BUS 312 Chapter 7 Practice Sets

Toothpastes claim they​ "whiten teeth,"​ "fight bad​ breath," and​ "reduce plaque." Which base of segmentation is being used in this​ example? A. Demographics B. Occasions C. Benefits sought D. Psychographics E. Geographic

C. Benefits sought

The winning value proposition by discount stores such as Walmart and Best Buy can be categorized as​ __________. A. more for more B. more for less C. less for much less D. more for the same E. the same for less

E. the same for less Offering​ "the same for​ less" can be a powerful value propositionlong dash—everyone likes a good deal. Discount stores such as​ Walmart, Best​ Buy, PetSmart,​ David's Bridal, and DSW Shoes use this positioning. They​ don't claim to offer different or better products.

The Westin Stamford Hotel in Singapore failed when it once advertised itself as the​ world's tallest hotel. This difference was not worth establishing because it did not satisfy which of the following​ criteria? A. Preemptive B. Distinctive C. Important D. Superior E. Communicable

C. Important The difference needs to deliver a highly valued benefit to the target buyers. In this​ case, tourists did not see staying at the​ world's tallest hotel as important. In​ fact, many were turned off by it.

__________ segmentation divides buyers into segments based on their​ knowledge, attitudes,​ uses, or responses to a product. A. Occasion B. Behavioral C. Gender D. Demographic E. Psychographic

B. Behavioral Many marketers believe that behavior variables are the best starting point for building market segments.

Amazon and GEICO set themselves apart with their​ smooth-functioning direct delivery strategy referred to as​ __________ differentiation. A. services B. channel C. image D. people E. product

B. channel Firms that practice channel differentiation gain competitive advantage through the way they design their​ channel's coverage,​ expertise, and performance.

Market​ __________ evaluates each market​ segment's attractiveness and selects one or more segments to serve. A. segmentation B. targeting C. positioning D. differentiation E. relationships

B. targeting

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. ​Fast-growing segments are always attractive. C. Carefully consider the degree of competition and ease of entry into the segment. D. The power of buyers is not a consideration when evaluating the attractiveness of a segment. E. If a segment is larger than​ others, it should be targeted.

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

A company can differentiate itself from competitors using symbols such as​ McDonald's golden​ arches, Twitter's​ bird, and the Nike swoosh. Which type of differentiation is​ this? A. Channel differentiation B. Services differentiation C. Image differentiation D. People differentiation E. Product differentiation

C. Image differentiation Symbols can provide strong company or brand recognition and image differentiation.

When marketers target segments such as sports​ fans, do-it-yourselfers,​ commuters, and wine​ enthusiasts, which base of segmentation are they​ using? A. Intermarket segmentation B. Behavioral segmentation C. Demographic segmentation D. Psychographic segmentation E. Geographic segmentation

D. Psychographic segmentation Psychographic segmentation divides buyers based on​ lifestyle, social​ class, or personality characteristics. Being a sports​ fan, do-it-yourselfer,​ commuter, or wine enthusiast reflects different lifestyles.

What is​ positioning? A. Selecting which customers to serve B. Developing profiles of market segments C. Dividing a market into smaller groups of buyers D. Selecting which segments to enter E. Arranging for a market offering to occupy a​ clear, distinctive, and desirable place relative to competing products in the minds of target consumers

E. Arranging for a market offering to occupy a​ clear, distinctive, and desirable place relative to competing products in the minds of target consumers Positioning 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. A product position is the way a product is defined by consumers on important attributeslong dash—the place the product occupies in​ consumers' minds relative to competing products.

Anythinglefthanded.com.uk only sells products designed for​ left-handed people. Which targeting strategy is it​ using? A. Local marketing B. Undifferentiated marketing C. Differentiated marketing D. Individual marketing E. Concentrated marketing

E. Concentrated marketing It is going after a large share of one​ (or a​ few) smaller segment—in this​ case, left-handed​ people, who comprise only​ 10% of the general population.

Which value proposition is difficult to sustain in the long​ run? A. More for the same B. The same for less C. Less for much less D. More for more E. More for less

E. More for less Offering more typically costs​ more, making it hard for companies to deliver on the​ "for less" promise.

