CHAPTER 8: MARKET SEGREGATION, TARGETING, AND POSITIONING

Many firms make an effort to identify smaller, better- defined target groups by using ________. A) multiple segmentation bases B) positioning C) loyalty segmentation D) mass marketing E) user rates

A) multiple segmentation bases

Today, the low cost of setting up shop ________ makes it even more profitable to serve very small niches. A) on the Internet B) in mail- order catalogs C) far from competitors D) near major competitors E) in malls in major cities

A) on the Internet

The answer to the customer's question "Why should I buy your brand?" is found in the ________. A) value proposition B) differentiation C) quality image D) pricing and promotion structure E) customer services

A) value proposition

Which of the following is the most logical reason for Procter & Gamble offering products that compete with one another on the same supermarket shelves? A) It creates healthy competition. B) Different people want different mixes of benefits from the products they buy. C) Procter & Gamble has little competition. D) Retailers request it. E) Different people want a greater selection

B) Different people want different mixes of benefits from the products they buy.

When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________. A) accessible B) actionable C) reachable D) differentiable E) measurable

B) actionable

When Burger King targets children, teens, adults, and seniors with different ads and media, it is practicing ________ segmentation. A) generational B) age and life cycle C) demographic D) behavioural E) psychographic

B) age and life cycle

Many marketers believe that which of the following variables are the best starting point for building marketing segments? A) beneficial B) behavioural C) family size D) age E) gender

B) behavioural

Which of the following is NOT one of the reasons a segment would be less attractive to a company? A) substitute products B) concentrated market C) power of suppliers D) strong competitors E) power of buyers

B) concentrated market

A brand difference is worth establishing and promoting to the extent that it satisfies all of the criteria below EXCEPT which one? A) distinctive B) divisible C) recognizable D) important E) affordable

B) divisible

Successful niche marketing relies on a firm's ________ and its ________. A) individual relationships with customers; positioning B) greater knowledge of customers' needs; special reputation C) competitive advantage in comparison to mass- market companies; affordable pricing D) marketing strategy; services E) superior products; value network partners

B) greater knowledge of customers' needs; special reputation

Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation? A) gender B) income C) benefits sought D) usage rate E) occasion

B) income

Which group determines a product's position relative to competing products? A) suppliers B) manufacturers C) consumers D) retailers E) wholesalers

C) consumers

When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing. A) target B) undifferentiated C) differentiated D) individual E) niche

C) differentiated

International Drilling Company segments its foreign markets by their overall level of economic development. This firm segments on what basis? A) legal factors B) political factors C) economic factors D) cultural factors E) geographic factors

C) economic factors

Segmenting voters as either conservatives or liberals is an example of ________. A) benefit segmentation B) intermarket segmentation C) psychographic segmentation D) occasion segmentation E) demographic segmentation

C) psychographic segmentation

Developing a strong position within several segments creates more total sales than ________ marketing across all segments. A) target B) individual C) undifferentiated D) niche E) differentiated

C) undifferentiated

Niche marketing offers smaller companies the opportunity to compete by focusing their limited resources on serving niches that may be ________ or ________ larger companies. A) too small; undesirable to B) unknown by; unwanted by C) unimportant to; overlooked by D) unimportant to; unwanted by E) disappointed by; geographically far from

C) unimportant to; overlooked by

When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely using which type of segmentation? 10) A) age and life cycle B) behaviour C) geographic D) gender E) psychographic

D) gender

Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be ________ segmentation. A) customer B) image C) end- use D) geographic E) benefit

D) geographic

When choosing a target marketing strategy, many factors need to be considered. Which of the following does your text NOT mention as important? A) degree of product variability B) competitors' marketing strategies C) product life- cycle stage D) product cost E) company resources

D) product cost

Consumer and business marketers use many of the same variables to segment markets. Business marketers use all of the following EXCEPT ________. A) situational factors B) purchasing approaches C) personal characteristics D) operating characteristics E) educational status

E) educational status

When Pacific Fisheries groups its customers by countries and regions such as: Asia, Australia, or New Zealand, it is using which segmenting base? A) benefits sought B) demographics C) economic factors D) political and legal factors E) geographic location

E) geographic location

In target marketing, the issue is not really who is targeted, but rather ________ and for ________. A) why; what B) how; where C) where; how long D) why; how long E) how; what

