marketing 380 midterm 1 ch.9

Families, bachelors, and retirees could be considered separate market segments for a company promoting travel packages.

True

Married couples enter the "empty nest" stage once their children start living on their own.

True

Micromarketing can target even individuals.

True

A consumer goods company segments its markets on the basis of purchase patterns of their customers. The company groups its consumers who regularly buy their product into heavy, moderate, and light users, and nonusers. This segmentation approach is an example of _____.

segmentation by usage rates

Which of the following statements is true of differentiated marketing?

Differentiated marketing helps a company to diversify and reach new customers.

_____ are computer systems that help marketers analyze marketing information by assembling, storing, manipulating, and displaying data by their location.

GIS

Which of the following statements is true regarding micromarketing?

Micromarketing is more narrowly focused than concentrated marketing.

Which of the following segmentation approaches is most likely to help marketers quantify aspects of consumers' personalities and lifestyles to create goods and services for a target market?

Psychographic segmentation

Clairol offers a line of hair color called "Nice n Easy" which allows women to touch-up their hair and easily cover their gray hairs conveniently and easily at home. Based on research, Clairol knows that women aged 30 and above are most likely to need some type of color product to hide their gray hair and maintain a youthful appearance. What type of segmentation does Clairol use by targeting women over 30?

True

Japanese automaker, Subaru, generates more than half of its sales in just four states (Alaska, Colorado, Maine, and Washington). These states constitute Subaru's:

core region

_____are those born between 1946 and 1964 and are a popular segment to target because of their numbers and income levels.

baby boomers

The product-related segmentation of consumers based on the strength of their attachment and allegiance to their preferred products is called _____ segmentation.

brand loyalty

_____ are goods and services purchased for use either directly or indirectly in the production of other goods and services for resale.

business products

Lululemon Athletica, which specializes in athletic wear for women, recently launched a website featuring Ivivva, a new line of athletic and dance clothing for girls. Based on the information given in this example, Lululemon Athletica is using _____ segmentation to segment its markets.

demographic

Socioeconomic market segmentation is another name for _____ segmentation.

demographic

_____ defines consumer groups according to variables such as gender, age, income, occupation, education, sexual orientation, household size, and stage in the family lifecycle.

demographic

A _____ marketing strategy focuses on producing several products and pricing, promoting, and distributing them with several marketing mixes designed to satisfy smaller segments.

differentiated

According to Engel's laws, the percentage of income spent on food increases with increased income.

false

As compared to undifferentiated marketing, applying a micromarketing strategy allows companies to reach larger markets.

false

Automobile manufacturers and food processing companies segment a particular geographic region based on the same factors.

false

Division of the total market into smaller, relatively homogeneous groups is known as market optimization.

false

Geographic segmentation is also called socioeconomic segmentation.

false

Marketers rarely encounter differences among members of a target group, as they segment potential consumers into homogeneous groups.

false

Psychographic segmentation is the most common method of market segmentation.

false

Raw silk is an example of a consumer product.

false

Since rubber purchased by Goodyear is utilized to manufacture tires that are ultimately used by consumers for their automobiles, rubber is a consumer product for Goodyear.

false

The first stage in the market segmentation process, after identifying promising segments, is to produce a forecast of market potential within each segment.

false

The group born between 1968 and 1979, now generally in their early 30s to early 40s are referred to as Generation Y.

false

Typically, a single marketing mix strategy attracts all sectors of a market.

false

Typically, magazines can be successfully marketed to consumers through mass marketing strategies.

false

You want to encourage your longtime customers to continue their relationship with the service your company provides, and so you implement an approach commonly used to segment a market by brand loyalty. What approach did you use?​

frequent purchase program

Title Nine is a specialty retailer targeting active women with a proprietary mix of apparel designed for active lifestyles and sports. The company began as a direct marketer - using only catalogs and its website to generate sales. However, over the years, Title Nine has opened retail outlets across the country. The company identifies strategic opportunities for new stores based upon the sales generated by current customers in the potential market area. For example, if Title Nine has a significant number of purchasers in the Boston area, they will further analyze the market and select a location for a retail outlet. What type of segmentation strategy is Title Nine utilizing when selecting a market for a new store location?

geographic

Compared to undifferentiated marketing, the firm that practices differentiated marketing may generally expect:

greater promotional costs

A micropolitan statistical area is an area that:

has at least one town of 10,000 to 49,999 people.

