Deck 8: Segmenting and Targeting Markets

Question 1

Clorox describes individuals who buy lots of cleaning products as heavy users.This is an example of how companies use benefit segmentation.

Answer 1

False
Usage-rate segmentation usually describes product usage with categories like heavy and light.

Question 2

The business market consists of four broad segments: producers,resellers,government,and regions.

Answer 2

False
The four segments are producers,resellers,government,and institutions.

Question 3

Abbeville Press published a book by Armin Brott and Jennifer Ash entitled The Expectant Father: Facts,Tips,and Advice for Dads-to-Be..It is an advice book for men whose partners are expecting a baby.The market for this book is based on demographics.

Answer 3

True

Question 4

One reason marketers use market segmentation as a tool is that once completed,the process need not be repeated.

Question 5

Fisher-Price developed a line of toys for infants in China.Babies make up the market for these products.

Question 6

Dakin Farms in Vermont uses mass marketing.Marketers would call the strategy an undifferentiated targeting strategy.

Question 7

In the United States,women tend to be the key household decision-makers for many products,such as home furnishing purchases,vacations,and autos.

Question 8

While it is important to understand potential business customers' buying processes,this is not a helpful segmentation basis.

Question 9

A segmentation plan must produce segments that are accessible-that is,the firm must be able to reach members of targeted segments with customized marketing mixes.

Question 10

A market segment is deemed to have substantiality if it contains a large number of potential customers.

Question 11

A market segmentation study done by the University of Thessaly in Greece classified recreational skiers in terms of their gender,age,and income levels.The study used psychographic segmentation variables.

Question 12

Markets are always segmented by at least two variables.

Question 13

Geodemographic segmentation combines geographic,demographic,and lifestyle segmentations.

Question 14

The 80/20 principle implies that the majority of all demand is due to a minority of the customers.

Question 15

The first step in segmenting a market is to choose a basis or bases for segmenting the markets.

Question 16

Company characteristics,such as geographic location,type of company,company size,and product use,can be important segmentation variables.

Question 17

In market segmentation,individual psychographic variables can be combined with other variables to provide more detailed descriptions of market segments.

Question 18

Fisher-Price is identifying Asian markets that are interested in their line of talking toys.Fisher-Price is engaged in the process of market segmentation.

Question 19

U.S.paint manufacturers traditionally use different formulas for developing paint to be used in the humid Southeast,the frigid Midwest,and the hot and dry Southwest.This is an example of how demographic segmentation is used.

Question 20

Until the 1990s,few firms practiced market segmentation.

Question 21

_____ is the process of dividing a market into meaningful groups that are relatively similar and identifiable.

A)Perceptual mapping
B)Positioning
C)Micromarketing
D)Market sampling
E)Market segmentation

Question 22

The purpose of market segmentation is to:

A)reduce the market down to a size the firm can handle
B)divide the market into equal size and profit regions for sales territories
C)group a large number of markets together,enabling a company to serve them simultaneously
D)develop a generalized definition of the market as a whole
E)enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups

Question 23

Small firms often adopt a concentrated marketing strategy to compete effectively with larger firms.

Question 24

To be useful,a segmentation scheme must produce segments that meet four basic criteria.The criteria are:

A)segmentability,targetability,reliability and validity,and homogeneity
B)tangibility,inseparability,nonperishability,and uniqueness
C)substantiality,identifiability and measurability,accessibility,and responsiveness
D)reliability,flexibility,tangibility,and unbiased
E)complexity,compatability,relative advantage,trialability,and observability

Question 25

Marketers are rediscovering that the "one-size-fits-all" approach to marketing is still relevant.

Question 26

Market segmentation can assist marketers to do all of the following EXCEPT:

A)develop more precise definitions of customer needs and wants
B)identify which variable base should be used for segmenting
C)more accurately define marketing objectives
D)improve resource allocation
E)evaluate performance

Question 27

A _____ is a group of people or organizations that has wants and needs that can be satisfied by particular product categories,has the ability to purchase these products,and is willing to exchange resources for the products.

A)firm
B)buyer
C)market
D)consumer
E)target

Question 28

Increasing share of customer means getting more customers.

