Deck 4: Segmentation,Targeting,and the Marketing Mix

Question 1

A marketer of Kikkoman brand soy sauce would need to stimulate selective demand for its new line of low-sodium sauces.

Answer 1

True
Explanation: Selective demand is stimulated to convince consumers to buy a particular brand.

Question 2

Exchange is the traditional trading of values between two entities facilitated by marketing.

Answer 2

True
Explanation: Any transaction in which a person or organization trades something of value with someone else is an exchange.Marketing facilitates these exchanges,thus increasing our potential for satisfaction.

Question 3

Advertisers can use NAICS codes to obtain lists of companies in particular businesses for direct mailings.

Answer 3

True
Explanation: The NAICS codes help companies segment markets and do research,and advertisers can even obtain lists of companies in particular NAICS divisions for direct mailings.

Question 4

The target market for Fulla,a doll designed to embody the image of a proper Muslim woman is Arab parents.

Question 5

The process of market segmentation is a three-step process that begins with planning,then goes to product definition and ends with market identification.

Question 6

A target market can be classified into two types,namely,consumer markets and business markets.

Question 7

A marketer of Muir Glen brand organic soups would want to stimulate primary demand for its brand of soups.

Question 8

When the manufacturer of Kikkoman brand soy sauce introduced Kikkoman brand low-sodium soy sauce,it used private labeling.

Question 9

One of the primary roles of advertising is to communicate product utility.

Question 10

Differences between products that are readily apparent are called visible differences.

Question 11

The distribution and promotion cost in selective distribution tend to increase as the number of outlets gets limited.

Question 12

Network marketing is also called pyramid marketing.

Question 13

Advertising for a movie that tells you the movie is a "family-filled riot of fun" is using benefit segmentation.

Question 14

Brand equity is the totality of what consumers,distributors,deals and competitors feel and think about a brand over an extended period of time.

Question 15

To reach people who love to hunt,markets would use psychographic segmentation.

Question 16

Psychographics are useful in the marketing of all products.

Question 17

Demographic segmentation would most likely be used to sell Fulla,a doll designed to embody the image of a proper Muslim woman.

Question 18

Purchase occasion is one way marketers create benefit segmentation.

Question 19

The first step in market aggregation is to determine the primary demand trend within the targeted market.

Question 20

Consumers are immune to psychological pricing.

Question 21

Distinguish between primary demand and selective demand.

Question 22

Explain the target marketing process.

Question 23

Discuss the push and the pull strategy with respect to the product life cycle.

Question 24

What is the basic goal of any positioning strategy?

Question 25

What is purpose does North American Industry Classification System (NAICS)codes serve?

Question 26

Explain how the concept of shared characteristics relates to the marketing segmentation process.

Question 27

Once a company decides to use indirect rather than direct distribution,it must choose one of the three strategies of distribution.Discuss what each choice means in terms of product availability to final consumers.

Question 28

List the most important factors for advertising success.

Question 29

What are the stages in a product life cycle? Discuss each stage in brief.

Question 30

What do you understand by 'utility' of a product?

Question 31

Discuss importance of product differentiation with respect to perceptible differences,hidden differences,and induced differences.

Question 32

List in order the four major stages in the product life cycle.

Question 33

Distinguish between an individual brand,a family brand,a national brand and private labels.

Question 34

What is marcom? What are the tools used in marketing communications?

Question 35

There is an ad for the Braun Oral-B Plaque Remover (an electric toothbrush)in an issue of Dentistry Today,the nation's leading clinical news magazine for dentists.The full-page ad encourages dentists to try out the system themselves and to recommend it to their patients.To which type of market is the advertisement targeted? Briefly explain your answer.

Question 36

What are the two steps that make up the market segmentation process?

Question 37

List the four variables used in behavioristic segmentation.

Question 38

What are business markets?

Question 39

What do you understand by the term 'product element'?

Question 40

What is the second step in the market segmentation process? Discuss briefly.

