Question 1

"Why create a perceptual map?" asked David.Andreas,the senior marketing manager,gave him four reasons.Which of the following is not a valid reason?
A) "It's a quick way for senior managers to see not only our product but each of our competitors,all at once."
B) "It's a way to demonstrate the dimensions that our customers think are important."
C) "It shows where we aren't-and where our competitors aren't-in our customers' and prospects' minds."
D) "It's a way to show the position of the company throughout the product's life cycle."
E) "We can easily show where we are positioned and how large the market is."

Accepted Answer

Creating a perceptual map does not provide information on the product's life cycle, so this reason is not valid.

Question 2

The manager of Plantation River Country Club wanted members of the very upscale club to use the bar and dining facilities more frequently.He offered a two-for-one "happy hour" special but few members showed up.The manager did not have a grasp of what would make his target market
A) substantial.
B) responsive.
C) identifiable.
D) reachable.
E) quantifiable.

Accepted Answer

The manager's goal was to increase usage of the bar and dining facilities among members of the club, which suggests that he was targeting an audience that was already part of the club's membership. The low response to the two-for-one special indicates that the manager did not understand what would motivate this specific audience to use the facilities more frequently, thus he lacked an understanding of how to make his target market responsive.

Question 3

Whenever Donald calls on potential pest control customers,he emphasizes the fact that,unlike the national franchise competitors,he is a local business person and has been in business over 20 years.Donald is __________ his business relative to his competition.
A) segmenting
B) packaging
C) positioning
D) pricing
E) targeting

Accepted Answer

Donald is positioning his business by highlighting its unique selling proposition that it is a local business with over 20 years of experience, distinguishing it from its national franchise competitors.

Question 4

Paula is trying to determine whether the segments she is considering for her day care center will be profitable.Which of the following will not specifically help her in this analysis?
A) the number of children needing day care in the immediate area
B) the fixed costs of operating the center
C) the percentage of parents in the area who can both afford to send their child or children to day care and who are willing to do so
D) the average number of school-age children in families sending a child to the day care center
E) the price she would charge minus the variable cost of providing service to each child

Accepted Answer

The average number of school-age children in families sending a child to the day care center is not relevant to determining the profitability of the segments, as it does not directly relate to the costs, revenues, or demand for the day care services. The other options are all relevant factors that would contribute to Paula's analysis.

Question 5

When selecting a target market,firms will be most successful if they
A) decide between demographic and geographic segmentation methods.
B) seek out opportunities to customize products.
C) develop a strong communication plan.
D) match the firm's competencies with a market segment's attractiveness.
E) reposition the brand.

Accepted Answer

Matching the firm's competencies with a market segment's attractiveness is the most effective way to select a target market. This ensures that the firm can effectively meet the needs and preferences of the chosen segment, while also leveraging their own strengths and capabilities. Deciding between segmentation methods, customizing products, and developing a communication plan are important steps in targeting, but they do not guarantee success if the market segment itself is not a good fit for the firm. Repositioning the brand may be necessary in some cases, but it is not a primary consideration when selecting a target market.

Question 6

Caroline is assessing market growth,market competitiveness,and market access for each segment she has identified.Caroline is assessing the __________ of each potential market segment.
A) substance
B) responsiveness
C) identification
D) reach
E) profitability

Accepted Answer

Caroline is assessing the profitability of each potential market segment by evaluating market growth, market competitiveness, and market access. She is trying to determine which segment will ultimately generate the most profit for her company.

Question 7

__________ involves defining the firm's marketing mix variables so that target customers have a clear,distinctive,and desirable understanding of the firm's offerings relative to competitors' offerings.
A) Processing
B) Perceptualizing
C) Positioning
D) Proportioning
E) Prospecting

Accepted Answer

The term that involves defining the firm's marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of the firm's offerings relative to competitors' offerings is called positioning. This process helps the firm create a unique selling proposition (USP) that differentiates its products or services from its competitors and creates a positive image in the minds of consumers.

Question 8

A __________ is often used to illustrate the position of a firm's products or brands in consumers' minds.
A) mass marketing analysis
B) psychographic profile
C) perceptual map
D) loyalty timeline
E) PRIZM analysis

Accepted Answer

A perceptual map is a visual representation of how consumers perceive a brand or product relative to its competitors. This map is based on consumer perceptions and attitudes towards certain attributes, such as price or quality, and helps firms understand where they stand in the marketplace.

Question 9

Jim wants to position his firm against his competitors.In doing so he should
A) never select a competitor in the same neighborhood.
B) avoid making the competitor's product look undesirable.
C) avoid looking too much like the competitor so that he'd confuse the target segment.
D) avoid discussing the strengths of his product so that competitors won't be aware of his product quality.
E) avoid discussing the weaknesses of his competitors so they won't retaliate.