If men and women respond similarly to the same marketing​ mix, they do not constitute different segments. Gender would not be effective in this example because the segment is not​ ________. A. actionable B. substantial C. accessible D. measurable E. differentiable

E. differentiable To be​ useful, segments should be conceptually distinguishable and respond differently to different marketing mix elements and programs.

On the My​ M&Ms Web​ site, users can place custom orders for​ M&Ms. They can choose their own​ colors, put a personalized text message on the​ candies, and even upload a photo to be placed on each​ M&M. Which targeting strategy is​ M&M using​ here? A. Concentrated marketing B. Local marketing C. Undifferentiated marketing D. Differentiated marketing E. Individual marketing

E. Individual marketing

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. The business market is homogenous and is not segmented. C. The use of demographics to segment markets has declined in recent years. D. Companies that segment based on income primarily target the affluent. E. As gender roles have​ changed, gender is no longer a useful form of segmentation.

A. Consumer and business marketers use many similar​ variables, but business marketers use additional variables to segment their markets. Like​ consumers, businesses can be segmented​ geographically, demographically, or by behavioral measures. But business marketers use additional​ variables, which include operating​ characteristics, purchasing​ approaches, situational​ factors, and personal characteristics.

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

A. Different segments might require different marketing strategies or mixes. Market segmentation involves dividing a market into smaller groups of buyers with distinct​ needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

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​ __________. A. concentrated marketing B. differentiated marketing C. micromarketing D. undifferentiated marketing E. segmented marketing

A. concentrated marketing

The step in designing a customer valuedash-driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market​ __________. A. segmentation B. targeting C. differentiation D. positioning E. identifying

A. segmentation Market segmentation involves dividing a market into distinct groups of buyers who have different​ needs, characteristics, or behaviors and who might require separate marketing strategies or mixes.

Using​ a(n) __________ marketing​ strategy, a firm might decide to ignore market segment differences. A. undifferentiated B. individual C. differentiated D. micromarketing E. local

A. undifferentiated Using an undifferentiated marketing​ (or mass​ marketing) strategy, a firm might decide to ignore market segment differences and target the whole market with one offer. The company may design a product and a marketing program that will appeal to the largest number of buyers and ignore market segment differences.

​__________ segmentation divides buyers into different segments based on lifestyle or personality characteristics. A. Gender B. Behavioral C. Psychographic D. Benefit E. Income

C. Psychographic People in the same demographic group can have very different psychographic characteristics.

What are perceptual positioning maps used​ for? A. To implement a particular positioning strategy B. To compare a​ company's profitability with the profitability of competitors C. To show consumer perceptions of different brands on important buying dimensions D. To find where to best position a product on a store shelf E. To show consumer perceptions of an individual brand on important buying dimensions

C. To show consumer perceptions of different brands on important buying dimensions In planning their differentiation and positioning​ strategies, marketers often prepare perceptual positioning maps that show consumer perceptions of their brands versus those of competing products on important buying dimensions. The position of each circle on the map indicates the​ brand's perceived positioning on two​ dimensions: price and orientation​ (luxury versus​ performance). The size of each circle indicates the​ brand's relative market share.

What is the purpose of​ differentiation? A. To allow a firm to offer the lowest prices B. To select the segment or segments to enter C. To market high quality products D. To create superior customer value E. To divide the market into smaller groups of buyers

D. To create superior customer value

The process of evaluating each market​ segment's attractiveness and selecting one or more market segments to enter is called​ ________. A. market segmentation B. positioning C. a​ customer-driven marketing strategy D. market targeting E. differentiation

D. market targeting Market targeting is the process of evaluating each market​ segment's attractiveness and selecting one or more market segments to enter. The company identifies different ways to segment the market and develops profiles of the resulting market segments.

One important consideration in using a differentiated targeting strategy is that​ ________. A. the demand for customized products is decreasing B. it is easier for the company because it needs to manage only one market offering C. focusing on what is common in consumers can potentially appeal to the largest number of buyers D. serving one or a few smaller segments can limit sales E. it can increase costs

E. it can increase costs Serving multiple segments with a differentiated marketing strategy increases the cost of doing business. A firm usually finds it more expensive to develop and produce 10 units of 10 different products than 100 units of a single product.