Question 1

Not all attempts to target children, minorities, or other special segments draw criticism. Which of the following is the best illustration of a company (or industry) that seems to be marketing to the above in a correct and ethical way?
A) McDonald's marketing to inner-city youth
B) R. J. Reynolds marketing of the Kool brand
C) RBC's sponsorship of the Wicket Cricket program
D) the toy industry's tendency to overwhelm children's defences
E) the cereal industry's approaches to children

Accepted Answer

RBC's sponsorship of the Wicket Cricket program is an example of ethical marketing to children. This program promotes physical activity and teamwork among children in diverse communities, without targeting them with advertising and commercial messages.

Question 2

Which of the following costs that are likely to be lower if a marketer pursues an undifferentiated marketing approach?
A) administrative costs
B) service costs
C) advertising costs
D) pricing costs
E) management costs

Accepted Answer

Undifferentiated marketing approach means reaching out to a larger audience with a single marketing communication plan. Therefore, the cost of creating different advertisements for different segments will be saved.

Question 3

As a brand manager you have decided to use the full market coverage approach in marketing to your customers. Within the full market coverage approach, you have selected a(n) ________ strategy whereby your firm will operate in several market segments and design different products for each segment.
A) concentrated
B) differentiated
C) undifferentiated
D) introverted
E) parallel

Accepted Answer

Within the full market coverage approach, the differentiated strategy is most suitable when a firm operates in several market segments and designs different products for each segment. This strategy allows the firm to meet the specific needs and wants of each segment, which can result in higher customer satisfaction and loyalty. The concentrated strategy involves focusing on one particular segment, whereas the undifferentiated strategy involves offering a single product or service to the entire market without considering the specific needs of different segments. The introverted and parallel strategies are not relevant to this approach.

Question 4

The chief disadvantage to a firm that decides to follow a product specialization strategy in selecting target markets is that
A) logistics can become a nightmare.
B) competitors can easily copy any new product introductions.
C) no synergy exists.
D) the product may be supplanted by an entirely new technology.
E) e-commerce becomes difficult for the company.

Accepted Answer

The chief disadvantage of following a product specialization strategy is that the product may be supplanted by an entirely new technology, making it obsolete and irrelevant in the market. This can lead to a loss of market share and profits for the firm.

Question 5

A marketer is interested in segmenting a business market on ________ if the marketer intends to segment the market based on industries and geographical areas to serve.
A) situational factors
B) operating variables
C) demographic variables
D) purchasing approaches
E) personal characteristics

Accepted Answer

Demographic variables include factors such as industry and geographical location, which are used to segment business markets.

Question 6

Eddie Bauer, an upscale sportswear retailer, has used a ________ approach such as PRIZM to better locate stores and serve customers.
A) diffusing
B) discretionary
C) customer cloning
D) guerillas against gorillas
E) customizing

Accepted Answer

PRIZM is a geodemographic segmentation tool that helps businesses identify and understand their customers better by analyzing demographic and geographic data. Eddie Bauer uses this approach, referred to as "customer cloning," to find locations and serve customers who are similar to their current customer base. This strategy involves identifying the characteristics of their best customers and then finding other people who share those characteristics.

Question 7

A marketing manager has decided to take a "purchasing approach" to segmenting a proposed business market. Which of the following would be a potential means sub-segments for segmenting under this approach?
A) attitudes toward risk
B) purchasing-function organization
C) customer capabilities
D) size of order
E) specific application

Accepted Answer

The answer of A marketing manager has decided to take...

Question 8

If your assignment was to create a "value proposition" and product-price positioning strategy based on the segment's unique customer needs and characteristics, you would be in which of the following steps of the segmentation process?
A) segment "acid-test"
B) segment positioning
C) needs-based segmentation
D) segment identification
E) segment attractiveness

Accepted Answer

Segment positioning involves creating a value proposition and product-price positioning strategy based on the unique needs and characteristics of the target segment. This step comes after segment identification and needs-based segmentation, and before evaluating segment attractiveness with the acid-test.

