ARE 136 Ch. 6

Why are systems such as PRIZM used by advertisers for segmentation? a. because they provide deep segment description b. because they allow for segmentation on the basis of frequency of usage c. because they provide deep insights into consumers' motivations d. because they emphasize the understanding of consumers' activities, interests, and opinions

a. because they provide deep segment description

What is the first step in STP marketing? a. market segmentation b. solidify strategy c. supplementary positioning d. selecting marketing

a. market segmentation

The process of cutting a market into pieces and focusing on the piece or pieces that make the most sense is termed ________. a. segmentation b. integration c. rationalization d. differentiation

a. segmentation

When ad agency professionals are creating a campaign for a huge global retail firm with complex value propositions, it is important to make sure the campaign aligns with one or more aspects of the brand's value. a. True b. False

True

Psychographic segmentation is a term that advertisers created in the mid-1960s to refer to a form of research that emphasizes the understanding of consumers' activities, interests, and opinions. a. True b. False

True

Alluring is a company that manufactures cosmetic products. It claims to have the most innovative and scientific formula of the makeup. To be internally consistent, the company should invest in a better Research and Development department to continue product innovation. a. True b. False

True

In the world of advertising, products are positioned, but markets are segmented. a. True b. False

True

Psychographic segmentation is used in selecting target segments by focusing on consumers' descriptors such as their values, beliefs, philosophies, and opinions. a. True b. False

True

STP marketing includes three aspects: segmentation, targeting, and positioning. a. True b. False

True

Some advertisers try to use approaches to reach the green consumer segment a. True b. False

True

Taco Bell is launching a new advertising campaign portraying its restaurant as having very fast service and a cheerful staff to target a younger crowd. The campaign will be more successful if it uses various aspects of IBP such as sponsorships, contests, and sales promotions in addition to TV and social media, rather than TV commercials alone, to best reach this group. a. True b. False

True

Location is most related to _____ segmentation. a. geographic b. psychographic c. competitive d. demographic

a. geographic

4. If Nike decides to use the STP framework, it does not need to do market segmentation. a. True b. False

False

9. Demographics are used to describe or profile target segments and may include gender, age, education, and income range. a. True b. False

True

A gourmet spa advertises itself as offering relaxation to the extreme and the best massage in America. The owner of the local shop buys ads focusing on a relaxing experience and their award-winning massage therapists. This is an example of internal consistency. a. True b. False

True

Advertising is relevant for both business-to-business as well as for business-to-consumer approaches. a. True b. False

True

Brand opportunities relate with credibility, relevance, stretch, and differentiation. a. True b. False

True

Companies at times target "casual users". a. True b. False

True

Which system has identified many market segments based on zip codes and the personal characteristics of their residents, creating a well-known tool for geodemographic segmentation? a. Thorson and Moore's model b. PRIZM c. SIC Codes d. VALS

b. PRIZM

There should be ______ persuasion tool(s). a. five b. a mix of c. one d. two

b. a mix of

_____ involves the overlapping of four important factors: current relevance to the consumer, credibility or consumer belief in the brand, differentiation or a recognition of uniqueness, and "stretch" or the potential for consumer relevance over time. a. SWOT analysis b. Competitive field c. Brand opportunity d. Niche marketing

c. Brand opportunity

In STP marketing, the term _________ refers to an attempt to give a brand a certain meaning relative to its competitors. a. segmentation b. redistribution c. positioning d. targeting

c. positioning

The McDonald's team aligned its marketing mix in a design that would represent a particular identity, showcasing certain themes and value, and shaped to gain distinctive approval from parents. This demonstrates the process of ______. a. switching. b. commoditization. c. segmenting. d. singularization.

c. segmenting.

Which of the following is true of segment selection? a. The number of heavy users in a segment is usually very large. b. It is enough to assess the size of a segment to select it as a company's target segment. c. Growth potentials for all segments are generally very low. d. Marketers are inclined to devote resources to segments projected for dramatic growth.

d. Marketers are inclined to devote resources to segments projected for dramatic growth.

