Deck 8: Customer-Driven Marketing Strategy: Creating Value for Target Customers

Question 1

It would not pay,for example,for an automobile manufacturer to develop cars especially for people whose height is greater than seven feet.

Answer 1

True

Question 2

Your assignment at work is to divide buyers into different groups based on social class,lifestyle,and personality characteristics.After a planning session with the marketing and sales staff,you issue a memo to upper management recommending psychographic segmentation.You are right on target.

Answer 2

True

Question 3

Your company wants to move away from mass marketing and engage in customer-driven marketing.The four steps to take,in order,are market segmentation,marketing positioning,differentiation,and targeting.

Answer 3

False

Question 4

At a recent marketing seminar,the featured speaker stated that a target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.This is a correct definition.

Question 5

For simplicity's sake,most marketers generally limit their segmentation analysis to one or a few variables.

Question 6

Bombay Gifts divides its markets into units of nations,regions,and cities.Bombay uses geographic segmentation.

Question 7

La Grange Florists segments markets into groups of nonusers,ex-users,potential users,first-time users,and regular users of its flowers and services.This firm uses usage rate as its segmentation approach.

Question 8

Because there is such variation among the economies of countries around the world,it is not practical to segment international markets on the basis of economic factors.

Question 9

Developing a stronger position within several segments creates more total sales than undifferentiated marketing across all segments.

Question 10

Psychographic segmentation uses different marketing approaches for different time periods of people's lives and different family situations.

Question 11

Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies.

Question 12

By going after the whole market instead of segments,companies can deliver just the right value proposition to each segment served and capture more value in return.

Question 13

Clusters of marketable groups of customers with similar likes,dislikes,lifestyles,and purchase behaviours can be identified by multivariable segmentation systems that merge and analyze geographic,demographic,lifestyle,and behavioural data.

Question 14

In evaluating different market segments,a firm should look at three factors: segment size and growth,segment structural attractiveness,and company objectives and resources.

Question 15

Research about and planning for loyalty status as a segmentation approach is generally not useful or practical for most firms.

Question 16

Today,most companies have moved back toward mass marketing and are being choosier about the customers with whom they wish to build relationships.

Question 17

There are many exceptions to the geographic segmentation assumption that consumers in nations close to one another will have many common behaviours and traits.

Question 18

Gender segmentation has long been used in clothing,cosmetics,toiletries,and magazines.

Question 19

Shopping for the Rich and Famous is a buying service that helps wealthy clients find the best buys in exclusive clothing,high-end cars,travel,and financial services.This firm most likely uses income segmentation.

Question 20

Although some large companies sell products in more than 200 countries,most international firms focus on a smaller set.

Question 21

A company uses market segmentation to divide large,heterogeneous markets into smaller segments.These segments can be reached more ________ with products and services that match their unique needs.

Question 22

A market rarely exists for products that offer less and therefore cost less.

Question 23

Mass marketing is becoming a marketing principle for the twenty-first century.

Question 24

Global Food Incorporated has decided to localize its products and services to meet local market demands.It would be wise to use ________ segmentation.

Question 25

Because Cruise Ships International currently has limited financial and personnel resources,it should avoid concentrated or niche marketing until resources are again substantial.

Question 26

When practising ________,a company identifies the parts of the market it can serve best and most profitably.

Question 27

When Pacific Fisheries groups its customers by countries and regions,such as Asia,Australia,or New Zealand,it is using which segmenting base?

A) Economic factors
B) Political and legal factors
C) Geographic location
D) Benefits sought
E) Demographics

Question 28

When marketers at Procter & Gamble selected the Millennials,a demographic that includes college students,as an untapped group of potential customers for their Febreze line of products,they were executing which step in the process of designing a customer-driven marketing strategy?

A) Market segmenting
B) Mass marketing
C) Differentiation
D) Targeting
E) Positioning

Question 29

When Kia offers a new car model with the same features as a comparable Toyota or Ford and provides a longer warranty,Kia is following a more-for-less strategy.

Question 30

To the extent that a company can differentiate and position itself as providing superior customer value,it gains competitive advantage.

Question 31

A product's position is the way the product is defined by the retailers who sell it to target markets.It is how it is defined on important attributes-the place the product occupies in the retailers' minds relative to competing products.

Question 32

All brand differences are meaningful or worthwhile and every difference makes a good differentiator.

Question 33

Although the use of mass marketing has been widespread in the past 100 years,for centuries consumers were served as individuals as businesses practised individual marketing.

Question 34

What are the four steps to designing a customer-driven marketing strategy?

A) Market segmentation, targeting, differentiation, and positioning
B) Positioning, market selection, mass marketing, and targeting
C) Market segmentation, differentiation, partitioning, and targeting
D) Market alignment, market segmentation, differentiation, and market positioning
E) Market recognition, market preference, market targeting, and market insistence

Question 35

Walmart uses more than 200 finely tuned planograms (shelf plans)to match soup assortments to each store's demand patterns.

Question 36

While it is very important for all companies to complete the task,there ________ to segment a market.

Question 37

Consumers position products in their minds in order to simplify the buying process.

Question 38

When a company chooses a target marketing strategy,its choices are influenced by factors related to company resources,the degree of product variability,and the product's life-cycle stage.

Question 39

Critics worry that marketers of everything from lingerie and cosmetics to Barbie dolls are directly or indirectly targeting young girls with provocative products.

Question 40

Firms that practise channel differentiation gain competitive advantage through the way they design their channel's coverage,expertise,and performance.

Question 41

Marketers must be most careful to guard against which of the following when using age and life cycle segmentation?

