Question 1

A disadvantage of the concentrated targeting strategy is that

Accepted Answer

The concentrated targeting strategy focuses on a single and specialized marketing mix, which means that the firm's financial condition becomes tied to that one product or service. This can be risky as any changes in the market, consumer preferences, or competition can impact the company's revenue and profitability. Therefore, the disadvantage of the concentrated targeting strategy is that the firm's financial condition is concentrated on a single product or service, making it vulnerable to changes in the market.

Question 2

Interior Designs Inc. sells expensive custom-made draperies, bedding, and accessories through sales representatives who are also interior designers. It also has another, slightly less expensive line that it sells through stores such as Nordstrom's and Saks Fifth Avenue. Interior Designs Inc. is most likely using a(n) ____ targeting strategy.

Accepted Answer

Interior Designs Inc. is using a differentiated targeting strategy by offering two lines of products – expensive custom-made products sold through sales representatives who are also interior designers and a slightly less expensive line sold through stores. This allows them to target different segments of the market with varying levels of disposable income and preferences.

Question 3

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is

Accepted Answer

The answer of After a firm has identified an appropriate...

Question 4

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) ____ strategy.

Accepted Answer

A concentrated strategy, also known as a niche marketing strategy, involves targeting a single market segment with a unique marketing mix tailored to their specific needs and wants. This approach allows organizations to focus their resources and efforts on serving a smaller but more defined customer segment, often resulting in higher customer satisfaction and loyalty.

Question 5

Which of the following is not one of the major categories of consumer market segmentation variables?

Accepted Answer

Situational variables are not one of the major categories of consumer market segmentation variables. The main categories include demographic characteristics, geographic variables, psychographic dimensions, and behavioristic characteristics. Situational variables refer to temporary factors that can influence consumer behavior, such as the time and place of a purchase, the reason for the purchase, and the buyer's mood or situation.

Question 6

Alpine Ski Shops is looking for new markets for both its brick and mortar retail stores and its catalog division. Alpine Ski Shops would most likely use a(n) ______ base for market segmentation of its stores and a(n) ______ base for market segmentation of its catalog division.

Accepted Answer

Alpine Ski Shops would use a geographic base for its brick and mortar stores to determine locations with high demand for skiing products. For its catalog division, a behavioristic base would be used to target customers based on their purchasing behavior and interests in skiing products.

Question 7

If Georgia-Pacific, a producer of home siding, decking, and other wood products, focused its marketing efforts to home construction companies only, it would be using a(n) ____ strategy. If it sold the same products to both construction companies and DIY retailers such as Home Depot, it would be using a(n) ____ strategy.

Accepted Answer

Focusing marketing efforts solely on home construction companies is a concentrated strategy, while selling to both construction companies and DIY retailers is a differentiated strategy.

Question 8

Age, rate of product use, location, and gender are all examples of common

Accepted Answer

These are examples of segmentation variables, which are used to divide a market into distinct groups based on characteristics like age, usage rate, location, and gender.

Question 9

Volkswagen markets its Routan to large families, its R32 race car to men, and its Jetta to young singles. What targeting approach is Volkswagen using?

Accepted Answer

Volkswagen is using a differentiated targeting approach because it is targeting several market segments with a different product for each segment.

Question 10

The primary advantage of a concentrated targeting strategy is

Accepted Answer

A concentrated targeting strategy allows a firm to specialize and focus its resources on meeting the specific needs of a particular customer group or market segment. This can lead to greater effectiveness and efficiency in meeting those needs, and ultimately, greater customer satisfaction and loyalty. Additionally, the specialization can allow for differentiation from competitors and a stronger brand image within the targeted market.

Question 11

Which of the following products is most likely to be marketed using an undifferentiated approach?

Accepted Answer

Seasoning salt is a basic product that is likely to be used by a wide range of consumers for a variety of purposes. As such, it is more likely to be marketed using an undifferentiated approach, which targets a broad range of consumers without segmenting them into specific groups based on their needs or preferences. In contrast, products like bicycles, computers, notebooks, and oscillating fans are more likely to be marketed using differentiated or niche approaches that target specific segments of consumers with unique needs and preferences.

Question 12

A business advantage of the concentrated targeting strategy for any company is that it

Accepted Answer

The concentrated targeting strategy allows a firm to develop a special marketing mix for a single market segment, which can lead to greater customer loyalty and higher profits. This strategy requires intensive analysis of customers' characteristics and needs, but it can be more efficient and effective than trying to appeal to multiple segments with different preferences. It may also allow the firm to differentiate itself from competitors and create a stronger brand identity within the target market.

Question 13

With its Venus razor, Gillette was the first marketer to offer a triple blade razor specifically designed for women. This is an example of market segmentation using ____ variables.

Accepted Answer

Demographic variables are characteristics of a population such as age, gender, income, education level, occupation, etc. In this case, Gillette segmented the market based on gender, creating a product specifically designed for women, which is a demographic variable.

Question 14

Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income. Kelly's Kids is using ____ variables to segment its market.

Accepted Answer

Kelly's Kids is segmenting its market based on demographic variables such as age, income, and family size, as indicated by the target audience of families with small children and middle- to upper-middle-class income.

Question 15

When markets are comprised of people with differing product needs, the marketing manager should use a(n) ____ strategy.

Accepted Answer

Concentrated or differentiated targeting strategies allow marketing managers to tailor their message and offerings to specific segments of the market with different needs and preferences. This approach is more effective than an undifferentiated strategy when the market is diverse and demands different products or services. Market-intensive and product-oriented strategies do not address the need to target specific segments, while an integrated strategy refers to coordinating various marketing channels, rather than targeting specific market segments.

Question 16

TimeWarner Cable uses a segmentation strategy for its cable TV packages based on market characteristics such as age, gender, or income. Which of the following segmentation variables is TimeWarner using?

Accepted Answer

TimeWarner Cable is using demographic segmentation variables, which are based on characteristics such as age, gender, or income. This type of segmentation allows them to tailor their cable TV packages to specific groups with similar characteristics and needs.

Question 17

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ____ targeting strategy for laundry detergents.

Accepted Answer

Procter & Gamble is using a differentiated targeting strategy for laundry detergents by creating different brands for different target markets. They have Cheer detergent for young singles and couples and Tide detergent for families, catering to the specific needs and preferences of each segment.

Question 18

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables.

Accepted Answer

Segmentation variables are used to divide a total market into smaller groups with similar characteristics. These variables can be based on demographic factors such as age, gender, income, education level, or psychographic factors such as values, attitudes, and lifestyles. By segmenting the market based on these variables, companies can tailor their marketing efforts to appeal to the specific needs and preferences of each segment.

Question 19

Segmentation variables are usually grouped into four categories:

Accepted Answer

The four categories of segmentation variables are demographic (such as age, gender), geographic (such as location), psychographic (such as values, attitudes), and behavioristic (such as usage rate, brand loyalty). Therefore, choice E (demographic, geographic, psychographic, and behavioristic) is the correct option. The other options either combine incorrect variables or leave out important variables.

Question 20

Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name. It uses the same marketing mix to reach this market. Tiffany's uses a(n) ____ strategy.

Accepted Answer

Tiffany's exclusive targeting strategy focuses on a specific segment of high-income individuals, using the same marketing mix to reach them. This is an example of concentrated targeting.

Quiz 6: Target Markets, Segmentation and Evaluation