BA 370 - Chapter 9

Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the firm has ever used. She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to a. create pro forma financial statements to complete the package. b. identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis. c. develop an advertising plan to promote the upcoming sales. d. find marketing interns or hire new staff to help with implementation. e. use the Internet, catalogs, and vendor information to draw up a list of new products.

b. identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis.

Paul is considering psychographics as a way to segment the market for his small travel agency. This approach to segmentation offers him an advantage because a. psychographics is the preferred method for service businesses. b. it is based on underlying reasons people make choices. c. it is easier to use than demographics. d. the travel business doesn't respond well to other approaches to segmentation. e. psychographic segmentation is the least expensive method.

b. it is based on underlying reasons people make choices.

Whenever Donald calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local business person and has been in business over twenty years. Donald is __________ his business relative to his competition. a. targeting b. positioning c. pricing d. segmenting e. packaging

b. positioning

If values provide goals, and self-concept is the way we see ourselves, lifestyles are a. determined by demographics. b. the way we live our lives to achieve our goals. c. motivations turned into perceptual maps. d. our underlying motivations. e. visual images of how we should live our lives.

b. the way we live our lives to achieve our goals.

For products like clothespins, which provide the same benefit for all consumers, marketers should probably use a(n) ________ strategy. a. concentrated targeting b. undifferentiated targeting c. lifestyle segmentation d. benefit segmentation e. differentiated segmentation

b. undifferentiated targeting

__________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach. a. Psychographic b. Benefits c. Demographic d. Geographic e. Behavioral

c. Demographic

Jim wants to position his firm against his competitors. In doing so he should a. never select a competitor in the same neighborhood. b. avoid making the competitor's product look undesirable. c. avoid looking too much like the competitor so that he'd confuse the target segment. d. avoid discussing the strengths of his product so that competitors won't be aware of his product quality. e. avoid discussing the weaknesses of his competitors so they won't retaliate.

c. avoid looking too much like the competitor so that he'd confuse the target segment.

When Penguin Catering Services first opened, the owner decided to target only events at resorts in its geographic region. Penguin Catering was using a(n) __________ targeting strategy. a. differentiated b. micromarketing c. concentrated d. benefit-driven e. undifferentiated

c. concentrated

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to a. develop a positioning strategy. b. categorize each market segment by consumer demographics. c. evaluate the attractiveness of each segment. d. decide on a targeting strategy. e. establish her overall objectives.

c. evaluate the attractiveness of each segment.

When selecting a target market, firms will be most successful if they a. reposition the brand. b. seek out opportunities to customize products. c. match the firm's competencies with a market segment's attractiveness. d. decide between demographic and geographic segmentation methods. e. develop a strong communication plan.

c. match the firm's competencies with a market segment's attractiveness.

Ryan wants to sell personal website services to American soldiers in Afghanistan. Because of the difficulty of communicating with people in a war zone, Ryan may have trouble with this segment not being a. quantifiable. b. substantial. c. reachable. d. identifiable. e. perceptive.

c. reachable.

Which of these is NOT one of the main components of a value proposition? a. The unique point of difference or benefits offered. b. The name of the product or brand being offered. c. The target market. d. The price of the product or service being offered. e. The product/service category or concept being offered.

d. The price of the product or service being offered.

Television advertising has recently expanded to include mini-ads, which are short ads lasting five to ten seconds. These ads are most useful in advertising to men, since men are more likely than women to channel surf during commercial breaks. This type of advertising will be more useful to marketers engaged in __________ segmentation. a. benefits b. psychographic c. behavioral d. geographic e. demographic

e. demographic

Retail store chains often use __________ data to identify other locations with similar characteristics and purchasing behavior where it might make sense to open additional stores. a. loyalty b. geographic c. psychographic d. benefit e. geodemographic

e. geodemographic

Firms use a differentiated targeting strategy because a. banks are more willing to extend credit to companies with this strategic approach. b. it is better than focusing on individual or small groups of potential customers. c. it is easier than mass marketing. d. most market segments are too small to be profitable. e. it helps to obtain a bigger share of the market.

e. it helps to obtain a bigger share of the market.

Corporate pilot fish are former employees who start a new business based primarily on contacts and contracts with their old company. A corporate pilot fish would probably pursue a __________ targeting strategy. a. undifferentiated b. benefit-based c. differentiated d. macromarketing e. micromarketing

e. micromarketing

__________ is an extreme form of a targeting strategy. a. Micromarketing b. Benefit marketing c. Macromarketing d. Differentiated targeting e. Concentrated targeting

a. Micromarketing

The perceptions of __________ are being measured in a perceptual map. a. consumers b. the current R&D team c. the company's executive team d. competitors e. strategic planners

a. consumers

Marketers often create a special marketing mix for loyalty segments because these segments are a. generally profitable. b. costly to acquire. c. difficult to identify. d. too large to service with ordinary targeting. e. constantly changing.

a. generally profitable.

When Ron complained to his bank about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests. The branch management included Ron in its __________ segmentation. a. loyalty b. geodemographic c. benefit d. geographic e. psychographic

a. loyalty

Godiva Chocolates produces specially decorated boxes of candies for Valentine's Day, Easter, and Christmas. This is an example of ________ segmentation. a. occasion b. loyalty c. psychographic d. demographic e. geographic

a. occasion

A university using benefit segmentation and targeting students who want to get a degree quickly while still working full time would focus on a. providing classes at convenient times and offering online courses. b. the higher average salaries earned by college graduates. c. the number of Nobel Prize winners on the faculty. d. discount pricing for students taking more than twelve credit hours. e. the great variety of classes offered.

a. providing classes at convenient times and offering online courses.

While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do NOT help marketers determine a. what their customers need. b. where their customers live. c. how old their customers are. d. what income brackets their customers are in. e. which customers have young children.

a. what their customers need.

For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting its marketing mix variables to give customers a. a perceptual map of the imaging landscape. b. a clear, distinctive, and desirable understanding of its products relative to competing products. c. a more flexible supply chain strategy. d. more product features than the competition offers. e. lower prices than the competition offers.

b. a clear, distinctive, and desirable understanding of its products relative to competing products.

Social networking sites that compete directly with Facebook have a difficult time surviving; however, LinkedIn has survived by focusing on the needs of business professionals, who seek to network with colleagues, share their expertise, post online resumés, and look for new jobs. What segmentation method is LinkedIn using? a. demographic segmentation. b. benefit segmentation. c. psychographic segmentation. d. geodemographic segmentation. e. loyalty segmentation.

b. benefit segmentation.