Chapter 7 Quiz
BMW says their cars are "The Ultimate Driving Machine". Ford trucks are "Built Ford Tough". Which type of differentiation do these examples represent? A. Image differentiation B. Services differentiation C. Channel differentiation D. Product differentiation E. People differentiation
Product differentiation
Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep monitoring, text notification, and wireless sync to their smart phone. In serving these two very different groups, Fitbit is using __________ segmentation. A. benefits sought B. usage rate C. life-cycle stage D. personality E. demographic
benefits sought
What is positioning? A. A part of a company-driven marketing strategy B. Dividing a market into smaller groups of buyers C. Selecting which segments to enter D. Developing profiles of market segments E. Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Which of the following statements about segmentation is true? A. Segmentation identifies individual buyers that can be targeted with a market offering. B. Market segmentation is part of a company's value proposition. C. Most companies today mass market and do not segment their markets. D. Buyers within a market segment have different needs, characteristics, and behaviors. E. Different segments might require different marketing strategies or mixes.
Different segments might require different marketing strategies or mixes.
There is a growing segment of people who want food that tastes good and is also good for them. This healthy-living segment represents which segmentation base? A. Age B. Usage rate C. Lifestyle D. Geography E. Gender
Lifestyle
Which of the following descriptions best represents targeting a demographic segment? A. Promoting cranberry sauce for the Thanksgiving holiday B. Marketing prepackaged lunches for children C. Marketing athletic clothing for sports enthusiasts D. Rewarding heavy users of a product E. Promoting a smartphone with longer battery life
Marketing prepackaged lunches for children
Which targeting strategy focuses on common consumer needs, as opposed to different needs? A. Individual marketing B. Concentrated marketing C. Mass marketing D. Differentiated marketing E. Local marketing
Mass marketing
What are the three broad targeting strategies used by marketers? A. Differentiated marketing, concentrated marketing, and micromarketing B. Mass marketing, undifferentiated marketing, and micromarketing C. Mass marketing, differentiated marketing, and micromarketing D. Undifferentiated marketing, differentiated marketing, and concentrated marketing E. Mass marketing, differentiated marketing, and concentrated marketing
Mass marketing, differentiated marketing, and micromarketin
Which value proposition is the most difficult to sustain in the long run? A. Less for much less B. More for more C. More for less D. More for the same E. The same for less
More for less
Which of the following statements regarding positioning is correct? A. Once established, a strong position is never lost. B. Positions must adapt over time to meet changing consumer needs. C. Once a positioning strategy is identified, it is typically very easy to implement. D. Abruptly changing a position is an effective strategy when consumer needs change. E. Establishing a position usually takes a very short amount of time.
Positions must adapt over time to meet changing consumer needs.
What is the overall purpose of differentiation? A. To select the segment or segments to enter B. To divide the market into smaller groups of buyers C. To market high quality products D. To create superior customer value E. To allow a firm to offer the lowest prices
To create superior customer value
What are perceptual positioning maps used for? A. To show consumer perceptions of an individual brand on important buying dimensions B. To show consumer perceptions of different brands on important product dimensions C. To compare a company's profitability with the profitability of competitors D. To show consumer perceptions of different brands on a single product dimension E. To find the best retail locations for a brand
To show consumer perceptions of different brands on important product dimensions
When segmenting international markets, markets can be grouped according to language, religion, customs, and values. This type of segmentation is based on __________ factors. A. psychographic B. economic C. demographic D. geographic E. cultural
cultural
If men and women respond similarly to the same marketing mix, they do not constitute distinct, identifiable segments. Gender would not be an effective base for segmentation in this example because the segments are not __________. A. actionable B. accessible C. substantial D. differentiable Your answer is correct. E. measurable
differentiable
When segmenting international markets, marketers often can form segments of consumers who have similar needs and buying behaviors even though they are located in different countries. This is called __________. A. geographic segmentation B. cultural segmentation C. intermarket segmentation D. global segmentation E. intra-market segmentation
intermarket segmentation
Choosing a differentiated targeting strategy has many benefits, but a potential downside is that __________. A. focusing on what is common in consumers can potentially appeal to the largest number of buyers B. offering one marketing mix can limit sales C. the demand for customized products is decreasing D. serving one or a few smaller segments can limit sales E. it can increase costs
it can increase costs
Psychographic segmentation divides buyers into different segments based on __________. A. lifestyle and geography B. age and life-cycle stage C. lifestyle and income D. personality and income E. lifestyle and personality
lifestyle and personality
The full mix of benefits on which a brand is differentiated and positioned is called a(n) __________. A. value proposition B. mission statement C. perceptual map D. positioning statement E. image statement
value proposition
Which base of segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product? A. Demographic B. Psychographic C. Behavioral D. Economic E. Geographic
Behavioral
Which of the following statements regarding concentrated marketing is correct? A. Concentrated marketing is not feasible for small companies. B. Concentrated marketing involves higher-than-normal risks. C. Concentrated marketing targets a small share of a large market. D. Concentrated marketing is generally not a profitable strategy. E. Marketers cannot effectively fine-tune the marketing mix to the needs of a narrow, carefully designed segment.
Concentrated marketing involves higher-than-normal risks.
On the My M&Ms website buyers can place custom orders for M&Ms. They can choose their own colors, put a personalized text message on the candies, and even upload a photo to be placed on each M&M. Which targeting strategy is M&M using for My M&Ms? A. Concentrated marketing B. Local marketing C. Undifferentiated marketing D. Individual marketing E. Differentiated marketing
Individual marketing
A colleague wants to evaluate the attractiveness of a particular market segment. Which of the following would be good advice for your colleague? A. If there are powerful buyers in the segment it will drive prices up. B. Fast growing segments are always attractive. C. Carefully consider the degree of competition and ease of entry into the segment. D. If a segment is larger than others it should always be targeted. E. A segment is attractive if there are substitute products available.
Carefully consider the degree of competition and ease of entry into the segment.
Which of the following statements regarding segmentation is correct? A. Marketers typically use one variable to segment their markets. B. Consumer and business marketers use many similar variables, but business marketers use additional variables to segment their markets. C. As gender roles have changed, gender is no longer a useful form of segmentation. D. The business market is homogenous and is not segmente E. The use of demographics to segment markets has declined in recent years.
Consumer and business marketers use many similar variables, but business marketers use additional variables to segment their markets.
Which of the following statements regarding demographic segmentation is correct? A. Demographic segmentation divides a market based on age, personality, and benefits sought. B. Demographics are rarely used anymore for market segmentation. C. Demographics segmentation uses lifestyle as the primary measure for segmentation. D. Consumer needs, wants, and usage rates vary closely with demographic variables. E. Demographic variables are difficult to measure.
Consumer needs, wants, and usage rates vary closely with demographic variables.
The process of evaluating each market segment's attractiveness and selecting one or more market segments to enter is called __________. A. a customer-driven marketing strategy B. market segmentation C. differentiation D. market targeting E. positioning
market targeting