Deck 9: Market Segmentation, Targeting, and Positioning

Question 1

KFC is a popular fast food restaurant in North America. It opened its 500th restaurant in China in 2001 and is more popular than McDonald's in that country. One of the reasons is that when the company entered the Chinese market, it recruited its managers from Taiwan and the Chinese communities in the U.S. and Canada. This has been
Useful in coping with local Chinese governments and developing a distinctly different Chinese strategy, which includes Chicky, a friendly chicken character that has a strong appeal for children. To succeed in China, KFC used:

A)product positioning.
B)product differentiation.
C)market sectioning.
D)market segmentation.

Answer 1

B

Question 2

Henry Ford developed his Model T, a car he felt would satisfy the needs of everyone. Ford said, "They can have it in any colour, as long as it's black." His strategy was
Simple: focus in the economies of scale created by mass production. Ford's strategy was also known as a:

A)focused marketing strategy.
B)niche marketing strategy.
C)mass marketing strategy.
D)segmented strategy.

Answer 2

C

Question 3

At a Hallmark store you can find several different brands of greeting cards, including Fresh Ink, Nature's Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cards -
All made by Hallmark for sale in its stores. Hallmark uses a several different market segments.
Strategy to reach

A)usage segmentation
B)product differentiation
C)product extrapolation
D)behavioural segmentation

Answer 3

B

Question 4

Canadian Tourism Commission developed their Explorer Quotient segments to help:

A)better understand their target market.
B)small- and medium-sized businesses.
C)high-end hotels attract more suitable customers.
D)promote tourism in Canada.

Question 5

Alka-Seltzer was made originally as a hangover remedy that cured the headache and settled the stomach. Today you can buy Original Alka-Seltzer, Extra Strength Alka-Seltzer, Alka-Seltzer Morning Relief (for morning headaches and fatigue, and Alka-Seltzer Heartburn Relief). Each Alka-Seltzer product is targeted to a slightly different market segment. The maker of Alka-Seltzer is using:

A)product targeting.
B)product segmentation.
C)market sectioning.
D)product differentiation.

Question 6

The Canadian Tourism Commission identified the segment "Cultural Explorers" who are:

A)well-travelled and well-read.
B)defined by their love of constant travel.
C)quick to embrace good food and pampering.
D)highly social and open-minded.

Question 7

When Procter & Gamble introduced Crest toothpaste, the first fluoride toothpaste, it was intended for use by children and was therefore given a child-appealing bubble gum flavour. Sometime later, the same basic formula was given a fresh, minty flavour to appeal to adults. What is this marketing strategy called?

A)product extrapolation
B)product sampling
C)product differentiation
D)usage segmentation

Question 8

When Comfy Covers Ltd., a BC fiber pillow manufacturer offers firm pillows for side sleepers, medium pillows for back sleepers, and soft pillows for stomach sleepers, what is this marketing strategy called?

A)product sampling
B)product differentiation
C)product extrapolation
D)usage segmentation

Question 9

The process of segmenting a market and selecting specific segments as targets is the link between and the organization's marketing program.

A)various buyers' needs
B)top-level management
C)government regulations
D)self-regulatory industry standards

Question 10

KFC has modified its product to satisfy different market segments. In Holland, the mashed potatoes are replaced with a potato-and-onion croquette, and in Thailand, a customer gets fresh rice with soy or sweet chili sauce with his or her chicken. KFC uses:

A)market sectioning.
B)product differentiation.
C)market segmentation.
D)product positioning.

Question 11

The use of the Explorer Quotient by the Canadian Tourism Commission is to help tourism operators better market their:

A)products
B)locations
C)restaurants
D)activities

Question 12

The process of segmenting a market and selecting specific segments as targets is the link between various buyers' needs and:

A)top-level management.
B)self-regulatory industry standards.
C)government regulations.
D)the organization's marketing program.

