A Framework for Marketing Management Ch. 6

False

Marketers can assume that people who buy a given product want the same benefits from it.

flexible market

A ________ offering consists of two parts: a naked solution and discretionary options.

split loyals

A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can show the firm which brands are most competitive with its own.

True

A local service company has decided to segment its market based on occupation; therefore, it has chosen a form of demographic segmentation for its approach.

True

A market segment consists of a group of consumers who share a similar set of needs and wants.

operating variables

A marketer is interested in segmenting a business market based on technology and customer capabilities. These criteria illustrate which of the following major segmentation variables?

demographic variables

A marketer is interested in segmenting a business market on ________ if the marketer intends to segment the market based on industries and geographical areas to serve.

Personal Charecteristics

A marketer is interested in segmenting a business market on ________ if the marketer's variables are loyalty and attitudes toward risk.

false

A segment is attractive when there are actual or potential substitutes for the product.

true

A segment is unattractive if the company's suppliers are able to raise prices or reduce quantity supplied.

false

All attempts to target marketing to children, minorities, or other special segments are discriminatory and unethical.

single-segment concentration

All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment's needs, a strong market presence, operating economies through specializing in production, distribution, and promotion.

true

An attractive niche consists of customers having a distinct set of needs.

true

An undifferentiated marketing approach to full market coverage designs a marketing program for a product with a superior image that can be sold to the broadest number of buyers.

False

Business segmentation based on purchasing approaches may divide the market by technology, user and nonuser status, and general purchasing policies.

True

Demographic variables are popular because they are often associated with consumer needs and wants and they are easy to measure.

initiator

Dennis requests his father to buy him a PlayStation® for his birthday. With respect to consumer decision roles, which role is Dennis currently playing?

True

Door-to-door workers in a political campaign use attitude to determine how much time to spend with each voter.

Market positioning

Establishing and communicating the distinctive benefit(s) of the company's market offering for each target segment is called ________.

actionable

For a segment to meet the ________ criterion of usefulness, the marketer must be able to formulate effective programs for attracting and serving the segments.

true

For segmenting a business market, situational factors include urgency, specific application, and size of order.

differentiated

General Motors, a leading American multinational automaker, sells cars for every purpose, budget, and personality. This is an example of ________ marketing.

False

Hard-core loyals can show the firm which brands are most competitive with its own.

demographic varieties

If a marketer is seeking to segment a business market, which of the following variables is generally felt to be the most important?

differentiable

If married and unmarried women respond similarly to a sale on perfume, these hypothetical segments fail the ________ criterion for useful market segments.

segment positioning

If your assignment was to create a value proposition and product-price positioning strategy for each segment, based on the segment's unique customer needs and characteristics, you would be in which of the following steps of the segmentation process?

False

Illustrations of personality segmentation would include culture-oriented, sports-centered, or outdoor-oriented subsegments.

mass

In ________ marketing, the firm ignores segment differences and goes after the whole market with one offer.

differentiated

In ________ marketing, the firm operates in several market segments and designs different products for each segment.

company's objective and resources

In evaluating different market segments, the firm must look at two factors: the segment's overall attractiveness and the ________.

macrosegmentation

In segmenting its markets, an aluminum company first looked at which end-use market to serve: automobile, residential, or beverage containers. This is an example of ________.

Segment identification

In the ________ step of the market segmentation process, the marketer determines which demographics, lifestyles, and usage behaviors make each needs-based segment distinct and identifiable.

dividing a segment into subsegments

Marketers usually identify niches by ________.

user status

Mothers-to-be are potential users who will turn into heavy users of infant products and services. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________.

life stage

Newlyweds in the United States buy more in the first six months than an established household does in five years. Newlyweds are an example of a(n) ________ segment.

age

Pampers divides its market demographically on the basis of ________ into prenatal, new baby, baby, toddler, and preschooler.

accessable

The characteristic of useful market segments that relates to whether the segments can be effectively reached and served is whether the segment is ________.

consumer motivation

The dimensions in the VALS framework are consumer resources and ________.

wanting to turn back the hands of time

The fact that Honda described its boxy Element as a "dorm room on wheels," but then attracted so many baby boomers that the average age of the Element turned out to be 42 illustrates what quality of baby boomers?

true

The last step in the seven-step marketing segmentation process would be to develop a marketing-mix strategy reflective of segment positioning strategies.

false

The most attractive segment is one in which entry barriers are low and exit barriers are high.

false

The niche marketing strategy used by Tom's of Maine, which used concentrated marketing, is in line with an individual marketing strategy.

targeting

The process of selecting one or more market segments to enter is called market ________.

true

The ultimate level of segmentation leads to "segments of one," "customized marketing," or "one-to-one marketing."

substantial

To be useful, a market segment should be ________, which means the largest possible homogeneous group worth going after with a tailored marketing program.

true

To be useful, market segments must be measurable.

situational factors

Urgency, specific application, and size of order are examples of ________ segmentation variables for business markets.

single-segment concentration

Volkswagen concentrates on the small-car market and Porsche on the sports car market. These would be examples of what is called ________.

grassroots marketing

When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats?

naked solution

When marketers present flexible market offerings to all members of a business segment, their offerings consist of two parts. Which part contains the product and service elements that all segment members value?

psychographic lifestyle

When the Modern Museum of Art separated its consumers by whether they were culture-oriented or outdoor-oriented for its new exhibit on art that used natural materials, they were using ________ segmentation.

It diversifies the firm's risk.

Which of the following best represents the chief advantage of pursuing a strategy of multiple segment specialization?

Gen Xers prize self-sufficiency and are pragmatic.

Which of the following statements about Gen Xers is TRUE?

It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants.

Which of the following statements about market segmentation is TRUE?

A segment is unattractive if buyers possess strong or growing bargaining power.

Which of the following statements is TRUE about the five forces identified by Michael Porter that determine the intrinsic long-run attractiveness of a market or market segment?

true

With respect to business market offerings, if a marketer emphasizes a naked solution, he or she is emphasizing the product and service elements that all segment members value.

Psychographics

________ is the science of using psychology and demographics to better understand consumers.