ADMS 2200 Lecture 5: Chapter 9

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byzantiumfox765

22 Sep 2016

School

York University

Department

Administrative Studies

Course

ADMS 2200

Professor

Andreas Strebinger

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Document Summary

A market is composed of people with sufficient purchasing power, authority, and willingness to buy: many markets include consumers with different lifestyles, backgrounds, and income levels. The target market for a product is the specific segment of consumers most likely to purchase it. By identifying, evaluating, and selecting a target market to pursue for a good or service, marketers can develop more efficient strategies. To identify a target market, marketers must determine useful ways for parting different populations and communicating with them successfully. Global marketing is now more important than ever, incorporating many target markets. There are more than 7 billion people in the world today, and about 35 million of them live in canada. In today"s business world there are too many variables in consumer needs, preferences, and purchase power to attract all consumers with a single marketing mix: meeting the needs of different market segments can be obtained through several options:

Related Questions

Match the definitions or complete the statements in the first part of the quiz with the appropriate terms found in the second part.

Definitions/Statements

1. _____ refers to marketersâ focus on a product rather than on the needs of the market.

3. The impact of technology on buyer behavior relates to factors such as ____; the use of technology to engage customers and build relationships; customization of products and promotional messages; and better prices and distribution.

4. In the case of situational influences, this relates to the situation in which or the occasion on which the product will be used, e.g., special occasion or everyday use.

5. In the case of situational influences, this relates to the fact if we are in a store, point-of-purchase displays could influence us to buy something. We could also make unplanned purchases because we remembered something from seeing the brand while we are in the store.

6. This discipline on which consumer researchers draw focuses on society and large groups in society such as family and social class.

7. This discipline on which consumer researchers draw focuses on cultures and differences among cultures.

8. These are temporary circumstances that affect consumer purchase decisions.

9. In the case of situational influences, this refers to the fact that the person and the occasion for which we are buying something influence our purchase decisions.

10. According to the simple model of consumer decision making, reference groups, family, social class, culture, and subculture are among the _____ on buyer behavior.

11. According to the simple model of consumer decision making, motivation, personality trait, perception, and attitudes are among the _____ on buyer behavior.

12. According to the simple model of consumer decision making, advertising, buzz agents, customized messages, social media, and word-of-mouth are examples of ____.

13. This discipline on which consumer researchers draw focuses on behavior in small groups and helps consumer researchers to understand issues such as opinion leadership, diffusion of innovations, and communication.

14. In the case of situational influences, ______ are consumer mood states or physiological state (for example, hunger, thirst) that influence consumer decision-making.

15. The selection of one or more segments by a marketer to serve.

16. Developing a distinct image for a brand in the mind of consumers.

17. This is an effort by a marketer to change the existing perception that consumers have of a brand.

19. ___ segmentation involves segmenting based on variables such as urban, rural, suburb, state, cities, counties, and regions.

20. ____ segmentation is based on variables such as consumersâ lifestyles as indicated by their activities, interests, and opinions.

21. This criterion for effective targeting says that marketers should have some way of deciding which consumers fall into which segments.

22. This criterion for effective targeting says that marketers should be able to reach segments with appropriate media and distribution channels.

23. This is the most popular segmentation system combining lifestyles and values of consumers.

24. This household segmentation model is based on a combination of geographic and demographic information and the principle that âBirds of a feather flock together.â

25. ______ is defined as âsending consumers personalized and prompt offers and promotional messages designed to reach the right consumers and deliver to them highly relevant messages at the right time and more accurately than when using conventional segmentation techniques.â

Terms

A. Positioning

B. Accessibility

C. Anthropology

D. Situational influences

E. Consumption situation

F. Task definition

G. Identification

H. Marketing-oriented

I. Targeting

J. Psychographic

K. Marketing myopia

L. PRIZM

M. Interactive and novel communication channels

N. Sociology

O. Demographic

P. Purchase situation

Q. Behavioral targeting

R. Antecedent states

S. Communication sources

T. Geographic

U. Sociocultural influences

V. VALS

W. Psychological influences

X. Social psychology

Y. Repositioning

The sales and profits of an individual product may not follow the life cycle pattern.

True

False

During the sales decline stage of the product life cycle, no firm can earn a profit.

True

False

During the introduction stage of the product life cycle:

none of the above.

most products achieve intensive distribution.

promotion is likely to be needed to increase primary demand.

"me too" products quickly take market share away from the innovator.

industry profits are at their highest.

During the introduction stage, what would hinder acceptance of a new product?

consumers may not see the new product as offering a superior alternative to whatever they are currently using.

risk in buying something for the first time.

all of the above.

the new product may not be compatible with the buyer's values.

problems communicating or demonstrating the new product's benefits.

During the market growth stage of the product life cycle:

industry sales grow slowly.

industry profits fall, then rise.

the market begins to fragment into sub-markets or segments.

all of the above.

the industry experiences the smallest profits

What is the most important reason why industry sales level off in the market maturity stage of the product life cycle?

persuasive promotion.

pool of potential users is exhausted.

aggressive competitors entering the markets.

less efficient firms leaving the market.

price cutting.

Gerhard Company has seen most of its competitors drop out of its product market due to declining sales and profits. However Gerhard still has much demand for its products from a small group of loyal customers. In which stage of the product life cycle is this product market?

The length of a product's life cycle:

depends on the ease of entry to the market for competitors.

may be as short as 90 days.

may be as long as 100 years.

varies widely across products.

all of the above.

Regarding product life cycles, a good marketing manager knows that:

all of the above.

once a market goes into sales decline, oligopoly conditions set in.

a company's marketing mix usually should be kept constant over the product life cycle.

industry profits are increasing well after sales start to decline.

entirely different target markets may be involved at different stages of the product life cycle.

Generating "socially responsible" new product ideas:

reduces the long-term welfare of consumers.

is done by all companies.

is easy for new product planners.

is unprofitable and should not be done.

is promoted by consumer groups.

Match the definitions or complete the statements in the first part of the quiz with the appropriate terms found in the second part.

Definitions/Statements

1. _____ refers to marketersâ focus on a product rather than on the needs of the market.

2. _____ companies do not try to persuade consumers to buy what the firm has already produced, but rather to produce only products that they know they can sell, thereby satisfying consumersâ needs and turning them into loyal customers. 3. The impact of technology on buyer behavior relates to factors such as ____; the use of technology to engage customers and build relationships; customization of products and promotional messages; and better prices and distribution.