Question 13

Some Timex wristwatches can be purchased for less than $30; some Rolex wristwatches carry a price tag of several thousand dollars. In general, consumers view Timex watches as being dependable, relatively accurate, and inexpensive. The Rolex brand tends to be perceived as an expensive status symbol. Timex watches can be purchased in drug stores, discount stores, and department stores in all sizes of
Communities. Rolex watches are distributed more selectively, and are often available only in fine jewellery stores or specialty shops. By using distinctly different pricing
And distribution strategies, the marketers of Timex and Rolex watches have attempted to:

A)use a product differentiation strategy.
B)compete for the same segment.
C)develop similar products.
D)build customer loyalty through direct competition.

Question 14

Whirlpool aggregates prospective customers who are all interested in a low-cost washing machine and respond positively to mail-out marketing material. This process is referred to as:

A)Diversification
B)Market segmentation
C)Divestment
D)Market augmentation

Question 15

To be identified as a market segment, its members must:

A)have different needs and respond similarly to market actions.
B)represent a large share of the entire market and have critical buying power.
C)have common needs and respond similarly to marketing actions.
D)have different needs and have potential for future growth.

Question 16

Canadian Tourism Commission currently targets all of the following market segments, except:

A)Free Spirits
B)Cultural Explorers
C)Hedonistic Travellers
D)Authentic Experiencers

Question 17

The Canadian Tourism Commission identified the segment "Free Spirits" who are:

A)most interested in Canadian travel.
B)into culture and not pampering.
C)highly social and open-minded.
D)well-travelled and open-minded.

Question 18

PepsiCo is assessing whether to launch a brand new type of antioxidant water product. The marketing department has described a selection of the population as: "relatively homogeneous collections of prospective buyers." The marketing department is
Describing what?

A)ultimate consumers
B)market segments
C)demographic clusters
D)organizational buyers

Question 19

Market segmentation involves linking ________ to an organization's _.

A)buyers' needs; marketing program
B)market information; customer databases
C)prospective buyers; marketing mix
D)product benefits; capabilities

Question 20

The Canadian Tourism Commission identified the segment "Authentic Experiencers" who are:

A)interested in the local history and culture.
B)travelling to back-country locales.
C)carefree and fun loving.
D)defined by their love of constant travel.

Question 21

Marketers use market segmentation to each of the following EXCEPT:

A)to link market needs to an organization's marketing program.
B)to develop specific marketing actions related to the 4 Ps.
C)to relate supply to demand in economic terms.
D)exploit economies of scale in order to focus on mass production.

Question 22

What is the most likely way for consumers to benefit because a firm uses a strategy of one product for multiple market segments?

A)increased number of choices
B)lower retail prices because of lower production costs
C)increased satisfaction of consumer wants and needs
D)improved service

Question 23

The segment 'social media followers' are more likely to purchase which product?

A)"President's Choice" Tomato Sauce
B)"No Name" Tomato Sauce
C)"Basic Tomato" Sauce
D)"Entry Brand" Tomato Sauce

Question 24

According to Zinc Research, all of the below are segments of Canadian social media users, except:

A)Chat, Chill, and Connect
B)Online/Real time
C)Samplers & Creepers
D)Suits & Strategy

Question 25

Verve creates high-end personalized iPhone cases that use diamonds, gold, and platinum that appeal to very wealthy individuals. Which is their likely segment strategy?

A)Mass customization.
B)Economies of scope.
C)Mass marketing.
D)Economies of scale.

Question 26

Firms offer different variations of the same basic product or service to both, high-end and low-end segments. Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22. This is an example of:

A)one product and multiple market segments.
B)two-tier marketing strategy.
C)price discrimination.
D)mass customization.

Question 27

Heinz Ketchup sells their traditional 'Red Ketchup' product in three market segments. One of the advantages of this strategy is is avoided.

A)creating a service gap
B)strategic planning
C)the extra cost of developing and producing additional versions of the product
D)indirect distribution and logistics problems

Question 28

Which two aspects does a market-product grid relate?

A)Total anticipated profit for each product to segments.
B)The segments of a market to products offered or potential marketing actions by the firm.
C)Total anticipated revenue for each product to market segments.
D)Estimated expenses for products sold to various market segments.

