MKTG Test 3

T/F A product's position is the way the product is defined by the retailers who sell it to target markets. It is how it is defined on important attributes- the place the product occupies in the retailers' minds relative to competing products

FALSE

T/F Because Cruise Ships International currently had limited financial and personnel resources, it should avoid concentrated or niche marketing until resources are again substantial.

FALSE

T/F Because there is such variation among the economies of countries around the world, it is not practical to segment international markets on the basis of economic factors.

FALSE

T/F Business and consumer marketers use the same set of variables to segment their markets.

FALSE

T/F Shopping For The Rich and Famous is buying service that helps wealthy clients find the best buys in exclusive clothing, high-end cars, travel, and financial services. This firm would use income segmentation.

TRUE

T/F Demographic segmentation uses different marketing approaches for different time periods of people's lives and different family situations

FALSE

T/F For simplicity's sake, most marketers generally limit their segmentation analysis to one or a few variables.

FALSE

T/F LaGrange Florists segments markets into groups of nonusers, ex users, potential users, first time users, and regular users of its flowers and services. This firm uses usage rate as the segmentation approach.

FALSE

T/F Mass marketing is becoming the marketing principle for the 21st century.

FALSE

T/F Research about and planning for loyalty status as a segmentation approach is generally not useful or practical for most firms.

FALSE

T/F The majority of US based companies have developed the resources and the will to operate in multiple foreign countries

FALSE

T/F User status segmentation involves finding the major advantages or features people look for in the product class, the kinds of people who look for each advantage or feature, and the major brands that deliver each advantage or feature.

FALSE

T/F When Kia offers a new model of car with the same features as a comparable Toyota or Ford and provides a longer warranty, Kia is following a more for less strategy.

FALSE

T/F Your company wants to move away from mass marketing and engage in customer-driven marketing. The four steps to take, in order, are market segmentation, marketing positioning, differentiation, and targeting.

FALSE

T/F There are many expectations to the geographic segmentation assumption that consumers in nations close to one another will have many common behaviors and traits.

TRUE

T/F Through the use of mass marketing has been widespread in the past 100 years, for centuries consumers were served as individuals as businesses practiced individual marketing.

TRUE

T/F When a company chooses a target marketing strategy, its choices are influenced by factors related to company resources, the degree of product variability, and the product's life cycle stage

TRUE

T/F At a recent marketing seminar, the featured speaker stated that a target market consists of a set of buyers who share common needs or characteristics that the company decided to serve. This is a correct definition.

TRUE

T/F Bombay Gifts divides its markets into units of nations, regions, and cities. Bombay uses geographic segmentation.

TRUE

T/F Clusters of marketable groups of customers with similar likes, dislikes, lifestyles, and purchase behaviors can be identified by multivariable segmentation systems that merge and analyze geographic, demographic, lifestyle, and behavioral data.

TRUE

T/F Consumers position products in their minds in order to simplify the buying process.

TRUE

T/F Developing a stronger position within several segments creates more total sales than undifferentiated marketing across all segments

TRUE

T/F For market segments to be useful they must be measureable, accessible, substantial, differentiable, and actionable.

TRUE

T/F Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines

TRUE

T/F In evaluating different market segments, a firm must look at 3 factors: segment size and growth, segment structural attractiveness, and company objectives and resources

TRUE

T/F Most marketing targeted at children, minorities, or other special segments provides benefits to targeted consumers

TRUE

T/F Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies

TRUE

T/F Your assignment at work is to divide buyers into different groups based on social class, lifestyle, and personality characteristics. After a planning session with the marketing and sales staff, you issue a memo to upper management recommending psychographic segmentation. You are right on target.

TRUE

T/F Today, most companies have moved away from mass marketing and are being choosier about the customers with whom they wish to build relationships.

