Deck 7: Market Segmentation and Target Marketing

Question 1

Firms must choose only one alternative at a time, because targeting strategies are exclusive.

Answer 1

False

Question 2

Mass marketing is appropriate for a hotel chain.

Answer 2

True

Question 3

When using a market segmentation strategy, a firm tends to lose control of costs because of the number of segments it competes in.

Answer 3

False

Question 4

Demographic segmentation divides a market according to the activities, interests, and opinions of consumers.

Question 5

Geo-targeting breaks a country into large regions; it does not consider urban and suburban differences within a city.

Question 6

Behaviour response segmentation helps explain why two individuals who appear to be identical in age, sex, and income have different reasons for buying goods and services.

Question 7

Henry Ford's introduction of the Model "T"was the first example of mass customization.

Question 8

A brand is "democratized"if customers can control the marketing of the brand through an online consumer voting process.

Question 9

Real estate companies and mortgage companies are using behaviour response segmentation over traditional mass media.

Question 10

Age is a sub-segment of demographic segmentation.

Question 11

Technology is an important factor in the growth and adoption of direct segmentation and behavioural marketing.

Question 12

Marketers refer to the target market profile when making decisions regarding both the product attributes and the advertising messages developed to promote the product.

Question 13

Targeting a young female business executive who lives in the suburbs of Toronto involves only geographic segmentation.

Question 14

The Lexus campaign appealing to "bold achievers" is an example of a psychographic segmentation strategy.

Question 15

Jaguar cars appeal to an upscale, status-conscious market segment. This is an example of micro-marketing.

Question 16

Distributing trial coupons for a new soft drink to medium and heavy soft drink users is an example of behaviour response segmentation.

Question 17

At the beginning of a niche market, niche marketers draw a lot of attention from major competitors.

Question 18

Niche marketing is equally suited to large companies and small companies.

Question 19

Phil and Sabastian, a local Calgary coffee roaster-coffee shop, has been successful in the premium coffee segment with its micro-marketing strategy.

Question 20

Head & Shoulders dandruff shampoo follows a benefits-sought segmentation strategy.

Question 21

Many mainstream customers are attracted to niche marketing efforts.

Question 22

Nike's website, which enables shoppers to design their own shoes including colour and personalizing the tongue with a word or phrase, is an example of mass customization.

Question 23

Positioning strategies are determined only after the target market has been identified and a product developed to meet the needs of that target.

Question 24

Once a brand's positioning has become set in the customer's mind, there is little marketers can do to change it.

Question 25

CIBC recently repositioned itself as a more flexible, more personal banking option.

Question 26

"Coke is it,"and "Can't beat the real thing"are examples of Coke's successful marketing communications to support their brand leadership positioning.

Question 27

The "Pepsi Challenge"is a classic example of a head-on positioning attempt by a brand challenger.

Question 28

Gillette Fusion ProGlide razor ads, which focus on the flexball technology that promise a smoother, closer shave, is a good example of technical innovation positioning.

Question 29

Market challengers such as Pepsi are likely to employ a product differentiation positioning strategy.

Question 30

Repositioning Apple iPhone would make sense if consumers felt the iPhone was not up to date in technology and sales were dropping.

Question 31

Using psychographic information to develop marketing communications that appeal to consumers on an emotional level has been used effectively for categories such as alcohol, perfume, and travel.

Question 32

The target market profile, or description of a market segment, can be based on any combination of demographic, psychographic, geographic, and behaviour response variables deemed to be relevant.

Question 33

A group of people who have similar needs that can be satisfied by a product or service as well as have the resources and willingness to purchase the product or service are called

A) a market.
B) a niche market.
C) a resource market.
D) a potential market.
E) a target market.

Question 34

When firms use one marketing strategy to target a broad range of consumers, they practise

A) corporate marketing.
B) concentrated marketing.
C) target marketing.
D) market segmentation.
E) mass marketing.

Question 35

When is mass marketing most appropriate?

A) when a product enjoys widespread acceptance
B) when resources are limited
C) when the product is in a purely competitive market
D) when the product is in a monopoly
E) when the product is standardized

Question 36

A sound mass marketing strategy should

A) offer as many choices to as many consumers as possible.
B) focus on local market needs.
C) be part of the corporate mission statement.
D) emphasize sales rather than profits.
E) appeal to a broad range of consumers.

Question 37

Segmentation strategies are based on the premise that

A) mass marketing isn't as profitable.
B) reaching distinct segments is always more cost efficient.
C) various media offer better discounts for companies targeting specific segments.
D) there is always more wasted media coverage when appealing to the mass market.
E) it is preferable to tailor strategies to distinct user groups where the competition may be less.

