Question 1

A firm that adopts an undifferentiated targeting strategy assumes that:

Accepted Answer

An undifferentiated targeting strategy assumes that individual customers have similar needs that can be met with a common marketing mix. This means that the firm does not differentiate its marketing efforts towards specific market segments but rather targets the entire market with a standardized product and marketing campaign.

Question 2

_____ helps marketers develop marketing programs tailored to prospective buyers who live in small regions or who have very specific lifestyle.

Accepted Answer

Geodemographic segmentation combines demographic data with geographic data to create profiles of consumers that can be used to target marketing efforts. This approach is particularly useful for developing marketing programs tailored to potential buyers who live in small regions or who have very specific lifestyles.

Question 3

Laelle is a confectionery company that manufactures candies. It does not use specific strategies to target children while marketing its products. Instead, it uses the same strategies to promote its candies among all consumers in the market. In this scenario, Laelle uses a(n) _____.

Accepted Answer

Laelle is using an undifferentiated targeting strategy where it is promoting its candies among all consumers in the market without specific targeting of children.

Question 4

Explain product differentiation as a positioning strategy used by marketers to distinguish their products from competitors.

Accepted Answer

The answer of Explain product differentiation as a positioning strategy...

Question 5

_____ is a positioning base that focuses on a personality or type of consumer.

Accepted Answer

Product user positioning focuses on the personality or type of consumer. It aims to position a product for a specific category of users based on their characteristics, needs, and traits. This type of positioning could include targeting segments such as athletes, eco-conscious consumers, or busy moms.

Question 6

To be useful, a segmentation scheme must produce segments that:

Accepted Answer

A useful segmentation scheme should produce segments that are large enough to justify the development and maintenance of a special marketing mix, ensuring that the effort and resources invested in targeting these segments are worthwhile.

Question 7

_____ is market segmentation on the basis of personality, motives, lifestyles, and geodemographics.

Accepted Answer

Psychographic segmentation divides the market based on personality traits, values, interests, and lifestyles. This type of segmentation enables businesses to study the attitudes and behavior of consumers and create products that cater to their needs and preferences. Psychographic segmentation is a powerful marketing tool that allows marketers to understand customers’ motivations, buying habits, and decision-making processes.

Question 8

The purpose of market segmentation is to:

Accepted Answer

The purpose of market segmentation is to enable a marketer to tailor marketing mixes to meet the needs of one or more specific segments. This allows the marketer to better understand and target a particular group of customers, which can lead to increased sales and customer satisfaction. Market segmentation is not about changing attitudes or eliminating marketing objectives, and submarkets do not need to be of equal size or customer number.

Question 9

_____ refers to segmenting markets by region of a country or the world, market size, market density, or climate.

Accepted Answer

Geographic segmentation refers to dividing a market into different geographical units, such as countries, regions, states, cities, or neighborhoods. This type of segmentation is based on the premise that consumers in different geographic locations have different needs, preferences, and behaviors. Marketers use geographic segmentation to tailor their marketing mix (product, price, promotion, and place) to the specific characteristics of each geographic segment. For example, a company selling snow blowers would target its marketing efforts to regions with a colder climate and higher snow accumulation, while a company selling sunscreen would target regions with a warmer climate and higher sun exposure.

Question 10

Starlight Jewelry sends Lauren a birthday card along with a pendant as a token of appreciation for shopping frequently at its store. The trend portrayed in this customer relationship management technique is _____.

Accepted Answer

The customer relationship management technique portrayed in the scenario is loyalty, as Starlight Jewelry is aiming to reward and maintain a loyal customer by sending a birthday card and a pendant as a token of appreciation.

Question 11

In the context of age segmentation, the tween and teenage cohort following the Millennials is sometimes called _____.

Accepted Answer

The tween and teenage cohort following the Millennials is commonly referred to as Generation Z. Generation X refers to the age cohort born between the mid-1960s to the early-1980s, while the baby boomer generation refers to those born between 1946 and 1964. The Silent Generation refers to those born between 1928 and 1945.

Question 12

Companies that successfully implement customer relationship management (CRM) tend to:

Accepted Answer

Companies that successfully implement CRM tend to customize the goods and services offered to their customers based on their individual needs and preferences. This requires a deep understanding of the customer and effective use of customer data, which is facilitated through CRM systems and database technology. The use of an undifferentiated targeting strategy (A) and assuming that customers have similar needs (C) are not effective approaches for building strong, personalized relationships with customers. Minimizing the use of database technology (D) would hinder the ability to gather and analyze customer data needed for effective CRM.

Question 13

Trower Inc. has launched a new smartphone in two different variants. Both variants of the smartphone have a similar design but have different hardware specifications. The company uses this strategy so that the smartphone can be afforded by most people. In this scenario, Trower Inc. most likely uses _____.

Accepted Answer

Trower Inc. is targeting customers based on their income level by offering two variants of the same smartphone with different hardware specifications, thereby making the product affordable to most people. This is an example of income segmentation.

Question 14

Which of the following is a similarity between a stock market and a labor market?

Accepted Answer

Both stock market and labor market are composed of people with specific wants that can be satisfied by particular product categories. In the stock market, people are looking for specific types of stocks to invest in, while in the labor market, employers are looking for specific types of employees with particular skill sets to fill their job vacancies.

Question 15

Which of the following statements is true of product positioning?

Accepted Answer

Consumer goods marketers focus on positioning to differentiate their products in the minds of consumers, highlighting unique features, benefits, or values to stand out in a competitive market.

Question 16

Terra Corp. produces a wide range of furniture, such as cabinets, book cases, and wardrobes. It divides its consumer market into several groups of people who have similar interests in wooden furniture. In this context, dividing its consumer market most likely:

Accepted Answer

Dividing the consumer market into several groups with similar interests helps Terra Corp. to define customer needs and wants precisely. This, in turn, enables the company to tailor its marketing mix and strategies to meet the specific needs and preferences of each group.

Question 17

In the context of the strategies for selecting target markets, which of the following is a disadvantage of an undifferentiated targeting strategy?

Accepted Answer

An undifferentiated targeting strategy does not address the unique needs and preferences of different customer segments, resulting in generic and unappealing product offerings. This can lead to a lack of competitive advantage and difficulty in attracting customers. However, it does not necessarily result in market segments that are too small or that shrink, cannibalization of products, or increased production and marketing costs.

Question 18

_____ involves dividing a market into groups such as newborns, infants, young children, tweens, Millennials, Generation X, baby boomers, and seniors.

Accepted Answer

Age segmentation involves dividing a market into different age groups. The options given in the question such as newborns, infants, young children, tweens, Millennials, Generation X, baby boomers, and seniors all correspond to different age groups. Therefore, the correct answer is age segmentation.

Question 19

A firm using a(n) _____ essentially adopts a mass-market philosophy, viewing the market as one big market with no individual segments.

Accepted Answer

In an undifferentiated targeting strategy, the firm views the market as one big market with no individual segments and adopts a mass-market philosophy. The firm offers a single product or service to the entire market without any customization or differentiation. The strategy works best when the product is suitable for a wide range of consumers and when the cost of customization is high.

Question 20

Which of the following occurs when sales of a new product cut into sales of a firm's existing products?

Accepted Answer

Cannibalization occurs when sales of a new product come at the expense of sales of an existing product. It is a common risk when firms introduce a new product or service.

Quiz 8: Segmenting and Targeting Markets