Deck 6: Customer-Driven Marketing Strategy: Creating Value for Target Customers

Question 1

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

Answer 1

C

Question 2

Companies today recognise that they cannot appeal to all buyers in the marketplace,or at least not to all buyers in the same way.

Answer 2

True

Question 3

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)are easier to measure
E)involve fewer attributes to consider

Answer 3

D

Question 4

Your company wants to move away from mass marketing and engage in customer-driven marketing.The four steps to take,in order,are market segmentation,marketing positioning,differentiation and targeting.

Question 5

Today,most companies have moved away from mass marketing and are being choosier about the customers with whom they wish to build relationships.

Question 6

Your firm has decided to localise its products and services to meet local market demands.A good approach to use would be ________ segmentation.

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

Question 7

Market ________ is the process of arranging for a product to occupy a clear,distinctive and desirable place relative to competing products in the minds of target consumers.

Question 8

Market ________ is the process of evaluating each market segment's attractiveness and selecting one or more of the market segments to enter.

Question 9

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 10

When Hungry Jacks 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 11

Unilever,a company active in the cosmetics and toiletries market,is most likely primarily using which type of segmentation with its Lynx product?

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

Question 12

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

A)efficiently
B)effectively
C)directly
D)both B and C
E)both A and B

Question 13

Briefly outline the principal steps in designing a customer-driven marketing strategy.

Question 14

When marketers at Unilever selected the Millennials,a demographic that includes university students,as an untapped group of potential customers for their Febreze line of products,they were executing which step in the process of designing a customer-driven marketing strategy?

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

Question 15

A Pet Supplies firm divides the pet market according to the owners' race,occupation,income and family life-cycle.What type of segmentation does it use?

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

Question 16

Market ________ is the process of classifying customers into groups with different needs,characteristics or behaviour.

Question 17

A customer-driven marketing strategy seeks to build the right relationships with the right customers.

Question 18

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

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

Question 19

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

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

Question 20

Even though several options are available at any one time,there ________ to segment a market.

A)is one single best way
B)is no single way
C)is a most effective way
D)are limited ways
E)are four ways

Question 21

A manufacturer of toothpaste has segmented the market and developed distinct product offerings designed to appeal to the three different segments.One product offers all day protection from tooth decay,a second product offers whiter,brighter teeth and the third product offers all day mouth freshness.Which approach to segmentation is the company most likely to have used?

A)benefit segmentation
B)psychographic segmentation
C)usage occasion
D)usage rate
E)demographic segmentation

Question 22

When Pacific Fisheries groups its customers as countries by regions such as Asia,Australia or New Zealand,it is using which segmenting base?

A)economic factors
B)political and legal factors
C)geographic location
D)benefits sought
E)demographics

Question 23

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 24

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 25

The manufacturers of the stylish motor vehicle,Lexus,target 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 26

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 27

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 28

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

Question 29

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 30

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

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

Question 31

MTV targets the world's teenagers,who have similar needs and buying behaviour even though they are located in different countries.This is called ________ segmentation.

A)political and legal
B)cross-cultural
C)cultural
D)intermarket
E)individual

Question 32

Which type of segmentation centres 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 33

The International Drilling Company 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 34

Shampoo marketers rate buyers as light,medium or heavy product users.This is ________ segmentation.

A)user status
B)usage rate
C)benefits sought
D)occasions
E)psychographic

Question 35

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

A)operating characteristics
B)purchasing approaches
C)situational factors
D)personal characteristics
E)brand personalities

Question 36

Your current assignment at York Foods is to find the major benefits people look for in product classes,the kinds of people who look for each benefit and the major brands that deliver each benefit.What is this segmentation method called?

A)benefits sought
B)user status
C)age and life-cycle
D)psychographic
E)demographic

Question 37

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 38

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 39

The division of buyers into groups based on their social class,life-style or personality characteristics is ________ segmentation.

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

Question 40

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 41

Demographic segmentation uses different marketing approaches for different time periods of people's lives and different family situations.

Question 42

A segmentation study of people who would be interested in subscribing to a cooking magazine discovered three distinct groups of potential subscribers: (1)those who wanted to cook the same foods their mothers cooked for them;(2)those who wanted to learn about the latest cooking trends and fads;and (3)those who were interested in learning about a variety of different international cuisines and exotic ingredients.This magazine discovered its market can be segmented using ________ variables.

A)demographic
B)social class
C)lifestyle
D)generation
E)geographic

Question 43

The Blue Mountains Retreat Centre is open to people of all religious faiths and is a place people can go to unwind from the stressful rigors of daily life.Which of the following is an example of a psychographic variable the owner of the retreat could use in its marketing strategy?

