Question 1

The purpose of the five key steps in segmenting and targeting markets is to
A)identify competitors that provide similar products that satisfy a firm's customers' needs.
B)provide guidance to reposition a firm's products.
C)generate new-product ideas for firms that are not growing in market share.
D)link market needs of customers to the organization's marketing program.
E)correlate directly to each of the five environmental forces.

Accepted Answer

Figure 9-3 shows the five key steps in segmenting and targeting markets that link customers' needs to the organization's marketing program.

Question 2

There are five steps involved in segmenting and targeting markets.What should a marketer do after he or she has grouped products to be sold into categories?
A)Create product groupings.
B)Identify market needs.
C)Take marketing actions to reach target markets.
D)Develop a market-product grid and estimate size of markets.
E)Form prospective buyers into market segments.

Accepted Answer

The five key steps in segmenting and targeting markets that link the market needs of customers to the organization's marketing program are (1)Group potential buyers into segments,(2)group products to be sold into categories,(3)develop a market-product grid and estimate size of markets,(4)select target markets,and (5)take marketing actions to reach target markets.

Question 3

A marketing manager goes through several steps to put a market segmentation plan into effect.This includes being able to form market segments and then ________ without encountering excessive costs.
A)eliminate potential nonbuyers
B)identify segmentation variables
C)select the market segments to target
D)redirect their purchase behaviors
E)ignore any and all similarities

Accepted Answer

A marketing manager must be able to put a market segmentation plan into effect.This means identifying the characteristics of potential buyers in a market and then cost-effectively assigning them to a segment.

Question 4

Which of the following is an example of a Tiffany/Walmart strategy?
A)College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the United States.
B)A new movie used several different movie trailers;one showed the action scenes in order to attract one audience and the other showed romantic scenes to attract another audience.
C)Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes.
D)Gap's Banana Republic chain sells blue jeans for $58,whereas its Old Navy stores sell a slightly different version for $22.
E)Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Accepted Answer

Marketers increasingly emphasize a two-tier,Tiffany/Walmart strategy.Many firms now offer different variations of the same basic offering to high-end and low-end segments-the situation for Gap's Banana Republic and Old Navy.

Question 5

You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50.Or you can buy a Hallmark card from its new $0.99 line of greeting cards,made with lesser-quality materials but just as sentimental,sold at Barnes & Noble bookstores.This is an example of
A)mass customization.
B)organizational synergy.
C)one product and multiple market segments.
D)price discrimination.
E)a Tiffany/Walmart strategy.

Accepted Answer

Marketers increasingly emphasize a two-tier,Tiffany/Walmart strategy.Many firms now offer different variations of the same basic offering to high-end and low-end segments-the situation for Hallmark's various greeting cards.

Question 6

Segmentation based on where prospective customers live or work is referred to as
A)zip code segmentation.
B)geographic segmentation.
C)trade area segmentation.
D)district segmentation.
E)NAICS code segmentation.

Accepted Answer

Key term definition-geographic segmentation.

Question 7

The final step in segmenting and targeting markets that links customer needs to marketing actions is to
A)take marketing actions to reach target markets.
B)group potential buyers into segments.
C)select target markets.
D)group products to be sold into categories.
E)develop a market-product grid and estimate size of the overall market.

Accepted Answer

The five key steps in segmenting and targeting markets that link the market needs of customers to the organization's marketing program are (1)Group potential buyers into segments,(2)group products to be sold into categories,(3)develop a market-product grid and estimate size of markets,(4)select target markets,and (5)take marketing actions to reach target markets.

Question 8

Criteria for forming segments involve both similarities and differences.Which of the following statements is most accurate?
A)Within a segment,the needs of potential buyers should be different;among segments,the needs of buyers should be similar.
B)Within a segment,the needs of potential buyers should be similar;among segments,the needs of buyers should be different.
C)The needs of buyers should be different,both between segments and within segments.
D)The needs of buyers should be the same,both between segments and within segments.
E)If there are any differences at all,you should forgo any segmentation.

