Baby Boomers Market Segmentation: Multisegment Targeting Strategy Quiz

Questions and Answers

What is perceptual mapping?

Displaying the location of products in customers' minds

What are some of the bases for positioning a product?

Product feature, customer benefit, and price

How does the price and quality positioning base work?

It stresses high price as a signal of quality

What does the use or application positioning base focus on?

Stressing uses or applications for the product Signup and view all the answers

Which positioning base focuses on a personality or type of user?

Product user Signup and view all the answers

Why is high price sometimes used as a positioning strategy?

To signal high quality Signup and view all the answers

What is the main purpose of perceptual mapping?

To locate products in customers' minds Signup and view all the answers

How does the use or application positioning base effectively position a product?

By emphasizing uses or applications for the product Signup and view all the answers

What does the price and quality positioning base emphasize when promoting low price?

An indication of value Signup and view all the answers

What is the main focus of the product user positioning base?

Focusing on the personality or type of user Signup and view all the answers

Why is the choice of segmentation bases crucial?

To avoid lost sales and missed profit opportunities Signup and view all the answers

What is the current trend in segmenting most markets?

Using more rather than fewer variables for segmentation Signup and view all the answers

What is the key to identifying bases for segmentation?

Creating substantial and measurable segments Signup and view all the answers

What is a disadvantage of multiple-variable segmentation?

It is often harder to use than single-variable segmentation Signup and view all the answers

How does the size of individual segments change as the number of segmentation bases increases?

The size of individual segments decreases Signup and view all the answers

What is a challenge related to usable secondary data in multiple-variable segmentation?

Usable secondary data are rarely available Signup and view all the answers

What is the multisegment targeting strategy?

Choosing multiple well-defined market segments and developing a distinct marketing mix for each Signup and view all the answers

What should firms do before deciding to use the multisegment targeting strategy?

Compare the benefits and costs of multisegment targeting to those of undifferentiated and concentrated targeting Signup and view all the answers

What are some advantages of multisegment targeting?

May lead to greater sales volume, higher profits, larger market share, and economies of scale in manufacturing and marketing Signup and view all the answers

What is one of the disadvantages of multisegment targeting?

Potential for cannibalization, which occurs when sales of a new product cut into sales of a firm’s existing products Signup and view all the answers

Study Notes

Markets and Market Segments

A market consists of people or organizations with needs or wants and the ability and willingness to buy.
All four characteristics (needs or wants, ability, willingness, and buying power) must be present for a market to exist.

Bases for Segmenting Consumer Markets

Age Segmentation:
- Generation Z: born 1995-2015, want to work for their success, believe brands need to be real, and have their own rules for social media.
- Millennials: born 1980-1994, idealistic and pragmatic, technology-proficient, value trustworthiness, creativity, and authenticity.
- Generation Xers: born 1965-1979, stuck between supporting aging parents and young children, best-educated generation, disloyal to brands, and skeptical of big business.
- Baby Boomers: born 1946-1964, outspend average consumers, living longer, healthier, and more active lives, and spend money to maintain vitality.
- Silent Generation: born before 1946, cautious, hardworking, and disciplined, value economic resources, and may require product modifications.

Other Segmentation Bases

Gender Segmentation: women drive 70% of purchases of consumer goods in Malaysia, companies traditionally targeting women now target men, and vice versa.
Income Segmentation: income level influences consumers' wants and determines their buying power.

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Description

This quiz covers the segmenting of consumer markets with a focus on the characteristics and behaviors of Baby Boomers. It includes information about their spending habits, lifestyle, and aging trends.