Marketing Lesson 1 Chptr 3

Economic Factors

Rasco Corp. segments its foreign markets based on the income levels of a country's population. In this case, the firm segments its market based on ________.

Usage rate

Shampoo marketers segment buyers as light, medium, or heavy product users. This is an example of ________ segmentation.

less for much less

Stores offering low-quality alternatives to luxury products at low prices most likely follow a ________ positioning strategy.

Benefit

The marketing manager at Frizzles' Eateries targets customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of low-fat, low-calorie meals that appeal to dieters. Frizzles' approach is best referred to as ________ segmentation.

Product Differentiation

Through ________, brands can be differentiated on features, performance, or style and design.

True

Business and consumer marketers use many of the same variables to segment their markets.

False

Demographic variables are generally more difficult to measure than most other types of variables.

Product

Estel, a kitchen-cabinet manufacturer, positions its cabinets as furniture with superior craftsmanship and durability. This is an example of ________ differentiation.

Occassion

Firms that manufacture seasonal products target their consumers primarily through ________ segmentation.

True

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.

More for the same

Using a(n) ________ positioning strategy, companies can attack the more-for-more strategy of another firm by offering a brand of comparable quality at a lower price.

True

When a company chooses a target marketing strategy for a product, its choices are most likely influenced by the product's life-cycle stage.

Differentiated Marketing

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 engaging in ________.

Substantial

When a market segment is large or profitable enough to serve, it is termed ________.

Image

When firms use symbols, colors, or characters to convey their personalities, they are using ________ differentiation.

Differentiable

When market segments are conceptually distinguishable and respond distinctively to various marketing mix elements and programs, they are said to be ________.

Market targeting

the process of evaluating the attractiveness of different market segments and selecting one or more segments to enter.

True

Demographic factors are the most popular bases for segmenting customer groups.

Easier to measure

Demographic variables are the most popular bases for segmenting customer groups because they ________.

True

New communications technologies are likely to eliminate the need for markets to be geographically segmented as clusters of countries.

False

Using a differentiated marketing strategy, a company is likely to design a product and a marketing program that will appeal to the largest number of buyers.

Actionable

When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________.

Demographic

________ factors are the most popular bases for segmenting customer groups.

Local

________ marketing tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores.

Positioning

consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

False

Companies that use income segmentation always target the affluent.

False

Companies today are moving away from target marketing and toward mass marketing.

False

Companies with limited financial and personnel resources should most likely avoid concentrated or niche marketing until their earnings improve.

Positioning statement

Company and brand positioning should be summed up in a ________.

False

A segment is more attractive if it already contains many strong and aggressive competitors.

Affordable Pricing

A successful niche marketing strategy relies on a firm's ________.

True

For market segments to be beneficial for companies, they must be measurable.

Multiple segmentation bases

Gold Class Electricals, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on ________.

More for less

Household Storez, a local retail store, claims to offer better products at lower prices than other retail stores. In this case, the firm's positioning reflects a ________ value proposition.

Geographic location

Pacific Fisheries groups its customers by regions in the U.S., such as Midwest, Northeast, and Southwest. For each region, Pacific Fisheries tailors a different set of advertisements and promotions. Based on which of the following segmentation variables does the firm divide its market?

Demographic

Pediacertain Pet Supplies, a pet-food company, divides the pet market according to the pet owners' gender, occupation, income, and family life cycle. In this case, which of the following variables has the company used for market segmentation?

Gender

ProFem Inc. caters its line of sports apparel exclusively to women. What type of segmentation does the company use?

False

The largest, fastest-growing market segments are generally the most attractive ones for smaller companies.

lower quality for lower price

The less-for-much-less positioning involves meeting consumers' requirements for ________.

Micromarketing

The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________.

Concentrated Marketing

Unlike other car rental agencies that are based in airports to serve travelers, Wheelz-On-Rent has a network of neighborhood offices. The firm strives to serve people who need car rentals for reasons other than vacation, such as when their own cars are being repaired. Wheelz-On-Rent caters to a small share of the large car rental market. From this description, it can be concluded that Wheelz-On-Rent most likely practices ________.

competitors cannot easily copy the difference

A brand difference is said to be preemptive if ________.

True

A company or brand image should convey a product's distinctive benefits and positioning.

It contains powerful suppliers who can control prices

A market segment is less attractive when ________.

False

A market segment with powerful suppliers controlling the prices is more attractive than a segment with less powerful suppliers.

True

A more-for-more market offering not only offers higher quality but also gives prestige to a buyer.

Increased Cost

BritWay Ventures, a leading producer of soft drinks, is considering a differentiated marketing strategy. It is most likely important that the company weighs increased sales against ________ before selecting this strategy.

True

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

Services Differentiation

Companies are likely to gain ________ through speedy, convenient, or careful delivery of products.

True

Even if a segment has the right size and growth and is structurally attractive, a company must consider its own objectives and resources before targeting that segment.

True

Josie's, a gift store with a presence in multiple nations, divides its markets into units of nations, regions, and cities. This is an example of geographic segmentation.

False

LaGrange, a floral boutique, segments its customers into three groups: those who frequently use their services, those who have never used their services, and potential users. This is an example of usage-rate segmentation.

False

Light users are often a small percentage of a company's market but account for a high percentage of total consumption.

Accessible

Market segments that can be effectively reached and served are said to be ________.

True

Marketers must be careful to guard against stereotypes when using age and life-cycle segmentation.

Local marketing

Marketers tailoring brands and promotions to the needs and wants of specific customer groups practice ________.

False

Marketers typically limit their market segmentation analysis to a single variable in order to simplify the process.

Mass Marketing

Marketing the same product to a huge customer base without any customization is referred to as ________.

User status segmentation

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 ________.

Demographic

Senz, an automobile manufacturer, produces low-end vehicles that are targeted toward lower-income consumer groups. Senz most likely segments the consumer market based on ________ variables.

Positioning Statement

Which of the following includes the target segment of a product, the category to which the product belongs, and the product's point of difference from other members in the category?

undifferentiated marketing

Which of the following is an approach where firms target a whole market based on common consumer needs?

market segmentation, market targeting, differentiation, and positioning

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy?

It increases manufacturing costs.

Which of the following is true about local marketing?

They are used to analyze consumer perceptions of a brand versus competing products.

Which of the following is true of perceptual positioning maps?

To simplify the buying process, consumers are likely to position products in their minds.

Which of the following is true of product positioning?

More for less

Which of the following strategies is most likely to be followed by firms that position themselves as caterers of the best products at economical prices?

Channel Differentiation

Which of the following types of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance?

the same for less

Which positioning strategy offers value for consumers by providing the same brands as competitors at a lower price?

Income

Which type of market segmentation is generally used by marketers who sell products for the affluent segments of a population?

True

While designing a customer-driven marketing strategy, marketers are likely to divide the market into smaller segments.

Demographic

Zista, a boutique that caters to the clothing needs of women. Caters to the needs of affluent, middle-aged women, and the other line targets younger professionals and homemakers. Zista most likely segments the consumer market based on ________ variables