Chapter 7 Warm-up and Quiz

Which of the following statements regarding segmentation is​ correct? A. Consumer and business marketers use many similar​ variables, but business marketers use additional variables to segment their markets. B. As gender roles have​ changed, gender is no longer a useful form of segmentation. C. The use of demographics to segment markets has declined in recent years. D. The business market is homogenous and is not segmented E. Marketers typically use one variable to segment their markets.

A. Consumer and business marketers use many similar​ variables, but business marketers use additional variables to segment their markets.

What is​ positioning?

Arranging for a market offering to occupy a​ clear, distinctive, and desirable place relative to competing products in the minds of target consumers

A colleague wants to evaluate the attractiveness of a particular market segment. Which of the following would be good advice for your​ colleague? A. A segment is attractive if there are substitute products available. B. Carefully consider the degree of competition and ease of entry into the segment. C. If there are powerful buyers in the segment it will drive prices up. D. If a segment is larger than others it should always be targeted. E. Fast growing segments are always attractive.

B. Carefully consider the degree of competition and ease of entry into the segment.

​__________ segmentation divides buyers into segments based on their​ knowledge, attitudes,​ uses, or responses to a product.

Behavioral

Which of the following statements about segmentation is​ true? A. Market segmentation is part of a​ company's value proposition. B. Buyers within a market segment have different​ needs, characteristics, and behaviors. C. Different segments might require different marketing strategies or mixes. D. Segmentation identifies individual buyers that can be targeted with a market offering. E. Most companies today mass market and do not segment their markets.

C. Different segments might require different marketing strategies or mixes.

Which of the following statements regarding positioning is​ correct? A. Establishing a position usually takes a very short amount of time. B. Abruptly changing a position is an effective strategy when consumer needs change. C. Positions must adapt over time to meet changing consumer needs. D. Once a positioning strategy is​ identified, it is typically very easy to implement. E. Once​ established, a strong position is never lost.

C. Positions must adapt over time to meet changing consumer needs

There is a growing segment of people who want food that tastes good and is also good for them. This​ healthy-living segment represents which segmentation​ base?

Lifestyle

What are the three broad targeting strategies used by​ marketers?

Mass​ marketing, differentiated​ marketing, and micromarketing

BMW says their cars are​ "The Ultimate Driving​ Machine". Ford trucks are​ "Built Ford​ Tough". Which type of differentiation do these examples​ represent?

Product differentiation

​__________ segmentation divides buyers into different segments based on lifestyle or personality characteristics.

Psychographic

What are perceptual positioning maps used​ for?

To show consumer perceptions of different brands on important product dimensions

Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep​ monitoring, text​ notification, and wireless sync to their smart phone. In serving these two very different​ groups, Fitbit is using​ __________ segmentation.

benefits sought

Amazon and GEICO set themselves apart with their​ smooth-functioning direct delivery strategy referred to as​ __________ differentiation.

channel

Instead of going after a small share of a large​ market, a firm goes after a large share of a smaller niche segment. This type of marketing strategy is known as​ __________.

concentrated marketing

When segmenting international​ markets, markets can be grouped according to​ language, religion,​ customs, and values. This type of segmentation is based on​ __________ factors.

cultural

Choosing a differentiated targeting strategy has many​ benefits, but a potential downside is that​ __________.

it can increase costs

Psychographic segmentation divides buyers into different segments based on​ __________.

lifestyle and personality

The process of evaluating each market​ segment's attractiveness and selecting one or more market segments to enter is called​ __________.

market targeting

The step in designing a customer value-driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market​ __________.

segmentation

Market​ __________ evaluates each market​ segment's attractiveness and selects one or more segments to serve.

targeting

The winning value proposition by discount stores such as Walmart and Best Buy can be categorized as​ __________.

the same for less

Using​ a(n) __________ marketing​ strategy, a firm might decide to ignore market segment differences.

undifferentiated

The full mix of benefits on which a brand is differentiated and positioned is called​ a(n) __________.

value proposition