Question 1

Pharmaceutical firms market many brands of cold remedies with highly similar ingredients.The primary difference among the brands is their promotions that emphasize that various brands will treat different symptoms,such as runny noses,headaches,and fever.This is one way to practice:

Accepted Answer

Different promotional appeals rather than completely different marketing mixes may be used as the basis for a multisegment strategy.

Question 2

John Sichner,editor and publisher of Beverage Digest,a trade journal for beverage producers,wrote,"In this day and age,one product can't be the answer for all consumers." In other words,Sichner was opposing the use of:

Accepted Answer

The statement by John Sichner opposes undifferentiated targeting, which involves targeting all consumers with one product or marketing mix, disregarding any differences in their needs and preferences. He is stating that one product cannot fulfill the needs of all consumers.

Question 3

_____ is the development of a specific marketing mix to influence potential customers' overall perception of a brand,product line,or organization in general,and is related to the place a product occupies in consumers' minds relative to competing offerings.

Accepted Answer

Positioning is the process of developing a marketing mix to influence potential customers' perceptions of a brand, product line, or organization in general, in relation to competing alternatives. It involves creating a unique image and value proposition that sets the company apart from competitors in the minds of target consumers. This includes factors such as pricing, product features, distribution channels, and promotional messages that all contribute to creating a specific place or position for the brand in the marketplace.

Question 4

Tall Paul's Tall Mall designs and sells household furniture and furnishings to people who are over 6'6" tall--a rather small target market.Tall Paul's Tall Mall uses _____ targeting strategy.

Accepted Answer

Tall Paul's Tall Mall uses a concentrated targeting strategy, focusing on a narrow and specific segment of the market (people over 6'6" tall).

Question 5

You are the president of a new,capital-rich firm and you must decide on your firm's targeting approach.Three large subgroups exist in your market that have never had their unique needs served.If you don't act now,others will seize the opportunity.You should use a(n):

Accepted Answer

A multisegment strategy allows the firm to target multiple subgroups with tailored offerings, maximizing the opportunity to serve the unique needs of each subgroup and capitalize on the market potential before competitors do.

Question 6

Hampton Rojas produces and markets Albany peach preserves.He views the world as one big market with no individual segments and tries to reach it with only one marketing mix.His essentially mass-market philosophy indicates that he probably uses a(n)_____ strategy.

Accepted Answer

Undifferentiated targeting, also known as mass marketing, involves targeting the entire market with one marketing mix, rather than identifying and targeting specific segments. This aligns with Hampton Rojas' philosophy of viewing the world as one big market and trying to reach it with only one marketing mix. Therefore, option D is the correct answer.

Question 7

Companies that adopt a concentrated marketing strategy violate which of the following old sayings?

Accepted Answer

The saying "Don't put all of your eggs in one basket" advises against relying too heavily on a single strategy or investment. Adopting a concentrated marketing strategy means focusing on a very specific target market, which can be risky if that market turns out to be uninterested or unstable.

Question 8

A(n)_____ strategy entails selecting one segment of a market to target,and focuses on understanding the needs,motives,and satisfactions of the members of that segment,as well as on developing a highly specialized marketing mix.

Accepted Answer

Concentrated targeting, also known as niche marketing, involves focusing on one specific segment of the market and tailoring the marketing mix to meet the unique needs of that segment. This can be an effective strategy for smaller businesses or those with limited resources, as it allows them to compete in a smaller, more targeted market.

Question 9

Stouffer's offers gourmet entrees for one segment of the frozen dinner market,and Lean Cuisine for another segment that wants both good taste and low calories.When Stouffer's chose to serve two well-defined market segments and develop distinct marketing mixes for each,it was implementing a(n)_____ strategy.

Accepted Answer

Stouffer's is targeting two distinct market segments with different needs and wants, and is developing distinct marketing mixes for each. This is an example of multisegment targeting strategy.

Question 10

Ayres Corp.makes airplanes.It sells about 50 planes a year to be used as crop dusters.It sells another 75 a year to delivery companies.In addition,it manufactures another dozen or so that are used for fire fighting,and it sells about six a year for military transport purposes.What type of targeting strategy is Ayers using?

Accepted Answer

Ayres Corp. is using multisegment targeting strategy, as it is targeting different segments with different products (crop dusters, delivery planes, fire-fighting planes, military transport planes).

