Deck 7: Segmentation, Targeting, and Positioning

Question 1

Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation?

A)gender
B)life cycle
C)occasion
D)usage rate
E)benefits sought

Answer 1

B

Question 2

Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called ________.

A)user status
B)usage rate
C)benefit
D)behaviour
E)loyalty status

Answer 2

A

Question 3

Which of the following best describes market segmentation?

A)dividing the market into smaller, meaningful groups of customers
B)a promise to a group of customers
C)evaluating and identifying a meaningful group of customers to serve
D)creating a unique offering to provide customer value
E)identifying a clear and distinct place in the customer's brain that the brand or company should occupy

Answer 3

A

Question 4

Which of the following best describes positioning?

A)dividing the market into smaller, meaningful groups of customers
B)a promise to a group of customers
C)evaluating and identifying a meaningful group of customers to serve
D)creating a unique offering to provide customer value
E)identifying a clear and distinct place in the customer's mind that the brand or company should occupy relative to the competition

Question 5

Marketers must be careful to guard against ________ when using age and life cycle segmentation.

A)underestimating
B)stereotyping
C)traditional marketing
D)cultural bias
E)gender bias

Question 6

Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ________.

A)user status
B)loyalty status
C)store type
D)brand preference
E)usage rate

Question 7

When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely primarily using which type of segmentation?

A)age and life cycle
B)gender
C)behaviour
D)psychographic
E)geographic

Question 8

Pendergraff Pet Supplies divides the pet market according to the owners' ethnicity, occupation, income, and family life cycle. What type of segmentation does Pendergraff use?

A)geographic
B)behavioural
C)lifestyle
D)demographic
E)psychographic

Question 9

Demographic variables are so frequently used in market segmentation because they ________.

A)create smaller segments
B)create more easily reached segments
C)do not involve stereotypes
D)tend to be easier to identify and measure
E)involve fewer attributes to consider

Question 10

What are the four steps, in order, to designing a customer-driven marketing strategy?

A)market segmentation, differentiation, positioning, and targeting
B)positioning, market segmentation, mass marketing, and targeting
C)market segmentation, targeting, differentiation, and positioning
D)market alignment, market segmentation, differentiation, and market positioning
E)market recognition, market preference, market targeting, and market insistence

Question 11

Which of the following best describes differentiation?

A)dividing the market into smaller, meaningful groups of customers
B)a promise to a group of customers
C)evaluating and identifying a meaningful group of customers to serve
D)creating a unique offering to provide customer value
E)identifying a clear and distinct place in the customer's brain that the brand or company should occupy

Question 12

Which of the following best describes market target?

A)dividing the market into smaller, meaningful groups of customers
B)a promise to a group of customers
C)evaluating and identifying a meaningful group of customers to serve
D)creating a unique offering to provide customer value
E)identifying a clear and distinct place in the customer's brain that the brand or company should occupy

Question 13

When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________.

A)concentrated marketing
B)mass marketing
C)market targeting
D)segmenting
E)differentiation

Question 14

Your firm's research reveals that consumers have different tastes in different cities. As a result, management has decided to localize its products and services to meet local market demands. This is an example of ________ segmentation.

A)geographic
B)benefit
C)end-use
D)customer
E)image

Question 15

Through talking to numerous competitors at a regional trade show, you learn that most of them use the most popular base for segmenting markets. What is it?

A)demographic
B)lifestyle
C)psychographic
D)behavioural
E)geographic

Question 16

The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation.

A)behavioural
B)psychographic
C)age and life cycle
D)demographic
E)geographic

Question 17

There ________ to segment a market.

A)is one single best way
B)is no single way
C)is not a most effective way
D)are limited ways
E)are four ways

Question 18

Which type of segmentation centers on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item?

A)demographic
B)psychographic
C)occasion
D)impulse
E)emergency

Question 19

When Burger King targets children, teens, adults, and seniors with different ads and media, it is practicing ________ segmentation.

A)geographic
B)age and life cycle
C)psychographic
D)behavioural
E)usage rate

Question 20

Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached ________ and effectively with products and services that match their unique needs.

A)efficiently
B)slowly
C)intensely
D)indirectly
E)directly

Question 21

In general, a company should enter only segments in which it can ________ and ________.

