Deck 6: Customer-Driven Marketing Strategy: Creating Value for Target Customers

Question 1

Bakeries and coffee bistros that offer pumpkin-flavored items only during the autumn season target their consumers primarily through ________ segmentation.

A) psychographic
B) demographic
C) income
D) occasion
E) age and life-cycle

Answer 1

D

Question 2

________ segmentation factors divide buyers into different groups based on social class, lifestyle, or personality characteristics.

A) Geographic
B) Demographic
C) Psychographic
D) Behavioral
E) User status

Answer 2

C

Question 3

Delta, an American video game manufacturer, targets teens between the ages of 13 and 18, providing free game trials and applications. The firm's marketing approach exemplifies ________ segmentation.

A) age and life-cycle
B) geographic
C) occasion
D) gender
E) income

Answer 3

A

Question 4

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy?

A) market segmentation, differentiation, positioning, and market targeting
B) positioning, market segmentation, mass marketing, and market targeting
C) market segmentation, market targeting, differentiation, and positioning
D) market alignment, market segmentation, differentiation, and market positioning
E) market recognition, market preference, market targeting, and market insistence

Question 5

Gulf Coast, a wholesale shrimp distributor, groups its customers by regions in the United States, such as Midwest, Northeast, and Southwest. For each region, Gulf Coast tailors a different set of advertisements and promotions. The supplier is segmenting its market according to ________.

A) behavioral factors
B) personality characteristics
C) geographic location
D) benefits sought
E) demographics

Question 6

Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called ________ segmentation.

A) behavioral
B) psychographic
C) age and life-cycle
D) user status
E) geographic

Question 7

Which type of market segmentation is generally used by marketers who sell luxury products targeted to the affluent segments of a population?

A) usage rate
B) occasion
C) income
D) benefits sought
E) gender

Question 8

While designing a customer-driven marketing strategy, marketers are likely to divide the market into smaller segments.

Question 9

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 segmentation
B) usage rate segmentation
C) benefit segmentation
D) behavioral segmentation
E) loyalty status segmentation

Question 10

Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged men, and the other line targets younger, up-and-coming professionals. Harry's most likely segments the consumer market based on ________ variables.

A) geographic
B) psychographic
C) universal
D) demographic
E) behavioral

Question 11

P&G was among the first to use ________ segmentation when it introduced Secret, a deodorant brand specially formulated for women's chemistry.

A) age and life-cycle
B) gender
C) behavior
D) psychographic
E) geographic

Question 12

The marketing manager at Frizzles' Eateries targets customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of low-fat, low-calorie meals that appeal to dieters. Frizzles' approach is best referred to as ________ segmentation.

A) age and life-cycle
B) user status
C) benefit
D) demographic
E) geographic

Question 13

Companies today are moving away from target marketing and toward mass marketing.

Question 14

Bass Pro Shops recognizes that outdoors enthusiasts are a diverse group. Likely segments include hunters, campers, and boaters. What is this segmentation method called?

A) user status
B) usage rate
C) benefit
D) behavioral
E) psychographic

Question 15

Explain the four major steps in designing a customer-driven marketing strategy.

Question 16

Pediacertain Pet Supplies, a pet-food company, divides the pet market according to the pet owners' gender, occupation, income, and family life cycle. In this case, which of the following variables has the company used for market segmentation?

A) geographic
B) psychographic
C) benefit
D) demographic
E) occasion

Question 17

Lilly's, a furniture retailer, sells low-end furniture and accent pieces that are targeted toward lower-income consumer groups. Lilly's most likely segments the consumer market based on ________ variables.

A) demographic
B) psychographic
C) universal
D) geographic
E) behavioral

Question 18

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

A) Differentiation
B) Positioning
C) Market targeting
D) Market segmentation
E) Mass marketing

Question 19

________ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior.

A) Differentiation
B) Mass marketing
C) Market targeting
D) Market segmentation
E) Positioning

Question 20

One reason demographic variables are the most popular bases for segmenting customer groups is because they ________.

A) create smaller segments
B) create more easily accessible segments
C) do not involve stereotypes
D) are easier to measure than other variables
E) involve fewer attributes to consider

Question 21

Producers of popular beverages often partner with global music channels to target consumers through a variety of promotional events and advertisements. This approach to marketing is referred to as ________ segmentation.