Question 11

Sure Fit Inc.has begun a rebranding strategy to let customers know that it no longer only produces slipcovers,but that it also carries a line of rugs,windows treatments,and bedding.Its _____ is described as women with average annual household income of $60,000 or more.

Accepted Answer

The term used to describe the specific demographic Sure Fit is targeting is "women with average annual household income of $60,000 or more," which is a specific target market.

Question 12

_____ is one of the potential disadvantages associated with a multisegment strategy.

Accepted Answer

Cannibalization occurs when sales of one product within a company's portfolio take away from sales of another product within the same portfolio. This can happen when a company pursues a multisegment strategy and offers multiple products or services that compete with each other. This can lead to lower overall profits for the company.

Question 13

E&V Bridal Studio,a wedding consulting business,only works with Eastern Asian customers who want to use their cultural heritage in their wedding ceremonies.What type of segmentation strategy does the wedding consultant use?

Accepted Answer

The wedding consultant is using a concentrated targeting strategy by focusing only on Eastern Asian customers who want to incorporate their cultural heritage into their wedding ceremonies. This approach allows the business to tailor their services and marketing efforts specifically to this segment, rather than trying to appeal to a broader market.

Question 14

When Procter & Gamble (P&G)introduced Liquid Tide to a new segment,consumers in the traditional powdered detergent segment switched to the liquid product.Rather than real sales growth,P&G simply experienced the shifting of existing customers to a new product.This exemplifies a drawback of multisegment targeting strategy called:

Accepted Answer

Cannibalization occurs when a new product or service gains sales from existing ones within the same organization. In this case, the introduction of Liquid Tide caused existing customers of powdered detergents to switch to the new product, resulting in cannibalization rather than real sales growth.

Question 15

Your firm is producing a car battery that is safe to discard in normal household trash.All other batteries on the market contain chemicals that are harmful and that can pollute underground water supplies and should be discarded with caution.Which of the following marketing segmentation options might you choose?

Accepted Answer

The answer of Your firm is producing a car battery...

Question 16

Mirage Resorts in Las Vegas has a system that allow hotel clerks instantaneous access to a client's gambling history to determine what sort of room or complimentary services will provide the guests with the highest level of service.The resort is practicing:

Accepted Answer

The system used by Mirage Resorts is an example of one-to-one marketing, which involves creating customized products or services for individual customers based on their specific needs or preferences. In this case, the hotel clerks use the guests' gambling history to provide them with personalized services and experiences.

Question 17

When a firm uses a concentrated targeting strategy,it can:

Accepted Answer

A concentrated targeting strategy focuses on a specific segment of the market and offers a highly specialized marketing mix to meet the unique needs and preferences of that segment. This approach allows the firm to tailor their product, promotion, pricing, and distribution strategies to meet the specific needs of the target segment, which can lead to increased sales and profits. Concentrated targeting also allows the firm to avoid spreading its resources too thin by trying to reach too many segments at once.

Question 18

Pharmaceutical firms have introduced new over-the-counter antacids that block the production of stomach acids while still marketing traditional antacids.Traditional antacids treat heartburn by neutralizing stomach acid.If sales of the new acid blockers reduce sales of the traditional antacids,then _____ has occurred.

Accepted Answer

Cannibalization occurs when sales of a new product reduce sales of an existing product in the same company's product line. In this case, the introduction of new acid blockers that block the production of stomach acid could reduce sales of traditional antacids by the same company, leading to cannibalization.

Question 19

A mobile home manufacturer has decided to add concession food trailers to its product line.If all the current competitors in that market use a differentiated product market strategy,which strategy would make the LEAST sense for the manufacturer to implement?

Accepted Answer

Undifferentiated targeting strategy, also known as mass marketing, would make the least sense for the mobile home manufacturer to implement when entering the concession food trailer market. This strategy involves treating the market as a homogeneous group, without any attempt to differentiate the product or tailor it to specific segments. However, since the current competitors already use differentiated product market strategies, it would be important for the manufacturer to identify and target specific segments with unique needs and preferences, rather than taking a one-size-fits-all approach.

Question 20

With multisegment targeting,a company could benefit from all of the following EXCEPT:

Accepted Answer

Multisegment targeting involves targeting multiple segments with specific marketing strategies and tactics, which can result in greater sales volume, higher profits, larger market share, and economies of scale in manufacturing. However, it can also lead to greater product design and management costs as each segment may require unique customization. Therefore, the only option that is not a potential benefit of multisegment targeting is B, greater product design and management cost.

Quiz 7: Segmenting and Targeting Markets