Marketing Exam 2 Chapter 6

1. 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

Concentrated

1. 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? undifferentiated differentiated mass concentrated geographically dispersed

Concentrated

1. 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

Demographic

1. 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. niche micro differentiated mass undifferentiated

Micro

1. 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

More for less

1. A growing number of U.S.-based companies have developed the resources and the will to operate in many foreign companies.

False

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

False

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

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

1. When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely using which type of segmentation? a. age and life cycle b. gender c. behavior d. psychographic e. geographic

Gender

1. 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

Geographic location

1. 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

More for more

1. 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

Image

1. As a business consultant, what type of segmentation would you suggest to marketers of automobiles, boats, financial services, and travel? a. geographic b. gender c. income d. behavioral e. undifferentiated

Income

1. Doral Machinery International forms segments of consumers who have similar needs and buying behavior even though they are located in different countries. What is this form of segmentation called? a. political and legal b. cross-cultural c. effective d. intermarket e. individual

Intermarket

1. 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

Is no single way

1. What competitive positioning strategy can attack a more-for-more strategy by introducing a brand offering with comparable quality but at a lower price? more-for-the-same more-for-less same-for-less less-for-much-less all-or-nothing

More for the same

1. Shampoo marketers rate buyers as light, medium, or heavy product users. This is _____ segmentation. a. user status b. usage rate c. benefit d. behavioral e. psychographic

Usage rate

1. The answer to the customer's question, "Why should I buy your brand?" is found in the ________. quality image customer services value proposition differentiation pricing and promotion structure

Value proposition

1. In spite of problems with marketers targeting children and minorities, most attempts to target these groups provide ________ to target customers. benefits education experience major sales expenses

benefits

1. Which type of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance? services differentiation channel differentiation people differentiation product differentiation price differentiation

channel differentiation

1. A company or store gains a(n) ________ by understanding customer needs better than competitors do and delivering more value. competitive advantage positioning advantage cost advantage efficiency advantage synergy

competitive advantage

1. A product's position is based on important attributes as perceived by _____. a. suppliers b. competitors c. market conditions d. consumers managers

consumers

1. Which group determines a product's position relative to competing products? manufacturers wholesalers retailers consumers suppliers

consumers

1. A brand difference is worth establishing and promoting to the extent that it satisfies all of the criteria except which one? important distinctive divisible affordable noticeable

divisible

1. Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be ________ segmentation. geographic benefit end-use customer image

geographic

1. Today, the low cost of setting up shop ________ makes it even more profitable to serve seemingly miniscule niches. in malls in major cities in mail-order catalogs on the Internet near major competitors far from competitors

on the internet

1. 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

undifferentiated

1. To evaluate the different market segments your company is serving, you would look at all of these factors except which one? segment size segment growth segment structural attractiveness company values company resources

Company values

1.Barney Hopkins has compiled the following list of things that make segments attractive. One of these items should not be on the list. Which item is it? relative power of buyers lack of powerful suppliers to control prices few substitute products competition with superior resources financial resources

Competition with superior resources

1. By studying its less loyal buyers, a company can detect which brands are most _______ with its own. competitive used often overlooked similar complementary

Competitive

1. 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. A and C

A and C

1. 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

Accessible

1. You have discovered that effective programs can be designed for attracting and serving your chosen segments. This segmenting requirement is called ________. accessible measurable reachable actionable differentiable

Actionable

1. A marketer focuses on several commonalities among a group of consumers. This marketer appears to be engaging in ________. a. differentiated marketing b. undifferentiated marketing c. segmented marketing d. mass marketing e. B and D

B and D

1. 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. benefit b. behavioral c. age and life cycle d. psychographic e. demographic

Benefit

1. Why might Procter & Gamble offer 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.

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

1. 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

People

1. 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

Positioning statement

1. As a business consultant, what type of segmentation would you suggest to marketers who cater to people of certain social classes, lifestyles, and personality characteristics? a. behavioral b. gender c. psychographic d. age and life cycle e. geographic

Psychographic

1. Segmenting democrats and republicans is an example of ________. a. psychographic segmentation b. demographic segmentation c. occasion segmentation d. intermarket segmentation e. A and D

