Deck 9: Segmentation, Target Marketing, and Positioning

Question 1

A price leadership position (example: Wal-Mart)implies that a company that assumes this position has superior operational elements in order to maintain the low price position.

Answer 1

True

Question 2

Grand Theft Auto 4 broke the Guinness world record for the most violent game on the market.

Answer 2

False

Question 3

Generation Y, people born between 1978-1994, tend to be pragmatic, optimistic, good team players, savvy and edgy in nature.

Answer 3

True

Question 4

Firms generally only use one method of segmentation at a time.

Question 5

When a company decides its positioning strategy, it is impossible to over position it against competition.

Question 6

Family life cycle has declined in importance as a technique to segment the market as a result of so many people living in untraditional families.

Question 7

When P & G purchased Gillette, it saw a market (men's toiletries market)that was large and had a good growth rate.This combination made it hard not to buy the company even at a price of $57 billion.

Question 8

A company that use positioning often use a price-quality perceptual map in order to show where it is positioned versus the competition.This helps it understand if it needs to either change pricing strategy or quality standards.

Question 9

BMW is a good example of a company that employs symbols, atmosphere, and creative media to compete with a positioning strategy of Image Leadership.

Question 10

If a firm chooses more than one segment to attack, it should approach them sequentially, not all at the same time.

Question 11

The largest generation is the Millennial Generation.This group has been born after 1994 and is characterized by being heavily Hispanic, African American, and Asian.

Question 12

For many marketing managers, segmentation by benefit sought is the best place to start the process of market segmentation.

Question 13

In general, B2B segmentation is more straightforward than B2C segmentation.

Question 14

Ajax Engine Parts CEO says, "we sell to everyone" segmentation is only for the consumer market.Do you believe the CEO's statement is true or false?

Question 15

The minority population with the youngest and the fastest growing population is the Asian community.

Question 16

Land's End likes customized (one-to-one)marketing because customers pay more, 25% of customers are new to the company, and 33% purchase the custom made items more than once.

Question 17

Family and household segmentation have become more complex than ever as a result of non-traditional households and different standards of morality in the population.

Question 18

Demographics are used as a segmentation variable in both the consumer and business markets.The variables are different for the two markets but the concept is the same for both markets.

Question 19

When a company has frequent changes to its position and contradictory messages, it is said that the company suffers from confused positioning.

Question 20

Occupation segmentation is very closely related to income segmentation although the two are not perfectly correlated.

Question 21

Age is a commonly used method of segmentation.Age alone, however, may be dangerous _________.

A) Because lumping older or younger customers together in one group may not truly reflect the market.
B) As McDonalds found out with Happy Meals.
C) Because Grand Theft Auto was a huge hit.
D) Because Egg McMuffins are not just for older people.
E) None of the above.

Question 22

Demographic segmentation is best described as _______.

A) Using characteristics of human populations to segment the market.
B) Using characteristics of geography to segment the market.
C) Using characteristics of lifestyle to segment the market.
D) Using characteristics of virtual communities to segment the market.
E) All of the above are demographic segmentation.

Question 23

When it is said that a market can be reached, it means that _______

A) The market can be reached by transportation.
B) The market can be reached by language.
C) The market can be reached by technology.
D) The market can be reached by communication.
E) All of the above.

Question 24

When JC Penney orders winter coats, it sends them to stores at different times of the year.This is an example of _______.

A) Demographic segmentation.
B) Climate segmentation.
C) Geographic biases.
D) Lack of winter in the south.
E) Climate change.

Question 25

The sequential steps to successful segmentation are:

A) Positioning, targeting, and segmenting.
B) Research, fulfillment analysis, churn rate.
C) Segmenting, targeting and positioning.
D) Need identification, qualitative research, and positioning.
E) Consumer analysis, content analysis, and segmenting.

Question 26

When Bernard, a marketer, says that a segment has sufficient size, he means _________.

A) The market has an expected return-on-viewing to be worth considering.
B) The market is too large to be worth considering.
C) The market has an expected return-on-investment that is positive.
D) The market has many customers in it.
E) The market has only one customer in it.

Question 27

Target marketing is the process by which __________.

A) The market is divided up into cohesive groups.
B) The company evaluates segments and decides which ones have the most potential for development.
C) The company decides on which words can be used to attack each segment.
D) Groups are evaluated on the basis of high or low churn to see which is the most profitable.
E) None of the above.

