Question 1

All of the following are attributes of the Zappos.com market segment,except:

Accepted Answer

The Zappos.com market segment is known for its emphasis on selection, convenience, and exceptional customer service, but not for its low price. In fact, the company's focus on providing high-quality products and services often comes at a premium price point.

Question 2

PepsiCo sells a bottled water product to those that are health conscious.They also sell Pepsi to those that need a 'sugar rush' and 'caffeine wake-up' to get them through the afternoon.What strategy is PepsiCo using?

Accepted Answer

PepsiCo is using product differentiation by offering different products for different types of consumers with different needs (bottled water for health-conscious individuals and soda for those in need of a sugar rush and caffeine boost).

Question 3

Zappos.com currently targets which market segment?

Accepted Answer

Zappos.com targets those seeking the convenience of in-home purchases.

Question 4

When Procter & Gamble introduced Crest toothpaste,the first fluoride toothpaste,it was intended for use by children and was therefore given a child-appealing bubble gum flavour.Sometime later,the same basic formula was given a fresh,minty flavour to appeal to adults.What is this marketing strategy called?

Accepted Answer

This marketing strategy is called product differentiation, where marketers distinguish a product from its competitors through packaging, design, and features. In this case, the formula was differentiated by flavor to appeal to different target markets - children and adults.

Question 5

Alka-Seltzer was made originally as a hangover remedy that cured the headache and settled the stomach.Today you can buy Original Alka-Seltzer,Extra Strength Alka-Seltzer,Alka-Seltzer Morning Relief (for morning headaches and fatigue,and Alka-Seltzer Heartburn Relief).Each Alka-Seltzer product is targeted to a slightly different market segment.The maker of Alka-Seltzer is using:

Accepted Answer

The maker of Alka-Seltzer is using product differentiation by offering various products tailored to different consumer needs and preferences.

Question 6

Henry Ford developed his Model T,a car he felt would satisfy the needs of everyone.Ford said,"They can have it in any colour,as long as it's black." His strategy was simple: focus in the economies of scale created by mass production.Ford's strategy was also known as a:

Accepted Answer

Henry Ford's strategy of focusing on mass production and producing a car for everyone is known as a mass marketing strategy. The quote "They can have it in any colour, as long as it's black" reflects the simplicity of the strategy, which is to produce a standardized product that appeals to a large market segment.

Question 7

What was the core reason why Zappos.com stopped shipping to Canada?

Accepted Answer

Zappos.com stopped shipping to Canada because they felt they couldn't provide the same level of WOW customer service internationally as they do in the United States.

Question 8

Market segmentation is only a means to an end.In economist's terms,it relates supply (_____)to demand (the customer needs).

Accepted Answer

Market segmentation is a way for an organization to understand the needs and preferences of different groups of customers, and to tailor their marketing strategies and product offerings accordingly. The ultimate goal of this process is to increase sales and profitability by meeting customer needs more effectively. Therefore, market segmentation relates to the organization's actions, which are geared towards supplying products and services that customers want and need. Self-regulatory industry standards and government regulations may impact how an organization operates but they are not directly related to supply and demand, whereas strategic objectives may include market segmentation as a tactic but are not synonymous with it.

Question 9

KFC has modified its product to satisfy different market segments.In Holland,the mashed potatoes are replaced with a potato-and-onion croquette,and in Thailand,a customer gets fresh rice with soy or sweet chili sauce with his or her chicken.KFC uses:

Accepted Answer

The answer of KFC has modified its product to satisfy...

Question 10

Whirlpool aggregates prospective customers who are all interested in a low-cost washing machine and respond positively to mail-out marketing material.This process is referred to as:

Accepted Answer

The process described is market segmentation, which involves dividing a larger market into smaller groups of consumers with similar needs or characteristics. In this case, Whirlpool is segmenting the market based on customers who are interested in a low-cost washing machine and respond positively to mail-out marketing material.

Question 11

When Comfy Covers Ltd.,a BC fiber pillow manufacturer offers firm pillows for side sleepers,medium pillows for back sleepers,and soft pillows for stomach sleepers,what is this marketing strategy called?

Accepted Answer

This marketing strategy is called product differentiation, as the company is offering different versions of their product (pillows) to cater to the specific needs and preferences of different types of sleepers. This helps them stand out from competitors who may offer a one-size-fits-all product.

