Dollar General is a convenience-store franchise that sells Diet Pepsi. The local Pepsi distributors supply Dollar General based on whether it has heavy, medium, or light sales of Pepsi or Diet Pepsi, categorizing them as big accounts vs. small accounts. This example shows that B2B customers, like Pepsi distributors and Dollar General, are usually segmented by:

a. Attitudes
b. Demographics
c. Volume of transactions

Marketers consider all of the following when evaluating a segmentation plan EXCEPT:

a. Databases to access segments
b. Inactionable
c. Fit with corporate goals
d. Data for identifying segments

Felix is opening a jewelry shop. He is evaluating how frequently customers purchase jewelry, how much customers typically spend, and how price-sensitive jewelry customers are. Felix also wants to know the growth potential for his business. With this information, Felix can evaluate which segment to pursue. Felix realizes that small segments can be highly profitable. This example shows that when evaluating segments, smarter information about a segment is:

a. Segment size
b. Frequency of purchase
c. Stability of the segment
d. Profitability

Trader Joe's is a high-end grocer whose customers are committed to a healthy lifestyle. They want produce that is free of pesticides and want to ensure that those who supply the produce are fairly treated and compensated. Trader Joe's customers feel strongly against child labor and animal testing. Trader Joe's knows their shoppers want organic produce, fair-trade coffees, and cosmetics that have not been animal tested. This is an example of a:

a. Breadth strategy reaching multiple segments
b. Tailored strategy customizing for segments
c. Several segments in the marketplace
d. Depth strategy serving one segment well

Santos owns a hair salon in Odessa, Texas. He has won many awards for his styling and has designed the haircuts for several Miss Texas award winners. Santos currently markets his hair products to women between 25 and 55 years of age, but sales are flat because many women in this age group order hair-care products online or go to the hair salons at the local mall. If you were advising Santos on a strategy to increase the sale of his products, what strategy would you tell him to use?

a. Positioning strategy
b. Pricing strategy
c. Expansion strategy
d. Niche strategy

Marketers begin with some knowledge base about the marketplace to include all of the following EXCEPT:

a. Company strengths
b. Customers
c. Customer perspective
d. Competitors

1. In this example, the relationship between Dollar General and the Pepsi distributors shows that B2B customers, like Fopsi distributors and Dollar General, are usually segmented based on Option C. volume.

2. Marketers consider several factors when evaluating a segmentation plan. However, the option that is not considered is Option "b. Inactionable."

3. Felix realizes that small segments can be highly profitable. This example shows that when evaluating segments, smarter information about a segment is option D. profitability.

4. The example of Trader Joe's demonstrates an Option B. tailored strategy customizing for segments.

5. If advising Santos on a strategy to increase the sale of his hair products, I would suggest using Option "d. Niche strategy."

6. When marketers begin their analysis of the marketplace, they typically consider factors such as company strengths, customers, and competitors. However, the option that is not considered in this process is Option "c. Customer perspective."

1. The local Pepsi distributors supply Dollar General with Pepsi and Diet Pepsi based on the sales volume of these products. The volume of sales can be categorized as heavy, medium, or light, and this determines the amount of product that is supplied to Dollar General. The size of the account, whether it is a big account or a small account, also plays a role in the segmentation process. Therefore, the correct option is C.

2. Marketers focus on factors such as accessing segments through databases, ensuring the fit of the segmentation plan with corporate goals, and gathering data to identify segments. They analyze and assess the potential of each segment to determine which ones are viable and align with their marketing objectives. The concept of "actionable" does not fit within the framework of evaluating a segmentation plan. Therefore, the correct option is B.

3. In evaluating segments for his jewelry shop, Felix considers factors such as the frequency of purchase, average customer spending, price sensitivity, and growth potential. This means that Felix understands the importance of profitability when evaluating segments. It is crucial for him to identify segments that have the potential to generate significant profits for his business. Therefore, the correct option is D.

4. Trader Joe's caters to customers who are committed to a healthy lifestyle and have specific preferences, such as wanting to produce free of pesticides and supporting fair-trade practices. This tailored approach allows Trader Joe's to cater to the specific needs and values of their customers, creating a unique value proposition. Therefore, the correct option is B.

5. Santos currently targets women between the ages of 25 and 55, but sales are flat due to online ordering and competition from local mall salons. By implementing a niche strategy, Santos can identify a specific, smaller segment within his target market where he can differentiate his salon and hair products. Therefore, the correct option is D.

6. While marketers aim to understand the needs and preferences of their customers, this option is not explicitly mentioned as part of the initial knowledge base. Instead, marketers gather information about their customers through market research, surveys, and customer feedback to gain insights into their preferences, behavior, and expectations. Therefore, the correct option is C.

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