A) intermarket
B) income
C) age and life-cycle
D) occasions
E) gender

Question 22

Gold Class Electricals, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on ________.

A) demographic variables
B) geographic regions
C) multiple segmentation bases
D) behavioral variables
E) psychographic segmentation bases

Question 23

Target and Kohl's have opened smaller-format stores designed to fit the needs of densely packed urban neighborhoods. This is an example of geographic segmentation.

Question 24

Light users are often a small percentage of a company's market but account for a high percentage of total consumption.

Question 25

Danko International is a multinational company that targets the BRIC countries (Brazil, Russia, India, and China)because they're fast-growing developing economies and use ________ to segment its world markets.

A) political factors
B) legal factors
C) personality factors
D) economic factors
E) cultural factors

Question 26

Shampoo marketers segment buyers as light, medium, or heavy product users. This is an example of ________ segmentation.

A) user status
B) usage rate
C) benefits sought
D) occasion
E) psychographic

Question 27

Multivariable segmentation systems merge and analyze geographic, demographic, lifestyle, and behavioral data to help companies segment their markets.

Question 28

Not all companies that use income segmentation target the affluent.

Question 29

Demographic factors are the most popular bases for segmenting customer groups.

Question 30

New communications technologies like satellite TV and social media are likely to eliminate the need for markets to be geographically segmented as clusters of countries.

Question 31

Marketers typically limit their market segmentation analysis to a single variable in order to simplify the process.

Question 32

Cupcake Gourmet, a high-end bakery in Manhattan, segments its customers according to those who frequent their store regularly, those who visit infrequently, and those who have never visited. This is an example of usage-rate segmentation.

Question 33

When the size, purchasing power, and profiles of a market segment can be determined, the market segment is said to be ________.

A) measurable
B) accessible
C) substantial
D) actionable
E) observable

Question 34

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

Question 35

When a market segment is large or profitable enough to serve, it is termed ________.

A) measurable
B) accessible
C) substantial
D) actionable
E) differentiable

Question 36

If men and women respond dissimilarly to the marketing efforts for a root beer-flavored malt beverage, they are considered ________ market segments.

A) accessible
B) measurable
C) reachable
D) differentiable
E) observable

Question 37

Market segments that can be effectively reached and served are said to be ________.

A) measurable
B) accessible
C) substantial
D) actionable
E) profitable

Question 38

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

Question 39

Marketers must be careful to guard against stereotypes when using age and life-cycle segmentation.

Question 40

Demographic variables are generally more difficult to measure than most other types of variables.

Question 41

Marketing the same product to a huge customer base without any customization is referred to as ________.

A) mass marketing
B) differentiated marketing
C) niche marketing
D) local marketing
E) individual marketing

Question 42

________ marketing tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores.

A) Differentiated
B) Mass
C) Niche
D) Local
E) Individual

Question 43

The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________.

A) niche marketing
B) micromarketing
C) segmented marketing
D) global marketing
E) undifferentiated marketing

Question 44

The marketing manager of Refresh Inc., a leading producer of soft drinks, is considering a differentiated marketing strategy. An important consideration is weighing increased sales against ________ before selecting this strategy.

A) decreased production
B) increased demand
C) increased costs
D) decreased prices
E) increased profits

Question 45

Why do international markets need to be segmented?

Question 46

Compared with undifferentiated marketing, differentiated marketing is more likely to lead to ________.

A) reduced sales in each market segment
B) weaker product position in each market segment
C) higher costs of doing business
D) redundancy in product design across market segments
E) smaller market share in the industry

Question 47

Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called ________ marketing.

A) concentrated
B) differentiated
C) individual
D) mass
E) local

Question 48

How do businesses segment their markets?

Question 49

A successful niche marketing strategy relies on a firm's ________.

A) availability of services
B) product positioning
C) superior products
D) knowledge of customer needs
E) affordable pricing

Question 50

Explain the four major segmentation variables for consumer markets.

Question 51

For market segments to be beneficial for companies, they must be measurable.

Question 52

Which of the following is an approach where firms target a whole market based on common consumer needs?