Question 29

A group of middle school students stop by a bicycle store.The store has just received a new shipment of high-end racing bicycles.The bicycles range in price from $1,200 to $3,000.All of the students want one of these new bikes,but none has the means to buy one.Is this group of consumers a potential market for the expensive bikes?

A)Yes,they are a potential market since they are all about the same age.
B)No,they do not have the ability to purchase at this time.
C)No,to qualify as a market,they must need the product.
D)Yes,they are a market because this product could satisfy their consumer wants and desires.
E)Yes,they are a market because this group shares relatively similar product needs and purchasing characteristics.

Question 30

The Belly Cast kit by Proud Body helps an expectant mom to make a cast of her pregnant body,decorate it,and keep it for a lifetime.The primary market segment for the Belly Cast kit is:

A)all parents
B)expectant moms
C)recently married couples
D)parents of toddlers
E)collectors of unusual art

Question 31

Product differentiation is a positioning strategy.

Question 32

A product's positioning could be based on product users.

Question 33

All of the following are criteria for successful market segmentation EXCEPT:

A)substantiality
B)identifiability and measurability
C)accountability
D)accessibility
E)responsiveness

Question 34

Home Cookin' Catering would like to improve customer satisfaction and increase repeat business.When you ask the owners to describe a typical customer,they say it is impossible and explain that with corporate functions,family affairs,and fund-raisers,they do not have a typical customer.You suggest it is time for market segmentation because:

A)it will enable them to build an accurate description of customer needs by group and to design a marketing mix to fit each segment
B)the company needs to reduce the size of the market it serves
C)the company needs to learn how to group these markets together into one market to serve all of them adequately
D)it will help develop a generalized definition of the market as a whole and reveal the optimal marketing mix for this market
E)this will position the company in the minds of its consumers as compared to its competitors

Question 35

Consumers' perceptions regarding a product's position cannot be changed.

Question 36

A product's position refers to where it is located on store shelves.

Question 37

A market is people or organizations that have:

A)the ability,willingness,and power to buy.
B)a medium of exchange and products they desire.
C)needs and wants and an ability and willingness to buy.
D)unmet needs or wants and products or services that satisfy those unmet needs or wants.
E)communication,financial,and capital resources.

Question 38

Ford Motor Company produces passenger cars,commercial trucks and specialty vehicles,performance vehicles,and race cars.Ford uses a procedure called _____ to divide its large market.

A)micromarketing
B)positioning
C)market segmentation
D)cannibalization
E)perceptual mapping

Question 39

Procter & Gamble markets six different brands of laundry detergent,such as Tide,Era,Gain,and Dreft,each targeting a different market segment.This is an example of concentrated targeting.

Question 40

A(n)_____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have similar product needs.

A)market universe
B)market segment
C)aggregated market
D)segmentation base
E)population sample

Question 41

A manufacturer of lenses used in microscopes,binoculars,and telescopes has segmented its market into scientific equipment manufacturers,sporting equipment manufacturers,and retailers who sell replacement lenses.In order for this segmentation scheme to be successful,all of the following criteria must be met EXCEPT:

A)substantiality
B)accessibility
C)identifiability and measurability
D)complexity
E)responsiveness

Question 42

The marketing researcher for Bubastis Cat Treats has noticed a growing number of cat owners purchasing organic treats for their pets.The researcher thinks there is a market for organic cat treats,but she's not sure if the segment is substantial.In this case,substantiality means the segment:

A)has enough special stores,magazines,and other outlets that it will be possible to direct advertisements at this group
B)is large enough to permit a profitable market effort toward its members
C)exhibits a response rate to marketing variables different from the rates of other segments
D)is too large and needs to be reduced to a more easily identifiable and measurable size
E)will be difficult to develop a product to match this group of buyers

Question 43

Consumers in Louisiana love hot sauce,and Tabasco and Crystal brands are particularly popular there.Consumers in Michigan do not like hot food,so they purchase very little hot sauce.A national chain of grocery stores would likely use _____ segmentation when stocking condiment merchandise.

