER: b 63. psychographic. demographic. or SIC d. specification of the brand’s value proposition. functional. emotional. or competitive c. The American Pork Producers has been running a long-term campaign with the tagline "Pork." This is an example of a. d. benefit. The second important apex in Thorson and Moore's strategic planning triangle entails: a. b.62. user. VALS. competitive positioning. benefit positioning. or geographic b. demographic segmentation. The other white meat. specification of niche markets within a large segment ANSWER: c 64. identification and specification of the target segment. d. c. c. STP. b. identification of the various persuasion tools that may be deployed as part of a campaign. b. all of which must be included in a given advertising campaign. ANSWER: b . value proposition d. The number of heavy users in a segment is usually very large. though no single ad can reflect all three aspects. a. a. Growth potentials for all segments are generally very low. universal product code b. and/or self-expressive benefits delivered by the brand. memorandum of understanding c. though only tangible product benefits are truly emphasized. and self-expressive benefits. It is enough to assess the size of a segment to select it as a company’s target segment.65. though children are excluded because their decision making is controlled by parents. d. c. warranty ANSWER: c 67. Which of the following is true of segment selection? a. c. A brand’s is a statement of the functional. emotional. b. ANSWER: d 66. emotional. Marketers are inclined to devote resources to segments projected for dramatic growth. A powerful value proposition in most situations today includes functional. d. each catering to a distinct segment. Geographic segmentation ANSWER: a 69. Heavy-user-focused segmentation c. Benefit segmentation b. Alo. interests.68. offers two product lines. benefit c.. With its brand Amo the company targets a niche market of women who are looking for makeup with anti-ageing properties. using? a. a. The use of psychographics to focus on differences in consumers’ activities. a manufacturer of cosmetics. Lifestyle segmentation d. Its most popular brand. geographic d. lifestyle ANSWER: d . heavy-user-focused b. and opinions usually results in segmentation. What type of segmentation is Veda Inc. Veda Inc. targets women who want makeup that will last at least ten hours after application. (Scenario 6-1) The position for any one market segment should a. change occasionally to break through advertising clutter. Both razors incorporated technological and design enhancements to better address the specific shaving needs of women. may or may not have been an STP effort. and shaving preparations. The two new razors were Venus Vibrance the first power wet shaving system for women. ANSWER: d 71. also hold an appeal for those outside the segment. nearly 40 million women now use Venus products. b. a category that includes blades. More recently the company has launched Venus Embrace. be easily communicated to consumers. The Gillette Company is the world leader in male grooming. the first five-blade women’s razor. ANSWER: d . be identical to positions selected for other segments. and will build on current market segments. Several years ago. d. (http://www. depending on whether Gillette has created sub-segments of these large segments. a premium-performing disposable razor. fit all the criteria of an STP effort by Gillette. c. may or may not have been an STP effort. c. and Venus Disposable. Scenario 6-1 Headquartered in Boston. d. b. broadening the portfolio of the top-selling Venus brand. “Reveal the Goddess in You. Gillette announced the launch of two new high- performance women's razors. depending on whether all possible segments are being targeted by Gillette.com/en_US/products/index. the world's most successful franchise in female shaving.” According to its website. razors.jsp) 70.gillettevenus. (Scenario 6-1) The original plan to sell new products to the female market a. with the tagline. cannot be considered an STP effort because Gillette is targeting multiple segments. a distinct geographic profile. (Scenario 6-1) is a tool more likely employed by Gillette to supplement the use of demographic data by providing information about consumers’ activities. Gillette has matched what members of different segments want with a.72. usage pattern ANSWER: b 73. demographic c. the company's ability to provide it. PRIZM c. interests. a single appeal. c. Psychographics b. b. Bass diffusion ANSWER: a . ANSWER: a 74. benefit b. STP d. (Scenario 6-1) According to the information provided here. and opinions. Gillette has identified market segments along lines. a. a heavy-user-focused campaign. a. d. (Scenario 6-1) It appears that the management at Gillette has performed the fundamental task behind effective segmentation. geographic d. It targets segment A by providing them with samples of other Sunshine products with the purchase of one box. Scenario 6-2 Sunshine Meals Inc. etc. Geographic segmentation marketing c. variety users d. (Scenario 6-2) Which of the following marketing strategies is more likely to have been used by the company to target segment B users? a. and require readymade mixes as their breakfast solution. competitive users ANSWER: b 76. Point-of-entry marketing ANSWER: d . Niche marketing b. 75. (Scenario 6-2) The consumers of segment A can be classified as . Segment C consists of consumers who are not consistent buyers and targeting these consumers could prove a loss for the company. Segment B consists of a large number of college students and