Deck 7: Targeting Attractive Market Segments

Question 1

Macrosegmentation groups customers by the characteristics of the individuals who influence the purchasing decision.

Answer 1

False

Question 2

Product usage is important because in many markets a small proportion of potential customers makes a high percentage of all purchases.

Answer 2

True

Question 3

With the increase in education,the purchase of insurance,theater tickets,and photographic equipment has decreased.

Answer 3

False

Question 4

Geodemographics attempts to predict consumer behavior by making demographic,psychographic,and consumer information available at the block and zip code or postcode levels.

Question 5

In today's market,there is an increasingly important trend toward microsegmentation,in which extremely small market segments are targeted.

Question 6

Identifying a homogeneous segment that differs from other segments is the final step of the market segmentation process.

Question 7

Market segmentation based on sources of purchase influence for the product category is relevant only for industrial markets.

Question 8

The strategy of treating the people of developing countries as a single market segment has been successfully implemented by many companies.

Question 9

Segmentation by lifestyle segments markets on the basis of who the consumers are in a demographic sense.

Question 10

Customer needs are expressed in benefits sought from a particular product or service.

Question 11

Geographic segmentation is important in retailing and many services businesses,where customers are unwilling to travel very far to obtain the goods or services they require.

Question 12

Maturing of product-markets in developed countries has reduced the intensity of competition in those markets.

Question 13

VALS 2 is a U.S.segmentation service that is built on the concept of self-orientation and resources for the individual.

Question 14

General product-related attributes such as product usage and loyalty can be used to segment consumer markets but not industrial markets.

Question 15

Age and occupation are demographic descriptors that are used to segment consumer markets.

Question 16

Principle-oriented consumers shop for products that demonstrate the consumer's success.

Question 17

Choice criteria refers to the product alternatives available to the average consumer.

Question 18

A trade area is the common platform where suppliers and buyers come together to discuss about their future transactions.

Question 19

Behavioral attributes can take many forms,including those based on consumer needs;on product usage patterns;on more general behavioral patterns,including lifestyle.

Question 20

Segmentation decisions are best made in one of the three ways: based on who the customers are,what the customers can afford,or what the competitive offerings are.

Question 21

Market segmentation is the process of:

A)dividing a market into distinct subsets of relatively homogeneous customer groups that differ from others.
B)positioning the product offering in different geographical areas.
C)changing customer demands so that they fall into homogeneous subsets.
D)segregating a market into segments of relatively heterogeneous consumer groups.

Question 22

Which of the following is NOT true in the context of today's market?

A)Population growth in most developed countries has accelerated,creating a number of opportunities for the maturing product-markets.
B)Social and economic forces have produced customers with more varied and sophisticated needs and tastes.
C)There is an increasingly important trend toward microsegmentation in which extremely small market segments are targeted.
D)Many marketing organizations have made it easier to implement sharply focused marketing programs by more sharply targeting their own services.

Question 23

In a centralized purchase situation,the buyer is apt to be more sensitive to the user's need,to emphasize product quality and fast delivery,and to be less cost-conscious.

Question 24

Target marketing is the process of:

A)segmenting the market.
B)marketing only to the high usage portion of the market.
C)changing consumer demand for distinct segments so that it matches target profiles.
D)deciding which segments to pursue.

Question 25

Purchasing structure is the degree to which the purchasing activity is centralized.

Question 26

The first step in constructing a market-attractiveness/competitive-position matrix involves weighing market attractiveness and competitive position factors to reflect their relative importance.

Question 27

The flattening of the world has flattened unique cultural and national characteristics,and the idiosyncratic preferences of customers.

Question 28

Firms aiming a single product and marketing program at the mass market are always successful in their marketing endeavors.

Question 29

_____ entails designing product offerings and marketing programs that can establish an enduring competitive advantage by creating a unique brand image in the customer's mind.

A)Product positioning
B)Target marketing
C)Product placement
D)Brand positioning

Question 30

Assessing the attractiveness of markets or market segments involves assessment of demographic,sociocultural,economic,political/legal,technological and natural trends that influence demand in that market.

Question 31

In differentiated marketing,separate products and marketing programs are designed for the differing segments.

Question 32

Each market segment consists of:

A)people with different needs and wants in terms of particular features,but who are willing to pay approximately the same amount for a product type.
B)people with similar needs and characteristics that lead them to respond in a similar way to a particular product offering and marketing program.
C)people who are similar with regard to specific characteristics,such as age,income,or sex,regardless of their product needs.
D)a diverse group of people who share some characteristic,such as the Baby Boom generation,regardless of their product interests.

Question 33

The market-attractiveness/competitive-position matrix allows managers to decide which segments to target and how resources and marketing efforts should be allocated.

