Deck 8: Segmentation, Targeting, and Positioning

Question 1

(p.255-256,Chapter case study)Coca-Cola introduced Coke Zero to increase sales without taking away from its existing product sales.Which of the following is NOT true about this effort?

A)Segmentation and targeting were of little use compared to developing special advertising.
B)The word "diet" was not used in promotion because the target segment of men did not react favorably to the "girly" connotations.
C)A special fantasy football game was created to promote the product to the targeted segment.
D)Although Coke has more than 400 products,sales to a carefully targeted segment can greatly increase total sales.
E)Although the market for cola is mature,Coke plans to adapt the current products and services to meet the needs of changing market climate using the segmentation ideas developed in the launch of Coke Zero.

Answer 1

A

Question 2

The STP process is made up of strategy,targeting and promotion.

Answer 2

False

Question 3

When deciding how to promote his new medical oncology center,Dr.Jones decided that he did not need to throw a large grand opening reception.Instead,he promoted the center to the internal medicine doctors in the area,who were the doctors most likely to refer patients to the center.Dr.Jones was engaged in a concentrated targeting strategy.

Answer 3

True

Question 4

Giant Food Stores in suburban Washington,D.C.,adjusts its ethnic food aisle offerings based on the ethnic groups living near each store.Giant Foods is using geodemographic segmentation.

Question 5

Segmentation,targeting and positioning:

A)are terms that can be used interchangeably in developing marketing plans.
B)are part of a firm's marketing strategy.
C)should be done simultaneously so synergies can help streamline the effort.
D)are part of the marketing plan but bear little direct relationship to the marketing mix.
E)All of these.

Question 6

A complex product that is best described in writing will be difficult to explain to consumers who are unable to read.For this reason,a segment in which many consumers could not read would be considered unattractive because the consumers would not be responsive.

Question 7

NASCAR redirected its marketing efforts when a survey indicated that almost fifty percent of its fans were female.This is an example of psychographic segmentation.

Question 8

Perceptual maps include positions of current brands as well as ideal points where a segment would want a product to be.

Question 9

A company that sells only multi-grain,low calorie bread should use an undifferentiated targeting strategy.

Question 10

A self-values map displays the position of products or brands in the consumer's mind.

Question 11

Automobile manufacturers do not manufacture cars specially designed for very tall people,as this segment is not substantial.

Question 12

The first step in the STP process is to establish a strategy.

Question 13

The Value and Lifestyle Survey (VALS)conducted by SRI Consulting Business Intelligence is a widely used tool for geographic segmentation.

Question 14

(p.255,Chapter case study)Coca-Cola launched Coke Zero to avoid cannibalizing current sales and to attract new customers in a segment they might not get with Diet Coke.

Question 15

Sally is in the new marketing department of a mid-sized lawn and garden company.She is working on the first marketing plan the firm has ever used.She has defined the mission and objectives,and she just finished a situation analysis for the firm.The next step is to:

A)develop an advertising plan to promote the upcoming sales.
B)find marketing interns or hire new staff to help with implementation.
C)create pro forma financial statements to complete the package.
D)identify and evaluate opportunities by conducting segmentation,targeting and positioning analysis.
E)use the Internet,catalogs and vendor information to draw up a list of new products.

Question 16

Alex has found that both commercial and residential real estate buyers respond positively to his marketing communication message.Alex has identified ____________ that respond similarly to his marketing efforts.

A)mass customization consumers
B)geographic segments
C)market segments
D)self-concept customers
E)geodemographic segments

Question 17

For products like pencils and paperclips,marketers should probably use an undifferentiated targeting strategy.

Question 18

It would be logical for bathing suit marketers to use geographic segmentation.

Question 19

When a marketer adjusts the marketing mix to give customers a clear,distinctive understanding of what the product does,the marketer is engaging in psychographic segmentation.

Question 20

Positioning strategies generally focus either on how the product benefits the consumer or on how it is better than competitors' products.

Question 21

When Mr.How,a Pennsylvania-based discount lumber and hardware chain,sent snow blowers to its Augusta,Georgia store in April,it was engaged in:

A)concentrated segmentation.
B)geodemographic segmentation.
C)benefit segmentation.
D)psychographic segmentation.
E)misguided geographic segmentation.

Question 22

When Penguin Catering Services first opened,the owner decided to target only events at resorts in its geographic region.Penguin Catering was using a(n)______________ targeting strategy.

A)concentrated
B)micromarketing
C)benefit-driven
D)differentiated
E)undifferentiated

Question 23

The first step in the STP process is to:

A)identify the segmentation methods to be used.
B)produce a list of strengths and weaknesses of the firm's past marketing strategies.
C)clearly articulate the firm's vision or marketing strategy objectives.
D)select target markets.
E)develop a marketing mix,so that an appropriate segment can later be identified.

