Chapter 4

Which of the following tools help marketers focus on a specific target market and provide superior value?

Cluster analysis CRM Segmentation

What are three emotional needs that a customer in an advanced economy might want to satisfy?

Status Appearance Excitement

Grouping customers with similar segmenting dimensions into a single homogeneous segment is known as ______.

clustering

Trying to increase the size of their markets by putting two or more segments together is a typical practice performed by ______.

combiners

The Apple iPhone meets a target market's needs for a simple-to-use and versatile smartphone. By differentiating the iPhone and meeting its target market's needs better than its competition, Apple has built a ______.

competitive advantage

Modern clustering techniques benefit from the use of ______.

computers

The Chicago South Loop Hotel wants to address customers' concern abut parking costs by offering free parking. This is an example of a determining ________.

dimensions

The _________ target market approach requires choosing two or more marketing segments and applying a different marketing mix to each.

multiple

An example of a ______ dimension of a customer wishing to purchase a vehicle would be their ability to drive.

qualifying

Segmenting dimensions that help marketing managers decide whether to include a customer type in a product-market are called ______ dimensions.

qualifying

The "core benefits" required by all consumers in a product-market are identified by the ______ dimensions.

qualifying

What type of segmenting dimensions involves whether a customer can be considered part of a product-market?

qualifying

The process of using a customer database to refine marketing efforts is known as customer _____ management.

relationship

According to the product-market definition, a customer type refers to _____.

the expected end user of a product, regardless of who purchases the product

Within a generic market, sellers must focus on _____.

the needs of customers

Which of the following might be revealed by clustering techniques?

Attitudes toward the product Demographic characteristics Past buying behavior

Which of the following are general categories of segmenting dimensions in consumer markets?

Behavioral Geographic Demographic

Which of the following are qualities of "good" market segments?

Customers in different market segments have significant differences in characteristics and responses to marketing mix variables. The market segment is broad enough to be profitable for the firm. The dimensions used to define the marketing segment help identify potential customers and effective marketing mix variables. Customers within a market segment have similar characteristics and responses to marketing mix variables.

Which of the following are marketing processes used by combiners?

Developing a marketing mix that appeals fairly well to customers across multiple submarkets Grouping similar customers across multiple submarkets into a single target market

True or false: Generic markets focus primarily on product type.

False

True or false: It is usually safer for marketers to try to satisfy many customers fairly well.

False

True or false: The determining dimension helps marketers to understand the "core benefits" required by consumers in a product-market.

False

True or false: Within a broad product-market, there is only one way to develop market-oriented strategies.

False

Jenna's company exports tea to various markets around the world. In the past six months, the company has focused on developing new flavors and was surprised to learn that a competitor gained market share by expanding into four new foreign countries. Which part of a product-market did Jenna's company fail to take into account?

Geographic area

What is the primary disadvantage of the production-oriented marketing approach?

It leads to missed opportunities by ignoring customers.

The way in which customers think about brands in a market is called

Positioning

Which of the following is not considered a possible segmenting dimension for consumer markets?

Production facilities

Cultural differences that may complicate the segmenting process include which of the following?

Race Customs Religion

Which of the following steps is commonly added to the segmentation process by international firms?

Segment by country or region

The market segmentation process consists of which of the following?

Segmenting broad product markets into select target markets Naming broad product markets

Which of the following are ethical issues that may arise when selecting segmenting dimensions?

Targeting the disadvantaged with expensive goods Marketing infant formula to less-developed countries Marketing unhealthy foods to kids

Which of the following do production-oriented managers do?

They miss opportunities by ignoring the market. They focus on the products they sell.

With regard to the target market, which of the following must marketing-oriented managers do?

They must focus on specific target markets.

Which of the following is the intended goal of focusing on a specific target market?

To offer superior value to the target market

True or false: The first step in effective market segmentation should be to name a broad product-market of interest to the firm

True

Conrad's company wants to understand the reason customers are choosing their competitors products over their products. Which type of question does Conrad need to answer?

Why

Since broad product-markets can have many submarkets, target marketers have ______.

a choice among many possible target markets

In the situation of a consumer purchasing a new automobile, each of the following could be a qualifying dimension except ______.

appearance

The relevant market that a firm has for finding opportunities should be _____ the firm's present product-market.

bigger

To achieve effective market segmentation, markets should first disaggregate the needs of customers. This means the company should _____.

break apart all possible needs into some generic markets

Terms such as generic market and product-market are examples of ______ market definitions that can be useful to firms searching for opportunities.

broad

Greg told the management team that the ideal consumer for the product is a 27-36 year old working mother living in the Midwest. This fictional description of a customer is called a(n) _____.

buyer persona

In international marketing, ______ differences such as language and customs can complicate segmentation efforts.

cultural

A marketing manager attempting to segment a market using two demographic characteristics is likely to fail because ______.

customer behavior cannot be explained using such narrow segmenting criteria

The CRM process relies on a ______ for information.

customer database

Positioning maps are based on ______ to develop a "product space" picture of the market.

customer perceptions

A company typically bases a buyer persona on _____.

customer research

When a company decides to reposition a product, it is doing so in response to _____.

customers who do not view the product in the desired way

A segmenting dimension that influences a customer's decision to purchase a specific brand or product is also known as a(n) _________ dimension.

