Deck 7: Customer-Driven Marketing Strategy: Creating Value for Target Customers

Question 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

Answer 1

is no single way

Question 2

Shampoo marketers rate buyers as light,medium,or heavy product users.This is ________ segmentation.

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

Answer 2

usage rate

Question 3

When Positive Image,Inc.caters to clothing,cosmetics,and toiletries markets,it most likely uses which type of segmentation?

A) readiness
B) gender
C) behavior
D) occasions
E) geographic

Answer 3

gender

Question 4

Marketers of automobiles,financial services,and travel are most likely to use which of the following types of segmentation?

A) gender
B) income
C) occasion
D) usage rate
E) readiness stage

Question 5

Your current assignment at Asia 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

Question 6

What are the four steps,in order,to designing a customer-driven marketing strategy?

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

Question 7

Your firm has decided to localize its products and services to meet local market demands.A good approach to use would be ________ segmentation.

A) geographic
B) benefit
C) end-use
D) customer
E) image

Question 8

Markets can be segmented into groups of nonusers,ex-users,potential users,first-time users,and regular users of a product.This method of segmentation is called ________.

A) user status
B) usage rates
C) benefit
D) behavior
E) loyalty status

Question 9

Which of the following is the most popular method for segmenting markets?

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

Question 10

Pet Paradise Centre divides the pet market according to the owners' race,occupation,income,and family life cycle.What type of segmentation does Pet Paradise Centre use?

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

Question 11

Demographic variables are frequently used in market segmentation because they ________.

A) create smaller segments than other methods do
B) create more easily reached segments than other methods do
C) do not involve stereotypes
D) are easy to measure in comparison to many other methods
E) involve fewer attributes to consider than other methods do

Question 12

Marketers must be most careful to guard against which of the following when using age and life-cycle segmentation?

A) underestimating
B) stereotyping
C) traditional marketing
D) cultural bias
E) gender bias

Question 13

The division of buyers into groups based on their knowledge,attitudes,uses,or responses to a product is ________ segmentation.

A) behavioral
B) psychographic
C) age and life cycle
D) demographic
E) geographic

Question 14

Which type of segmentation centers on the use of the word when,such as when consumers get the idea to buy,when they actually make their purchase,or when they use the purchased item?

A) behavioral
B) psychographic
C) occasion
D) impulse
E) emergency

Question 15

Many firms make an effort to identify smaller,better-defined target groups by using ________.

A) differentiation
B) concentrated marketing
C) multiple segmentation bases
D) positioning
E) mass marketing

Question 16

Consumers can show their loyalty to brands,stores,or companies.Marketers can use this information to segment consumers by ________.

A) user status
B) loyalty status
C) store type
D) brand preference
E) usage rate

Question 17

Lifestyle characteristics and personality characteristics are two types of variables used in ________ segmentation.

A) demographic
B) behavioral
C) social class
D) psychographic
E) user status

Question 18

Consumer and business marketers use many of the same variables to segment markets.Business marketers use all of the following EXCEPT ________.

A) operating characteristics
B) purchasing approaches
C) situational factors
D) personal characteristics
E) brand personalities

Question 19

When a company evaluates each market segment's attractiveness and selects one or more
segments to enter,it is engaging in ________.

A) adapted marketing
B) mass marketing
C) market targeting
D) segmenting
E) differentiation

Question 20

By studying its less loyal buyers,a company can detect which brands are most ________ its own.

A) competitive with
B) used with
C) overlooked with
D) similar to
E) complementary to

Question 21

Lexus targets wealthy consumers with similar needs and buying behaviors,even though the consumers are located in different countries.This is an example of ________.

A) intermarket segmentation
B) loyalty segmentation
C) life-cycle segmentation
D) targeting segmentation
E) psychographic segmentation

Question 22

Oil companies segment foreign markets by overall level of economic development.This firm segments on what basis?

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

Question 23

MTV targets teenagers located in different countries.This is known as ____________ segmentation.

A) intermarket segmentation
B) international segmentation
C) regional segmentation
D) mass-market segmentation
E) micromarketing

Question 24

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

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

Question 25

When New Asia Shipping uses segmented marketing,it targets several segments and designs separate offers for each one.This approach is called ________ marketing.

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

Question 26

ByWay Pte Ltd chose a differentiated marketing strategy.The company had to weigh ________ against ________ when selecting this strategy.

A) extra research; costs
B) sales analysis; sales
C) increased sales; increased costs
D) geographic segmentation; demographic segmentation
E) attitudes; perceptions

Question 27

Successful niche marketing is most dependent on a firm's ________ and its ________.