Question 29

Kellogg's different types of cereals, each targeted at a different type of user, are an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it serves customers' needs better, doesn't reduce quality or increase price, and:

A)conforms to all union regulations.
B)reduces the number of employees required.
C)adds to the manufacturer's sales revenues and profits.
D)decreases the cost of the physical plant.

Question 30

When compared to a multiple-products-multiple-market segments strategy, a one-product-and-multiple-market-segment strategy:

A)is much more profitable.
B)is a much more effective means of meeting consumers' individual needs.
C)creates greater economies of scale (cost savings)in manufacturing costs.
D)is a more effective way of meeting organizational objectives.

Question 31

Which of the following is an example of a single product with multiple market segments?

A)Kellogg's and Post both make bran cereals with raisins.
B)Reach Toothbrush makes several versions of its toothbrush, which are available in a soft, medium, and hard bristle and a short or normal length head.
C)Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.
D)Reebok shoes makes tennis shoes, running shoes, walking shoes, and Weeboks.

Question 32

Small athletic shoe manufacturers such as Vans and New Balance have targeted niche markets and made shoes designed to satisfy needs of different customers. This strategy is an example of:

A)synergy.
B)market segmentation.
C)mass customization.
D)MSA and NAICS.

Question 33

Market segmentation is only a means to an end. In economist's terms, market segmentation relates supply (the organization's actions)to demand ( ).

A)tactical goals
B)customer needs
C)government regulations
D)strategic objectives

Question 34

Individual movies, magazines, and books are frequently directed to two or more distinct market segments. This is an example of:

A)mass marketing.
B)mass customization.
C)multiple products and multiple market segments.
D)one product and multiple market segments.

Question 35

At a board meeting, the Chief Marketing Officer for Procter & Gamble provides a graphical figure that relates market segments to products offered. This graphical figure is likely a(n):

A)market-product grid
B)product differentiation table
C)payoff table
D)growth-share matrix

Question 36

Market segmentation is only a means to an end. In economist's terms, it relates supply ( )to demand (the customer needs).

A)government regulations
B)strategic objectives
C)self-regulatory industry standards
D)the organization's actions

Question 37

A business firm segments its markets when this strategy increases its sales revenue, profit, and ROI. When its increases in expenses more than offset the potentially increased revenues from segmentation, it should:

A)terminate as many employees as possible to save money.
B)not attempt to segment its market any further.
C)reduce production costs, which will lower quality.
D)act as its own distributor.

Question 38

A new health food store is being built downtown Toronto. To build a solid customer base, they are asking consumers to discuss online important issues about healthy living and health food. Which segment will be likely purchasers of products from the new store?

A)Chat, Chill, and Connect
B)Suits & Strategy
C)Online/Real time
D)Samplers & Lurkers

Question 39

After launching a brand new, high-end road bicycle to a specific segment interested in road races and triathlons, the company needs to determine whether they properly segmented their market. Which of the below results is likely indicative of success?

A)increase in customer inquiries, but no purchases.
B)increased sales and profitability.
C)increased confusion from prospective buyers.
D)increase in competition.

Question 40

One advantage of a market-product grid is that it can be used to:

A)relate likely sales of products to prospective market segments.
B)make optimal decisions under conditions of uncertainty.
C)select representative samples of consumers for marketing research studies.
D)screen many new product ideas in order to select the one with the best long-run market potential.

Question 41

Paris Miki enables customers to help design their own eyeglasses, using a system that eliminates the need to try on countless pairs of eyeglasses to find the right one. This is an example of:

A)synergy.
B)mass customization.
C)how the 80/20 rule is implemented.
D)target marketing.

Question 42

Which social media segment is likely to purchase Herbal Essences Mango Mania hair conditioner?

A)Online/Real time
B)Chat, Chill, Connect
C)Suits & Strategy
D)Samplers & Creepers

Question 43

Model E is a new type of car manufacturer that relies on the Internet to build new car designs from prototypes to marketable vehicles much faster than ever before. "Think of Model E as the Dell of the auto industry, designing products based on what consumers truly want and leveraging best-in-class components and micro-factory approaches for rapid design, launch, and direct delivery," said William Santana Li,
President and CEO of Model E. From this quote, you should recognize that Model E relies on:

A)perceptual mapping.
B)build-to-order (BTO).
C)repositioning.
D)a one-product, one-market-segment strategy.