Question 34

Dividing the market for a particular type of automobile into customers who seek style and customers who seek durability is an example of:

A)mass marketing.
B)product positioning.
C)demand function modification.
D)market segmentation.

Question 35

Macro trends are generally more favorable for companies like Coca-Cola in emerging markets with rapidly growing middle classes.

Question 36

Most entrepreneurial ventures that target narrowly defined market segments at the outset are not successful.

Question 37

Market-attractiveness factors include customer needs and behavior,market or market segment size and growth rate.

Question 38

Hyatt group of hotels announces a new marketing program that features excursions and social events for teenagers.Which of the following demographic descriptors is reflected in this case?

A)Sex
B)Education
C)Age
D)Income

Question 39

Which of the following is the first step in the market segmentation process?

A)Specify criteria that define the segment
B)Determine segment size and potential
C)Identify a homogeneous segment that differs from other segments
D)Create a unique brand image

Question 40

Household life cycle can best be used as a basis for segmenting markets for _____.

A)candles
B)cigarettes
C)insurance plans
D)computer modems

Question 41

All of the following are examples of factors to be considered in assessing competitive position EXCEPT:

A)management strength and depth.
B)financial and functional resources.
C)brand image.
D)market growth rate.

Question 42

Which of the following demographic descriptors is used at the microsegmentation the process of segmentation of industrial markets?

A)Age of the firm
B)Size of the firm
C)Industry affiliation
D)Sex of the decider

Question 43

Which of the following is a factor underlying market attractiveness?

A)Stage of competing products in product life cycle
B)Growth rate in units,revenue,number of prospective customers
C)Firm and competitor capabilities and resources
D)Opportunity for competitive advantage

Question 44

Touch mobile service providers observes that the 55-65 and the 65-plus segment with their high disposable incomes and their ability to devote time to new habits are a lucrative market opportunity for them.So they focus on this segment to increase the usage and penetration of Touch mobile's services.Which of the following demographic descriptors is being used as the basis for this market segmentation?

A)Age
B)Education
C)Occupation
D)Sex

Question 45

The degree to which a company's purchasing activity is centralized is known as:

A)purchasing segregation.
B)purchasing structure.
C)product usage.
D)purchase predisposition.

Question 46

In a centralized buying situation,the buyer is apt to:

A)be more sensitive to the user's need.
B)emphasize product quality.
C)minimize risk.
D)be less cost-conscious.

Question 47

The final step in constructing a market attractiveness/business position matrix is to:

A)assess the current position of each potential target market on each factor.
B)choose segments to target and allocate resources.
C)project the future position for each segment.
D)identify key factors underlying attractiveness and competitive position dimensions.

Question 48

The buying situation attribute includes three distinct types of situations.These are:

A)new buying;repeat buying;and customized buying.
B)buy;rebuy;and modified rebuy.
C)alternative evaluation;recommendation;and purchase.
D)straight rebuy;modified rebuy;and a new buying situation.

Question 49

Which of the following is true of the decentralized buying situation?

A)The buyer is apt to be less sensitive to the user's need.
B)The buyer is apt to emphasize product quality.
C)The buyer is apt to be less cost-conscious.
D)The buyer is apt to emphasize fast delivery.

Question 50

Psychographics seeks to:

A)group consumers based on product usage.
B)segment consumers into various income groups.
C)group consumers on the basis of their psychological and financial needs.
D)group consumers on the basis of their activities,interests,and opinions.

Question 51

Having segmented a given market,the firm then determines which segments to target by using the _____ matrix.

A)environmental position/market attractiveness
B)environmental position/technological position
C)competitive position/environmental position
D)market attractiveness/competitive position

Question 52

With the increase in the education the purchase of:

A)theater tickets decreases.
B)photographic equipment decreases.
C)insurance increases.
D)magazines remain unaffecteD.

Question 53

Which of the following steps involved in the construction of a market attractiveness/business position matrix requires that evidence-typically both qualitative and quantitative data-be collected to objectively assess each of the identified criteria to measure market attractiveness?

A)Choose criteria to measure market attractiveness and competitive position
B)Assess the current position of each potential target market on each factor
C)Project future position for each segment
D)Rate segments on each factor and plot results on matrices

Question 54

Kaleidoscope Inc.markets its range of fashion magazines only in New York and its range of agricultural magazines only in the Illinois area.This is an example of _____ segmentation.

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

Question 55

Which strategy involves serving one or more segments that,while not the largest,consists of a sufficient number of customers seeking somewhat-specialized benefits from a good or service?