Accepted Answer

By avoiding looking too much like the competitor, Jim can differentiate his product and create a unique positioning in the market. This will prevent confusion among the target segment and give Jim an edge over his competitors. Choosing a competitor not in the same neighborhood or avoiding discussing weaknesses of his competitors may not necessarily help Jim in positioning his firm. Avoiding discussing the strengths of his product may also be counterproductive as it may prevent potential customers from understanding the value of his products.

Question 10

Whenever the president of the local public university promotes the institution,he emphasizes the university's price (much lower than neighboring private colleges)and high quality.He is positioning the institution based primarily on
A) the value proposition.
B) product attributes.
C) symbols.
D) competitive comparisons.
E) profitability.

Accepted Answer

The president is highlighting the university's affordability and high quality as key benefits, which together form a value proposition. This approach emphasizes the overall value (a combination of cost and quality) the university offers compared to its competitors.

Question 11

Marco was assigned to help create a positioning strategy for his employer's products based on product attributes.He should consider
A) the features the engineers feel are most important.
B) the ways the sales representatives have been positioning the firm's products.
C) the characteristics that helped his firm win a statewide award for excellence in manufacturing.
D) what the target market would consider the most important features.
E) the safety record of the firm and its products.

Accepted Answer

When creating a positioning strategy based on product attributes, it is important to consider what the target market would consider the most important features. This ensures that the product is positioned in a way that resonates with the customer and meets their needs, leading to higher sales and customer satisfaction. While the other factors listed may be important considerations, they may not necessarily reflect what the target market values most.

Question 12

Regina wants to position her financial services company.Regina can position her services according to all of the following except
A) the value proposition.
B) product attributes.
C) symbols.
D) competitive comparisons.
E) profitability.

Accepted Answer

Profitability is not a relevant factor in positioning a financial services company as it is not a customer-oriented consideration. The other choices, such as value proposition, product attributes, symbols, and competitive comparisons, are all important factors in determining how to position the company in the market.

Question 13

After assessing the market growth potential for his company's baby products in Mexico,Harmon wanted to evaluate market competitiveness.To do this,Harmon would consider
A) mass marketing of distribution potential and logistical support.
B) the current size of the market and the expected growth rate.
C) ease of pricing control and number of promotional outlets.
D) the number of competitors,entry barriers,and product substitutes.
E) profitability and customer buying behavior.

Accepted Answer

To evaluate market competitiveness, Harmon should consider factors such as the number of competitors, entry barriers, and product substitutes. These factors will give him an idea of how challenging it will be to enter and succeed in the market. Factors such as mass marketing potential, logistical support, and ease of pricing control are important but are more related to market potential and distribution strategy rather than market competitiveness. The size of the market and expected growth rate are also important but may not necessarily indicate how competitive the market is. Profitability and customer buying behavior are also important but are more related to market demand and consumer behavior rather than competition.

Question 14

We often see advertisements touting a product as being made with natural ingredients,or being long-lasting.Marketers using these types of promotions are positioning their products based primarily on
A) the value proposition.
B) product attributes.
C) symbols.
D) competitive comparisons.
E) profitability.

Accepted Answer

Marketers using promotions based on natural ingredients and long-lasting attributes are positioning their products based on their product attributes, such as the quality and benefits of the product itself.

Question 15

Which of the following would not be used in calculating the profitability of a segment?
A) segment perceptions
B) segment size
C) segment adoption percentage
D) profit margin percentage
E) fixed costs

Accepted Answer

Segment perceptions are not a financial metric and therefore would not be used in calculating profitability. The other choices (B, C, D, and E) are all financial metrics that would be necessary to calculate profitability.

Question 16

Fiona is looking to expand her pet grooming business and wants to evaluate the profitability of a potential new market.The area she is looking at has 2,000 homes and Fiona estimates that 20 percent of them would be likely to use her service.She charges $45 per grooming and on average customers groom their pets six times a year.Fiona estimates her variable costs to expand her business will be $10 per grooming and her fixed costs are $10,000.How much profit would Fiona make on this new segment?
A) $72,240
B) $98,000
C) $108,000
D) $128,000
E) $410,000

Accepted Answer

Fiona's estimated customer base is 20% of 2,000 homes, which is 400 homes. At an average of 6 groomings per year at $45 each, the revenue per customer is $270 annually. For 400 customers, total revenue is $108,000 (400 * $270). Variable costs are $10 per grooming, so for 6 groomings per year per customer, the total variable cost is $60 per customer annually, or $24,000 for all 400 customers (400 * $60). Subtracting the total variable costs ($24,000) and fixed costs ($10,000) from the total revenue ($108,000) gives a profit of $74,000. However, the correct calculation should be: Revenue = 400 homes * 6 groomings * $45 = $108,000. Total variable costs = 400 homes * 6 groomings * $10 = $24,000. Profit = Revenue - Variable Costs - Fixed Costs = $108,000 - $24,000 - $10,000 = $74,000. None of the provided options correctly matches the calculated profit, indicating a possible mistake in the calculation or the interpretation of the options. The closest provided option is A) $72,240, but it does not match the calculated profit of $74,000, suggesting a need for reevaluation of the calculation or the provided options.