Question 38

Targeting a product line to one particular sub-segment and committing all marketing resources to the satisfaction of that sub-segment is referred to as

A) product development.
B) market diversification.
C) niche marketing.
D) targeting.
E) market differentiation.

Question 39

Mass marketing would be appropriate for which of the following services?

A) high-end jewellery retailer
B) long-distance telephone service
C) luxury car dealer
D) exotic food delicatessen
E) exclusive spa resort

Question 40

Most mass markets are divided into smaller homogeneous groups with similar needs. This practice is known as

A) craft marketing.
B) market segmentation.
C) branding.
D) direct marketing.
E) niche marketing.

Question 41

An organization that practises ________ marketing implements one basic strategy to appeal to a broad range of consumers.

A) mass
B) direct
C) brand
D) segment
E) niche

Question 42

Direct segmentation refers to a situation where unique marketing programs are designed to meet the needs and preferences of

A) many customers.
B) brand-loyal customers.
C) business-to-business customers.
D) geotargeted customers.
E) individual customers.

Question 43

A market is

A) a geographical area where products are sold.
B) a group of people who have similar needs for a product or service.
C) a group of people with similar characteristics.
D) a group of consumers who are brand loyal.
E) an organization of companies who buy cooperatively.

Question 44

Walmart engages in which level of market segmentation by offering everyday prices and product selection that attracts a wide cross-section of the North American population?

A) customer relationship marketing
B) direct marketing
C) mass marketing
D) niche marketing
E) large segmentation

Question 45

A marketing system that can produce products and personalized messages to individual customers is

A) mass marketing.
B) micro-targeting.
C) mass segmentation.
D) direct positioning.
E) mass customization.

Question 46

Marketers tailor their marketing strategies to distinct user groups where ________ and opportunities can be greater.

A) distribution networks are established
B) competition may be less
C) they have more experience with the products
D) advertising costs are less
E) products are mature

Question 47

What is a database-driven marketing system that tracks a consumer's behaviour to determine his or her interests and then serves ads to that person relevant to those interests called?

A) mass customization
B) niche targeting
C) direct marketing
D) niche marketing
E) behavioural targeting

Question 48

What are the four main types of characteristics used to identify different customer segments?

A) psychological, behavioural, age, and education
B) geographic, demographic, psychographic, and behavioural
C) psychographic, media consumption, demographic, and geographic
D) demographic, religion, education, and psychographic
E) demographic, psychographic, education, and media consumption

Question 49

In terms of demographic trends in Canada, it can be said that

A) Generation X will soon be the most important to marketing organizations.
B) the birthrate is growing significantly.
C) the birthrate is growing steadily.
D) the population is aging.
E) women now earn significantly more than men.

Question 50

Home Depot has drawn large crowds to its workshops offered in Cantonese in Richmond, British Columbia, and Punjabi in Brampton, Ontario. What segmentation variable are they using?

A) behavioural
B) geographic
C) demographic
D) psychographic
E) niche marketing

Question 51

Nike has introduced an online store that allows customers to design their own shoes by selecting colours, styles, and personalized messages to be included in the stitching. This is an example of

A) behavioural targeting.
B) mass customization.
C) market segmentation.
D) mass marketing.
E) target market profiling.

Question 52

Which of the following occurs when a company seeks out opinions from customers and lets the consumer interact with and make changes to the brand?

A) behavioural targeting
B) psychographic marketing
C) market segmentation
D) mass marketing
E) brand democratization

Question 53

Segmentation according to the activities, interests, and opinions of consumers is referred to as

A) lifestyle marketing.
B) psychographic segmentation.
C) demographic segmentation.
D) lifestyle segmentation.
E) geodemographic segmentation.

Question 54

Micro-marketing involves the development of marketing strategies on

A) a regional basis.
B) a customer-by-customer basis.
C) a low-cost basis.
D) a short-term basis.
E) an extreme niche basis.

Question 55

Psychographics consider

A) income, education, culture, and occupation.
B) an individual's gender.
C) an individual's geodemographics.
D) an individual's activities, interests, and opinions.
E) an individual's level of education.

Question 56

When a company describes the ideal customer around which it plans to devise and deliver its marketing strategy, it has developed a

A) democratic brand.
B) market integration.
C) position.
D) marketing persona.
E) target market profile.

Question 57

Which of the following is an example of a demographic variable?

A) a growing interest in the environment
B) an emphasis on leisure time
C) rising interest rates
D) the growth of urban centres
E) the evolving ethnic mix

Question 58

Lisa's long, curly hair can be difficult to manage. When she purchases hair care products, she is looking for something that will tame her hair. Lisa is part of a marketing segment that is based on

A) usage rate.
B) benefits sought.
C) occasion for use.
D) market differentiation.
E) degree of brand loyalty.