E) how; what

Ford Motor Company emphasizes "Quality FirstNFord Tough" in its truck products. In doing so, the company has developed a differentiation strategy based on ________. A) people B) products C) services D) positioning E) image

E) image

Using concentrated marketing, the marketer goes after a ________ share of ________. A) small; a small market B) large; the mass market C) moderate; local D) small; a large market E) large; one or a few niches

E) large; one or a few niches

When Wal- Mart customizes its merchandise store by store to meet shopper needs, it is practicing ________. A) niche marketing B) social segmentation C) psychographic marketing D) individual marketing E) local marketing

E) local marketing

When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________. A) differentiation B) mass marketing C) segmenting D) concentrated marketing E) market targeting

E) market targeting

When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________. A) substantial B) actionable C) observable D) accessible E) measurable

E) measurable

According to one expert, cited in the text, products are created in the factory, but brands are created in the ________. A) retail outlet B) boardroom C) R&D lab D) supermarket E) mind

E) mind

What competitive positioning can attack a more- for- more strategy by introducing a brand offering with comparable quality at a lower price? A) more- for- less B) all- or- nothing C) same- for- less D) less- for- much- less E) more- for- the- same

E) more- for- the- same

The Jay Group hires better employees than the competition by conducting lengthy searches and interviews. Management also trains employees much better than competitors do. The Jay Group has gained a strong competitive advantage through which type of differentiation? A) product B) channel C) image D) services E) people

E) people

At a recent marketing seminar, the featured speaker stated that a target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. This is a correct definition.

T

Bombay Gifts divides its markets into units of nations, regions, and cities. Bombay uses geographic segmentation

T

Clusters of marketable groups of customers with similar likes, dislikes, lifestyles, and purchase behaviours can be identified by multivariable segmentation systems that merge and analyze geographic, demographic, lifestyle, and behavioural data

T

Consumers position products in their minds in order to simplify the buying process.

T

Critics worry that marketers of everything from lingerie and cosmetics to Barbie dolls are directly or indirectly targeting young girls with provocative products.

T

Developing a stronger position within several segments creates more total sales than undifferentiated marketing across all segments.

T

Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

T

In evaluating different market segments, a firm should look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources.

T

It would not pay, for example, for an automobile manufacturer to develop cars especially for people whose height is greater than seven feet

T

Market segmentation requires creating subgroups of consumers which are similar to one another in important buying behavior characteristics.

T

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

T

Not- for- profit organizations also use age and life- cycle segmentation to help them raise funds.

T

P&G realizes that we all want some of every one of these benefits from our laundry detergent, but we may have different priorities for each benefit.

T

Shopping for the Rich and Famous is a buying service that helps wealthy clients find the best buys in exclusive clothing, high- end cars, travel, and financial services. This firm most likely uses income segmentation.

T

There are many exceptions to the geographic segmentation assumption that consumers in nations close to one another will have many common behaviours and traits.

T

Though the use of mass marketing has been widespread in the past 100 years, for centuries consumers were served as individuals as businesses practiced individual marketing.

T

Wal- Mart uses more than 200 finely tuned planograms (shelf plans) to match soup assortments to each store's demand patterns

T

When a company chooses a target marketing strategy, its choices are influenced by factors related to company resources, the degree of product variability, and the product's life- cycle stage.

T

Your assignment at work is to divide buyers into different groups based on social class, lifestyle, and personality characteristics. After a planning session with the marketing and sales staff, you issue a memo to upper management recommending psychographic segmentation. You are right on target

T

A market-product grid is a framework to relate the __________ to products offered or potential marketing actions by an organization. a. market segments of potential buyers b. marketing objectives of potential products c. total anticipated revenue d. total anticipated profit e. market share of the closest competitor

a

Alamo, a car rental firm, targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year. Alamo likely segments its market by a. usage rate. b. benefits offered. c. demographics. d. geography. e. lifestyle.

a

Another term for customized marketing is: a. data-based marketing b. undifferentiated marketing c. differentiated marketing d. the 80/20 rule

a

When Ace Hardware designs an advertising program to attract "all comers" to buying hacksaw blades in its stores, this is an example of: a. differentiated marketing b. undifferentiated marketing c. concentrated marketing d. the 80/20 principle

b.

