Question 1

Why is it inadvisable for a follower to attempt to directly position its product against the industry leader?

Accepted Answer

Competing with market leaders can be costly and not often successful. Industry leaders usually have significant brand recognition, more resources, and established customer loyalty. Attempting to directly position a product against them may often result in a failure to gain market share and loss of investment. It is better for followers to develop a unique brand positioning strategy and focus on a specific target market segment where they can create a loyal customer base.

Question 2

HealthPro cereal ads show the cereal being used as a topping on yogurt, as a snack food when topped with honey, and served hot as an alternative to oatmeal. In this case, HealthPro is using a positioning strategy based on:

Accepted Answer

HealthPro is highlighting the various uses and applications of their cereal, such as using it as a topping, snack food, and hot cereal alternative. This shows a positioning strategy based on use or application.

Question 3

What is the function of the Nielsen PRIZM?

Accepted Answer

The answer of What is the function of the Nielsen...

Question 4

Which of the following observations about geodemographic segmentation is true?

Accepted Answer

Geodemographic segmentation creates classifications of actual, addressable, mappable neighborhoods where consumers live and shop. It uses demographic and geographic data to group consumers based on shared characteristics, such as age, income, and lifestyle, within specific neighborhoods or areas. It is not focused on identifying specific individuals or households, nor is it primarily based on the assumption that consumers in a particular neighborhood vary in many respects and lack similar consumption patterns. It can be used to identify consumer needs and wants in new markets and for new products, but this is not its primary purpose.

Question 5

The Nielsen PRIZM system includes maps of different areas that:

Accepted Answer

The Nielsen PRIZM system is designed to rank and categorize neighborhoods based on their potential to purchase specific products, which is reflected in the maps provided by the system. Therefore, option A is the correct answer. Option B is incorrect because PRIZM is focused on neighborhoods within a single country, not grouping consumers from different countries. Option C is incorrect because PRIZM is a market research tool, not a strategic planning tool. Option D is incorrect because PRIZM is not related to slotting allowances, which are payments made by manufacturers to retailers for product placement.

Question 6

Which of the following statements is true of a positioning map?

Accepted Answer

A positioning map is a visual representation of customers' perceptions of competitive products, brands, or models. It helps businesses understand where their products or brands stand in relation to the competition, and identify potential areas for improvement or differentiation. Option A refers to market growth rate, option B refers to a marketing research study, and option C refers to geodemographic modeling by the government, none of which are related to the concept of a positioning map.

Question 7

An advertisement for Utopia Bank describes the bank as not only providing all banking services a consumer could ever want, but also offering brokerage house services. Instead of just competing against banks, Utopia Bank increased its versatility by positioning its services:

Accepted Answer

Utopia Bank positioned itself relative to a class of products or services. By offering both banking and brokerage services, they were able to differentiate themselves from competitors who only offered banking services.

Question 8

A positioning map is:

Accepted Answer

A positioning map is constructed by surveying customers about various product attributes and developing a graph indicating the relative position of competitors. It helps businesses to understand how their product or service is positioned in the market and how they can differentiate themselves from their competitors in the minds of their target consumers.

Question 9

Which of the following describes the function of geodemographic segmentation?

Accepted Answer

Geodemographic segmentation involves identifying specific households in a market by focusing on local neighborhood areas and creating classifications of neighborhoods where people live and shop. This allows for more targeted marketing efforts towards specific neighborhoods and their unique characteristics.

Question 10

Danko Inc. has manufactured a new line of wristwatches that can withstand extreme conditions such as below freezing temperatures. The watches are also waterproof and heat-resistant. The company is marketing these watches specifically to adventurers and extreme sports enthusiasts, such as mountain climbers and scuba divers. Danko positioned its line of wristwatches:

Accepted Answer

Danko Inc. is positioning its line of wristwatches for specific types of product users, such as adventurers and extreme sports enthusiasts. This segmentation strategy allows the company to cater to the needs and preferences of a specific market segment and differentiate itself from its competitors.

Question 11

The Hector & Gable Corporation conducted a research study and found that vacuum brick-packs of coffee sell much better in the urban uptown than coffee that is canned. As a result, Hector & Gable repackaged their Danver brand of coffee for the urban uptown and developed an advertising campaign to market them to the region. Sales of Danver coffee in this region were found to have increased by 32 percent. In this example, Hector & Gable used _____ segmentation to market its coffee.