Question 59

Snowboarding equipment is targeted at men and women aged 10-30 years. This target market is described in terms of

A) loyalty response.
B) geographics.
C) psychographics.
D) demographics.
E) behaviouristics.

Question 60

Home Depot, in its attempts to target women, offers "Do-It-Herself"workshops on various renovations. What kind of segmentation is this?

A) psychographic
B) behaviour response
C) demographic
D) geodemographic
E) geographic

Question 61

A home improvement retailer targeting dual-income, traditional families clustering in suburbia is using

A) behaviour response segmentation.
B) metropolitan segmentation.
C) geographic segmentation.
D) geodemographic segmentation.
E) psychographic segmentation.

Question 62

An Ontario pickle manufacturer only sells regular baby dill pickles in Toronto. He is practising

A) micro-marketing.
B) psychographic segmentation.
C) urbanization.
D) mass marketing.
E) niche marketing.

Question 63

Which of the following organizations is least likely to depend on psychographic segmentation strategies?

A) Walmart
B) Adventure Tours
C) Ford
D) Labatt
E) Porsche

Question 64

Chocolates packaged in a red, heart-shaped box are an example of a product developed because of

A) demographic segmentation.
B) behaviour response segmentation.
C) psychographic segmentation.
D) geodemographic segmentation.
E) seasonal segmentation.

Question 65

Robin Hood Multifoods markets flour for use in bread-making machines. What type of market segmentation are they using with this product?

A) psychographic segmentation
B) geographic segmentation
C) demographic segmentation
D) behaviour response segmentation
E) geodemographic segmentation

Question 66

What percent of the Canadian population does Statistics Canada anticipate visible minorities will represent by 2017?

A) 10%
B) 15%
C) 20%
D) 25%
E) 30%

Question 67

The degree of brand loyalty is important to consider in a segmentation strategy. What kind of segmentation variable is loyalty?

A) usage response
B) geodemographic
C) demographic
D) psychographic
E) behaviour response

Question 68

Procter & Gamble markets six laundry detergents to appeal to different consumer needs in the laundry detergent market. What market positioning strategy are Procter & Gamble practising?

A) brand leadership
B) lifestyle
C) product differentiation
D) head-on
E) innovative

Question 69

What kind of positioning strategy is the "Pepsi Challenge"?

A) challenger
B) product differentiation
C) comparison
D) head-on
E) lifestyle

Question 70

Harley-Davidson focuses on the super-heavyweight motorcycle market segment. This is an example of

A) market penetration.
B) mass marketing.
C) niche marketing.
D) product differentiation.
E) market integration.

Question 71

BMW is a luxury car that appeals to "bold achievers."What positioning strategy does this represent?

A) innovation
B) lifestyle
C) product differentiation
D) brand leadership
E) demographic

Question 72

What is the strategy called when companies tailor their marketing activities to homogeneous groups?

A) market integration
B) niche marketing
C) market segmentation
D) mass segmentation
E) direct segmentation

Question 73

Ford wants its trucks to be known for their rugged durability. This describes the ________ for the product.

A) marketing goal
B) market segment
C) positioning
D) segmentation strategy
E) target market

Question 74

Positioning refers to

A) the types of retailers that sell the product.
B) the product's shelf location in a store.
C) the marketing strategy behind a product launch.
D) the availability of a product in the marketplace.
E) customers' perception of a product relative to competing products.

Question 75

Aaron is a new marketing executive hired by Mercedes. His first project is to plot Mercedes's major competitors on a graph showing their quality/price positioning. Aaron is developing

A) a positioning map.
B) a positioning diagram.
C) a relationship map.
D) a product differentiation map.
E) a competitive analysis map.

Question 76

The battle between the market leader and the challenger in the battery market (Duracell and Energizer) is an example of ________ positioning.

A) head-on
B) lifestyle
C) technological innovation
D) brand leadership
E) market follower

Question 77

On the basis of consumer taste tests, Diet Pepsi advertises that consumers prefer the taste of its product to the taste of Diet Coke. What type of positioning strategy is this?

A) corporate warfare
B) niche marketing
C) product differentiation
D) brand dominance positioning
E) head-on positioning

Question 78

Tetley Canada, with its unique, round teabag, practises a ________ positioning strategy.

A) product differentiation
B) head-on
C) brand leadership
D) lifestyle
E) technical innovation

Question 79

Tesla is known for its introduction of unique new products. Tesla uses a ________ positioning strategy.

A) technical innovation
B) head-on
C) brand dominance
D) product differentiation
E) lifestyle

Question 80

Panasonic advertises their small appliances as "slightly ahead of our time."This is an example of

A) head-on positioning.
B) brand-dominance positioning.
C) repositioning.
D) lifestyle positioning.
E) technical innovation positioning.