Question 44

A new local coffee shop has noticed that in town there is a Tim Horton's, McDonald's, and Starbucks all competing for individual's daily coffee purchase. They conduct a survey of area residents who enter each one of these stores and learn that 85% desire an organic, fair-trade option. As the local coffee shop is just initiating the segmentation and targeting process, what has the local coffee shop just completed?

A)Recognized a need.
B)Formed prospective buyers into groups.
C)Estimated size of the overall market.
D)Created product groupings.

Question 45

The Sporting News Baseball Yearbook is an annual magazine that uses 16 different covers. Each cover features a baseball star from the region where he is most popular in the United States. This is a great example of a:

A)multiple products and multiple market segments.
B)segmenting organizational markets.
C)interest-based segmentation.
D)one product and multiple market segments.

Question 46

By Terry is a company that caters to the very affluent consumer who desires complete personalization. This Paris-based boutique will use your DNA and planetary alignment to customize your very own lipstick. The lipstick is designed and created solely for you. But it will cost you US$1,200. This is an extreme example of:

A)ultra-customization
B)product extrapolation
C)product sampling
D)usage segmentation

Question 47

Many Canadian magazines produce separate editions usually targeting unique geographic and demographic segments using a special mix of editorial content and advertisements. Maclean's produces 15 different editions, and Reader's Digest produces nine. This is an example of:

A)one product and multiple market segments.
B)price discrimination.
C)mass customization.
D)multiple products in multiple market segments.

Question 48

Nexus 6P, a smartphone offered by Google and Motorola allows users to personalize the colours, case, and engravings online before purchasing. This is an example of which strategy?

A)mass customization
B)product sampling
C)usage segmentation
D)product extrapolation

Question 49

Johnson Gloves is a company that caters to the very affluent consumer who desires complete personalization. This Madrid-based boutique will use your fingerprints to customize your very own pair of driving gloves. The gloves are designed and created solely for you. This is an example of:

A)mass-appeal
B)mass-personalization
C)ultra-customization
D)ultra-personalization

Question 50

Reference: 09-01
TB Figure 1

Cell "B" in TB Figure 9-1 represents which stage of the market segmentation process?

A)Execute marketing program actions
B)Establish a marketing protocol
C)Link needs to actions
D)Identify market needs

Question 51

Between two and three percent of the population have some degree of allergic reaction, usually mild, to preservatives used in salad bars. Restaurants might consider people with these "allergies" as a separate segment. So these restaurants will need to have
Their regular salad bar plus a special salad bar for the allergies segment. This multiple product and multiple market segment strategy would have the greatest difficulty
Meeting which of the following criteria used to form market segments?

A)different needs of buyers among different segments
B)similarity of needs of potential buyers within a segment
C)instrumentality of sufficient marketing objectives to ignore that segment
D)potential for increased profit and ROI

Question 52

Which step in the segmenting and targeting market process would 'send five tweets per day regarding in-store promotions' fall under?

A)develop a market-product grid
B)create product groupings
C)take marketing actions to reach that target market
D)estimate size of market

Question 53

When Future Vacations allows customers to personalize their next vacation and customize their trip to whatever their needs are, this would best be described as:

A)product differentiation
B)product innovation
C)ultra-customization
D)mass personalization

Question 54

Reference: 09-01
TB Figure 1

Cell "A" in TB Figure 9-1 represents which stage of the market segmentation process?

A)Execute marketing program actions
B)Link needs to actions
C)Identify market needs
D)Establish a marketing protocol

Question 55

Reference: 09-01
TB Figure 1

Cell "C" in TB Figure 9-1 represents which stage of the market segmentation process?

