ARE 136 CH 6

52. What is a market niche? a. A small group of consumers with unique needs and who typically are willing to pay a premium to have those needs met b. A large group of heavy users who are loyal to a brand because it provides value at a relatively low price c. A market segment that is served by many firms and is characterized by high levels of competition d. A market segment that is characterized by high sales volumes and low prices

a. A small group of consumers with unique needs and who typically are willing to pay a premium to have those needs met

68. Veda Inc., a manufacturer of cosmetics, offers two product lines, each catering to a distinct segment. Its most popular brand, Alo, targets women who want makeup that will last at least ten hours after application. With its brand Amo the company targets a niche market of women who are looking for makeup with anti-ageing properties. What type of segmentation is Veda Inc. using? a. Benefit segmentation b. Heavy-user-focused segmentation c. Lifestyle segmentation d. Geographic segmentation

a. Benefit segmentation

74. (Scenario 6-1) is a tool more likely employed by Gillette to supplement the use of demographic data by providing information about consumers' activities, interests, and opinions. a. Psychographics b. PRIZM c. STP d. Bass diffusion

a. Psychographics

1. When a brand team defines the target market of consumers for their product, they may also identify many smaller subsets of consumers within their broad market. a. True b. False

a. True

12. If an advertiser sees a large potential segment being served by a competitor with a big budget, it might consider identifying and targeting smaller groups within that large segment. a. True b. False

a. True

16. Haley Inc. is a company that manufactures products for babies and toddlers. It's advertising campaigns have carried various slogans over the years, but they have all revolved around the same thematic core. This is an example of consistent positioning approach. a. True b. False

a. True

21. The basic premise of a positioning strategy must be simple and distinctive if it is to be communicated effectively to the target segment. a. True b. False

a. True

22. A brand's value proposition is a statement of the benefits of the brand that provide value to its target consumers and includes functional, emotional, and self-expressive benefits. a. True b. False

a. True

23. When ad agency professionals are creating a campaign for a huge global retail firm with complex value propositions, in all likelihood, no single ad can be expected to reflect all aspects of the brand's value. a. True b. False

a. True

24. The strategic planning triangle suggested by Thorson and Moore features as its three main aspects the campaign's segments, its value proposition, and its persuasion tools. a. True b. False

a. True

4. If General Mills decides to use the STP framework, it can divide its resources to reach a number of separate and distinct market segments. a. True b. False

a. True

7. Spending advertising dollars to get "switchers" to buy your brand may seem like a good idea, but it often results in only one-time or random purchases. a. True b. False

a. True

45. Why are systems such as PRIZM used widely by advertisers for segmentation? a. because they provide deep segment description b. because they allow for segmentation on the basis of frequency of usage c. because they provide deep insights into consumers' motivations d. because they emphasize the understanding of consumers' activities, interests, and opinions

a. because they provide deep segment description

54. A fast-food restaurant is attempting to position itself as the best choice when you're in a hurry because it serves all customers within 90 seconds. To maintain internal consistency, the firm might take all of the following steps below, EXCEPT for which one? a. expanding on its menu b. adding extra drive-up windows c. hiring more order-takers d. hanging up digital timers behind the counter

a. expanding on its menu

81. (Scenario 6-3) The copy for this campaign features moms and daughters commenting on their close relationships, and Brandweek magazine said that the new Keds ads "really go for the heart." This points to the campaign's focus on a. identifying emotional benefits. b. delivering its promise. c. targeting nonusers. d. using VALS data.

a. identifying emotional benefits.

56. One big plus from a product position that stays consistent over time, like State Farm's "Good Neighbor" campaign, is that it a. is more likely to break through advertising clutter. b. successfully reaches nonusers. c. doesn't need to target a particular segment. d. is easily repositioned.

a. is more likely to break through advertising clutter.

59. A potential downside of a heavy-user-focused segmentation plan is that: a. it can take resources away from those that require persuasion. b. heavy users usually require constant encouragement to keep consuming a product. c. heavy users do not differ significantly from infrequent users in terms of their motivations to consume. d. it shifts focus to emergent consumers who need to be convinced to purchase the product.

a. it can take resources away from those that require persuasion.