Which of the following is the largest racial/ethnic minority group in the United States?

hispanic americans

An undifferentiated marketing strategy:

is efficient from a production point of view.

Places where more than half the population is a single racial or ethnic group other than non-Hispanic white are called as _____.

majority-minority counties

Dell Computer offers a variety of desk top, tablet and laptop computers. One popular product line is Dell's Alienware - built for gamers with high speed processors, enhanced memory and special graphics cards. What marketing principle is Dell utilizing with its Alienware product line?

market segmentation

The division of the total market into smaller, homogenous groups is called _____.

market segmentation

The four basic determinants of a market-specific segmentation strategy include company resources, competitors' strategies, stage in the product lifecycle, and:

product homogeneity

Sustainability has become an important value among individuals in the United States and some believe that man-made factors such as the increased use of diesel and gasoline in cars has led to global warming. Those worried about global warming and seeking ways to reduce their carbon footprint and have invested in products such as solar panels for their homes and electric or hybrid vehicles. What type of segmentation would be most appropriate for Toyota to utilize in marketing its Prius - a hybrid vehicle?

psychographic

The 80/20 principle states that:

roughly 80 percent of total product sales come from 20 percent of customers.

A young single person setting up an apartment for the first time is most likely to be a good prospect for:

small home appliances such as coffee makers and toasters.

Which of the following products would be the best choice to be marketed using an undifferentiated marketing strategy?

table salt

The determination of whether pencils are consumer products or business products is based on:

the purpose for which the pencils are purchased.

_____ is the largest metropolitan area in the world.

tokyo

A hotel purchases towels for use in its rooms. In this context, these towels will be considered business products.

true

Asian Americans are an attractive target to marketers as they have the fastest rising income.

true

Buyers in metropolitan statistical areas exhibit social and economic homogeneity.

true

Concentrated marketing is also known as niche marketing.

true

Concentrated marketing strategy ties a firm's growth to a specific market segment.

true

Detergent packets purchased by a leading laundry service are considered business products.

true

Dividing an overall market into homogeneous groups based on gender and age would constitute demographic segmentation.

true

During the process of market segmentation, finalizing the marketing strategy and tactics helps firms to determine the costs of marketing and the expected level of resources it must commit.

true

Geographic indicators such as job growth give useful guidance to marketers, depending on the type of products they sell.

true

Geographic information systems (GIS) simplify the job of analyzing marketing information by relating data to their locations.

true

Geographic information systems help marketers map out most efficient delivery routes.

true

Geographic segmentation provides useful distinctions when regional preferences or needs exist.

true

Majority-minority counties are places where more than half the population is a single racial or ethnic group other than non-Hispanic white.

true

Primary metropolitan statistical areas (PMSAs) are identified within areas of 1-million-plus populations.

true

Products bought by ultimate customers for personal use are known as consumer products.

true

Psychographic segmentation helps marketers to gain a sharper insight into consumer purchasing behavior.

true

The market segmentation that is based on the stages of the family lifecycle is a form of demographic segmentation.

true

The marketing strategy that targets potential customers based on specific occupation or lifestyle is called micromarketing.

true

The number and size of the market segments chosen by a firm must match its marketing capabilities.

true

The target market for a product is the specific segment of consumers most likely to purchase that particular product.

true

Up & Away Flying Corporation recently began manufacturing private helicopters. If they have a limited advertising budget, concentrated marketing would be the ideal marketing strategy for this firm.

