Marketing 3310 Test 3 Exam
115) Explain the concept of positioning for competitive advantage.
A product's position is the way the product is defined by consumers on important attributes-the place the product occupies in consumers' minds relative to competing products. Positioning involves implanting the brand's unique benefits and differentiation in customers' minds. To carry out effective positioning, a company must identify a set of possible competitive advantages upon which to build a position, choose the right competitive advantages, and select an overall positioning strategy. The company must then effectively communicate and deliver the chosen position to the market.
13) The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation. A) behavioral B) psychographic C) age and life cycle D) demographic E) geographic
A) behavioral
55) Most attempts to target children and minority groups provide ________ to target customers. A) benefits B) education C) disadvantages D) harm E) expenses
A) benefits
121) 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? A) benefits sought B) user status C) age and life cycle D) psychographic E) demographic
A) benefits sought
15) 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 ________. A) user status B) usage rate C) benefit D) behavior E) loyalty status
A) user status
128) Which of the following is the most logical reason for Procter & Gamble offering products that compete with one another on the same supermarket shelves? A) Different people want a greater selection. B) Different people want different mixes of benefits from the products they buy. C) Procter & Gamble has little competition. D) Retailers request it. E) It creates healthy competition.
B) Different people want different mixes of benefits from the products they buy.
124) 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 ________. A) measurable B) accessible C) substantial D) actionable E) profitable
B) accessible
9) When Burger King targets children, teens, adults, and seniors with different ads and media, it is practicing ________ segmentation. A) geographic B) age and life cycle C) psychographic D) behavioral E) usage rate
B) age and life cycle
62) Which type of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance? A) services differentiation B) channel differentiation C) people differentiation D) product differentiation E) price differentiation
B) channel differentiation
53) It is considered socially irresponsible when the marketing of adult products spills over into the ________ segment. A) elderly B) child C) animal D) minority E) senior
B) child
33) When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing. A) undifferentiated B) differentiated C) individual D) mass E) niche
B) differentiated
11) When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely primarily using which type of segmentation? A) age and life cycle B) gender C) behavior D) psychographic E) geographic
B) gender
56) In target marketing, the issue is not really who is targeted, but rather ________ and for ________. A) why; what B) how; what C) why; how long D) where; how long E) how; where
B) how; what
132) Ford Motor Company emphasizes "Quality first-Ford tough" in its truck products. The company has developed a differentiation strategy based on ________. A) people B) image C) channels D) services E) positioning
B) image
12) Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation? A) gender B) income C) occasion D) usage rate E) benefits sought
B) income
65) 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? A) important B) distinctive C) divisible D) affordable E) preemptive
C) divisible
117) When Pacific Fisheries groups its customers as countries by regions such as Asia, Australia, or New Zealand, it is using which segmenting base? A) economic factors B) political and legal factors C) geographic location D) benefits sought E) demographics
C) geographic location
69) Which positioning strategy offers consumers a "good deal" by offering equivalent-quality products or services at a lower price? A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) all-or-nothing
C) same-for-less
24) When a market segment is large or profitable enough to serve, it is termed ________. A) measurable B) accessible C) substantial D) actionable E) differentiable
C) substantial
67) The answer to the customer's question, "Why should I buy your brand?" is found in the ________. A) quality image B) customer services C) value proposition D) differentiation E) pricing and promotion structure
C) value proposition
8) Demographic variables are so frequently used in market segmentation because they ________. A) create smaller segments B) create more easily reached segments C) do not involve stereotypes D) are easy to measure E) involve fewer attributes to consider
D) are easy to measure
6) 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? A) geographic B) behavioral C) lifestyle D) demographic E) psychographic
D) demographic
26) The market segments your company is targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. Therefore, these segments are ________. A) accessible B) measurable C) reachable D) differentiable E) observable
D) differentiable
21) International Drilling Company segments its foreign markets by the income levels of a country's population. This firm segments on what basis? A) political factors B) legal factors C) geographic factors D) economic factors E) cultural factors
D) economic factors
50) 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
77) T/F 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
79) T/F Demographic segmentation uses different marketing approaches for different time periods of peoples' lives and different family situations.
False
83) T/F 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
84) T/F 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
85) T/F Research about and planning for loyalty status as a segmentation approach is generally not useful or practical for most firms.
