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A firm that uses market segmentation assumes that identical marketing mixes can serve different types of customers.

A single-offer segmentation strategy involves attempting to satisfy a small market with one product and a single marketing program.

When aimed at mass markets, a single-offering segmentation approach is called undifferentiated marketing.  Recent examples of undifferentiated marketing are difficult to find because competitive forces tend to force segmentation over time.

Using differentiated marketing, a tour company such as Culture's Edge can market a wide range of trips exploring ethnic, cultural, and lifestyle-based locations that collectively appeal to the majority of vacation travelers, yet individually appeal to specific types of vacation travelers.

Overall, it does not matter whether a company selects a single-offer or a multi-offer segmentation approach.  Both approaches will produce the same level of sales for the firm even though the multi-offer strategy usually provides higher customer satisfaction.

No matter whether a marketer is dealing with a consumer market or an industrial market, the same five-stage market segmentation decision process should be used to segment the market and select a target market.

In the first stage of the segmentation decision-making process, marketers must select segmentation bases that result in each segment containing customers with similar needs.

In the second stage of the market segmentation decision-making process, marketers need to develop descriptions of customers in order to match offerings to their needs.  Information on customers' ages is usually sufficient at this stage.

In the third stage of the marketing segmentation process, market segmentation and market opportunity analysis are used to forecast the market potential of each segment.

In the fourth stage of the marketing segmentation process, the firm must estimate the market share it will probably capture in each segment.  Ideally, marketers want segments that are small enough that they have a chance at capturing 100% of segment sales and becoming the exclusive source of some needed product.

The information, analysis, and forecasts accumulated through the entire market segmentation decision process allow management to assess the potential for achieving company goals and to justify committing resources to develop one or more segments.

The target market segment(s) chosen by a firm to serve must not exceed its marketing capabilities in terms of either its financial or its non-financial resources.

Attractive market segments share five traits: uniqueness, large size, purchasing power, stability, and profitability.

Clearly delineated target markets allow management to effectively serve these markets by: (a) developing products that meet these customers' needs, (b) pricing them at a level these customers are willing to pay, (c) distributing them where these customers can find them, and (d) setting up communication plans that reach these customers and explain the products to them.

Using the "divide-the-box" method of identifying target markets is a creative rather than a mechanical exercise because it is up to the person using this procedure to define the cells.

Marketers can create a competitive positioning map from information solicited from competitors or from public databases that track consumer attitudes, opinions, and interests.

A perceptual map, also known as a positioning map, is a pictorial representation of how customers perceive related products on key attributes.

"Colorado River White Water Raft Tours may take your breath away, but they don't take American Express.  They take Visa." This represents an attempt by Visa Card to position itself with respect to one of its competitors.

The above Visa example also illustrates how advertising can be used to differentiate a product from a key competitor when there is very little natural differentiation between them.

Marketers should go through the market segmentation decision process and determine their desired product positioning simultaneously.

In order to match product offerings with the needs of particular market segments, which of the following factors does a firm have to take into consideration?

The four types of segmentation strategies available to a firm are the result of a matrix that involves looking at two dimensions.  These dimensions are

The segmentation strategy referred to as mass marketing is also known as

The high-value niche segmentation strategy involves offering multiple products to a small or focused market.  In order for this strategy to be successful, the marketer has to identify

Of the various segmentation strategies, the best is

Of the various bases for segmenting a consumer market (demographic, geographic, benefit, psychographic, usage rate), the best is

The market segmentation decision process begins with

The second stage of the market segmentation decision process involves developing a relevant, detailed customer profile of each market segment.  This is done to

The profile of the typical customer in each segment that is developed in the second stage of the market segmentation decision process may include information about

The third stage of the market segmentation decision process involves forecasting the market potential, or upper limit of demand for a product or service, for each segment.  This stage is critical to management because

The fourth stage in the market segmentation decision process involves forecasting the share of the market that the firm is likely to capture from involvement in each segment.  This requires

By performing all of the analyses required by the market segmentation decision process, the marketing manager is increasing the probability that

Suppose a travel agency has made contractual arrangements with all of the major corporations in the medium-sized city in which it operates that give the agency exclusive rights to making the travel arrangements for these corporations.  A competing agency would be unsuccessful in obtaining new business from the corporate travel segment in this city because this segment does not have which of the following traits of attractive market segments?

Suppose a company develops a line of hair care products specifically for red-haired people. This company would likely be unsuccessful with this line of products because the red-haired segment of the hair care market lacks which of the following traits?

The clothing apparel market is considered quite risky by many companies, particularly the segments of the market that cater to the needs of women and teenagers.  The segments that cater to infants and men are more attractive  because they are more likely to have the trait of

There are many potential bases for segmenting markets using the "divide-the-box" procedure. Generally, the way that people approach this technique is to

Target market decision analysis can be used to

Positioning is designed to

Successful positioning involves

By undertaking the positioning process, the marketing manager hopes to uncover