Psychographic segmentation

1. Which of the following statements explains 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. C and D

Some 70 year olds require wheelchairs; others play tennis

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

True

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

True

1. 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 differentiated marketing target marketing concentrated marketing micromarketing

undifferentiated marketing

1. 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; unwanted by unimportant to; overlooked by too small; undesirable to unknown by; unwanted by disappointed by; geographically far from

unimportant to; overlooked by

1. Target marketing sometimes generates controversy and concern. Issues usually involve the targeting of ________ consumers with ________ products. elderly; expensive young; appealing vulnerable; marketing vulnerable or disadvantaged; controversial or potentially harmful unexpected; deceptive

vulnerable or disadvantaged; controversial or potentially harmful

1. As marketing manager of Swiss Chalets, a mountain and lakeside resort, you discover that consumers position products and services ________. after marketers put marketing mixes in place generally after consulting friends who use them with or without the help of marketers rather reluctantly based on nearby competitors' positions

with or without the help of marketers

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

False

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

False

1. Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation? gender income occasion usage rate benefits sought

Income

1. Which one of the listed choices is not a positioning task? Identify a set of possible competitive advantages upon which to build a position. Survey frequent uses of the product. Select an overall positioning strategy. Effectively communicate and deliver the chosen position to the market. Selecting the right competitive advantages.

Survey frequent uses of the product

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

True

1. Developing a strong position within several market segments creates more total sales than ________ marketing across all segments. undifferentiated differentiated niche target individual

undifferentiated

1. When competitors use differentiated or concentrated marketing, ________ marketing can be disastrous. differentiated undifferentiated concentrated customized localized

undifferentiated

1. The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation. behavioral psychographic age and life cycle demographic geographic

Behavioral

1. Which difficult to sustain positioning strategy attempts to deliver the "best-of-both"? more-for-the-same more-for-less sttempts to deliver thegactice. compeitive t.ame-for-less more-for-more less-for-much-less

More for less

1. 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 comparatively easy to measure e. are believed to be the most effective starting point

Are comparatively easy to measure

1. Many marketers believe that ________ variables are the best starting point for building marketing segments. a. behavioral b. family size c. gender d. age e. beneficial

Behavioral

1. 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

Benefits; Buying behavior

1. 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. fully e. both A and B

Both A and B

1. Consumer and business marketers use many of the same variables to segment markets. In addition, business marketers use all of the following except which of the following? operating characteristics purchasing approaches situational factors personal characteristics brand personalities

Brand personalities

1. It is considered socially irresponsible when the marketing of adult products spills over into the ________ segment. elderly child animal minority senior

Child

1. 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. gender c. psychographic d. behavioral e. geographic

Demographic

1. When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing. undifferentiated differentiated multi-segmented mass concentrated

Differentiated

1. International Drilling Company segments its foreign markets by their overall level of economic development. This firm segments on what basis? political factors legal factors geographic factors economic factors cultural factors

Economic factors

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

False

1. Behavioral segmentation requires 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

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

False

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

False

1. 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

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

False

1. When a company faces choosing 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.

False

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

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

1. When firms use symbols, colors, or characters to convey their personalities, they are using ________ differentiation. image people company reputation subliminal

Image

1. ByWay Ventures uses a differentiated marketing strategy. The company must weigh ________ against ________ when selecting this strategy. extra research; costs sales analysis; sales increased sales; increased costs geographic segmentation; demographic segmentation attitudes; perceptions

Increased sales; increased costs

1. Cigarette, beer, and fast-food marketers have generated much controversy in recent years by their attempts to target ________. teens the poor inner-city minorities the poor in foreign markets suburban adults

Inner city minorities

1. A segmenting approach that has been around for a long time that can be very effective, ________ tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores. micromarketing differentiated marketing niche marketing local marketing individual marketing

Local Marketing

1. 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

Local Marketing

1. Which of the following is the narrowest strategy? a. segmented strategy b. local marketing c. differentiated marketing d. mass marketing e. undifferentiated marketing

Local marketing

1. Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ________. user status loyalty status store type brand preference usage rate

Loyalty status

1. What are the four steps (in order) to target marketing? 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

Market segmentation, targeting, differentiation, and positioning

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

Market targeting

1. 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 ________. one-to-one marketing mass marketing mass customizing differentiated marketing localization

