Segmentation, Targeting, and Positioning True False

Chapter 06 - Segmentation, Targeting, and Positioning 101. Consumers buy many products and services because of their primary motivations—that is, how they see themselves in the world and how that self-image governs their activities. TRUE Consumers buy many products and services because of their primary motivations—that is, how they see themselves in the world and how that self-image governs their activities. The three universal primary motives are ideals, achievement, and self-expression. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 102. People who are primarily motivated by ideals look for products and services that demonstrate success to their peers. FALSE People who are primarily motivated by ideals are guided by knowledge and principles, whereas those who are motivated by achievement look for products and services that demonstrate success to their peers. The three universal primary motives are ideals, achievement, and self-expression. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 6-58 Chapter 06 - Segmentation, Targeting, and Positioning 103. VALS™ enables firms to identify target segments and their underlying motivations. TRUE VALS™ enables firms to identify target segments and their underlying motivations. It shows correlations between psychology and lifestyle choices. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-01 Describe the bases marketers use to segment a market. Topic: 06-03 Step 2: Segmentation Bases 6-59 Chapter 06 - Segmentation, Targeting, and Positioning 104. For a segmentation strategy to be successful, the customers in a segment must react differently to a firm's offering. FALSE For a segmentation strategy to be successful, the customers in a segment must react similarly and positively to a firm's offering. If, through its distinctive competencies, the firm cannot provide products or services to that segment, it should not target it. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-02 Identify the criteria for determining the attractiveness of a segment and whether it is worth pursuing (targeting). Topic: 06-04 Step 3: Evaluate Segment Attractiveness 105. Entrepreneurial startup ventures often benefit from using a differentiated strategy, which allows them to employ their limited resources more efficiently. FALSE When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that market's needs, it is using a concentrated or niche targeting strategy. Entrepreneurial startup ventures often benefit from using a concentrated strategy, which allows them to employ their limited resources more efficiently. Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 06-03 Explain the differences among targeting strategies: undifferentiated; differentiated; concentrated; or micromarketing. Topic: 06-05 Step 4: Select Target Market 6-60 Chapter 06 - Segmentation, Targeting, and Positioning 106. The degree to which firms should segment their markets depends on the balance the firms want to achieve between the added perceived customer value that segmentation can offer and its cost. TRUE The degree to which firms should segment their markets—from no segmentation to one segment to multiple segments to one-to-one segments—depends on the balance the firm wants to achieve between the added perceived customer value that segmentation can offer and its cost. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-03 Explain the differences among targeting strategies: undifferentiated; differentiated; concentrated; or micromarketing. Topic: 06-05 Step 4: Select Target Market 107. Personal ideas and feelings about a product or brand drive the customers toward or away from a brand or company. TRUE Regardless of whether companies want them to or not, consumers form their own ideas and feelings about a product or brand, and it is those very ideas and emotions that drive them toward or away from a brand or company. The positioning strategy can help communicate the firm's or the product's value proposition, which communicates the customer benefits to be received from a product or service and thereby provides reasons for wanting to purchase it. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-04 Define positioning and describe how firms do it. Topic: 06-06 Step 5: Identify and Develop Positioning Strategy 6-61 Chapter 06 - Segmentation, Targeting, and Positioning 108. Market positioning involves a process of defining the marketing mix variables. TRUE Market positioning involves a process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what a product does or represents in comparison with competing products. Effective positioning is about letting consumers know what the company's unique value proposition is and for whom it is intended. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-04 Define positioning and describe how firms do it. Topic: 06-06 Step 5: Identify and Develop Positioning Strategy 109. Value is a popular positioning method that focuses on those attributes that are most important to the target market. FALSE Value is a popular positioning method because the relationship of price to quality is among the most important considerations for consumers when they make a purchase decision. Another common positioning strategy based on product attributes focuses on those attributes that are most important to the target market. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-04 Define positioning and describe how firms do it. Topic: 06-07 Positioning Methods 6-62 Chapter 06 - Segmentation, Targeting, and Positioning 110. Competition-based positioning emphasizes the psychological meaning of a brand to consumers. FALSE Symbolism-based positioning emphasizes the psychological meaning of a brand to consumers. Competition-based positioning involves placing a firm's product head-to-head against a specific competitor. Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 06-04 Define positioning and describe how firms do it. Topic: 06-07 Positioning Methods 111. Firms can choose a differentiation strategy by going after a less competitive, smaller market niche. TRUE Firms can choose a differentiation strategy by going after a less competitive, smaller market niche. For instance, Goodrich tires were promoted as "The Other Guys," or the ones without the blimp, to set them apart from Goodyear tires. Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 06-04 Define positioning and describe how firms do it. Topic: 06-05 Step 4: Select Target Market 6-63 Chapter 06 - Segmentation, Targeting, and Positioning 112. Brand repositioning is the strategy used by marketers to change a brand's name without realigning the brand's core emphasis. FALSE Brand repositioning refers to a strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences. Although repositioning can improve the brand's fit with its target segment or boost the vitality of old brands, it is not without costs and risks. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-04 Define positioning and describe how firms do it. Topic: 06-09 Repositioning 6-64