Chapter 6

Among the generations used for segmentation, one stands out as the largest and most affluent of all the generations. This generation is known as _____.

Baby boomer generation

When a supermarket chain sells winter coats, it sends them to stores at different times of the year. Which of the following approaches to geographic segmentation in the United States does this scenario exemplifies?

By climate

Which of the following phases of the process cycle for customer relationship management represents the actual implementation of the customer strategies and programs?

Customer interaction

Katherine was born in 1970. Her parents met at the famous Woodstock music festival. She is most likely to be a member of which of the following generational group?

Generation X

Which of the following questions about market segmentation relates to creation and execution of different marketing strategies to the different submarkets identified?

Is the segment clearly differentiated on one or more important dimensions when communicating the value of the product?Is the segment clearly differentiated on one or more important dimensions when communicating the value of the product?

The data generated from positioning analysis can be used to develop a useful visual tool called a _____, which displays paired attributes to compare consumer perceptions of each competitor's delivery against those attributes.

Perceptual map

Generation X is often referred to as the _____.

baby bust generation

Organizations communicate one or more sources of value to customers in a way that the customer can easily make the connection between his or her needs and wants and what the product has to offer. Execution of this approach is referred to as a firm's _____.

positioning strategy

At one time, specialized companies catered to markets segmented by race. Today _____.

the segments have become targets of mainstream businesses that offer specialized products

Marketers use geographic segmentation when _____.

there is evidence that consumers respond differently to marketing strategies and programs based on where they live

Advertisements with messages like "Orange juice—It's not just for breakfast anymore!" or "Soup can be a delicious way to start a cold winter's day" are using _____ segmentation.

usage

American credit card companies would like to offer their services to people in a country in East Africa. However, they are finding it difficult to do so due to language barriers and infrastructure challenges. These issues are related to which of the following questions about market segmentation?

Can the segment be reached in order to deliver the value of the product, and subsequently can it be effectively and efficiently managed?

Which of the following statements is true of repositioning?

It involves understanding the marketing mix approach necessary to change present consumer perceptions of the product.

Which of the following statements is true of income segmentation?

It is usually analyzed in incremental ranges.

Which of the following is one of the basic principles behind segmentation?

The subgroups will be smaller and more homogeneous than the overall market.

Firms that develop such close relationships with customers that they seem to deliver customized goods and services are engaged in _____ marketing.

one-to-one marketing

NovoTech Inc. is a popular manufacturer of PCs, and most of its revenue is generated by selling PCs to the consumers. However, the company is struggling to extend the brand into other lucrative product lines such as tablets and smartphones. In this scenario, NovoTech is suffering from the error of:

over positioning

Once market segments have been defined and analyzed and target markets have been selected for development, the firm must turn its attention to creating, communicating, delivering, and exchanging offerings that have value to the target markets. This process is known as _____.

positioning

A marketing manager using VALS is interested in _____.

psychographic segmentation

_____ is sometimes also referred to as segmentation by lifestyle or values.

psychographic segmentation

Social class has declined as a method of segmentation as a result of _____.

readily available credit flattening the classes

Sociologists look for defining events such as major economic upheaval, wars, and _____as triggers for generational change.

sociocultural revolution

Concentrated target marketing is often used by _____.

start-up firms to enter a market as a focus player

Customer loyalty is defined as _____.

the degree to which an individual will resist switching from one offering to another

Customer satisfaction is defined as _____.

the level of liking an individual harbors for an offering

HerboCare, a company that sells herbal soaps, has failed to increase its sales, as the consumers could not understand how soaps made by HerboCare were different or better than other herbal soaps available in the market. In this scenario, HerboCare is suffering from the positioning error of _____.

under positioning

In the context of positioning errors, when consumers have only a vague idea about the company and its products, and do not perceive any real differentiation, it is called _____.

under positioning

Companies sometimes pick a one-market strategy. This marketing approach is called _____.

undifferentiated target marketing

_____ segmentation focuses on why people buy what they buy.

Benefits sought

_____ divides customers into groups according to similarities in benefits sought or product usage patterns.

behavioral segmentation

In marketing, differentiation is a concept that means _____.

communicating and delivering value in different ways to different customer groups

In the 1970s, Michelob beer changed its advertising messages frequently and saw sales plummet. Slogans like "Weekends were made for Michelob," "Put a little weekend into your weekday," and "Special times deserve a special beer" had consumers checking their calendars to find the right time to drink a Michelob. Michelob was suffering from the positioning error of _____.

confused positioning

When a company tries to make the product or service significantly easier to obtain than the competition, it is trying to achieve_____.

convenience leadership

Which of the following major objectives of customer relationship management relates to increased individual customer margins, while offering the right products at the right time?

customer profitability

Positioning relies on the communication of one or more sources of value to customers in a way that the customer can easily make the connection between the _____.

customer's needs and wants and what the product has to offer

Differentiated target marketing means _____.

developing different value offerings for different targeted markets

Segmenting means _____.

dividing the market into meaningful smaller markets based upon common characteristics

Everything else being equal, _____ might lead a firm to offer its products based on some anticipated future payoff from the consumer.

educational segmentation

Primary target markets differ from secondary and tertiary target markets by the _____.

expected level of ROI derived from the market

An advergame is a video game that _____.

has been specifically designed to promote a brand

Demographic segmentation is best described as using characteristics of _____ to segment the market.

human populations

When a company tries to constantly develop the "next new thing", it is trying to establish _____.

innovative leadership

Age is a commonly used method of segmentation. Age alone, however, may be dangerous because _____.

lumping older customers into one group is an approach that fails to consider the vast differences in other important variables

A marketing manager using the database called PRIZM is interested in _____ segmentation.A marketing manager using the database called PRIZM is interested in _____ segmentation.

Geodemographic

Which of the following statements is true of geographic segmentation?

In most instances, it is an insufficient criterion in and of itself.

As a segmentation variable, occupation is very closely related to _____, although the two are not perfectly correlated.

Income

The concept of being able to get either secondary and/or primary data on a market being considered for segmentation relates to which of the following questions about marketing?

Is the segment readily identifiable and can it be measured?

_____ recognizes that there may be a number of consistent needs and wants demonstrated by consumers based on what type of job they have.

Occupational Segmentation

Target marketing is the process by which _____.

a company evaluates market segments and decides which ones have the most potential for development