B A 370 Chapter 9 Ungraded Practice

The light beer commercial with the slogan "less filling, tastes great" was based on ________ segmentation.

benefit

Toothpastes sold in supermarkets and pharmacies promise various results, such as whiter teeth, protection against gum disease, tartar control, or fresh breath. Toothpaste marketers are using ________ segmentation.

benefit

Social networking sites that compete directly with Facebook have a difficult time surviving; however, LinkedIn has survived by focusing on the needs of business professionals, who seek to network with colleagues, share their expertise, post online résumés, and look for new jobs. What segmentation method is LinkedIn using?

benefit segmentation

Retail store chains often use ________ data to tailor each store's assortment to the preferences of the local community.

geodemographic

Justin is looking to expand his pet grooming business and wants to evaluate the profitability of a potential new market. The area he is looking at has 2,000 homes and Justin estimates that 20 percent of them would be likely to use his service. He charges $45 per grooming and on average customers groom their pets six times a year. Justin estimates his variable costs to expand his business will be $10 per grooming and his fixed costs are $10,000. How much profit would Justin make on this new segment?

$72,240

________ segmentation is the segmentation method most directly related to satisfying consumers' needs and wants.

Benefit

________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach.

Demographic

A complex product that is best described in writing will be difficult to explain to consumers who are unable to read. For this reason, a segment in which many consumers could not read would be considered unattractive because the consumers would not be responsive.

False

NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of its fans were female. This is an example of psychographic segmentation.

False

Of the various methods for segmenting, or breaking down, the market, demographic segmentation is the one that delves into how consumers actually describe themselves.

False

The STP process is made up of strategy, targeting, and promotion.

False

For products like sugar or pepper, marketers should probably use an undifferentiated targeting strategy.

True

Giant Food Stores in suburban Washington, DC, adjusts its ethnic food aisle offerings based on the ethnic groups living near each store. Giant Foods is using geodemographic segmentation.

True

It would be logical for bathing suit marketers to use geographic segmentation.

True

Perceptual maps include positions of current brands as well as ideal points where a consumer segment would want a product to be.

True

Positioning strategies generally focus either on how the product benefits the consumer or on how it is better than competitors' products.

True

________ compares the price of a product to its benefits.

Value

When Derek's Hardware, a New Jersey-based discount hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in

When Derek's Hardware, a New Jersey-based discount hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in

Thomas wants to position his firm against his competitors. In doing so he should

avoid looking too much like the competitor so as not to confuse the target segment.

A company that sells only herbal iced tea should use a(n) ________ targeting strategy.

concentrated

Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies.

concentrated

Boho Clothing an online trendy women's clothing site, targets college-educated women between 25 and 40 years old with average household income of $70,000 or more. This is a form of ________ segmentation.

demographic

When Kellogg's offers different cereals, such as Cocoa Krispies and Special K, it is segmenting the market by ________ segmentation methods.

demographic

Psychographics is the segmentation method that delves into how consumers

describe themselves.

In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into "Butterball" turkeys. In doing so, the company

differentiated its product.

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Adidas uses the different brands to pursue a(n) ________ strategy.

differentiated targeting

After assessing the market growth potential and market competitiveness in Brazil for his company's baby products, Jaime wanted to evaluate market access. To do this, Jaime would consider

ease of accessing or developing distribution channels and brand familiarity.

The first step in the STP process is to

establish the overall strategy or objectives.

Darlene has identified four potential market segments for her Don't Do It Yourself handyman service. The next step is to

evaluate the attractiveness of each segment.

The phrase "birds of a feather flock together" captures the idea of ________ segmentation.

geodemographic

Let's Dish is a meal-preparation service operating in three states. Customers visit a Let's Dish store to select and partially prepare their meals, which are then packaged for the freezer. At home, the customer can pull a meal out of the freezer and warm it in the oven or microwave. If Let's Dish wanted to expand into new areas of the United States, what segmentation method would probably be most useful in choosing new locations?

geodemographic segmentation

A differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market; this strategy

is likely more costly than an undifferentiated strategy.