TRUE

When Pacific Fisheries groups its customers as countries by regions such as Asia, Australia, or New Zealand it is using which segmenting base? A. Economic factors B. Political and legal factors C. Geographic location D. Benefits sought E. Demographics

C. Geographic location

The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ______segmentation. A. Behavioral B. Psychographic C. age and life cycle D. Demographic E. Geographic

A. Behavioral

Most attempts to target children and minority groups provide _____ to target customers. A. Benefits B. Education C. Disadvantages D. Harm E. Expenses

A. Benefits

By studying its less loyal buyers, a company can detect which brands are most ______ with its own. A. Competitive B. Used C. Often overlooked D. Similar E. Complementary

A. Competitive

A company or store gains a(n) _______ by differentiating its products and delivering more value. A. Competitive advantage B. Positioning advantage C. Cost Advantage D. Efficiency advantage E. Synergy

A. Competitive advantage

Through talking to numerous competitors at a regional trade shoe, you learn that most of them use the most popular base for segmenting markets. What is it? A. Demographic B. Lifestyle C. Psychographic D. Behavioral E. Geographic

A. Demographic

Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be _______ segmentation. A. Geographic B. Benefit C. End-use D. Customer E. Image

A. Geographic

When firms use symbols, colors, or characters to convey their personalities, they are using ______ differentiation. A. Image B. People C. Company D. Reputation E. Subliminal

A. Image

Lexus targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ______. A. Intermarket segmentation B. Loyalty segmentation C. Life-cycle segmentation D. Targeting segmentation E. Psychographic segmentation

A. Intermarket segmentation

You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand is differentiated and positioned. This full positioning of the brand is called ______. A. Its value proposition B. Target marketing C. Capturing the consumers' attention D. Value profiling E. Differentiated marketing

A. Its value proposition

What competitive positioning strategy can attack a more for more strategy by introducing a brand offering with comparable quality at a lower price? A. more for the same B. more for less C. same for les D. less for much less E. All or nothing

A. More for the same

What is the following is an example of ? "To busy, mobile professionals who need to always be in the loop, BlackBerry is wireless connectivity solution that gives you an easier. more reliable way to stay connected to data, people, and resources while on the go." A. Positioning statement B. Service differentiation C. Concentrated segmentation D. Competitive advantage E. Responsible target marketing

A. Positioning statement

Typically, developing a strong position within several market segments creates more total sales than _______ marketing across all segments. A. Undifferentiated B. Differentiated C. Niche D. Target E. Individual

A. Undifferentiated

Mass marketers, such as Target and Venture Stores, often ignore market segment differences and target the whole market with one offer. What is their approach to segmenting?

A. Undifferentiated marketing B. Differentiated marketing C. Target marketing D. Concentrated marketing E. Micromarketing

Markets can be segmented into groups of nonusers, ex-users, potential users, first time users, and regular users of a product. This method of segmentation is called _______. A. User status B. Usage rate C. Benefit D. Behavior E. Loyalty status

A. User status

Which of the segmenting strategies carries higher than average risks in consumer markets? A. Concentrated B. Mass C. Differentiated D. Undifferentiated E. Multiple segment

A.. Concentrated

When Burger King targets children, teens, adults, and seniors with different ads and media, it is practicing _______ segmentation. A. Geographic B. Age and life cycle C. Psychographic D. Behavioral E. Usage rate

B. Age and life cycle

Which type of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance? A. Services differentiation B. Channel differentiation C. People Differentiation D. Product Differentiation E. Price differentiation

B. Channel differentiation

It is considered socially irresponsible when the marketing of adult products spills over into the ______ segment. A. Elderly B. Child C. Animal D. Minority E. Senior

B. Child

T/F A market rarely exists for products that offer less and therefore cost less

FALSE

When New Port Shipping uses segmented offers for each one. This approach is called ______ marketing. A. Undifferentiated B. Differentiated C. Individual D. Mass E. Niche

B. Differentiated

When Positive Image, Inc. caters to clothing, cosmetics, and toiletries markets, it is most likely primarily using which type of segmentation? A. Age and life cycle B. Gender C. Behavior D. Psychographic E. Geographic

B. Gender

In target marketing, the issue is not really who is targeted, but rather _______ and for ______. A. Why; what B. How; what C. why; how long D. Where; how long E. How; where

B. How; what

Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation? A. Gender B. Income C. Occasion D. Usage rate E. Benefits sought