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

Question 44

All of the following statements are reasons why consumer goods companies take a regional approach to marketing rather than a national approach EXCEPT:

A)Many firms need to find new ways to generate sales because of sluggish and intensely competitive markets.
B)A regional approach gives marketing managers control over the competitive environment.
C)Computerized checkout stations with scanners enable retailers to assess accurately which brands sell the best in each region.
D)Many packaged-goods manufacturers are introducing new regional brands intended to appeal to local preferences.
E)A more regional approach allows consumer goods companies to react more quickly to competition.

Question 45

Almost all cell phones sold in the United States are black or gray.Almost all cell phones sold in Europe are colorful,and very few black phones are sold.A cell phone manufacturer knowing this information could use _____ segmentation when selling its phones internationally.

A)geographic
B)economic
C)demographic
D)benefit
E)multipositioning

Question 46

The requirement for a market segment to be responsive means:

A)over half of the consumers in the identified segment will be actively interested in the product
B)all the segments identified by a marketer should respond to the marketing mix
C)all the segments identified by a marketer should not respond to the marketing mix
D)the segments identified by a marketer should not differ in the level of their responsiveness to the marketing mix
E)the segment identified by a marketer should differ in how it responds to the marketing mix when compared to another segment confronted with the same mix

Question 47

A research firm has conducted marketing research on the market for metal roofing for homes.The research firm has determined there are thousands of homeowners who want the durability provided by metal roofs.These homeowners are generally married and between 25 and 54 years of age.They tend to live in suburban neighborhoods,and most subscribe to lifestyle magazines.If you were interpreting these results,you might suggest that the research firm:

A)conduct additional research because it has no idea about the measurability of its segments.
B)examine the research report again to see if it can determine segment accessibility.
C)conduct a follow-up analysis to determine if the segments it might choose would respond differently than other segments to its marketing strategy.
D)not segment the concrete siding market because the only market for siding is contractors who build the homes.
E)segment the concrete siding market based on the information provided and concentrate its efforts on suburban homeowners between ages 25 and 54 years who read lifestyle magazines.

Question 48

Scott owns Buffalo Mountain Coffee in Deer Park,Ohio..He understands the need to segment his market,and available marketing research indicates there is much demand in the community for unique coffee drinks.However,he has few resources and cannot engage in intensive consumer research to precisely identify a segment.Which of the following strategies would you suggest he employ?

A)Develop an undifferentiated strategy,because it is not a large community and he could create a single marketing mix that would serve the entire community
B)Employ a macrosegmentation strategy,because the data needed for such a strategy are both easy to get and fit his needs exactly
C)Use a single-variable strategy,because it offers an inexpensive alternative that would not require much experience to employ
D)Use a multiple-variable segmentation strategy,because it is easier to use than single-variable segmentation
E)Conduct a VALS investigation of his buying market

Question 49

The marketing manager of Gevalia gourmet coffees wants to target the gay male consumer because he thinks this segment of consumers appreciates and consumes gourmet coffee.Even though gay lifestyles are becoming more accepted socially,the manager is finding it difficult to determine the market potential for this segment because many gay consumers are not willing to admit their lifestyle publicly.Which criterion of a useful segment does this illustrate?

A)Substantiality
B)Identifiability and measurability
C)Complexity
D)Responsiveness
E)Validity

Question 50

A manufacturer of blankets knows heavy 100 percent wool blankets sell better in the New England area where the winters are harsh and that lighter-weight blankets sell better in the Southeast market where mild winters require fewer and lighter covers for the bed.Segmenting the market according to climate is an example of _____ segmentation.

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

Question 51

Military Spouses is the only publication in the world that targets readers who are "married to the military." Its content reflects the unique set of challenges,hardships,and rewards to those whose spouses are in the military.The marital status that has been used to distinguish the market for this magazine is an example of a(n):

A)market base.
B)selector base.
C)identifier.
D)segmentation base.
E)discriminator base.

Question 52

Many children on the autism spectrum like to chew on clothing,paper,or anything that they can find.Kid Companions manufactures nontoxic,plastic chewable jewelry for kids to wear.The product is a great way to keep kids from chewing on their clothes,while letting them work through their chewing tendencies.However,the company is unsure how to reach parents and therapists with information about their product.This illustrates a segmentation problem with:

A)substantiality.
B)identifiability and measurability.
C)responsiveness.
D)accessibility.
E)accountability.

