Principles of Marketing - Chapter 7

The full mix of benefits on which a brand is differentiated and positioned is called​ a(n) __________. A. value proposition B. positioning statement C. image statement D. perceptual map E. mission statement

Answer: A

What is​ positioning? A. Arranging for a market offering to occupy a​ clear, distinctive, and desirable place relative to competing products in the minds of target consumers B. Selecting which segments to enter C. Developing profiles of market segments D. A part of a​ company-driven marketing strategy E. Dividing a market into smaller groups of buyers

Answer: A

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. intermarket segmentation B. ​intra-market segmentation C. geographic segmentation D. cultural segmentation E. global segmentation

Answer: A

When segmenting international​ markets, markets can be grouped according to​ language, religion,​ customs, and values. This type of segmentation is based on​ __________ factors. A. cultural B. psychographic C. demographic D. economic E. geographic

Answer: A

Which base of segmentation divides buyers into segments based on their​ knowledge, attitudes,​ uses, or responses to a​ product? A. Behavioral B. Economic C. Demographic D. Psychographic E. Geographic

Answer: A

Which of the following descriptions best represents targeting a demographic​ segment? A. Marketing prepackaged lunches for children B. Marketing athletic clothing for sports enthusiasts C. Rewarding heavy users of a product D. Promoting a smartphone with longer battery life E. Promoting cranberry sauce for the Thanksgiving holiday

Answer: A

Which of the following statements regarding positioning is​ correct? A. Positions must adapt over time to meet changing consumer needs. B. Abruptly changing a position is an effective strategy when consumer needs change. C. Establishing a position usually takes a very short amount of time. D. Once a positioning strategy is​ identified, it is typically very easy to implement. E. Once​ established, a strong position is never lost.

Answer: A

Which value proposition is the most difficult to sustain in the long​ run? A. More for less B. The same for less C. Less for much less D. More for more E. More for the same

Answer: A

Which of the following statements regarding segmentation is​ correct? A. The use of demographics to segment markets has declined in recent years. 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. Marketers typically use one variable to segment their markets. E. The business market is homogenous and is not segmented

Answer: B

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 a segment is larger than others it should always be targeted. B.A segment is attractive if there are substitute products available. C.Carefully consider the degree of competition and ease of entry into the segment. D.If there are powerful buyers in the segment it will drive prices up. E.Fast growing segments are always attractive.

Answer: C

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. personality B. usage rate C. benefits sought D. ​life-cycle stage E. demographic

Answer: C

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. Undifferentiated marketing B. Differentiated marketing C. Individual marketing D. Local marketing E. Concentrated marketing

Answer: C

The process of evaluating each market​ segment's attractiveness and selecting one or more market segments to enter is called​ __________. A. market segmentation B. positioning C. market targeting D. differentiation E. a​ customer-driven marketing strategy

Answer: C

Which of the following statements regarding concentrated marketing is​ correct? A. Concentrated marketing is not feasible for small companies. B. Concentrated marketing targets a small share of a large market. C. Concentrated marketing involves​ higher-than-normal risks. D. Marketers cannot effectively​ fine-tune the marketing mix to the needs of a​ narrow, carefully designed segment. E. Concentrated marketing is generally not a profitable strategy.

Answer: C

Which of the following statements regarding demographic segmentation is​ correct? A. Demographic variables are difficult to measure. B. Demographics segmentation uses lifestyle as the primary measure for segmentation. C. Consumer​ needs, wants, and usage rates vary closely with demographic variables. D. Demographics are rarely used anymore for market segmentation. E. Demographic segmentation divides a market based on​ age, personality, and benefits sought.

Answer: C

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 E. measurable

Answer: D

Psychographic segmentation divides buyers into different segments based on​ __________. A. lifestyle and income B. personality and income C. lifestyle and geography D. lifestyle and personality E. age and​ life-cycle stage

Answer: D

What are perceptual positioning maps used​ for? A.To show consumer perceptions of different brands on a single product dimension B.To compare a​ company's profitability with the profitability of competitors C.To find the best retail locations for a brand D.To show consumer perceptions of different brands on important buying dimensions E.To show consumer perceptions of an individual brand on important buying dimensions

Answer: D

What are the three broad targeting strategies used by​ marketers? A. Mass​ marketing, differentiated​ marketing, and concentrated marketing B. Undifferentiated​ marketing, differentiated​ marketing, and concentrated marketing C. Mass​ marketing, undifferentiated​ marketing, and micromarketing D. Mass​ marketing, differentiated​ marketing, and micromarketing E. Differentiated​ marketing, concentrated​ marketing, and micromarketing

Answer: D

Which of the following statements about segmentation is​ true? A. Buyers within a market segment have different​ needs, characteristics, and behaviors. B. Market segmentation is part of a​ company's value proposition. C. Most companies today mass market and do not segment their markets. D. Different segments might require different marketing strategies or mixes. E. Segmentation identifies individual buyers that can be targeted with a market offering.

Answer: D

BMW says their cars are​ "The Ultimate Driving​ Machine". Ford trucks are​ "Built Ford​ Tough". Which type of differentiation do these examples​ represent? A. Channel differentiation B. Image differentiation C. People differentiation D. Services differentiation E. Product differentiation

Answer: E

Choosing a differentiated targeting strategy has many​ benefits, but a potential downside is that​ __________. A. the demand for customized products is decreasing B. focusing on what is common in consumers can potentially appeal to the largest number of buyers C. serving one or a few smaller segments can limit sales D. offering one marketing mix can limit sales E. it can increase costs

Answer: E

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.Usage rate B.Age C.Gender D.Geography E.Lifestyle

Answer: E

What is the overall purpose of​ differentiation? A. To allow a firm to offer the lowest prices B. To select the segment or segments to enter C. To market high quality products D. To divide the market into smaller groups of buyers E. To create superior customer value

Answer: E

Which targeting strategy focuses on common consumer​ needs, as opposed to different​ needs? A. Differentiated marketing B. Concentrated marketing C. Local marketing D. Individual marketing E. Mass marketing

Answer: E