False
86) T/F For simplicity's sake, most marketers generally limit their segmentation analysis to one or a few variables.
False
88) T/F Business and consumer marketers use the same set of variables to segment their markets.
False
89) T/F The majority of U.S.-based companies have developed the resources and the will to operate in multiple foreign countries.
False
91) T/F 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
96) T/F Because Cruise Ships International currently has limited financial and personnel resources, it should avoid concentrated or niche marketing until resources are again substantial.
False
99) T/F Mass marketing is becoming the marketing principle for the 21st century.
False
120) 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 ________. A) user status B) usage rate C) benefit D) behavioral E) psychographic
E) psychographic
139) Why must marketers guard against stereotypes when using age and life cycle segmentation?
Not all consumers in the same age and life cycle categories share the same abilities and interests; some 40-year-olds may have more in common with typical 20-year-olds, for example, than with other 40-year-olds.
146) List three variables NOT applicable to the consumer market that may be used to segment business markets.
Operating characteristics, purchasing approaches, situational factors, and personal characteristics can all be used to segment business markets but not consumer markets.
154) Why might a marketer of laundry detergent be interested in viewing a perceptual positioning map?
Perceptual positioning maps show consumer perceptions of a brand versus competing products on important buying dimensions. Laundry detergent, for example, may be placed on a perceptual map based on price and cleaning power; this allows a marketer to view how consumers perceive their product with respect to others' products along those dimensions.
140) What characteristics would interest a marketer who focuses on psychographic segmentation?
Such characteristics include social class, lifestyle, and personality.
147) What assumption about consumers is made by a marketer using intermarket segmentation?
Such marketers assume that segments of consumers have similar needs and buying behavior even though they are located in different countries.
90) T/F 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
92) T/F For market segments to be useful they must be measurable, accessible, substantial, differentiable, and actionable.
True
93) T/F 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
94) T/F 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
95) T/F Developing a stronger position within several segments creates more total sales than undifferentiated marketing across all segments.
True
97) T/F 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
98) T/F 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
customer relationship groups - low potential profitability and long-term projected loyalty cost you more in the long run than they deliver to you
barnacles
145) List three variables that may be used to segment both consumer and business markets.
Variables that apply to both consumer and business markets include geographics, demographics, benefits sought, user status, usage rate, and loyalty status.
customer relationship groups - high potential profitability and short-term projected loyalty profitable, but not much of a relationship, not much brand loyalty
butterflies
four action framework
eliminate those factors that industry think are important that are not - which of the factors that the industry takes for granted should be eliminated? reduce the importance of what industry thinks is important which factors should be reduced well below the industry standard eliminate & remove will cut the cost of the item raise those factors that the industry thinks are not important which factors should be raised well above the industry standard?
customer relationship groups - high potential profitability and long-term projected loyalty who you want to have - develop relationship
true friends
17) By studying its less loyal buyers, a company can detect which brands are most ________ with its own. A) competitive B) used C) often overlooked D) similar E) complementary
A) competitive
60) A company or store gains a(n) ________ by differentiating its products and delivering more value. A) competitive advantage B) positioning advantage C) cost advantage D) efficiency advantage E) synergy
A) competitive advantage
41) Which of the segmenting strategies carries higher-than-average risks in consumer markets? A) concentrated B) mass C) differentiated D) undifferentiated E) multiple-segment
A) concentrated
7) 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? A) demographic B) lifestyle C) psychographic D) behavioral E) geographic
A) demographic
5) Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be ________ segmentation. A) geographic B) benefit C) end-use D) customer E) image
A) geographic
63) When firms use symbols, colors, or characters to convey their personalities, they are using ________ differentiation. A) image B) people C) company D) reputation E) subliminal
A) image
22) Lexus targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________. A) intermarket segmentation B) loyalty segmentation C) life-cycle segmentation D) targeting segmentation E) psychographic segmentation
A) intermarket segmentation
66) 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 ________. A) its value proposition B) target marketing C) capturing the consumers' attention D) value profiling E) differentiated marketing
A) its value proposition
