Question 1

Argonaut Food Stores, a retail giant, hires better-skilled employees than its competitors by employing strategic recruitment practices. It also conducts highly specialized training programs for its employees. In this case, Argonaut has focused on gaining a strong competitive advantage through ________ differentiation.
A) image
B) people
C) services
D) product
E) channel

Accepted Answer

Argonaut's focus on hiring better-skilled employees and providing specialized training programs indicates that it is differentiating itself from competitors through its people.

Question 2

Compare and contrast local and individual marketing.

Accepted Answer

The answer of Compare and contrast local and individual marketing....

Question 3

Companies are likely to gain ________ through speedy, convenient, or careful delivery of products.
A) price differentiation
B) product differentiation
C) channel differentiation
D) services differentiation
E) people differentiation

Accepted Answer

The answer of Companies are likely to gain ________ through...

Question 4

A market segment with powerful suppliers controlling the prices is more attractive than a segment with less powerful suppliers.

Accepted Answer

A market segment with powerful suppliers controlling the prices can result in higher costs and reduced profitability for the firms operating within that segment. Therefore, it is generally considered less attractive than a segment with less powerful suppliers, where firms have more control over their costs and pricing strategies.

Question 5

Smaller companies may lack the skills and resources needed to serve larger segments.

Accepted Answer

Smaller companies often have limited resources and may not have the expertise or capacity to serve larger segments. They may need to focus on niche markets or specific customer segments where they can provide the most value and differentiate themselves from bigger competitors.

Question 6

A segment is more attractive if it is easy for new competitors to enter the market.

Accepted Answer

A segment is less attractive if it is easy for new competitors to enter the market, as it increases competition and reduces the potential for profits. A more attractive segment would have barriers to entry, such as high start-up costs or regulations, that prevent new competitors from easily entering the market.

Question 7

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.

Accepted Answer

Niche marketing allows smaller companies to find and serve specific market segments that larger companies may overlook or not see as profitable, giving them a competitive advantage.

Question 8

Using a differentiated marketing strategy, a company is likely to design a product and a marketing program that will appeal to the largest number of buyers.

Accepted Answer

Using a differentiated marketing strategy, a company designs different products and marketing programs for different segments of customers with specific needs and preferences. The objective is to tailor the product and marketing message to each segment, which may not necessarily be the largest group of buyers. It allows the company to better meet the needs of each group and increase customer satisfaction and loyalty.

Question 9

Describe a few ways in which a marketer can engage in socially responsible target marketing.

Accepted Answer

The answer of Describe a few ways in which a...

Question 10

Even if a segment has the right size and growth and is structurally attractive, a company must consider its own objectives and resources before targeting that segment.

Accepted Answer

Even if a segment appears attractive on paper, a company must assess whether pursuing it aligns with their own goals and if they have the necessary resources (financial, human, technological, etc.) to effectively target and serve that segment.

Question 11

When a company interacts one-on-one with large numbers of customers to create customer-unique value by designing products and services tailor-made to individual needs, it is engaging in ________.
A) concentrated marketing
B) mass marketing
C) mass customization
D) differentiated marketing
E) local marketing

Accepted Answer

Mass customization refers to creating unique products or services for individual customers on a large scale. It involves interacting with customers to identify their specific needs and preferences and tailoring products or services accordingly. This approach combines the benefits of mass production with a customer-oriented focus, leading to higher levels of customer satisfaction and loyalty. Concentrated marketing focuses on a specific market segment, differentiated marketing targets multiple segments with different offerings, while mass marketing targets the entire market with a standardized offering. Local marketing focuses on the needs of a specific local community or region.

Question 12

At the extreme, micromarketing becomes ________ insofar as products and marketing programs are tailored to the needs and preferences of customers.
A) differentiated marketing
B) multi-segmented marketing
C) local marketing
D) mass marketing
E) individual marketing

Accepted Answer

Micromarketing focuses on individual customers and their specific needs and preferences, making individual marketing the best choice for the extreme end of micromarketing. This involves tailoring products and marketing programs to each individual customer. Differentiated marketing, multi-segmented marketing, and local marketing still involve broader target markets and segments, while mass marketing ignores individual needs and preferences altogether.

Question 13

The full positioning of a brand is called the unique selling proposition.