32. For most products and services, some users will purchase much more, and more frequently, than others. These consumers are called . a. lead users b. switchers c. emergent consumers d. variety seekers

a. lead users

86. (Scenario 6-4) A small group of customers have mentioned that they would like to browse through several varieties of cactus, so the Garretts have decided to devote a small corner exclusively to rare cacti. These customers constitute an example of a. market niche. b. psychographic segmentation. c. geographic segmentation. d. demographic segmentation.

a. market niche.

28. What is the first step in STP marketing? a. market segmentation b. position strategy c. benefit positioning d. target marketing

a. market segmentation

78. (Scenario 6-2) If Sunshine Meals Inc. begins producing a range of sugar free marmalades to target a small segment of health conscious consumers who would be willing to pay a premium price for products appropriate for their diets, this would be an example of a. niche marketing b. geographic segmentation c. point-of-entry marketing d. geodemographic segmentation

a. niche marketing

87. (Scenario 6-4) The Plantatarium promotes itself in different media using the phrase "An out-of-this-world selection of unique plants." This phrase is a reflection of the firm's a. positioning strategy. b. VALS profile. c. target market. d. demographics.

a. positioning strategy.

25. The process of cutting a market into pieces and focusing on the piece or pieces that make the most sense is termed a. segmentation b. integration c. rationalization d. differentiation

a. segmentation

58. Which of the following forms the final apex of the strategic planning triangle proposed by Esther Thorson and Jeri Moore? a. selection of a mix of persuasion tools b. identification of the target segment c. specification of the brand's value proposition d. division of a market into segments

a. selection of a mix of persuasion tools

73. (Scenario 6-1) It appears that the management at Gillette has performed the fundamental task behind effective segmentation. Gillette has matched what members of different segments want with a. the company's ability to provide it. b. a single appeal. c. a heavy-user-focused campaign. d. a distinct geographic profile.

a. the company's ability to provide it.

10. Psychographic segmentation focuses on the inner mindset of consumers rather than outer aspects of their lives such as activities, interests, and lifestyles. a. True b. False

b. False

11. Today, advertising tends to be used almost exclusively by businesses targeting consumer markets, and only in very rare circumstances by businesses trying to sell products to other businesses. a. True b. False

b. False

13. One drawback of niche marketing is that a company often has to reduce the price of its product due to the smaller volume of sales it can expect. a. True b. False

b. False

14. Any meaningful positioning strategy needs to include several broad elements in its message—including attention getting, variety, flexibility, and complexity. a. True b. False

b. False

15. A gourmet ice cream franchise advertises itself as offering thick, creamy, gooey treats, calling them delectable, desirous, and decadent—the richest and sweetest desserts found anywhere in America. The owner of the local shop buys ads focusing on extended hours and friendly service. This is an example of internal consistency. a. True b. False

b. False

17. When formulating a positioning strategy, a multiple-benefits approach is strongly suggested to satisfy many markets at the same time, because it alerts consumers to a wide array of diverse functions and positive consequences related to the product. a. True b. False

b. False

18. The positioning model from Anne Bahr constitutes the overlapping of the proposition for the brand and persuasion tools. a. True b. False

b. False

19. Bayt Café is launching a new advertising campaign portraying its restaurant as having very fast service and a cheerful staff to target a younger crowd. The campaign alone will be enough to gain the loyalty of the younger segment. a. True b. False

b. False

2. In the world of advertising, markets are positioned, but products are segmented. a. True b. False

b. False

20. LivTo Inc. is a company that manufactures cosmetic products for women. It claims to have the best customer care services and is prompt to address the grievances of its customers. To be internally consistent, the company should invest in a better Research and Development department and also create a new image for its products. a. True b. False

b. False

3. STP marketing includes three factors—identifying, positioning, and informing. a. True b. False

b. False

5. Positioning means to cut your market into pieces and focus on the piece or pieces that make the most sense. a. True b. False

b. False

6. Companies can do well by spending advertising dollars to target nonusers over other user groups, since they offer the highest level of opportunity. a. True b. False

b. False

8. Demographic segmentation is used in selecting target segments by focusing on consumers' descriptors such as their values, beliefs, philosophies, and opinions. a. True b. False

b. False

9. Demographics are rarely used to describe or profile target segments that have already been identified as prospects by other variables. a. True b. False

b. False

34. What is a downside to adopting a heavy-user-focused segmentation plan? a. Heavy users usually form less than one percent of users by volume. b. Heavy users may differ significantly from average or infrequent users in terms of their motivations to consume, their approach to the brand, or their image of the brand. c. Heavy users are a costly target segment and much can be spent in getting their business merely to have it disappear just as quickly as it was won. d. Heavy users have little knowledge of the brand and negligible social influence.

b. Heavy users may differ significantly from average or infrequent users in terms of their motivations to consume, their approach to the brand, or their image of the brand.

