Deck 9: Segmentation, Targeting, and Positioning

Question 1

For products like pencils and paper clips, marketers should probably use an undifferentiated targeting strategy.

Answer 1

True

Question 2

Jerome has found that both commercial and residential real estate buyers respond positively to his marketing communication message. Jerome has identified different ________ that respond similarly to his marketing efforts.

A)mass customization consumers
B)geographic segments
C)market segments
D)suppliers and retailers
E)geodemographic segments

Answer 2

C

Question 3

A value proposition compares the price of a product to its benefits.

Answer 3

False

Question 4

Giant Food Stores in suburban Washington, DC, adjusts its ethnic food aisle offerings based on the ethnic groups living near each store. Giant Foods is using geodemographic segmentation.

Question 5

When deciding how to promote her new art gallery, Lila Williams decided that she did not need to throw a large grand opening reception. Instead, she promoted the center to the local artists groups and art schools in the area. Lila Williams was engaged in a concentrated targeting strategy.

Question 6

It would be logical for bathing suit marketers to use geographic segmentation.

Question 7

The program My Starbucks Rewards, is an example of how one business focuses on building customer loyalty.

Question 8

Maintaining a unique value proposition can be sustained in the long term only in monopoly situations or monopolistic competition situations.

Question 9

A company that sells only multigrain, low-calorie bread should use an undifferentiated targeting strategy.

Question 10

The different methods of segmenting a market include targeting, positioning, psychographic, and behavioral.

Question 11

As it relates to positioning, a self-values map displays the position of products or brands in the consumer's mind.

Question 12

Automobile manufacturers could build cars specially designed for very tall people (for example, over seven feet), but it is likely that this segment is not substantial.

Question 13

The Value and Lifestyle Survey (VALS)conducted by Strategic Business Insights (SBI)is a widely used tool for geographic segmentation.

Question 14

NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of its fans were female. This is an example of psychographic segmentation.

Question 15

When a marketer adjusts the marketing mix to give customers a clear, distinctive, desirable understanding of what the product does, the marketer is engaging in psychographic segmentation.

Question 16

A complex product that is best described in writing will be difficult to explain to consumers who are unable to read. For this reason, a segment in which many consumers could not read would be considered unattractive because the consumers would not be responsive.

Question 17

At which point in the STP process does a firm ensure its segmentation strategy is consistent with and derived from its strengths, weaknesses, opportunities, and threats?

A)when the firm chooses a particular method for segmenting its market
B)when the firm articulates the vision or objectives of its marketing strategy
C)when the firm determines which segment is worth pursuing
D)when the firm assesses the attractiveness of a target market
E)when the firm presents the value of its product or service

Question 18

The first step in the segmentation process is to clearly articulate the vision or objectives of the company's marketing strategy.

Question 19

The relationship of a product's price compared to its quality is known as value.

Question 20

The ideal points on a perceptual map indicate when a producer hopes to have a product available for marketing.

Question 21

Beer marketers know that high-school educated, working-class males from the ages of 25 to 40 make an attractive market for their products. This represents a ________ segment of the beer market.

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

Question 22

When Fix-It-Fast, a Montana-based discount hardware chain, sent snow shovels to its Augusta, Georgia, store in April, it was engaged in

A)concentrated segmentation.
B)geodemographic segmentation.
C)benefit segmentation.
D)psychographic segmentation.
E)misguided geographic segmentation.

Question 23

________ segmentation is the segmentation method most directly related to the satisfaction of consumer needs and wants.

A)Geographic
B)Demographic
C)Psychographic
D)Benefit
E)Geodemographic

Question 24

________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach.

A)Geographic
B)Psychographic
C)Behavioral
D)Benefits
E)Demographic

Question 25

Recently the Lego company introduced a new line of toys designed for girls as a response to research which showed the company should market to this largely untapped group. Which type of segmentation revealed this information to the company?

A)geographic
B)geopsychographic
C)psychographic
D)geodemographic
E)demographic

Question 26

Differences in weather and climate create opportunities for marketers to engage in

A)concentrated targeting.
B)geographic segmentation.
C)benefit segmentation.
D)psychographic segmentation.
E)demographic segmentation.

Question 27

Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation

A)is available only in limited geographic areas.
B)is rarely used and unproven.
C)offers only one-to-one marketing potential.
D)is a more expensive method for identifying potential customers.
E)is still an unproven area.

Question 28

Television advertising has recently expanded to include "mini-ads," which are short ads lasting five to ten seconds. These ads are most useful in advertising to men, since men are more likely than women to channel surf during commercial breaks. Given this fact, this type of advertising will be more useful to marketers engaged in ________ segmentation.

