Chapter 6 Multiple Choice - Marketing

Any interaction between a company and a customer Value proposition Customer service Touchpoint

Touchpoint

A company that achieves differentiation parity at a lower cost has implemented a successful cost-leadership strategy True or false

True

This describes the particular benefits a product will deliver to the customer Value proposition Price Content marketing

Value proposition

A(n) ______ strategy attempts to increase the perceived value of a product while controlling costs. - differentiation - integrated balanced approach - competitive implementation - cost-leadership

differentiation

For a differentiation strategy to strengthen a company's strategic position and boost its competitive advantage, ______. - increase in costs must exceed the increase in value creation - any increase in costs is unacceptable - any increase in value creation must not be more than the increase in costs - an increase in value creation must exceed the increase in costs

- an increase in value creation must exceed the increase in costs

Before beginning the market segmentation process, a firm should A) identify bases for segmenting markets B) forecast total market potential C) forecast market share D) select target market segments

A) identify bases for segmenting markets

Stakeholders can best be defined as ______. A) any person, company or other institution that has the potential to profit if a company does well, but also the potential to lose if the company does poorly. B) the individuals groups and organizations that are affected by the strategic outcomes achieved and have enforceable claims on a firms performance. C) people responsible for controlling or administering all or part of a company or similar organization D) people or organizations that buy goods or services from a store or business

B) the individuals groups and organizations that are affected by the strategic outcomes achieved and have enforceable claims on a firms performance.

User​ status, usage​ rate, and loyalty status are examples of which type of segmentation​ variable? Demographic segmentation Psychographic segmentation Geographic segmentation Behavioral segmentation Economic segmentation

Behavioral segmentation

The way a company intends a brand to be received Brand identity Brand image

Brand identity

The way consumers actually perceive a brand Brand identity Brand image

Brand image

Why is market segmentation carried out? - To break down large markets into smaller markets. - Provides an opportunity to surpass competitors. - By grouping together customers with similar needs, it provides a commercially viable method of serving these customers. - Allows the achievement of greater market share.

By grouping together customers with similar needs, it provides a commercially viable method of serving these customers.

Which factor would make a target segment more​ attractive? Contains many strong competitors Buyers have strong bargaining power relative to sellers Many possible substitute products exist Challenging for new entrants to come into the segment Contains powerful suppliers

Challenging for new entrants to come into the segment

To target the best market​ segments, the company first evaluates various factors related to market attractiveness. Of the​ following, which is NOT one of those​ factors? Evaluation of each​ segment's structural attractiveness Evaluation of each​ segment's size characteristics Evaluation of each​ segment's growth characteristics Compatibility with company mission and vision Compatibility with company objectives and resources

Compatibility with company mission and vision

Which of the following is NOT one of the specific ways in which companies can differentiate their market​ offerings? Product differentiation Image differentiation Services differentiation Channel differentiation Competitor differentiation

Competitor differentiation

The ProMark Company manufactures a pencil that is about five inches long and has no eraser. It sells the product primarily to golf courses and universities. What type of targeting strategy is the ProMark Company using?

Concentrated --> selects one specific group of consumers and designs a marketing mix specifically for that group.

In which targeting strategy does a firm go after a large share of one or a few smaller​ segments? Differentiated marketing Undifferentiated marketing Mass marketing Micromarketing Concentrated marketing

Concentrated marketing

A strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience Content marketing Social media Touchpoints

Content marketing

Value proposition is: Business-facing (focuses on the business) Customer-facing (focuses on the customer)

Customer-facing (focuses on the customer)

An example of segmented market would be A) Phillips marketing its product to all residents of the European Union with one marketing mix based on the concept of "Sense and Sensibility" B) high income and low income consumers being treated the same at Marks and Spencer C) a garden nursery seeing residents of urban and rural areas as one market needing trees D) Honda separating its potential customers into economy car buyers and luxury car buyers

D) Honda separating its potential customers into economy car buyers and luxury car buyers

Which of the following are three broad groups of consumer segmentation criteria? A) Behavioral, Psychological and profile criteria B) behavioral, gender and industry type variables C) Organizational size, demographic and behavioral variables D) Psychographic, geographic demographic, and behavioral variables

D) Psychographic, geographic demographic, and behavioral variables

Psychographic segmentation is based on A) the quantitative side of consumer demographic analysis B) the quantitative side of consumer geographic analysis C) individual's residential patterns and life cycle preferences D) grouping people according to their activities interests and opinions

D) grouping people according to their activities interests and opinions

Which type of​ market-coverage strategy involves targeting several market segments and designing separate offers for​ each? Micromarketing Undifferentiated marketing Concentrated marketing Niche marketing Differentiated marketing

Differentiated marketing

The Pillsbury company defines all individual consumers who are purchasers of flour as its target market. It also defines all businesses who purchase flour as its target market. What targeting strategy would be most appropriate in this case?