Accepted Answer

Two criteria used in forming segments answer this question: similarity of needs of potential buyers within a segment and difference of needs of buyers among segments.

Question 9

Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer which of the following questions?
A)Is this product useful on a global scale?
B)Is it possible to reposition this product?
C)Is there too much competition for this product?
D)Is the market loyal to the product?
E)Would segmentation be worth doing and is it possible?

Accepted Answer

It's not always a good idea to segment a market.Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer the questions,"Would segmentation be worth doing?" and "Is it possible?" If so,a marketer must find specific variables that can be used to create these various segments.

Question 10

Selling a product to a different market segment usually requires a different marketing action that,in turn,means greater costs.If increased revenues don't offset extra costs of this action,a marketer should
A)increase the advertising budget.
B)prune the product offerings.
C)family brand the products.
D)combine segments.
E)group products into categories.

Accepted Answer

If the needs of the various segments aren't very different,combine buyers into fewer segments.A different segment usually requires a different marketing action that,in turn,means greater costs.If increased sales don't offset extra costs,combine segments to reduce the number of marketing actions.

Question 11

Criteria for forming segments involve both similarities and differences.In terms of the needs of buyers,the similarities must be ________ a segment,and the differences must be ________ segments.
A)between;among
B)throughout;absent in
C)within;among
D)absent in;throughout
E)among;across

Accepted Answer

Two criteria used in forming segments answer this question: similarity of needs of potential buyers within a segment and difference of needs of buyers among segments.

Question 12

The first step in segmenting and targeting markets that links customer needs to marketing actions is to
A)group potential buyers into segments.
B)develop a market-product grid and estimate size of the overall market.
C)select target markets.
D)group products to be sold into categories.
E)take marketing actions to reach target markets.

Accepted Answer

The five key steps in segmenting and targeting markets that link the market needs of customers to the organization's marketing program are (1)Group potential buyers into segments,(2)group products to be sold into categories,(3)develop a market-product grid and estimate size of markets,(4)select target markets,and (5)take marketing actions to reach target markets.

Question 13

Four general categories are used to segment consumer markets,one of which is
A)supplier segmentation.
B)demand segmentation.
C)regional segmentation.
D)behavioral segmentation.
E)product segmentation.

Accepted Answer

Figure 9-4 shows four general bases,variables,and breakdowns for U.S.consumer markets: (1)geographic segmentation,(2)demographic segmentation,(3)psychographic segmentation,and (4)behavioral segmentation.

Question 14

Which of the following is a criterion used in forming market segments?
A)similarity of segments to competitors' segments
B)differences between potential suppliers or distributors
C)differences of needs of buyers within a segment
D)market size of the segment
E)potential of a marketing action to reach a segment

Accepted Answer

The five criteria to be used in forming segments include: (1)simplicity and cost-effectiveness of assigning potential buyers to segments,(2)potential for increased profit,(3)similarity of needs of potential buyers within a segment,(4)difference of needs of buyers among segments,and (5)potential of a marketing action to reach a segment.

Question 15

Which of the following is not a criterion that would support forming market segments?
A)The ability to assign buyers to a segment is cost-effective and simple.
B)The result of segmenting will cause an increase in market share or profit.
C)There are significant similarities among buyers in the market segment.
D)There is a potential marketing action to reach the segment.
E)The cost to reach the segment exceeds the expected returns.

Accepted Answer

The cost to reach the segment is a criterion to select a segment.

Question 16

All of the following are criteria used for forming market segments except which?
A)difference of needs of buyers among segments
B)potential for increased profit
C)cost of reaching the segment
D)potential of a marketing action to reach a segment
E)simplicity and cost-effectiveness of assigning potential buyers to segments

Accepted Answer

The five criteria to be used in forming segments include: (1)simplicity and cost-effectiveness of assigning potential buyers to segments,(2)potential for increased profit,(3)similarity of needs of potential buyers within a segment,(4)difference of needs of buyers among segments,and (5)potential of a marketing action to reach a segment.The cost of reaching the segment is a criterion for selecting a target segment.

