Mk 3010 Test 1 Chapter 9

The perceptions of __________ are being measured in a perceptual map. A. competitors B. strategic planners C. the company's executive team D. the current R&D team E. consumers

E

The phrase "birds of a feather flock together" captures the idea of __________ segmentation. A. geodemographic B. benefit C. psychographic D. loyalty E. geographic

A

Which of the following segmentation methods is being used when M&M's offers special weddingthemed packaging for customized M&M's (imprinted with the names of the bride and groom)? A. occasion segmentation B. geographic segmentation C. lifestyle segmentation D. benefit segmentation E. loyalty segmentation

A

Which of the following would NOT be used in calculating the profitability of a segment? A. segment perceptions B. segment size C. segment adoption percentage D. profit margin percentage E. fixed costs

A

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Having a variety of brands allows Adidas to A. engage in micromarketing for hard-to-fit shoe customers. B. obtain a bigger share of the shoe market. C. use mass marketing techniques. D. use geographic segmentation. E. generate economies of scale in advertising expenditures.

B

While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do NOT help marketers determine A. how old their customers are. B. what their customers need. C. where their customers live. D. which customers have young children. E. what income brackets their customers are in.

B

__________ is an extreme form of a targeting strategy. A. Macromarketing B. Micromarketing C. Benefit marketing D. Differentiated targeting E. Concentrated targeting

B

A __________ is often used to illustrate the position of a firm's products or brands in consumers' minds. A. mass marketing analysis B. psychographic profile C. perceptual map D. loyalty timeline E. PRIZM analysis

C

VALS is the most widely used __________ segmentation tool. A. geographic B. behavioral C. psychographic D. benefits E. geodemographic

C

Whenever Donald calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local business person and has been in business over twenty years. Donald is __________ his business relative to his competition. A. segmenting B. packaging C. positioning D. pricing E. targeting

C

__________ involves defining the firm's marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of the firm's offerings relative to competitors' offerings. A. Processing B. Perceptualizing C. Positioning D. Proportioning E. Prospecting

C

"Why create a perceptual map?" asked David. Andreas, the senior marketing manager, gave him four reasons. Which of the following is NOT a valid reason? A. "It's a quick way for senior managers to see not only our product but each of our competitors, all at once." B. "It's a way to demonstrate the dimensions that our customers think are important." C. "It shows where we aren't—and where our competitors aren't—in our customers' and prospects' minds." D. "It's a way to show the position of the company throughout the product's life cycle." E. "We can easily show where we are positioned and how large the market is."

D

A differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market; this strategy A. is the cheapest option. B. requires the use of advanced advertising techniques. C. rarely works. D. is likely more costly than an undifferentiated strategy. E. is ineffective without multiple brand names.

D

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Adidas uses the different brands to pursue a(n) __________ strategy. A. concentrated targeting B. micromarketing C. benefit targeting D. differentiated targeting E. undifferentiated targeting

D

After assessing the market growth potential for his company's baby products in Mexico, Harmon wanted to evaluate market competitiveness. To do this, Harmon would consider A. mass marketing distribution potential and logistical support. B. the current size of the market and the expected growth rate. C. ease of pricing control and number of promotional outlets. D. the number of competitors, entry barriers, and product substitutes. E. profitability and customer buying behavior.

D

Which of these is NOT one of the main components of a value proposition? A. The target market. B. The name of the product or brand being offered. C. The product/service category or concept being offered. D. The price of the product or service being offered. E. The unique point of difference or benefits offered.

D

With access to the Internet nearly universal in the United States, many potential market segments have become more A. substantial. B. perceptive. C. identifiable. D. reachable. E. quantifiable.

D

Within a perceptual map, a(n) __________ represents where a particular market segment's desired product would lie. A. point of parity B. strategic target C. PRIZM cluster D. ideal point E. benefit centroid

D

__________ segmentation is the segmentation method most directly related to value creation for consumers. A. Geographic B. Demographic C. Psychographic D. Benefit E. Geodeomographic

D

When Mr. How, a Pennsylvania-based discount lumber and hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in A. concentrated segmentation. B. geodemographic segmentation. C. benefit segmentation. D. psychographic segmentation. E. misguided geographic segmentation.