Question 12

Some Timex wristwatches can be purchased for less than $30; some Rolex wristwatches carry a price tag of several thousand dollars.In general,consumers view Timex watches as being dependable,relatively accurate,and inexpensive.The Rolex brand tends to be perceived as an expensive status symbol.Timex watches can be purchased in drug stores,discount stores,and department stores in all sizes of communities.Rolex watches are distributed more selectively,and are often available only in fine jewellery stores or specialty shops.By using distinctly different pricing and distribution strategies,the marketers of Timex and Rolex watches have attempted to:

Accepted Answer

The marketers of Timex and Rolex watches have used product differentiation strategy as they have differentiated their products based on the price and distribution strategies. Timex is positioned as an inexpensive and dependable brand, whereas Rolex is positioned as an expensive and prestigious brand. They have different target markets and distribution channels, which helps them differentiate their products and appeal to different consumer segments.

Question 13

One of the key differentiators that separates Zappos.com from other online shoe retailers is their focus on ______.

Accepted Answer

Zappos.com is well-known for its exceptional customer service, which is a crucial differentiator from other online shoe retailers. The company believes in delivering a positive customer experience, and they have based their business model on providing outstanding customer service. Zappos.com has a 24/7 customer service call center, and they offer free returns and exchanges to make sure their customers are happy with their orders. They go above and beyond to create a customer-centric culture, where their employees are empowered to provide personalized solutions and ensure that every customer interaction is seamless.

Question 14

At a Hallmark store you can find several different brands of greeting cards,including Fresh Ink,Nature's Sketchbook,Shoebox,Maxine,Mahogany,and Tree of Life cards - all made by Hallmark for sale in its stores.Hallmark uses a _____ strategy to reach several different market segments.

Accepted Answer

Hallmark is using a product differentiation strategy by offering multiple brands of greeting cards, each with a unique brand identity and targeting different market segments based on their preferences and needs. This allows the company to cater to a wider range of customers and increase its overall market share.

Question 15

The process of segmenting a market and selecting specific segments as targets is the link between _____ and the organization's marketing program.

Accepted Answer

Market segmentation and target selection involve identifying and analyzing various buyers' needs, preferences, and behaviors to divide the market into smaller subgroups. This process is critical to creating an effective marketing strategy that meets the unique requirements of specific customer segments. Once the market has been segmented, the organization can then decide which segments to target and tailor its marketing program to appeal to the chosen segment(s). Thus, the process of market segmentation and target selection links buyers' needs to the organization's marketing program.

Question 16

PepsiCo is assessing whether to launch a brand new type of antioxidant water product.The marketing department has described a selection of the population as: "relatively homogeneous collections of prospective buyers." The marketing department is describing what?

Accepted Answer

The marketing department is describing market segments, which are groups of consumers with similar needs or characteristics that may be targeted with specific marketing strategies. The description of "relatively homogeneous collections of prospective buyers" suggests that the marketing department has identified distinct segments within the overall market that share similar preferences for antioxidant water products.

Question 17

The process of segmenting a market and selecting specific segments as targets is the link between various buyers' needs and:

Accepted Answer

The process of segmenting a market and selecting specific segments as targets helps the organization to tailor its marketing program to meet the needs of those specific target segments. The marketing program includes the product, price, promotion, and distribution strategy, which are aimed at satisfying customer needs and wants. By targeting specific segments, the organization can create a more effective and efficient marketing program that resonates with the target market.

Question 18

KFC is a popular fast food restaurant in North America.It opened its 500^th restaurant in China in 2001 and is more popular than McDonald's in that country.One of the reasons is that when the company entered the Chinese market,it recruited its managers from Taiwan and the Chinese communities in the U.S.and Canada.This has been useful in coping with local Chinese governments and developing a distinctly different Chinese strategy,which includes Chicky,a friendly chicken character that has a strong appeal for children.To succeed in China,KFC used:

Accepted Answer

The answer of KFC is a popular fast food restaurant...

Question 19

Market segmentation involves linking ______ to an organization's ________.

Accepted Answer

Market segmentation involves identifying the specific needs, characteristics, and behaviors of different groups of buyers (prospective buyers) and then creating a marketing program that addresses their unique needs and preferences. Therefore, option A, which links buyers' needs to an organization's marketing program, is the correct choice. Option B talks about linking product benefits to capabilities, which is not related to market segmentation. Option C talks about linking prospective buyers to a marketing mix, which is similar to option A, but it's not as accurate in terms of describing the segmentation process. Option D talks about linking market information to customer databases, which is not the same as market segmentation.

Question 20

To be identified as a market segment,its members must:

Accepted Answer

For a group of customers to be considered a market segment, they must share common needs and respond similarly to marketing actions. This allows marketers to tailor their products and messaging to appeal to a specific group of consumers rather than trying to appeal to the entire market. While having a large share of the market and buying power may be desirable traits for a market segment, it is not a requirement. Having different needs and potential for growth does not necessarily make a group of customers a market segment, as it is the commonality among the group that is important.

Quiz 9: Market Segmentation, Targeting, and Positioning