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

Question 1

At one time,Miller Beer was known as the "champagne of bottled beer." Unfortunately,Miller drinkers did not drink much beer.To increase sales,Miller was repositioned to attract the members of the middle-working class.What is this segmentation method called?

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

Answer 1

E

Question 2

Demographic variables are the most popular bases for segmenting customer groups because they ________.

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

Answer 2

D

Question 3

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

A)user rates
B)loyalty segmentation
C)multiple segmentation bases
D)positioning
E)mass marketing

Answer 3

C

Question 4

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

A)copyrighting
B)stereotyping
C)traditional marketing
D)differentiation
E)cannibalization

Question 5

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 6

________ is the process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

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

Question 7

Your current assignment at York Foods is to find the major advantages people look for in product classes,the kinds of people who look for each advantage,and the major brands that deliver each advantage.What is this segmentation method called?

A)benefits sought
B)user status
C)age and life cycle
D)USP
E)psychographic

Question 8

The division of 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 9

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)behavioral
D)psychographic
E)image

Question 10

Dividing the market into segments according to when buyers get the idea to buy,actually make their purchase,or use the purchased item,is called ________ segmentation.

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

Question 11

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

A)geographic
B)age and life-cycle
C)psychographic
D)behavioral
E)usage rate

Question 12

When Pacific Fisheries groups its customers as countries by regions such as Asia,Australia,or New Zealand,it is using which segmentation variable?

A)economic factors
B)political and legal factors
C)geographic location
D)benefits sought
E)demographics

Question 13

Rasco Corp.segments its foreign markets by the income levels of a country's population.This firm segments on what basis?

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

Question 14

Which of the following is the right order of the four steps to design 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 15

When ProFem Inc.caters to clothing,cosmetics,and toiletries markets for women,it is most likely using which type of segmentation?

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

Question 16

________ 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 17

Pediacertain Pet Supplies divides the pet market according to the owners' race,occupation,income,and family life cycle.What type of segmentation is Pediacertain using?

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

Question 18

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)behavior segmentation
E)loyalty status segmentation

Question 19

Procter & Gamble selected the Millennials,a demographic that includes college students,as an untapped group of potential customers for their Febreze line of products.Which step of designing a customer-driven marketing strategy process are they executing?

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

Question 20

Marketers of financial services and travel use which of the following types of segmentation?

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

Question 21

A segment is less attractive when ________.

A)it already contains very few strong and aggressive competitors
B)it is difficult for new entrants to come into the segment
C)it contains powerful suppliers who can control prices
D)no actual or potential substitute products exist
E)buyers have no bargaining power

Question 22

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)concentrated marketing
B)mass marketing
C)mass customization
D)segmented marketing
E)local marketing

Question 23

Under what circumstances would local marketing be the most effective?

A)when pronounced differences in psychographics are present
B)when pronounced similarities in lifestyles are present
C)when pronounced regional and local differences in demographics and lifestyles are present
D)when regional demographics and lifestyles are similar
E)when pronounced similarities in psychographics are present

Question 24

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 segmentation?

A)undifferentiated marketing
B)differentiated marketing
C)markets-of-one marketing
D)concentrated marketing
E)micromarketing

Question 25

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 26

The markets you have chosen to serve in four western states 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 27

By offering product and marketing variations to segments and developing a stronger position within several segments,companies hope to create more total sales through segmented marketing than ________ marketing across all segments.

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

Question 28

MTV targets the world's teenagers,who have similar needs and buying behaviors even though they are located in different countries.This is called ________ segmentation.

A)political and legal
B)cross-cultural
C)cultural
D)intermarket
E)individual

Question 29

Shark Enterprises practices a marketing strategy where its limited resources are used to pursue a large share of two small niches.Shark Enterprises practices which of the following strategies?

A)undifferentiated
B)differentiated
C)mass customization
D)concentrated
E)geographically dispersed

Question 30

When Port Orleans 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)individual
D)mass
E)niche

Question 31

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 ________.

A)niche marketing
B)micromarketing
C)variable marketing
D)geographically dispersed marketing
E)undifferentiated marketing

Question 32

The market segments your company is targeting are conceptually distinguishable and respond distinctively to various marketing mix elements and programs.Therefore,these segments are ________.

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

Question 33

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 ________.

A)market segment
B)target market
C)well-defined market
D)diversification
E)mass customizing

Question 34

It is most accurate to say that successful niche marketing relies on a firm's ________ and its ________.

A)marketing 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 35

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 36

Procter & Gamble sells six brands of laundry detergent in the United States,each designed for one of six laundry 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?

