Deck 7: Segmentation, Targeting, and Positioning

Question 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

Answer 1

loyalty status

Question 2

Demographic variables are so frequently used in market segmentation because they ________.
create smaller segments
create more easily reached segments
do not involve stereotypes
tend to be easier to identify and measure
involve fewer attributes to consider

Answer 2

tend to be easier to identify and measure

Question 3

Which of the following best describes market segmentation?
dividing the market into smaller, meaningful groups of customers
a promise to a group of customers
evaluating and identifying a meaningful group of customers to serve
creating a unique offering to provide customer value
identifying a clear and distinct place in the customer's brain that the brand or company should occupy

Answer 3

dividing the market into smaller, meaningful groups of customers

Question 4

Your firm's research reveals that consumers have different tastes in different cities.As a result, management has decided to localize its products and services to meet local market demands.This is an example of ________ segmentation.
geographic
benefit
end-use
customer
image

Question 5

When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________.
concentrated marketing
mass marketing
market targeting
segmenting
differentiation

Question 6

Through talking to numerous competitors at a regional trade show, you learn that most of them use the most popular base for segmenting markets.What is it?
demographic
lifestyle
psychographic
behavioural
geographic

Question 7

Which of the following best describes differentiation?
dividing the market into smaller, meaningful groups of customers
a promise to a group of customers
evaluating and identifying a meaningful group of customers to serve
creating a unique offering to provide customer value
identifying a clear and distinct place in the customer's brain that the brand or company should occupy

Question 8

Which of the following best describes positioning?
dividing the market into smaller, meaningful groups of customers
a promise to a group of customers
evaluating and identifying a meaningful group of customers to serve
creating a unique offering to provide customer value
identifying a clear and distinct place in the customer's brain that the brand or company should occupy

Question 9

Marketers must be careful to guard against ________ when using age and life cycle segmentation.
underestimating
stereotyping
traditional marketing
cultural bias
gender bias

Question 10

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

Question 11

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

Question 12

There ________ to segment a market.
is one single best way
is no single way
is not a most effective way
are limited ways
are four ways

Question 13

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?
demographic
psychographic
occasion
impulse
emergency

Question 14

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?
geographic
behavioural
lifestyle
demographic
psychographic

Question 15

When Burger King targets children, teens, adults, and seniors with different ads and media, it is practicing ________ segmentation.
geographic
age and life cycle
psychographic
behavioural
usage rate

Question 16

What are the four steps, in order, to designing a customer-driven marketing strategy?
market segmentation, differentiation, positioning, and targeting
positioning, market segmentation, mass marketing, and targeting
market segmentation, targeting, differentiation, and positioning
market alignment, market segmentation, differentiation, and market positioning
market recognition, market preference, market targeting, and market insistence

Question 17

Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more ________ with products and services that match their unique needs.
efficiently
effectively
intensely
indirectly
both A and B

Question 18

When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely primarily using which type of segmentation?
age and life cycle
gender
behaviour
psychographic
geographic

Question 19

Which of the following best describes target marketing?
dividing the market into smaller, meaningful groups of customers
a promise to a group of customers
evaluating and identifying a meaningful group of customers to serve
creating a unique offering to provide customer value
identifying a clear and distinct place in the customer's brain that the brand or company should occupy

Question 20

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

Question 21

When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________.
accessible
measurable
reachable
actionable
differentiable

Question 22

When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________.
measurable
accessible
substantial
actionable
observable

Question 23

In Canada, cranberry sauce sales spike right before Thanksgiving, Christmas, and other holidays.A segmentation that seems to describe this phenomenon is _______.
social class
personality
occasion
readiness stage
education

Question 24

Barney Hopkins has compiled a list of things that make segments more attractive.Which of the following items should be on the list?
profitability of products
powerful suppliers to control prices
many substitute products
competition with superior resources
financial resources

Question 25

As in consumer segmentation, many marketers believe that ________ and ________ segmentation provide the best basis for segmenting business markets.
geographic; demographic
user status; user loyalty
benefits; buying behaviour
age and life-cycle; psychographic
income; usage rate

Question 26

International Drilling Company is a business-to-business company that segments its foreign markets by the income levels of a country's population.This firm segments on what basis?
political factors
legal factors
geographic factors
economic factors
cultural factors

Question 27

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

Question 28

The market segments your company is targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs.Therefore, these segments are ________.
accessible
measurable
reachable
differentiable
observable

Question 29

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

Question 30

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

Question 31

Lexus targets wealthy consumers with similar needs and buying behaviours, even though the consumers are located in different countries.This is an example of ________.
intermarket segmentation
loyalty segmentation
life-cycle segmentation
targeting segmentation
psychographic segmentation

Question 32

If Wealth TV decides to segment its market based on the social class of television viewers, what segmentation approach is Wealth TV using?
geographic segmentation
demographic segmentation
psychographic segmentation
behavioural segmentation
situational factors

Question 33

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

Question 34

Which of the following is one of the reasons a segment would be less attractive to a company?
no competitors
substitute products
concentrated market
does not match company's long run objectives
power of suppliers

