MKT 340 Chap 6

Lilly's, a furniture retailer, sells low-end furniture and accent pieces that are targeted toward lower-income consumer groups. Lilly's most likely segments the consumer market based on _____________ variables.

Demographic

Light users are often a small percentage of a company's market buy account for a high percentage of total consumption. T/F

False

Marketers typically limit their market segmentation analysis to a singe variable in order to simplify the process. T/F

False

P&G was among the first to use ___________ segmentation when it introduced Secret, a deodorant brand specially formulated for women's chemistry.

Gender

Rad, a manufacturer of luxury watches, charges a higher price for its products than its competitors. Despite the high prices, the brand is popular among customers for its quality and service in comparison to cheaper alternatives available in the market. In this case, Rad offers a(n) ________________ value proposition.

More-for-more

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. T/F

True

Smaller companies lack the skills and resources needed to server larger segments. T/F

True

Target and Kohl's have opened smaller-format stores designed to fit the needs of densely packed urban neighborhoods. This is an example of geographic segmentation. T/F

True

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

Undifferentiated marketing

If men and women respond dissimilarly to the marketing efforts for a root beer-flavored malt beverage, they are considered ____________ market segments.

Differentiable

Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called ____________ marketing.

Differentiated

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

Less-for-much-less

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

Local

Which of the following is true of product positioning?

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

New communications technologies like satellite TV and social media are likely to eliminate the need for markets to be geographically segmented as clusters of countries. T/F

True