Question 17

Within a perceptual map,a(n)__________ represents where a particular market segment's desired product would lie.
A) point of parity
B) strategic target
C) PRIZM cluster
D) ideal point
E) benefit centroid

Accepted Answer

The ideal point on a perceptual map represents where a particular market segment's desired product would lie. The ideal point is where the customer perceives the product to have the perfect combination of desirable attributes.

Question 18

Almost all U.S.political candidates use some combination of red,white,and blue in their campaign posters.They are trying to position themselves in voters' minds using
A) the value proposition.
B) salient attributes.
C) symbols.
D) the competition.
E) perceptual maps.

Accepted Answer

By using red, white, and blue, political candidates are leveraging symbols that are commonly associated with patriotism and the United States. By doing so, they are hoping to position themselves as leaders who embody these values, and thus appeal to voters who prioritize them.

Question 19

After assessing the market growth potential and market competitiveness for his company's baby products in Mexico,Harmon wanted to evaluate market access.To do this,Harmon would consider
A) ease of accessing or developing distribution channels and brand familiarity.
B) the current size of the market and the expected growth rate.
C) ease of pricing control and number of promotional outlets.
D) the number of competitors,entry barriers,and product substitutes.
E) profitability and customer buying behavior.

Accepted Answer

When evaluating market access, Harmon would need to consider the ease of accessing or developing distribution channels and brand familiarity. This includes factors such as the availability of retail outlets, transportation infrastructure, and the level of brand recognition and acceptance in the market. By assessing these factors, Harmon can determine the level of difficulty in getting his company's products to customers in Mexico. Factors such as market size, growth rate, competition, and pricing control are also important, but they are more relevant to overall market potential and competitiveness rather than market access.

Question 20

Ronaldo wants to develop an Internet auction-based business and is working through the STP process.After establishing his objectives,describing potential market segments,and evaluating the attractiveness of each segment,Ronaldo now has to
A) differentiate his product line.
B) consider future customer loyalty.
C) create a perceptual map.
D) select a target market.
E) divide geographic segments into lifestyle groups.

Accepted Answer

After evaluating the attractiveness of each segment, Ronaldo needs to select a specific segment that he wants to target with his Internet auction-based business. This involves identifying a group of consumers that have similar needs or characteristics and focusing his marketing efforts on them. Therefore, the next step for Ronaldo would be to select a target market.

Quiz 9: Segmentation, Targeting, and Positioning

"Why create a perceptual map?" asked David.Andreas,the senior marketing manager,gave him four reasons.Which of the following is not a valid reason?

The manager of Plantation River Country Club wanted members of the very upscale club to use the bar and dining facilities more frequently.He offered a two-for-one "happy hour" special but few members showed up.The manager did not have a grasp of what would make his target market

Whenever Donald calls on potential pest control customers,he emphasizes the fact that,unlike the national franchise competitors,he is a local business person and has been in business over 20 years.Donald is __________ his business relative to his competition.

Paula is trying to determine whether the segments she is considering for her day care center will be profitable.Which of the following will not specifically help her in this analysis?

When selecting a target market,firms will be most successful if they

Caroline is assessing market growth,market competitiveness,and market access for each segment she has identified.Caroline is assessing the __________ of each potential market segment.

__________ involves defining the firm's marketing mix variables so that target customers have a clear,distinctive,and desirable understanding of the firm's offerings relative to competitors' offerings.

A __________ is often used to illustrate the position of a firm's products or brands in consumers' minds.

Jim wants to position his firm against his competitors.In doing so he should

Whenever the president of the local public university promotes the institution,he emphasizes the university's price (much lower than neighboring private colleges) and high quality.He is positioning the institution based primarily on

Marco was assigned to help create a positioning strategy for his employer's products based on product attributes.He should consider

Regina wants to position her financial services company.Regina can position her services according to all of the following except

After assessing the market growth potential for his company's baby products in Mexico,Harmon wanted to evaluate market competitiveness.To do this,Harmon would consider

We often see advertisements touting a product as being made with natural ingredients,or being long-lasting.Marketers using these types of promotions are positioning their products based primarily on

Which of the following would not be used in calculating the profitability of a segment?

Within a perceptual map,a(n) __________ represents where a particular market segment's desired product would lie.

Almost all U.S.political candidates use some combination of red,white,and blue in their campaign posters.They are trying to position themselves in voters' minds using

After assessing the market growth potential and market competitiveness for his company's baby products in Mexico,Harmon wanted to evaluate market access.To do this,Harmon would consider

Ronaldo wants to develop an Internet auction-based business and is working through the STP process.After establishing his objectives,describing potential market segments,and evaluating the attractiveness of each segment,Ronaldo now has to