Question 28

Segmenting means _________.

A) Identifying the market into meaningful smaller markets based upon common characteristics.
B) Selecting the markets to attach in the market place.
C) Selecting a corporate position to communicate to potential customers.
D) Identifying and calculating the churn rate in different markets.
E) None of the above.

Question 29

The region, the density of the population, the size of the population are terms for techniques to use in ________.

A) Positioning.
B) Differentiation.
C) Democratic segmentation.
D) Population parameter estimation.
E) Geographic segmentation.

Question 30

An idea used in segmentation is geographic segmentation, this means ________.

A) People are different based upon where they live.
B) Geography determines ones likes and dislikes.
C) Consumer respond differently to marketing strategies and programs based on where they live.
D) The East Coast, West Coast, and Midwest are the most important market segments based upon size.
E) None of the above.

Question 31

Geographic segmentation is useful but ________

A) A necessary condition in all segmentation schemes.
B) Is an insufficient criteria in and of itself.
C) Creates negative stereotypes to different parts of the country.
D) Is dependent upon the talent of the marketer to discover the quirks of a given geographic area.
E) None of the above.

Question 32

The concept of being able to get either secondary and/or primary data on a market being considered for segmentation means _______.

A) Differentiation.
B) Targeting.
C) The market is accessible to media.
D) The market is readily identifiable and can be measured.
E) The market is primed to be attacked by media.

Question 33

There are conditions necessary that a market has to have in order to be able to segment it properly.The item below which is not necessary is _______.

A) Market has to be measurable.
B) Market has to be bigger than 10,000 people.
C) Market has to be responsive to communications.
D) Market has to be reachable via supply chain.
E) Market has to be reachable with communications.

Question 34

Positioning relies upon the communication of one or more sources of value to customers in a way that the customer can easily make the connection between ________.

A) The cost of the product and the quality.
B) The way the 4 p's work with one another.
C) The customer's needs and wants and what the product has to offer.
D) The quid pro quo of product and advertising.
E) The salesperson and the customer at a personal level

Question 35

Some companies, insurance and credit card, would like to target students as a segment but find them hard to capture.This is an example of a market lacking one of the criteria for segmentation and is called _______.

A) Reachable-the ability to reach the segment in terms of communication.
B) Responsiveness-the feeling that the market will buy more if targeted.
C) Sufficient size-the size of the market is large enough to be worth considering.
D) Measurable-information can be obtained about the market.
E) None of the above.

Question 36

Under positioning occurs when consumers have a vague idea about the company and its products, and do not perceive any real differentiation.

Question 37

Differentiation is a concept that means _______.

A) People are different looking.
B) When marketers look at consumers they see a rainbow of looks.
C) Products need to appear to be different from one another to be successful in the market place.
D) Communicating and delivering value in different ways to different customer groups.
E) All of the above together.

Question 38

There are popular approaches to segment the market geographically.Of the techniques below the one that is not used is _________.

A) Region.
B) Density of population.
C) Size of population.
D) Sensitivity of population.
E) All of the above are used.

Question 39

Having a product whose value proposition is a well kept secret ________.

A) Is a good idea.
B) Is not a good thing in marketing.
C) Is a concept that uses subliminal messages.
D) Is a superior concept used in targeting.
E) Is a well accepted idea in market segmentation.

Question 40

Demographic segmentation is one of the most popular segmentation approaches because _________.

A) It is readily measurable.
B) Because customer needs and wants tend to vary with some degree of regularity based on demographic differences.
C) It uses the statistical characteristics of human populations such as age or income.
D) All of the above.
E) None of the above.

Question 41

An advergame is a video game that _______.

A) Has an advertiser inserted into the game.
B) Has sponsors of the game on the cover of the game but not in the game itself.
C) Has been specifically designed to promote a brand.
D) Has been advertised on television with good results.
E) None of the above.

Question 42

Offering credit cards to high school seniors is an example of ________ segmentation.

A) Income segmentation.
B) Occupation segmentation.
C) Education segmentation.
D) Life style segmentation.
E) All of the above.

Question 43

The ____________ race and ethnicity market segment is not growing at a fast rate.

A) African-American.
B) Hispanic.
C) Asian-American.
D) Caucasian.
E) Catholic.

Question 44

Family life cycle segmentation factors include all but ____________.