Differentiated marketing --> targeting both individual consumers and businesses, which are very different market segments.

What is one of the benefits of pursuing a differentiation strategy when it comes to the power of suppliers?- Differentiation provides protection against an increase in input prices - Differentiation results in costs that increase above acceptable thresholds - Differentiation provides protection against substitute products by lowering prices - Differentiation results in the erosion of margins.

Differentiation provides protection against an increase in input prices

What is market​ segmentation? - Evaluating each market​ segment's attractiveness and selecting one or more market segments to enter - Marketing to a mass market of homogenous buyers - Differentiating the​ firm's market offering to create superior customer value - Dividing a market into distinct groups of buyers who have different​ needs, characteristics, or behaviors and who might require separate marketing strategies or mixes - Arranging for a market offering to occupy a​ clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Dividing a market into distinct groups of buyers who have different​ needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

Through its mobile Whopper Detour​ promotion, Burger King offered discounted Whoppers to people close to a competing​ McDonald's restaurant. This is an example of which of the​ following? Hyperlocal social marketing Demographic segmentation Gender-neutral marketing Occasion marketing User status segmentation

Hyperlocal social marketing

The type of segmentation that forms segments of consumers who have similar needs and buying behaviors even though they are located in different countries is known as​ _________. demographic segmentation behavioral segmentation Intermarket segmentation geographic segmentation lifestyle segmentation

Intermarket segmentation

​________ is the act of dividing a market into distinct groups of buyers who have different​ needs, characteristics, or behaviors and who might require separate marketing strategies or mixes. Positioning Hyperlocal social marketing Differentiation Market segmentation Market targeting

Market segmentation

What are the four major steps in designing a customer​ value-driven marketing​ strategy, in the correct​ sequence? Positioning, market​ segmentation, market​ targeting, and differentiation Market​ targeting, market​ segmentation, differentiation, and positioning Market​ segmentation, differentiation, market​ targeting, and positioning Market​ segmentation, market​ targeting, differentiation, and positioning Market​ segmentation, market​ targeting, positioning, and differentiation

Market​ segmentation, market​ targeting, differentiation, and positioning

Which value proposition offers not only higher​ quality, but also confers prestige upon the​ buyer? Less for much less More for more The same for less More for less More for the same

More for more

Which of the following describes the variables that marketers use to segment business markets that differ from the variables used to segment consumer​ markets? Operating​ characteristics, purchasing​ approaches, pricing, and demographics Operating​ characteristics, purchasing​ approaches, situational​ factors, and demographics Operating​ characteristics, geography, situational​ factors, and pricing Operating​ characteristics, purchasing​ approaches, situational​ factors, and geography Operating​ characteristics, purchasing​ approaches, situational​ factors, and personal characteristics

Operating​ characteristics, purchasing​ approaches, situational​ factors, and personal characteristics

The development & execution of a how a brand wants to be perceived, how it's different than its competitors, and the role it takes in an overall industry Positioning Positioning statement Brand/product categories

Positioning

____ involves differentiating a market offering to occupy a​ clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Targeting Undifferentiated marketing Intermarket segmentation Positioning Segmenting

Positioning

Wording that expresses a brand's positioning approach and associated core concepts that help create differentiation from competitors Positioning strategy Positioning statement Positioning authenticity

Positioning statement

A positioning statement... Presents how the company wants to be seen Presents what the company strives to accomplish

Presents how the company wants to be seen

Amazon is now promising​ same-day pick-up of goods as well as local secure​ pick-up points. What point of differentiation is​ this? Channel differentiation People differentiation Image differentiation Product differentiation Services differentiation