A)Establish a marketing protocol
B)Link needs to actions
C)Identify market needs
D)Execute marketing program actions

Question 56

Which social media segment is likely to be interested in purchasing the following financial service offered by a bank through an online banner-ad marketing campaign: 'No-Risk, Bonds Offering Guaranteed 5% Returns Per Annum'?

A)followers of content
B)non-users
C)risk-conscious users
D)producers of content

Question 57

Yahoo's shopping portal recently began to offer people who visited the site the ability to buy songs from Imix's collection of more than 200,000 tracks from record labels that include BMG and Sony Music Group. Customers can choose up to 70 minutes of music for around $1 per song. Then they can choose an art design and a title for each CD and have a disc shipped for $2.50. This is an example of:

A)mass customization.
B)market melding.
C)how the 80/20 rule is implemented.
D)market augmentation.

Question 58

Custom Foot runs six retail locations. At first glance none look any different from your basic old-fashioned shoe store, but the only shoes on hand are display models. There's no inventory for sale, and customers go home empty-handed - at least initially. Customers browse the store, mixing and matching design components such as style, colour, and leather type. About 100 display shoes provide style guidelines. Once you choose a shoe style, you select materials, colours, textures and a style of sole. The
Retailer sells 10,000 variations in women's shoes and 7,800 in men's. Custom Foot guarantees your shoes will be ready within three weeks. This is an example of:

A)synergy.
B)one product and multiple market segments.
C)mass customization.
D)price discrimination.

Question 59

Mars Candies decides to extend the level of customization of their M&Ms. When you send in a salvia swab, the company will custom tailor the balance of salty/sweet/savory of the M&M to best appeal to your taste buds and ship you a package. This strategy is known as:

A)ultra-personalization
B)ultra-customization
C)mass customization
D)deliciousness

Question 60

Nexus 6P, a smartphone offered by Google and Motorola allows customers to visit its website and design the colour scheme, case, and engravings according to their personal desires. This website would particularly appeal to people who want a unique product that separates them from their peers and makes them stand out in the crowd. This would be descriptive of which type of market segmentation variable?

A)socioeconomic
B)demographic
C)psychographic
D)usage

Question 61

Universal Concerts is planning on bringing a series of concerts to Canada next year. In order for its concerts to be a success, it needs to know that Western Canadians like country music and that a country music event in Eastern Canada is much more likely to have empty seats. This consumer behaviour requires Universal Concerts to segment its Canadian market according to:

A)geographic and psychographic characteristics.
B)lifestyle and demographic characteristics.
C)usage rate and demographic characteristics.
D)demographic characteristics.

Question 62

When Mikki asked her father for his advice about marketing software for the disabled, he told her, "Reaching a segment requires a simple but effective marketing action. If no such action exists, don't segment." Mikki's father is expressing concern about the:

A)similarity of needs of potential buyers within a segment.
B)simplicity and cost of assigning potential buyers to segments.
C)feasibility of marketing actions to reach the segment.
D)different needs of buyers among different segments.

Question 63

Which of the following statements demonstrates the formation of a segment based on family size?

A)Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners.
B)Campbell's makes spicier nacho cheese sauce for its distributors in Texas than it does in Maine.
C)GE built a downsized microwave oven to hang under kitchen cabinets.
D)A fast food hamburger restaurant is open for breakfast on Sunday mornings but not on weekdays.

Question 64

Which of the following statements demonstrates geographic segmentation?

A)Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners.
B)In China KFC sells a much spicier chicken in its restaurants that are farther away from the coastal areas.
C)GE built a downsized microwave oven to hang under kitchen cabinets.
D)A fast food hamburger restaurant is open for breakfast on Sunday mornings but not on weekdays.

Question 65

Understanding customer needs is the _ step in market segmentation.

A)first
B)second
C)third
D)fourth

Question 66

Doris Lewis owns Lewis Edibles Inc., a company that makes Tongue Tinglin' B.B.Q. sauce. She wants to target local people who like the special blend of flavours found only in North Carolina mustard-based barbecue sauce. The easiest method for segmenting her market is to use ______ segmentation variables.

A)socioeconomic
B)behaviour
C)geographic
D)age

Question 67

Which of the following is NOT a criterion used in forming segments?