Question 41

Over the past decade,brands that were once available exclusively to the wealthiest among us have created more affordable product extensions,giving a far broader range of consumers a taste of the good life.Jaguar,for instance,recently launched its X-type sedan,which starts at $30,000 and is meant for the "almost rich" consumer who aspires to live in luxury.By marketing to people who desire a luxurious lifestyle,Jaguar is using:

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

Question 42

Several new editions of the Bible have recently been published.One is called Refuel: The Complete New Testament for Guys.Revolve: The Complete New Testament is targeted to 17-year old girls.The Sports Devotional Bible is targeted to Christian sports fans.What type of segmentation strategies are Bible publishers using?

A)Psychodemographic
B)Behavioristic
C)Geodemographic
D)Demo-clustering
E)Psychographic and demographic

Question 43

The ad for Pepperidge Farm products reads,"Filling your kitchen with delicious aromas is a great way to ensure that your Thanksgiving holiday will be full of joyful anticipation".It would seem that the manufacturer of these products is using:

A)demographic segmentation.
B)behavioristic segmentation.
C)temporal segmentation.
D)psychographic positioning.
E)lifestyle segmentation.

Question 44

With ____,marketers group people by their values,attitudes,personality and lifestyle.

A)demographics
B)psychographics
C)geodemographics
D)attitudinal positioning
E)lifestyle positioning

Question 45

People who might buy Muir Glen brand organic soups are vegetarians,people who want to try something different,people who like soup,people who don't have time to cook and people who worry about putting chemicals in their bodies.These various groups who may be in the market for Muir Glen soups are all examples of:

A)innovators.
B)market segments.
C)market aggregations.
D)diffusers.
E)buying centers.

Question 46

Gary Silva,senior vice president of sales,U.S.Auto Parts Group at Genuine Parts,says NAPA doesn't have a cookie-cutter layout but builds stores based on market need,with each designed independently."It would be easier if all the stores had the exact same layout,but it's not the right thing to do for independent owners because some areas have more professional customers and others have more do-it-yourselfers",he explained.From this information,you know that NAPA targets both _____ markets.

A)domestic and international
B)internal and external
C)demographic and psychographic
D)business and consumer
E)non-controllable and controllable

Question 47

The Visitors Bureau of Greenville,Mississippi,uses an ad with the following headline: "Join some others who got inspired here" and then lists the famous authors that came from this area of the state.The message in this headline indicates the city is using _____ to attract tourists.

A)psychographic positioning
B)benefit segmentation
C)demographic segmentation
D)geodemographic segmentation
E)volume segmentation

Question 48

Through marketing research,Prudential Insurance discovered that about 40 percent of its sales were initiated by current customers rather than company insurance agents.With this knowledge it used what kind of behavioristic segmentation variable to segment its market into Prudential policy holders and non-policy holders?

A)User status
B)Usage rate
C)Volume
D)Purchase occasion
E)Demographic

Question 49

Which of the following is an example of a variable used in demographic segmentation?

A)Behavior
B)Personality
C)Purchase occasion
D)Usage rate
E)Income

Question 50

According to the text,market segmentation is a two-step strategic process.The first step is to:

A)conduct advertising research that determines consumers' reactions to various ad campaigns.
B)identify groups of people with certain shared characteristics within the broad product market.
C)locate as many market niches as possible.
D)develop place,time and possession utility.
E)determine which personal influences will have the appropriate effect on consumers.

Question 51

In the health care industries,strategies that target women are becoming increasingly prevalent because capturing the female patient means influencing the vast majority of health care decisions made for families and the fact women use health services more frequently than men.If you are a health care provider,you would want to use _____ segmentation.

A)demographic
B)psychographic
C)diffused
D)geographic
E)psychological

Question 52

Cell phone companies spend many advertising dollars appealing to people who are already heavy users of cell phones to encourage them to buy plans that offer them additional minutes.These cell phone companies are using:

A)purchase-occasion segmentation.
B)psychographic positioning.
C)demographic segmentation.
D)lifestyle segmentation.
E)volume segmentation.

Question 53

According to the research of Stephan and Tannenholz,_____ are the most brand loyal group and require the least amount of promotion.

A)early adopters
B)innovators
C)sole users
D)early majority
E)laggards

Question 54

A manufacturer of wax for snow skis must offer different versions of its product so that it will work in areas where the snow tends to be wet and heavy,in regions where the snow is hard-packed and in places where the snow is a fine powder.These modifications in response to regional differences are referred to as _____ segmentation.