A) promotions 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

Question 28

The markets you have chosen to serve in four Asian cities 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

Question 29

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 30

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

Question 31

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

Question 32

In general,a company should enter only segments in which it can ________ and ________.

A) offer lower prices; ship faster
B) offer superior value; gain advantages over competitors
C) offer superior value; ship faster
D) gain advantages over competitors; mass market its products
E) offer lower prices; develop customer loyalty

Question 33

Developing a strong position within several segments creates more total sales than ________ marketing across all segments.

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

Question 34

Mass marketers,such as BHG and Robinsons department stores,often ignore market segment differences and target the whole market with one offer.What is their approach to segmenting?

A) undifferentiated marketing
B) differentiated marketing
C) target marketing
D) concentrated marketing
E) micromarketing

Question 35

The 55-year-old baby boomers share common needs in music and performers.When a music company decides to serve this group,the group is called a(n)________.

A) market segment
B) target market
C) niche market
D) micro market
E) undifferentiated market

Question 36

Clean Pte Ltd sells six brands of laundry detergent in Southeast Asia,each designed for one of six laundry segments identified.Together,these six brands take 62% of market share.Which of the following is a disadvantage of Clean Pte Ltd's differentiated marketing strategy?

A) lost sales that would have been made with an undifferentiated marketing strategy across all segments
B) lost customer loyalty due to lack of brand loyalty
C) increased costs for separate marketing plans for each brand
D) other suppliers controlling pricing
E) lack of resources to succeed in an attractive segment

Question 37

Brian Ho has compiled a list of things that make segments more attractive.Which one of the following items should NOT be on the list?

A) relative power of buyers
B) lack of powerful suppliers to control prices
C) few substitute products
D) competition with superior resources
E) financial resources

Question 38

You have discovered that the segments you are targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs.These segments are ________.

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

Question 39

To evaluate the different market segments your company serves,you would look at all of these factors EXCEPT which one?

A) segment size
B) segment growth
C) segment structural attractiveness
D) company values
E) company resources

Question 40

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

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

Question 41

As You Like It Pte Ltd customizes its offers to each individual consumer.This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________ marketing.

A) niche
B) mass
C) differentiated
D) undifferentiated
E) micro

Question 42

Today,the low cost of setting up shop ________ makes it even more profitable to serve very small niches.

A) in malls in major cities
B) in central business districts
C) on the Internet
D) near major competitors
E) far from competitors

Question 43

In target marketing,the issue of social responsibility is not really who is targeted,but rather ________ and for ________.

A) why; what
B) how; what
C) why; how long
D) where; how long
E) how; how long

Question 44

Target marketing sometimes generates controversy and concern.Issues usually involve the targeting of ________ consumers with ________ products.

A) elderly; durable
B) young; appealing
C) vulnerable; marketing
D) vulnerable; potentially harmful
E) unexpected; deceptive

Question 45

When competitors use differentiated or concentrated marketing,________ marketing can be suicidal.

A) differentiated
B) undifferentiated
C) concentrated
D) customized
E) localized

Question 46

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

A) Undifferentiated
B) Differentiated marketing
C) Niche marketing
D) Local marketing
E) Individual marketing

Question 47

Which of the following is NOT a drawback of local marketing?

A) It can drive up manufacturing costs.
B) It can drive up marketing costs by reducing economies of scale.
C) It can create logistics problems.
D) A brand's overall image might be diluted through too much variation.
E) Supporting technologies are not available.

Question 48

Using concentrated marketing,the marketer goes after a ________ share of ________.

A) small; a small market
B) small; a large market
C) large; one or a few niches
D) large; the mass market
E) moderate; local

Question 49

When choosing a target marketing strategy,many factors need to be considered.Which of the following does your text NOT mention as important?

A) company resources
B) product variability
C) product life-cycle stage
D) product cost
E) competitors' marketing strategies

Question 50

_____ targeting helps companies to be more efficient and effective by focusing on the segments that they can satisfy best and most profitably.

A) Urban
B) Niche
C) Smart
D) Market
E) Suburban

Question 51

When a company interacts one-on-one with large numbers of customers to create customer-unique value by designing products and services tailor-made to individual needs,it is following ________.

A) micromarketing
B) mass marketing
C) mass customization
D) differentiated marketing
E) localization

Question 52

________ helps a company to market more effectively in the face of pronounced
regional and local differences in demographics and lifestyles.

A) niche marketing
B) psychographic marketing
C) local marketing
D) social segmentation
E) individual marketing

Question 53

Most attempts to target children provide ________ to target customers.

A) benefits
B) education
C) disadvantages
D) harm
E) expenses

Question 54

Which of the listed choices is NOT a positioning task?