A) Income.
B) Age.
C) Marital status.
D) Number of children.
E) Cohabitation.

Question 45

Among the generations used for segmentation, one stands out as the largest and most affluent of all the generations.This generation is known as ______.

A) Millennial.
B) Generation X.
C) Generation Y.
D) Lost Generation.
E) Baby Boomer Generation.

Question 46

The minority population of the United States has grown significantly in the past decade.Minorities now represent _________.

A) 60 million people.
B) 101 million people.
C) 150 million people.
D) 200 million people.
E) None of the above.

Question 47

Generation "X" is often referred to as the ________.

A) Spoiled generation.
B) Non-consumption generation.
C) Millennial generation.
D) Baby bust generation.
E) None of the above.

Question 48

Baby Boomers represent a huge segment of the population.There is some evidence that they, in their own minds, do not think they age.This is an example of _______.

A) Lack of aging.
B) Age discrimination.
C) Ethical dilemmas in segmentation through the calling of Baby Boomers older.
D) Difference between chronological age and attitudinal age.
E) Aging diagnostics of different groups of people.

Question 49

Apple Cora Anderson was born in 2001.She is a member of the __________ generation.

A) Baby boomer.
B) GI.
C) Silent.
D) Gen X.
E) Millennial.

Question 50

Sociologists look for defining events such as wars, major economic upheaval, and social cultural revolution to create _________.

A) Social movements.
B) Marketing opportunities.
C) Generational Groups for segmentation purposes.
D) New product ideas.
E) None of the above.

Question 51

Income segmentation is a commonly used segmentation technique.It has some problems, however, that can be described as ___________.

A) It is difficult to collect quality marketing research on income due to people refusing to their income.
B) It is too simple to use.
C) It is confusing because of the interaction with gender.
D) It is time consuming to study consumer's buying habits based upon their income.
E) None of the above.

Question 52

Social class has declined as a method of segmentation as a result of ______.

A) Higher education rates in the US.
B) Readily available credit has flattened the classes.
C) The increase in minority consumers.
D) Stores appeal to everyone.
E) None of the above.

Question 53

The Gillette Venus razor line is an example of a product that appeals to both men and women but reveals ___________.

A) The same product can be used to attack different gender markets.
B) By slightly altering a product you can attack different gender markets.
C) There are different needs and wants for the same product category based on gender.
D) Women are always different than men.
E) None of the above.

Question 54

Occupational segmentation recognizes _________.

A) Jobs change people in terms of ideas.
B) What kind of job you have impacts your thinking.
C) Bureau of Census gives you good ideas on product segments.
D) There may be needs and wants demonstrated by consumers based on the job they have.
E) All of the above.

Question 55

___________ would not be a good product for using gender segmentation.

A) Underwear.
B) Perfume.
C) Toothpaste.
D) Cigars.
E) Rogaine.

Question 56

There are many ways to segment the market using demographics.Select the answer below that is the most truthful about demographic segmentation.

A) Income, education, and occupation are very closely correlated.
B) Income is all you need to know about someone.
C) Age is usually not a factor in segmentation.
D) The youth culture is the most important segmentation variable.
E) All of the above are true.

Question 57

Every zip code in the United States falls into profiles provided by Claritas in its database called _________.

A) GEO-FIX.
B) PRIZM.
C) AIO.
D) Nielsen ratings.
E) None of the above.

Question 58

Serenity was born in 1970.Her parents met at the famous Woodstock festival.She is a member of the ________ generation..

A) Baby boomer.
B) GI.
C) Silent.
D) Gen X.
E) Millennial.

Question 59

The fastest growing minority group in the United States is ______.

A) Asians.
B) African Americans.
C) Hispanics.
D) American Indians.
E) None of the above.

Question 60

At one time, specific companies that catered to a particular market segmented by race.Today ______.

A) The segments are indistinguishable.
B) The segments have declined in size.
C) The segments have become part of mainstream business.
D) The segments all buy the same products.
E) The segments lack sufficiency.

Question 61

When P & G bought Gillette it thought that there was a strategic fit between the companies.This was a good fit because they had _______________.

A) The same ad agency.
B) Sophisticated supply chain systems including international markets.
C) Similar price structures.
D) Great brand awareness.
E) None of the above.

Question 62

Differentiated target marketing means ______.

A) Different prices to different markets.
B) The same value offering to every market segment.
C) Different value offerings for different target markets.
D) Using push and pull strategy to differentiate markets.
E) None of the above.

