MKTG 403: Chapter 2

When Arrow Automobiles launched its first hybrid car, its advertisements highlighted the fact that the car was fuel efficient. Customers focused on this feature for making a purchase decision. It was ______.

a salient attribute

An advertisement for an energy drink shows a group of cyclists endorsing the product. This is an example of positioning by ______.

product user

Arrange the four basic steps of the target marketing process in the correct order, with the first step at the top

1) identifying markets with unfulfilled needs 2) segmenting the market 3) targeting specific market segments 4) positioning one's product through marketing strategies

Which of the following marketing strategies involves marketing in a number of market segments by developing separate marketing strategies for each?

Differentiated marketing

Arrange the four basic steps of the target marketing process in the correct order, with the first step at the top.

1) identifying markets with unfulfilled needs 2) segmenting the market 3) targeting specific market segments 4) positioning one's product through marketing strategies

The 80-20 rule, which is often used by industrial marketers, states that ______.

20 percent of buyers account for 80 percent of sales volume

______ is best described as what the consumer must give up in order to purchase a product or service.

Price variable

A supermarket in Miami segments its market based on the degree of product usage, such as heavy buyers, intermediaries (medium buyers), and light buyers. It develops different marketing strategies for each of these segments. This is an example of ______.

behavioristic segmentation

A company has used "Snowy the Polar Bear" as the face of Molvin Cookies for the past 30 years. This mascot has helped the company differentiate its product from competitors' products. This is an example of positioning by ______.

cultural symbols

Wiz Talks Inc., a telecommunication company, offers a range of tariff plans for various customers based on their age, occupation, location, Internet usage, and so forth. This is an example of ______ marketing.

differentiated

Breeze Inc., an apparel company, sells its products through a website owned and maintained by the company itself. When customers place an order, the order gets processed at the company's warehouse, eliminating the hassles of interacting with any independent wholesalers or distributors. This is an example of a(n) ______.

direct channel

True or false: Repositioning is easy to accomplish because customers' perceptions about and attitudes toward a product or brand are highly flexible.

false

The more marketers segment a market, the ______. (Check all that apply.)

fewer consumers there are in each segment better their understanding is of each segment

Which of the following make(s) up the phase of selecting a target market that follows segmentation analysis? (Check all that apply.)

figuring out how many segments to enter determining which segments offer the most potential

After deciding the number of market segments to enter, the second step in selecting a market involves ______.

figuring out which segment is the most attractive

Market segmentation based on units, such as nations, states, counties, or even neighborhoods, is known as ______.

geographic segmentation

When planning its marketing program, a firm should ______.

include promotion both to the trade and to its ultimate customers

AF Electronics Inc. distributes its products to wholesale trade agents. These agents resell the products to retailers, such as specialty stores and hypermarkets, where the final consumers make their purchase. This is an example of a(n) ______.

indirect channel

A company is most likely to use a pull strategy over push strategy when _____.

its products are very popular among consumers

After a firm selects the market segments to target and determines that it can be competitive, it continues to the ______ phase.

market positioning

The sets of interdependent organizations involved in the process of making a product or service available for use or consumption are known as Blank 1 of 2 Blank 2 of 2.

marketing channels

As a part of the distribution channel, ______ are individuals who make products available where the customer wants it, when the customer wants it, and with the proper support and service.

marketing intermediaries

Shop Unicorn positions itself as a chain of department stores that provides good value. This is an example of positioning by ______.

price or quality

The ______ of a product are best described as those characteristics that consumers care about and carefully consider when making a purchase decision.

salient attributes

In the marketing process, after a firm considers the opportunities available in assorted market segments and conducts a detailed competitive analysis, the immediate next step is to ______.

select a target market

Identifying target markets involves identifying consumers with ______.

similar lifestyles and needs

A(n) Blank 1 of 2 Blank 2 plan is usually derived from an organization's broad corporate strategy and used to facilitate the development of specific marketing programs and policies.

strategic marketing

A(n) ______ will help an organization successfully exchange its products or services in the marketplace by influencing the allocation of its resources.