Vittorio is considering psychographics as a way to segment the market for his small travel agency. This approach to segmentation offers him an advantage because

it is based on underlying motivations of target customers.

When Talbots, an upscale women's clothing store, tries to portray an image of "traditional, conservative, and with good taste," it is appealing to its target market's

lifestyle.

One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify its business and

lower overall risk.

Edmund has found that both commercial and residential real estate buyers respond positively to his marketing communication message. Edmund has identified ________ that respond similarly to his marketing efforts.

market segments

An engaged couple is meeting with a bakery to order their wedding cake. They want a cake that will represent their individual styles and tastes. Bakeries that cater to such unique requests are pursuing what kind of targeting strategy? Multiple Choice

micromarketing

When Derek's Hardware, a New Jersey-based discount hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in

misguided geographic segmentation.

Adidas Group owns Reebok and Rockport—both of which offer different types of shoes. Having a variety of brands allows Adidas to use a differentiated targeting strategy to

obtain a bigger share of the shoe market.

Which of the following segmentation methods is being used when M&M's offers special wedding-themed packaging for customized M&M's (imprinted with the names of the bride and groom)?

occasion segmentation

We often see advertisements touting a product as being made with natural ingredients or being long-lasting. Marketers using these types of promotions are positioning their products based primarily on

product attributes.

Baby Boomers represent a huge demographic segment for travel marketers. Baby Boomers are also heavily motivated by self-fulfillment, which creates the possibility of ________ segmentation.

psychographic

Marketers have found that ________ segmentation is often more useful for predicting consumer behavior than ________ segmentation.

psychographic; demographic

College students can be a less ________ market segment because students' media habits are quite diverse, and firms might have to use a wide variety of media to attract this segment.

reachable

Wang wants to sell personal website services to American soldiers in the Middle East. Because of the difficulty of communicating with people in a combat zone, Wang may have trouble with this segment not being

reachable.

Sarita is opening an upscale women's clothing store in a growing suburban residential area. Sarita knows her target market is upper-income women living within 20 miles of her store. She can't afford to purchase Tapestry analysis, so she will most likely use ________ as a basis for targeting her market.

real estate values by subdivision

Darlene has identified four potential market segments for her Don't Do It Yourself handyman service. She will now evaluate whether or not each segment is attractive relative to all of the following except

realistic.

When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be ________ to the company's offerings.

responsive

For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's offering. In other words, the market segment must be

responsive.

The manager of Oceanside Yacht Club wanted members of the very upscale club to use the bar and dining facilities more frequently. He offered a two-for-one "happy hour" special, but few members showed up. The manager did not have a grasp of what would make his target market

responsive.

Which of the following would be used in calculating the profitability of a segment?

segment size

Gerardo wants to develop an Internet-based auction business and is working through the STP process. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Gerardo now has to

select a target market.

To develop psychographic segments, the marketer must understand consumers'

self-values, self-concept, and lifestyles.

Overriding desires that drive how we live our lives are called

self-values.

Almost all U.S. political candidates use some combination of red, white, and blue in their campaign posters. They are trying to position themselves in voters' minds using

symbols.

One of the reasons marketers use loyalty segmentation is

the high cost of obtaining new customers.

In the Circles for a Successful Value Proposition framework, the value proposition is represented by

the intersection between customer needs/wants and the firm's product's benefits.

Fiona is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will specifically help her in this analysis?

the number of children needing day care in the immediate area

After assessing the market growth potential in Brazil for his company's baby products, Jaime wanted to evaluate market competitiveness. To do this, Jaime would consider

the number of competitors, entry barriers, and product substitutes.

Which of the following sis a main component of a value proposition?

the target market

Which of the following defines a value proposition?

the unique value that a product or service provides to customers

Whenever the president of the local public university promotes the institution, he emphasizes the university's price (much lower than neighboring private colleges) and high quality. He is positioning the institution based primarily on

the value proposition.

Maintaining a unique ________ can be sustained in the long term only in monopoly situations or monopolistic competition situations.

value proposition

Frederico was assigned to help create a positioning strategy for his employer's products based on product attributes. He should consider

what the target market would consider the most important features.

While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do not help marketers determine

what their customers need.