Which segment is important when there is a big influx of first-time buyers? a. switchers b. brand-freaks c. lead users d. emergent consumers

d. emergent consumers

A brand's opportunity claim is a statement of the brand's benefits that provide value to its target consumers and includes functional, emotional, and self-expressive benefits. a. True b. False

False

Bumbo is a company that manufactures products for babies and toddlers. Its advertising campaigns have carried various slogans over the years, and they change up the thematic core of the messages every week. This is an example of consistent positioning approach. a. True b. False

False

If an advertiser sees a large potential segment being served by a competitor with a big budget, it should withdraw from the marketplace. a. True b. False

False

The consumers termed ____ turn out to be a costly target segment; much can be spent in getting their business merely to have it disappear just as quickly as it was won. a. brand freaks b. lead users c. switchers d. heavy users

c. switchers

When formulating a positioning strategy, it is important to consider the competition. a. True b. False

True

Segment selection revolves around what the members of the segment want versus: a. how much they are willing to pay for it. b. whether the segment is currently growing. c. how much they are willing to settle for. d. the organization's ability to provide it.

d. the organization's ability to provide it.

As a segment, variety seekers: a. are extremely committed to a brand. b. enjoy new experiences and switch brands for that reason. c. need little encouragement to continue purchasing a brand. d. are unusually enthusiastic about one brand and often excessive in their purchasing activities of it.

b. enjoy new experiences and switch brands for that reason.

Spending advertising dollars to get "switchers" to buy your brand may seem like a bad idea, but it often results in strong brand loyalty. a. True b. False

False

The basic premise of a positioning strategy must be complex and fitting in with the competitors' messages if it is to be communicated effectively to the target segment. a. True b. False

False

The strategic planning triangle suggested by Thorson and Moore features as its three main aspects the campaign's colors, celebrity endorsers, and logo. a. True b. False

False

Climate, topography, community size, and national region have been found to make dramatic differences in consumption, including habits involving eating and food preparation, entertainment, and recreation. This is the basis of _______ segmentation. a. psychographic b. commitment-level-based c. geographic d. demographic

c. geographic

The Folgers brand team looked at the diverse market of all coffee drinkers, then broke it down by age. The team chose to focus on college-aged students who were new to coffee; these people represent the _______ a. benefit positioning. b. positioning value proposition. c. target market. d. segmenting persuasion tools.

c. target market.

A brand's is a statement of the functional, emotional, and/or self-expressive benefits delivered by the brand. a. universal product code b. memorandum of understanding c. value proposition d. warranty

c. value proposition

When a brand team defines the target market of consumers for their product, they do not worry about identifying many smaller subsets of consumers within their broad market. a. True b. False

False

Lion Inc., a manufacturer of shampoo, offers two product lines, each catering to a distinct segment. Its most popular brand targets women who want hair that will shine for days after a wash while blocking the sun's rays. With this brand, the company targets a niche market of women who are looking for shine and UV protection. What type of segmentation is Lion Inc. using? a. Benefit segmentation b. Heavy-user-focused segmentation c. Positioning segmentation d. Geographic segmentation

a. Benefit segmentation

What is a downside to adopting a heavy-user-focused segmentation plan? a. Heavy users usually form less than one percent of users by volume. b. Heavy users may differ significantly from average or infrequent users in terms of their motivations to consume, their approach to the brand, or their image of the brand. c. Heavy users are a costly target segment and much can be spent in getting their business merely to have it disappear just as quickly as it was won. d. Heavy users have little knowledge of the brand and negligible social influence.

b. Heavy users may differ significantly from average or infrequent users in terms of their motivations to consume, their approach to the brand, or their image of the brand.

The top of the strategic planning triangle is ______, as it relates to customers. a. specification of the brand's history b. identification and specification of the target segment c. identification of the various headlines that may be deployed as part of the campaigns d. specification of ideas

b. identification and specification of the target segment

In Chobani yogurt's positioning as the yogurt with quality ingredients only, it can benefit the position of the brand with: a. competitors. b. integrated brand promotion. c. not having any advertising. d. taking information out of any advertising.

b. integrated brand promotion.

Effective positioning strategies should be linked to the ______________ offered by the brand. a. history b. substantive benefits c. sale d. drama

b. substantive benefits

A powerful value proposition in many situations includes functional, emotional, and self-expressive benefits, a. though there is only one basis for market segmentation. b. though it is not easy to reflect all three aspects in one single ad. c. all of which must be included in a given headline. d. though it only applies to services.

b. though it is not easy to reflect all three aspects in one single ad.

What is geodemographic segmentation? a. Creating multiple media markets to reach many global consumers. b. Positioning a new service in a new region. c. Identifying neighborhoods by zip code around the country that share common demographic characteristics. d. Expanding a brand into a new country in a region where it already operates.

c. Identifying neighborhoods by zip code around the country that share common demographic characteristics.