individuals who have recently begun living on their own. The average user consumes one box every week. It finds that segment A consists of a small group of individuals who purchase four boxes of the brand’s cereal every week. pancake mixes. The company conducts a study to segment its consumers. is a company that sells breakfast foods such as cereals. It targets these consumers by providing more variety with pancakes and waffle mixes. Ambush marketing d. heavy users c. a. fickle users b. brand freaks c. this would be an example of a. lead users d. geodemographic segmentation ANSWER: a . geographic segmentation c. (Scenario 6-2) Segment C consumers are more likely to be . point-of-entry marketing d. emergent consumers b.77. niche marketing b. begins producing a range of sugar free marmalades to target a small segment of health conscious consumers who would be willing to pay a premium price for products appropriate for their diets. a. variety seekers ANSWER: d 78. (Scenario 6-2) If Sunshine Meals Inc. c. This concept already has a number of established companies targeting it. This is not based on a realistic approach to segmentation." 79. As part of its effort to revitalize the brand several years ago. "She was my first. it had depended on its image as the women's no-frills summer shoe to keep sales moving. According to an issue of Brandweek magazine at the time. Emergent b. (Scenario 6-3) Instead of “mothers and daughters. Geographic d. Lifestyle c. ANSWER: d 80." with the daughter saying. competition from Sam & Libby and Easy Spirit brands have been nipping at the heels of Keds. Scenario 6-3 Keds has been trying to turn around a long-term slide in its shoe business." Copy on the first ad included the mother saying. Keds's advertising agency developed a campaign that focuses on the warm. For years. "The new ads really go for the heart. I could never tell her how to dress. close relationships between mothers and daughters. But over time. This is poorly defined and provides no clear orientation or identity.” why didn’t Keds define its target segment simply as “women”? a. d. b. Usage pattern ANSWER: b . "She made me feel pretty even when I had braces. (Scenario 6-3) Which of these segmentation techniques would provide the most insight for Keds's advertising agency in the creation of its advertisements? a. This is based on demographic criteria for which media is difficult to define. (Scenario 6-3) The information provided says that Keds was trying to “turn around a long-term slide” in its shoe business. c. This change in strategy is called: a.” Obviously. internal consistency. it had depended on its image as the women's no-frills summer shoe. d. and Brandweek magazine said that the new Keds ads "really go for the heart. things had changed and what Keds needed was a change in its once-successful strategy and identity to meet new market conditions. business-to-business marketing ANSWER: c . and that “for years.81. identifying emotional benefits. targeting nonusers. b. self-expressive marketing. b. delivering its promise. c. using VALS data. d. ANSWER: a 82." This points to the campaign’s focus on a. repositioning. (Scenario 6-3) The copy for this campaign features moms and daughters commenting on their close relationships. (Scenario 6-4) To attract the in the market. (Scenario 6-4) The Plantatarium sends out direct mail offers to consumers in a nearby zip code area who have household incomes of greater than $40. demographic segment c. This is an illustration of a strategy. accountants. The next segment was retired seniors ages 65-80. demographic segmentation c. variety seekers d. The seniors liked them because they became the focus of a hobby. a.000 a year. Their initial feeling when they went into business was that virtually everyone was a potential customer for house plants. a. geographic segmentation b. heavy users ANSWER: d 84. The professionals did not buy them for any reason other than décor. The third segment was professional offices for doctors. Scenario 6-4 Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and accessories. the Plantatarium offers a punch card that rewards buyers with a $10 discount each time they purchase $150 worth of plants and other goods from the store. psychographic segmentation d. and lawyers. The college students liked houseplants because they dressed up their living spaces. 83. geodemographic segmentation ANSWER: d . which they named The Plantatarium. Subsequent market research conducted for them painted a different picture. The first was college students ages 18- 24. emergent consumers b. This research identified three particularly strong market segments. so the Garretts have decided to devote a small corner exclusively to rare cacti. benefit d. segmentation.15.OGUI. This suggests that The Plantatarium is focusing on what different consumers want from its offerings. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP." This phrase is a reflection of the firm's a. repositioning ANSWER: c 86. business-to-business b.6-4 NATIONAL STANDARDS: United States . a. target market. b. (Scenario 6-4) The Plantatarium promotes itself in different media using the phrase "An out-of-this-world selection of unique plants. demographic segmentation. geographic segmentation. (Scenario 6-4) A small group of customers have mentioned that they would like to browse through several varieties of cactus. psychographic segmentation.85.BUSPROG: Analytic STATE STANDARDS: United States .Ohio . psychographic c. (Scenario 6-4) The owners of this business have decided to carry a great deal of plants that flower throughout the year because most consumers have said they like them for the cheerful feeling they give.DISC: Promotion KEYWORDS: Bloom's: Application . d. These customers constitute an example of a. market niche. b. that is. c. positioning strategy. c. VALS profile. ANSWER: a 87.DISC: DISC: PromotionMarketing P . demographics. d. b.guaranteed free box seats to any match (100 seats total) • "Strike Club" . students who have maintained a 3. diverse markets. These students would best be described as a. competitive users.000 annual donation to the bowling program .