E

__________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach. A. Geographic B. Psychographic C. Behavioral D. Benefits E. Demographic

E

One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify its business and A. decrease advertising spending. B. focus on a single market segment. C. lower overall risk. D. use undifferentiated strategies in micro markets. E. more widely market basic commodities.

C

A university using benefit segmentation and targeting students who want to get a degree quickly while still working full time would focus on A. providing classes at convenient times and offering online courses. B. discount pricing for students taking more than twelve credit hours. C. the higher average salaries earned by college graduates. D. the great variety of classes offered. E. the number of Nobel Prize winners on the faculty.

A

After assessing the market growth potential and market competitiveness for his company's baby products in Mexico, Harmon wanted to evaluate market access. To do this, Harmon would consider A. ease of accessing or developing distribution channels and brand familiarity. B. the current size of the market and the expected growth rate. C. ease of pricing control and number of promotional outlets. D. the number of competitors, entry barriers, and product substitutes. E. profitability and customer buying behavior.

A

Beer marketers know that high school educated, working-class males from the ages of 25 to 40 make an attractive market for their products. This is a __________ segment of the beer market. A. demographic B. psychographic C. behavioral D. benefits E. geographic

A

Carlos has identified four potential market segments for his Rent-A-Nurse service. He will now compare the segments to see whether they are distinct from each other. Carlos is evaluating whether each segment is A. identifiable. B. responsive. C. profitable. D. reachable. E. substantial.

A

Education marketers have learned that the primary motivations of most nontraditional college students are self-respect and self-fulfillment. Understanding the values of this market segment allows marketers to A. emphasize the benefits these consumers are looking for in a college education. B. lower the price for this market segment. C. offer alternative courses based on geographic location. D. employ loyalty marketing strategies. E. use micromarketing strategies.

A

Fiona wants to sell a local advertising calendar. There are 1,000 households in her community, and she estimates that 30 percent will buy a calendar. The printing company will charge a $100 setup fee, and calendars will cost $4.00 each to print. What price will she need to charge to cover all costs and make a $500 profit? A. $6.00 B. $7.00 C. $8.00 D. $9.00 E. $10.00

A

Godiva Chocolates produces specially decorated boxes of candies for Valentine's Day, Easter, and Christmas. This is an example of ________ segmentation. A. occasion B. loyalty C. geographic D. psychographic E. demographic

A

Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power. Greta is concerned with whether the segment is A. substantial. B. responsive. C. profitable. D. reachable. E. identifiable.

A

In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into Butterball turkeys. In the process, the company A. differentiated its product. B. streamlined its delivery process. C. created a new class of micromarketing. D. defined consumers' basic needs. E. redefined mass customization.

A

Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order shoes with custom color combinations. This is a form of A. micromarketing. B. concentrated targeting. C. psychographic segmentation. D. differentiated targeting. E. undifferentiated targeting.

A

One of the reasons marketers use loyalty segmentation is A. the high cost of finding new customers. B. government tax incentives. C. accounting difficulties associated with identifying new customers. D. rapid population increases. E. the failure of micromarketing as a workable strategy.

A

Overriding desires that drive how we live our lives are called A. self-values. B. self-concept. C. self-esteem. D. self-confidence. E. self-control.

A

PRIZM and Tapestry divide and sort small geographic areas into categories using 60 or more demographic and lifestyle characteristics. These market research tools are examples of __________ segmentation. A. geodemographic B. benefit C. psychographic D. loyalty E. geographic

A

Paul is considering psychographics as a way to segment the market for his small travel agency. This approach to segmentation offers him an advantage because A. it is based on underlying reasons people make choices. B. it is easier to use than demographics. C. the travel business doesn't respond well to other approaches to segmentation. D. psychographics is the preferred method for service businesses. E. psychographic segmentation is the least expensive method.

