Deck 9: Market Segmentation, Targeting, and Positioning

Question 1

A market includes any person or entity that has the willingness and the purchasing power to buy a product.

Answer 1

True

Question 2

Products bought by ultimate customers for personal use are known as consumer products.

Answer 2

True

Question 3

Raw silk is an example of a consumer product.

Answer 3

False

Question 4

Not-for-profit organizations practice market segmentation.

Question 5

A hotel purchases towels for use in its rooms.In this context,these towels will be considered business products.

Question 6

Since rubber purchased by Goodyear is utilized to manufacture tires that are ultimately used by consumers for their automobiles,rubber is a consumer product for Goodyear.

Question 7

Business products contribute directly or indirectly to the production of other goods and services for resale.

Question 8

Detergent packets purchased by a leading laundry service are considered business products.

Question 9

Targeting a large number of small markets can produce an expensive,complex,and inefficient marketing strategy.

Question 10

Families,bachelors,and retirees could be considered separate market segments for a company promoting travel packages.

Question 11

Firms often purchase legal services from external consultants.However,as this does not directly contribute to the firm's production activities,legal services cannot be considered a business product.

Question 12

The number and size of the market segments chosen by a firm must match its marketing capabilities.

Question 13

Items can be classified as business products,not because of what they are,but because of how they will be used.

Question 14

Division of the total market into smaller,relatively homogeneous groups is known as market optimization.

Question 15

Firms must attempt to group consumers according to the presence or absence of those factors that affect purchase decisions.

Question 16

Division of an overall market into homogeneous groups based on their locations constitutes socioeconomic segmentation.

Question 17

Marketers rarely encounter differences among members of a target group,as they segment potential consumers into homogeneous groups.

Question 18

Market segmentation attempts to isolate traits that distinguish a certain group of consumers from the overall market.

Question 19

The target market for a product is the specific segment of consumers most likely to purchase that particular product.

Question 20

Typically,a single marketing mix strategy attracts all sectors of a market.

Question 21

Geographic information systems (GIS)simplify the job of analyzing marketing information by relating data to their locations.

Question 22

Primary metropolitan statistical areas (PMSAs)are identified within areas of 1-million-plus populations.

Question 23

Psychographic segmentation is the most common method of market segmentation.

Question 24

Core based statistical areas (CBSA)are comprised of metropolitan and micropolitan statistical areas.

Question 25

Consolidated metropolitan statistical areas (CMSA)are limited to the same state,making it difficult for marketers to tap into similar product-use patterns among populations in neighboring states.

Question 26

Buyers in metropolitan statistical areas exhibit social and economic homogeneity.

Question 27

Home Depot introduced a new line of riding lawn mowers.The company decided to focus more on people living in the suburbs than those in the city because a survey showed the former category to be more inclined toward gardening.This is an example of a demographic segmentation by Home Depot.

Question 28

Geographic segmentation provides useful distinctions when regional preferences or needs exist.

Question 29

Geographic indicators such as job growth give useful guidance to marketers,depending on the type of products they sell.

Question 30

Core regions are locations where marketers get majority of their sales.

Question 31

A consolidated metropolitan statistical area comprises of two or more primary metropolitan statistical areas.

Question 32

A micropolitan statistical area will have at least one urbanized area of 50,000 or more inhabitants.

Question 33

Generation X is very family-oriented,well educated,and optimistic.

Question 34

Geographic segmentation is also called socioeconomic segmentation.

Question 35

Automobile manufacturers and food processing companies segment a particular geographic region based on the same factors.

Question 36

Very few residents of a micropolitan statistical area commute outside the area.

Question 37

Children exert considerable influence over household food purchases.

Question 38

Geographic information systems help marketers map out most efficient delivery routes.

Question 39

Dividing an overall market into homogeneous groups based on gender and age would constitute demographic segmentation.

Question 40

A metropolitan statistical area (MSA)is a freestanding urban area with a population in the urban center of at least 50,000 and a total MSA population of 100,000 or more.

Question 41

Members of the video game generation gravitate to activities that provide constant entertainment and immediate gratification.