A)demographic
B)psychographic
C)geographic
D)volume
E)psychological

Question 55

_____ is the product's ability to satisfy both functional needs and symbolic wants.

A)Market position
B)Product satisfaction
C)Product equity
D)Product utility
E)Market satisfaction

Question 56

The Values and Lifestyles (VALS)typology uses a two-dimensional structure based on:

A)geographic variables and consumer perceptions.
B)consumer behavior and product characteristics.
C)primary motivation and resources.
D)self-orientation and product differentiation.
E)target marketing strategy and product positioning strategy.

Question 57

Hard apple cider is making a comeback.Cider consumption should hit 15 million cases annually this decade.Early adopters of cider are the same group that first gravitated to the microbreweries.Apple cider's drinkers like the notion that it is basically a fruit drink.It conjures up healthy associations and appeals to people who do not view themselves as serious connoisseurs.What segmentation variable would you recommend Woodchuck draft cider use to define its market?

A)Usage rate
B)Geographic
C)Demographic
D)Psychographic
E)Purchase occasion

Question 58

Harris Teeter is a chain of supermarkets in the Atlanta area.In one of its stores in a predominantly Jewish neighborhood,the store has three rabbis on staff who make sure the foods sold at the store are kosher.Each of the other Harris Teeter stores has distinct characteristics that ally it with the neighborhood in which it is located.The chain is using _____ segmentation.

A)geodemographic
B)psychographic
C)behavioristic
D)geographic
E)psychological

Question 59

Many people give fine chocolates as Christmas presents to friends and co-workers.The only time of year you will see Ferro Rocher chocolates advertised is during November and December as the company tries to create awareness for its product in the minds of consumers looking for that perfect utilitarian gift.This would be an example of:

A)purchase-occasion segmentation.
B)psychographic positioning.
C)demographic segmentation.
D)lifestyle segmentation.
E)volume segmentation.

Question 60

Home builders are using _____ segmentation to target people over 55 with homes that have wheelchair-friendly door widths,lever door handles,roll-out shelves,raised toilets and direct 911 wiring.

A)demographic
B)psychographic
C)diffused
D)geographic
E)psychological

Question 61

The sale of traditional brands of chocolate candy bars is declining.The manufacturers of candy have noticed that the demand for energy-boosters is up.As a result,they have introduced a new type of candy bar called "buzz bars." The new candy bars have 60 milligrams of caffeine,plus taurine and B vitamins.The candy industry had to create _____ for buzz bars.

A)primary demand
B)par value
C)secondary demand
D)utilitarian worth
E)market value

Question 62

Which of the following marketing activities most likely takes place in the business market?

A)The sale of a hammer to a do-it-yourselfer.
B)The rental of an apartment by a college student.
C)The purchase of babysitting services for a small child.
D)The purchase of a case of Campbell's brand soup by a supermarket.
E)The payment of a fee to a divorce lawyer.

Question 63

What is the next step for a marketer once market segmentation has been done?

A)Target marketing process
B)Budgeting process
C)Creating brand equity
D)Selection of the promotional objectives
E)Competitive assessment

Question 64

The _____ refers to the bundle of values built into a product aimed at satisfying various functional,social,psychological,economic and other consumer needs and wants.

A)total product concept
B)marketing mix
C)targeted product
D)product attribution
E)product utility

Question 65

To appeal to a new target market,the maker of Hill's coffee has changed the product's package design,reformulated the coffee,begun advertising price discounts in women's magazines and started distributing the product through gourmet coffee shops.What exactly has been changed?

A)The product's perceptual value
B)The product's 4Ps
C)The method used in its target marketing
D)The ownership of the product line
E)The product's utility

Question 66

The _____ element of the marketing mix includes the way the product is designed and classified,positioned,branded and packaged.

A)utility
B)communication
C)distribution
D)product
E)customer

Question 67

The North American Industry Classification System (NAICS)codes:

A)will soon be replaced by the strategic industrial classification (SIC).
B)is published by the North American Treaty Alliance.
C)organizes all industries in our economy into 20 broad sectors.
D)has little relevance for marketers outside the United States.
E)are top secrets which cannot be shared with outsiders.

Question 68

The _____ for Huggies disposable washcloths with extra gentle baby wash built right in is first-time parents who have a good supply of discretionary income and who value their time more highly than they value their environment.

