Chapter 6 Review Questions - A, B, C

A. Select a product or service that you are familiar with. Once selected, undertake research into these specific items: target market and market segmentation.

1. Responses should contain information as to:

a. How large is the target market?,

b. what is the future growth potential of this target market?,

c. how do/does the marketer reach this target market?

d. "Re-position this product to another market segment. For example, if students selected bluetooth earbuds as their product of choice, and confirm that the target market for this is Millennials and Gen Z, then the students should define how the manufacturers of bluetooth earbuds will attempt to re-position the product to attract the baby boomer generation (or another age cohort segment) to increase their purchases of bluetooth earbuds.

B. The upcoming demographic changes for the U.S. population calls for Hispanics to be the largest demographic segment in the U.S. by 2050.

1. Assuming that this is true, comment on how this demographic shift will change the segmentation in: a) the grocery industry, b) the fast-food industry, and c) the casual dining industry.

Answers should include key demographic and lifestyle facts and figures about these markets and their consumers.

C. Effective segmentation criteria are necessary for target market identification. Market segments must be measurable, substantial, accessible, differentiable, and actionable. However, not all segmentation schemes are usefulthe text uses table salt buyers for example.

1. Provide two examples of those products or services in which: segmentation criteria are not necessary and two examples where segmentation criteria are an absolute necessity. Explain these differences.

2. Devise a segmentation strategy that creates a segmentation distinction fortable salt!