Question 1

When analyzing the toothpaste market, there are products that control tartar, fight cavities, freshen breath, and whiten teeth.It is correct to say the toothpaste market is utilizing product positioning.

Accepted Answer

Yes, the toothpaste market is utilizing product positioning by creating different types of toothpaste based on specific benefits and targeting different consumer needs.

Question 2

By implementing micromarketing, a small company with limited resources can chip away at a large market share of a competitor practising undifferentiated marketing.

Accepted Answer

Micromarketing focuses on targeting specific segments of a market with personalized marketing strategies. This can allow a small company to effectively compete with larger companies that use undifferentiated marketing (mass marketing to a broad audience) by tailoring their approach to meet the needs and preferences of a specific segment of customers, gaining a larger share of that segment's business.

Question 3

Avis's slogan, "We try harder," represents an attempt by the company to position itself with respect to one of its competitors.

Accepted Answer

The slogan "We try harder" was created by Avis in 1963 as a way to position itself against Hertz, its primary competitor in the car rental industry.

Question 4

Applying a micromarketing strategy will allow companies to reach larger and more lucrative markets.

Accepted Answer

Micromarketing strategies focus on smaller and niche markets rather than larger ones. While this may result in better targeting and engagement with the specific market, it may not necessarily lead to reaching a larger market.

Question 5

The information, analysis, and forecasts accumulated through the entire market segmentation decision process allow management to assess the potential for achieving company goals and to justify committing resources to develop one or more segments.

Accepted Answer

Market segmentation helps management evaluate the potential of different customer segments and make informed decisions about resource allocation.

Question 6

Gourmet products are more likely to be successful when a concentrated marketing strategy is employed.

Accepted Answer

Gourmet products often have a niche market and require specific targeting to reach their intended audience. A concentrated marketing strategy, focused on reaching this targeted market, can increase the likelihood of success for gourmet products.

Question 7

The success of the market segmentation process depends heavily on a company's ability to use forecasting methods.

Accepted Answer

Forecasting methods allow companies to make predictions about future market trends and consumer behavior, which is essential for effective segmentation. Without accurate forecasting, a company may not be able to identify the most profitable segments or develop strategies to target them successfully.

Question 8

The most expensive way to market is undifferentiated marketing because a company is spending a large amount of promotional dollars to reach a vast audience, the majority of whom might not be interested in purchasing the product.

Accepted Answer

The answer of The most expensive way to market is...

Question 9

When Chevy advertises that its Suburban truck is "Like a Rock," Chevy is positioning the Suburban according to a product class strategy.

Accepted Answer

Chevy is using a symbolic or image-based positioning strategy by associating the Suburban with qualities of strength and durability, not positioning it within a specific product class.

Question 10

When a consumer product such as toilet paper is sold in bulk quantities to businesses, the paper products company is involved in micromarketing.

Accepted Answer

Selling in bulk quantities to businesses is an example of business-to-business (B2B) marketing, which typically involves macro-marketing rather than micro-marketing. Micro-marketing involves targeting specific individuals or small groups of consumers with highly personalized marketing efforts, while macro-marketing focuses on broader trends and patterns in the marketplace.

Question 11

Having chosen a market segment to target, the firm must design strategy and tactics to reinforce its image, yet keep within its unique organizational capabilities.

Accepted Answer

This statement accurately describes an important aspect of marketing strategy. The firm must consider its own strengths and limitations when developing a marketing plan to appeal to a specific market segment.

Question 12

After a company develops a profile for its market segment and a forecast of market potential, the next step is to estimate market share.

Accepted Answer

Once a company has developed a profile of its market segment and estimated the potential size of the market, the next step is often to estimate the company's potential market share within that segment.

Question 13

Historically, Nivea skin care products were marketed and sold exclusively to women.A new product line called Nivea for Men has been recently introduced and is targeted to men and is considered differentiated marketing.

Accepted Answer

Nivea for Men is a new product line that targets men, which qualifies as differentiated marketing. Historically, Nivea was marketed and sold exclusively to women, so the new product line represents a departure from that strategy.

Question 14

Firms such as Lexus and Gucci try to position their products in terms of product class.

Accepted Answer

These firms use product class positioning to create a perception of high quality and luxury in the minds of consumers.

Question 15

Another name for concentrated marketing is niche marketing.

Accepted Answer

Concentrated marketing and niche marketing are interchangeable terms, meaning a marketing strategy that focuses on a specific segment of the market, such as a particular demographic or industry.

Question 16

Concentrated marketing disperses the firm's marketing effort among several segments and an upturn in demand in one segment can negatively affect sales in another.

Accepted Answer

Concentrated marketing focuses on a single market segment, not several, and directs all marketing efforts towards that specific segment, rather than dispersing efforts among multiple segments.

Question 17

Up & Away Flying Corporation recently began manufacturing small aircraft for private use.The planes are made one at a time in a small, four-person factory.As a result of its small size and lack of financial resources, concentrated marketing might be the ideal marketing strategy in order to compete with larger firms in the industry.

Accepted Answer

Concentrated marketing allows Up & Away Flying Corporation to focus its limited resources on a specific target market, increasing the likelihood of success against larger competitors.

Question 18

A positioning map provides a valuable tool to help position products by graphically illustrating consumers' perceptions of competing products within an industry.

Accepted Answer

A positioning map is a graphical representation of competing products in an industry based on consumers' perceptions. It helps businesses understand how their product is positioned in relation to their competitors and identify opportunities for differentiation.

Question 19

Micromarketers run the risk that they may spend too much time, effort, and money to reach a market that is too small and specialized to be profitable.

Accepted Answer

Micromarketing targets a very specific niche market, which can lead to spending a disproportionate amount of resources for a small customer base that may not yield profits.

Question 20

One product class that has been successful with undifferentiated marketing strategies has been magazines.

Accepted Answer

Magazines often target very specific audience segments, employing differentiated marketing strategies to cater to the interests, needs, and preferences of their particular readership groups.

Quiz 8: Market Segmentation, Targeting, and Positioning