strategic marketing plan

After a thorough opportunity and competitive analysis of the apparel industry, Sarah, an entrepreneur, realizes that her business would be highly profitable if she focuses on the clothing needs of pregnant women and new moms. Hence, she plans her product, pricing, promotion, and distribution to suit this market. From Sarah's perspective, this market is her ______.

target market

Companies tend to use a push strategy when ______.

they have favorable channel relationships

In a promotional push strategy, a company is most likely to use ______ to interest wholesalers and retailers and motivate them to purchase its products to resell to their customers.

trade advertising

True or false: Factors such as product quality, competition, and advertising all interact in determining what price a firm can and should charge.

true

True or false: The 80-20 rule enables marketers to identify and target specific customers, which allows for a much greater concentration of efforts and less wasted time and money.

true

Ian Bakers Inc. ignores the specific preferences of customers and offers only chocolate-flavored cookies to its entire target market. This is an example of ______ marketing.

undifferentiated

When companies distribute their products through indirect channels, they ______.

use a network of wholesalers and/or retailers

Relaying a particular image for a brand by emphasizing a particular function is referred to as positioning by ______.

use or application

The process of altering or changing a product's or brand's position is known as ______.

repositioning

Match the different market segmentation dimensions in the first column with their segmentation variables in the second column.

Geographic > Region, city size, and density Demographic > Gender, sex, age, and race Psychographic > Lifestyle and personality

From an integrated marketing communications (IMC) perspective, match the pricing strategy in the second column to suit the advertising expenditure in the first column.

High relative ad expenditures > Premium prices Low relative ad expenditures > Competitive prices

Which of the following statements about brand equity are true? (Check all that apply.)

It is often reinforced through advertising. It gives a firm a competitive advantage.

Match the two approaches to market positioning in the first column with their accurate descriptions in the second column.

Positioning strategy that focuses on the consumer > Links a product with the benefits final users will derive or creates a favorable brand image Positioning strategy that focuses on the competition > Positions a product by comparing it and the benefit it offers versus a rival product or brand

Which of the following is an effective practice in integrated marketing communications (IMC)?

Using various promotional-mix elements together.

When consumers in a market are divided on the basis of the specific features they seek in a product, it is known as ______.

benefit segmentation

A(n) Blank 1 of 2 Blank 2 is best described as something distinctive or unique a firm does or has that gives it an edge over its rivals in the industry.

competitive advantage

The art and science of fitting a product or service to one or more segments of a broad market in such a way as to set it meaningfully apart from competition is known as ______.

positioning

Communicating a specific image for a brand by associating it with a specific consumer group, such as a shoe brand associating itself with basketball players, is known as positioning by ______.

product user

A popular automobile company claims that it makes SUVs for people who are interested in traveling and are looking for an adventure. This is an example of ______.

psychographic segmentation

Positioning a product against other products within the same product category is known as positioning by ______.

competitor

Which of the following segmentation dimensions segregates a market based on age, sex, family size, education, income, and social class?

Demographic segmentation

Which of the following helps firms achieve a competitive advantage? (Check all that apply.)

Having the lowest production costs Offering quality products at a premium price to customers Providing excellent service to customers

Identify the goals of branding from a company's perspective. (Check all that apply.)

To develop and enhance attitudes toward its product To build and maintain brand awareness and interest To build and foster relationships with the consumer

The marketing process of an organization begins with the development of ______.

a marketing strategy

Arrange the different components of the marketing process of an organization in the correct order, with the first step at the top.

1) Marketing strategy and analysis 2) Target marketing process 3) Marketing planning program development 4) Promotion to target market

Watch Lander, a major wristwatch manufacturer, promotes its products to customers by describing the advantages of owning its watches over those of a rival brand. This market positioning strategy focuses on the ______.

competition

When rental car agency Avis positioned itself against industry leader Hertz and advertised "We're number two, so we try harder," Avis was positioning by ______.

competitor

Astra Automobiles Inc. manufactures luxury cars. It exclusively targets customers in the high-income segment and develops marketing strategies for this segment. This is an example of ______.

concentrated marketing

When a firm entirely focuses on one market segment and tries to capture a large share of this market, it is using a(n) ______ strategy.

concentrated marketing

Using a logo, figure, or mascot to identify a brand or differentiate it from other brands is known as positioning by ______.