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

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

A)One-to-one
B)Mass
C)Niche
D)Local
E)Variable

Question 38

BritWay Ventures 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 39

When Walmart customizes its merchandise store by store to meet shoppers' needs,it is practicing ________.

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

Question 40

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 41

Some companies can 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 42

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)more-for-more
E)less-for-much-less

Question 43

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

A)image
B)people
C)usage rate
D)user status
E)subliminal

Question 44

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)the-same-for-less
D)less-for-much-less
E)all-or-nothing

Question 45

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

Question 46

Which type of statement first states 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 47

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

A)more-for-the same
B)more-for-less
C)same-for-less
D)more-for-more
E)same-for-more

Question 48

"Less-for-much-less" positioning involves meeting consumers' requirements for ________.

A)moderate quality at a lower price
B)lower quality for a lower price
C)the same quality at the lowest possible price
D)high quality at a discounted rate
E)high quality at the lowest possible price

Question 49

Ford Motor Company emphasizes "Quality first-Ford tough" in its truck products.The company has developed a differentiation strategy based on ________.

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

Question 50

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(n)________ strategy.

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

Question 51

Argonaut Food Stores hires better-skilled employees than the competition by conducting lengthy searches and interviews.Management also trains employees much better than competitors.Argonaut has gained a strong competitive advantage through which type of differentiation?

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

Question 52

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

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

Question 53

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

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

Question 54

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 55

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 56

Neiman Marcus claims superior quality,performance,and style.The owners provide the most upscale products and services and charge a higher price to cover the higher costs.What type of positioning does Neiman Marcus use?

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

Question 57

Through ________,brands can be differentiated on features,performance,or style and design.

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

Question 58

Ad man Rosser Reeves believed that firms should develop a USP for each brand and stick to it.What does USP stand for?

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

Question 59

Superior Auto Sales,a chain of high-end used car dealerships,wants to sum up the company's standing and brand equity in a formal way.Superior's management should use a ________.

A)mission statement
B)vision statement
C)competitive statement
D)positioning statement
E)company statement

Question 60

"For upscale American families,Volvo is the family automobile that offers maximum safety." This is an example of Volvo's ________.

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

Question 61

Your assignment at work is to divide buyers into different groups based on social class,lifestyle,and personality characteristics.After a planning session with the marketing and sales staff,you must issue a memo to upper management recommending psychographic segmentation.

Question 62

A segment becomes less attractive when powerful suppliers can control prices or reduce the quality or quantity of ordered goods and services.

Question 63

As Cruise Ships International currently has limited financial and personnel resources,it should avoid concentrated or niche marketing until resources are again substantial.

Question 64

User status segmentation involves finding the major advantages or features people look for in the product class,the kinds of people who look for each advantage or feature,and the major brands that deliver each advantage or feature.

Question 65

LaGrange Florists segments markets into groups of nonusers,potential users,and regular users of its flowers and services.This firm uses usage rate as the segmentation approach.

Question 66

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

Question 67

Your company wants to move away from mass marketing and engage in customer-driven marketing.The four steps to take,in order,are: market segmentation,market positioning,differentiation,and targeting.

Question 68

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

Question 69

Segmenting international markets based on geographic,economic,political,cultural,and other factors presumes that segments should consist of clusters of countries.

Question 70

In evaluating different market segments,a firm must look at three factors: segment size and growth,segment structural attractiveness,and company objectives and resources.

Question 71

Shopping for the Rich and Famous is a buying service that helps wealthy clients find the best buys in exclusive clothing,high-end cars,travel,and financial services.This firm would use income segmentation.

Question 72

Josie's Gifts Shop divides its markets into units of nations,regions,and cities.Josie's uses geographic segmentation.

Question 73

Demographic segmentation uses different marketing approaches for different time periods of people's lives and different family situations.

Question 74

Because there is such variation among the economies of countries around the world,it is not practical to segment international markets on the basis of economic factors.

Question 75

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

Question 76

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

Question 77

For simplicity's sake,most marketers generally limit their segmentation analysis to one or a few variables.

Question 78

For market segments to be useful,they must be measurable,accessible,substantial,differentiable,and actionable.

Question 79

A segment is more attractive if it already contains many strong and aggressive competitors or if it is easy for new entrants to come into the segment.

Question 80

Clusters of marketable groups of customers with similar likes,dislikes,lifestyles,and purchase behaviors can be identified by multivariable segmentation systems that merge and analyze geographic,demographic,lifestyle,and behavioral data.