B. Income

Which of the following is the narrowest strategy? A. Segmented strategy B. Local marketing C. Differentiated marketing D. Mass marketing E. Undifferentiated marketing

B. Local marketing

"less for much less" positioning involves meeting consumers' ________. A. quality performance requirements at a lower price B. Lower quality requirements in exchange for a lower price C. Lower quality requirements at the lowest possible price D. High quality requirements at a discounted rate E. high quality requirements at the lowest possible price

B. Lower quality requirements in exchange for a lower price

Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by _____. A. User status B. Loyalty status C. Store type D. Brand preference E. Usage rate

B. Loyalty status

As You Like It, Inc. customizes its offers to each individual consumer. This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as _______ marketing. A. Niche B. Micro C. Variable D. Mass E. Undifferentiated

B. Micro

Which difficult to sustain positioning strategy attempts to deliver the "best of both"? A. more for the same B. more for less C. same for less D. More for more E. Less for much less

B. More for less

In general, a company should enter only segments in which it can ______ and ______. A. Offer lower prices; ship faster B. Offer superior value; gain advantages over competitors C. Offer superior value; ship faster D. Gain advantages over competitors; offer new products E. Identify behaviors; understand spending power

B. Offer superior value; gain advantages over competitors

The move toward individual marketing mirrors the trend in consumer _______. A. self imaging B. Self marketing C. Customizing D. Spending E. Self conceptualization

B. Self-Marketing

Marketers must be careful to guard against _______ when using age and life cycle segmentation. A. Underestimating B. Stereotyping C. Traditional marketing D. Cultural bias E. Gender bias

B. Stereotyping

Which of the choices listed is NOT a positioning task? A. Identifying a set of possible competitive advantages upon which to build a position B. surveying frequent uses of the product C. selecting an overall positioning strategy D. Effectively communicating and delivering the chosen position to the market E. Selecting the right competitive advantages

B. Surveying frequent uses of the product

The 55 year old baby boomers share common needs in music and performers. When a music company decides to serve this group, the group is called a(n) _______. A. Market segment B. Target segment C. Well defined market D. Differentiated market E. Undifferentiated market

B. Target market

When competitors use differentiated or concentrated marketing, _______ marketing can be disastrous. A. Differentiated B. Undifferentiated C. Concentrated D. Customized E. Localized

B. Undifferentiated

Niche marketing offers smaller companies the opportunity to compete by focusing their limited resources on serving niches that may be ______ or _______ larger companies. A. Unimportant to; desired by B. Unimportant to; overlooked by C. too large; undesirable to D. Unknown by; desired by E. Disappointed by; geographically far from

B. Unimportant to; overlooked by

Even though several options are available at any one time, there ______ to segment a market. A. is one single best way B. is no single way C. is a most effective way D. Are limited ways E. are four ways

B. is no single way

Which of the following is NOT one of the reasons a segment would be less attractive to a company? A. Strong competitors B. Substitute products C. Concentrated market D. Power of buyers E. Power of suppliers

C. Concentrated market

Not every brand difference is worth establishing and promoting. A difference is worth promoting to the extent that it satisfies all of the criteria EXCEPT which one? A. Important B. Distinctive C. Divisible D. Affordable E. Preemptive

C. Divisible

As in consumer segmentation, many marketers believe that ______ and ______ segmentation provide the best basis for segmenting business markets. A. Geographic; demographic B. User status; user loyalty C. Benefits; buying behavior D. Age and life cycle; psychographic E. Income; usage rate

C. Benefits; buying behavior

Procter and Gamble sells six brands of laundry detergent in the United States, each designed for one of six laundry segments Procter and Gamble has identified. Together, these six brands take four times the market share of Procter and Gamble's nearest competitor. Which of the following is a disadvantage of Proctor and Gamble differentiated marketing strategy? A. Lost sales that would have been made with an undifferentiated marketing strategy across all segments B. Lost customer loyalty due to lack of brand loyalty C. Increased costs for separate marketing plans for each brand D. Other suppliers controlling pricing E. Lack of resources to succeed in an attractive segment

