Marketing Strategy CH 6-8 Quiz

Loyalty Status

Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ______.

True

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

False

Mass marketing is becoming a marketing principle for the 21st century.

Fad

Flurrbies, a brand of winter accessories that fell in and out of favorability with customers quickly, is an example of a ______.

Personal Selling

For industrial goods, ______ costs are apt to be much higher than advertising costs.

Trade Area

Geographic segmentation is particularly important in retailing and many services businesses, where customers are unwilling to travel very far to obtain the goods or services they require. Thus, one way to segment retail markets is by distance or driving time from a particular location. The are included within such a geographically defined region is called a(n) _____.

It does not tell the marketer which positions are most appealing to customers.

Identify the limitation of a product positioning analysis.

Microsegmentation

In ______, business buyers are grouped by the characteristics of the individuals who influence the purchasing decision.

True

In most cases, consumers or organizational customers choose what they buy for one of two reasons: what they choose is better, in some sense, or cheaper.

False

In the introduction stage of PLC, profits are always positive.

True

In the introduction stage of PLC, there are relatively fewer competitors in the market compared to in the growth stage of PLC.

Introduction

In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness?

False

Intensely perceived brand position for a certain attribute makes it easy for marketers to reposition the brand.

User Status

Markets can be segmented into groups on nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called _______.

True

Nabisco offers many different brands within the cracker category. Nabisco's strategy is to occupy more positions so that the customer has a choice between two Nabisco brands, not one Nabisco brand and one Keebler product.

True innovations that are new to the firm and create an entirely new market

New-to-the-world products can be defined as:

True

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.

Consumers consider them to be relatively alike.

Two stores occupy positions comparable to one another on the positioning grid. This indicates that:

Large; One or a few niches

Using concentrated marketing, the marketer goes after a ______ share of ______.

Positioning Statement

What is the following an example? "To busy, mobile professionals who need to always be in the loop, BlackBerry is a wireless connectivity solution that gives you an easier, more reliable way to stay connected to data, people, and resources while on the go."

Modifying the product

When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was ______.

Geographics

When Pacific Fisheries groups its customers by regions such as Asia, Australia, or New Zealand, it is using which segmenting base?

Product Modification

_______(e)s can be defined as items providing improved performance or greater perceived value brought out to replace existing products.

Product Line Extension

_______(e)s can be defined as new items that supplement a firm's established product line.

True

A company or store gains a competitive advantage by differentiating its products and delivering more value.

Straight Rebuy

A(n) _____ refers to a recurring buying situation handled on a routine basis.

Positioning Grid

A(n) _______ provides a visual representation of the positions of various products or brands in the competitive set in terms of (typically) two determinant attributes.

Psychographic

AdventureBikes targets wilderness enthusiasts and introduced special robust bikes for them. PowerDrink's target market comprises tennis players who need to replenish water and sales lost through perspiration. These are examples of ______ segmentation that is based on target consumers' activities.

True

Although products that remain in the maturity stage of the PLC seem unchanged, the most successful ones actually evolve to meet changing consumer needs.

Product Modification

Automobile companies come up with new and upgraded versions of their existing automobile models continuously. This is an example of _______.

It should invest more to grow at a maximum rate and concentrate on maintaining strengths.

Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is high and the competitive position is strong?

False

Behavioral segmentation is useful in assessing the size and market potential of a market segment defined by a particular trade area.

Unique selling proposition.

Both positioning statements and value propositions should reflect a(n):

The marketer's decision making intended to create that position

Brand positioning refers to both the place a brand occupies in customers' minds relative to the competition, and:

True

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.

False

Differentiated marketing captures sufficient volume to gain economies of scale and a cost advantage.

Abstract

Examples of _______ attributes include the sexiness of a perfume, heritage of a fine cognac, and prestige of a car.

Multiple Segmentation Bases

Many firms make an effort to identify smaller, better-defined target groups by using _______.

False

Market-skimming is a more popular strategy for pricing new products, and market-penetration is a more popular strategy for pricing products that are more advanced in the product life cycle.

Complex physically based attributes

Marketing decision makers, while seeking to win a particular position in a customer's mind, endow their product with various kinds of attributes. The speed of a computer system, the roominess of a car, and a product or service being user-friendly are examples of which type of categorization based on such attributes?

Increased costs for separate marketing plans for each brand

P&G sells six brands of laundry detergent in the United States, each designed for one of six laundry segments P&G has identified. Together, these six brands take 62% of market share. Which of the following is a disadvantage of P&G's differentiated marketing strategy?

True

Profits rise during the growth stage of the PLC because promotion costs are spread over a large volume and unit manufacturing costs fall.

Usage Rate

Shampoo Marketers rate buyers as light, medium or heavy product users. This is ______ segmentation.

Positioning Statement

Superior Auto Sales, a chain of high-end used car dealerships, wants to sum up its company positioning and brand positioning in a formal way. Superior's management would use a what?

True

The answer to the customer's question "Why should I buy your brand?" is found in the value proposition?

False

The strategic marketing objective of the introduction stage of PLC is to harvest existing products.

Value Curve

Where more than two attributes are to be considered in a positioning, a(n) ______, which comprises more than just two dimensions, can be generated.

R&D implications need to be interpreted

Which of the following is a characteristic of perceptual positioning analysis of a brand?

Large number of dimensions

Which of the following is a characteristic of physical positioning?

Perceptual positioning has a consumer orientation while physical positioning has a technical orientation.

Which of the following is a difference between physical and perceptual positioning?

Maximize number of triers and adopters in total market

Which of the following is a primary objective of mass-marketing penetration strategies?

Different people want different mixes of benefits from the products they buy.

Which of the following is the most logical reason for P&G offering products that compete with one another on the same supermarket shelves?

Demographic

Which of the following is the most popular method for segmenting markets?

It involves designing a single product-and-marketing program that will appeal to the largest number of consumers.

Which of the following is true of a mass marketing strategy?

Skimming is one of the pricing strategies applied at this stage.

Which of the following is true of the introductory stage in a product life cycle?

Overcapacity

Which of the following would lead to greater competition in the maturity stage of the PLC?

Occasion

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?

Macrosegmentation

_____ divides the market according to the characteristics of the buying organization using attributes such as age of firm, firm size, and industry affiliation.

Skimming

_____ is designed to obtain as much margin per unit as possible and also enables the company to recover its new product investments more quickly.

Shakeout

______ is characterized by a decreasing growth rate that results in strong price competition, forcing many firms to exit the industry or sell out.

Purchasing Structure

______ is the degree to which buying activity is centralized and influences a buyer to consider all transactions with a given supplier on a global basis, to emphasize cost savings, and to minimize risk.

Market Segmentation

______ is the process by which a market is divided into distinct subsets of customers with similar needs and characteristics that lead them to respond in similar ways to a particular product offering and marketing program.

Niche Penetration

______ strategy helps the smaller pioneer gain the biggest bang for its limited bucks and avoid direct confrontations with bigger competitors.

Local Marketing

______ tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores.

Physical

_______ positioning is on the basis of how various brands compare on some set of objective physical characteristics.