Question 42

Baby Boomers are decreasing in popularity as a market segment due to their declining disposable income.

Question 43

Majority-minority counties are places where more than half the population is a single racial or ethnic group other than non-Hispanic white.

Question 44

Asian Americans are an attractive target to marketers as they have the fastest rising income.

Question 45

The 80/20 principle,also called Praedo's law,states that 80 percent of a product's revenues come from 20 percent of its customers.

Question 46

Baby boomers are people born between 1946 and 1964.

Question 47

The market segmentation that is based on the stages of the family lifecycle is a form of demographic segmentation.

Question 48

A management-driven method for identifying market segments involves asking customers for the product attributes important to them.

Question 49

Engel observed that the percentage of income spent on household operations and clothing remains constant even when the household income increases.

Question 50

According to Engel's laws,the percentage of income spent on food increases with increased income.

Question 51

The first stage in the market segmentation process,after identifying promising segments,is to produce a forecast of market potential within each segment.

Question 52

In the context of the VALS framework,"strivers" are a group of consumers who value duty and tradition more compared to other groups and are more likely to be women than men.

Question 53

Psychographic segmentation helps marketers to gain a sharper insight into consumer purchasing behavior.

Question 54

Psychographic segmentation involves segmenting the consumers on the basis of the benefits they seek from a product.

Question 55

The revised VALS system categorizes consumers by their occupations.

Question 56

The group born between 1968 and 1979,now generally in their early 30s to early 40s are referred to as Generation Y.

Question 57

The Asian American population is more geographically distributed than either Hispanics or African Americans.

Question 58

Married couples enter the "empty nest" stage once their children start living on their own.

Question 59

The Asian Americans are currently the largest ethnic minority group in the United States.

Question 60

In the context of the VALS framework,"devouts" are consumers who emphasize on social issues and societal well-being.

Question 61

"For the same dollars that you spend on a no-frills ticket to Los Angeles,fly Business Class with us!" is the advertising statement issued by FlyHigh Airlines.It represents an attempt by FlyHigh Airlines to position itself with respect to its competitors.

Question 62

An undifferentiated marketing strategy is more suited for a firm that markets generic products rather than individual brand names.

Question 63

Typically,magazines can be successfully marketed to consumers through mass marketing strategies.

Question 64

Once the total market potential has been estimated by a firm,the next step in the market segmentation process is to forecast the probable market share.

Question 65

If a company markets a consumer product,such as toilet paper,in bulk quantities to the entire market,it is involved in micromarketing.

Question 66

Up & Away Flying Corporation recently began manufacturing private helicopters.If they have a limited advertising budget,concentrated marketing would be the ideal marketing strategy for this firm.

Question 67

Kim's Egg Rolls were being promoted as a dinner item but after a few years the company decided to change their packaging and advertising to promote the egg rolls as evening snacks.This is an example of repositioning a product.

Question 68

During the process of market segmentation,finalizing the marketing strategy and tactics helps firms to determine the costs of marketing and the expected level of resources it must commit.

Question 69

The marketing strategy that targets potential customers based on specific occupation or lifestyle is called micromarketing.

Question 70

Firms can reposition their already successful products in order to gain a greater market share.

Question 71

As compared to undifferentiated marketing,applying a micromarketing strategy allows companies to reach larger markets.

Question 72

Concentrated marketing strategy ties a firm's growth to a specific market segment.

Question 73

Placing a product at a certain point or location within a market in the minds of prospective buyers is known as market mapping.

Question 74

Micromarketing may cause a company to lose sight of other,larger markets.

Question 75

A company that practices differentiated marketing can generate more sales compared to those generated by undifferentiated marketing.

Question 76

Niche marketing is best suited for firms that offer highly specialized goods and services.

Question 77

Competition in the market usually forces firms to adopt a differentiated marketing strategy.

Question 78

Micromarketing can target even individuals.

Question 79

A positioning map provides a valuable tool to help managers position products by graphically illustrating consumers' perceptions of competing products within an industry.

Question 80

Concentrated marketing is also known as niche marketing.