Accepted Answer

The full positioning of a brand encompasses its unique selling proposition (USP) but also includes other elements such as target market, brand promise, and the overall experience a brand aims to deliver. The USP is a component of brand positioning, not its entirety.

Question 14

The distinctive yellow and blue "hands held high" logo of a local daycare distinguishes it from other establishments. The logo is prominently displayed on its building, t-shirts worn by the children, and at fundraising events. The daycare has differentiated itself through ________.
A) image
B) people
C) services
D) channels
E) positioning

Accepted Answer

The daycare has differentiated itself through image, specifically through the use of the distinctive yellow and blue "hands held high" logo, which is prominently displayed on various items associated with the daycare.

Question 15

Bose promises "better sound through research." This is an example of ________.
A) people differentiation
B) channel differentiation
C) price differentiation
D) services differentiation
E) product differentiation

Accepted Answer

The statement "better sound through research" is an example of product differentiation, as Bose is emphasizing the unique features and qualities of their product (i.e. better sound) in comparison to their competitors.

Question 16

Which of the following is true of product positioning?
A) A product's position is defined by the number of competitors in a market.
B) Product positioning has little influence on the design of marketing mixes.
C) Consumers generally reevaluate products every time they make a buying decision.
D) To simplify the buying process, consumers are likely to position products in their minds.
E) Consumers cannot position products with or without the help of marketers.

Accepted Answer

Product positioning refers to the way a product is perceived by consumers in relation to competing products. To simplify the buying process, consumers often position products in their minds based on factors such as price, quality, and features. This positioning can have a significant impact on their buying decisions. Marketers can also influence product positioning through branding, advertising, and other elements of the marketing mix. Therefore, option D is the correct answer. The other options are incorrect as they either make false statements (A and E) or underestimate the importance of product positioning (B and C).

Question 17

The low cost of setting up shop on the Internet makes it even more profitable to serve seemingly small niches.

Accepted Answer

With low start-up costs, it is easier for businesses to target niche markets and still be profitable.

Question 18

Which of the following types of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance?
A) services differentiation
B) channel differentiation
C) people differentiation
D) product differentiation
E) price differentiation

Accepted Answer

Channel differentiation refers to designing a unique distribution network that sets a company apart from its competitors. This could include offering exclusive access to certain channels, superior distribution coverage, or having the expertise to coordinate logistics efficiently. By offering a differentiated channel, a firm can gain a competitive advantage in the marketplace.

Question 19

Compare and contrast the four major strategies that are generally used to target market segments.

Accepted Answer

The answer of Compare and contrast the four major strategies...

Question 20

Describe the process by which companies identify attractive market segments and choose a target marketing strategy.

Accepted Answer

The answer of Describe the process by which companies identify...

Quiz 6: Customer-Driven Marketing Strategy: Creating Value for Target Customers

Compare and contrast local and individual marketing.

Companies are likely to gain ________ through speedy, convenient, or careful delivery of products.

A market segment with powerful suppliers controlling the prices is more attractive than a segment with less powerful suppliers.

Smaller companies may lack the skills and resources needed to serve larger segments.

A segment is more attractive if it is easy for new competitors to enter the market.

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.

Using a differentiated marketing strategy, a company is likely to design a product and a marketing program that will appeal to the largest number of buyers.

Describe a few ways in which a marketer can engage in socially responsible target marketing.

Even if a segment has the right size and growth and is structurally attractive, a company must consider its own objectives and resources before targeting that segment.

When a company interacts one-on-one with large numbers of customers to create customer-unique value by designing products and services tailor-made to individual needs, it is engaging in ________.

At the extreme, micromarketing becomes ________ insofar as products and marketing programs are tailored to the needs and preferences of customers.

The full positioning of a brand is called the unique selling proposition.

The distinctive yellow and blue "hands held high" logo of a local daycare distinguishes it from other establishments. The logo is prominently displayed on its building, t-shirts worn by the children, and at fundraising events. The daycare has differentiated itself through ________.

Bose promises "better sound through research." This is an example of ________.

Which of the following is true of product positioning?

The low cost of setting up shop on the Internet makes it even more profitable to serve seemingly small niches.

Which of the following types of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance?

Compare and contrast the four major strategies that are generally used to target market segments.

Describe the process by which companies identify attractive market segments and choose a target marketing strategy.