A) identifying a set of possible customer value differences upon which to build a position
B) surveying frequent users of the product
C) selecting an overall positioning strategy
D) effectively communicating and delivering the chosen position to the market
E) selecting the right competitive advantages

Question 55

Which group determines a product's position relative to competing products?

A) manufacturers
B) wholesalers
C) retailers
D) consumers
E) suppliers

Question 56

A product's position is based on important attributes as perceived by ________.

A) suppliers
B) competitors
C) market conditions
D) consumers
E) managers

Question 57

A company or store gains a(n)________ by differentiating its products and delivering more value.

A) competitive advantage
B) positioning advantage
C) cost advantage
D) efficiency advantage
E) synergy

Question 58

Which of the segmenting strategies carries higher-than-average risks in consumer markets?

A) concentrated
B) mass
C) differentiated
D) undifferentiated
E) multiple-segment

Question 59

It is considered socially irresponsible when the marketing of adult products spills over into the ________ segment.

A) elderly
B) child
C) animal
D) minority
E) senior

Question 60

In Singapore,the Kinokuniya branch at Bugis Junction taps into the high-volume youth clientele by carrying comics and books on travel and careers.Which is its marketing strategy?

A) segmented strategy
B) local marketing
C) differentiated marketing
D) mass marketing
E) undifferentiated marketing

Question 61

When firms use symbols,colors,or characters to convey their personalities,they are using ________ differentiation.

A) image
B) people
C) company
D) reputation
E) subliminal

Question 62

When marketers at P&G selected the Millennials,a demographic that includes university students,for their Febreze line of products,they were executing which step in the process of designing a customer-driven marketing strategy?

A) market segmenting
B) mass marketing
C) differentiation
D) targeting
E) positioning

Question 63

When Honda appeals to the rebellious,independent kid in all of us in its advertisements,it is using ___________ segmentation.

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

Question 64

Which type of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage,expertise,and performance?

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

Question 65

A company or market offer can be differentiated along the lines of product,image,services,channels,or ________.

A) labeling
B) packaging
C) people
D) customer service
E) reputation

Question 66

What is the following an example of? "To busy,mobile people who need to always be in the loop,the iPad is a multi-touch screen wireless connectivity solution that provides the best way to
experience the Web,email,photos,and videos with just the touch of a finger."

A) positioning statement
B) service differentiation
C) concentrated segmentation
D) competitive advantage
E) irresponsible target marketing

Question 67

Which difficult to sustain positioning strategy attempts to deliver the "best of both"?

A) more for the same
B) more for less
C) same for less
D) less for much less
E) all or nothing

Question 68

Which type of statement first indicates the product's membership in a category and then shows its point of difference from other members of the category?

A) mission statement
B) vision statement
C) differentiation statement
D) positioning statement
E) statement of intent

Question 69

What competitive positioning can attack a more-for-more strategy by introducing a brand offering with comparable quality at a lower price?

A) more for the same
B) more for less
C) same for less
D) less for much less
E) all or nothing

Question 70

Which positioning strategy offers consumers a "good deal" by offering equivalent-quality products or services at a lower price?

A) more for the same
B) more for less
C) same for less
D) less for much less
E) all or nothing

Question 71

You have just created the "perfect" ad.It communicates the full mix of benefits upon which the brand is differentiated and positioned.This full positioning of the brand is called ________.

A) value proposition
B) target marketing
C) capturing the consumers' attention
D) value profiling
E) differentiated marketing

Question 72

When Pacific Fisheries Pte Ltd groups its customers 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

Question 73

"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

Question 74

Volvo consistently promotes its safety.This serves as its ______________.

A) unique selling product
B) unique services practice
C) unique sales pitch
D) unique selling proposition
E) unique strategic practice

Question 75

Charles & Keith,a fashion footwear boutique from Singapore,markets itself as not only a fashion specialist but also a provider of a new lifestyle.This is an example of ________.

A) psychographic segmentation
B) demographic segmentation
C) occasion segmentation
D) intermarket segmentation
E) A and D

Question 76

When Burger King targets children,teens,adults,and seniors with different ads and media,it is practicing ________ segmentation.

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

Question 77

The answer to the customer's question "Why should I buy your brand?" is found in the ________.

A) quality image
B) customer services
C) value proposition
D) differentiation
E) pricing and promotion structure

Question 78

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

Question 79

A brand difference is worth establishing and promoting to the extent that it satisfies all of the criteria below EXCEPT which one?

A) important
B) distinctive
C) divisible
D) affordable
E) noticeable

Question 80

When it first opened for business,Home 4 Less claimed to offer better products at lower prices.This difficult to sustain value proposition is called ________.

A) more for the same
B) more for less
C) same for less
D) less for much less
E) all or nothing