A)product utility
B)customer group
C)target market
D)market aggregate
E)marketing mix

Question 69

Which of the following is the most likely potential target market for a manufacturer who is licensed by World Wrestling Entertainment (WWE)to make Halloween costumes based on characters seen in WWE matches?

A)People who enjoy Olympic wrestling.
B)Pre-teen males who wish to emulate one of the WWE wrestlers.
C)People who believe the WWE promotes violence.
D)Children of parents who are sports enthusiasts.
E)Anyone who has attended a WWE match.

Question 70

Drawing on almost 50 years of experience,Cotton Council International (CCI),the export promotion arm of the National Cotton Council is devoted to expanding U.S.cotton exports by capitalizing on consumer preference for cotton fiber and its products.CCI spends promotional dollars advertising the benefits of 100 percent cotton clothing.CCI uses:

A)indirect consumer marketing.
B)promotion equity.
C)scrambled promotion.
D)a push strategy.
E)a pull strategy.

Question 71

When the pharmaceutical companies began advertising directly to consumers,it was an example of ____.The pharmaceutical companies realized that consumer demand influences which medications a physician will prescribe.

A)indirect consumer marketing
B)promotion equity
C)scrambled promotion
D)a push strategy
E)a pull strategy

Question 72

A pizza restaurant buys fountain Coca-Cola,which it sells to its customers.The pizza restaurant is an example of a(n):

A)consumer market.
B)VALS market.
C)reseller.
D)wholesaler.
E)business-to-business market.

Question 73

Which out of the following factors is one of the bases for making purchase decisions in the business market and should be emphasized in their promotional appeals?

A)Product demonstrations
B)Brand equity
C)Wholesaler
D)Retailer
E)Market concentration

Question 74

Before starting Pedigree Pajamas,the owner of the company realized that he was treating his dog as if it were a child and that a lot of his friends did the same thing.So in what he perceived as a dog-friendly environment,he launched a line of doggie pajamas-available from size 6 for Chihuahuas to size 30 for Great Danes.The ads for Pedigree Pajamas had to convince people that dogs slept better in pajamas.A product that has to create primary demand is more than likely in the _____ stage of the product life cycle.

A)pioneering
B)introductory
C)maturity
D)growth
E)revitalization

Question 75

_____ is the pattern of attitudes and activities that help people reinforce,sustain or modify their social and self-image.

A)Primary motivation
B)Attribution theory
C)Reciprocal activation
D)Perceptual motivation
E)Motivational mapping

Question 76

Seagrams of North America provides its resellers with elaborate point-of-purchase displays to encourage the resellers to stock and promote the distillery's products.In this example,Seagrams is using:

A)penetration strategy.
B)diversification strategy.
C)divestiture strategy.
D)a push strategy.
E)a pull strategy.

Question 77

When compared to consumer markets,business markets:

A)contain many more buyers.
B)have more systematic purchasing procedures.
C)can be segmented using psychological variables.
D)have more dispersed markets.
E)cannot be segmented by end users.

Question 78

Consumer demand for a whole product category such as DVD players,pickles or laptop computers is called _____ demand.

A)primary
B)selective
C)positioned
D)category
E)introductory

Question 79

Two bowling alleys are three miles apart.Customers came to the bowling alley on the eastside of town for relaxation and exercise.The priority wasn't exclusively on bowling;the activity could just as easily have been billiards or swimming.The customers at bowling alley on the Westside of town went bowling primarily to meet and interact with friends.Many of the league bowlers in this facility were employed in repetitive task jobs.The lanes were a place to compete with their peers and excel.This question describes the _____ for using the bowling alleys.

A)primary motivation
B)attribution theory
C)reciprocal activation
D)perceptual motivation
E)motivational mapping

Question 80

Which of the following statements about the target marketing process is true?

A)The target marketing process will determine the content,look and feel of a company's advertising.
B)The first step in the target marketing process is to develop primary demand in a target market.
C)To perform the target marketing process correctly,an advertiser must select one and only one target market.
D)From the view of a marketer,the target marketing process begins with the setting of the advertising budget.
E)The first step in target marketing is to assess the viability of the markets identified by the market segmentation process.