A) demographic segmentation
B) undifferentiated marketing
C) micromarketing
D) concentrated marketing
E) geographic segmentation

Question 53

Although not recommended, some marketers decide to ignore market segmentation and target the whole market with one offer. This is known as ________ marketing.

A) undifferentiated
B) differentiated
C) niche
D) local
E) individual

Question 54

Describe age and life-cycle segmentation with examples. What are the precautions that marketers should take when using age and life-cycle segmentation?

Question 55

Which of the following is true about local marketing?

A) It does not cater to individual stores.
B) It does not support evolving technologies.
C) It increases manufacturing costs.
D) It increases economies of scale.
E) It reduces logistical issues.

Question 56

Explain with examples how marketers segment markets based on occasions, benefits sought, and user status.

Question 57

Briefly describe the characteristics of effective market segments.

Question 58

Describe how marketers use multiple-segmenting bases to their advantage.

Question 59

A market segment is less attractive when ________.

A) there are few aggressive competitors in the segment
B) it is difficult for new entrants to enter the segment
C) it contains powerful suppliers who can control prices
D) substitute products are unavailable in the segment
E) buyers in the market segment have weak bargaining powers

Question 60

Unlike other car rental agencies that are based in airports to serve travelers, Rental Wheelz has a network of neighborhood offices. The firm strives to serve people who need car rentals for reasons other than vacation, such as when their own cars are being repaired. Rental Wheelz caters to a small share of the large car rental market. From this description, it can be concluded that Rental Wheelz most likely practices ________.

A) undifferentiated marketing
B) multi-segmented marketing
C) individual marketing
D) local marketing
E) concentrated marketing

Question 61

Argonaut Food Stores, a retail giant, hires better-skilled employees than its competitors by employing strategic recruitment practices. It also conducts highly specialized training programs for its employees. In this case, Argonaut has focused on gaining a strong competitive advantage through ________ differentiation.

A) image
B) people
C) services
D) product
E) channel

Question 62

Compare and contrast local and individual marketing.

Question 63

Companies are likely to gain ________ through speedy, convenient, or careful delivery of products.

A) price differentiation
B) product differentiation
C) channel differentiation
D) services differentiation
E) people differentiation

Question 64

A market segment with powerful suppliers controlling the prices is more attractive than a segment with less powerful suppliers.

Question 65

Smaller companies may lack the skills and resources needed to serve larger segments.

Question 66

A segment is more attractive if it is easy for new competitors to enter the market.

Question 67

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.

Question 68

Using a differentiated marketing strategy, a company is likely to design a product and a marketing program that will appeal to the largest number of buyers.

Question 69

Describe a few ways in which a marketer can engage in socially responsible target marketing.

Question 70

Even if a segment has the right size and growth and is structurally attractive, a company must consider its own objectives and resources before targeting that segment.

Question 71

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 engaging in ________.

A) concentrated marketing
B) mass marketing
C) mass customization
D) differentiated marketing
E) local marketing

Question 72

At the extreme, micromarketing becomes ________ insofar as products and marketing programs are tailored to the needs and preferences of customers.

A) differentiated marketing
B) multi-segmented marketing
C) local marketing
D) mass marketing
E) individual marketing

Question 73

The full positioning of a brand is called the unique selling proposition.

Question 74

The distinctive yellow and blue "hands held high" logo of a local daycare distinguishes it from other establishments. The logo is prominently displayed on its building, t-shirts worn by the children, and at fundraising events. The daycare has differentiated itself through ________.

A) image
B) people
C) services
D) channels
E) positioning

Question 75

Bose promises "better sound through research." This is an example of ________.

A) people differentiation
B) channel differentiation
C) price differentiation
D) services differentiation
E) product differentiation

Question 76

Which of the following is true of product positioning?

A) A product's position is defined by the number of competitors in a market.
B) Product positioning has little influence on the design of marketing mixes.
C) Consumers generally reevaluate products every time they make a buying decision.
D) To simplify the buying process, consumers are likely to position products in their minds.
E) Consumers cannot position products with or without the help of marketers.

Question 77

The low cost of setting up shop on the Internet makes it even more profitable to serve seemingly small niches.

Question 78

Which of the following types 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

Question 79

Compare and contrast the four major strategies that are generally used to target market segments.

Question 80

Describe the process by which companies identify attractive market segments and choose a target marketing strategy.