Question 1

Segmenting that grouped people who had similar demographics and lifestyles into neighborhood clusters:

Accepted Answer

Segmenting that grouped people with similar demographics and lifestyles into neighborhood clusters began in the 1970s with PRIZM, a pioneering marketing tool developed by Claritas (now part of Nielsen), which classified every U.S. neighborhood into unique segments for targeted marketing.

Question 2

The primary purpose for target marketing is to avoid wasting time and money by targeting people who are unlikely to buy the product and to identify and communicate with groups of prime prospects.

Accepted Answer

The statement accurately describes the primary purpose of target marketing.

Question 3

Clarita's PRIZM is a geodemographic source that shows how this type of service has become more science than art.

Accepted Answer

PRIZM is a geodemographic source that uses data-driven methods to analyze and classify consumers based on their demographic and geographic variables. This makes PRIZM more of a science than an art, as it relies on data and statistics to make predictions and insights.

Question 4

According to Saatchi & Saatchi, cities may be selected to test market a product for the following reason.

Accepted Answer

The answer of According to Saatchi & Saatchi, cities may...

Question 5

In positioning, you must:

Accepted Answer

Positioning is about identifying and establishing the unique identity of a product or brand in the minds of consumers. By fitting the product into the lifestyle of the buyer, it creates a connection between the product and the consumer, making it easier for them to identify with and relate to. This ultimately increases the chances of the product being successful in the market. The other choices (A, C, D, and E) are not accurate or helpful in the context of positioning.

Question 6

Nyquil is an example of:

Accepted Answer

Nyquil is an example of a test product that needed to be repositioned. Initially, it was not positioned or marketed with a clear purpose, but it was later successfully repositioned as a nighttime cold and flu remedy, highlighting its sedative properties to help users sleep.

Question 7

According to Vickie Abrahamson, a tight-knit, alternative community that shares common values and passions is nesting.

Accepted Answer

Vickie Abrahamson used the term "nesting" to describe the trend of people seeking comfort and security in their homes, not to describe a tight-knit, alternative community that shares common values and passions.

Question 8

According to David Aaker, the most-used positioning strategy is:

Accepted Answer

Aaker suggests that the most common positioning strategy involves associating a product with a specific attribute or characteristic, which helps differentiate it from competitors in the minds of consumers.

Question 9

Population is far more than just number of people, especially when we realize that it can indicate significant changes in a country.

Accepted Answer

Population growth or decline can impact a country's economy, politics, environment, and social structure, making it more than just a simple number of people.

Question 10

In a discussion of heavy users, which of the following is false?

Accepted Answer

The correct terminology for referring to heavy users in the context of their importance to businesses is the "80/20 rule," not the "20/80 rule." This principle suggests that roughly 80% of effects come from 20% of causes, which in marketing terms often translates to 80% of sales coming from 20% of customers.

Question 11

In a discussion of psychographics, which of the following is false?

Accepted Answer

The answer of In a discussion of psychographics, which of...

Question 12

The population for the next 25 years will be smaller, younger and less diverse than ever before in the United States.

Accepted Answer

This statement is false. The population of the United States is projected to continue to grow, become more diverse, and have an aging population.

Question 13

Which of the following would NOT be a characteristic of niche marketing?

Accepted Answer

Niche marketing is not simply a buzzword for market segmentation. While market segmentation may be a part of niche marketing, it also involves creating a specific product or variation that meets the needs of a particular group or market segment and engaging competitors at their points of weakness. Niche marketing is a flanking strategy that focuses on narrow windows of opportunity within a broader product market or industry.

Question 14

A type of segmentation that tries to determine whether people will switch preferences in purchasing products is:

Accepted Answer

Brand loyalty segmentation determines the likelihood of customers switching their preferences in purchasing products. It identifies customers who are loyal to a particular brand and those who are more likely to switch to another.

Question 15

Steps in examining an overall market profile include all of the following EXCEPT:

Accepted Answer

Determining the ad copy approach to reach the prime audience is not a step in examining an overall market profile. The other options, such as determining overall usage of the product type, the growth or decline of the product category, market share trends, and our share of the market compared to competitors, are all important steps in examining an overall market profile.

Question 16

The number one test market city that represents American consumers as a whole is:

Accepted Answer

The answer of The number one test market city that...

Question 17

According to Jack Trout and Al Ries, for advertisers thinking about positioning, the key questions to ask include:

Accepted Answer

The key question to ask for advertisers thinking about positioning is "What position do we want to own?" This helps establish the direction and focus for the branding and advertising efforts. The other choices are related questions but are not necessarily the key questions to ask for positioning.

Question 18

The best approach to take when making media decisions is to:

Accepted Answer

Remaining media neutral allows for a more strategic and objective approach to media decision-making. It allows for consideration of a variety of media options based on their effectiveness for reaching target audiences and achieving campaign objectives, rather than being biased towards certain types of media that have worked in the past or relying solely on ratings. Including interactive or print media may be appropriate depending on the campaign goals, but it should not be the primary determining factor in media decisions.

Question 19

Which of the following companies, according to your text, suffered from being so talented at segmenting the market that shortly after it developed its Value Menu, most of its competitors followed suit and diluted their profits?

Accepted Answer

Taco Bell experienced a dilution in profits after successfully segmenting the market with its Value Menu, which led to competitors adopting similar strategies, thereby reducing the uniqueness and competitive advantage of Taco Bell's offering.

Question 20

Challenges in positioning that advertisers could face include:

Accepted Answer

Changing or shifting the appeals used to position a product can have unintended consequences on the product's image and consumer perception, potentially leading to negative outcomes for the campaign. Hence, advertisers should be careful about altering the product's positioning, which may negatively impact the brand's image.

Quiz 4: Target Marketing