23) When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________. A) measurable B) accessible C) substantial D) actionable E) observable
A) measurable
68) What competitive positioning strategy can attack a more-for-more strategy by introducing a brand offering with comparable quality at a lower price? A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) all-or-nothing
A) more-for-the-same
74) 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." A) positioning statement B) service differentiation C) concentrated segmentation D) competitive advantage E) responsible target marketing
A) positioning statement
119) Segmenting voters as either democrats or republicans is an example of ________. A) psychographic segmentation B) demographic segmentation C) occasion segmentation D) intermarket segmentation E) A and D
A) psychographic segmentation
34) Typically, developing a strong position within several market segments creates more total sales than ________ marketing across all segments. A) undifferentiated B) differentiated C) niche D) target E) individual
A) undifferentiated
32) 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? A) undifferentiated marketing B) differentiated marketing C) target marketing D) concentrated marketing E) micromarketing
A) undifferentiated marketing
4) Even though several options are available at any one time, there ________ to segment a market. A) is one single best way B) is no single way C) is a most effective way D) are limited ways E) are four ways
B) is no single way
44) Which of the following is the narrowest strategy? A) segmented strategy B) local marketing C) differentiated marketing D) mass marketing E) undifferentiated marketing
B) local marketing
70) "Less-for-much-less" positioning involves meeting consumers' ________. A) quality performance requirements at a lower price B) lower quality requirements in exchange for a lower price C) lower quality requirements at the lowest possible price D) high quality requirements at a discounted rate E) high quality requirements at the lowest possible price
B) lower quality requirements in exchange for a lower price
16) Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ________. A) user status B) loyalty status C) store type D) brand preference E) usage rate
B) loyalty status
42) 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. A) niche B) micro C) variable D) mass E) undifferentiated
B) micro
134) When it first opened for business, Home Depot claimed to offer better products at lower prices. This hard-to-sustain value proposition is called ________. A) more-for-the same B) more-for-less C) same-for-less D) more-for-more E) same-for-more
B) more-for-less
72) Which difficult to sustain positioning strategy attempts to deliver the "best-of-both"? A) more-for-the-same B) more-for-less C) same-for-less D) more-for-more E) less-for-much-less
B) more-for-less
133) 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? A) more-for-the-same B) more-for-more C) repositioning D) the-same-for-less E) more-for-less
B) more-for-more
30) In general, a company should enter only segments in which it can ________ and ________. A) offer lower prices; ship faster B) offer superior value; gain advantages over competitors C) offer superior value; ship faster D) gain advantages over competitors; offer new products E) identify behaviors; understand spending power
B) offer superior value; gain advantages over competitors
131) 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? A) image B) people C) services D) product E) channel
B) people
49) The move toward individual marketing mirrors the trend in consumer ________. A) self-imaging B) self-marketing C) customizing D) spending E) self-conceptualization
B) self-marketing
10) Marketers must be careful to guard against ________ when using age and life cycle segmentation. A) underestimating B) stereotyping C) traditional marketing D) cultural bias E) gender bias
B) stereotyping
59) 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 uses 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 uses of the product
31) 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) ________. A) market segment B) target market C) well-defined market D) differentiated market E) undifferentiated market
B) target market
125) Jolene Enterprises mass-produces an all-purpose floor cleaner, mass-distributes it, and mass-promotes it. This firm uses ________ marketing. A) segmented B) undifferentiated C) traditional D) differentiated E) none of the above
B) undifferentiated
51) When competitors use differentiated or concentrated marketing, ________ marketing can be disastrous. A) differentiated B) undifferentiated C) concentrated D) customized E) localized
B) undifferentiated
126) A marketer focuses on several commonalities among all consumers. This marketer appears to be engaging in ________. A) differentiated marketing B) undifferentiated marketing C) segmented marketing D) mass customization E) concentrated marketing
B) undifferentiated marketing
39) Niche marketing offers smaller companies the opportunity to compete by focusing their limited resources on serving niches that may be ________ or ________ larger companies. A) unimportant to; desired by B) unimportant to; overlooked by C) too large; undesirable to D) unknown by; desired by E) disappointed by; geographically far from
B) unimportant to; overlooked by
122) Shampoo marketers rate buyers as light, medium, or heavy product users. This is ________ segmentation. A) user status B) usage rate C) benefits sought D) occasions E) psychographic
B) usage rate
109) Why and how do businesses segment their markets?