Services differentiation

To determine which market segments to target and​ serve, the company first evaluates which of the following for each​ segment? Size and growth characteristics and compatibility with company objectives and resources only Size and growth characteristics only Compatibility with company objectives and resources only Size and growth​ characteristics, structural​ attractiveness, and compatibility with company objectives and resources Size and growth characteristics and structural attractiveness only

Size and growth​ characteristics, structural​ attractiveness, and compatibility with company objectives and resources

What are perceptual positioning maps used​ for? To implement a particular positioning strategy To show consumer perceptions of different brands on important buying dimensions To show consumer perceptions of an individual brand on important buying dimensions To find where to best position a product on a store shelf To compare a​ company's profitability with the profitability of competitors

To show consumer perceptions of different brands on important buying dimensions

The ability to purchase a product is a function of a) buying power. b) desire. c) willingness. d) authority. e) needs

a) buying power.

When effective programs can be designed for attracting and serving market​ segments, these segments are​ ________. differentiable substantial accessible measurable actionable

actionable

Which of the following can be used as a basis of segmentation? lifestyle cohorts usage rates

all of these

Which of the following is not a requirement or characteristic of a market? a) The ability to purchase a product b) A large number of people or organizations c) The authority to buy a product d) The willingness to use buying power e) The need for a specific product in a specific product category

b) A large number of people or organizations

Any group of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to buy such products is a(n) a) business market. b) market. c) undifferentiated market d) segmented market e) market variable

b) market

Which of these statements is not true about business markets? a) the purchase may be made to resell the item b) the purchase is always made by more than one individual c) the purchase may be made to use in general daily operations d) the purchase may be made to use in production of another product e) they can also be referred to as organizational markets

b) the purchase is always made by more than one individual

Although business marketers use many of the same variables to segment their​ markets, they also use some additional​ variables, which include all of the following EXCEPT​ ________. brand personalities purchasing approaches customer operating characteristics personal characteristics situational factors

brand personalities

In order to be considered a market, people do not have to have a) a need or desire for a particular product. b) the ability to purchase the product. c) discretionary income to purchase the product. d) the willingness to use their buying power. e) the authority to buy the specific products.

c) discretionary income to purchase the product.

Generally speaking, individuals who are unemployed would not be considered a target market for Mercedes or other luxury European import sedans because a) they would not desire such products. b) they would not be willing to purchase such products. c) they would not have the ability to purchase such products. d) such markets are narrowly defined geographically. e) they are not authorized to purchase such products

c) they would not have the ability to purchase such products.

Firms with limited resources often target a market niche that is either ignored or unimportant to larger firms. This represents​ a(n) _______ strategy. differentiated marketing undifferentiated marketing micromarketing mass marketing concentrated marketing

concentrated marketing

Which of the following is not a characteristic of a consumer market? a) it consists of purchasers who intend to consume or benefit from the purchased products b) they do not buy products for the main purpose of making a profit c) they are sometimes referred to as B2C markets d) their purchasing decisions are always made by only one individual e) each of us belongs to numerous markets of this type

d) their purchasing decisions are always made by only one individual

Consumers that do not own dogs are not likely to be in the market for dog food because a) they lack the authority to purchase the dog food. b) they do not possess the buying power for purchasing dog food. c) their ability to purchase the dog food is questionable. d) they do not have the need or desire for dog food. e) they are willing to use their buying power

d) they do not have the need or desire for dog food.

Adolescents are not considered part of the market for casinos because they a) have very little buying power. b) do not have the desire to gamble. c) are not willing to spend their money on gambling. d) cannot afford to gamble their savings. e) do not have the authority to gamble

e) do not have the authority to gamble

Patti's Potato Chips is a national potato-chip manufacturer. Calpurnia's Crisps is a small-batch gourmet potato-chip maker. Based on just this information, which of the following is the greatest advantage Patti's has over Calpurnia's? complements customer service economies of scale product features

economies of scale

The explosion in the​ men's personal care​ industry, with many cosmetics brands now successfully marketing​ men's lines is an example of​ ________ segmentation. age and​ life-cycle income gender behavioral psychographic

gender

What is one-to-one marketing called? direct marketing demand marketing micromarketing individual marketing

