Companies segment their consumer markets based on many different characteristics. For each of the following segmentation variables, give an example of a brand that appears to use that variable to divide its market. In each case, explain why you feel that the brand uses the variable you suggest. Your examples should be original (not from the text or study notes). (18 points)
Geography
Age
Gender
Income
Ethnicity
Family life cycle

 
Briefly define psychographic segmentation. (9 points)
Explain how it differs from demographic segmentation and helps distinguish between consumer market segments.
Point out a limitation of using only demographic segmentation without including psychographic segmentation.

 
Briefly describe the bases for product positioning. (10 points)
To answer (1 through 3 below), choose one of the following products to answer all questions 1 through 3:
Automobile models
Blue jeans brands
Breakfast cereal brands
Consider the following consumer: (20 points)
Michael is a 32-year-old married African-American male with two children, with a bachelor's degree, living in Atlanta, Georgia, with a full-time engineering job earning $80,000 per year.
Considering age, gender, income, education, ethnicity, geography, marital status, and family life cycle, list five demographic groups Michael could be classified in as a result of his demographics.
Which group do you think best describes Michael's needs/wants as a consumer? Explain your answer. If you feel uncertain, explain why.
Explain how placing him into any one of these groupings would not describe him clearly.
Do you believe an automobile company's marketing department would have an idea about the kind of car Michael might want to buy, based on the above demographic information about this consumer? Explain.
Suggest two additional types of information besides demographic information the automobile company's marketing department might want to know about him.

 
Define cannibalization and give an example of a new product that resulted in cannibalization. (8 points)

 

Watch this two-minute video history showing McDonald's evolution since it was founded in 1940 with a single location in California. Fast Company: 74 Years of McDonald's Marketing in Two Minutes. Links to an external site.(6 points)
Describe the marketing efforts McDonald's made to target the "children" segment of the market. Do you believe it was successful in targeting children? Why or why not?
Describe the efforts McDonald's makes to reposition its products to be seen as healthier. Do you believe it will be successful in changing consumer's perceptions? Why or why not?