A)potential for increased profit and ROI
B)similarity of needs of potential buyers within a segment
C)feasibility of marketing action to reach a segment
D)competitive position

Question 68

When a telemarketer calls to sell a consumer vinyl siding for his or her home, the first question the telemarketer asks is if the person answering the phone is a homeowner. Whether the prospect is a homeowner indicates the use of which type of consumer segmentation variable?

A)buying situation
B)demographic
C)usage
D)behaviour

Question 69

Which of the following is NOT a criterion used in forming market segments?

A)difference of needs of buyers between segments
B)similarity of needs of potential buyers within a segment
C)cost of reaching the segment
D)potential for increased profit and ROI

Question 70

Modern Maturity magazine is a publication that is sent to all AARP members, who by organization definition have to be at least 50 years old to join. The market segment for Modern Maturity magazine was defined by:

A)buyer situations.
B)usage patterns.
C)usage rates.
D)demographic characteristics.

Question 71

At a Hallmark store you can find several different product lines of greeting cards, including Fresh Ink, Nature's Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cards - all made by Hallmark for sale in its stores and intended to appeal to
Different target markets. The Mahogany line is designed to appeal to African-Americans. This is an example of segmentation.

A)geographic
B)lifestyle
C)demographi c
D)regional

Question 72

The Province of Ontario Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state. Since the apparent target of these is traditional families, it appears the Board of Tourism has segmented the market using
________ variables.

A)regional
B)geographic
C)demographic
D)socioeconomic

Question 73

A different market segment usually requires a different marketing action that in turn means greater costs. If increased revenues do not offset extra costs, a marketer should ________ to reduce the number of marketing actions.

A)combine segments
B)try direct mail instead of broadcast advertising
C)increase the advertising budget
D)cancel current activities

Question 74

When the Benihana Frozen Foods Corporation began to offer its Famous Restaurant Classics meals in single serving packages, it was relying on a segmentation variable to define a market based on serving size.

A)geographic
B)regional
C)lifestyle
D)demographi c

Question 75

The best segmentation approach is the one that:

A)is simplest and least costly in assigning potential buyers to segments.
B)recognizes similarities of needs of potential buyers within a segment.
C)maximizes the opportunity for future profit and ROI
D)recognizes different needs of buyers among different segments.

Question 76

Ford Motor Company uses the slogan "No Boundaries" for its ad campaigns for Ford SUVs. It invites people who want ultimate people-carrying and gear-storing capabilities "to be outfitted with the most far-reaching sports utility vehicle on earth." If the SUV campaign were simply geared to families with young children, it would be using segmentation, but because the campaign is trying to appeal to people who do not like the restrictions of a sedan, who want to be able to pack up and leave at a moment's notice, and who enjoy freedom and independence, it is relying on
________ segmentation.

A)demographic; psychographic
B)demographic; usage rate
C)socioeconomic; demographic
D)psychographic; lifestyle

Question 77

A marketing manager must be able to put a market segmentation plan into effect. This means being able to recognize the characteristics of potential buyers and _ _ without encountering excessive costs.

A)assign them to a segment
B)maximize internal considerations
C)optimize their different needs
D)diversify their interests

Question 78

A new car dealer decides to open up a dealership in a region that has higher than national average income. Which characteristic is the new car dealer using to segment their market?

A)demographic
B)psychographic
C)local
D)customer

Question 79

A local coffee shop places significant value in using consumer demographic variables in segmenting their local market. Using the latest Canada Census covering topics of: education, age, and income will be important to use in which marketing step?

A)One.
B)Two.
C)Three.
D)Four.

Question 80

A local sports store is planning on using only demographic variables to segment potential customers who will purchase from the store. This will dictate the diversity of products the store will carry. Which research report is most useful to this sports store?

A)"Sports Activities and Purchasing Habits, 2014 Edition"
B)"Gender Representation in Major Urban Centres in Canada"
C)"Fast Rising Sports Segment and Market Leading Products, 2014 Edition"
D)"Population Breakdown in Major Urban Centres in Canada"