Question 1

Positioning strategies generally focus either on how the product benefits the consumer or on how it is better than competitors' products.

Accepted Answer

This statement is true. Positioning strategies can focus on highlighting the benefits of the product to the consumer, such as convenience or cost-effectiveness, or on emphasizing how the product is superior to competitor products, such as higher quality or better features.

Question 2

The first step in the STP process is to establish an overall strategy.

Accepted Answer

This statement is true. The first step in the STP (Segmentation, Targeting, and Positioning) process is to establish an overall strategy, which includes setting objectives, understanding the market environment, analyzing customer needs and behaviors, and determining the potential advantages and limitations of the company's offerings.

Question 3

A value proposition compares the price of a product to its benefits.

Accepted Answer

A value proposition explains how a product or service solves/improves problems, delivers specific benefits, and why it's better than the competition, rather than just comparing price to benefits.

Question 4

When deciding how to promote his new medical oncology center, Dr. Jones decided that he did not need to throw a large grand opening reception. Instead, he promoted the center to the internal medicine doctors in the area, who were the doctors most likely to refer patients to the center. Dr. Jones was engaged in a concentrated targeting strategy.

Accepted Answer

Dr. Jones targeted a specific group (internal medicine doctors) who were most likely to refer patients to his center, which is a concentrated targeting strategy.

Question 5

A company that sells only multigrain, low-calorie bread should use an undifferentiated targeting strategy.

Accepted Answer

Since the company has a specific target market (health-conscious consumers who want multigrain, low-calorie options), they should use a differentiated targeting strategy to tailor their marketing efforts specifically to that group.

Question 6

When a marketer adjusts the marketing mix to give customers a clear, distinctive understanding of what the product does, the marketer is engaging in psychographic segmentation.

Accepted Answer

Psychographic segmentation involves dividing the market based on consumers' lifestyles, values, and personality traits, rather than just the characteristics of the product. Adjusting the marketing mix to communicate the product's features and benefits more effectively is part of product positioning and targeting, which is based on demographic and behavioral segmentation.

Question 7

Coca-Cola launched Coke Zero to avoid cannibalizing current sales and to attract new customers in a segment they might not get with Diet Coke.

Accepted Answer

Coca-Cola created Coke Zero with a different flavor profile and branding to target a male audience and avoid impacting sales of Diet Coke.

Question 8

The Value and Lifestyle Survey (VALS) conducted by Strategic Business Insights (SBI) is a widely used tool for geographic segmentation.

Accepted Answer

The Value and Lifestyle Survey (VALS) is primarily used for psychographic segmentation, focusing on consumers' values, attitudes, and lifestyles, rather than geographic segmentation.

Question 9

Giant Food Stores in suburban Washington,
D.C., adjusts its ethnic food aisle offerings based on the ethnic groups living near each store. Giant Foods is using geodemographic segmentation.

Accepted Answer

Geodemographic segmentation involves identifying different customer segments based on where they live, including their demographic and lifestyle characteristics. In this case, Giant Food Stores is adapting its offerings based on the ethnic groups living near each store, which is an example of geodemographic segmentation.

Question 10

Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the firm has ever used. She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to
A) develop an advertising plan to promote the upcoming sales.
B) find marketing interns or hire new staff to help with implementation.
C) create pro forma financial statements to complete the package.
D) identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis.
E) use the Internet, catalogs, and vendor information to draw up a list of new products.

Accepted Answer

The next step that Sally needs to take is to identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis. This will provide her with a clear understanding of the market and enable her to develop a targeted marketing strategy that will be effective in achieving the firm's objectives. Developing an advertising plan, finding marketing interns or new staff, creating pro forma financial statements, and drawing up a list of new products are all steps that come later in the marketing planning process.

Question 11

Segmentation, targeting, and positioning
A) are terms that can be used interchangeably in developing marketing plans.
B) are part of a firm's marketing strategy.
C) should be done simultaneously so synergies can help streamline the effort.
D) are part of the marketing plan but bear little direct relationship to the marketing mix.
E) are optional elements of a marketing plan.

Accepted Answer

Segmentation, targeting, and positioning are essential parts of a firm's overall marketing strategy. Segmentation involves dividing the market into distinct groups of customers with differing needs and characteristics. Targeting involves selecting one or more of those segments to focus on with specific marketing efforts. Positioning involves differentiating the firm's products or services in the minds of the targeted customers. These three elements are crucial for a successful marketing plan and must be done in conjunction with each other.

Question 12

A self-values map displays the position of products or brands in the consumer's mind.

Accepted Answer

The answer of A self-values map displays the position of...

Question 13

The STP process is made up of strategy, targeting, and promotion.

Accepted Answer

The STP process stands for Segmentation, Targeting, and Positioning, not strategy, targeting, and promotion.

Question 14

It would be logical for bathing suit marketers to use geographic segmentation.

Accepted Answer

Geographic segmentation is based on dividing consumers into groups based on their location or region. Bathing suit marketers can use geographic segmentation to target consumers living in warm, sunny areas where swimming and beach activities are popular. They can also target consumers who live near lakes, rivers or ocean fronts, as well as tourists visiting these areas.

Question 15

A complex product that is best described in writing will be difficult to explain to consumers who are unable to read. For this reason, a segment in which many consumers could not read would be considered unattractive because the consumers would not be responsive.

Accepted Answer

The answer of A complex product that is best described...

Question 16

Perceptual maps include positions of current brands as well as ideal points where a consumer segment would want a product to be.

Accepted Answer

Perceptual maps display both the current positions of existing brands as well as the desired or ideal positions that a consumer segment would prefer for a product.

Question 17

Maintaining a unique value proposition can be sustained in the long term only in monopoly situations or monopolistic competition situations.

Accepted Answer

The answer of Maintaining a unique value proposition can be...

Question 18

NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of its fans were female. This is an example of psychographic segmentation.

Accepted Answer

This is an example of demographic segmentation, which categorizes the market based on observable characteristics such as age, gender, income, etc. Psychographic segmentation involves dividing the market based on lifestyle, values, attitudes, and personality traits.

Question 19

For products like pencils and paper clips, marketers should probably use an undifferentiated targeting strategy.

Accepted Answer

Both pencils and paper clips are everyday, generic items that do not have unique features or benefits to appeal to specific segments of consumers. Therefore, an undifferentiated targeting strategy, where the product is marketed and promoted to the entire market as a whole, is likely the most effective approach.

Question 20

Automobile manufacturers could build cars specially designed for very tall people (for example, over seven feet), but it is likely that this segment is not substantial.

Accepted Answer

The segment of people who are over seven feet tall is very small, so it is not likely to be a substantial market for automobile manufacturers to produce cars specially designed for them.

Quiz 9: Segmentation, Targeting, and Positioning