Ch. 6 marketing quiz

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

False

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

False

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

False

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

Local

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

Market segmentation

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

Psychographic

Which of the following is true of product positioning?

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

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

True

Companies must do much more than simply shout out their positions with slogans and taglines. They must differentiate their products in the minds of the consumers.

True

Countries can be segmented by cultural factors, grouping markets according to common languages, religions, values and attitudes, customs, and behavioral patterns.

True

Creating market offerings that best serve targeted customers is called differentiation.

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

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

A brand difference is said to be preemptive if ________.

competitors cannot easily copy the difference

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

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

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

gender

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

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

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

individual marketing

A market segment is less attractive when ________.

it contains powerful suppliers who can control prices

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

knowledge of customer needs

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

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

mass marketing

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

measurable

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

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

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

positioning statement

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

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

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

undifferentiated

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

usage rate

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

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

accessible

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

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

are easier to measure than other variables

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