Deck 6: Identifying Market Segments and Targets

Question 1

Mothers-to-be are potential users who will turn into heavy users of infant products and services. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________.

A) attitude
B) buyer-readiness stage
C) loyalty status
D) user status
E) benefits

Answer 1

D

Question 2

The dimensions in the VALS framework are consumer resources and ________.

A) marketer resources
B) product innovation
C) consumer maturity
D) impulsiveness
E) consumer motivation

Answer 2

E

Question 3

Newlyweds in the United States buy more in the first six months than an established household does in five years. Newlyweds are an example of a(n) ________ segment.

A) life stage
B) age
C) behavior
D) user status
E) income

Answer 3

A

Question 4

Which of the following statements about Gen Xers is True?

A) Gen Xers are often willing to change brands.
B) Gen Xers are selective, confident, and impatient.
C) Gen Xers are socially conscious and concerned about the environment.
D) Gen Xers prize self-sufficiency and are pragmatic.
E) Technology is a barrier for Gen Xers.

Question 5

Dennis requests his father to buy him a PlayStation® for his birthday. With respect to consumer decision roles, which role is Dennis currently playing?

A) initiator
B) influencer
C) decider
D) buyer
E) gatekeeper

Question 6

When the Modern Museum of Art separated its consumers by whether they were culture-oriented or outdoor-oriented for its new exhibit on art that used natural materials, they were using ________ segmentation.

A) psychographic lifestyle
B) personality
C) behavioral occasions
D) social class
E) demographic

Question 7

When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats?

A) differentiated marketing
B) affiliate marketing
C) guerrilla marketing
D) affinity marketing
E) grassroots marketing

Question 8

Which of the following statements about market segmentation is True?

A) It involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.
B) It is a process of evaluating each segment's attractiveness and selecting one or more to enter.
C) It is a process of creating an image or identity of the product in the minds of the target market.
D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants.
E) It is the quality of how marketers go to market with the goal of optimizing their spending to achieve good results.

Question 9

A marketer is interested in segmenting a business market on ________ if the marketer's variables are loyalty and attitudes toward risk.

A) situational factors
B) purchasing approaches
C) personal characteristics
D) operating variables
E) demographic variables

Question 10

Pampers divides its market demographically on the basis of ________ into prenatal, new baby, baby, toddler, and preschooler.

A) life stage
B) gender
C) age
D) income
E) social class

Question 11

If a marketer is seeking to segment a business market, which of the following variables is generally felt to be the most important?

A) personal characteristics
B) demographic variables
C) situational factors
D) operating variables
E) purchasing approaches

Question 12

A marketer is interested in segmenting a business market on ________ if the marketer intends to segment the market based on industries and geographical areas to serve.

A) demographic variables
B) situational factors
C) operating variables
D) purchasing approaches
E) personal characteristics

Question 13

Establishing and communicating the distinctive benefit(s) of the company's market offering for each target segment is called ________.

A) market research
B) market positioning
C) marketing effectiveness
D) market segmentation
E) market dominance

Question 14

A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can show the firm which brands are most competitive with its own.

A) hard-core loyals
B) split loyals
C) shifting loyals
D) switchers
E) antiloyals

Question 15

Urgency, specific application, and size of order are examples of ________ segmentation variables for business markets.

A) situational factors
B) demographic
C) purchasing approaches
D) personal characteristics
E) operating variables

Question 16

The fact that Honda described its boxy Element as a "dorm room on wheels," but then attracted so many baby boomers that the average age of the Element turned out to be 42 illustrates what quality of baby boomers?

A) being willing to pay for price for valued offerings
B) being turned off by overt marketing practices
C) being pragmatic and prizing self-sufficiency
D) wanting to purchase online
E) wanting to turn back the hands of time

Question 17

The process of selecting one or more market segments to enter is called market ________.

A) targeting
B) dominance
C) positioning
D) segmentation
E) research

Question 18

A marketer is interested in segmenting a business market based on technology and customer capabilities. These criteria illustrate which of the following major segmentation variables?

A) demographic variables
B) purchasing approaches
C) situational factors
D) personal characteristics
E) operating variables

Question 19

________ is the science of using psychology and demographics to better understand consumers.

A) Psychographics
B) Interactionism
C) Clustering
D) Demographic transition
E) Customerization

Question 20

In segmenting its markets, an aluminum company first looked at which end-use market to serve: automobile, residential, or beverage containers. This is an example of ________.