Question 9

________ are products such as the Mercedes Benz C-class and the American Express Blue card, that extend historically high-priced brands down-market while retaining their cachet.
A) Hourglass products
B) Mass market products
C) Masstige goods
D) Old Luxury brand extensions
E) Accessible superpremium products

Accepted Answer

The answer of ________ are products such as the Mercedes...

Question 10

With ________ as a target market strategy, the firm concentrates on serving many needs of a particular customer group.
A) selective specialization
B) full market coverage
C) market specialization
D) product specialization
E) single-segment concentration

Accepted Answer

Market specialization is a target market strategy in which a firm focuses on serving the specific needs of a particular customer group. This approach involves tailoring marketing efforts, product development, and other business activities to the preferences and characteristics of a defined segment of the market. By focusing on a narrow group of customers, the company can develop a deep understanding of their needs and preferences, develop products and services that meet those needs, and establish strong relationships with customers to build loyalty and long-term value. This strategy is often used by smaller or niche businesses that compete in crowded or highly competitive markets.

Question 11

A hardware store has decided to use the VALS segmentation system to target consumers. The store is particularly interested in reaching people who are characterized by the VALS system as being practical, down-to-earth, and self-sufficient who like to work with their hands. Which of the following VALS categories most likely matches to the hardware store's segment of interest?
A) Makers
B) Strivers
C) Experiencers
D) Survivors
E) Believers

Accepted Answer

According to the VALS segmentation system, people who are characterized as practical, down-to-earth, and self-sufficient are typically classified as Makers. Makers enjoy working with their hands and prefer practical solutions over extravagant ones. Therefore, this category is most likely to match the hardware store's segment of interest.

Question 12

Linda was buying all her groceries from Home Needs supermarket for the past 5 years. She recently came across The Convenience Store, another supermarket just a few miles away from her place and started buying her groceries from them. Linda can be best described as ________.
A) a split loyal
B) an antiloyal
C) a hard-core loyal
D) a shifting loyal
E) a switcher

Accepted Answer

Linda is a shifting loyal as she switched her loyalty from Home Needs to The Convenience Store.

Question 13

The two ways that large firms can cover a whole market (e.g., full market coverage strategy) are through ________ and differentiated marketing.
A) niche
B) undifferentiated
C) logistical
D) psychological
E) macromarketing

Accepted Answer

Undifferentiated marketing involves targeting the whole market with one offer, focusing on what is common in the needs of consumers, rather than on what is different.

Question 14

Television networks and concert promoters should be very interested in what demographers are calling the "boom-boom effect", which means
A) products that appeal to 20-somethings also appeal to baby boomers.
B) consumers are demanding more "bang for their buck".
C) companies must have success quickly or go bust.
D) Generation X and their taste for violence will dominate the market in the future.
E) baby boomers still rule the marketplace.

Accepted Answer

The "boom-boom effect" refers to the fact that products or entertainment that appeal to young adults (often referred to as the "boom" generation) also tend to appeal to baby boomers (often referred to as the "boomers"). This is important for television networks and concert promoters to understand because it means that they can target both demographics with the same content or events.

Question 15

A brand funnel can be used by marketers to help characterize
A) lifestyle associations.
B) buyer-readiness stages.
C) decision roles.
D) benefits sought.
E) loyalty status.

Accepted Answer

A brand funnel, also known as a purchase funnel, is a visualization tool that maps out the stages a consumer goes through when making a purchase. These stages include awareness, consideration, preference, and purchase. By understanding where a consumer is on this funnel, marketers can tailor their messaging and tactics to move the consumer closer to making a purchase. Therefore, a brand funnel can be used to help characterize buyer-readiness stages.

Question 16

A marketing manager targeting Generation Y should be aware that this group is turned off by
A) the "soft sell".
B) overt branding practices.
C) cool events.
D) online buzz.
E) unconventional sports.