cultural symbols

Carl's Jr. has television commercials that feature sexy women eating large, juicy hamburgers in order to attract a younger male audience and to set itself apart from its competitors. This strategy is known as ______.

positioning

When GenNext Mobiles Inc. launched its new series of smartphones, features such as durability and long battery backup were highlighted in the advertisements. This is an example of positioning by ______.

product attributes

Positioning a product or brand by pointing out the specific characteristics and advantages that make it different from the competition is known as positioning by ______.

product attributes and benefits

GameWiz, a video game console, positions itself in the market as a form of family entertainment that can be a more exciting alternative to visiting adventure and theme parks, bowling alleys, or karaoke nights at local restaurants. This is an example of positioning by ______.

product class

Positioning a product or brand against a different product category, such as BMW positioning itself as the "ultimate" driving machine, is best described as positioning by ______.

product class

Match the different promotional strategies in the first column with their accurate descriptions in the second column.

Promotional push strategy > Moving the product through the channels of distribution by aggressively selling and promoting the item to the resellers, or trade Promotional pull strategy > Spending money on advertising and sales promotion efforts directed toward the ultimate consumer

When a company sells through direct channels, it ______.

does not use any channel intermediaries

After segmentation analysis, the next immediate phase in the target marketing process involves ______.

deciding the number of market segments to pursue

LifeThings Inc., a magazine publisher, exclusively promotes its magazine "Pink Tales" to target women and its magazine "Man Kind" to target men. This segmentation is an example of ______.

demographic segmentation

Premium brands positioned at the high end of the market use the positioning approach in which ______.

cost is less important than the benefits derived from using the brand

Segregating a market into separate groups that have common needs and will respond similarly to a marketing action is known as Blank 1 of 2 Blank 2.

market segmentation

In a promotional push strategy, ______.

programs are designed to persuade retailers to stock, merchandise, and promote a manufacturer's products

What are market opportunities? (Check all that apply.)

Areas where the demand trends are favorable Areas where a company can compete effectively Areas where a company believes customer needs are not being satisfied

True or false: Opportunity analysis of a marketplace should lead to alternative market opportunities for existing product lines in current or new markets, new products for current markets, or new products for new markets.

True

The term ______ best refers to what a product or brand means to consumers and what they experience in buying and consuming it.

product symbolism

Marketers use ______ to divide the market on the basis of personality, lifecycles, and/or lifestyles.

psychographic segmentation

Noba Steel Products Inc. advertises its products in trade publications to attract the attention of channel intermediaries, such as wholesalers and retailers, and encourage them to purchase its products and resell to the final customers. This is an example of pursuing a ______.

push strategy through trade advertising

When employing a target marketing strategy, a marketer should first ______.

recognize the groups of people with similar needs

WildBerry Foods Inc. uses different pricing and packaging strategies to sell its products depending on consumer loyalty. It offers larger quantities at lower prices to customers who do not switch brands frequently. However, for customers who like trying different brands, the firm offers smaller packages at slightly higher prices. The firm has categorized its customers based on ______.

behavioristic segmentation

Customers buy different cell phones depending on specific features. A customer might prefer a particular brand of cell phone for its warranty, another might want a phone with superior camera quality, or some might place more emphasis on a phone's memory capacity. When marketers target customers on the basis of these specific preferences, it is referred to as ______.

benefit segmentation

An intangible asset of added value that stems from the favorable image, impressions of differentiation, and/or the strength of consumer attachment to a company name, brand name, or trademark is known as ______.

brand equity

The process of constructing and maintaining a favorable identity and image of a company and its products or services in the mind of the consumer is known as ______.

branding

Purchasing a luxury car more for its social and psychological meaning and image than its actual functionality is an example of ______.

product symbolism

The process marketers follow to develop different marketing strategies to satisfy different consumer needs is known as Blank 1 of 2 Blank 2 of 2.

target marketing

True or false: While the price of a product is discussed in terms of the dollar amount exchanged for it, its cost to the consumer includes time, mental activity, and behavioral effort.

true

The advertisements of Brownberry's cocoa powder highlight how the product can be used as a chocolate drink, in cakes, or as a body scrub. This is an example of positioning by ______.

use or application