individual marketing

An auto manufacturer that has access to cheaper labor and raw materials than its rivals will have a competitive advantage regarding lower cost of ______ factors. - scaling - input - learning-curve - experience-curve

input

One important consideration in using a differentiated targeting strategy is that​ _______. it can increase costs focusing on what is common in consumers can potentially appeal to the largest number of buyers the demand for customized products is decreasing serving one or a few smaller segments can limit sales it is easier for the company because it only needs to manage one market offering

it can increase costs

A producer of consumer headphones that successfully differentiates its products with a patented noise-canceling technology and celebrity endorsements will enjoy which of the following benefits? (Check all that apply.) - less intense competition from imitators - an increased exposure to the threat of price war reduced per unit costs - the ability to charge a premium price

less intense competition from imitators AND the ability to charge a premium price

What is the process of grouping consumers into clusters who have similiar wants or needs? micromarketing concentrations strategy niche market segmentation

market segmentation

Dividing a market into smaller segments of buyers with distinct needs or behaviors that might require separate marketing strategies is known as​ __________. market targeting positioning differentiation market segmenting mass marketing

market segmenting

When a company engages in​ ________marketing it ignores market segment differences and targets the whole market with one offer. segmented concentrated mass differentiated niche

mass (undifferentiated)

The type of segment characteristic in which the​ size, purchasing​ power, and profiles of the segments can be quantified is known as​ __________. accessible differentiable measurable actionable substantial

measurable

Firms that manufacture seasonal products target their consumers primarily through​ ________ segmentation. psychographic income demographic age and​ life-cycle occasion

occasion

Once a company has decided which segments to​ enter, it must decide on its​ ________ strategy. positioning and differentiation channel and distribution advertising and sales promotion financial and revenue sales and marketing

positioning and differentiation

If competitors cannot easily copy the benefit a company chooses to​ promote, that benefit is said to be​ _______ distinctive superior profitable preemptive affordable

preemptive

​H2Coast, an automobile​ manufacturer, produces​ fuel-efficient hybrid vehicles that are targeted toward​ high-end exotic-vehicle collectors with ample leisure time. H2Coast most likely segments the consumer market based on​ ________ variables. geographic behavioral demographic psychographic universal

psychographic

A cost leader can achieve a competitive advantage by ______ -focusing on reducing cost without considering the effect on value -allowing people to customize their products ignoring diseconomies of scale -reducing costs below those of competitors while maintaining a similar value -choosing a differentiation strategy

reducing costs below those of competitors while maintaining a similar value

Economies of scale present an opportunity to increase profits because as the number of units within the relevant range increases, fixed costs ______. - vary only depending on the number of units produced - decrease dramatically - increase only slightly - stay the same

stay the same

Once segments have been​ identified, market​ ________ evaluates each​ segment's attractiveness and selects one or more to serve. differentiation micromarketing targeting segmentation positioning

targeting

The full positioning of a brand is called the​ brand's ________, which is the full mix of benefits on which a brand is differentiated and positioned. benefit proposition differentiation statement overall brand strategy value proposition positioning statement

value proposition

The​ _____________ is a​ brand's full positioning or the full mix of benefits on which the brand is positioned. value proposition brand's personality and voice differentiation strategy target marketing strategy positioning map

value proposition

In 2015 Target eliminated its​ "pink" and​ "blue" aisles, and it now sells lines such as a collection of​ back-to-school clothing,​ accessories, backpacks, and bedding that appeals to both boys and girls. This is an example of which type of​ marketing? Income Hyperlocal Lifestyle ​Gender-neutral Age and​ life-cycle

​Gender-neutral

Major variables used to segment consumer markets include which of the​ following? ​Geographic, demographic,​ psychographic, and psychological Ethnicity, geographic,​ gender, and income ​Income, gender,​ age, and ethnicity Income, age,​ geographic, and lifestyle ​Geographic, demographic,​ psychographic, and behavioral

​Geographic, demographic,​ psychographic, and behavioral

In addition to segmentation and​ targeting, there are two other major steps in designing a customer​ value-driven market​ strategy: ________ seeks to create superior customer value in the mind of the​ consumer, and​ ________ seeks to firmly place the market offering in the minds of target customers. differentiation; segmentation ​differentiation; positioning positioning; segmentation ​positioning; target marketing positioning; differentiation

​differentiation; positioning