Question 17

The best segmentation approach is the one that
A)makes it easiest to reach the segment.
B)maximizes the opportunity for future profit and ROI.
C)recognizes different needs of buyers among different segments.
D)recognizes similarities of needs of potential buyers within a segment.
E)is simplest and least costly in assigning potential buyers to segments.

Accepted Answer

The best segmentation approach is the one that maximizes the opportunity for future profit and ROI.If this potential is maximized without segmentation,don't segment.

Question 18

About 3 percent of the population has some degree of allergic reaction,usually mild,to preservatives used in salad bars.Restaurants might consider people with these allergies as a separate segment.To implement this segmentation strategy,restaurants would have to prepare a regular salad bar and a special salad bar for the allergies segment.This multiple product,multiple markets segment strategy would have the greatest difficulty meeting which of the following criteria used to form market segments?
A)different needs of buyers among different segments
B)similarity of needs of potential buyers within a segment
C)simplicity and cost-effectiveness of assigning potential buyers to segments
D)potential for increased profit and ROI
E)potential of a marketing action to reach a segment

Accepted Answer

The allergies market segment would probably not provide sufficient profit and ROI given its small estimated size,the limited benefit to consumers in the segment,and the high cost of running a duplicate salad bar.Bottom line: The cost probably exceeds the profits gained.

Question 19

Which of the following is not a reason to segment a market?
A)The ability to assign buyers to a segment is simple and cost-effective.
B)It would cause an increase in market share or profit.
C)All the buyers in the entire market have similar wants and needs.
D)There is a potential marketing action to reach it.
E)There are different wants and needs of buyers in the entire market.

Accepted Answer

You would not break a market into segments if all the buyers within it have similar wants and needs.The other alternatives are all reasons to form a segment.

Question 20

The Walt Disney Co.carefully markets two distinct Winnie-the-Poohs;one is the original line-drawn figure on fine china sold at Nordstrom and the other is a cartoon-like Pooh on polyester bed sheets sold at Target.This is an example of
A)mass customization.
B)a Tiffany/Walmart strategy.
C)one product and multiple market segments.
D)price discrimination.
E)psychographic market segmentation.

Accepted Answer

Marketers increasingly emphasize a two-tier,Tiffany/Walmart strategy.Many firms now offer different variations of the same basic offering to high-end and low-end segments-the situation for Disney's Pooh offerings at Nordstrom and Target.

Quiz 9: Market Segmentation, targeting, and Positioning

The purpose of the five key steps in segmenting and targeting markets is to

There are five steps involved in segmenting and targeting markets.What should a marketer do after he or she has grouped products to be sold into categories?

A marketing manager goes through several steps to put a market segmentation plan into effect.This includes being able to form market segments and then ________ without encountering excessive costs.

Which of the following is an example of a Tiffany/Walmart strategy?

You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50.Or you can buy a Hallmark card from its new $0.99 line of greeting cards,made with lesser-quality materials but just as sentimental,sold at Barnes & Noble bookstores.This is an example of

Segmentation based on where prospective customers live or work is referred to as

The final step in segmenting and targeting markets that links customer needs to marketing actions is to

Criteria for forming segments involve both similarities and differences.Which of the following statements is most accurate?

Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer which of the following questions?

Selling a product to a different market segment usually requires a different marketing action that,in turn,means greater costs.If increased revenues don't offset extra costs of this action,a marketer should

Criteria for forming segments involve both similarities and differences.In terms of the needs of buyers,the similarities must be a segment,and the differences must be segments.

The first step in segmenting and targeting markets that links customer needs to marketing actions is to

Four general categories are used to segment consumer markets,one of which is

Which of the following is a criterion used in forming market segments?

Which of the following is not a criterion that would support forming market segments?

All of the following are criteria used for forming market segments except which?

The best segmentation approach is the one that

Which of the following is not a reason to segment a market?

The Walt Disney Co.carefully markets two distinct Winnie-the-Poohs;one is the original line-drawn figure on fine china sold at Nordstrom and the other is a cartoon-like Pooh on polyester bed sheets sold at Target.This is an example of