By going after segments instead of the whole market, companies have a much better chance to deliver value to customers and to receive maximum rewards for close attention to customer needs. Like consumer groups, business buyers can be segmented using geographic, demographic, benefits sought, user status, usage rate, and loyalty status segmentations. Business buyers are also segmented by the variables of operating characteristics, purchasing approaches, situational factors, and personal characteristics.
1) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________. A) concentrated marketing B) mass marketing C) market targeting D) segmenting E) differentiation
C) Market Targeting
118) 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 require wheelchairs; others play tennis. D) The majority of 20 year olds have to work; the same holds true for 30 and 40 year olds. E) both C and D
C) Some 70 year olds require wheelchairs; others play tennis.
20) As in consumer segmentation, many marketers believe that ________ and ________ segmentation provide the best basis for segmenting business markets. A) geographic; demographic B) user status; user loyalty C) benefits; buying behavior D) age and life-cycle; psychographic E) income; usage rate
C) benefits; buying behavior
29) 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
36) 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? A) lost sales that would have been made with an undifferentiated marketing strategy across all segments B) lost customer loyalty due to lack of brand loyalty C) increased costs for separate marketing plans for each brand D) other suppliers controlling pricing E) lack of resources to succeed in an attractive segment
C) increased costs for separate marketing plans for each brand
35) ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________ against ________ when selecting this strategy. A) extra research; costs B) sales analysis; sales C) increased sales; increased costs D) geographic segmentation; demographic segmentation E) attitudes; perceptions
C) increased sales; increased costs
54) Cigarette, beer, and fast-food marketers have generated much controversy in recent years by their attempts to target ________. A) the elderly B) white-collar workers C) inner-city minorities D) multiple international markets E) suburban adults
C) inner-city minorities
37) Using concentrated marketing, the marketer goes after a ________ share of ________. A) small; a small market B) small; a large market C) large; one or a few niches D) large; the mass market E) moderate; the local market
C) large; one or a few niches
47) When Wal-Mart customizes its merchandise store by store to meet shopper needs, it is practicing ________. A) niche marketing B) psychographic marketing C) local marketing D) social segmentation E) individual marketing
C) local marketing
2) What are the four steps, in order, to designing a customer-driven marketing strategy? A) market segmentation, differentiation, positioning, and targeting B) positioning, market segmentation, mass marketing, and targeting C) market segmentation, targeting, differentiation, and positioning D) market alignment, market segmentation, differentiation, and market positioning E) market recognition, market preference, market targeting, and market insistence
C) market segmentation, targeting, differentiation, and positioning
48) 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 ________. A) concentrated marketing B) mass marketing C) mass customization D) undifferentiated marketing E) localization
C) mass customization
18) Many firms make an effort to identify smaller, better-defined target groups by using ________. A) user rates B) loyalty segmentation C) multiple segmentation bases D) positioning E) mass marketing
C) multiple segmentation bases
14) 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? A) demographic B) psychographic C) occasion D) impulse E) emergency
C) occasion
40) Today, the low cost of setting up shop ________ makes it even more profitable to serve very small niches. A) in malls in major cities B) in mail-order catalogs C) on the Internet D) near major competitors E) far from competitors
C) on the Internet
61) A company or market offer can be differentiated along the lines of product, image, services, channels, or ________. A) prices B) nonprice factors C) people D) customer service E) location
C) people
46) Under what circumstances would local marketing likely be the most effective? A) when pronounced differences in psychographics are present B) when pronounced differences in lifestyles are present C) when pronounced regional and local differences in demographics and lifestyles are present D) when regional demographics and lifestyles are similar E) when pronounced similarities in psychographics are present
C) when pronounced regional and local differences in demographics and lifestyles are present
43) ________ marketing tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores. A) Undifferentiated B) Differentiated C) Niche D) Local E) Variable
D) Local
75) 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? A) The company's marketing mix efforts must support the positioning strategy. B) Positioning the company calls for concrete action, not just talk. C) Designing the marketing mix involves working out the strategic details of the positioning strategy. D) The company's service personnel must be highly trained and provide superior service. E) The company must deliver the position first.
D) The company's service personnel must be highly trained and provide superior service.
