Chapter 9: Market Segmentation, Targeting, and Positioning

product repositioning

the place a product occupies in a consumer's mind relative to competitive products.

Product positioning

the place a product occupies in consumers' minds based on important attributes relative to competitive products.

Usage rate

the quantity consumed or patronage—store visits—during a specific period. It varies significantly among different customer groups.

Retail store type and usage rate are both variables used to employ __________ segmentation. A)geographic B)behavioral C)demographic D)psychographic E)loyalty

B

A depiction of a __________ for beverages in the minds of adults is a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers. A)perceptual map B)marketing matrix C)growth-share matrix D)hierarchy of needs E)perception matrix

A

The purpose of the five key steps in segmenting and targeting markets is to A)link market needs of customers to the organization's marketing program. B)identify competitors that provide similar products that satisfy a firm's customers' needs. C)provide guidance to reposition a firm's products. D)correlate directly to each of the five environmental forces. E)generate new-product ideas for firms that are not growing in market share.

A

Which of the following is a basis used to segment U.S. organizational markets? A)geographic B)education C)income D)prospects E)psychographic

A

The 80/20 rule is most closely related to which basis of segmentation? A)psychographic B)behavioral C)geographic D)opportunistic E)demographic

B

The process of segmenting a market and selecting specific segments as targets is the link between __________ and the organization's marketing program. A)top-level management B)buyers' or market needs C)government regulations D)controllable environmental factors E)self-regulatory industry standards

B

When expenses are greater than the potential increased sales from market segmentation, a firm should A)combine departments within the company to make the process more streamlined. B)not consider market segmentation at this time. C)discontinue manufacturing any products that are not in the mature stage of their product life cycle. D)seek alternate channels of distribution, including Internet sales. E)reduce production costs or increase prices to facilitate the segmentation process.

B

Which of the following statements regarding when and how to segment markets is most accurate? A)Market segmentation strategies work less than 10 percent of the time. B)If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment. C)Even if a firm finds uniform needs across all users, it should take advantage of the method to avoid falling behind its competitors. D)Market segmentation is only feasible for large corporations; small businesses don't have the resources to engage in the process. E)Governments should not attempt market segmentation because the strategy is only applicable for consumer and organizational markets.

B

______ links market needs to an organization's marketing program. A)Marketing protocol B)Market segmentation C)Marketing mix development D)Product design E)Product selection

B

A component of Prince's ________ strategy is choosing appropriate promotion and distribution strategies to influence the place a product occupies in the consumer's mind. A)targeting B)segmentation C)positioning D)customer service E)market research

C

A cornerstone of Prince's strategy is developing new products that have the features desired by players of differing skill levels. This would be considered ________ segmentation. A)mass market B)demographic C)behavioral D)psychographic E)geographic

C

All of the following are criteria used for forming market segments except which? A)simplicity and cost-effectiveness of assigning potential buyers to segments B)potential of a marketing action to reach a segment C)cost of reaching the segment D)difference of needs of buyers among segments E)potential for increased profit

C

All of the following are included in an ideal positioning statement except which? A)the product category in which the offering competes B)an identification of the target market C)the anticipated or actual retail price of the product D)the needs satisfied by the product E)the offering's unique benefits or attributes

C

Criteria for forming segments involve both similarities and differences. In terms of the needs of buyers, the similarities must be __________ a segment, and the differences must be __________ segments. A)throughout; absent in B)absent in; throughout C)within; among D)between; among E)among; across

C

The purpose of market segmentation is to respond more effectively to the wants of groups of potential buyers in order to A)maintain market share. B)provide the best quality products on the market. C)increase sales and profits. D)assume social responsibility. E)use the firm's resources most efficiently.

C

All of the following are examples of increased customer value from organizational synergy except which? A)improved the quality of existing products B)improved distribution C)lower prices D)increased brand awareness E)more products

D

Four general categories are used to segment consumer markets, one of which is A)supplier segmentation. B)regional segmentation. C)product segmentation. D)behavioral segmentation. E)demand segmentation.

D

Given Prince's multiple-segment strategy and limited marketing budgets, the company would want to create a ________ to help visually estimate the market size of a given product sold to a specific market segment. A)market size grid B)targeting grid C)segmentation grid D)market-product grid E)cost-benefit grid

D

Prince Sports has adopted social media marketing in its promotion strategy because social media like Facebook has a significant impact among younger customers. This is an example of how Prince is using ________ segmentation. A)behavioral B)psychographic C)product usage D)demographic E)geographic

D

Recently, U.S. dairies, struggling to increase milk sales, tried to change the way adults thought about chocolate milk. The dairies wanted to __________ chocolate milk in the minds of adult consumers. A)promote B)segment C)explain D)reposition E)differentiate

D

Which of the following is a criterion used for selecting a target market? A)difference of needs of sellers between segments B)similarity of needs of potential buyers within a segment C)feasibility of a marketing action to reach a segment D)expected market growth E)simplicity and cost of assigning potential buyers to segments

D

A perceptual map enables a manager to see how __________ perceive competing products or brands, as well as the firm's own product or brand. A)independent rating organizations such as Consumer Reports B)stakeholders C)competitors D)the CEO of the firm E)consumers

E

For Prince's profitability and long-term survival, the firm must use a marketing strategy of ________ to ensure that consumers believe that its products have unique and superior attributes when compared to the competition. A)one-to-one marketing B)mass production C)standardization D)cannibalization E)product differentiation

E

Market segmentation stresses __________ and relating them to specific marketing actions. A)aligning tasks to match competitor tactics B)dividing people within a market randomly into equally sized groups C)identifying potential new buyers who are not yet familiar with a new product D)dividing people into the smallest groups possible E)grouping people according to similar needs

E

One marketing action that can be taken to sell a single product or service to multiple market segments is to A)issue stock to fund additional research and development for new products. B)purchase another firm that has additional products that would appeal to multiple markets. C)develop and produce another version of the product. D)manufacture products that appeal to different markets. E)develop separate promotional campaigns.

E

The growth in the popularity of tennis means there are more consumers playing tennis today across many skill levels, incomes, and athletic abilities. Therefore, the ideal segmentation strategy for Prince would be A)mass customization. B)no segmentation. C)segment of one. D)one product/multiple market segments. E)multiple products/multiple market segments.

E

market-product grid

a framework to relate the market segments of potential buyers to products offered or potential marketing actions.

Market Segmentation

aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

product differentiation

involves a firm using different marketing mix actions, such as product features and advertising, to help consumers perceive the product as being different and better than competing products.