C. Increased costs for separate marketing plans for each brand

ByWay Ventures chose a differentiated marketing strategy. The company had to weigh _____ against ______ when selecting this strategy. A. Extra research; costs B. Sales analysis; sales C. Increased sales; increased costs D. Geographic segmentation; demographic segmentation E. Attitudes; perceptions

C. Increased sales; increased costs

Cigarette, beer, and fast food marketers have generated much controversy in recent years by their attempts to target ______. A. The elderly B. White-collar workers C. Inner-city minorities D. Multiple international markets E. Suburban adults

C. Inner-city minorities

Using concentraced marketing, the marketer goes after a ______ share of ______. A. Small; a small market B. small; a large market C. Large; one or a few niches D. Large; the mass market E. Moderate; the local market

C. Large; one or a few niches

When WAlmart customizes its merchandise store by store to meet shopper needs, it is practicing _______. A. Niche marketing B. Psychographic marketing C. Local marketing D. Social Segmentation E. Individual Marketing

C. Local Marketing

When a company identifies the parts of the market it can serve best and most profitably, it is practicing _______. A. Concentrated marketing B. Mass marketing C. Market targeting D. Segmenting E. Differentiation

C. Market Targeting

What are the four steps, in order, to designing a customer-driven marketing strategy? A. Market segmentation, differentiation, positioning, and targeting B. Positioning, marketing segmentation, mass marketing and targeting C. Market segmentation, targeting, differentiation and positioning D. Market alignment, market segmentation, differentiation, and market positioning E. market recognition, market preference, market targeting, and market insistence

C. Market segmentation, targeting, differentiation, and positioning

When a company interacts one on one with large numbers of customers to create customer unique value by designing products and services tailor made to individual needs, it is following ______. A. Concentrated marketing B. Mass marketing C. Mass customization D. Undifferentiated marketing E. Localization

C. Mass customization

Many firms make an effort to identify smaller, better-defined target groups by using ______. A. User rates B. Loyalty segmentation C. Multiple segmentation bases D. Positioning E. Mass marketing

C. Multiple segmentation bases

Which type of segmentation centers on the use of the word *when*, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item? A. Demographic B. Psychographic C. Occasion D. Impulse E. Emergency

C. Occasion

Today, the low costs of setting up shop ______ makes it even more profitable to serve very small niches. A. In malls in major cities B. In mail-order catalogs C. on the internet D. Near major competitors E. Far from competitors

C. On the internet

A company or market offer can be differentiated along the lines of product, image, services, channels, or _______. A. Prices B. Nonprice factors C. People D. Customer service E. Location

C. People

Which positioning strategy offers consumers a "good deal" by offering equivalent-quality products of services at a lower price? A. more for the same B. more for less C. same for less D. less for much less E. All of nothing

C. Same for less

When the size, purchasing power, and profiles of the market segment can be determined, it possesses the requirement of being _________. A. Measurable B. Accessible C. Substantial D. Actionable E. Differentiable

C. Substantial

The answer to the customer's question, "Why should I buy your brand?" is found in the ______. A. Quality image B. Customer services C. Value proposition D. Differentiated E. Pricing and promotion structure

C. Value proposition

Under what circumstances would local marketing likely be the most effective? A. When pronounced differences in psychographics are present B. When pronounced differences in lifestyles are present C. When pronounced regional and local differences in demographics and lifestyles are present D. When regional demographics demographics and lifestyles are similar E. When pronounced similarities in psychographics are present

C. When pronounced regional and local differences in demographics and lifestyles are present

_______ marketing tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores. A. Undifferentiated B. Differentiated C. Niche D. Local E. Variable

D. Local

When choosing a target marketing strategy, many factors need to be considered. Which of the following does your text NOT mention as important? A. Company resources B. Degree of product variability C. Product life cycle stage D. Product cost E. Competitors' marketing strategies

D. Product cost

When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ______. A. Accessible B. Measurable C. Reachable D. Actionable E. Differentiable

D. Actionable

Demographic variables are so frequently used in market segmentation because they ______. A. Create smaller segments B. Create more easily reached segments C. Do not involve stereotypes D. Are easy to measure E. Involve fewer attributes to consider