A)offer lower prices; ship faster
B)offer superior value; gain advantages over competitors
C)offer superior value; ship faster
D)gain advantages over competitors; offer new products
E)identify behaviours; understand spending power

Question 22

The 55-year-old baby boomers share common needs in music and performers. When a music company decides to serve this group, the group is called a(n)________.

A)market segment
B)target market
C)well-defined market
D)differentiated market
E)undifferentiated market

Question 23

In Canada, cranberry sauce sales spike right before Thanksgiving, Christmas, and other holidays. A segmentation that seems to describe this phenomenon is ________.

A)social class
B)personality
C)occasion
D)readiness stage
E)education

Question 24

To evaluate the different market segments your company is serving, you would look at which of the following factors?

A)consumer size
B)product growth
C)segment structural attractiveness
D)company culture
E)company competitors

Question 25

By studying its less loyal buyers, a company can detect which brands are most ________ with its own.

A)competitive
B)used
C)often overlooked
D)similar
E)complementary

Question 26

If Wealth TV decides to segment its market based on the social class of television viewers, what segmentation approach is Wealth TV using?

A)geographic segmentation
B)demographic segmentation
C)psychographic segmentation
D)behavioural segmentation
E)situational factors

Question 27

Mass marketers, such as Target and Venture Stores, often ignore market segment differences and target the whole market with one offer. What is their approach to segmenting?

A)undifferentiated marketing
B)differentiated marketing
C)target marketing
D)concentrated marketing
E)micromarketing

Question 28

When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________.

A)measurable
B)accessible
C)substantial
D)actionable
E)observable

Question 29

Many firms make an effort to identify smaller, better-defined target groups by using ________.

A)user rates
B)loyalty segmentation
C)multiple segmentation bases
D)positioning
E)mass marketing

Question 30

The market segments your company is targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. Therefore, these segments are ________.

A)accessible
B)measurable
C)reachable
D)differentiable
E)observable

Question 31

When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________.

A)accessible
B)measurable
C)reachable
D)actionable
E)differentiable

Question 32

Barney Hopkins has compiled a list of things that make segments more attractive. Which of the following items should be on the list?

A)profitability
B)powerful suppliers to control prices
C)many substitute products
D)competition with superior resources
E)financial resources

Question 33

Lexus targets wealthy consumers with similar needs and buying behaviours, even though the consumers are located in different countries. This is an example of ________.

A)intermarket segmentation
B)loyalty segmentation
C)life-cycle segmentation
D)targeting segmentation
E)psychographic segmentation

Question 34

As in consumer segmentation, many marketers believe that ________ and ________ segmentation provide the best basis for segmenting business markets.

A)geographic; demographic
B)user status; user loyalty
C)benefits; buying behaviour
D)age and life-cycle; psychographic
E)income; usage rate

Question 35

Purrsonals.com calls itself "the cat lover's social network." Which targeting approach best describes the site's approach?

A)undifferentiated marketing
B)differentiated marketing
C)mass marketing
D)niche marketing
E)substitute marketing

Question 36

Consumer and business marketers use many of the same variables to segment markets. Business marketers use which of the following?

A)operational behaviours
B)purchasing plans
C)situational factors
D)product characteristics
E)brand personalities

Question 37

Wealth TV is a channel that segments its market based on the household income levels of television viewers. This firm segments on what basis?

A)geographic segmentation
B)demographic segmentation
C)psychographic segmentation
D)behavioural segmentation
E)situational factors

Question 38

International Drilling Company is a business-to-business company that segments its foreign markets by the income levels of a country's population. This firm segments on what basis?

A)political factors
B)legal factors
C)geographic factors
D)economic factors
E)cultural factors

Question 39

When a market segment is large or profitable enough to serve, it is termed ________.

A)measurable
B)accessible
C)substantial
D)actionable
E)differentiable

Question 40

Which of the following is one of the reasons a segment would be less attractive to a company?

A)no competitors
B)substitute products
C)concentrated market
D)does not match company's long run objectives
E)power of suppliers

Question 41

When choosing a target marketing strategy, many factors need to be considered. Which of the following does your text mention as important?