A)Growth market strategy
B)Niche market strategy
C)Undifferentiated market strategy
D)Peripheral market strategy

Question 56

Tag Heuer comes up with a new range of luxury watches,targeting the rich and privileged section of the market that has the resources to buy luxury cars and other luxury goods.Which of the following demographic descriptors is being emphasized in this case?

A)Sex
B)Education
C)Income
D)Race

Question 57

The first step in constructing a market attractiveness/competitive position matrix involves:

A)assessing the current position of each potential target market on each factor.
B)projecting the future position of each market based on expected environmental,customer,and competitive trends.
C)identifying the most relevant criteria to measure market attractiveness and competitive position dimensions.
D)developing a business strategy to assess product performance.

Question 58

The characteristics that consumers use to evaluate brand alternatives in terms of how valuable each of these characteristics is to that consumer are referred to as:

A)purchase predispositions.
B)purchase structure.
C)choice criteria.
D)product criteria.

Question 59

Diva,a clothing retailer,targets women between the ages of 25 to 55,earning an annual income of $80,000 or more,in a five-mile radius of their store.Which type of descriptor is being used in this case?

A)Education
B)Geodemographics
C)Race and ethnic origin
D)Events

Question 60

_____ are expressed in benefits sought from a particular product or service.

A)Customer needs
B)Product usages
C)Purchase influences
D)Market attractiveness factors

Question 61

Mary Land group of hotels designs different brand name hotels for different market segments such as families,business-people,and low-budget travelers.This is an example of _____ market strategy.

A)niche
B)differentiated
C)growth-market
D)shotgun

Question 62

Identify the steps in constructing a market-attractiveness/competitive-position matrix for evaluating potential target markets.

Question 63

When competitive position is weak and the market attractiveness is high,the firm's primary approach should be to:

A)invest to build.
B)build selectively.
C)manage for earnings.
D)protect and refocus.

Question 64

Pick three distinct stages of the household life cycle and identify products that might be more frequently purchased at each stage.

Question 65

Discuss the three important steps in the market segmentation process.

Question 66

In the context of mass market,designing separate products and marketing programs for the differing market segments is called _____.

A)niche marketing
B)growth marketing
C)exclusive marketing
D)differentiated marketing

Question 67

What are the demographic attributes used to segment consumer markets?

Question 68

Trilogy,a cell phone manufacturing company has come out with a new model Vogue.This model is conceived and marketed as a "universal" cell,one that would meet the needs of all buyers.By eliminating optional features,the company is able to reduce costs and sell the product at an affordable price.This is an appropriate example of _____.

A)niche-marketing strategy
B)growth-marketing strategy
C)target marketing strategy
D)mass-marketing strategy

Question 69

When both the competitive position and the market attractiveness are weak,the firm's primary approach should be to:

A)invest.
B)build selectively.
C)divest.
D)protect and refocus.

Question 70

When firms develop unique marketing programs for each targeted country's consumers,they are segmenting on the basis of _____ and are assuming _____ among members of a market.

A)country/homogeneity
B)culture/heterogeneity
C)psychographics/homogeneity
D)demographics/heterogeneity

Question 71

When competitive position is medium and the market attractiveness is high,the firm's primary approach should be to:

A)invest to build.
B)build selectively.
C)manage for earnings.
D)protect and refocus.

Question 72

What are the basic target market selection strategies?

Question 73

A highly attractive target market,in which a firm holds a medium strength position,becomes unattractive.What would be the most appropriate strategic focus for the firm in this case?

A)Move from invest to build,to manage for earnings
B)Move from invest to build,to divestment
C)Move from build selectively,to manage for earnings
D)Move from build selectively,to divestment

Question 74

Distinguish between market segmentation,target marketing,and brand positioning.

Question 75

When competitive position is strong and the market attractiveness is low,the firm's primary approach should be to:

A)invest to build.
B)build selectively.
C)manage for earnings.
D)protect and refocus.

Question 76

What are the factors that have made market segmentation one of the most dominant approaches to market strategy in recent years?

Question 77

What are the most important factors in assessing market attractiveness and competitive position?

Question 78

A(n)_____ is designed to avoid direct competition with larger firms who are pursuing the bigger segments.

A)growth-market strategy
B)undifferentiated market strategy
C)peripheral market strategy
D)niche-market strategy

Question 79

Complete the following Market Attractiveness and Competitive Position chart (bold numbers are given,the remaining numbers in the "Total" column need to be calculated by the student).Using the results from the chart,complete a market attractiveness-competitive position matrix where 0-3 is low,4-7 is moderate and 8-10 is high on both axis.

Question 80

Do you think that market segmentation based on sources of purchase influence for the product category is relevant for both consumer and organizational markets? Give reasons to support your answer.