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

Question 29

To develop psychographic segments, the marketer must understand consumers'

A)age, income, and education.
B)gender, race, and religion.
C)disposable personal income, benefit perceptions, and alternative egos.
D)self-values, self-concept, and lifestyles.
E)buying patterns and behaviors.

Question 30

Baby Boomers represent a huge demographic segment for travel marketers. Baby Boomers are also heavily motivated by self-fulfillment, which creates the possibility of ________ segmentation.

A)geographic
B)self-concept
C)psychographic
D)benefit
E)behavioral

Question 31

Kellogg's marketing communications about its Special K cereal appeal almost exclusively to women. This is an example of ________ segmentation.

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

Question 32

Psychographics is the segmentation method that delves into how consumers

A)adjust to demographic changes.
B)allocate scarce incomes to a variety of goods and services.
C)describe themselves.
D)value their livelihoods.
E)believe other people see them.

Question 33

Psychographic segmentation has been found to be more useful for marketers than demographics alone as a way to predict consumer behavior, especially for

A)products that have reached the maturity stage in the product life cycle.
B)imported goods and services.
C)products and services that don't exist yet.
D)products that appeal to children.
E)durable goods.

Question 34

If values provide an end goal, and self-concept is the way one sees oneself in the context of that goal, lifestyles are

A)visual images of how we should live our lives.
B)our underlying motivations.
C)how we live our lives to achieve our goals.
D)motivations turned into perceptual maps.
E)determined by demographics.

Question 35

Beverage companies often use television commercials with images of young people laughing and enjoying themselves on a beach or in a club. These images are designed to appeal to consumers' ________, suggesting "be like me."

A)geographic choices
B)self-concepts
C)loyalty references
D)benefit perceptions
E)demographics

Question 36

A university that uses benefit segmentation to target students who want to get a degree while still working full-time would most likely focus on

A)providing classes at convenient times and offering online courses.
B)discount pricing for students taking more than twelve credit hours.
C)the higher average salaries earned by college graduates.
D)the great variety of classes offered.
E)hiring adjunct faculty to provide more variety.

Question 37

More and more women have been posting photos of themselves on social media wearing little to no make-up to emphasize the concept of real and natural beauty. Beauty brands such as Glossier have responded to this trend by producing and marketing a product line that celebrates the natural beauty of women. What type of segmentation method is being used to segment this market?

A)psychographics
B)demographics
C)geographics
D)geodemographics
E)behavior

Question 38

The first step in the STP process is to

A)identify the segmentation methods to be used.
B)produce a list of strengths and weaknesses of the firm's past marketing strategies.
C)establish the overall strategy or objectives.
D)select target markets.
E)develop a marketing mix, so that an appropriate segment can later be identified.

Question 39

VALS is the most widely used ________ segmentation tool.

A)geographic
B)behavioral
C)psychographic
D)benefits
E)geodemographic

Question 40

Shannon is considering using psychographics to segment the market for her small travel agency. This approach to segmentation offers her an advantage because

A)it is based on underlying motivations of target customers.
B)it is easier to use than demographics.
C)the travel business doesn't respond well to other approaches to segmentation.
D)psychographics is the preferred method for service businesses.
E)psychographic segmentation is the least expensive method.

Question 41

Allyce is opening an upscale home decorating store in a growing suburban residential area. Allyce knows her target market is upper-income women living within 20 miles of her store. She can't afford to purchase Tapestry analysis. What would be the best way for her to determine her target area?

A)voter registration lists
B)the city phone book
C)real estate values by subdivision
D)public school enrollment data
E)new construction data

Question 42

Customers at Brent Hill Salons are rewarded with a free haircut after purchasing ten haircuts. This is an example of

A)geographic segmentation.
B)education segmentation.
C)lifestyle segmentation.
D)convenience segmentation.
E)loyalty segmentation.

Question 43

The light beer commercial with the slogan "less filling, tastes great" was based on ________ segmentation.

A)geographic
B)geodemographic
C)psychographic
D)benefit
E)loyalty

Question 44

Carrie's Tennis Camps initially identified active retirees living in the retirement community nearby as one of its target markets. Carrie then tailored service and marketing messages to the interests and schedules of that audience. The company initially used ________ segmentation and then used ________ segmentation.

A)micromarketing; loyalty
B)lifestyle; macromarketing
C)geodemographic; lifestyle
D)geographic; loyalty
E)behavioral; geodemographic

Question 45

The Tapestry™ Segmentation system divides and sorts small neighborhoods into categories using 60 or more characteristics such as income, home value, occupation, and education, as well as activity interests, such as sports, dancing, the arts, and so forth. This market research tool is an example of ________ segmentation.