$1.students who have maintained a 3.000 annual donation to the bowling program . the school's administrators decided to institute a "priority seating" plan in which fans would be given access to advance tickets based on the following schedule: • "Lanemaster Club" . As a result. ANSWER: c 89. c. emergent consumers. d.00 to any match (100 seats total) 88.9 GPA or better . c. heavy users. (Scenario 6-5) A group of about 30 students who are roommates and friends of the team members -.guaranteed free bleacher seats to any match (100 seats total) • "Kingpin Club" .$10.participants in local recreation bowling leagues . ANSWER: c . positioning strategies. Seating in the campus bowling alley only allows for 400 fans to attend their matches. Long lines for seats have formed in the past. with many fans leaving disappointed because they could not get a ticket.guaranteed bleacher seats for $10.guaranteed bleacher seats for $1. (Scenario 6-5) Based on the planned schedule described here. d. Scenario 6-5 Madison State University has a reputation for having a powerful intercollegiate coed bowling team.9 GPA would be described as one of the bowling team's a.many are casual bowlers themselves -. nonuser groups.00 to any match (100 seats total) • "Alleycat Club" . b. target segments. variety seekers.have attended every match for nearly three years. Ohio . a. He then keeps track of which neighborhoods are the strongest supporters.OGUI. a. heavy-user-focused c. a. encouraging residents to join one of the supporting clubs. the MSU Athletic Director looks at the city map. niche b. and which may need more prompting in the future. (Scenario 6-5) In marketing materials created to target fans.BUSPROG: Analytic STATE STANDARDS: United States . chooses a different local neighborhood. geographic c. (Scenario 6-5) With the new plan. lifestyle d. demographic c. the slogan "Two hours of wholesome fun for all ages" is used to attract ticket-buyers. the bowling team is attempting to encourage local bowlers and other bowling aficionados to come watch the team in action. In this way he is using a segmentation strategy. psychographic b. demographic ANSWER: c 91. and knocks on doors. geodemographic d. (Scenario 6-5) Each summer. demographic ANSWER: c 92. emergent b. geographic d.15. This is an example of segmentation. This philosophy is an example of segmentation.90.DISC: DISC: PromotionMarketing P .DISC: Promotion KEYWORDS: Bloom's: Application . benefit ANSWER: d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.6-2 NATIONAL STANDARDS: United States . or their image of the product. Positioning involves designing and representing a product so it will occupy a distinct and valuable space in the marketplace. ANSWER: Student examples will vary. Their preferences are still under development. their approach to the product. Targeting involves choosing the specific subgroup—the target segment—as the focal point of the marketing efforts. A heavy-user focus by an advertiser takes attention and resources away from those who do need encouragement to purchase the marketer's brand. or lifestyles that may have a certain need or desire for the product. The college students who may try Brownsworth Brothers Coffee are considered emergent consumers. Using this as an example. needs. They may ultimately demonstrate brand preference. What are the disadvantages of the heavy-user strategy? What term is used to describe the college students the company is considering targeting? What are the advantages of targeting this new segment? ANSWER: Heavy users of Brownsworth Brothers Coffee may need no encouragement at all to keep consuming. Perhaps most importantly. Brownsworth Brothers Coffee is a mail-order business run by two brothers directly from their Hawaiian plantation. . Other methods that are used include demographic. while products are positioned. explain the differences between segmenting. and diverse markets into manageable submarkets. and get hooked on it. For segmenting to be useful. brand-loyal users. One of the most common ways to approach this task is by analyzing consumption patterns and commitment levels (heavy users. They are considering switching target segments even though this group is comprised largely of people who don’t drink coffee. but rather. geographic. Depending on the product. various heavy users may be significantly different in terms of their motivation to consume. 