Marketing Chapter 7 Test
True
True or False: A market opportunity is an identified market w/ excellent potential based on careful research
False
True or False: Market segmentation doesn't apply to business markets
False
True or False: Successful companies base their positioning strategy decisions solely on the actions of their competitors
True
True or False: Target markets should be selected from the segments that have the greatest potential
True
True or False: The process of gaining competitive market information is called market intelligence.
product user
a claim that the product is "the choice of the busy parent" is an example of positioning by...
market position
the unique image of a product or service in a consumer's mind relative to similar competitive offerings
false
true or false: a market segment must be defined by its demographic characteristics
true
true or false: companies should communicate their expectations about the confidentiality of information to employees, suppliers, and customers
true
true or false: competition forces businesses to offer reasonable prices for the products and services that consumers use
false
true or false: competition limits the variety of products that are available to consumers
false
true or false: each segment of a market presents a viable opportunity for a business
true
true or false: emphasizing qualities such as service, quality, credit, location, guarantees, or a unique image is appropriate for businesses using non-price competition
false
true or false: market segmentation refers to the unique image of a product or service in a consumer's mind relative to similar competitive offerings
Brand name
which of the following isn't a basis for product positioning?
it allows businesses to charge higher prices for products
which of these is not a benefit of competition?
Psychographics
People's interests and values are referred to as...
all of these choices are correct
competition creates products that...
true
true or false: an example of direct competition is Nike and Reebok
false
true or false: marketers don't need to know how consumers are using their products, as long as they are using them
true
true or false: the type of competition a business faces will affect its positioning
false
true or false: there are relatively few benefits consumers derive from competition compared to the benefits businesses receive from increased sales and higher profits
False
True or False: Once consumers have developed a perception of a product, businesses will be unable to change the product's position
market opportunity
an identified market with excellent potential based on careful research
psychographics
people's interests and values
Market opportunity
An identified market w/ excellent potential based on careful research
asking the employees of competitors to share information
Appropriate methods to gain competitive information would include all of the following except...
Mass marketing
Directs a company's marketing mix @ a large and heterogeneous group of consumers
$830,879.20
If the market potential for gasoline sales in one community is $10,385,990 and one convenience store has a market share of 8%, the value of its gasoline sales is...
All of these choices are correct
Making changes in the distribution strategy should be planned carefully because...
Promotion
The competitive marketing mix element that usually receives more attention than others in the mix is...
False
True or False: A successful company's market share should be larger than the market potential
True
True or False: An advantage of promotional strategies is that they can be changed quickly.
True
True or False: Anytime you see an ad comparing one product w/ a well-known competitor's products, you can assume that a competitor positioning strategy is being used
False
True or False: Because it is difficult to determine the source of much of the information on the Internet, it is not a good source of competitive information.
True
True or False: Businesses use marketing information and market research to complete market segmentation
True
True or False: Changes in the business environment can have an impact on the success of a company's positioning strategy
market opportunity
a ______________ is an identified market w/ excellent potential based on careful research
a cereal manufacturer offering coupons
all of the following are examples of nonprice competition except...
mass marketing
directs a company's marketing mix at a large and heterogeneous group of consumers
demographic segmentation
dividing a market into religious affiliations is an example of...
geographic segmentation
dividing consumers into markets based on where they live
product usage segmentation
dividing customers into groups based on how frequently they use a service is an example of...
distinctive
every company wants to make its products...
mass marketing
marketing aimed @ a broad population of consumers is called...
$40,000
the average number of disposable rain ponchos sold in one tourist area during the rainy season is 50,000. you plan to come out w/ a sturdier line of ponchos @ comparable price and capture 20% of the market the first season. the ponchos generally sell for $4 each. your planned market share in dollars is...
all of these choices are correct
the business environment includes...
promotion
the element of the marketing mix designed to support changes in the other elements of the marketing mix is...
true
true or false: a consumer's interest in fitness is an example of a psychographic characteristic
all of these choices are correct
a benefit to consumers as a result of competition is...
close to the consumers' ideal image
a business will do well when consumers perceive the attributes of its product as being...
attribute
a claim that a product will not cause drowsiness is an example of positioning by...
all of these choices are correct
marketing intelligence may be obtained through...
indirect competition
occurs when a business competes with other companies offering products that are not in the same product category but satisfy similar customer needs
benefit segmentation
offering different soaps for consumers w/ dry skin, sensitive skin, and oily skin is an example of...
all of these choices are correct
positioning strategies usually revolve around...
price competition
rivalry among firms on the basis of price and value is called...
superior
the ideal competitive position for a product is when consumers view the company's product attributes as ___________________ when compared to those of competitors
consumer perceptions
the images consumers have of competing goods and services in the marketplace
market segmentation
the process of dividing a large group of consumers into subgroups based on specific characteristics and common important needs
market potential
the total revenue that can be obtained from the market segment
144,000 units
the total sales for a product is $12,000,000 per year. your company is introducing a competing product into that market and expects to capture 12% of the market share. the average price of the product is $10. what is the planned market share in units for your new product?
True
True or False: Consumer perceptions are the images consumers have of competing goods and services in the marketplace
False
True or False: Dividing consumers into markets based on where they live is referred to as demographic segmentation
False
True or False: Each person is part of only one market segment that influences all of his or her purchase decisions
False
True or False: If a company has a marketing mix that meets the needs of its customers, it will not need to gather information on the marketing mixes its competitors use.
False
True or False: If a company lowers its prices, all companies in direct competition will have to lower their prices as well.
True
True or False: If customers prefer the new product of a competitor, it will be difficult to win those customers back.
True
True or False: It would be unethical to obtain and use information that a competitor considers to be private and does not disclose outside of the organization.
True
True or False: Making a product available to consumers in more locations will usually add to the business's costs.
True
True or False: One method of positioning a product is to associate a type of user with the product
True
True or False: Positioning highlights differences between competitors in the mind of the consumer
true
true or false: a publication of a trade or professional association is an example of an information source that a business could use to gain information about competitors
false
true or false: all businesses should avoid using price competition
true
true or false: an example of attribute positioning would be a store emphasizing a convenient location or ample parking in its ads
true
true or false: an example of direct competition would be competition between a bowling alley and a video arcade
false
true or false: businesses that indirectly compete w/ each other will need to use non-price competition
true
true or false: in order to compete effectively w/ other businesses, marketers must create a unique image of their product or service in the consumer's mind
true
true or false: in order to compete effectively, it's important to learn as much as possible about your competitors' marketing strategies
true
true or false: in the U.S. population, the demographic characteristics of education and income are closely linked
false
true or false: in today's economy, price competition must be used w/ direct competitors
false
true or false: indirect competition occurs when two brands of similar products are compared
false
true or false: industry trade shows will not distribute information that can be used competitively against their own members
false
true or false: it's illegal for businesses to use trade shows to gather competitive information
true
true or false: w/ geographic segmentation, the markets may be as large as a country or as small as a zip code
market positition
unique image of a product or service in a consumer's mind relative to similar competitive offerings
