1. TOP 10 Learning Questions for Chapter 8: Identifying Market Segments and Targets Allan Ray C. Enriquez September 3, 2010

2. 1. is a more narrowly defined customer group seeking a distinctive mix of benefits. Segment Niche Local area Individual Firm 2

3. Markets can be targeted at four (4) levels: segments, niches, local areas and individuals. Segments: large and identifiable groups Niche: more narrowly defined group with distinctive mix of benefits Local area: local customer groups (i.e. neighborhoods, individual stores) Individuals: particular customers with their customized needs and wants. 3

4. 4 1. is a more narrowly defined customer group seeking a distinctive mix of benefits. Segment Niche Local area Individual Firm

5. 2. defines a person’s major concern. Age Family size Social class Life stage Race 5

6. In demographic segmentation, we divide market into groups and variables: Age, family size, family life cycle, gender income, occupation, education, religion, race, generation, nationality and social class 6

7. 7 2. defines a person’s major concern. Age Family size Social class Life stage Race

8. 3. Target markets are the following except: Segments Groups Niches Local Areas Individuals 8

9. Markets can be targeted at four (4) levels: segments, niches, local areas and individuals. Segments: large and identifiable groups Niche: more narrowly defined group with distinctive mix of benefits Local area: local customer groups (i.e. neighborhoods, individual stores) Individuals: particular customers with their customized needs and wants. 9

10. 10 3. Target markets are the following except: Segments Groups Niches Local Areas Individuals

11. 4. Market segments, to be useful, must be ALL except: measurable differentiable accessible flexible actionable 11

12. To be useful, market segments must rate on five (5) key criteria: Measurable: size, purchasing power and other characteristics should be measured. Substantial: should be large and profitable to serve. Accessible: can be effectively reached and served. Differentiable: should be conceptually distinguishable. Actionable: effective programs can be formulated. 12

13. 13 4. Market segments, to be useful, must be ALL except: measurable differentiable accessible flexible actionable

14. 5. Which of the following is FALSE? Men and women have different attitudes based partly on genetic makeup and socialization. People in the same part of the life cycle may differ in their life stage. Income always predict the best customers for a given product. Each generation is influenced by the times in which it grows up. Social class has a strong influence on preferences. 14

15. In demographic segmentation, we divide market into groups and variables: Age, family size, family life cycle, gender income, occupation, education, religion, race, generation, nationality and social class 15

16. 16 5. Which of the following is FALSE? Men and women have different attitudes based partly on genetic makeup and socialization. People in the same part of the life cycle may differ in their life stage. Income always predict the best customers for a given product. Each generation is influenced by the times in which it grows up. Social class has a strong influence on preferences.

17. 6. All statements for market segments to be useful are FALSE except: Segments can be served when available. The segments should be targeted to small groups for tailored marketing. Segments are conceptually similar to each other. Size and characteristics of the segments cannot be quantified. Effective programs can be formulated for attracting and serving the segments. 17

18. To be useful, market segments must rate on five (5) key criteria: Measurable: size, purchasing power and other characteristics should be measured. Substantial: should be large and profitable to serve. Accessible: can be effectively reached and served. Differentiable: should be conceptually distinguishable. Actionable: effective programs can be formulated. 18

19. 19 6. All statements for market segments to be useful are FALSE except: Segments can be served when available. The segments should be targeted to small groups for tailored marketing. Segments are conceptually similar to each other. Size and characteristics of the segments cannot be quantified. Effective programs can be formulated for attracting and serving the segments.

20. 7. Manila Beer’s strategy is an example way of marketing. Segment Niche Local Individual Global 20

21. Manila Beer repackaged itself and reintroduced last June 2010*. Target marketing leads to marketing programs tailored to the needs and wants of local customer groups. 21 Manila Beer was relaunched June 25, 2010 in celebration of Manila Day as well. Source:http://recyclebinofamiddlechild.blogspot.com/2010/06/manila-beer-rocks-manila-day.html

22. 22 7. Manila Beer’s strategy is an example way of marketing. Segment Niche Local Individual Global

23. 8. RunRio’s marketing is focused to runners. This type of segmentation is focused primarily to stage. Age and Life-Cycle Life Gender Social Class Generation 23

24. Running has been dubbed as the “new badminton.” From merely 2,000 participants, races has increased to 10,000 this year.* Generations are influenced by the times in which it grows up but at times different generations influence other generations because of relationship (i.e., family). 24 Source: Rudy Biscocho, Runner’s World Philippines 2nd Issue, July 2010

25. 25 8. RunRio’s marketing is focused to runners. This type of segmentation is focused primarily to stage. Age and Life-Cycle Life Gender Social Class Generation

26. 9. Colgate’s strategy of including sensitive teeth consumers in their market is a way of . Local marketing Hypermarketing Megamarketing Mass marketing Niche marketing 26

27. Sensodyne has been known for its toothpaste customized for sensitive teeth until Colgate released its product this year.* Colgate, being a toothpaste company, added its product, Sensitive Pro-Relief to well understand its customers’ needs. 27 Source: http://www.123jump.com/market-update/Colgate-Palmolive-Q4-Earnings-Call-Transcript/36333/21

28. 28 9. Colgate’s strategy of including sensitive teeth consumers in their market is a way of . Local marketing Hypermarketing Megamarketing Mass marketing Niche marketing

29. 10. Sunsilk’s Co-creations’ strategy is this kind of marketing. Segment Niche Local Individual Mass 29

30. This year Sunsilk created Co-Creations by world-renowned international experts when it comes to haircare.* Customized marketing is empowering consumers by designing products and services of their choice. 30 Source http://mrsmartinezravesandrants.blogspot.com/2010/07/sunsilk-co-creations-media-launch.html

31. 31 10. Sunsilk’s Co-creations’ strategy is this kind of marketing. Segment Niche Local Individual Mass

32. TOP 10 Learning Questions for Chapter 8: Identifying Market Segments and Targets Allan Ray C. Enriquez September 3, 2010