A)geodemographic
B)benefit
C)psychographic
D)loyalty
E)geographic

Question 46

Marketers often employ a combination of segmentation methods, using ________ to identify and target their customers, and ________ to design products and messages to appeal to them.

A)loyalty segmentation; demographics
B)undifferentiated targeting; differentiated targeting
C)loyalty segmentation; geodemographics
D)demographics and geography; lifestyle or benefit segmentation
E)lifestyle segmentation; geographic segmentation

Question 47

Geodemographic segmentation can be particularly useful for ________, because customers typically patronize stores close to their neighborhood.

A)Internet marketers
B)wholesalers
C)retailers
D)consumer goods manufacturers
E)cable TV networks

Question 48

When Ron complained to his bank's branch manager about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all tellers that Ron was a valued, long-time customer and to provide whatever service he requests. The branch manager is using ________ segmentation to retain Ron as a customer.

A)benefit
B)geodemographic
C)psychographic
D)loyalty
E)geographic

Question 49

Molly's Sweets makes a specialty line of after-dinner mints that they promote to brides and grooms for use as party favors to put next to each guest's place setting at the reception. Which type of segmentation does this represent?

A)geodemographic
B)loyalty
C)psychographic
D)lifestyles
E)occasion

Question 50

Godiva Chocolates produces specially decorated boxes of candies for Valentine's Day, Easter, and Christmas. This is an example of ________ segmentation.

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

Question 51

While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do not help marketers determine

A)how old their customers are.
B)what their customers need.
C)where their customers live.
D)which customers have young children.
E)what income brackets their customers are in.

Question 52

Which segmentation method is being used when M&M's offers special graduation-themed packaging for customized M&M's (imprinted with the name, graduation date, and special messages for the graduate)?

A)occasion segmentation
B)geographic segmentation
C)lifestyle segmentation
D)benefit segmentation
E)loyalty segmentation

Question 53

The phrase "birds of a feather flock together" captures the idea of ________ segmentation.

A)geodemographic
B)benefit
C)psychographic
D)loyalty
E)geographic

Question 54

When Fisher Fine Furniture, an upscale home furniture store, tries to portray an image of "traditional, conservative, and with good taste," it is appealing to its target market's

A)lifestyle.
B)geodemographics.
C)demographics.
D)loyalty.
E)Tapestry segment.

Question 55

Meal-in-a-Minute is a meal-preparation service operating in three states. Customers visit a Meal-in-a-Minute store to select and partially prepare their meals, which are then packaged for the freezer. At home, the customer can pull a meal out of the freezer and warm it in the oven or microwave. If the company wanted to expand into new areas of the United States, what segmentation method would probably be most useful in choosing new locations?

A)loyalty segmentation
B)benefit segmentation
C)psychographic segmentation
D)geodemographic segmentation
E)demographic segmentation

Question 56

Marketers often create a special marketing mix for loyalty segments because these segments are

A)too large to service with ordinary targeting.
B)difficult to identify.
C)costly to acquire.
D)generally profitable.
E)constantly changing.

Question 57

Talbots, an upscale women's clothing store, targets college-educated women between 35 and 55 years old with average household income of $75,000 or more. This is a form of ________ segmentation.

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

Question 58

Social networking sites that compete directly with Facebook have a difficult time surviving; however, LinkedIn has survived by focusing on the needs of business professionals, who seek to network with colleagues, share their expertise, post online résumés, and look for new jobs. What segmentation method is LinkedIn using?

A)loyalty segmentation
B)benefit segmentation
C)psychographic segmentation
D)geodemographic segmentation
E)demographic segmentation

Question 59

Shampoos sold in supermarkets and pharmacies promise various results, such as less frizz, more shine, less breakage, or more body. Shampoo marketers are using ________ segmentation.

A)benefit
B)geodemographic
C)psychographic
D)loyalty
E)demographic

Question 60

One of the reasons marketers use loyalty segmentation is

A)the high cost of finding new customers.
B)government tax incentives.
C)accounting difficulties associated with identifying new customers.
D)rapid population increases.
E)the failure of micromarketing as a workable strategy.

Question 61

Renata is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following factors is least relevant to her analysis?

A)the number of children needing day care in the immediate area
B)the fixed costs of operating the center
C)the percentage of parents able and willing to use day care center services
D)the average number of school-age siblings of children attending day care
E)the charge price minus the variable cost of providing service to each child

Question 62

Claire is assessing the percentage of customers who have not returned to the Coffee-of-the-Month Club to estimate how many might leave on a yearly basis. What process is Claire working on?

A)evaluating the profitability of a segment over a lifetime
B)selecting a target market
C)estimating fixed costs
D)assessing a marketing strategy
E)understanding profit margin percentage

Question 63

With access to the Internet nearly universal in the United States, many potential market segments have become more

A)substantial.
B)perceptive.
C)identifiable.
D)reachable.
E)quantifiable.