Question 35

To evaluate the different market segments your company is serving, you would look at which of the following factors?
consumer size
product growth
segment structural attractiveness
company culture
company competitors

Question 36

Wealth TV is a channel that segments its market based on the income levels of television viewers.This firm segments on what basis?
geographic segmentation
demographic segmentation
psychographic segmentation
behavioural segmentation
situational factors

Question 37

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

Question 38

Purrsonals.com calls itself "the cat lover's social network." Which targeting approach best describes the site's approach?
undifferentiated marketing
differentiated marketing
mass marketing
niche marketing
substitute marketing

Question 39

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; offer new products
identify behaviours; understand spending power

Question 40

Consumer and business marketers use many of the same variables to segment markets.Business marketers use which of the following?
operational behaviours
purchasing plans
situational factors
product characteristics
brand personalities

Question 41

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
mass market; deceptive

Question 42

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

Question 43

Mass customization has made relationships with customers ________.
irrelevant
more important than ever
less profitable
easier
self-conceptualized

Question 44

________ marketing tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores.
Undifferentiated
Differentiated
Niche
Local
Variable

Question 45

Which of the following is a drawback of local marketing?
It can drive up manufacturing agents.
It can drive up marketing costs by reducing economies of scale.
It can create logistics opportunities.
A brand's overall image will be enhanced through added variation.
Supporting technologies are not cost-effective.

Question 46

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

Question 47

Under what circumstances would local marketing likely be the most effective?
when pronounced differences in psychographics are present
when pronounced differences in lifestyles are present
when pronounced regional and local differences in demographics and lifestyles are present
when regional demographics and lifestyles are similar
when pronounced similarities in psychographics are present

Question 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 ________.
concentrated marketing
mass marketing
mass customization
undifferentiated marketing
localization

Question 49

When choosing a target marketing strategy, many factors need to be considered.Which of the following does your text mention as important?
company natural resources
unlimited resources
product life-cycle stage
product cost
your marketing strategies

Question 50

It is most accurate to say that successful niche marketing relies on a firm's ________ and its ________.
marketing strategy; services
individual relationships with customers; positioning
superior products; value network partners
greater knowledge of customers' needs; special reputation
competitive advantage in comparison to mass-market companies; affordable pricing

Question 51

Procter & Gamble sells six brands of laundry detergent in North America, each designed for one of six laundry type 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?
lost sales that would have been made with an undifferentiated marketing strategy across all segments
lost customer loyalty due to lack of brand loyalty
increased costs for separate marketing plans for each brand
other suppliers controlling pricing
lack of resources to succeed in an attractive segment

Question 52

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

Question 53

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
variable
mass
undifferentiated

Question 54

Using concentrated marketing, the marketer goes after a ________ share of ________.
small; a small market
small; a large market
large; one or a few niches
large; the mass market
moderate; the local market

Question 55

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

Question 56

Which of the following is the narrowest strategy?
segmented strategy
local marketing
differentiated marketing
mass marketing
undifferentiated marketing

Question 57

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
individual
mass
niche

Question 58

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; desired by
unimportant to; overlooked by
too large; undesirable to
unknown by; desired by
disappointed by; geographically far from

Question 59

When Walmart customizes its merchandise store by store to meet shopper needs, it is practicing ________.
niche marketing
psychographic marketing
local marketing
social segmentation
individual marketing

Question 60

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

Question 61

"Less-for-much-less" positioning involves meeting consumers' ________.
quality performance requirements at a lower price
lower quality requirements in exchange for a lower price
lower quality requirements at the lowest possible price
high quality requirements at a discounted rate
high quality requirements at the lowest possible price

Question 62

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

Question 63

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

Question 64

Which of the listed choices is a very important positioning task?
identifying a set of possible competitive advantages upon which to build a position
surveying frequent uses of the product
selecting a specific positioning statement
effectively selling the cheapest position to the market
selecting the right competition

Question 65

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

Question 66

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

Question 67

A company or store gains a(n) ________ by differentiating its products and delivering more value.
competitive advantage
positioning advantage
cost advantage
efficiency advantage
synergy

Question 68

Not every brand difference is worth establishing and promoting.A difference is worth promoting to the extent that it satisfies which of the following criteria?
competitive
alternative
divisible
superior
reactive

Question 69

A product's position is based on important attributes as perceived by ________.
suppliers
competitors
market conditions
consumers
managers

Question 70

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

Question 71

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

Question 72

Most attempts to target children and minority groups provide ________ to target customers.
benefits
education
disadvantages
harm
expenses

Question 73

Which difficult-to-sustain positioning strategy attempts to deliver the "best-of-both"?
more-for-the-same
more-for-less
same-for-less
more-for-more
less-for-much-less

Question 74

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.
more-for-the-same
more-for-less
same-for-less
less-for-much-less
all-or-nothing

Question 75

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

Question 76

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

Question 77

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

Question 78

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

Question 79

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

Question 80

From cereal and toys to fast food and fashion marketers have generated much controversy in recent years by their attempts to target ________.
the elderly
white-collar workers
children
multiple international markets
suburban adults