Accepted Answer

Hector & Gable used geodemographic segmentation to identify the specific geographic area where their vacuum brick-pack coffee sold better and to develop a marketing strategy tailored to the characteristics of the urban uptown population. Geodemographic segmentation is a method of dividing a larger market into smaller groups based on their geographic location, demographic, and psychographic characteristics.

Question 12

Mike wanted to build a bowling alley in Canada. Market research shows that Western Canadians enjoy bowling and similar pastimes significantly more than those in Eastern Canada. By locating his alley in the Western province of Alberta, Mike used a _____ segmentation strategy.

Accepted Answer

Geodemographic segmentation strategy involves segmenting markets based on a combination of geographic, demographic, and lifestyle characteristics of consumers in a specific area. By locating the bowling alley in Alberta, which is in Western Canada, Mike is using geodemographic segmentation to target consumers who are more likely to enjoy bowling based on their geographic location.

Question 13

According to the market segmentation process model, which of the following steps is a company likely to undertake after it has determined the basic segments of the market that could potentially be satisfied with its product?

Accepted Answer

The answer of According to the market segmentation process model,...

Question 14

The ad for Concordia kitchen cabinets states, "For an exceptional look in cabinetry that you won't find anywhere else, buy Concordia cabinets." This is an example of positioning:

Accepted Answer

The ad is positioning Concordia cabinets as offering a unique and exceptional look that cannot be found anywhere else. This implies that Concordia cabinets are superior to other products in the market, which is a positioning strategy based on superiority to competitive products.

Question 15

Jake is the marketing manager at Z-T athletic shoes manufacturers. Jake wanted to know how consumers perceive Z-T shoes when compared to all other athletic shoes currently in the market. He develops and administers a survey which indicates that the important attributes consumers look for in athletic shoes include price, durability, fit, and support. In this case, Jake could determine how Z-T ranks against other brands by using a _____.

Accepted Answer

A positioning map is a tool that helps determine how a brand is perceived by consumers compared to its competitors. It plots brands based on two or more attributes that are important to consumers, such as price, durability, fit, and support. Therefore, Jake could use a positioning map to determine how Z-T ranks against other brands in terms of these attributes. A perceptual map is another tool that helps visualize how consumers perceive brands, but it is not as useful for comparing brands directly. A product mix is a set of all the products and product lines a company offers. A competitive chart is not a commonly used marketing research tool.

Question 16

In the VALS™ framework, _____ can be viewed as the opposite of Innovators in terms of resources and innovations.

Accepted Answer

Survivors are the opposite of Innovators in the VALS™ framework. Survivors have limited resources and are not likely to be early adopters of new innovations. They are focused on meeting basic needs and may be resistant to change.

Question 17

The Nielsen PRIZM system is based on the assumptions that:

Accepted Answer

The Nielsen PRIZM system is based on the assumption that consumers in particular neighborhoods are similar in many respects and the best prospects are those who actually use a product or other consumers like them. This is geodemographic segmentation, which is the primary focus of the Nielsen PRIZM system. The other answer choices do not accurately describe the assumptions of the Nielsen PRIZM system.

Question 18

Identify the step in the market segmentation process that involves focusing on a product's superiority to competitive products based on one or more attributes.

Accepted Answer

Developing the product positioning plan involves focusing on how the product is positioned in the minds of the target audience relative to competitors. This step involves emphasizing the product's superiority over competitive products based on one or more attributes.

Question 19

A store that sells art supplies has established the Makers segment of the VALS™ framework to be the most ideal segment to target. According to the market segmentation process, which of the following steps must the store undertake next?

Accepted Answer

Positioning the product favorably in the minds of its customers is the next step after identifying the target segment, which in this case is the Makers segment of the VALS™ framework.

Question 20

_____ segmentation refers to an approach that identifies specific households in a market by focusing on local neighborhood areas to create classifications of actual, addressable, mappable neighborhoods where consumers live and shop.

Accepted Answer

Geodemographic segmentation is the approach that identifies specific households in a market by focusing on local neighborhood areas to create classifications of actual, addressable, mappable neighborhoods where consumers live and shop. This includes analyzing the demographics, lifestyles, behavior, and consumption patterns of people in specific geographic areas.

Quiz 5: Market Segmentation