Question 64

Kelvin Electronics is known for high-end and expensive electronics targeted to prestigious consumers. Last fall, Kelvin Electronics introduced a mid-priced line of audio products because it knew this would have great potential to appeal to a large consumer market. Kelvin assumed consumers would be pleased to have this more affordable option and decided not to market it separately but to let sales grow from existing customers. It was surprised when sales were minimal and ultimately, the company dropped the lower-priced products. When evaluating segment attractiveness, what aspect did Kelvin fail to consider?

A)repetitive
B)identifiable
C)reachable
D)substantial
E)reactive

Question 65

For products like blankets, which provide the same benefit for all consumers, marketers should probably use a(n)________ strategy.

A)concentrated targeting
B)lifestyle segmentation
C)benefit segmentation
D)undifferentiated targeting
E)differentiated segmentation

Question 66

Abby is looking to expand her pet grooming business and wants to evaluate the profitability of a potential new market. The area she is looking at has 2,000 homes and Abby estimates that 20 percent of them would be likely to use her service. She charges $45 per grooming and on average customers groom their pets six times a year. Abby estimates her variable costs to expand her business will be $10 per grooming and her fixed costs are $10,000. How much profit would Abby make on this new segment?

A)$72,240
B)$98,000
C)$108,000
D)$128,000
E)$410,000

Question 67

Meredith is assessing market growth, market competitiveness, and market access for each segment she has identified. Meredith is assessing the ________ of each potential market segment.

A)substance
B)responsiveness
C)identification
D)reach
E)profitability

Question 68

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to

A)categorize each market segment by consumer demographics.
B)establish her overall objectives.
C)decide on a targeting strategy.
D)develop a positioning strategy.
E)evaluate the attractiveness of each segment.

Question 69

For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's marketing mix. In other words, the market segment must be

A)substantial.
B)perceptive.
C)identifiable.
D)reachable.
E)responsive.

Question 70

Overriding desires that drive how we live our lives are called

A)self-values.
B)self-concept.
C)self-esteem.
D)self-confidence.
E)self-control.

Question 71

In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into "Butterball" turkeys. In doing so, the company

A)differentiated its product.
B)streamlined its delivery process.
C)created a new class of micromarketing.
D)defined consumers' basic needs.
E)redefined mass customization.

Question 72

Based on media habits, college students can be a less ________ market segment because students' media habits are quite diverse and firms might have to use a wide variety of media to attract this segment.

A)substantial
B)perceptive
C)identifiable
D)reachable
E)quantifiable

Question 73

Michael has identified four potential market segments for his Rent-A-Teacher service. He will now compare the segments to see if they are distinct from each other. Michael is evaluating whether or not each segment is

A)identifiable.
B)responsive.
C)profitable.
D)reachable.
E)substantial.

Question 74

Dennis wants to sell personal care products at minimal cost to American soldiers in Afghanistan. Because of the difficulty of communicating with people in a war zone, Dennis may have trouble with this segment not being

A)substantial.
B)perceptive.
C)identifiable.
D)reachable.
E)quantifiable.

Question 75

When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be ________ to the company's offerings.

A)responsive
B)perceptive
C)identifiable
D)reachable
E)quantifiable

Question 76

Bree has identified three potential market segments for her on demand car rental company. She is concerned that the local market isn't large enough and wonders if she should introduce this concept in a large city instead. Which characteristic of segment attractiveness is Bree addressing?

A)substantial
B)responsive
C)profitable
D)reachable
E)realistic

Question 77

When Victoria's Secret offers different product lines, such as its Pink line, it is trying to capture the market by

A)using segmentation, targeting, and positioning.
B)offering everything to everyone.
C)trying lots of options to find out which one works.
D)doing continual test marketing.
E)focusing exclusively on its Pink brand.

Question 78

The manager of Whispering Breeze Country Club wants members of the very upscale club to use the bar and dining facilities more frequently. He offers a two-for-one "happy hour" special but few members show up. The manager does not have a grasp of what would make his target market

A)substantial.
B)responsive.
C)identifiable.
D)reachable.
E)quantifiable.

Question 79

After assessing the market growth potential in Canada for his company's biking gear, Owen wanted to evaluate market competitiveness. To do this, Owen would consider

A)mass marketing of distribution potential and logistical support.
B)the current size of the market and the expected growth rate.
C)ease of pricing control and number of promotional outlets.
D)the number of competitors, entry barriers, and product substitutes.
E)profitability and customer buying behavior.

Question 80

Bethany is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power. Bethany is concerned with whether the segment is

A)substantial.
B)responsive.
C)profitable.
D)reachable.
E)identifiable.