Question 1

Which of the following is an advantage of using the undifferentiated targeting strategy?

Accepted Answer

The undifferentiated targeting strategy eliminates the need for developing separate strategies for different market segments, resulting in cost savings and increased efficiency.

Question 2

Firms embrace differentiated segmentation because:

Accepted Answer

Differentiated segmentation allows firms to cater to the specific needs and wants of different groups within the market, which can increase their overall market share and expand the overall market for their products. This approach can lead to increased customer loyalty and satisfaction, which can ultimately lead to greater profitability for the firm.

Question 3

A large passenger-ship company targets only old rich people for its around-the-world cruises.It ensures that all its rooms are designed to be as comfortable as possible for older people.In this case,the company is using the:

Accepted Answer

The company is using a concentrated targeting strategy by specifically targeting a particular demographic- old rich people- and designing its rooms to cater to their specific needs and preferences.

Question 4

A company launches a wide range of perfumes.Customers can go to the company's store and combine the perfumes in different ways to create unique scents.This is an example of:

Accepted Answer

Mass customization refers to the process of allowing customers to personalize or individualize products to their specific needs or preferences. In this case, the company is offering a range of perfumes that customers can combine in different ways to create unique scents, which is an example of mass customization.

Question 5

Ace Inc.is a company that sells clothes.It has two brand names,Ace 1 and Ace Kid.Each of these brands caters to the needs of two dissimilar market segments.There are varied strategies and products for the dissimilar groups.In this case,which targeting strategy is the company using?

Accepted Answer

The company is using a differentiated targeting strategy as it has two distinct brands (Ace 1 and Ace Kid) that cater to the different needs of two segments of the market. Each brand has its own unique strategy and product offerings to cater to the specific needs of each segment. This approach suggests that the company recognizes the differences between the segments and is attempting to tailor its marketing efforts to each of them.

Question 6

A company sells a subscription service for mowing lawns.Customers typically remain subscribed for 3 years,and they pay $20.00 per month for the service,which means $240.00 ($20.00 × 12 months)per year or $720.00 ($240.00 × 3 years)potential revenue from the customer.In this case,the $720.00 of potential revenue is the:

Accepted Answer

The $720.00 represents the potential revenue from a customer over their lifetime with the subscription service. Therefore, it is the customer lifetime value.

Question 7

Which of the following strategies refers to the marketing strategy a firm can use if the product or service it provides is perceived to provide the same benefits to everyone and there is no need to develop separate strategies for different groups?

Accepted Answer

Theundifferentiated targeting strategy refers to the approach of targeting the entire market with a single product or service, assuming that everyone in the market has similar needs and wants. This strategy is suitable when the product or service provides the same benefits to everyone, and there is no need to develop separate strategies for different groups.

Question 8

Which of the following is true of micromarketing?

Accepted Answer

Micromarketing is a marketing strategy that tailors a product or service to suit an individual customer's wants or needs. This involves segmentation and targeting of specific individuals or small groups with customized offerings.

Question 9

The concept of being substantial and profitable as a prerequisite for market segmentation refers to the fact that:

Accepted Answer

For a market segment to be profitable, the buying power of customers within the segment has to be high enough to generate substantial returns from the market. If customers cannot afford to spend money on a company's products or services, it will not be profitable for the company to pursue that specific market segment. Therefore being substantial and profitable is a prerequisite for market segmentation.

Question 10

A local bakery customizes its pastries and cakes to suit individual customer requirements.This is an example of:

Accepted Answer

The local bakery is engaging in micromarketing by customizing its products to suit individual customer requirements, which involves tailoring its offerings to the specific needs and preferences of each customer rather than treating them all the same. This is a form of niche marketing that seeks to appeal to small, specialized markets rather than mass markets.

Question 11

Rick,a neighbourhood tailor,makes clothes according to the requirements of each of his individual customers.This is an example of:

Accepted Answer

Rick's approach of making clothes according to the specific requirements of each customer indicates the use of micromarketing, which focuses on the individual needs and preferences of customers. This approach is the opposite of mass marketing, which adopts a broader approach and aims to appeal to a larger audience with similar needs and preferences.

Question 12

A company that sells shoes has a website with a make-your-own-shoe feature.It makes a vast number of styles in every major performance category available to the customer for personalization.This is an example of:

Accepted Answer

The make-your-own-shoe feature allows the customer to personalize their shoes to their needs and preferences, making it an example of mass customization.

Question 13

The marketing strategy of selecting a single,primary target market and focusing all energies on providing a product to fit that market's needs is called a(n):

Accepted Answer

The marketing strategy described in the question is known as a concentrated targeting strategy, where a company focuses all its efforts on serving the needs of a single primary target market. This approach allows companies to specialize and tailor their offerings to a specific group of customers, often resulting in higher customer satisfaction and loyalty.

Question 14

Customer lifetime value (CLV)refers to the:

Accepted Answer

Customer lifetime value (CLV) refers to the total value of purchases made by a customer over the course of their patronage. This metric helps businesses analyze the profitability of their customer base and make decisions about customer acquisition and retention strategies.

Question 15

A company has launched a milk beverage containing chocolate.Since the beverage appeals to all age groups,the company develops a single strategy to attract children,teenagers,and adults alike.In this case,the company is using a(n):

Accepted Answer

Undifferentiated targeting strategy involves developing a single marketing mix for the entire market without distinguishing between segments. In this case, the company is targeting all age groups with their chocolate milk beverage, indicating that they are using an undifferentiated targeting strategy.

Question 16

A crane manufacturing company that solely manufactures and sells salvage cranes for salvage companies is using which strategy?

Accepted Answer

The company is using concentrated targeting by solely focusing on the salvage industry and providing them with salvage cranes. This strategy involves the selection of a very specific market segment and tailoring all marketing efforts towards that segment.

Question 17

Sturdy International sells its helmets to everyone in the market.There are no different strategies or products for different groups.This is an example of a(n):

Accepted Answer

Sturdy International is not targeting any particular group or segment of the market, but is selling the same product to everyone. This is an example of an undifferentiated targeting strategy, where the company does not distinguish between different segments and treats the market as a homogeneous group.

Question 18

A tattoo artist creates tattoos according to his customers' specifications.This is an example of:

Accepted Answer

Micromarketing involves targeting specific customer groups with unique needs and preferences. The tattoo artist creating tattoos according to his customers' specifications is an example of micromarketing as he is catering to the specific needs and preferences of each individual customer.

Question 19

A strategy through which a firm targets several market segments with a varied offering for each is called a(n):

Accepted Answer

A differentiated targeting strategy involves targeting multiple market segments with a unique offering for each segment. This allows the firm to better meet the needs and preferences of each segment, ultimately leading to higher customer satisfaction and potentially increased sales.

Question 20

Mancer is a company that sells clothes.It has three different retail store formats to serve the varied needs of diverse fashion segments.In this case,which targeting strategy is the company using?

Accepted Answer

The company is using a differentiated targeting strategy by offering three different retail store formats to serve the varied needs of diverse fashion segments. This means that the company is targeting multiple segments with different store formats, rather than a single mass market or homogeneous segment.

Quiz 6: Business-To-Business Marketing