A)company natural resources
B)unlimited resources
C)product life-cycle stage
D)product cost
E)your marketing strategies

Question 42

When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing.

A)undifferentiated
B)differentiated
C)individual
D)mass
E)niche

Question 43

Mass customization has made relationships with customers ________.

A)irrelevant
B)more important than ever
C)less profitable
D)easier
E)self-conceptualized

Question 44

Which of the following is an extreme form of market segmentation?

A)segmented strategy
B)micromarketing
C)differentiated marketing
D)mass marketing
E)undifferentiated marketing

Question 45

________ marketing tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores.

A)Undifferentiated
B)Differentiated
C)Niche
D)Local
E)Variable

Question 46

It is most accurate to say that successful niche marketing relies on a firm's ________ and its ________.

A)marketing strategy; services
B)individual relationships with customers; positioning
C)superior products; value network partners
D)greater knowledge of customers' needs; special reputation
E)competitive advantage in comparison to mass-market companies; affordable pricing

Question 47

Target marketing sometimes generates controversy and concern. Issues usually involve the targeting of ________ consumers with ________ products.

A)elderly; expensive
B)young; appealing
C)vulnerable; marketing
D)vulnerable or disadvantaged; controversial or potentially harmful
E)mass market; deceptive

Question 48

As You Like It, Inc., customizes its offers to each individual consumer. This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________ marketing.

A)niche
B)micro
C)variable
D)mass
E)undifferentiated

Question 49

Procter & Gamble sells six brands of laundry detergent in North America, each designed for one of six laundry type segments Procter & Gamble has identified. Together, these six brands take four times the market share of Procter & Gamble's nearest competitor. Which of the following is a disadvantage of Procter & Gamble's differentiated marketing strategy?

A)lost sales that would have been made with an undifferentiated marketing strategy across all segments
B)lost customer loyalty due to lack of brand loyalty
C)increased costs for separate marketing plans for each brand
D)other suppliers controlling pricing
E)lack of resources to succeed in an attractive segment

Question 50

Which of the following is a drawback of local marketing?

A)It can drive up manufacturing agents.
B)It can drive up marketing costs by reducing economies of scale.
C)It can create logistics opportunities.
D)A brand's overall image will be enhanced through added variation.
E)Supporting technologies are not cost-effective.

Question 51

Under what circumstances would local marketing likely be the most effective?

A)when pronounced differences in psychographics are present
B)when pronounced differences in lifestyles are present
C)when pronounced regional and local differences in demographics and lifestyles are present
D)when regional demographics and lifestyles are similar
E)when pronounced similarities in psychographics are present

Question 52

Niche marketing offers smaller companies the opportunity to compete by focusing their limited resources on serving niches that may be ________ or ________ larger companies.

A)unimportant to; desired by
B)unimportant to; overlooked by
C)too large; undesirable to
D)unknown by; desired by
E)disappointed by; geographically far from

Question 53

When competitors use differentiated or concentrated marketing, ________ marketing can be disastrous.

A)differentiated
B)undifferentiated
C)concentrated
D)customized
E)localized

Question 54

ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________ against ________ when selecting this strategy.

A)extra research; costs
B)sales analysis; sales
C)increased sales; increased costs
D)geographic segmentation; demographic segmentation
E)attitudes; perceptions

Question 55

Which of the segmenting strategies makes the most sense when a company introduces a new product?

A)concentrated
B)mass
C)differentiated
D)individual marketing
E)multiple-segment

Question 56

When Walmart customizes its merchandise store by store to meet shopper needs, it is practicing ________.

A)niche marketing
B)psychographic marketing
C)local marketing
D)social segmentation
E)individual marketing

Question 57

Today, companies are ________ because they have the tools to interact on a one-to-one basis with masses of customers.

A)in malls in major cities
B)in mail-order catalogs
C)hyper-customizing
D)near major competitors
E)far from competitors

Question 58

When a company interacts one-on-one with large numbers of customers to create customer-unique value by designing products and services tailor-made to individual needs, it is following ________.

A)concentrated marketing
B)mass marketing
C)mass customization
D)undifferentiated marketing
E)localization

Question 59

Typically, developing a strong position within several market segments creates more total sales than ________ marketing across all segments.