Question 63

Positioning strategy is a process that often starts with ______.

A) Focus groups.
B) Surveys of customers.
C) Perceptual maps.
D) Panel research data.
E) None of the above.

Question 64

Positioning strategy allows consumers to ______.

A) Buy things they do not like.
B) Understand a company's ability to fulfill their needs and wants.
C) Compare competitors on a list of tangible evidence.
D) Think like the company thinks.
E) All of the above.

Question 65

Michael Porter developed a model to determine the ______.

A) Segment approaches to complex markets.
B) Life of a product once it is introduced.
C) Size of the market needed to be successful.
D) The six competitive forces that firms must consider.
E) None of the above.

Question 66

Usage patterns are another way to divide up the market.What causes you to take your significant other out for that special dinner? Or, what makes you break down and rent a tuxedo for a formal event? This form of usage is called using ________ as a reason to buy.

A) Time of year.
B) Graduation.
C) Occasions.
D) Experiences.
E) None of the above.

Question 67

The Benefit Sought method of segmentation focuses on ______.

A) The different benefits consumers seek.
B) The product features.
C) The service offering.
D) The positioning of the benefits.
E) The location of the store.

Question 68

Firms considering their positioning statements frequently use perceptual maps.The simplest of these maps rank the firm on ____________ dimensions.

A) One.
B) Two.
C) Three.
D) Four.
E) Five.

Question 69

AIOs are one way to measure consumer variables using the psychographic segmentation approach.AIO stands for _______.

A) Archives, intellect, and opinions.
B) Activities, interests, and opinions.
C) Archives, intellect, and orientation.
D) Activities, intellect, and orientation.
E) None of the above.

Question 70

A marketing manager using VALS is interested in ____________ segmentation.

A) Geographic.
B) Psychographic.
C) Geodemographic.
D) Occasion.
E) Benefits Sought.

Question 71

When positioning a firm against competition, segmenting companies often use __________.

A) Two dimensional maps of the consumer's mind.
B) Generic price-quality perceptual maps.
C) Three dimensional mind maps.
D) Two consumer variables taken together.
E) None of the above.

Question 72

Firms use ______.

A) One segmentation technique at a time.
B) Multiple segmentation techniques simultaneously.
C) One technique then sequentially another and then yet another.
D) Two major dominant forms.
E) None of the above

Question 73

Primary markets differ from secondary and tertiary markets by _______.

A) The expected level of ROI derived from the market.
B) The difficulty of attacking the market.
C) The consumers ability to buy multiple units.
D) The advertising effort needed for the market.
E) All of the above.

Question 74

When a company is confused about market segments, it sometimes pick a one-market strategy.This segmentation approach is called ________.

A) Mass approach.
B) Undifferentiated target marketing.
C) Differentiated strategy.
D) Low cost approach.
E) Efficiency marketing.

Question 75

A marketing manager using PRIZM is interested in ____________ segmentation.

A) Geographic.
B) Psychographic.
C) Geodemographic.
D) Occasion.
E) Benefits Sought.

Question 76

Companies often try to draw the attributes necessary to position a firm.The process of drawing two attributes at a time to visualize the market is called ________.

A) Virtual mapping.
B) Perception training.
C) Monolithic mapping.
D) Perceptual mapping.
E) None of the above.

Question 77

Concentrated target marketing is often used by ________.

A) Large companies to dominate a market.
B) Start-up firms to enter a market as a focus player.
C) All firms.
D) Virtual firms that use internet marketing.
E) Michael Porter in a consulting capacity.

Question 78

Usage segmentation focuses on how much of the product different groups consume.It can also be described as _______.

A) 80/20 rule.
B) Heavy users.
C) Light users.
D) Medium users.
E) All of the above.

Question 79

Firms that develop such close relationships with customers that they seem to deliver customized goods and services, are engaged in ____________ marketing.

A) Concentrated target marketing.
B) One-to-one marketing.
C) Differentiated marketing.
D) Undifferentiated marketing.
E) Shotgun marketing.

Question 80

Ads with messages like "Orange juice-It's not just for breakfast anymore!" or "Soup can be a delicious way to start a cold winter's day" are using _______ segmentation.

A) Benefits Sought.
B) Lifestyle.
C) Psychographic.
D) Usage.
E) Geographic.