Question 53

_____ is the segmenting of markets based on the region of the country or the world,market size,market density (number of people within a certain unit of land),or climate.

A)Community segmentation
B)Geographic segmentation
C)Geodemographic segmentation
D)PRIZM segmentation
E)Demonstrated regionalization

Question 54

If a market segment is especially motivated by coupons in newspapers,which segmentation success criterion is most influential in the success of this program?

A)Responsiveness
B)Identifiability and measurability
C)Substantiality
D)Accessibility
E)Functionality

Question 55

Altria Group,Inc.'s Phillip Morris failed at an attempt to target Americans looking for a potentially safer cigarette.This market exhibits a lack of:

A)substantiality.
B)identifiability and measurability.
C)responsiveness.
D)reliability.
E)accessibility.

Question 56

According to the criterion of _____,a selected segment must be large enough to warrant developing and maintaining a special marketing mix.Serving the specific needs of this segment must be commercially viable,even if the number of potential customers is small.

A)causality
B)accountability
C)responsiveness
D)accessibility
E)substantiality

Question 57

_____ are characteristics of individuals,groups,or organizations that marketers use to divide a total market into segments.

A)Differentiation guides
B)Segmentation bases
C)Perceptual maps
D)Responsiveness quotients
E)Accessibility quotients

Question 58

A health club has a new fitness program for expectant mothers.After flyers were placed at the offices of area obstetricians,classes filled up within two days.Which segmentation success criterion was most influential in the success of this promotion?

A)Substantiality
B)Identifiability
C)Measurability
D)Causality
E)Responsiveness

Question 59

Which criterion of useable market segments means the firm must be able to reach members of targeted segments with customized marketing mixes?

A)Substantiality
B)Identifiability and measurability
C)Accessibility
D)Responsiveness
E)Reliability

Question 60

The Coca-Cola Company has over 450 brands in over 195 countries.According to their Web site,their products range from Samurai,an energy drink available in Asia to Vita,an African juice drink.It uses _____ segmentation in this marketing strategy.

A)geographic
B)economic
C)demographic
D)usage-rate
E)multipositioning

Question 61

_____ segmentation is based on personality,motives,and lifestyles.

A)Psychographic
B)Demographic
C)Benefit
D)Family life cycle
E)Character

Question 62

Fisher-Price developed a rugged,waterproof camera for children.This product uses _____ segmentation.

A)ethnicity
B)income
C)age
D)gender
E)occupation

Question 63

A series of stages determined by a combination of age,marital status,and the presence or absence of children is known as the:

A)generation gap.
B)family life cycle.
C)maturation process.
D)segmentation cycle.
E)psychographic process.

Question 64

In Miami,several radio stations broadcast in Spanish and play Latin music for the Hispanic people living in South Florida.The radio stations are using _____ segmentation.

A)usage rate
B)ethnic
C)socioeconomic
D)geographic
E)gender

Question 65

Which of the following businesses would be most likely to use family life cycle segmentation?

A)Those that produce and market computer software and hardware
B)The snack industry
C)Fast-food restaurants
D)Business-to-business marketers
E)Wedding planners,couples-only resorts,and day care centers

Question 66

Modern Bride is a publication that contains articles and lots of ads for the bride-to-be.Many young women consult this magazine as they plan their special day.The segmentation base used to define the publication's target market is based on _____ variables.

A)geodemographic
B)geographic
C)family life cycle
D)lifestyle
E)psychographic

Question 67

Income,ethnic background,gender,and age are all examples of _____ segmentation bases.

A)geodemographic
B)organizational
C)demographic
D)socioeconomic
E)psychographic

Question 68

Redbook magazine targets what it calls "Redbook jugglers," defined as 25- to 44-year-old women who must juggle family,husband,and job.According to a Redbook ad,"She's the product of the 'me generation,' the thirty-something woman who balances home,family,and career-more than any generation before her,she refuses to put her pleasures aside.She's old enough to know what she wants,and young enough to get it." This is an example of _____ segmentation.