57. Which firm did the text highlight as one with a longterm, successful campaign that epitomizes "simplicity" in defining its distinctiveness, a critical ingredient in a good positioning strategy? a. Exedrin b. Jack Daniels c. Nike d. Tylenol

b. Jack Daniels

80. (Scenario 6-3) Which of these segmentation techniques would provide the most insight for Keds's advertising agency in the creation of its advertisements? a. Emergent b. Lifestyle c. Geographic d. Usage pattern

b. Lifestyle

43. Which system has identified 62 market segments based on zip codes and the personal characteristics of their residents, creating a well-known tool for geodemographic segmentation? a. Thorson and Moore's model b. PRIZM c. SIC Codes d. VALS

b. PRIZM

62. What are the three fundamental options that advertisers have when choosing a positioning theme? a. demographic, psychographic, or geographic b. benefit, user, or competitive c. STP, VALS, or SIC d. functional, emotional, or psychological

b. benefit, user, or competitive

49. A firm hires an agency to persuade hairdressers, spas, and hair salons to purchase its line of hair care products, grooming equipment, and professional tools. In this case, the agency is specifically involved in: a. psychographic research. b. business-to-business marketing. c. the competitive field d. lifestyle segmentation.

b. business-to-business marketing.

36. As a segment, variety seekers tend to a. be extremely committed to a brand. b. buy brands based on sales, discount coupons, or other incentives. c. need little encouragement to continue purchasing a brand. d. be unusually enthusiastic and often excessive in their purchasing activities.

b. buy brands based on sales, discount coupons, or other incentives.

72. (Scenario 6-1) According to the information provided here, Gillette has identified market segments along lines. a. benefit b. demographic c. geographic d. usage pattern

b. demographic

53. In Mobil's positioning as the "Friendly Serve" station, it had many good reasons to select the particular target market that it did. But one issue that was NOT a factor was that the segment a. spent the largest amount of money at service stations. b. had the greatest number of consumers in sheer numbers. c. had potential for growth. d. bought extras besides just gas.

b. had the greatest number of consumers in sheer numbers.

75. (Scenario 6-2) The consumers of segment A can be classified as . a. fickle users b. heavy users c. variety users d. competitive users

b. heavy users

60. Thorson and Moore place as the paramount apex in their model. a. specification of the brand's value proposition b. identification and specification of the target segment c. identification of the various persuasion tools that may be deployed as part of the campaigns d. specification of niche segments within larger segments

b. identification and specification of the target segment

67. A powerful value proposition in most situations today includes functional, emotional, and self-expressive benefits, a. though only tangible product benefits are truly emphasized. b. though no single ad can reflect all three aspects. c. all of which must be included in a given advertising campaign. d. though children are excluded because their decision making is controlled by parents.

b. though no single ad can reflect all three aspects.

44. is a term that advertisers created in the mid-1960s to refer to a form of research that emphasizes the understanding of consumers' activities, interests, and opinions. a. Demographics b. Geodemographics c. Psychographics d. Micrographics

c. Psychographics

30. What does the acronym STP mean? a. Sales, Target, Product b. Sell To People c. Segmenting, Targeting, Positioning d. Sell The Product

c. Segmenting, Targeting, Positioning

55. The model shows that a brand's best opportunity for success involves the overlapping of four important factors: current relevance to the consumer, credibility or consumer belief in the brand, differentiation or a recognition of uniqueness, and "stretch" or the potential for consumer relevance over time. a. SWOT analysis b. PEST analysis c. Symantec brand opportunity d. Porter's four corners

c. Symantec brand opportunity

27. What does T stand for in the term STP marketing? a. Tangible b. Technology c. Target d. Territory

c. Target

41. Which of the following is true about the demographic group known as "woopies"? a. They are identified as free spirits in their 20s and 30s who have yet to commit to long-term careers, relationships, lifestyles, or even geographic locations. b. They represent the youngest demographic segment in the U.S. c. They are identified as consumers over 50 years of age. d. They consist of pre-teens and early adolescents, who will have great buying power within a few years.

c. They are identified as consumers over 50 years of age.