25) When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________. A) accessible B) measurable C) reachable D) actionable E) differentiable
D) actionable
27) To evaluate the different market segments your company is serving, you would look at all of the following factors EXCEPT which one? A) segment size B) segment growth C) segment structural attractiveness D) company culture E) company resources
D) company culture
28) Barney Hopkins has compiled a list of things that make segments more attractive. Which 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
127) 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? A) undifferentiated B) differentiated C) mass D) concentrated E) geographically dispersed
D) concentrated
130) 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? A) one-to-one B) customized C) markets-of-one D) concentrated E) mass customization
D) concentrated
57) Which group determines a product's position relative to competing products? A) manufacturers B) wholesalers C) retailers D) consumers E) suppliers
D) consumers
58) A product's position is based on important attributes as perceived by ________. A) suppliers B) competitors C) market conditions D) consumers E) managers
D) consumers
38) It is most accurate to say that successful niche marketing relies on a firm's ________ and its ________. A) marketing strategy; services B) individual relationships with customers; positioning C) superior products; value network partners D) greater knowledge of customers' needs; special reputation E) competitive advantage in comparison to mass-market companies; affordable pricing
D) greater knowledge of customers' needs; special reputation
123) 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. A) political and legal B) cross-cultural C) cultural D) intermarket E) individual
D) intermarket
71) 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. A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) all-or-nothing
D) less-for-much-less
135) 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 ________. A) mission statement B) vision statement C) competitive statement D) positioning statement E) company statement
D) positioning statement
73) 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? A) mission statement B) vision statement C) differentiation statement D) positioning statement E) statement of intent
D) positioning statement
116) 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? A) market segmenting B) mass marketing C) differentiation D) targeting E) positioning
D) targeting
64) Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to it. What does USP stand for? A) unique selling product B) unique services practice C) unique sales pitch D) unique selling proposition E) universally strategic practice
D) unique selling proposition
52) Target marketing sometimes generates controversy and concern. Issues usually involve the targeting of ________ consumers with ________ products. A) elderly; expensive B) young; appealing C) vulnerable; marketing D) vulnerable or disadvantaged; controversial or potentially harmful E) mass market; deceptive
D) vulnerable or disadvantaged; controversial or potentially harmful
138) Why might demographic segmentation be the most common type of segmentation?
Demographic segmentation is often based on observable features, making demographic segmentation easier than other types.
45) 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 not cost-effective.
E) Supporting technologies are not cost-effective.
3) 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. A) efficiently B) effectively C) intensely D) indirectly E) both A and B
E) both A and B
129) 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 ________. A) local marketing B) psychographic segmentation C) micromarketing D) demographic segmentation E) both A and C
E) both A and C
19) Consumer and business marketers use many of the same variables to segment markets. Business marketers use all of the following EXCEPT which one? A) operating characteristics B) purchasing approaches C) situational factors D) personal characteristics E) brand personalities
E) brand personalities
102) T/F 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
104) T/F 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
105) T/F A market rarely exists for products that offer less and therefore cost less.
False
Explain the four major segmenting variables for consumer markets.
Geographic segmentation divides the market into different geographic units, such as nations, regions, states, countries, cities, or neighborhoods. Many companies are localizing their products, advertising, promotion, and sales efforts or are seeking to cultivate as-yet untapped geographic territory. Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. These are the most popular factors because they are easy to measure, and consumer needs, wants, and usage rates often vary closely with demographic variables. Psychographic segmentation, on the other hand, divides buyers into different groups based on social class, lifestyle, or personality characteristics. People in the same demographic group can have very different psychographic makeup. Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product. Many marketers believe that behavior variables are the best starting point for building market segments.
143) What is one way in which a marketer can attract nonloyal consumers?
Marketers can attract nonloyal consumers by putting the brand on sale or by altering price.
106) Explain the four major steps in designing a customer-driven marketing strategy.
The first step is market segmentation: dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors, who might require separate products or marketing mixes. The company identifies different ways to segment the market and develops profiles of the resulting market segments. The second step is market targeting: evaluating each market segment's attractiveness and selecting one or more of the market segments to enter. The third step is differentiation: actually differentiating the firm's market offering to create a superior customer value. Finally, the last step is market positioning: arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of consumers.
111) Briefly describe the five traits of market segments that will help your audience understand your topic.
The size, purchasing power, and profiles of the segments must be measurable. The major problem may be that the segment will be hard to identify and measure. The market segments must be accessible; that is they can be effectively reached and served. The segment must be substantial or large/profitable enough to serve. It should be the largest possible homogeneous group worth pursuing with a tailored marketing program. To be differentiable, the segments need to be conceptually distinguishable and respond differently to different marketing mix elements and programs. Finally, the segment must be actionable, meaning that effective programs can be designed for attracting and serving consumers who make up the segment.