A recent study by the Aberdeen Group analyzed which segmentation bases were used by the 20 percent most profitable organizations of the 220 surveyed. Which segmentation base did these organizations use most? a. behavioral b. psychographic c. geographic d. demographic e. product

c

Frequency marketing is a strategy that focuses on a. demographics. b. benefits offered. c. usage rate. d. geography. e. lifestyle.

c

Gender is one of the examples of which market segmentation variable? a. lifestyle/psychographic b. behavior pattern c. demographic d. consumer predisposition

c

Targeting soft drink users as light, medium, or heavy users depending on their consumption patterns is an example of which segmentation variable? a. geographic b. demographic c. consumption patterns d. socioeconomic

c

If Wendy's customers are buying an eating experience, which of the following rationales would make the most sense if you were to group the products Wendy's sells? a. grouping by caloric intake b. grouping by price c. grouping by meal occasion d. grouping by usage rate e. grouping by level of uniqueness

e

It is considered socially irresponsible when the marketing of adult products spills over into the ________ segment. A) child B) animal C) minority D) elderly E) senior

A) child

Which of the segmenting strategies carries higher- than- average risks in consumer markets? A) concentrated B) multiple- segment C) mass D) differentiated E) undifferentiated

A) concentrated

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) convincingly B) intensely C) efficiently D) indirectly E) sporadically

A) convincingly

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) psychographic C) gender D) geographic E) behavioural

A) demographic

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) differentiable B) measurable C) reachable D) observable E) accessible

A) differentiable

Procter & Gamble sells four brands of laundry detergent in Canada, each designed for one of six laundry segments Procter & Gamble has identified. Which of the following is a disadvantage of Procter & Gamble's differentiated marketing strategy? A) increased costs for separate marketing plans for each brand B) lost customer loyalty due to lack of brand loyalty C) lost sales that would have been made with an undifferentiated marketing strategy across all segments D) lack of resources to succeed in an attractive segment E) other suppliers controlling pricing

A) increased costs for separate marketing plans for each brand

ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________ against ________ when selecting this strategy. A) increased sales; increased costs B) geographic segmentation; demographic segmentation C) sales analysis; sales D) attitudes; perceptions E) extra research; costs

A) increased sales; increased costs

You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand is differentiated and positioned. This full positioning of the brand is called ________. A) its value proposition B) capturing the consumers' attention C) target marketing D) differentiated marketing E) value profiling

A) its value proposition

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) mass customization B) one- to- one marketing C) localization D) differentiated marketing E) mass marketing

A) mass customization

Which difficult- to- sustain positioning strategy attempts to deliver the "best- of- both"? A) more- for- less B) more- for- the- same C) same- for- less D) less- for- much- less E) more- for- more

A) more- for- less

Marketers must be most careful to guard against which of the following when using age and life cycle segmentation? A) stereotyping B) underestimating C) gender bias D) cultural bias E) traditional marketing

A) stereotyping

When a business market segment is large or profitable enough to serve, it is termed ________. A) substantial B) accessible C) measurable D) actionable E) differentiable

A) substantial

Fifty five- 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) target market B) well- defined market C) differentiated market D) market segment E) undifferentiated market

A) target market

Jolene Enterprises mass produces an all- purpose floor cleaner, mass distributes it and mass promotes it. This firm uses ________ marketing. A) undifferentiated B) niche C) traditional D) differentiated E) segmented

A) undifferentiated

Shampoo marketers rate buyers as light, medium, or heavy product users. This is ________ segmentation. A) usage rate B) occasions C) benefit D) user status E) psychographic

A) usage rate

Lexus targets wealthy consumers with similar needs and buying behaviours, even though the consumers are located in different countries. This is an example of ________. A) psychographic segmentation B) intermarket segmentation C) loyalty segmentation D) targeting segmentation E) life- cycle segmentation

B) intermarket segmentation

"Less- for- much- less" positioning involves meeting consumers' ________. A) quality performance requirements at a lower price B) lower quality requirements in exchange for a lower price C) high quality requirements at a discounted rate D) high quality requirements at the lower possible price E) lower quality requirements at the lowest possible price

B) lower quality requirements in exchange for a lower price

Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ________. A) store type B) loyalty status C) usage rate D) brand preference E) user status

B) loyalty status

When it first opened for business, Home Depot claimed to offer better products at lower prices. This hard- to- sustain value proposition is called ________. A) more- for- the- same B) more- for- less C) same- for- more D) same- for- less E) more- for- more

