chapter 8 quiz

Division of a market into specific geographic locations based on the demographic makeup of the ZIP code area.

ZIP code segmentation

Management process in which numerous groups, each dedicated to a specific segment, make decisions about their segment.

decentralized decision making

Which of the following is a method of business market segmentation? Select one: a. product/technology b. geographic scope c. buying approach d. company demographics e. all of the other answers are correct

e. all of the other answers are correct

Subgroups of a market are homogeneous. This statement means that subgroups are: Select one: a. made up of heterogeneous buyers. b. made up of many types of buyers. c. made up of buyers who are opposed to a new product. d. made up of sellers who market different products. e. made up of buyers who have similar characteristics.

e. made up of buyers who have similar characteristics.

Division of a market into homogeneous groups with similar needs, wants, values and buying behavior.

Segmentation

Any distinguishing market factor that can vary, such as gender, age or income.

Segmentation variable

Similar to mass marketing, _____ treats all customers the same.

Undifferentiated Marketing

A strategy that views all potential customers as though they are the same.

Undifferentiated marketing

Buyers with similar characteristics.

Homogeneous group

Which of the following is NOT a segmentation variable? Select one: a. zip code b. NAFTA c. age d. income e. lifestyle

b. NAFTA

Buyers with diverse characteristics.

heterogenous group

Division of the market according to such characteristics as gender, family life cycle, household type and income.

Demographic segmentation

___ divides the market into segments based on characteristics such as gender, family life cycle stage, age, income and diversity.

Demographic segmentation

Marketing to each of several segments with a marketing mix strategy matched specifically to its desires and expectations.

Differentiated marketing

___ serves each segment with marketing mix elements matched specifically to its desires and expectations.

Differentiated marketing

A diagram of how consumers in a segment perceive brands based on specific elements they consider important.

Positioning map

____ are marketing approaches and tools used to identify lifestyles based on measures of consumer values, activities, interests, opinions, demographics and other factors.

Psychographics

Making a product appear unique relative to others, whether produced by the same company or the competition, is called: Select one: a. product differentiation. b. concentrated marketing. c. market segmentation. d. mass customization. e. market aggregation.

a. product differentiation.

Method that starts with a single potential customer's characteristics and adds a segment for each new characteristic found in other customers.

build-up segmentation method

Creating an image or perception in the minds of consumers about an organization or its products relative to the competition is called: Select one: a. market sampling. b. focusing. c. demand forecasting. d. positioning. e. targeting.

d. positioning.

Which of the following best explains market segmentation? Select one: a. differentiating an organization or its products relative to the competition b. dividing a market into several smaller groups of buyers with similar characteristics c. selecting certain market segments for marketing emphasis d. attempting to reach most or nearly all consumers with the same marketing approach e. creating a marketing strategy with the same message to all segments

b. dividing a market into several smaller groups of buyers with similar characteristics

Which of the following is NOT a step for positioning? Select one: a. Diagram the most important dimensions on a grid. b. Locate the brand relative to others based on how it is perceived by buyers. c. Identify the attributes or characteristics used by sellers in a segment to understand brands. d. Identify the ideal position for buyers in the segment. e. Develop the marketing mix that supports the positioning strategy selected.

c. Identify the attributes or characteristics used by sellers in a segment to understand brands.

Which of the following is not one of the three stages marketers use to connect with customers: Select one: a. targeting b. positioning c. sampling d. segmentation e. all of the other answers are correct

c. sampling

Management process in which a small group of executives makes all the major decisions for the whole company.

centralized decision making

Focusing the organization's marketing mix strategy on one or only a few of many possible segments.

concentrated marketing

Which of the following would likely be included in a market segment profile? Select one: a. the expected growth rate b. the number of current and potential buyers c. the amount of fixed overhead the segment may provide d. a and b e. a and c

d. a and b

A descriptive characteristic that helps separate potential purchasers into groups is called a: Select one: a. product differentiating variable b. de-ethnicization c. psychographic ethno variable d. segmentation variable e. product purchaser variable

d. segmentation variable

The result of targeting a product heavily associated with one ethnic group to other segments.

de-ethnicization

___ occurs when a product heavily associated with one ethnic group is targeted at other segments.

de-ethnicization

A ____ is a homogeneous group of customers with similar needs, wants, values and buying behavior.

market segment

A homogeneous group with similar needs, wants, values and buying behavior.

market segment

Information about a market segment and the amount of opportunity it represents.

market segment profile

A ___ is any descriptive characteristic that helps separate potential purchasers into groups.

segmentation variable

A very small market segment that most companies ignore because they fail to see any opportunity.

niche

Creating an image or perception in the minds of consumers about the organization or its products relative to the competition.

positioning

__ is the creation of an image, reputation or perception in the minds of consumers about the organization or its products relative to competition.

positioning

____ makes a product appear unique relative to others, whether produced by the same company or the competition.

product differentiation

A marketing strategy with which companies attempt to make their products appear unique relative to the competition.

product differentiations

The characteristics consumers associate with a brand based on important attributes.

product position

Marketing approaches and tools used to identify lifestyles based on measures of consumers' values, activities, interests, opinions, demographics and other factors.

psychographics

Method that starts with a set of variables and assigns all consumers to one of them.

take-down segmentation method

Because it would be difficult to appeal successfully to each segment, companies select certain ones that they think will be most profitable for their marketing efforts. This is called ___ .

target marketing

The selection of specific homogeneous groups (segment) of potential customers for emphasis.

target marketing

The number of market segments and the relative amount of resources targeted at each.

target strategy