Accepted Answer

Generation Y is known for being skeptical of traditional advertising and branding practices. Instead, they respond better to brands that are authentic and focus on providing value rather than just promoting themselves. Therefore, overt branding practices are likely to turn them off.

Question 17

In segmenting its markets, an aluminum company first looked at which end-use market to serve: automobile, residential, or beverage containers. This is an example of ________.
A) macrosegmentation
B) microsegmentation
C) multiple segments
D) need-based segmentation
E) industry segmentation

Accepted Answer

This is an example of macrosegmentation as the company is dividing the market based on broad categories such as end-use markets.

Question 18

In ________ marketing, the firm operates in several market segments and designs different products for each segment.
A) undifferentiated
B) niche
C) geodemographic
D) segmented
E) differentiated

Accepted Answer

Differentiated marketing involves targeting multiple market segments and creating distinct products or marketing strategies for each segment.

Question 19

Increasingly, companies are finding that their markets are ________ as middle-market consumers migrate toward both discount and premium products.
A) "hourglass-shaped"
B) "circular"
C) "triangle-shaped"
D) "inverted"
E) "linear"

Accepted Answer

An hourglass shape describes a situation where the market is polarized between high-end and low-end products, with the middle market shrinking. This is an accurate description of the situation described in the sentence.

Question 20

Mothers-to-be are potential users who will turn into heavy users of infant products and services. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________.
A) attitude
B) buyer-readiness stage
C) loyalty status
D) user status
E) benefits

Accepted Answer

By targeting mothers-to-be, producers of infant products and services are segmenting consumers based on their user status, as they will potentially become heavy users of these products and services once they give birth to their child.

Quiz 8: Identifying Market Segments and Targets

Not all attempts to target children, minorities, or other special segments draw criticism. Which of the following is the best illustration of a company (or industry) that seems to be marketing to the above in a correct and ethical way?

Which of the following costs that are likely to be lower if a marketer pursues an undifferentiated marketing approach?

As a brand manager you have decided to use the full market coverage approach in marketing to your customers. Within the full market coverage approach, you have selected a(n) ________ strategy whereby your firm will operate in several market segments and design different products for each segment.

The chief disadvantage to a firm that decides to follow a product specialization strategy in selecting target markets is that

A marketer is interested in segmenting a business market on ________ if the marketer intends to segment the market based on industries and geographical areas to serve.

Eddie Bauer, an upscale sportswear retailer, has used a ________ approach such as PRIZM to better locate stores and serve customers.

A marketing manager has decided to take a "purchasing approach" to segmenting a proposed business market. Which of the following would be a potential means sub-segments for segmenting under this approach?

If your assignment was to create a "value proposition" and product-price positioning strategy based on the segment's unique customer needs and characteristics, you would be in which of the following steps of the segmentation process?

________ are products such as the Mercedes Benz C-class and the American Express Blue card, that extend historically high-priced brands down-market while retaining their cachet.

With ________ as a target market strategy, the firm concentrates on serving many needs of a particular customer group.

Linda was buying all her groceries from Home Needs supermarket for the past 5 years. She recently came across The Convenience Store, another supermarket just a few miles away from her place and started buying her groceries from them. Linda can be best described as ________.

The two ways that large firms can cover a whole market (e.g., full market coverage strategy) are through ________ and differentiated marketing.

Television networks and concert promoters should be very interested in what demographers are calling the "boom-boom effect", which means

A brand funnel can be used by marketers to help characterize

A marketing manager targeting Generation Y should be aware that this group is turned off by

In segmenting its markets, an aluminum company first looked at which end-use market to serve: automobile, residential, or beverage containers. This is an example of ________.

In ________ marketing, the firm operates in several market segments and designs different products for each segment.

Increasingly, companies are finding that their markets are ________ as middle-market consumers migrate toward both discount and premium products.

Mothers-to-be are potential users who will turn into heavy users of infant products and services. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________.