Mass customizing

1. Many firms make an effort to identify smaller, better-defined target groups by using ________. user rates loyalty segmentation multiple segmentation bases positioning mass marketing

Multiple segmentation bases

1. 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? behavioral psychographic occasion impulse emergency

Occasion

1. In general, a company should enter only segments in which it can ________ and ________. offer lower prices; ship faster offer superior value; gain advantages over competitors offer superior value; ship faster gain advantages over competitors; differentiate its products identify behaviors; understand spending power

Offer superior value; gain advantages over competitors

1. 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

Positioning statement

1. 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? mission statement vision statement differentiation statement positioning statement statement of intent

Positioning statement

1. When choosing a target marketing strategy, many factors need to be considered. Which of the following does your text not mention as important? company resources degree of product variability product life-cycle stage product cost competitors' marketing strategies

Product cost

1. The move toward individual marketing mirrors the trend in consumer ________. self-imaging self-marketing customizing tastes self-conceptualization

Self marketing

1. 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. discrimination

Stereotyping

1. When a market segment is large or profitable enough to serve, it is termed ________. a. measurable b. accessible c. substantial d. actionable e. differentiable

Substantial

1. Which of the following is not a drawback of local marketing? It can drive up manufacturing costs. It can drive up marketing costs by reducing economies of scale. It can create logistics problems. A brand's overall image might be diluted through too much variation. Supporting technologies are expensive.

Supporting technologies are expensive

1. 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) ________. market segment target market well-defined market differentiated market undifferentiated market

Target market

1. You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand is positioned. This full positioning is called ________. the brand's value proposition target marketing capturing the consumers' attention value profiling differentiated marketing

The brands value proposition

1. Once it has chosen a position, a company must take strong steps to deliver and communicate the desired position to target consumers. Which step is not correct? The company's marketing mix efforts must support the positioning strategy. Positioning the company calls for concrete action, not just talk. Designing the marketing mix involves working out the strategic details of the positioning strategy. The company's service personnel must be highly trained and provide superior service. The company must deliver the position first.

The companys service personnel must be highly trained and provide superior service

1. 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

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

True

1. 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

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

True

1. 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

1. Karyn Caudill, marketing director for a major hospital in Houston, Texas, sees the growing number of ethnic groups and subcultures in her area. She has discovered that for market segments to be useful they must be measurable, accessible, substantial, differentiable, and actionable.

True

1. 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

1. 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

1. 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

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

True

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

True

1. 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

1. 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 product unique services practice unique sales pitch unique selling proposition universally strategic practice

Unique selling proposition

1. Markets can be segmented into group of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called ________. user status usage rate benefit behavior loyalty status

User status

1. Under what circumstances can local marketing be quite effective? when pronounced regional differences in demographics present when pronounced local differences in lifestyles are present when pronounced regional and local differences in demographics and lifestyles are present when regional and local differences in demographics and lifestyles are similar all of the above

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

1. 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. generational

age and life cyle

1. Which of the segmenting strategies carries higher-than-average risks in consumer markets? concentrated mass differentiated undifferentiated multiple-segment

concentrated

1. 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

concentrated market

1. 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

greater knowledge of customers needs; special reputation

1. In target marketing, the issue is not really who is targeted, but rather ________ and for ________. why; what how; what why; how long where; how long how; where

how; what

1. Mercedes' strategy of targeting rich consumers with similar needs and buying behaviors who live in different countries is an example of ________. a. intermarket segmentation b. loyalty segmentation c. life-cycle segmentation d. targeting segmentation e. psychographic segmentation

intermarket segmentation

1. With 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; local

large; one or a few niches

1. 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

less for much less

1. "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 lower possible price

lower quality requirements in exchange for a lower price

1. When the size, purchasing power, and profiles of market segments can be determined, they possess the requirement of being ________. measurable accessible substantial actionable differentiable

measurable

1. A company or market offer can be differentiated along the lines of product, image, services, channels, or ________. prices nonprice factors people customer service location

people

1. Which positioning strategy offers consumers a "good deal" by offering equivalent-quality products or services at a lower price? more-for-the-same more-for-less same-for-less less-for-much-less all-or-nothing

same for less