Question 1

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

Accepted Answer

Evaluating market segments based on segment size and growth, segment structural attractiveness, and company objectives and resources is a commonly used approach in marketing. This helps firms identify the most profitable segments to target and allocate resources accordingly.

Question 2

Benefit segmentation requires finding the major benefits people look for in a product class, the kinds of people who look for each benefit, and the major brands that deliver each benefit.

Accepted Answer

Benefit segmentation is the process of identifying the major benefits that customers seek in a product category, the specific customer groups that value each benefit, and the major brands that provide each benefit.

Question 3

Using an undifferentiated marketing strategy, a firm decides to target several market segments and designs separate offers for each.

Accepted Answer

An undifferentiated marketing strategy, also known as mass marketing, involves targeting the entire market with a single offer. Therefore, the statement is false as it contradicts the definition of this type of marketing strategy.

Question 4

Marketers usually limit their segmentation analysis to only one major variable.

Accepted Answer

Marketers typically use multiple variables to segment their market, as this allows for a more nuanced understanding of their target audience.

Question 5

Individual marketing is also known as one-to-one marketing, mass customization, and markets-of-one marketing.

Accepted Answer

This statement is true. Individual marketing refers to the practice of tailoring marketing messages and strategies to meet the specific needs of individual customers or small groups of customers. It is also known by other names such as one-to-one marketing, mass customization, and markets-of-one marketing.

Question 6

A product position is the way a product is defined by consumers on important attributes.

Accepted Answer

A product position is the perception of consumers about a product on important attributes such as quality, price, features, and benefits. It is shaped by the marketing mix and the company's branding efforts.

Question 7

The relative power of buyers affects segment attractiveness.

Accepted Answer

If buyers have strong bargaining power, they can negotiate for lower prices or better deals from the company, which can reduce the profitability of the segment and make it less attractive. On the other hand, if buyers have weak bargaining power, the company has more control over pricing and can potentially earn higher profits, making the segment more attractive.

Question 8

Demographic segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.

Accepted Answer

Demographic segmentation divides buyers based on characteristics such as age, gender, income level, education level, and ethnicity. What is described in the statement is psychographic segmentation.

Question 9

A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.

Accepted Answer

This is the definition of a target market.

Question 10

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

Accepted Answer

The answer of Firms that practice product differentiation gain competitive...

Question 11

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

Accepted Answer

By offering superior customer value, a company can stand out from its competitors, attract and retain customers, and ultimately gain a competitive advantage.

Question 12

Intermarket segmentation refers to forming segments of consumers who have different needs and buying behaviors in a given geographical region.

Accepted Answer

The answer of Intermarket segmentation refers to forming segments of...

Question 13

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

Accepted Answer

Gender segmentation has been commonly used in these industries to target specific consumers and tailor marketing strategies to their gender preferences.

Question 14

When using a niche marketing strategy, a firm goes after a large share of one or a few smaller segments.

Accepted Answer

This statement accurately describes niche marketing strategy, where a firm specializes in catering to one or a few specific and narrowly defined segments rather than attempting to appeal to the broader market.

Question 15

Psychographic segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.

Accepted Answer

This statement is true. Psychographic segmentation is a type of market segmentation that categorizes consumers based on their values, interests, behaviors, and attitudes.

Question 16

When segmenting by usage rate, markets can be segmented into nonusers, ex-users, potential users, first-time users, and regular users of a product.

Accepted Answer

The answer of When segmenting by usage rate, markets can...

Question 17

Using a segmented marketing strategy, a firm might decide to ignore market segment differences and target the whole market with one offer.

Accepted Answer

A segmented marketing strategy involves identifying and targeting different market segments with customized offers that meet their needs and preferences. Ignoring market segment differences and targeting the whole market with one offer is characteristic of an undifferentiated marketing strategy.

Question 18

When segmenting by user status, markets are segmented into light, medium, and heavy product users.

Accepted Answer

The answer of When segmenting by user status, markets are...

Question 19

Niche marketing involves tailoring brands and promotions to the needs and wants of local customer groups-cities, neighborhoods, and even specific stores.

Accepted Answer

The answer of Niche marketing involves tailoring brands and promotions...

Question 20

Product differentiation refers to the way a product is defined by consumers on important attributes-the place the product occupies in consumers' minds relative to competing products.

Accepted Answer

The answer of Product differentiation refers to the way a...

Quiz 7: Customer-Driven Marketing Strategy: Creating Value for Target Customers