B) more- for- less

A company or market offer can be differentiated along the lines of product, image, services, channels, or ________. A) customer service B) people C) prices D) location E) nonprice factors

B) people

Superior Auto Sales, a chain of high- end used car dealerships, wants to sum up its company positioning and brand positioning in a formal way. Superior's management would use a ________. A) competitive statement B) positioning statement C) mission statement D) vision statement E) company statement

B) positioning statement

Which type of statement first states the product's membership in a category and then shows its point- of- difference from other members of the category? A) vision statement B) positioning statement C) mission statement D) statement of intent E) differentiation statement

B) positioning statement

Which of the listed choices is NOT a positioning task? A) selecting the right competitive advantages B) surveying frequent users of the product C) identifying a set of possible competitive advantages upon which to build a position D) selecting an overall positioning strategy E) effectively communicating and delivering the chosen position to the market

B) surveying frequent users of the product

Mass marketers, such as Wal- Mart and Zellers, often ignore market segment differences and target the whole market with one offer. What is their approach to segmenting? A) micromarketing B) undifferentiated marketing C) concentrated marketing D) differentiated marketing E) target marketing

B) undifferentiated marketing

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) loyalty status B) user status C) benefit D) behaviour E) usage rates

B) user status

Which of the following statements illustrates why stereotypes should be avoided when using age and life cycle segmentation? A) Most 10- year- old boys are mischievous. B) The majority of 20 year olds have to work. C) Some 70 year olds use wheelchairs; others play tennis. D) Most couples start families when they are in their twenties. E) Old women love to shop; young women love it more!

C) Some 70 year olds use wheelchairs; others play tennis.

The markets you have chosen to serve in four western states can be effectively reached and served. You would tell the marketing manager that these segments are ________. A) profitable B) measurable C) accessible D) substantial E) actionable

C) accessible

The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation. A) age and life cycle B) demographic C) behavioural D) geographic E) psychographic

C) behavioural

To evaluate the different market segments your company serves, you would look at all of these factors EXCEPT which one? A) company resources B) segment structural attractiveness C) company values D) segment size E) segment growth

C) company values

A company or store gains a(n) ________ by differentiating its products and delivering more value. A) synergy B) positioning advantage C) competitive advantage D) efficiency advantage E) cost advantage

C) competitive advantage

By studying its less loyal buyers, a company can detect which brands are most ________ its own. A) similar to B) used with C) competitive with D) complementary to E) overlooked with

C) competitive with

Sanguine Services practices a marketing strategy where its limited resources are used to go after a large share of two small niches. Sanguine practices which one of these strategies? A) geographically dispersed B) differentiated C) concentrated D) mass E) undifferentiated

C) concentrated

Sixteen leading Canadian food and beverage firms made a commitment to shift their advertising directed to children under 12 to the promotion of ________. A) genetically modified foods B) whole- grain baked goods C) healthier dietary choice and healthy active living D) vitamin- enhanced bottled water E) vegetarian products only

C) healthier dietary choice and healthy active living

When firms use symbols, colours, or characters to convey their personalities, they are using ________ differentiation. A) people B) reputation C) image D) company E) subliminal

C) image

MTV targets the world's teenagers, who have similar needs and buying behaviour even though they are located in different countries. This is called ________ segmentation. A) individual B) cultural C) intermarket D) political and legal E) cross- cultural

C) intermarket

Even though several options are available at any one time, there ________ to segment a market. A) are limited ways B) are four ways C) is no single way D) is a most effective way E) is one single best way

C) is no single way

Few people can afford the best in everything they buy. At times everyone needs a product with less quality or performance with a correspondingly lower price. In this case a consumer would purchase a product positioned with a ________ strategy. A) same- for- less B) more- for- the- same C) less- for- much- less D) all- or- nothing E) more- for- less

C) less- for- much- less

Bob and Phyllis Cords own two retail stores, one in Madoc and one in Belleville. Though the towns are only 40 kilometres apart, the consumers at both stores are very different demographically. Bob and Phyllis alter the product offerings between both locations in an effort to cater to both demographic groups. This is an example of ________. A) psychographic segmentation B) intermarketing C) local marketing D) clustering E) mass customization

C) local marketing

Which of the following is the narrowest marketing strategy? A) mass marketing B) segmented strategy C) local marketing D) differentiated marketing E) undifferentiated marketing