94. This target audience may produce minimal profits in the short term. Think about a product that you have used in the past week. Overall. or customer segments. Often. Positioning strategy is created when a company selects key themes and concepts to feature regarding the product when communicating its distinctive qualities. a marketer must be able to reach these resulting submarkets with its message. the largest segment is not chosen as the target. for Brownsworth. but they’re considering a new focus on college students. there is the strong opportunity for gains in the long-term if they begin their initial coffee drinking with this brand. variety seekers or switchers. it is the particular segment made up of certain individuals with similar interests. nonusers. markets are segmented. However. Segmenting involves breaking down large. emergent consumers). or possibly even brand loyalty. or have just started to drink coffee and don't consume anywhere near as much as the heavy users.DISC: Customer KEYWORDS: Bloom's: Application .93. heterogeneous. and benefit segmentation. like it. and positioning in the STP approach to marketing. They have targeted heavy users in the past. geodemographic. psychographic. their approach to marketing will vary also. targeting. and use your example to explain your answer. or those new to the market or industry can be targeted differently than long-standing business customers. Then describe how business markets are segmented. such as analyzing their usage rates and geographic locations. However. such as identifying business markets based on their stage in the purchase process. ANSWER: Consumer markets are basically made up of individuals. parts. The small size of a market niche often means it would not be profitable for more than one organization to serve it. which are then resold to other businesses or directly to households. simple sales-related methods are often used. Business markets are made up of institutional and industrial buyers who purchase items. the threat of competitors developing imitative products to attack the niches is reduced. 96. . potential prospects. or other materials to be used in the production of other goods and services. large segments are usually established segments that many companies have identified and targeted previously. Thus. these large segments may be poorly defined.95. when a firm identifies and develops products for market niches. By definition. supplies. Instead. these consumers are willing to pay a premium price to the firm that specializes in meeting those needs. What is the difference between a consumer market and a business market? Give an example of each. Typically. first-time buyers. and can be specifically addressed by the company’s advertisements and promotions. But some methods used for consumers—such as psychographic or lifestyle segmentation— normally do not translate well to business buyers. or households—those markets for products and services that are purchased by people or their families and housemates to fulfill various personal needs. Describe the concept known as niche marketing. In this way. What are the competitive advantages of marketing to a niche? ANSWER: Niche marketing is based on the premise that smaller is often better when selecting target segments. Niche marketing involves identifying and serving a relatively small group of consumers who have a unique set of needs. Business markets can be segmented in some ways similar to the methods used for consumer markets. equipment. the former CEO of InterBrand. That way. It also provides a foundation and structure that will maintain this information as new members join the team and work on new promotional efforts for the brand. It is basically a way to capture the brand strategy on paper. differentiation or a recognition of uniqueness. The value proposition offers a way to capture the full record of a brand and all of its characteristics and benefits. It makes things crystal clear about what is believed and known about the brand. 98.97. Once the firm has segmented the market and selected its targets. the brand’s best position. and “stretch” or the potential for consumer relevance over time. What is a value proposition? Explain why it is useful—even critical—to an organization. They may now involve branded entertainment. and self-expressive benefits offered by the brand. It consolidates all the customer benefits offered by a product. to its brand. Over time. everyone on the team can share this clear set of values. benefits. It helps the consumer understand what the product does. Some brands -.This model shows that a brand’s best opportunity for success involves the overlapping of four important factors: current relevance to the consumer. the positioning strategy should come naturally. The value proposition for these products is even more important in order to keep all brand information clear and consistent throughout all promotional efforts. It can involve several themes: One of the best positioning strategies comes from Anne Bahr. . to its team. and new benefits are added to current ones. which is critical to the ongoing success of a firm. What is a positioning strategy? Explain the the Bahr–InterBrand positioning opportunity method. ANSWER: A positioning strategy involves the selection of key themes or concepts that the organization decides to feature to communicate the distinctiveness of its product. It acts as the basis for brand choice and customer loyalty. or other relatively new promotional formats. emotional. credibility or consumer belief in the brand. It must be simple and distinctive. and especially global brands -. Well-established benefits reinforce one another. online advertising. mobile marketing. different aspects can be built into the value proposition. and to its target audience. ANSWER: A value proposition is a statement of the functional. and reminds consumers of these benefits. product placement. But more important. and other pieces of information related to the brand.national brands.The point at which these four meet is considered the best opportunity.are very involved and complex. the value proposition is what keeps the brand consistent in the eyes of the target market. with long histories and decades of marketing efforts.