142) Half of a marketer's consumers buy a product because it is "in style"; the other half buy the product because of its superior functionality. What is this type of segmentation called?
This is benefit segmentation.
151) BMW allows customers to design their own vehicle from a set of options at BMW's Web site. What is this called?
This is mass customization.
100) T/F 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
101) T/F Most marketing targeted at children, minorities, or other special segments provides benefits to targeted consumers.
True
103) T/F Consumers position products in their minds in order to simplify the buying process.
True
76) T/F Today, most companies have moved away from mass marketing and are being choosier about the customers with whom they wish to build relationships.
True
78) T/F Bombay Gifts divides its markets into units of nations, regions, and cities. Bombay uses geographic segmentation.
True
80) T/F Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines.
True
81) T/F 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
82) T/F 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
87) T/F 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
Strategy Canvas
a graphical representation of a strategy - it includes the degree of what each competitor offers or invests in each factor and factors that the industry invests and completes also potential areas where customer value could be created
Price Corridor of the Mass
a tool used to help find the right offer price of the new product or service so that it attracts and retains buyers in large numbers - graphical display of the price and volume of alternatives in order to capture the most target buyers
blue ocean strategy
cost triangle at the top pushing value down buyer value pushing up yellow diamond is exceptional utility with price that is accessible to masses
6 utility levers
customer productivity: the innovation helps customers o things faster, better, or in different ways simplicity: the innovation offers enhanced ease-of-use convenience: the innovation makes a desired activity easier to perform risk: the innovation minimizes customers' financial or physical risks fun & image: the innovation delights customers environmental friendliness: the innovation facilitates recycling and other environmentally sensitive practices
customer driven market strategy
marketing concept which is what drives our strategy is an understanding and incorporation of what our potential target market finds they need or want - we will build everything going forward on that relates to sales, production, product
porter's positioning strategies
middle of the road: death notice, trying to be everything for everybody, you'll make no one happy cost leader: focuses efforts on reducing costs of production, distribution, and product development so they can offer their product at a price that is competitive yet allows them to make a target profit (Walmart, JetBlue) growth based on ability to keep costs at a minimum and still make a profit - value lies in pricing differentiation: where you add value and understand your customers needs and wants and build a highly differentiated offering that satisfies those needs and wants and price it accordingly (under armour, caterpillar, delta airlines) people will pay premium to get the value they want focus: could be a value differentiation or something similar but it focuses on small target segments and you are a specialist at delivering value to that segment (FourSeasons, Bose)
marketing mix tools - 4 Ps
product: available to us to build form utility [implicit communication] variety, quality, design, features, brand name, packaging, services price: available for us to build in possession utility [implicit communication] priced too high and no one can get it, priced too low people assume low quality list price, discounts, allowances, payment period, credit terms place: available to provide tarter market with the product where they want it and when [implicit communication] channels, coverage, locations, inventory, transportation, logistics promotion: communication to the target market [explicit communication] advertising, personal selling, sales promotion, public relations
Buyer Utility Map
purchase: how easy it is to find a product, the level of attractiveness and accessibility of the store delivery: the speed and convenience of product delivery use: the amount of training or expert assistance needed to use the product and the ease of storing the product supplements: other products or accessories that are needed to use the product maintenance: ease of maintaining the product disposal: ease of disposal and whether it is environmentally safe or friendly
red ocean vs. blue ocean
red ocean is where all competitors exist - there are different strategies for competing in red ocean blue ocean is where only you exist (one competitor) redefine entire marketplace, product, and price to the point where competition is irrelevant
customer relationship groups - low potential profitability and short-term projected loyalty, little to no brand loyalty
strangers
marketing myopia
the mistake of paying more attention to the specific product than the needs and wants of the market
value proposition
the set of benefits or values a company promises to deliver to consumers to satisfy their needs example: for ______ (target customer) who __________ (statement of the need or opportunity) our (product/service name) is ___________ (product category) that (statement of benefit) states who target market is, what their needs are, & how your product benefits or satisfies them
customer lifetime value
the value of the entire stream of purchases that the customer would make over a lifetime of patronage
