Kotler|Armstrong Principles of Marketing Marketing |Chapter 7 Test
Even though several options are available at any one time, there ________ to segment a market.
is no single way
Marketers must be most careful to guard against which of the following when using age and life cycle segmentation?
stereotyping
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 can local marketing be quite effective?
when pronounced regional and local differences in demographics and lifestyles are present
Consumers position products and services ________.
with or without the help of marketers
Which of the following statements illustrates why stereotypes should be avoided when using age and life cycle segmentation? A) Old women love to shop; young women love it more! B) Most 10-year-old boys are mischievous. C) Some 70 year olds use wheelchairs; others play tennis. D) The majority of 20 year olds have to work; the same holds true for 30 and 40 year olds.
C) Some 70 year olds use wheelchairs; others play tennis.
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.
Which of the following is NOT a drawback of local marketing? A) It can drive up manufacturing costs. B) It can drive up marketing costs by reducing economies of scale. C) It can create logistics problems. D) A brand's overall image might be diluted through too much variation. E) Supporting technologies are expensive.
E) Supporting technologies are expensive.
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
A company or store gains a(n) ________ by differentiating its products and delivering more value.
competitive advantage
By studying its less loyal buyers, a company can detect which brands are most ________ its own.
competitive with
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
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
When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely using which type of segmentation?
gender
Using concentrated marketing, the marketer goes after a ________ share of ________.
large; one or a few niches
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
What competitive positioning can attack a more-for-more strategy by introducing a brand offering with comparable quality at a lower price?
more-for-the-same
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
The Jay Group hires better employees than the competition by conducting lengthy searches and interviews. Management also trains employees much better than competitors do. The Jay Group 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 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
Developing a strong position within several segments creates more total sales than ________ marketing across all segments.
undifferentiated
Jolene Enterprises mass produces an all-purpose floor cleaner, mass distributes it and mass promotes it. This firm uses ________ marketing.
undifferentiated
When competitors use differentiated or concentrated marketing, ________ marketing can be disastrous.
undifferentiated
The answer to the customer's question "Why should I buy your brand?" is found in the ________.
value proposition
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
You have discovered that the segments you are targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. 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
International Drilling Company segments its foreign markets by their overall level of economic development. This firm segments on what basis?
economic factors
In target marketing, the issue is not really who is targeted, but rather ________ and for ________.
how; what
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
Demographic variables are so frequently used in market segmentation because they ________.
are easy to measure in comparison to many other methods
Ford Motor Company emphasizes "Quality First, Ford Tough" in its truck products. In doing so, 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
Which of the listed choices is NOT a positioning task? A) identifying a set of possible competitive advantages upon which to build a position B) surveying frequent users of the product C) selecting an overall positioning strategy D) effectively communicating and delivering the chosen position to the market E) selecting the right competitive advantages
B) surveying frequent users of the product
Which of the following is NOT one of the reasons a segment would be less attractive to a company? A) strong competitors B) substitute products C) concentrated market D) power of buyers E) power of suppliers
C) concentrated market
A brand difference is worth establishing and promoting to the extent that it satisfies all of the criteria below EXCEPT which one? A) important B) distinctive C) divisible D) affordable E) noticeable
C) divisible
To evaluate the different market segments your company serves, you would look at all of these factors EXCEPT which one? A) segment size B) segment growth C) segment structural attractiveness D) company values E) company resources
D) company values
Barney Hopkins has compiled a list of things that make segments more attractive. Which one of the following items should NOT be on the list? A) relative power of buyers B) lack of powerful suppliers to control prices C) few substitute products D) competition with superior resources E) financial resources
D) competition with superior resources
Jay Bee Promotions tailors its advertising and promotional services to the needs and preferences of individual customers. Which of the following terms does NOT apply to this type of marketing? A) one-to-one B) customized C) markets-of-one D) concentrated E) mass customization
D) concentrated
When choosing a target marketing strategy, many factors need to be considered. Which of the following does your text NOT mention as important? A) company resources B) degree of product variability C) product life-cycle stage D) product cost E) competitors' marketing strategies
D) product cost
Consumer and business marketers use many of the same variables to segment markets. Business marketers use all of the following EXCEPT ________. A) operating characteristics B) purchasing approaches C) situational factors D) personal characteristics E) brand personalities
E) brand personalities
________ tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores.
Local marketing
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
Many marketers believe that which of the following variables are the best starting point for building marketing segments?
behavioral
The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation.
behavioral
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?
benefit
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; buying behavior
Which type of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance?
channel differentiation
It is considered socially irresponsible when the marketing of adult products spills over into the ________ segment.
child
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 market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more ________ with products and services that match their unique needs
efficiently & effectively
Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be ________ segmentation.
geographic
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
Successful niche marketing relies on a firm's ________ and its ________.
greater knowledge of customers' needs; special reputation
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 62% of market share. 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
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
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
Cheap Heaps Auto specializes in lower quality vehicles, with a few dents, priced a great deal lower than other used cars. Cheap Heaps has chosen to position their products with a ________ strategy.
less-for-much-less
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 marketing strategy? A) segmented strategy B) local marketing C) differentiated marketing D) mass marketing E) undifferentiated marketing
local marketing
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
What are the four steps, in order, to designing a customer-driven marketing strategy?
market segmentation, targeting, differentiation, and positioning
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
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-the-same
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
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
When a business market segment is large or profitable enough to serve, it is termed ________.
substantial
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
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
hampoo 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
