MKTG EXAM 2- Ch. 6

A more-for-more market offering not only offers higher quality but also gives prestige to a buyer.

True

Business and consumer marketers use many of the same variables to segment their markets.

True

Target and Kohl's have opened smaller-format stores designed to fit the needs of densely packed urban neighborhoods. This is an example of geographic segmentation.

True

The low cost of setting up shop on the Internet makes it even more profitable to serve seemingly small niches.

True

While designing a customer-driven marketing strategy, marketers are likely to divide the market into smaller segments.

True

One reason demographic variables are the most popular bases for segmenting customer groups is because they ________.

are easier to measure than other variables

At the extreme, micromarketing becomes ________ insofar as products and marketing programs are tailored to the needs and preferences of customers.

individual marketing

A successful niche marketing strategy relies on a firm's ________.

knowledge of customer needs

Which of the following strategies is most likely to be followed by firms that position themselves as caterers of the best products at economical prices?

more-for-less

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 ________.

user status segmentation

Cian, an automobile manufacturer, offers a new car model with features comparable to that of another popular brand. However, the Cian model is priced lower than its competitor and includes a longer warranty. Cian is most likely following a more-for-the-same strategy.

False

Companies today are moving away from target marketing and toward mass marketing.

False

Cupcake Gourmet, a high-end bakery in Manhattan, segments its customers according to those who frequent their store regularly, those who visit infrequently, and those who have never visited. This is an example of usage-rate segmentation.

False

Light users are often a small percentage of a company's market but account for a high percentage of total consumption.

False

Which of the following types of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance?

channel differentiation

A brand difference is said to be preemptive if ________.

competitors cannot easily copy the difference

Stores offering low-quality alternatives to luxury products at low prices most likely follow a ________ positioning strategy.

less-for-much-less

________ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior.

market segmentation

When the size, purchasing power, and profiles of a market segment can be determined, the market segment is said to be ________.

measurable

The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________.

micromarketing

Household Storez, a local retail store, claims to offer better products at lower prices than other retail stores. In this case, the firm's positioning reflects a ________ value proposition.

more-for-less

Which of the following includes the target segment of a product, the category to which the product belongs, and the product's point of difference from other members in the category?

positioning statement

Lilly's, a furniture retailer, sells low-end furniture and accent pieces that are targeted toward lower-income consumer groups. Lilly's most likely segments the consumer market based on ________ variables.

demographic

Demographic variables are generally more difficult to measure than most other types of variables.

False

Marketers typically limit their market segmentation analysis to a single variable in order to simplify the process.

False

The full positioning of a brand is called the unique selling proposition.

False

Market segments that can be effectively reached and served are said to be ________.

accessible

When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________.

actionable

Delta, an American video game manufacturer, targets teens between the ages of 13 and 18, providing free game trials and applications. The firm's marketing approach exemplifies ________ segmentation.

age and life-cycle

Pediacertain Pet Supplies, a pet-food company, divides the pet market according to the pet owners' gender, occupation, income, and family life cycle. In this case, which of the following variables has the company used for market segmentation?

demographic

Gulf Coast, a wholesale shrimp distributor, groups its customers by regions in the United States, such as Midwest, Northeast, and Southwest. For each region, Gulf Coast tailors a different set of advertisements and promotions. The supplier is segmenting its market according to ________.

geographic location

The distinctive yellow and blue "hands held high" logo of a local daycare distinguishes it from other establishments. The logo is prominently displayed on its building, t-shirts worn by the children, and at fundraising events. The daycare has differentiated itself through ________.

image

Which of the following is true about local marketing?

it increases manufacturing costs

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy?

market segmentation, market 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 engaging in ________.

mass customization

Marketing the same product to a huge customer base without any customization is referred to as ________.

mass marketing

Gold Class Electricals, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on ________.

multiple segmentation bases

Bakeries and coffee bistros that offer pumpkin-flavored items only during the autumn season target their consumers primarily through ________ segmentation.

occasion

Argonaut Food Stores, a retail giant, hires better-skilled employees than its competitors by employing strategic recruitment practices. It also conducts highly specialized training programs for its employees. In this case, Argonaut has focused on gaining a strong competitive advantage through ________ differentiation.

people

Zeal is a popular automobile brand, and its positioning statement is: "For upscale American families who require large vehicles, Zeal is the automobile of choice." Which of the following mandatory elements is missing from the positioning statement?

point of difference

Bose promises "better sound through research." This is an example of ________.

product differentiation

Bass Pro Shops recognizes that outdoors enthusiasts are a diverse group. Likely segments include hunters, campers, and boaters. What is this segmentation method called?

psychographic

Which positioning strategy offers value for consumers by providing the same brands as competitors at a lower price?

same-for-less

Companies are likely to gain ________ through speedy, convenient, or careful delivery of products.

services differentiation

Multivariable segmentation systems merge and analyze geographic, demographic, lifestyle, and behavioral data to help companies segment their markets.