Question 24

NASCAR redirected its marketing efforts when a survey indicated that almost fifty percent of race fans were female.This is an example of ______________ segmentation.

A)geographic
B)psychographic
C)demographic
D)benefits
E)behavioral

Question 25

In a classic example of segmentation strategy,years ago Swift Meat Company transformed turkey meat into "Butterball" turkeys.In the process,the company:

A)differentiated its product.
B)avoided the SARS virus.
C)created a new class of micromarketing.
D)raised consumers' self-concepts.
E)redefined mass customization.

Question 26

Television advertising has recently expanded to include "mini-ads," which are short ads lasting five to ten seconds.These ads are most useful in advertising to men,since men are more likely than women to channel surf during commercial breaks.This type of advertising will be more useful to marketers engaged in ________________ segmentation.

A)demographic
B)psychographic
C)behavioral
D)benefits
E)geographic

Question 27

__________________ is an extreme form of a targeting strategy.

A)Macromarketing
B)Micromarketing
C)Benefit marketing
D)Differentiated targeting
E)Concentrated targeting

Question 28

Adidas Group owns Reebok,Rockport,and Greg Norman brands.Adidas uses the different brands to pursue a(n)________________________ strategy.

A)concentrated targeting
B)micromarketing
C)benefit targeting
D)differentiated targeting
E)undifferentiated targeting

Question 29

For each target market,General Imaging Corporation,a manufacturer of imaging equipment,will engage in positioning,adjusting their marketing mix variables in order to give customers:

A)better Medicaid and Medicare payments.
B)a perceptual map of the imaging landscape.
C)more product features than the competition offers.
D)lower prices than the competition offers.
E)a clear,distinctive,and desirable understanding of their products relative to competing products.

Question 30

For products like pencils and paperclips,which provide the same benefit for all consumers,marketers should probably use a(n):

A)concentrated targeting strategy.
B)lifestyle segmentation strategy.
C)benefit segmentation strategy.
D)undifferentiated targeting strategy.
E)all of these.

Question 31

____________________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach.

A)Geographic
B)Psychographic
C)Behavioral
D)Benefits
E)Demographic

Question 32

Beer marketers know one very attractive segment is 25-40 year old,high school-educated,working-class,males.This is a _______________ segment of the beer market.

A)demographic
B)psychographic
C)behavioral
D)benefits
E)geographic

Question 33

Many companies use the Internet to allow consumers to design customized products; for example,Nike allows customers to order shoes with custom color combinations.This is a form of:

A)micromarketing.
B)concentrated targeting.
C)psychographic segmentation.
D)differentiated targeting.
E)undifferentiated targeting.

Question 34

One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify its business and:

A)decrease advertising spending.
B)focus on a single market segment.
C)lower overall risk.
D)use undifferentiated strategies in micro markets.
E)all of these.

Question 35

"Corporate pilot fish" are former employees who start a new business based primarily on contacts and contracts with their old company.A corporate pilot fish would probably pursue a ________________ targeting strategy.

A)macromarketing
B)micromarketing
C)benefit-based
D)differentiated
E)undifferentiated

Question 36

Although a differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market,this strategy:

A)is the cheapest option.
B)requires the use of advanced advertising techniques.
C)rarely works.
D)is often expensive.
E)is ineffective without multiple brand names.

Question 37

Adidas Group owns Reebok,Rockport,and Greg Norman brands.Having a variety of brands allows Adidas to:

A)engage in micromarketing for hard-to-fit shoe customers.
B)obtain a bigger share of the shoe market.
C)use mass marketing techniques.
D)utilize geographic segmentation.
E)generate economies of scale in advertising expenditures.

Question 38

Firms use a differentiated targeting strategy because:

A)it is easier than mass marketing.
B)it helps to obtain a bigger share of the market.
C)it is better than focusing on individual or small groups of potential customers.
D)most market segments are too small to be profitable.
E)banks are more willing to extend credit to companies with this strategic approach.

Question 39

Four frequently used targeting strategies are the micromarketing,undifferentiated,differentiated and ________________ targeting strategies.

A)geographic
B)benefit-based
C)economic
D)global
E)concentrated

Question 40

Differences in weather and climate create opportunities for:

A)concentrated targeting.
B)geographic segmentation.
C)benefit segmentation.
D)psychographic segmentation.
E)demographic segmentation.

Question 41

Innovators,Thinkers,Achievers,and Experiencers are VALS classifications based on:

A)motivation.
B)income.
C)health.
D)innovativeness.
E)all of these.