C) local marketing

What are the four steps, in order, to designing a customer- driven marketing strategy? A) positioning, market segmentation, mass marketing, and targeting B) market recognition, market preference, market targeting, and market insistence C) market segmentation, targeting, differentiation, and positioning D) market segmentation, differentiation, positioning, and targeting E) market alignment, market segmentation, differentiation, and market positioning

C) market segmentation, targeting, differentiation, and positioning

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) mass B) niche C) micro D) undifferentiated E) differentiated

C) micro

What is the following an example of? "To busy, mobile professionals who need to always be in the loop, BlackBerry is a wireless connectivity solution that gives you an easier, more reliable way to stay connected to data, people, and resources while on the go." A) competitive advantage B) concentrated segmentation C) positioning statement D) service differentiation E) responsible target marketing

C) positioning statement

Local marketing can be quite effective under all of the following circumstances EXCEPT? A) when pronounced local differences in lifestyles are present B) when pronounced regional and local differences in demographics and lifestyles are present C) when pronounced local differences in usage rates are present D) when pronounced regional differences in demographics are present E) when regional and local differences in demographics and lifestyles are similar

C) when pronounced local differences in usage rates are present

Your current assignment at York Foods is to find the major benefits people look for in product classes, the kinds of people who look for each benefit, and the major brands that deliver each benefit. What is this segmentation method called? A) behavioural B) psychographic C) age and life cycle D) benefit E) demographic

D) benefit

As in consumer segmentation, many marketers believe that ________ and ________ segmentation provide the best basis for segmenting business markets. A) geographic; demographic B) age and life- cycle; psychographic C) user status; user loyalty D) benefits; buying behaviour E) income; usage rate

D) benefits; buying behaviour

Neiman Marcus claims superior quality, performance, and style. The owners provide the most upscale products and services and charge a higher price to cover the higher costs. What type of positioning does Neiman Marcus use? A) more- for- less B) the- same- for- less C) more- for- the- same D) more- for- more E) repositioning

D) more- for- more

Which type of segmentation centres 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) emergency B) psychographic C) behavioural D) occasion E) impulse

D) occasion

In general, a company should enter only segments in which it can ________ and ________. A) gain advantages over competitors; differentiate its products B) identify behaviours; understanding spending power C) offer lower prices; ship faster D) offer superior value; gain advantages over competitors E) offer superior value; ship faster

D) offer superior value; gain advantages over competitors

At one time Miller Beer was known as the "champagne of bottled beer." Unfortunately, Miller drinkers did not drink much beer. To increase sales, Miller was repositioned to attract the members of the middle working class. This segmentation approach is ________. A) usage rate B) behavioural C) benefit D) psychographic E) user status

D) psychographic

Which positioning strategy offers consumers a "good deal" by offering equivalent- quality products or services at a lower price? A) less- for- much- less B) more- for- less C) all- or- nothing D) same- for- less E) more- for- the- same

D) same- for- less

When marketers at Procter & Gamble selected the Millennials, a demographic that includes college students, as an untapped group of potential customers for their Febreze line of products, they were executing which step in the process of designing a customer- driven marketing strategy? A) market segmenting B) mass marketing C) positioning D) targeting E) differentiation

D) targeting

Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to it. What does USP stand for? A) unique services practice B) unique sales pitch C) unique strategic practice D) unique selling proposition E) unique selling product

D) unique selling proposition

Consumers position products and services ________. A) based on nearby competitors' positions B) only reluctantly C) generally after consulting friends who use them D) with or without the help of marketers E) after marketers put marketing mixes in place

D) with or without the help of marketers

________ tailors brands and promotions to the needs and wants of specific cities, neighbourhoods, and even stores. A) Undifferentiated marketing B) Niche marketing C) Differentiated marketing D) Individual marketing E) Local marketing

E) Local marketing

Which of the following is NOT a drawback of local marketing? A) A brand's overall image might be diluted through too much variation. B) It can drive up manufacturing costs. C) It can create logistics problems. D) It can drive up marketing costs by reducing economies of scale. E) Supporting technologies are expensive.

E) Supporting technologies are expensive.

