Mktg 201 Test 2 Practice

This is an example of the primary data collection method known as a survey. An example of a survey is depicted on p.212-3 of your text.

See p.235 in text for an explanation of segmentation by geographic variables. This example was the one given in the Segmentation lecture. Segmentation by benefits sought is a possible answer but it is not as good as segmentation by geography because the example clearly states that the segments are based on geographical location.

Targeting some magazines at men, and some at women, implies that the magazine market may segment customers by gender. Segmenting by demographics is explained on p.231 and in Figure 9-3 (p.232).

Secondary data is data that has already been collected, for other purposes. Primary data is data that is collected specifically for the current purpose. See p.204 text.

Specialty products (as opposed to convenience and shopping products) are difficult to substitute, usually quite expensive and are not intensively distributed (usually a designer dress would be sold through a boutique outlet rather than a wide range of clothing shops). Also the brand name is important. Specialty goods/products are explained on p.257 of your text.

The frequent flier programme is not part of the core, or main attributes being purchased by the consumer. See reading uploaded to Week 7 under "other" tab for more on this topic.

Definition of a segment found in STP [seg-tar-pos] lecture, ppt and p.226 of the text

The text explains shopping goods on p.257 as items for which consumers compare several alternatives on several criteria such as proce, quality or style. Note that we used the term "products" in lecture as these classifications can also be applied to services.

Primary data is more time consuming and more expensive to collect, but has the ADVANTAGE of being more specific to the problem you are trying to understand and/or solve. See p. 215.

All of the above are examples of secondary data except observations since these have not be undertaken yet and can be designed to answer the question at hand

p.201 explains that exploratory research provides ideas about a relatively vague problem.

p.229 explains that mass-customisation involves tailoring goods or services to suit the tastes (preferences) of individual customers on a high volume scale.

the text explains on p.285-6 that fad products experience rapid sales on introduction and then a rapid decline. Examples are rubber dresses and some children's toys like Scoobies (plastic strings that can be woven into jewellery).

See p.232-3 for a discussion of segmentation by usage rate. This question is quite similar to the example used in class, which was “frequent flier programmes,” The Marriott Hotels video briefly mentioned the “frequent hotel guest” segment briefly. In this example, the hotel is segmenting by usage rate, and targeting the heavy users.

This question was one where you needed to be clear about the difference between creating segments (“forming segments” p.231) and targeting segment(s). The cost of reaching a segment is a criterion to consider when deciding which segment(s) to target (p. 239 text).