85. (Scenario 6-4) The owners of this business have decided to carry a great deal of plants that flower throughout the year because most consumers have said they like them for the cheerful feeling they give. This suggests that The Plantatarium is focusing on what different consumers want from its offerings, that is, segmentation. a. business-to-business b. psychographic c. benefit d. repositioning

c. benefit

51. A major criterion to consider during segment selection is the , or the companies that are vying for that segment's business. a. ad clutter b. business market c. competitive field d. target market

c. competitive field

42. Climate, topography, community size, and national region have been found to make dramatic differences in consumption, including habits involving eating and food preparation, entertainment, and recreation.This is the basis of segmentation. a. psychographic b. commitment-level-based c. geographic d. demographic

c. geographic

90. (Scenario 6-5) Each summer, the MSU Athletic Director looks at the city map, chooses a different local neighborhood, and knocks on doors, encouraging residents to join one of the supporting clubs. He then keeps track of which neighborhoods are the strongest supporters, and which may need more prompting in the future. In this way he is using a segmentation strategy. a. psychographic b. heavy-user-focused c. geographic d. demographic

c. geographic

89. (Scenario 6-5) A group of about 30 students who are roommates and friends of the team members -- many are casual bowlers themselves -- have attended every match for nearly three years. These students would best be described as a. competitive users. b. emergent consumers. c. heavy users. d. variety seekers.

c. heavy users.

91. (Scenario 6-5) With the new plan, the bowling team is attempting to encourage local bowlers and other bowling aficionados to come watch the team in action. This is an example of segmentation. a. emergent b. geographic c. lifestyle d. demographic

c. lifestyle

31. In STP marketing, the term refers to an attempt to give a brand a certain meaning relative to its competitors. a. segmentation b. redistribution c. positioning d. targeting

c. positioning

82. (Scenario 63) The information provided says that Keds was trying to "turn around a longterm slide" in its shoe business, and that "for years, it had depended on its image as the women's nofrills summer shoe." Obviously, things had changed and what Keds needed was a change in its once-successful strategy and identity to meet new market conditions. This change in strategy is called: a. internal consistency. b. self-expressive marketing. c. repositioning. d. business-to-business marketing

c. repositioning.

29. The Folgers team aligned its marketing mix in a design that would represent a particular identity, showcasing certain themes and values, shaped to gain distinctive approval from the just-graduated-20-somethings. This demonstrates the process of a. switching. b. commoditization. c. segmenting. d. singularization.

c. segmenting.

63. The second important apex in Thorson and Moore's strategic planning triangle entails: a. identification and specification of the target segment. b. identification of the various persuasion tools that may be deployed as part of a campaign. c. specification of the brand's value proposition. d. specification of niche markets within a large segment

c. specification of the brand's value proposition.

35. The consumers termed turn out to be a costly target segment; much can be spent in getting their business merely to have it disappear just as quickly as it was won. a. brand freaks b. lead users c. switchers d. heavy users

c. switchers

88. (Scenario 6-5) Based on the planned schedule described here, students who have maintained a 3.9 GPA would be described as one of the bowling team's a. nonuser groups. b. positioning strategies. c. target segments. d. diverse markets.

c. target segments.

66. A brand's is a statement of the functional, emotional, and/or selfexpressive benefits delivered by the brand. a. universal product code b. memorandum of understanding c. value proposition d. warranty

c. value proposition

33. are consumers who are so committed to a brand that their consumer behavior toward it borders on the pathological. a. Emergent consumers b. Variety seekers c. Switchers d. Brand-freaks

d. Brand-freaks

65. Which of the following is true of segment selection? a. The number of heavy users in a segment is usually very large. b. It is enough to assess the size of a segment to select it as a company's target segment. c. Growth potentials for all segments are generally very low. d. Marketers are inclined to devote resources to segments projected for dramatic growth.

d. Marketers are inclined to devote resources to segments projected for dramatic growth.

46. Which company was highlighted in the text because it interviewed 3,000 consumers and created five distinct segments that it could then target in different ways, customizing lifestyle segmentation with a particular focus? a. Estée Lauder b. Folgers c. Mobil d. Pillsbury

d. Pillsbury

76. (Scenario 6-2) Which of the following marketing strategies is more likely to have been used by the company to target segment B users? a. Niche marketing b. Geographic segmentation marketing c. Ambush marketing d. Point-of-entry marketing

d. Point-of-entry marketing

79. (Scenario 63) Instead of "mothers and daughters," why didn't Keds define its target segment simply as "women"? a. This concept already has a number of established companies targeting it. b. This is not based on a realistic approach to segmentation. c. This is based on demographic criteria for which media is difficult to define. d. This is poorly defined and provides no clear orientation or identity.

d. This is poorly defined and provides no clear orientation or identity.