A

Retail store chains often use __________ data to identify other locations with similar characteristics and purchasing behavior where it might make sense to open additional stores. A. geodemographic B. benefit C. psychographic D. loyalty E. geographic

A

Television advertising has recently expanded to include mini-ads, which are short ads lasting five to ten seconds. These ads are most useful in advertising to men, since men are more likely than women to channel surf during commercial breaks. This type of advertising will be more useful to marketers engaged in __________ segmentation. A. demographic B. psychographic C. behavioral D. benefits E. geographic

A

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. A. benefit B. geodemographic C. psychographic D. loyalty E. demographic

A

When Penguin Catering Services first opened, the owner decided to target only events at resorts in its geographic region. Penguin Catering was using a(n) __________ targeting strategy. A. concentrated B. micromarketing C. benefit-driven D. differentiated E. undifferentiated

A

When Starbucks first opened, many critics suggested, "No one will pay $4.00 for a cup of coffee." Starbucks' critics suggested consumers would not be __________ to the company's offerings. A. responsive B. perceptive C. identifiable D. reachable E. quantifiable

A

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 A. lifestyle. B. geodemographics. C. demographics. D. loyalty. E. PRIZM segment.

A

When Victoria's Secret offers different product lines, such as its Pink line, it is trying to capture the market by A. segmenting, targeting, and positioning. B. offering everything to everyone. C. trying lots of options to find out which one works. D. continual test marketing. E. focusing exclusively on its Pink brand.

A

When evaluating the attractiveness of the segment, if a segment is expected to react positively to the firm's offering, we say that the segment is A. responsive. B. identifiable. C. reachable. D. substantial. E. reactive.

A

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 A. the value proposition. B. product attributes. C. symbols. D. competitive comparisons. E. profitability.

A

Which of the following defines a value proposition? A. the unique value that a product or service provides to customers B. a special discount offer dropping the price C. an advertisement that talks about value D. a display of the position of products or brands in the consumer's mind E. the one feature that will prompt a customer to buy the product

A

Beverage companies often use television commercials with images of young people laughing and enjoying themselves on a beach or in a club. These images are designed to appeal to consumers' __________, suggesting "be like me." A. geographic choices B. self-concepts C. loyalty references D. benefit perceptions E. demographics

B

Corporate pilot fish are former employees who start a new business based primarily on contacts and contracts with their old company. A corporate pilot fish would probably pursue a __________ targeting strategy. A. macromarketing B. micromarketing C. benefit-based D. differentiated E. undifferentiated

B

Differences in weather and climate create opportunities for A. concentrated targeting. B. geographic segmentation. C. benefit segmentation. D. psychographic segmentation. E. demographic segmentation.

B

Firms use a differentiated targeting strategy because A. it is easier than mass marketing. B. it helps to obtain a bigger share of the market. C. it is better than focusing on individual or small groups of potential customers. D. most market segments are too small to be profitable. E. banks are more willing to extend credit to companies with this strategic approach.

B

Segmentation, targeting, and positioning A. are terms that can be used interchangeably in developing marketing plans. B. are part of a firm's marketing strategy. C. should be done simultaneously so synergies can help streamline the effort. D. are part of the marketing plan but bear little direct relationship to the marketing mix. E. are optional elements of a marketing plan.

B

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 resumés, and look for new jobs. What segmentation method is LinkedIn using? A. loyalty segmentation. B. benefit segmentation. C. psychographic segmentation. D. geodemographic segmentation. E. demographic segmentation.

B

The manager of Plantation River Country 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 A. substantial. B. responsive. C. identifiable. D. reachable. E. quantifiable.

B

We often see advertisements touting a product as being made with natural ingredients, or being longlasting. Marketers using these types of promotions are positioning their products based primarily on A. the value proposition. B. product attributes. C. symbols. D. competitive comparisons. E. profitability.

B

What is the best situation in the Circles for a Successful Value Proposition framework? A. The firm's benefits overlap with both customer needs/wants and competitors' benefits. B. The firm's benefits overlap with customer needs/wants but not with competitors' benefits. C. The firm's benefits overlap with competitors' benefits but not with customer needs/wants. D. Customer needs/wants overlap with both the firm's benefits and competitors' benefits. E. None of the three circles overlaps.

B

Alex has found that both commercial and residential real estate buyers respond positively to his marketing communication message. Alex has identified __________ that respond similarly to his marketing efforts. A. mass customization consumers B. geographic segments C. market segments D. self-concept customers E. geodemographic segments

C

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 A. the value proposition. B. salient attributes. C. symbols. D. the competition. E. perceptual maps.