A)demographic and psychographic
B)benefit desired and usage rate
C)geodemographic and benefit desired
D)demographic and usage rate
E)benefit desired and demographic

Question 69

While most marketing to Generation Y tries so hard to be hip that it borders on parody,Vans has kept the decades-old brand real and vital for Gen Yers.Marketing programs the footwear manufacturer uses to reach Gen Yers include the Vans Skate Parks,which operate in malls around the country;the wildly successful Vans Warped Tour for alternative music;and the Vans Triple Crown,the brand's answer to the X Games.The segmentation plan used by Vans relies heavily on _____ segmentation.

A)ethnicity
B)income
C)age
D)gender
E)occupation

Question 70

Jane graduated from high school in 1978,is married,and has two teenage children.Most of Jane's friends from high school have children who have already graduated from college and gotten married,and some have grandchildren.Jane and her former classmates are at different stages of the:

A)internalization phase.
B)segmentation process.
C)family life cycle.
D)psychographic cycle.
E)maturation process.

Question 71

Abbeville Press published a book by Armin Brott and Jennifer Ash entitled The Expectant Father: Facts,Tips,and Advice for Dads-to-Be.It is an advice book for men whose partners are expecting a baby..What demographic variables have been used to define the market for this book?

A)Benefit desired and lifestyle
B)Gender and family life cycle stage
C)Age,gender,and personality
D)Benefit desired and gender
E)Usage-rate and lifestyle

Question 72

H&M plans to open a new store in Saudi Arabia.It will be staffed completely by women.Saudi Arabia has strict laws about women interacting with men other than their husbands,so only women will be permitted to shop there.Which type of demographic segmentation is H&M using?

A)Lifestyle
B)Usage rate
C)Benefit
D)Age
E)Gender

Question 73

Johnson Publishing Company,the world's largest African American-owned publishing company and home of Ebony magazine,has forged an alliance with Dan River,Inc.to create luxury bed and bath products for the newly developed Ebony Home brand.This brand will use the strong relationship the publisher has with the African American market to sell the brand.What form of demographic segmentation will be used to market the Ebony Home brand?

A)Geographic
B)Income
C)Ethnic
D)Benefit
E)Lifestyle

Question 74

Which of the following statements about the teen market is TRUE?

A)Teens represent half of all spending in the United States.
B)Teens are technologically savvy and are very social consumers.
C)Teens typically have very little influence over major family purchase decisions.
D)Teens spend a considerable amount of money on health-related purchases.
E)All of the above are true.

Question 75

Colgate manufactures a fruit-flavored SpongeBob Squarepants toothpaste for kids.The age-based variable that distinguishes the market for this product is an example of _____ segmentation.

A)geographic
B)demographic
C)psychographic
D)benefits
E)usage rate

Question 76

Modern Maturity magazine is targeted toward adults aged 50 years and older.It has articles on health and fitness as well as the arts and finance.What segmenting base is Modern Maturity using?

A)Demographic
B)Geographic
C)Nomological
D)Economic
E)Generational

Question 77

Coca-Cola launched a new Black History television commercial on BET to coincide with the Martin Luther King Jr.holiday.The ad is just one element of a strategy for connecting with African American consumers.Coca-Cola's segmentation plan for this promotional campaign is based on _____ segmentation.

A)demographic
B)sociocultural attributes
C)psychographic
D)usage rate
E)geodemographic

Question 78

Deal$ stores sell a wide variety of low-priced merchandise: party supplies,cleaning products,toys,food,housewares,and health and beauty products for both men and women.Many items in the store are priced no higher than one dollar.Which type of demographic segmentation is Deal$ using?

A)Ethnic
B)Usage rate
C)Income
D)Gender
E)Age

Question 79

Evenflo makes baby gates to keep toddlers away from stairs.What demographic segmentation variable will Evenflo use to identify its target market?

A)Gender
B)Benefit
C)Usage rate
D)Family life cycle
E)Ethnic

Question 80

Marketers use _____ to segment markets because this information is widely available,and factors such as age or gender are often related to consumer purchasing and consumption behavior.

A)benefits
B)psychographics
C)demographics
D)usage rates
E)sociocultural attributes