70. (Scenario 6-1) The position for any one market segment should a. also hold an appeal for those outside the segment. b. be identical to positions selected for other segments. c. change occasionally to break through advertising clutter. d. be easily communicated to consumers.

d. be easily communicated to consumers.

92. (Scenario 6-5) In marketing materials created to target fans, the slogan "Two hours of wholesome fun for all ages" is used to attract ticket-buyers. This philosophy is an example of segmentation. a. niche b. demographic c. geodemographic d. benefit

d. benefit

61. A is a core idea that frames an ambition or aspiration for a brand that will be relevant to target audiences over time. a. brand extension b. brand orientation c. brand initial d. brand platform

d. brand platform

64. The American Pork Producers has been running a long-term campaign with the tagline "Pork. The other white meat." This is an example of a. lifestyle segmentation. b. demographic segmentation. c. benefit positioning. d. competitive positioning.

d. competitive positioning.

40. Characteristics and traits such as age, gender, race, marital status, income, education, and occupation are widely used in segmentation. a. geographic b. psychographic c. competitive d. demographic

d. demographic

37. Which segment specifically offers marketers an important opportunity to build future business by luring first-time buyers? a. switchers b. brand-freaks c. lead users d. emergent consumers

d. emergent consumers

38. The one key characteristic that all types of share is that their brand preferences are still under development. a. variety seekers b. brand-freaks c. heavy users d. emergent consumers

d. emergent consumers

71. (Scenario 6-1) The original plan to sell new products to the female market a. cannot be considered an STP effort because Gillette is targeting multiple segments. b. may or may not have been an STP effort, depending on whether Gillette has created sub-segments of these large segments. c. may or may not have been an STP effort, depending on whether all possible segments are being targeted by Gillette. d. fit all the criteria of an STP effort by Gillette.

d. fit all the criteria of an STP effort by Gillette.

48. In recent years skillful marketers have merged information on where people live with the U.S. Census Bureau's demographic data to produce a form of market segmentation known as segmentation. a. demographic b. micrographic c. reprographic d. geodemographic

d. geodemographic

84. (Scenario 6-4) The Plantatarium sends out direct mail offers to consumers in a nearby zip code area who have household incomes of greater than $40,000 a year. This is an illustration of a strategy. a. geographic segmentation b. demographic segmentation c. psychographic segmentation d. geodemographic segmentation

d. geodemographic segmentation

83. (Scenario 6-4) To attract the in the market, the Plantatarium offers a punch card that rewards buyers with a $10 discount each time they purchase $150 worth of plants and other goods from the store. a. emergent consumers b. demographic segment c. variety seekers d. heavy users

d. heavy users

47. As highlighted in the text, "Careful Cooks," "DownHome Stokers," and "Functional Feeders" are all segments identified by Pillsbury based on segmentation. a. geopsychographic b. niche c. repositioned d. lifestyle

d. lifestyle

69. The use of psychographics to focus on differences in consumers' activities, interests, and opinions usually results in segmentation. a. heavy-user-focused b. benefit c. geographic d. lifestyle

d. lifestyle

39. Ultima Inc., a manufacturer of high-end cell phones and laptops, has designed a campaign that specifically targets a group of emergent consumers and aims to persuade them to try its products. This campaign is an example of: a. ambush marketing. b. guerilla marketing. c. heavy-user-focused marketing. d. point-of-entry marketing.

d. point-of-entry marketing.

26. The Folgers brand team looked at the diverse market of all coffee drinkers, then broke it down by age. When the team chose to focus on just-graduated-20-somethings, it was a. benefit positioning. b. positioning. c. targeting. d. segmenting.

d. segmenting.

50. Perhaps the most fundamental criterion in segment selection revolves around what the members of the segment want versus: a. how much they are willing to pay for it. b. whether the segment is currently growing. c. how much they are willing to settle for. d. the organization's ability to provide it.

d. the organization's ability to provide it.

77. (Scenario 6-2) Segment C consumers are more likely to be . a. emergent consumers b. brand freaks c. lead users d. variety seekers

d. variety seekers