A) macrosegmentation
B) microsegmentation
C) geographic segmentation
D) global segmentation
E) short-term segmentation

Question 21

Marketers can assume that people who buy a given product want the same benefits from it.

Question 22

Illustrations of personality segmentation would include culture-oriented, sports-centered, or outdoor-oriented subsegments.

Question 23

Briefly describe the characteristics of the Millennials.

Question 24

Describe the PRIZM method of segmenting consumer markets.

Question 25

A ________ offering consists of two parts: a naked solution and discretionary options.

A) differentiated market
B) flexible market
C) rigid market
D) vertical market
E) horizontal market

Question 26

Identify ways in which shopping behaviors differ between men and women.

Question 27

Local marketing reflects a growing trend called grassroots marketing. What are the characteristics of grassroots marketing?

Question 28

For segmenting a business market, situational factors include urgency, specific application, and size of order.

Question 29

Door-to-door workers in a political campaign use attitude to determine how much time to spend with each voter.

Question 30

With respect to business market offerings, if a marketer emphasizes a naked solution, he or she is emphasizing the product and service elements that all segment members value.

Question 31

Demographic variables are popular because they are often associated with consumer needs and wants and they are easy to measure.

Question 32

A local service company has decided to segment its market based on occupation; therefore, it has chosen a form of demographic segmentation for its approach.

Question 33

Hard-core loyals can show the firm which brands are most competitive with its own.

Question 34

Not everyone is in favor of local marketing. Identify two arguments made against local marketing.

Question 35

Suppose a marketer decides to segment a market based on social class, psychographic lifestyle, and readiness stage. For each type of segmentation, give at least three possible segmentation subcategories.

Question 36

Business segmentation based on purchasing approaches may divide the market by technology, user and nonuser status, and general purchasing policies.

Question 37

A market segment consists of a group of consumers who share a similar set of needs and wants.

Question 38

List the four groups of consumers based on loyalty status.

Question 39

Identify the four market segment groups based on brand loyalty status, and list what a company can learn from analyzing the degrees of brand loyalty.

Question 40

When marketers present flexible market offerings to all members of a business segment, their offerings consist of two parts. Which part contains the product and service elements that all segment members value?

A) naked solution
B) discretionary solution
C) maximum solution
D) pseudo solution
E) virtual solution

Question 41

The last step in the seven-step marketing segmentation process would be to develop a marketing-mix strategy reflective of segment positioning strategies.

Question 42

If married and unmarried women respond similarly to a sale on perfume, these hypothetical segments fail the ________ criterion for useful market segments.

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

Question 43

To be useful, a market segment should be ________, which means the largest possible homogeneous group worth going after with a tailored marketing program.

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

Question 44

What are some examples of situational factors that can be used to segment business markets?

Question 45

List the five forces identified by Michael Porter that determine the intrinsic long-run attractiveness of a market or market segment.

Question 46

For a segment to meet the ________ criterion of usefulness, the marketer must be able to formulate effective programs for attracting and serving the segments.

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

Question 47

Which of the following statements is True about the five forces identified by Michael Porter that determine the intrinsic long-run attractiveness of a market or market segment?

A) A segment is unattractive if the company's suppliers are unable to raise prices or reduce quantity supplied.
B) A segment is unattractive if buyers possess strong or growing bargaining power.
C) A segment is attractive when there are actual or potential substitutes for the product.
D) A segment is attractive if it already contains numerous, strong, or aggressive competitors.
E) The most attractive segment is one in which entry barriers are low and exit barriers are high.

Question 48

In the ________ step of the market segmentation process, the marketer determines which demographics, lifestyles, and usage behaviors make each needs-based segment distinct and identifiable.

A) segment "acid test"
B) segment attractiveness
C) segment profitability
D) need-based segmentation
E) segment identification

Question 49

To be useful, market segments must rate favorably on five key criteria. What are those criteria?

Question 50

During which step of the needs-based segmentation process would the marketer group customers into segments based on similar needs and benefits sought by the customer in solving a particular consumption problem?

