CHAPTER 7: SEGMENTATION, TARGETING, POSITIONING
12) The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation. A) behavioral B) psychographic C) age and life cycle D) demographic E) geographic
A
13) Many marketers believe that which of the following variables are the best starting point for building marketing segments? A) behavioral B) family size C) gender D) age E) beneficial
A
15) 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 ________. A) user status B) usage rates C) benefit D) behavior E) loyalty status
A
17) By studying its less loyal buyers, a company can detect which brands are most ________ its own. A) competitive with B) used with C) overlooked with D) similar to E) complementary to
A
22) Lexus targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________. A) intermarket segmentation B) loyalty segmentation C) life-cycle segmentation D) targeting segmentation E) psychographic segmentation
A
23) When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________. A) measurable B) accessible C) substantial D) actionable E) observable
A
31) Mass marketers, such as Target and Venture Stores, often ignore market segment differences and target the whole market with one offer. What is their approach to segmenting? A) undifferentiated marketing B) differentiated marketing C) target marketing D) concentrated marketing E) micromarketing
A
34) Developing a strong position within several segments creates more total sales than ________marketing across all segments. A) undifferentiated B) differentiated C) niche D) target E) individual
A
41) Which of the segmenting strategies carries higher-than-average risks in consumer markets? A) concentrated B) mass C) differentiated D) undifferentiated E) multiple-segment
A
5) Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be ________ segmentation. A) Geographic B) Benefit C) End-use D) Customer E) Image
A
7) Through talking to numerous competitors at a regional trade show, you learn that most of them use the most popular base for segmenting markets. What is it? A) demographic B) gender C) psychographic D) behavioral E) geographic
A
10) When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely using which type of segmentation? A) age and life cycle B) gender C) behavior D) psychographic E) geographic
B
11) Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation? A) gender B) income C) occasion D) usage rate E) benefits sought
B
16) Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ________. A) user status B) loyalty status C) store type D) brand preference E) usage rate
B
30) In general, a company should enter only segments in which it can ________ and ________. A) offer lower prices; ship faster B) offer superior value; gain advantages over competitors C) offer superior value; ship faster D) gain advantages over competitors; differentiate its products E) identify behaviors; understanding spending power
B
32) The 55-year-old baby boomers share common needs in music and performers. When a music company decides to serve this group, the group is called a(n) ________. A) market segment B) target market C) well-defined market D) differentiated market E) undifferentiated market
B
33) When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing. A) undifferentiated B) differentiated C) target D) individual E) niche
B
39) Niche marketing offers smaller companies the opportunity to compete by focusing their limited resources on serving niches that may be ________ or ________ larger companies. A) unimportant to; unwanted by B) unimportant to; overlooked by C) too small; undesirable to D) unknown by; unwanted by E) disappointed by; geographically far from
B
4) Even though several options are available at any one time, there ________ to segment a market. A) Is one single best way B) Is no single way C) Is a most effective way D) Are limited ways E) Are four ways
B
44) Which of the following is the narrowest marketing strategy? A) segmented strategy B) local marketing C) differentiated marketing D) mass marketing E) undifferentiated marketing
B
51) When competitors use differentiated or concentrated marketing, ________ marketing can be disastrous. A) differentiated B) undifferentiated C) concentrated D) customized E) localized
B
9) Marketers must be most careful to guard against which of the following when using age and life cycle segmentation? A) underestimating B) stereotyping C) traditional marketing D) cultural bias E) gender bias
B
1) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________. A) Concentrated marketing B) Mass marketing C) Market targeting D) Segmenting E) Differentiation
C
14) Which type of segmentation centers on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item? A) behavioral B) psychographic C) occasion D) impulse E) emergency
C
18) Many firms make an effort to identify smaller, better-defined target groups by using ________. A) user rates B) loyalty segmentation C) multiple segmentation bases D) positioning E) mass marketing
C
2) What are the four steps, in order, to designing a customer-driven marketing strategy? A) market segmentation, differentiation, positioning, and targeting B) positioning, market segmentation, mass marketing, and targeting C) market segmentation, targeting, differentiation, and positioning D) market alignment, market segmentation, differentiation, and market positioning E) market recognition, market preference, market targeting, and market insistence
C
20) As in consumer segmentation, many marketers believe that ________ and ________ segmentation provide the best basis for segmenting business markets. A) geographic; demographic B) user status; user loyalty C) benefits; buying behavior D) age and life-cycle; psychographic E) income; usage rate
C
24) When a business market segment is large or profitable enough to serve, it is termed ________. A) measurable B) accessible C) substantial D) actionable E) differentiable
C
29) Which of the following is NOT one of the reasons a segment would be less attractive to a company? A) strong competitors B) substitute products C) concentrated market D) power of buyers E) power of suppliers
C
35) ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________ against ________ when selecting this strategy. A) extra research; costs B) sales analysis; sales C) increased sales; increased costs D) geographic segmentation; demographic segmentation E) attitudes; perceptions
C
36) Procter & Gamble sells six brands of laundry detergent in the United States, each designed for one of six laundry segments Procter & Gamble has identified. Together, these six brands take 62% of market share. Which of the following is a disadvantage of Procter & Gamble's differentiated marketing strategy? A) lost sales that would have been made with an undifferentiated marketing strategy across all segments B) lost customer loyalty due to lack of brand loyalty C) increased costs for separate marketing plans for each brand D) other suppliers controlling pricing E) lack of resources to succeed in an attractive segment
C
38) Using concentrated marketing, the marketer goes after a ________ share of ________. A) small; a small market B) small; a large market C) large; one or a few niches D) large; the mass market E) moderate; local
C
40) Today, the low cost of setting up shop ________ makes it even more profitable to serve very small niches. A) in malls in major cities B) in mail-order catalogs C) on the Internet D) near major competitors E) far from competitors
C
46) Under what circumstances can local marketing be quite effective? A) when pronounced regional differences in demographics are present B) when pronounced local differences in lifestyles are present C) when pronounced regional and local differences in demographics and lifestyles are present D) when regional and local differences in demographics and lifestyles are similar E) all of the above
C
47) When Wal-Mart customizes its merchandise store by store to meet shopper needs, it is practicing ________. A) niche marketing B) psychographic marketing C) local marketing D) social segmentation E) individual marketing
C
48) 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 following ________. A) one-to-one marketing B) mass marketing C) mass customization D) differentiated marketing E) localization
C
49) The move toward individual marketing mirrors the trend in consumer ________. A) self-imaging B) customizing C) self-marketing D) tastes E) self-conceptualization
C
21) International Drilling Company segments its foreign markets by their overall level of economic development. This firm segments on what basis? A) political factors B) legal factors C) geographic factors D) economic factors E) cultural factors
D
25) When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________. A) accessible B) measurable C) reachable D) actionable E) differentiable
D
26) You have discovered that the segments you are targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. These segments are ________. A) accessible B) measurable C) reachable D) differentiable E) observable
D
27) To evaluate the different market segments your company serves, you would look at all of these factors EXCEPT which one? A) segment size B) segment growth C) segment structural attractiveness D) company values E) company resources
D
28) Barney Hopkins has compiled a list of things that make segments more attractive. Which one of the following items should NOT be on the list? A) relative power of buyers B) lack of powerful suppliers to control prices C) few substitute products D) competition with superior resources E) financial resources
D
37) Successful niche marketing relies on a firm's ________ and its ________. A) marketing strategy; services B) individual relationships with customers; positioning C) superior products; value network partners D) greater knowledge of customers' needs; special reputation E) competitive advantage in comparison to mass-market companies; affordable pricing
D
43) ________ tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores. A) Undifferentiated B) Differentiated marketing C) Niche marketing D) Local marketing E) Individual marketing
D
50) When choosing a target marketing strategy, many factors need to be considered. Which of the following does your text NOT mention as important? A) company resources B) degree of product variability C) product life-cycle stage D) product cost E) competitors' marketing strategies
D
52) Target marketing sometimes generates controversy and concern. Issues usually involve the targeting of ________ consumers with ________ products. A) elderly; expensive B) young; appealing C) vulnerable; marketing D) vulnerable or disadvantaged; controversial or potentially harmful E) unexpected; deceptive
D
6) Pendergraff Pet Supplies divides the pet market according to the owners' race, occupation, income, and family life cycle. What type of segmentation does Pendergraff use? A) geographic B) behavioral C) lifestyle D) demographic E) psychographic
D
8) Demographic variables are so frequently used in market segmentation because they ________. A) Create smaller segments than other methods do B) Create more easily reached segments than other methods do C) Do not involve stereotypes D) Are easy to measure in comparison to many other methods E) Involve fewer attributes to consider than other methods do
D
19) Consumer and business marketers use many of the same variables to segment markets. Business marketers use all of the following EXCEPT ________. A) operating characteristics B) purchasing approaches C) situational factors D) personal characteristics E) brand personalities
E
3) Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more ________ with products and services that match their unique needs. A) Efficiently B) Effectively C) Intensely D) Indirectly E) Both A and B
E
42) As You Like It, Inc., customizes its offers to each individual consumer. This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________ marketing. A) niche B) mass C) differentiated D) undifferentiated E) micro
E
45) Which of the following is NOT a drawback of local marketing? A) It can drive up manufacturing costs. B) It can drive up marketing costs by reducing economies of scale. C) It can create logistics problems. D) A brand's overall image might be diluted through too much variation. E) Supporting technologies are expensive.
E