Question 1

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

Accepted Answer

The purpose of segmenting and targeting markets is to link market needs of customers to the organization's marketing program. This helps firms focus on specific groups of customers and develop marketing strategies that meet their needs and wants, which ultimately leads to increased customer satisfaction and sales. Identifying competitors, repositioning products, and generating new-product ideas may be outcomes of market segmentation and targeting, but they are not the main purpose. The five environmental forces are not directly related to the process of segmenting and targeting markets.

Question 2

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

Accepted Answer

The answer of The Walt Disney Co.carefully markets two distinct...

Question 3

Cannibalization would most likely occur if

Accepted Answer

The answer of Cannibalization would most likely occur if
...

Question 4

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

Accepted Answer

The answer of The first step in segmenting and targeting...

Question 5

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

Accepted Answer

The final step is to take marketing actions to reach the targeted market segment with the specific needs and characteristics identified in the previous steps. This step involves product development, pricing, promotion, and distribution strategies that are tailored to the needs of the target market.

Question 6

The best segmentation approach is the one that

Accepted Answer

The best segmentation approach should aim to maximize the opportunity for future profit and ROI. This means identifying segments that are likely to respond positively to marketing efforts and generate the most revenue in the long term. Simply reaching a segment or assigning potential buyers to segments in a simple and inexpensive way may not necessarily result in the most profitable outcomes. A good segmentation approach should also recognize different needs among buyers within segments, but ultimately the goal should be to maximize profits.

Question 7

The ultimate criterion for an organization's marketing success is that __________ as a result of increased synergies.

Accepted Answer

Ultimately, the success of any marketing effort should result in the customers being better off. This can be measured in various ways such as increased satisfaction, loyalty, advocacy, etc. The other options (costs decrease, market share increases, product deficiencies decrease, and new products flourish) may be important indicators of success, but they are not the ultimate criterion.

Question 8

You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay .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

Accepted Answer

This scenario describes a Tiffany/Walmart strategy, where a company offers products at different price points to target different customer segments.

Question 9

When a new product or a new retail chain steals customers and sales from the organization's older products and retail outlets,it is referred to as

Accepted Answer

Cannibalization occurs when a new product or a new retail chain takes away customers and sales from the company's existing products or retail outlets. This can happen when the new product or retail chain is marketed to the same target audience as the existing products or retail outlets, resulting in competition between them.

Question 10

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

Accepted Answer

The cost to reach the segment exceeding the expected returns is a criterion that would not support forming market segments. This would indicate that it is not cost-effective or profitable to target such a segment. The other criteria listed (ability to assign buyers to a segment, increase in market share or profit, significant similarities among buyers in the segment, potential marketing action) would all support the formation of market segments.

Question 11

All of the following are examples of increased customer value from organizational synergy except which?

Accepted Answer

The key to successful product differentiation and market segmentation strategies is finding the ideal balance between satisfying a customer's individual wants and achieving organizational synergy,the increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently.The "increased customer value" can take many forms: more products,improved quality of existing products,lower prices,easier access to products through improved distribution,and so on.Brand awareness is beneficial to the firm,but not a component of customer value likely to occur here.

Question 12

Suppose marketers want to use product differentiation and market segmentation strategies.What question should they ask when considering the potential for cannibalization with these strategies?

Accepted Answer

The potential for cannibalization arises when a company's new product steals customers or sales from its older products. Therefore, asking whether the new product will cannibalize the company's existing products is essential when considering product differentiation and market segmentation strategies.

Question 13

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

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 14

When Ann Taylor,a well-known retailer of sophisticated women's clothing,started losing sales to its own Loft outlets that feature moderately priced casual clothes,Ann Taylor was dealing with the marketing phenomenon known as

Accepted Answer

Cannibalization occurs when a company's new product or service begins to eat into the sales of its existing offerings. In this case, Loft, which is owned by Ann Taylor, began to compete with its parent company by offering cheaper, more casual clothing, leading to a loss in sales for Ann Taylor.

Question 15

Which of the following is a criterion used in forming market 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.

Question 16

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?

Accepted Answer

After grouping products into categories, the marketer should develop a market-product grid and estimate the size of markets. This means mapping out which products will be marketed to which segments of consumers and estimating the potential size of those markets. This step is necessary before identifying market needs and forming prospective buyers into market segments. Once the market-product grid is established, the marketer can then take marketing actions to reach target markets based on their needs and preferences. Creating product groupings is a step that precedes grouping products into categories.

Question 17

Today,marketers are increasingly emphasizing a Tiffany/Walmart strategy,which is to offer

Accepted Answer

The Tiffany/Walmart strategy involves creating different variations of the same basic offering to cater to both high-end and low-end segments. This allows the brand to capture a wider range of customers and increase their overall revenue.

Question 18

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.

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 19

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

Accepted Answer

The answer of Selling a product to a different market...

Question 20

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

Accepted Answer

Segmenting a market is done precisely because all buyers in the entire market do not have similar wants and needs. Therefore, option C is not a reason to segment a market.

Quiz 8: Market Segmentation, targeting, and Positioning