C

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. A. geographic B. self-concept C. psychographic D. benefit E. behavioral

C

Geodemographic segmentation can be particularly useful for __________, because customers typically patronize stores close to their neighborhood. A. Internet marketers B. wholesalers C. retailers D. consumer goods manufacturers E. cable TV networks

C

Gloria is opening an upscale women's clothing store in a growing suburban residential area. Gloria knows her target market is upper-income women living within twenty miles. She can't afford to purchase a PRIZM or Tapestry analysis, so she will most likely use __________ as a basis for targeting her market. A. voter registration lists B. the city phone book C. real estate values by subdivision D. public school enrollment data E. new construction data

C

If values provide goals, and self-concept is the way we see ourselves, lifestyles are A. visual images of how we should live our lives. B. our underlying motivations. C. the way we live our lives to achieve our goals. D. motivations turned into perceptual maps. E. determined by demographics.

C

In the Circles for a Successful Value Proposition framework, the value proposition is represented by A. the intersection between customer needs/wants and competitors' benefits. B. the intersection between the firm's benefits and competitors' benefits. C. the intersection between customer needs/wants and the firm's product's benefits. D. the intersection between all three of the circles. E. the part of the firm's benefits that doesn't overlap with anything.

C

Jim wants to position his firm against his competitors. In doing so he should A. never select a competitor in the same neighborhood. B. avoid making the competitor's product look undesirable. C. avoid looking too much like the competitor so that he'd confuse the target segment. D. avoid discussing the strengths of his product so that competitors won't be aware of his product quality. E. avoid discussing the weaknesses of his competitors so they won't retaliate.

C

Kim's Kayak Tours initially identified active retirees living in the retirement community nearby as one of its target markets. Kim then tailored her service and marketing message to the interests and schedules of that audience. Kim initially used __________ segmentation and then used __________ segmentation. A. micromarketing; loyalty B. lifestyle; macromarketing C. geodemographic; lifestyle D. geographic; loyalty E. behavioral; geodemographic

C

Marketers have found that __________ segmentation is often more useful for predicting consumer behavior than __________ segmentation. A. demographic; psychographic B. geographic; geodemographic C. psychographic; demographic D. demographic; behavioral E. demographic; benefit

C

NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of race fans were female. This is an example of __________ segmentation. A. geographic B. psychographic C. demographic D. benefits E. behavioral

C

Psychographics is the segmentation method that delves into how consumers A. adjust to demographic changes. B. allocate scarce incomes to a variety of goods and services. C. describe themselves. D. value their livelihoods. E. believe other people see them.

C

The first step in the STP process is to A. identify the segmentation methods to be used. B. produce a list of strengths and weaknesses of the firm's past marketing strategies. C. clearly articulate the firm's vision or marketing strategy objectives. D. select target markets. E. develop a marketing mix, so that an appropriate segment can later be identified.

C

Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation A. is available only in limited geographic areas. B. is rarely used and unproven. C. offers only one-to-one marketing potential. D. is a more expensive method for identifying potential customers. E. is still an unproven area.

D

College students can be a less __________ market segment because students' media habits are quite diverse. A. substantial B. perceptive C. identifiable D. reachable E. quantifiable

D

For products like clothespins, which provide the same benefit for all consumers, marketers should probably use a(n) ________ strategy. A. concentrated targeting B. lifestyle segmentation C. benefit segmentation D. undifferentiated targeting E. differentiated segmentation

D

In the Circles for a Successful Value Proposition framework, the portion of the customer needs/wants circle that doesn't overlap with anything else represents A. the firm's value proposition. B. competitors' value propositions. C. low-priority needs and wants that customers are willing to give up. D. unmet customer needs/wants. E. unknown customer needs/wants that the firm does not understand.

D

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 U.S., what segmentation method would probably be most useful in choosing new locations? A. loyalty segmentation. B. benefit segmentation. C. psychographic segmentation. D. geodemographic segmentation. E. demographic segmentation.

D

Marco was assigned to help create a positioning strategy for his employer's products based on product attributes. He should consider A. the features the engineers feel are most important. B. the ways the sales representatives have been positioning the firm's products. C. the characteristics that helped his firm win a statewide award for excellence in manufacturing. D. what the target market would consider the most important features. E. the safety record of the firm and its products.

D

Marketers often create a special marketing mix for loyalty segments because these segments are A. too large to service with ordinary targeting. B. difficult to identify. C. costly to acquire. D. generally profitable. E. constantly changing.