Demographic variables are so frequently used in market segmentation because they ________. A) involve fewer attributes to consider than other methods do B) create more easily reached segments than other methods do C) do not involve stereotypes D) create smaller segments than other methods do E) are easy to measure in comparison to many other methods

E) are easy to measure in comparison to many other methods

Most attempts to target children and minority groups provide ________ to target customers. A) education B) harm C) disadvantages D) expenses E) benefits

E) benefits

Which type of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance? A) people differentiation B) product differentiation C) price differentiation D) services differentiation E) channel differentiation

E) channel differentiation

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) lack of powerful suppliers to control prices B) financial resources C) relative power of buyers D) few substitute products E) competition with superior resources

E) competition with superior resources

Jay Bee Promotions tailors its advertising and promotional services to the needs and preferences of individual customers. Which of the following terms does NOT apply to this type of marketing? A) customized B) markets- of- one C) mass customization D) one- to- one E) concentrated

E) concentrated

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) psychographic B) lifestyle C) behavioural D) geographic E) demographic

E) demographic

The move toward individual marketing mirrors the trend in consumer ________. A) self- conceptualization B) customizing C) self- imaging D) tastes E) self- marketing

E) self- marketing

When competitors use differentiated or concentrated marketing, ________ marketing can be disastrous. A) concentrated B) customized C) differentiated D) localized E) undifferentiated

E) undifferentiated

A marketer focuses on several commonalities among all consumers. This marketer appears to be engaging in ________. A) concentrated marketing B) differentiated marketing C) mass customization D) segmented marketing E) undifferentiated marketing

E) undifferentiated marketing

Target marketing sometimes generates controversy and concern. Issues usually involve the targeting of ________ consumers with ________ products. A) vulnerable; marketing B) young; appealing C) unexpected; deceptive D) elderly; expensive E) vulnerable or disadvantaged; controversial or potentially harmful

E) vulnerable or disadvantaged; controversial or potentially harmful

A market rarely exists for products that offer less and therefore cost less.

F

A product's position is the way the product is defined by the retailers who sell it to target markets. It is how it is defined on important attributesNthe place the product occupies in the retailers' minds relative to competing products.

F

Because Cruise Ships International currently has limited financial and personnel resources, it should avoid concentrated or niche marketing until resources are again substantial.

F

Because there is such variation among the economies of countries around the world, it is not practical to segment international markets on the basis of economic factors

F

By going after the whole market instead of segments, companies can deliver just the right value proposition to each segment served and capture more value in return.

F

For simplicity's sake, most marketers generally limit their segmentation analysis to one or a few variables

F

LaGrange Florists segments markets into groups of nonusers, ex- users, potential users, first- time users, and regular users of its flowers and services. This firm uses usage rate as its segmentation approach.

F

Mass marketing is becoming a marketing principle for the 21st century

F

Psychographic segmentation uses different marketing approaches for different time periods of people's lives and different family situations.

F

Research about and planning for loyalty status as a segmentation approach is generally not useful or practical for most firms.

F

The largest market segment that contains the heaviest users of the product should always be pursued by an organization.

F

Today, most companies have moved back toward mass marketing and are being choosier about the customers with whom they wish to build relationships.

F

Undifferentiated marketing strategies are always unsuccessful.

F

When Kia offers a new car model with the same features as a comparable Toyota or Ford and provides a longer warranty, Kia is following a more- for- less strategy

F

When a large group of consumers is subdivided into smaller groups of consumers depending on their demographic variables, we say that the market has been aggregated.

F

When the St. Louis Art Museum tries to attract "all people who live in or visit St. Louis" as its customers, this is an example of differentiated marketing.

F

Your company wants to move away from mass marketing and engage in customer- driven marketing. The four steps to take, in order, are market segmentation, marketing positioning, differentiation, and targeting

F

Five general criteria are often used to select target segments. They include: (1) the size of the market; (2) expected growth of the market; (3) competitive position of the firm with respect to the market; (4) cost of reaching the segment; and __________. a. compatibility with the organization's objectives and resources b. potential of a marketing action to reach a segment c. similarity of needs of potential buyers within a segment d. difference of needs of buyers among segments e. potential for increased profit

a

When an organization attempts to develop a different marketing mix for each of its customers, it is using which type of strategy? a. custom marketing strategy b. mass marketing strategy c. differentiated marketing strategy d. undifferentiated marketing strategy

a

The Southwestern States in the U.S. represent which type of market segmentation variable? a. geographic b. consumer patterns c. demographic d. socioeconomic

a.