A) Underestimating
B) Stereotyping
C) Traditional marketing
D) Cultural bias
E) Gender bias

Question 42

At one time Miller Beer was known as the "champagne of bottled beer." Unfortunately,Miller drinkers did not drink much beer.To increase sales,Miller was repositioned to attract the members of the middle working class.This segmentation approach is ________.

Question 43

Markets can be segmented into groups of nonusers,ex-users,potential users,first-time users,and regular users of a product.This method of segmentation is called ________.

Question 44

When Burger King targets children,teens,adults,and seniors with different ads and media,it is practising ________ segmentation.

Question 45

Rolex Watches uses ____________.It targets wealthy consumers with similar needs and buying behaviours,even though the consumers are located in different countries.

Question 46

The most popular base for segmenting markets is _____________.

Question 47

Segmenting voters as either conservatives or liberals is an example of ________.

Question 48

Ever-Fresh Cleaning products uses ______________information on customers' race,occupation,income,and family life cycle.

Question 49

Which of the following statements illustrates why stereotypes should be avoided when using age and life cycle segmentation?

A) Old women love to shop; young women love it more!
B) Most 10-year-old boys are mischievous.
C) Some 70-year-olds use wheelchairs; others play tennis.
D) The majority of 20-year-olds have to work.
E) Most couples start families when they are in their twenties.

Question 50

_________segmentation focuses on when consumers get the idea to buy,when they actually make their purchase,or when they use the purchased item.

Question 51

Most companies use demographic variables in market segmentation because they ________.

Question 52

When marketers divide buyers into groups based on their knowledge,attitudes,uses,or responses to a product,this is called ________ segmentation.

Question 53

______________ is(are)often used to identify smaller,better-defined target groups.

Question 54

When Johnson & Johnson focuses on cosmetics and toiletries markets,it is most likely using ____________ segmentation.

Question 55

Your current assignment at York Foods is to find the major benefits people look for in product classes,the kinds of people who look for each benefit,and the major brands that deliver each benefit.What is this segmentation method called?

A) Benefit
B) Behavioural
C) Age and life cycle
D) Psychographic
E) Demographic

Question 56

_______________ segmentation focuses on how consumers show their allegiance to brands,stores,or companies.

Question 57

Shampoo marketers rate buyers as light,medium,or heavy product users.This is ________ segmentation.

Question 58

Many marketers believe that which of the following variables are the best starting point for building marketing segments?

A) Behavioural
B) Family size
C) Gender
D) Age
E) Beneficial

Question 59

Marketers of expensive automobiles,cottage properties,and travel are most likely to use which of the following types of segmentation?

A) Gender
B) Income
C) Occasion
D) Usage rate
E) Benefits sought

Question 60

A company can detect which brands are most ________ its own by studying its less loyal buyers.

Question 61

MTV targets the world's teenagers,who have similar needs and buying behaviour even though they are located in different countries.This is called ________ segmentation.

Question 62

A marketer focuses on several commonalities among all consumers.This marketer appears to be engaging in ________.

Question 63

Which of the following is the most logical reason for Procter & Gamble's offering products that compete with one another on the same supermarket shelves?

A) Different people want a greater selection.
B) Procter & Gamble has little competition.
C) Different people want different mixes of benefits from the products they buy.
D) Retailers request it.
E) It creates healthy competition.

Question 64

Sanguine Services practises a marketing strategy where its limited resources are used to go after a large share of two small niches.Sanguine practises which one of these strategies?

A) Undifferentiated
B) Differentiated
C) Mass
D) Concentrated
E) Geographically dispersed

Question 65

When a business market segment is large or profitable enough to serve,it is termed ________.

Question 66

For a market segment to be ___________,it must mean that the size,purchasing power,and profiles of a market segment can be determined.

Question 67

In general,a company should enter only segments in which it can ________ and ________.

Question 68

Fifty-five-year-old baby boomers share common needs in music and performers.When a music company decides to serve this group,the group is called a(n)________.

Question 69

ByWay Ventures chose a differentiated marketing strategy.The company had to weigh ________ against ________ when selecting this strategy.

Question 70

When New Port Shipping uses segmented marketing,it targets several segments and designs separate offers for each one.This approach is called ________ marketing

Question 71

Jolene Enterprises mass-produces an all-purpose floor cleaner,mass-distributes it,and mass-promotes it.This firm uses ________ marketing.

Question 72

You have discovered that the segments you are targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs.These segments are ________.

Question 73

________ and ________ segmentation provide the best basis for segmenting business markets according to many marketers.This is also true for consumer markets.

Question 74

Mega Mining and Smelting Co.segments its foreign markets by their overall level of economic development.This firm segments on what basis?

A) Political factors
B) Economic factors
C) Geographic factors
D) Legal factors
E) Cultural factors

Question 75

The markets you have chosen to serve in four western states can be effectively reached and served.You would tell the marketing manager that these segments are ________.

Question 76

Mass marketers,such as Walmart and Zellers,often ignore market segment differences and target the whole market with one offer.What is their approach to segmenting?

A) Undifferentiated marketing
B) Differentiated marketing
C) Target marketing
D) Concentrated marketing
E) Micromarketing

Question 77

Successful niche marketing relies on a firm's ________ and its ________.

Question 78

When an effective program can be designed for attracting and serving a chosen segment,the segment is best described as ________.

Question 79

Developing a strong position within several segments creates more total sales than ________ marketing across all segments.

Question 80

Procter & Gamble sells four brands of laundry detergent in Canada,each designed for one of six laundry segments Procter & Gamble has identified.Which of the following is a disadvantage of Procter & Gamble's differentiated marketing strategy?

A) Lost sales that would have been made with an undifferentiated marketing strategy across all segments
B) Lost customer loyalty due to lack of brand loyalty
C) Increased costs for separate marketing plans for each brand
D) Other suppliers controlling pricing
E) Lack of resources to succeed in an attractive segment