D

Marketers often employ a combination of segmentation methods, using __________ to identify and target their customers, and __________ to design products and messages to appeal to them. A. loyalty segmentation; demographics B. undifferentiated targeting; differentiated targeting C. loyalty segmentation; geodemographics D. geodemographic segmentation; lifestyle or benefit segmentation E. lifestyle segmentation; geographic segmentation

D

Paula is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will NOT specifically help her in this analysis? A. The number of children needing day care in the immediate area. B. The fixed costs of operating the center. C. The percentage of parents in the area who can both afford to send their child or children to day care and who are willing to do so. D. The average number of school-age children in families sending a child to the day care center. E. The price she would charge minus the variable cost of providing service to each child.

D

Ronaldo wants to develop an Internet auction-based business and is working through the STP process. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Ronaldo now has to A. differentiate his product line. B. consider future customer loyalty. C. create a perceptual map. D. select a target market. E. divide geographic segments into lifestyle groups.

D

Ryan wants to sell personal website services to American soldiers in Afghanistan. Because of the difficulty of communicating with people in a war zone, Ryan may have trouble with this segment not being A. substantial. B. perceptive. C. identifiable. D. reachable. E. quantifiable.

D

Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the firm has ever used. She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to A. develop an advertising plan to promote the upcoming sales. B. find marketing interns or hire new staff to help with implementation. C. create pro forma financial statements to complete the package. D. identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis. E. use the Internet, catalogs, and vendor information to draw up a list of new products.

D

Talbots, an upscale women's clothing store, targets college-educated women between 35 and 55 years old with average household income of $75,000 or more. This is a form of __________ segmentation. A. benefit B. geodemographic C. psychographic D. demographic E. geographic

D

The Lite beer commercial with the slogan, "less filling, tastes great," was based on __________ segmentation. A. geographic B. geodemographic C. psychographic D. benefit E. loyalty

D

To develop psychographic segments, the marketer must understand consumers' A. age, income, and education. B. gender, race, and religion. C. disposable personal income, benefit perceptions, and alternative egos. D. self-values, self-concept, and lifestyles. E. buying patterns and behaviors.

D

When Ron complained to his bank about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests. The branch management included Ron in its __________ segmentation. A. benefit B. geodemographic C. psychographic D. loyalty E. geographic

D

When selecting a target market, firms will be most successful if they A. decide between demographic and geographic segmentation methods. B. seek out opportunities to customize products. C. develop a strong communication plan. D. match the firm's competencies with a market segment's attractiveness. E. reposition the brand.

D

Airlines were among the first retailers to embrace loyalty segmentation when they created A. business-class seating. B. 30-day advance pricing. C. fuel surcharges. D. in-flight movies. E. frequent flyer programs.

E

Caroline is assessing market growth, market competitiveness, and market access for each segment she has identified. Caroline is assessing the __________ of each potential market segment. A. substance B. responsiveness C. identification D. reach E. profitability

E

Demographic segmentation is segmentation based on all of the following EXCEPT A. age. B. gender. C. education. D. income. E. lifestyle.

E

For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's marketing mix. In other words. the market segment must be A. substantial. B. perceptive. C. identifiable. D. reachable. E. responsive.

E

For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting its marketing mix variables to give customers A. a more flexible supply chain strategy. B. a perceptual map of the imaging landscape. C. more product features than the competition offers. D. lower prices than the competition offers. E. a clear, distinctive, and desirable understanding of its products relative to competing products.

E

Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies. A. geographic B. benefit-based C. economic D. global E. concentrated

E

Golden Years Vitamin Corporation targets consumers living in Florida who are over age 65. Golden Years is using __________ segmentation. A. benefit B. self-actualization C. psychographic D. loyalty E. geodemographic

E

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate whether each segment is attractive relative to all of the following EXCEPT A. substantial. B. responsive. C. profitable. D. reachable. E. realistic.

E

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to A. categorize each market segment by consumer demographics. B. establish her overall objectives. C. decide on a targeting strategy. D. develop a positioning strategy. E. evaluate the attractiveness of each segment.

E

Regina wants to position her financial services company. Regina can position her services according to all of the following EXCEPT A. the value proposition. B. product attributes. C. symbols. D. competitive comparisons. E. profitability.

E