A) Step 2-segment identification
B) Step 3-segment attractiveness
C) Step 6-segment "acid test"
D) Step 1-needs-based segmentation
E) Step 7-marketing-mix strategy

Question 51

The characteristic of useful market segments that relates to whether the segments can be effectively reached and served is whether the segment is ________.

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

Question 52

In the ________ step of the market segmentation process, the marketer evaluates the segment using criteria such as market growth and market access.

A) need-based segmentation
B) segment identification
C) segment attractiveness
D) segment profitability
E) segment "acid test"

Question 53

The most attractive segment is one in which entry barriers are low and exit barriers are high.

Question 54

If your assignment was to create a value proposition and product-price positioning strategy for each segment, based on the segment's unique customer needs and characteristics, you would be in which of the following steps of the segmentation process?

A) needs-based segmentation
B) segment identification
C) segment attractiveness
D) segment positioning
E) segment "acid-test"

Question 55

A segment is attractive when there are actual or potential substitutes for the product.

Question 56

A flexible market offering consists of two parts. Identify and describe these two parts.

Question 57

To be useful, market segments must be measurable.

Question 58

If an organization's marketing department wants to create "segment storyboards" to test the attractiveness of each segment's positioning strategy, it would most likely occur in the ________ step of the segmentation process.

A) needs-based segmentation
B) segment identification
C) segment profitability
D) segment "acid test"
E) marketing-mix strategy

Question 59

Briefly describe the steps in the segmentation process.

Question 60

A segment is unattractive if the company's suppliers are able to raise prices or reduce quantity supplied.

Question 61

Marketers usually identify niches by ________.

A) dividing a segment into subsegments
B) conducting VALS tests
C) allowing consumers to gravitate toward product brands
D) examining the demographics section of the handbook of marketing
E) producing products that can be used in a variety of ways

Question 62

In evaluating different market segments, the firm must look at two factors: the segment's overall attractiveness and the ________.

A) company's objectives and resources
B) effectiveness of the suppliers
C) flexibility of legal rules governing the business
D) socio-economic infrastructure
E) global nature of the product

Question 63

List the three premises on which Anderson's long tail theory is based, and summarize the research testing his idea.

Question 64

In ________ marketing, the firm ignores segment differences and goes after the whole market with one offer.

A) niche
B) mass
C) guerrilla
D) segmented
E) differentiated

Question 65

All attempts to target marketing to children, minorities, or other special segments are discriminatory and unethical.

Question 66

Explain the concept of mass marketing.

Question 67

Give an example of how a company might target products to children in an ethical way.

Question 68

Which of the following best represents the chief advantage of pursuing a strategy of multiple segment specialization?

A) It makes the company almost bulletproof to competitors' actions.
B) It diversifies the firm's risk.
C) It creates synergy between markets.
D) It is a low-cost strategy.
E) It treats all buyers the same and, therefore, lowers promotion costs.

Question 69

In ________ marketing, the firm operates in several market segments and designs different products for each segment.

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

Question 70

An attractive niche consists of customers having a distinct set of needs.

Question 71

The ultimate level of segmentation leads to "segments of one," "customized marketing," or "one-to-one marketing."

Question 72

List the threats posed by the five forces identified by Michael Porter that determine the intrinsic long-run attractiveness of a market or market segment.

Question 73

An undifferentiated marketing approach to full market coverage designs a marketing program for a product with a superior image that can be sold to the broadest number of buyers.

Question 74

General Motors, a leading American multinational automaker, sells cars for every purpose, budget, and personality. This is an example of ________ marketing.

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

Question 75

Briefly describe product specialization and market specialization.

Question 76

Volkswagen concentrates on the small-car market and Porsche on the sports car market. These would be examples of what is called ________.

A) single-segment concentration
B) selective specialization
C) product specialization
D) market specialization
E) full market coverage

Question 77

All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment's needs, a strong market presence, operating economies through specializing in production, distribution, and promotion.

A) single-segment concentration
B) selective specialization
C) product specialization
D) market specialization
E) full market coverage

Question 78

The niche marketing strategy used by Tom's of Maine, which used concentrated marketing, is in line with an individual marketing strategy.

Question 79

Briefly describe single-segment concentration with an example.

Question 80

Assume that you have decided to use a niche strategy to advance your marketing goals. Characterize an attractive niche.