Marketing Test 3

What are the four steps, in order, to designing a customer-driven marketing strategy?

1. Market Segmentation 2. Targeting 3. Differentiation 4. Positioning

When Pacific Fisheries groups its customers as countries by regions such as Asia, Australia, or New Zealand, it is using which segmenting base?

geographic location

The markets you have chosen to serve in four western states can be effectively reached and served. You would tell the marketing manager that these segments are ________.

accessible

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

actionable

When Burger King targets children, teens, adults, and seniors with different ads and media, it is practicing ________ segmentation.

age and life cycle

Demographic variables are so frequently used in market segmentation because they ________.

are easy to measure

The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation.

behavioral

Most attempts to target children and minority groups provide ________ to target customers.

benefits

As in consumer segmentation, many marketers believe that ________ and ________ segmentation provide the best basis for segmenting business markets.

benefits and buying behavior

Your current assignment at York Foods is to find the major benefits people look for in product classes, the kinds of people who look for each benefit, and the major brands that deliver each benefit. What is this segmentation method called?

benefits sought

Consumer and business marketers use many of the same variables to segment markets. Business marketers use all of the following EXCEPT which one?

brand personalities

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

channel differentiaation

It is considered socially irresponsible when the marketing of adult products spills over into the ________ segment.

child

To evaluate the different market segments your company is serving, you would look at all of the following factors EXCEPT which one?

company culture

Barney Hopkins has compiled a list of things that make segments more attractive. Which of the following items should NOT be on the list?

competition with superior resources

By studying its less loyal buyers, a company can detect which brands are most ________ with its own.

competitive

A company or store gains a(n) ________ by differentiating its products and delivering more value.

competitive advantage

Jay Bee Promotions tailors its advertising and promotional services to the needs and preferences of individual customers. Which of the following does NOT apply to this type of marketing?

concentrated

Sanguine Services practices a marketing strategy where its limited resources are used to go after a large share of two small niches. Sanguine practices which one of these strategies?

concentrated

Which of the segmenting strategies carries higher-than-average risks in consumer markets?

concentrated

Which of the following is NOT one of the reasons a segment would be less attractive to a company?

concentrated market

A product's position is based on important attributes as perceived by ________.

consumers

Which group determines a product's position relative to competing products?

consumers

Pendergraff Pet Supplies divides the pet market according to the owners' race, occupation, income, and family life cycle. What type of segmentation does Pendergraff use?

demographic

Through talking to numerous competitors at a regional trade show, you learn that most of them use the most popular base for segmenting markets. What is it?

demographic

Which of the following is the most logical reason for Procter & Gamble offering products that compete with one another on the same supermarket shelves?

different people want different mixes of benefits from the products they buy

The market segments your company is targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. Therefore, these segments are ________.

differentiable

When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing.

differentiated

Not every brand difference is worth establishing and promoting. A difference is worth promoting to the extent that it satisfies all of the criteria EXCEPT which one?

divisible

International Drilling Company segments its foreign markets by the income levels of a country's population. This firm segments on what basis?

economic factors

Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more ________ with products and services that match their unique needs

effectively and effeciently

A market rarely exists for products that offer less and therefore cost less.

false

A product's position is the way the product is defined by the retailers who sell it to target markets. It is how it is defined on important attributes-the place the product occupies in the retailers' minds relative to competing products.

false

Because Cruise Ships International currently has limited financial and personnel resources, it should avoid concentrated or niche marketing until resources are again substantial.

false

Because there is such variation among the economies of countries around the world, it is not practical to segment international markets on the basis of economic factors.

false

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

false

Demographic segmentation uses different marketing approaches for different time periods of peoples' lives and different family situations.

false

For simplicity's sake, most marketers generally limit their segmentation analysis to one or a few variables.

false

LaGrange Florists segments markets into groups of nonusers, ex-users, potential users, first-time users, and regular users of its flowers and services. This firm uses usage rate as the segmentation approach.

false

Mass marketing is becoming the marketing principle for the 21st century.

false

Research about and planning for loyalty status as a segmentation approach is generally not useful or practical for most firms.

false

The majority of U.S.-based companies have developed the resources and the will to operate in multiple foreign countries.

false

User status segmentation involves finding the major advantages or features people look for in the product class, the kinds of people who look for each advantage or feature, and the major brands that deliver each advantage or feature.