Question 42

Paul is considering psychographics as a way to segment the market for his small travel agency.This approach to segmentation offers him an advantage because:

A)it is based on behaviors and underlying reasons why people make choices.
B)it is easier to use than demographics.
C)the travel business doesn't respond well to other approaches to segmentation.
D)psychographics is the preferred method for service businesses.
E)psychographic segmentation is the least expensive method.

Question 43

Marketers have found that ___________________ segmentation is often more useful for predicting consumer behavior than ________________ segmentation.

A)demographic; psychographic
B)geographic; geodemographic
C)psychographic; demographic
D)demographic; behavioral
E)demographic; benefit

Question 44

The Lite beer commercial with the slogan,"less filling,tastes great," was based on ______________ segmentation.

A)geographic
B)geodemographic
C)psychographic
D)benefit
E)loyalty

Question 45

A university targeting students based on the benefit of getting a degree quickly and without interfering with the rest of the students' lives would emphasize:

A)providing classes at convenient times and offering online courses.
B)discount pricing for students taking more than twelve credit hours.
C)the higher average salaries earned by college graduates.
D)the great variety of classes offered.
E)the number of Nobel Prize winners on the faculty.

Question 46

Education marketers have learned that the primary motivations of most non-traditional college students are self-respect and self-fulfillment.Understanding the values of this market segment allows marketers to:

A)emphasize the benefits these consumers are looking for in a college education.
B)lower the price for this market segment.
C)offer alternative courses based on geographic location.
D)employ loyalty marketing strategies.
E)utilize micromarketing strategies.

Question 47

Toothpastes sold in supermarkets and pharmacies promise various results,such as whiter teeth,protection against gum disease,tartar control,or fresh breath.Toothpaste marketers are using ________________ segmentation.

A)benefit
B)geodemographic
C)psychographic
D)loyalty
E)demographic

Question 48

Golden Years Vitamin Corporation targets consumers living in Florida who are over 65.Golden Years is using _______________ segmentation.

A)benefit
B)self-actualization
C)psychographic
D)loyalty
E)geodemographic

Question 49

Psychographics is the segmentation method that delves into how consumers:

A)adjust to demographic changes.
B)allocate scarce incomes to a variety of goods and services.
C)describe themselves.
D)value their livelihoods.
E)all of these.

Question 50

Firms might use multiple segmentation methods to:

A)tailor communications
B)design products
C)determine the substance of the marketing message
D)All of these
E)None of these

Question 51

Baby Boomers represent a huge demographic segment for travel marketers.Baby Boomers are also heavily motivated by self-fulfillment,which creates the possibility of ______________ segmentation.

A)geographic
B)self-concept
C)psychographic
D)benefit
E)behavioral

Question 52

Demographic segmentation is segmentation based on:

A)age.
B)gender.
C)education.
D)income.
E)any of these.

Question 53

_______ segmentation is the segmentation method most directly related to creating value for a customer segment.

A)Geographic
B)Demographic
C)Psychographic
D)Benefit
E)Geodeomographic

Question 54

In order to develop psychographic segments,the marketer must understand consumers':

A)age,income,and education.
B)gender,race,and religion.
C)disposable personal income,benefit perceptions,and alternative egos.
D)self-values,self-concept,and lifestyles.
E)all of these.

Question 55

If values provide goals,and self-concept is the way we see ourselves,lifestyles are:

A)visual images of how we should live our lives.
B)marketing manipulation of consumers' fears.
C)the way we live our lives to achieve our goals.
D)motivations turned into perceptual maps.
E)determined by demographics.

Question 56

Beverage companies often use television commercials with images of young people laughing and enjoying themselves on a beach or in a club.These images are designed to appeal to consumers'_______________,suggesting "be like me."

A)geographic choices
B)self-concepts
C)loyalty references
D)benefit perceptions
E)demographics

Question 57

Marketers like Benetton want their ads to appeal to one's self-concept,suggesting to consumers:

A)"Trendy products for the masses."
B)"I'm like them,so I should buy their products."
C)"I will never be rich,but I can dress like I am."
D)"Be Peace."
E)"All is fair in love,marketing,and war."

Question 58

Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics,psychographics:

A)are available only in limited geographic areas.
B)are rarely used and unproven.
C)offer only one-to-one marketing potential.
D)are a more expensive method for identifying potential customers.
E)all of these.

Question 59

VALS is the most widely used __________________ segmentation tool.

A)geographic
B)behavioral
C)psychographic
D)benefits
E)geodemographic

Question 60

Which of the following is NOT one of the VALS segments?

A)Innovators.
B)Do-gooders.
C)Thinkers.
D)Achievers.
E)Experiencers.

Question 61

Retail store chains often use _____________________ data to identify other locations with similar demographics and purchasing behavior where it might make sense to open additional stores.