D. Are easy to measure

To evaluate the different market segments your company is serving, you would look at all of the following factors EXCEPT which one? A. Segment size B. Segment growth C. Segment structural attractiveness D. Company culture E. Company Resources

D. Company Culture

Barney Hopkins has complied a list of things that make segments more attractive. Which of the following items should NOT be on the list? A. Relative power of buyers B. Lack of powerful suppliers to control prices C. Few substitutes products D. Competition with superior resources E. Financial resources

D. Competition with superior resources

A product's position is based on important attributes as perceived by ______. A. suppliers B. competitors C. Market conditions D. Consumers E. Managers

D. Consumers

Which group determines a product's position relative to competing products? A. manufacturers B. wholesalers C. retailers D. Consumers E. suppliers

D. Consumers

Pendergraff Pet Supplies divides the pet market according to the owners' race, occupation, income, and family life cycle. What type of segmentation does Pendergraff use? A. Geographic B. Behavioral C. Lifestyle D. Demographic E. Psychographic

D. Demographic

The market segments your company is targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. Therefore, these segments are _______. A. Accessible B. Measurable C. Reachable D. Differentiable E. Observable

D. Differentiable

International Drilling Company segments its foreign markets by the income levels of a country's population. This firm segments on what basis? A. Political factors B. legal factors C. Geographic factors D. Economic Factors E. Cultural Factors

D. Economic Factors

It is most accurate to say that successful niche marketing relies on a firm's ______ and its ______. A. Marketing strategy; services B. Individual realtionships with customers; positioning C. Superior products; value network partners D. Greater knowledge of customers' needs; special reputation E. Competitive advantage in comparasion to mass-market companies; affordable pricing

D. Greater knowledge of customers needs; special reputation

When marketers at Procter & Gamble selected the Millennials, a demographic that includes college students, as an untapped group of potential customers for their Febreze line of products, they were executing which step in the process of designing a customer driven marketing stategy? A. Market segmenting B. mass marketing C. differentiation D. targeting E. positioning

D. Targeting

Once it has chosen a position, a company must take strong steps to deliver and communicate that position to target consumers. Which of the following is NOT necessarily needed for a company to support its positioning strategy? A. The company's marketing mix efforts must support that positioning strategy B. Positioning the company calls for concrete action, not just talk. C. Designing the marketing mix involves working out the strategic details of the positioning strategy D. The company's service personnel must be highly trained and provide superior service. E. The company must deliver the position first.

D. The company's service personnel must be highly trained and provide superior service.

Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to it. What does USP stand for? A. Unique Selling product B. Unique services product C. Unique sales pitch D. Unique selling proposition E. Universally strategic practice

D. Unique Selling Proposition

Target marketing sometimes generates controversy and concern. Issues usually involve the targeting of ______ consumers with ______ products. A. Elderly; expensive B. Young; appealing C. Vulnerable; marketing D. Vulnerable or disadvantaged; controversial or potentially harmful E. Mass market; deceptive

D. Vulnerable or disadvantaged; controversial or potentially harmful

Few people can afford the best in everything they buy. At times everyone needs a product with less quality or performance with a correspondingly lower price. In this case, a consumer would purchase a product positioned with a ______ strategy. A. More for the same B. More for less C. Same for less D. Less for much less E. All or nothing

D. less for much less

Which type of statement first states the products membership in a category and then shows its point of difference from other members of the category? A. Positioning statement B. Service differentiation C. concentrated segmentation D. Competitive advantage E. Responsible target marketing

D. positioning statement

Consumer and business marketers use many of the same variables to segment markets. Business marketers use all the following EXCEPT which one? A. Operating characteristics B. Purchasing Approaches C. Situational factors D. Personal characteristics E. Brand personalities

E. Brand Personalities

Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more ______ with products and services that match their unique needs. A. efficiently B. effectively C. intensely D. Indirectly E. Both A and B

E. Both A and B

Which of the following is NOT a drawback of local marketing? A. It can drive up manufacturing costs. B. It can drive up marketing costs by reducing economies of scale. C. It can create logistics problems D. A brand's overall image might be diluted through too much variation. E. Supporting technologies are not cost-effective

E. Supporting technologies are not cost-effective