When Hallmark designs kiosks for use in shopping malls so that customers can design personalized greeting cards, this is an example of: a. mass customization b. undifferentiated marketing c. focus marketing d. concentrated marketing

a.

Product positioning refers to a. an outdated concept that assigns product value by association with social class. b. the place a product offering occupies in consumers' minds on important attributes. c. the competitive advantage of one product over another. d. changing the place a product occupies in a consumer's mind relative to competitive products. e. using a market-product grid to place products in their appropriate places on that grid to identify potential untapped markets.

b

Segmentation based on where prospective customers live or work is referred to as a. zip code segmentation. b. geographic segmentation. c. regional segmentation. d. MSA segmentation. e. NAICS code segmentation.

b

Which of the following is a consumer demographic segmentation variable? a. personality b. gender c. usage rate d. needs e. region

b

Dividing the consumer market into domestic users and foreign users is an example of a. undifferentiated marketing b. market segmentation c. custom marketing d. benefit segmentation

b.

Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it serves customers' needs better, doesn't reduce quality or increase price, and a. conforms to all FDA guidelines. b. adds to the manufacturer's sales revenues and profits. c. creates economy of scale. d. decreases the cost of the physical plant. e. stabilizes the sales revenues and profits.

b.

The 80/20 rule suggests that a. 80 percent of a firm's inventory should be readily available and 20 percent should be reserved for emergency demand. b. 80 percent of a firm's first-time users will become brand loyal and 20 percent will use the product only once and then abandon it. c. 80 percent of a firm's sales are obtained from 20 percent of its customers. d. 80 percent of a firm's marketing program expenses are tax deductible and 20 percent are not. e. 80 percent of a firm's products will be sold to ultimate consumers and 20 percent to organizational buyers.

c

Variables such as location, the North American Industry Classification System (NAICS) code, and number of employees are all examples of ways to a. differentiate products. b. forecast sales to a consumer market. c. segment an organizational market. d. segment a consumer market. e. promote NAFTA.

c

When a manufacturer designs an advertising program to sell its chain saws only to farm and professional segments, it is using what type of strategy? a. undifferentiated strategy b. mass market strategy c. concentration strategy d. differentiated strategy

c

A marketing manager must be able to put a market segmentation plan into effect. This means being able to form market segments and then __________ without encountering excessive costs. a. eliminate potential non-buyers b. identify segmentation variables c. select the market segment(s) to target d. redirect their purchase behaviors e. ignore any and all similarities

d

Differentiation positioning requires a product to a. emphasize unique product attributes to compete directly with competitors. b. compete directly with competitors on similar product attributes in the same target market. c. compete with competitors on similar product attributes but in a different market. d. seek a less-competitive, smaller market niche in which to locate a brand. e. develop marketing actions to move a product or brand to an ideal position.

d

Four general categories used to segment consumer markets are geographic segmentation, demographic segmentation, __________, and behavioral segmentation. a. supplier segmentation b. demand segmentation c. regional segmentation d. psychographic segmentation e. product segmentation

d

Personality and lifestyle are both variables used to employ __________ segmentation. a. geographic b. behavioral c. attitudinal d. psychographic e.demographic

d

The purpose of the five key steps in segmenting and targeting markets is to a. identify competitors that provide similar products that satisfy a firm's customers' needs. b. provide guidance to reposition products. c. generate new products ideas for firms that are not growing in market share. d. link market needs of customers to the organization's marketing program. e. correspond directly to each of the five environmental forces.

d

A market-product grid refers to: a. a visual representation of all products offered within a specific product class. b. a framework used to compare the relative market share of one firm's product offerings to those of its competitors. c. a technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. d. a framework used to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. e. a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.

d.

Product differentiation refers to a. a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs. b. the unique combination of product benefits received by targeted buyers. c. those characteristics of a product that make it superior to competitive substitutes. d. a marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products. e. the legal requirement that requires a specified degree of distinction between products to ensure an organization's intellectual property rights.

d.

The ultimate criterion for an organization's marketing success is that __________ as a result of increased synergies. a. costs decrease b. market share increases c. product deficiencies decrease d. customers should be better off e. new products flourish

d.

When Marriott Corporation designs its hotel/motel service at many different price ranges (Residence Inns, Fairfield Inns, Marriott Resort Hotels), it is using what type of strategy? a. undifferentiated strategy b. mass market strategy c. focus strategy d. differentiated strategy

d.