A)geodemographic
B)benefit
C)psychographic
D)loyalty
E)geographic

Question 62

When Ron complained to his bank about the unprofessional behavior of one teller,the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests.The branch management included Ron in its _______________ segmentation.

A)benefit
B)geodemographic
C)psychographic
D)loyalty
E)geographic

Question 63

Talbots,an upscale women's clothing store,targets college-educated women between 35 and 55 years old with average household income of $75,000 or more.This is a form of ________________ segmentation.

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

Question 64

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service.She will now evaluate whether or not each segment is:

A)substantial.
B)responsive.
C)profitable.
D)reachable.
E)all of these.

Question 65

Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power.Greta is concerned with whether the segment is:

A)substantial.
B)responsive.
C)profitable.
D)reachable.
E)all of these.

Question 66

With access to the Internet nearly universal in the USA,many potential market segments have become more:

A)substantial.
B)perceptive.
C)identifiable.
D)reachable.
E)quantifiable.

Question 67

Kim's Kayak Tours initially identified active retirees living in the retirement community nearby as one of its target markets.Kim then tailored her service and marketing message to the interests and schedules of that audience.Kim initially used _______________ segmentation and then used ____________ segmentation.

A)micromarketing; loyalty
B)lifestyle; macromarketing
C)geodemographic; lifestyle
D)geographic; loyalty
E)behavioral; geodemographic

Question 68

PRIZM and Tapestry by ESRI divide and sort small geographic areas into categories using 60 or more demographic and lifestyle characteristics.These market research tools are examples of __________________ segmentation.

A)geodemographic
B)benefit
C)psychographic
D)loyalty
E)geographic

Question 69

Ryan wants to sell personal Web site services to American soldiers in Afghanistan.Because of the difficulty of communicating with people in a war zone,Ryan may have trouble with this segment not being:

A)substantial.
B)perceptive.
C)identifiable.
D)reachable.
E)quantifiable.

Question 70

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service.The next step is to:

A)categorize each market segment by consumer demographics.
B)establish her overall objectives.
C)decide on a targeting strategy.
D)develop a positioning strategy.
E)evaluate the attractiveness of each segment.

Question 71

Geodemographic segmentation can be particularly useful for ____________,because customers typically patronize stores close to their neighborhood.

A)Internet marketers
B)wholesalers
C)retailers
D)consumer goods manufacturers
E)cable TV networks

Question 72

Marketers often create a special marketing mix for loyalty segments because these segments are:

A)too large to service with ordinary targeting.
B)difficult to identify.
C)costly to acquire.
D)usually quite profitable.
E)all of these.

Question 73

Gloria is opening an upscale women's clothing store in a growing suburban residential area.Gloria knows her target market is upper-income women living within twenty miles.She can't afford to purchase a PRIZM or Tapestry analysis so she will most likely use ________________ as a basis for targeting her market.

A)voter registration lists
B)the city phone book
C)real estate values by subdivision
D)public school enrollment data
E)new construction data

Question 74

When Talbots,an upscale women's clothing store,tries to portray an image of "traditional,conservative,and with good taste," they are appealing to their target market's:

A)lifestyle.
B)geodemographics.
C)demographics.
D)loyalty.
E)PRIZM segment.

Question 75

One of the reasons marketers use loyalty segmentation is:

A)the high cost of finding new customers.
B)government tax incentives for loyalty.
C)accounting difficulties associated with identifying new customers.
D)rapid population increases.
E)the failure of micromarketing as a workable strategy.

Question 76

Marketers often employ a combination of segmentation methods,using _____________ to identify and target their customers,and ________________ to design products and messages to appeal to them.

A)loyalty segmentation; demographics
B)undifferentiated targeting; differentiated targeting
C)loyalty segmentation; geodemographics
D)geodemographic segmentation; lifestyle or benefit segmentation
E)lifestyle segmentation; geographic segmentation

Question 77

While demographic and geographic segmentation of retail customers is relatively easy,these characteristics do not help marketers determine:

A)how old their customers are.
B)what their customers need.
C)where their customers live.
D)which customers have young children.
E)what income brackets their customers are in.

Question 78

Carlos has identified four potential market segments for his Rent-A-Chef home meal catering service.He will now compare the segments to see if they are different enough from each other.Carlos is evaluating whether or not each segment is:

A)identifiable.
B)responsive.
C)profitable.
D)reachable.
E)all of these.

Question 79

The phrase "birds of a feather flock together" captures the idea of ______________ segmentation.

A)geodemographic
B)benefit
C)psychographic
D)loyalty
E)geographic

Question 80

Airlines were among the first retailers to embrace loyalty segmentation when they created:

A)business-class seating.
B)30-day advance pricing.
C)fuel surcharges.
D)in flight movies.
E)frequent flyer programs.