true

Very few residents of a micropolitan statistical area commute outside the area.

true

Adrienne has received her first solo assignment since she was hired as a junior marketing researcher for a national food and beverage distributor. She has been asked to formulate some preliminary ideas about new product development for coffee products sold in the distributor's on-premise consumption outlets. She understands that this assignment is a test to see whether she knows the process. She decides to start with the basics, adding a twenty-first-century twist. How will Adrienne begin the process of formulating ideas about new product development?​

​Adrienne will send online coupons to customers who are Facebook friends or have visited the company's website, and ask them to complete a brief online AIO lifestyle survey that inquires about their activities, interests, and opinions.

Psychographic segmentation is not an exact science. While it helps to paint an overall picture of the psychological motivations of consumers, those motivations are influenced by countless variables, such as family, occupation, and culture. Select the statement below that gives an accurate description of the effective use of psychographic segmenting.​

​Psychographic segmentation is effective when it helps to match a company's product offering with the types of consumers who use its products.

Market segmentation is a tool for marketers to use, but its effectiveness depends on four basic requirements. Three of the requirements for effective market segmentation are as follows: (1) the segment must have measurable purchasing power and size; (2) marketers must be able to promote and serve the market; (3) the identified segment must be large enough to bring in a profit. Select the fourth requirement for effective market segmentation from the choices below.​

​The identified segments must match the company's marketing capabilities.

​A junior member of your marketing department has recommended demographic segmentation for your fast food brand. In a memo, he wrote: "We should be marketing to females who are Hispanic, low-income, unmarried, and have four or more children." You express at least one strong concern about this recommendation. What concern(s) do you express?

​The recommendation could lead to stereotyping and market alienation.

​Market segmentation has interested you ever since your first marketing course, and you want to work for the type of organization that uses this technique. This means you should avoid pursuing a job with:

​You could pursue a job with any of the above, since all would use market segmentation.

Cecile is an avid cook and enjoys spending time in the kitchen as well as watching shows on the Food Network. She recently remodeled her kitchen and purchased new appliances. Since she enjoys cooking so much, Cecile purchased a commercial range from a local restaurant supply store and it features double ovens and 12 burners. Her contractor had to make some modifications to enhance the safety of this stove for use in her home but no other changes were needed. What type of product is the stove in the context of this example?

​consumer

Bobby Flay is a popular celebrity chef who is famous for his use of the grill to create his signature dishes. Recently, Bobby Flay debuted a line of grilling accessories and believes these products will be successful because he has a loyal following among men aged 30 to 60. What type of segmentation is utilized for this new line of grilling accessories?

​demographic

​The Bates Lighting Company has two divisions, business and consumer products. Because of poor profits, it may downsize the consumer division. This could mean loss of jobs for people involved with the marketing of:

​desk lamps for offices or college dorms ​flashlights for buildings that lose power

The company, Eco Nuts was featured on Shark Tank and has become one of the show's success stories due to the growing acceptance of their product as an alternative to traditional laundry detergent. ​The company typically targets women, aged 40 to 65 who have total annual household income above $60,000 and are concerned about sustainability. What step in the market segmentation process has Eco Nuts utilized with this description?

​develop a relevant profile for each segment

Bose has developed a new high fidelity line of speakers and is attempting to determine the amount of sales that could be generated by target customers in various segments in order to determine whether or not they should proceed with introduction of the new speakers. Which step of the marketing segmentation process best describes this activity?​

​forecast market potential

The United States population is increasingly diverse and more companies are recognizing the opportunity to target the Hispanic population since they are expected to become the dominant ethnic group in the near future. Which requirement of segmentation does the growing number of Hispanic customers fulfill?

​large market segment offering good profit potential

Marketers adopt different strategies in order to promote their products in the market. But what is a market? Select the best definition of market from the choices below.​

​people and organizations with purchasing power, authority, and willingness to buy goods and services