false

When Kia offers a new model of car with the same features as a comparable Toyota or Ford and provides a longer warranty, Kia is following a more-for-less strategy.

false

Your company wants to move away from mass marketing and engage in customer-driven marketing. The four steps to take, in order, are market segmentation, marketing positioning, differentiation, and targeting.

false

When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely primarily using which type of segmentation?

gender

Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be ________ segmentation.

geographic

Lexus targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________.

intermarket segmentation

Even though several options are available at any one time, there ________ to segment a market.

is no single way

You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand is differentiated and positioned. This full positioning of the brand is called ________.

its value proposition

Using concentrated marketing, the marketer goes after a ________ share of ________.

large; one or a few niches

Few people can afford the best in everything they buy. At times everyone needs a product with less quality or performance with a correspondingly lower price. In this case, a consumer would purchase a product positioned with a ________ strategy.

less-for-much-less

When Wal-Mart customizes its merchandise store by store to meet shopper needs, it is practicing ________.

local marketing

Which of the following is the narrowest strategy?

local marketing

Many firms make an effort to identify smaller, better-defined target groups by using ________.

multiple segmentation bases

Which type of segmentation centers on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item?

occasion

In general, a company should enter only segments in which it can ________ and ________.

offer superior value; gain advantages over competitors

Today, the low cost of setting up shop ________ makes it even more profitable to serve very small niches.

on the internet

A company or market offer can be differentiated along the lines of product, image, services, channels, or ________.

people

Jaygo Food Stores hires better employees than the competition by conducting lengthy searches and interviews. Management also trains employees much better than competitors. Jaygo has gained a strong competitive advantage through which type of differentiation?

people

Superior Auto Sales, a chain of high-end used car dealerships, wants to sum up its company positioning and brand positioning in a formal way. Superior's management would use a ________.

positioning statement

What is the following an example of? "To busy, mobile professionals who need to always be in the loop, BlackBerry is a wireless connectivity solution that gives you an easier, more reliable way to stay connected to data, people, and resources while on the go."

positioning statement

Which type of statement first states the product's membership in a category and then shows its point-of-difference from other members of the category?

positioning statement

Jolene Enterprises mass-produces an all-purpose floor cleaner, mass-distributes it, and mass-promotes it. This firm uses ________ marketing.

undifferentiated

Typically, developing a strong position within several market segments creates more total sales than ________ marketing across all segments.

undifferentiated

When competitors use differentiated or concentrated marketing, ________ marketing can be disastrous.

undifferentiated

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

Local

It is most accurate to say that successful niche marketing relies on a firm's ________ and its ________.

greater knowledge of customers' needs; special reputation

In target marketing, the issue is not really who is targeted, but rather ________ and for ________.

how; what

Ford Motor Company emphasizes "Quality first-Ford tough" in its truck products. The company has developed a differentiation strategy based on ________.

image

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

image

Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation?

income

Procter & Gamble sells six brands of laundry detergent in the United States, each designed for one of six laundry segments Procter & Gamble has identified. Together, these six brands take four times the market share of Procter & Gamble's nearest competitor. Which of the following is a disadvantage of Procter & Gamble's differentiated marketing strategy?

increased costs for separate marketing plans for each brand

ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________ against ________ when selecting this strategy.

increased sales; increased costs

Cigarette, beer, and fast-food marketers have generated much controversy in recent years by their attempts to target ________.

inner-city minorities

MTV targets the world's teenagers, who have similar needs and buying behavior even though they are located in different countries. This is called ________ segmentation.

intermarket

What competitive positioning strategy can attack a more-for-more strategy by introducing a brand offering with comparable quality at a lower price?

more-for-the-same

Bob and Phyllis Cords own two retail stores, one in Pottstown and one in Norristown. Though the towns are only 40 miles apart, the consumers at both stores are very different demographically. Bob and Phyllis alter the product offerings between both locations in an effort to cater to both demographic groups. This is an example of ________.

local marketing; micromarketing

"Less-for-much-less" positioning involves meeting consumers' ________.

lower quality requirements in exchange for a lower price

Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ________.

loyalty status

When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________.

market targeting

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 following ________.

mass customization

When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________.

measurable

As You Like It, Inc., customizes its offers to each individual consumer. This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________ marketing.