determining

As noted in the text, when the Chicago South Loop Hotel offered free parking to encourage customers to choose its hotel over others, it was relying on a ______ dimension to attract customers.

determining

In a product market, segmenting dimensions that influence a customer's decision to purchase a specific product are called ______ dimensions.

determining

A firm can better address customers' needs and create a competitive advantage by ______.

differentiating the marketing mix

Marketing unhealthy snack foods to kids is considered a(n) ______ issue that may arise during the segmenting process.

ethical

Segmenters often ______ their marketing mixes for each target market.

fine-tune

A(n) _______ market consists of customers with broadly similar needs and many different options for satisfying them.

generic

Beverage enthusiasts might purchase a wine club membership, buy an espresso machine, or book a trip to Japan to tour green tea plantations. This is an example of a(n) ______ market.

generic

Exercise enthusiasts are a broadly defined market who might purchase an exercise bike, health club membership, or workout apparel to satisfy their needs. This is an an example of what kind of market?

generic

What type of market is one in which potential customers have similar, but not identical, needs and are offered various and diverse ways to satisfy those needs?

generic

When a marketing manager thinks about the needs customers want satisfied, rather than how one product beats another, this marketing manager is looking more broadly at the ______ market.

generic

A market description that does not include any product-type terms is a(n) ______.

generic market description

A complete product-market definition includes product type, customer needs, customer types, and ______.

geographic area

If a firm decides that it will offer its products in the North American market, it has defined the ______ of its marketing strategy.

geographic area

A successful product-market definition will ______.

help to focus and sharpen a firm's marketing strategy define the scope of the market in which the firm will compete

Customers in different market segments are considered ______ when there are significant differences between their segmenting dimensions and responses to marketing mix variables.

heterogeneous

When customers in different segments differ in their response to marketing mix variables, the segments are ______.

heterogeneous

A successful segmenter can develop a customer base that is willing to pay _____ prices because the company provides products that precisely match the needs of the market.

higher

Which of the following are potential benefits to using the segmenter approach?

higher profits reduced competition greater sales

A(n) _____ consists of potential customers with similar needs who are willing to exchange something of value with sellers in order to receive a good or service.

market

Explicitly stating that a firm will market to business customers rather than unaffiliated consumers is an important aspect of a manager's ______ since this clearly establishes the markets in which the firm will compete.

market definition

A group of customers with shared characteristics who are expected to have a similar response to a marketing mix is known as a

market segment

When segmenting an international market, a company should focus on ____ dimensions than a domestic market.

more

A "good" market segment should be _____ in that the segmenting dimensions should be useful for identifying customers and deciding on marketing mix variables

operational

A "good" market segment should be _____ in that the segmenting dimensions should be useful for identifying customers and deciding on marketing mix variables.

operational

Which of the following is not part of a complete product-market definition?

organization type

A weakness of positioning analysis is that it can ______.

overlook customer-related dimensions like needs and attitudes

The most significant factor in determining whether to segment or combine markets is _______

peofit

The segmentation process begins with the idea that ______.

people with certain shared characteristics can be grouped together into a single product-market

How customers think about brands in a market, also known as ______, affects how marketing managers adjust the marketing mix

positioning

In a market where customers consider competitors to be very similar, it is important to understand _________, which refers to how customers feel or think about various brands.

positioning

A group of potential customers with similar requirements who are choosing between a number of closely related products are part of a ______-market.

product

A(n) ______-market consists of customers with very similar needs and sellers offering a number of closely related ways of satisfying those needs.

product

Market segmentation requires that the marketing manager decide which ______ might be useful for marketing mix planning.

product-market dimensions

Ultimately, a firm should consider ______ to determine whether to segment or combine.

profits

A market ______ is a group of customers with similar needs who will have a similar response to a marketing mix.

segment

Marketers that develop a different marketing mix for each homogeneous market segment are known as ______.

segmenters

After a computer clusters groups of people together, marketers look for ______.

segmenting dimensions that apply to everyone in the cluster

Business-to-business markets, with very large customers, can treat customer firms individually as "________ of one."

segments

The multiple target market approach involves ______.

selecting multiple target markets and applying unique marketing mixes to each

The single target market approach involves ______.

selecting one homogeneous market segment as a target market

Positioning issues are especially important to marketers when competitors appear to be very ______.

similar

Market segmentation is different from the naming process in that it focuses on ______ rather than ______ in customer needs.

similarities; differences

Selecting one homogeneous market segment as the firm's target market is called the _______ single , Correct Unavailable target market approach.

single

Selecting one homogeneous market segment as the firm's target market is called the __________ target market approach

single

As a marketer, it is usually safer to try to satisfy the needs of a ______.

small group of customers very well.

Adding an additional step to the marketing segmentation process for international markets aids in identifying regional or national ______ that are fairly similar.

submarkets

Treena told the management team that she didn't think the market segment was big enough and the company would lose profits if they decided to target the segment. Which criteria for a "good" market segment is Treena using to make her decision?

substantial

A highly-personalized marketing approach considers each customer to be ______.

their own individual friends

An ideal product-market description should include ______ customer dimensions plus one product type description.

three

The qualifying and determining dimensions work ______ in marketing strategy planning.

together

The questions that a marketer should ask in order to identify customer similarities and differences include ______.

what why who