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.

true

Although not recommended, some marketers decide to ignore market segmentation and target the whole market with one offer. This is known as ________ marketing.

undifferentiated

Which of the following is an approach where firms target a whole market based on common consumer needs?

undifferentiated marketing

Shampoo marketers segment buyers as light, medium, or heavy product users. This is an example of ________ segmentation.

usage rate

A market segment is less attractive when ________.

It contains powerful suppliers who can control prices

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

Local

________ segmentation factors divide buyers into different groups based on social class, lifestyle, or personality characteristics.

Psychographic

Which of the following is true of perceptual positioning maps?

They are used to analyze consumer perceptions of a brand relative to competing products.

Which of the following is true of product positioning?

To simplify the buying process, consumers are likely to position products in their minds.

A company or brand image should convey a product's distinctive benefits and positioning.

True

If men and women respond dissimilarly to the marketing efforts for a root beer-flavored malt beverage, they are considered ________ market segments.

differentiable

Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called ________ marketing.

differentiated

Danko International is a multinational company that targets the BRIC countries (Brazil, Russia, India, and China) because they're fast-growing developing economies and use ________ to segment its world markets.

economic factors

A market segment with powerful suppliers controlling the prices is more attractive than a segment with less powerful suppliers.

false

Company and brand positioning should be summed up in a ________.

positioning statement

Demographic factors are the most popular bases for segmenting customer groups.

True

Even if a segment has the right size and growth and is structurally attractive, a company must consider its own objectives and resources before targeting that segment.

True

For market segments to be beneficial for companies, they must be measurable.

True

Marketers must be careful to guard against stereotypes when using age and life-cycle segmentation.

True

New communications technologies like satellite TV and social media are likely to eliminate the need for markets to be geographically segmented as clusters of countries.

True

Not all companies that use income segmentation target the affluent.

True

Smaller companies may lack the skills and resources needed to serve larger segments.

True

Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called ________ segmentation.

behavioral

The marketing manager at Frizzles' Eateries targets customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of low-fat, low-calorie meals that appeal to dieters. Frizzles' approach is best referred to as ________

benefit

Unlike other car rental agencies that are based in airports to serve travelers, Rental Wheelz has a network of neighborhood offices. The firm strives to serve people who need car rentals for reasons other than vacation, such as when their own cars are being repaired. Rental Wheelz caters to a small share of the large car rental market. From this description, it can be concluded that Rental Wheelz most likely practices ________.

concentrated marketing

The full positioning of a brand is referred to as the ________.

concentrated strategy

Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged men, and the other line targets younger, up-and-coming professionals. Harry's most likely segments the consumer market based on ________ variables.

demographic

A segment is more attractive if it is easy for new competitors to enter the market.

false

Using a differentiated marketing strategy, a company is likely to design a product and a marketing program that will appeal to the largest number of buyers.

false

P&G was among the first to use ________ segmentation when it introduced Secret, a deodorant brand specially formulated for women's chemistry.

gender

Compared with undifferentiated marketing, differentiated marketing is more likely to lead to ________.

higher costs doing business

When firms use symbols, colors, or characters to convey their personalities, they are using ________ differentiation.

image

Which type of market segmentation is generally used by marketers who sell luxury products targeted to the affluent segments of a population?

income

The marketing manager of Refresh Inc., a leading producer of soft drinks, is considering a differentiated marketing strategy. An important consideration is weighing increased sales against ________ before selecting this strategy.

increased costs

Producers of popular beverages often partner with global music channels to target consumers through a variety of promotional events and advertisements. This approach to marketing is referred to as ________ segmentation.

intermarket

Rad, a manufacturer of luxury watches, charges a higher price for its products than its competitors. Despite the high prices, the brand is popular among customers for its quality and service in comparison to cheaper alternatives available in the market. In this case, Rad offers a(n) ________ value proposition.

more-for-more

Using a ________ positioning strategy, companies can attack the more-for-more strategy of another firm by offering a brand of comparable quality at a lower price.

more-for-the-same

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

positioning

Eastline, a manufacturer of outdoor patio furniture, positions its products as superior in weatherproofing and durability. This is an example of ________ differentiation.

product

When a market segment is large or profitable enough to serve, it is termed ________.

substantial