micro

When it first opened for business, Home Depot claimed to offer better products at lower prices. This hard-to-sustain value proposition is called ________.

more-for-less

Which difficult to sustain positioning strategy attempts to deliver the "best-of-both"

more-for-less

Neiman Marcus claims superior quality, performance, and style. The owners provide the most upscale products and services and charge a higher price to cover the higher costs. What type of positioning does Neiman Marcus use?

more-for-more

When choosing a target marketing strategy, many factors need to be considered. Which of the following does your text NOT mention as important?

product cost

At one time Miller Beer was known as the "champagne of bottled beer." Unfortunately, Miller drinkers did not drink much beer. To increase sales, Miller was repositioned to attract the members of the middle working class. This segmentation approach is ________.

psychographic

Segmenting voters as either democrats or republicans is an example of ________.

psychographic segmentation; intermarket segmentation

Which positioning strategy offers consumers a "good deal" by offering equivalent-quality products or services at a lower price?

same-for-less

The move toward individual marketing mirrors the trend in consumer ________.

self-marketing

Which of the following statements illustrates why stereotypes should be avoided when using age and life cycle segmentation?

some 70 year old require wheelchairs; others play tennis

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

stereotyping

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

substantial

Which of the following is NOT a drawback of local marketing?

supporting technologies are not cost-effective

Which of the listed choices is NOT a positioning task?

surveying

The 55-year-old baby boomers share common needs in music and performers. When a music company decides to serve this group, the group is called a(n) ________.

target market

When marketers at Procter & Gamble selected the Millennials, a demographic that includes college students, as an untapped group of potential customers for their Febreze line of products, they were executing which step in the process of designing a customer-driven marketing strategy?

targeting

Once it has chosen a position, a company must take strong steps to deliver and communicate that position to target consumers. Which of the following is NOT necessarily needed for a company to support its positioning strategy?

the company's service personnel must be highly trained and provide superior service

At a recent marketing seminar, the featured speaker stated that a target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. This is a correct definition.

true

Bombay Gifts divides its markets into units of nations, regions, and cities. Bombay uses geographic segmentation.

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.

true

Consumers position products in their minds in order to simplify the buying process.

true

Developing a stronger position within several segments creates more total sales than undifferentiated marketing across all segments.

true

For market segments to be useful they must be measurable, accessible, substantial, differentiable, and actionable.

true

Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

true

In evaluating different market segments, a firm must look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources.

true

Most marketing targeted at children, minorities, or other special segments provides benefits to targeted consumers.

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.

true

Shopping For The Rich and Famous is a buying service that helps wealthy clients find the best buys in exclusive clothing, high-end cars, travel, and financial services. This firm would use income segmentation.

true

There are many exceptions to the geographic segmentation assumption that consumers in nations close to one another will have many common behaviors and traits.

true

Though the use of mass marketing has been widespread in the past 100 years, for centuries consumers were served as individuals as businesses practiced individual marketing.

true

Today, most companies have moved away from mass marketing and are being choosier about the customers with whom they wish to build relationships.

true

When a company chooses a target marketing strategy, its choices are influenced by factors related to company resources, the degree of product variability, and the product's life-cycle stage.

true

Your assignment at work is to divide buyers into different groups based on social class, lifestyle, and personality characteristics. After a planning session with the marketing and sales staff, you issue a memo to upper management recommending psychographic segmentation. You are right on target.

true

A marketer focuses on several commonalities among all consumers. This marketer appears to be engaging in ________.

undifferentiated marketing

Mass marketers, such as Target and Venture Stores, often ignore market segment differences and target the whole market with one offer. What is their approach to segmenting?

undifferentiated marketing

Niche marketing offers smaller companies the opportunity to compete by focusing their limited resources on serving niches that may be ________ or ________ larger companies.

unimportant to; overlooked by

Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to it. What does USP stand for?

unique selling proposition

Shampoo marketers rate buyers as light, medium, or heavy product users. This is ________ segmentation.

usage rate

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 ________.

user status

The answer to the customer's question, "Why should I buy your brand?" is found in the ________.

value proposition

Target marketing sometimes generates controversy and concern. Issues usually involve the targeting of ________ consumers with ________ products.

vulnerable or disadvantaged; controversial or potentially harmful

Under what circumstances would local marketing likely be the most effective?

when pronounced regional and local differences in demographics and lifestyles are present