MKTG 3340 Exam 2 Questions and Answers 100% Correct.

Market Segmentation - ANSWER-aggregate consumers into groups (segments) that have similar needs and will react similarly to a marketing action Segmentation Strategies - ANSWER-- 1 product w/ multiple target segments (Johnson shampoo for dogs or babies, tums for calcium or antacid) - multiple products/ multiple segments (utility mini van vs. excitement sports car) - mass customization (dell built to order laptop) Criteria for effective market segmentation - ANSWER-1. similarity of needs of potential buyers w/in a segment 2. difference of needs of potential buyers among segments 3. simplicity and cost of assigning potential buyers to segments 4. segment must have enough potential for increased profit and ROI 5. feasibility of reaching a chosen segment w/ a particular marketing action Variables for market segmentation - ANSWER-* marketers often use more than 1 of these variables in segmentation (MULTIVARIABLE SEGMENTATION) 1. Geography 2. Psychographics- how we live our lives 3. Usage/ Commitment Patterns (Behavioral)- how much we use a product/service 4. Benefits (Behavioral)- tumbler keeps water cold 5. Demographics Demographic Segmentation - ANSWER-* most used - Age (or head of household)- can't use in some cultures w/ multigenerational homes (dog food, puppy chow, active dos, senior dog) - Gender (Faith Popcorn says that the future society will be genderless; deodorant advertised by sex) - Family Size - Marital Status - Income (Rolex vs. timex) - Education - Occupation Geographic Segmentation - ANSWER-- Country - Region (ex. raid segmented country by bugs indigenous to that area) - City vs. Rural ( food manufacturers; Olive Garden found ppl in n.e. like smooth sauce; some areas like more spice) - Climate (ex. subaru popular in mountains b/c 4 wheel drive; trying to penetrate new markets) - P