_____ is a term that advertisers created in the mid-1960s to refer to a form of research that emphasizes the understanding of consumers' activities, interests, and opinions. a. Demographics b. Geodemographics c. Psychographics d. Micrographics

c. Psychographics

What does the acronym STP mean? a. Sales, Target, Product b. Sell To People c. Segmenting, Targeting, Positioning d. Sell The Product

c. Segmenting, Targeting, Positioning

A major criterion to consider during segment selection is the ____, or the companies that are vying for that segment's business. a. ad clutter b. business market c. competitive field d. niche market

c. competitive field

A ______ is a core idea that frames an ambition or aspiration for a brand that will be relevant to target audiences over time. a. brand extension b. brand orientation c. brand initial d. brand platform

d. brand platform

The American Pork Producers has been running a long-term campaign with the tagline "Pork. The other white meat." This is an example of: a. lifestyle segmentation. b. demographic segmentation. c. benefit positioning. d. competitive positioning.

d. competitive positioning.

A characteristic that share is that their brand preferences are still under development. a. variety seekers b. brand-freaks c. heavy users d. emergent consumers

d. emergent consumers

One drawback of niche marketing is that a company may have to raise the price of its product due to the smaller volume of sales it can expect. a. True b. False

True

Positioning relates to an attempt to give a brand meaning relative to its competitors. a. True b. False

True

What is niche marketing? a. A relatively small group of consumers within a segment that has a distinctive set of needs or seeks very specific benefits. b. A large group of heavy users who are loyal to a brand because it provides value at a relatively low price c. A market segment that is served by many firms and is characterized by high levels of competition d. A market segment that is characterized by high sales volumes and low prices

a. A relatively small group of consumers within a segment that has a distinctive set of needs or seeks very specific benefits.

A fast-food restaurant is attempting to position itself as the best choice when you're in a hurry because it serves customers within 100 seconds. To maintain internal consistency, the firm might take all of the following steps below, EXCEPT for which one? a. adding a gourmet condiment station with more flavors and sauce choices b. adding extra drive-up windows c. hiring more order-takers d. hanging up digital timers behind the counter

a. adding a gourmet condiment station with more flavors and sauce choices

One big plus from a product position that stays consistent over time, like Chick-fil-A's "Eat More Chicken" campaign, is that it: a. is more likely to break through advertising clutter. b. successfully reaches nonusers. c. doesn't need to target a particular segment. d. is easily repositioned.

a. is more likely to break through advertising clutter.

For most products and services, some users will purchase much more, and more frequently, than others. These consumers are called . a. lead users b. switchers c. emergent consumers d. variety seekers

a. lead users

Which of the following forms the final apex of the strategic planning triangle proposed by Esther Thorson and Jeri Moore? a. selection of a mix of persuasion tools b. identification of the target segment c. specification of the brand's value proposition d. division of a market into segments

a. selection of a mix of persuasion tools

A potential downside of a heavy-user-focused segmentation plan is that: a. there may be a relatively small number of people in the segment. b. heavy users usually require constant encouragement to keep consuming a product. c. heavy users do not differ significantly from infrequent users in terms of their motivations to consume. d. it shifts focus to old consumers who quit.

a. there may be a relatively small number of people in the segment.

A firm hires an agency to persuade real estate professionals to use their finance services. In this case, the agency is specifically involved in: a. psychographic research. b. business-to-business marketing. c. the competitive field d. need-based segmentation.

b. business-to-business marketing.

What does "T" stand for in the term STP marketing? a. Tangible b. Technology c. Target d. Territory

c. Target

An important apex in Thorson and Moore's strategic planning triangle entails: a. identification and specification of complex themes. b. identification of the various global markets. c. specification of the brand's value proposition. d. specification of details.

c. specification of the brand's value proposition.

In recent years, mobile phones and location of consumers on the go relates with ______ segmentation. a. value b. micrographic c. reprographic d. geodemographic

d. geodemographic

The use of psychographics to focus on differences in consumers' activities, interests, and opinions usually results in _______ segmentation. a. new -user-focused b. bias c. time d. lifestyle

d. lifestyle

Folgers coffee focuses on graduates and newlyweds in advertising, as they are the next generation of coffee-drinkers at home. This campaign is an example of: a. ambush marketing. b. guerilla marketing. c. heavy-user-focused marketing. d. point-of-entry marketing.

d. point-of-entry marketing.