A)undifferentiated
B)differentiated
C)niche
D)target
E)individual

Question 60

Using concentrated marketing, the marketer goes after a ________ share of ________.

A)small; a small market
B)small; a large market
C)large; one or a few niches
D)large; the mass market
E)moderate; the local market

Question 61

A company or store gains a(n)________ by differentiating its products and delivering more value.

A)competitive advantage
B)positioning advantage
C)cost advantage
D)efficiency advantage
E)synergy

Question 62

In target marketing, the issue is not really who is targeted, but rather ________ and for ________.

A)why; what
B)how; what
C)why; how long
D)where; how long
E)how; where

Question 63

Few people can afford the best in everything they buy. At times everyone needs a product with less quality or performance with a correspondingly lower price. In this case, a consumer would purchase a product positioned with a(n)________ strategy.

A)more-for-the-same
B)more-for-less
C)same-for-less
D)less-for-much-less
E)all-or-nothing

Question 64

It is considered socially irresponsible when the marketing of adult products spills over into the ________ segment.

A)elderly
B)child
C)animal
D)minority
E)senior

Question 65

Which group determines a product's position relative to competing products?

A)manufacturers
B)wholesalers
C)retailers
D)consumers
E)suppliers

Question 66

Most market targeting draws no criticism because it ________ customers.

A)benefits
B)education
C)disadvantages
D)harm
E)expenses

Question 67

You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand is differentiated and positioned. This full positioning of the brand is called ________.

A)its value proposition
B)target marketing
C)capturing the consumers' attention
D)value profiling
E)differentiated marketing

Question 68

When firms use symbols, colors, or characters to convey their personalities, they are using ________ differentiation.

A)image
B)people
C)company
D)reputation
E)subliminal

Question 69

The answer to the customer's question, "Why should I buy your brand?" is found in the ________.

A)quality image
B)customer services
C)value proposition
D)differentiation
E)pricing and promotion structure

Question 70

Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to it. What does USP stand for?

A)unique selling product
B)unique services practice
C)unique sales pitch
D)unique selling proposition
E)universally strategic practice

Question 71

Which type of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance?

A)services differentiation
B)channel differentiation
C)people differentiation
D)product differentiation
E)price differentiation

Question 72

Which difficult-to-achieve positioning strategy attempts to deliver the winning value proposition?

A)more-for-the-same
B)more-for-less
C)same-for-less
D)more-for-more
E)less-for-much-less

Question 73

Which positioning strategy offers consumers a "good deal" by offering equivalent-quality products or services at a lower price?

A)more-for-the-same
B)more-for-less
C)same-for-less
D)less-for-much-less
E)all-or-nothing

Question 74

Not every brand difference is worth establishing and promoting. A difference is worth promoting to the extent that it satisfies which of the following criteria?

A)competitive
B)alternative
C)divisible
D)superior
E)reactive

Question 75

What competitive positioning strategy can attack a more-for-more strategy by introducing a brand offering with comparable quality at a lower price?

A)more-for-the-same
B)more-for-less
C)same-for-less
D)less-for-much-less
E)all-or-nothing

Question 76

From cereal and toys to fast food and fashion marketers have generated much controversy in recent years by their attempts to target ________.

A)the elderly
B)white-collar workers
C)children
D)multiple international markets
E)suburban adults

Question 77

A company or market offer can be differentiated along the lines of product, image, services, channels, or ________.

A)prices
B)nonprice factors
C)people
D)customer service
E)location

Question 78

Which of the listed choices is a very important positioning task?

A)identifying a set of possible competitive advantages upon which to build a position
B)surveying frequent uses of the product
C)selecting a specific positioning statement
D)effectively selling the cheapest position to the market
E)selecting the right competition

Question 79

"Less-for-much-less" positioning involves meeting consumers' ________.

A)quality performance requirements at a lower price
B)lower quality requirements in exchange for a lower price
C)lower quality requirements at the lowest possible price
D)high quality requirements at a discounted rate
E)high quality requirements at the lowest possible price

Question 80

A product's position is based on important attributes as perceived by ________.

A)suppliers
B)competitors
C)market conditions
D)consumers
E)managers