A)occupation
B)life-stage
C)lifestyle
D)social class
E)income

Question 44

User status segmentation involves finding the major advantages or features people look for in the product class,the kinds of people who look for each advantage or feature,and the major brands that deliver each advantage or feature.

Question 45

In some parts of remote Australia,notably northern Western Australia and parts of the Northern Territory,consumers live in districts that are not able to receive a radio or TV signal,do not have access to broadband and where newspapers are only delivered occasionally.Even though these consumers may have clearly articulated needs and disposable incomes,from a marketing standpoint,they are difficult to target because they are NOT ________.

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

Question 46

Research about and planning for loyalty status as a segmentation approach is generally not useful or practical for most firms.

Question 47

The geographic segmentation assumption that consumers in nations close to one another will have many common behaviours and traits.

Question 48

LaGrange Florists segments markets into groups of nonusers,ex-users,potential users,first-time users and regular users of its flowers and services.This firm uses usage rate as the segmentation approach.

Question 49

Your assignment at work is to divide buyers into different groups based on social class,lifestyle and personality characteristics.After a planning session with the marketing and sales staff,you issue a memo to upper management recommending psychographic segmentation.You are right on target.

Question 50

International Luxury Gifts divides its markets into units of nations,regions and cities.International Luxury Gifts uses geographic segmentation.

Question 51

Business and consumer marketers use the same set of variables to segment their markets.

Question 52

The Restaurant and Catering Association of Australia (RCAA)recently carried out a segmentation analysis of the fine dining segment.This analysis revealed five distinct segments based on a number of key dining-out motivations including: (1)Convenience / ease (e.g. ,not having to prepare own food);(2)Socialising (e.g. ,catching up with friends / family);(3)To mark celebrations or special events or occasions (e.g. ,birthdays,anniversaries);(4)Rewards (e.g. ,for adults and children);(5)Social development for children (e.g. ,how to act appropriately in a public arena);and (6)Networking for business.A summary profile of the largest segment reads as follows: 'This segment,accounts for 36 per cent of all those who dine at fine restaurants.They have a pragmatic attitude to dining out,appreciate dining out,exhibit frequent dining out behaviour,seek value,do not need a reason to dine out and instead are often involved in informal dining occasions'.The RCAA's segmentation analysis is most likely to be based on which approach?

A)demographic
B)user status
C)benefits sought
D)loyalty status
E)multivariate

Question 53

When the market segments your company is targeting can be effectively reached and served,these segments are ________.

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

Question 54

For decades,Ocean Spray cranberry jelly has been on thousands of Christmas tables globally.Ocean Spray is working hard to implement other strategies to encourage consumers to use the product all year round.Ocean Spray is seeking to move beyond the limited ________ segmentation strategy it used in the past.

A)user rate
B)lifestyle
C)family life-cycle
D)benefit
E)occasion

Question 55

Which of the following statements is expressed solely as a psychographic profile of a consumer?

A)Gail is 21,a secretary and she loves mountain biking.
B)Roger is a radiographer with an income of over 80 thousand dollars per year.
C)Ben is self-confident in his role as a park ranger.
D)Randall loves long weekends in the countryside to relieve the pressure of his medical practice.
E)Rab likes nothing better than to unwind with his mates,over a drink,at the football.

Question 56

Clusters of marketable groups of customers with similar likes,dislikes,lifestyles and purchase behaviours can be identified by multivariable segmentation systems that merge and analyse geographic,demographic,lifestyle and behavioural data.

Question 57

Scouts Australia is currently scrutinising its database of current and lapsed members in an effort to detect patterns.It is hoping to develop insights that will enable it to develop programs encouraging existing members to stay with the scouting movement for longer than average.It is also hoping to implement programs designed to encourage lapsed members to re-join the movement.Scouts Australia is currently engaged in which type of segmentation analysis?

A)benefit
B)usage occasion
C)user status
D)demographic
E)loyalty status

Question 58

Shopping For The Rich and Famous is a buying service that helps wealthy clients find the best buys in exclusive clothing,high-end cars,travel and financial services.This firm would use income segmentation.

Question 59

Gender segmentation has long been used in clothing,cosmetics,toiletries and magazines.

Question 60

For simplicity's sake,most marketers generally limit their segmentation analysis to one or a few variables.

Question 61

When might be the best time for a marketer to use geographic segmentation?

Question 62

By looking at customers who are shifting away from its brand,the company can learn about its marketing ________.

Question 63

Why and how do businesses segment their markets?

Question 64

________ segmentation divides a market into groups according to occasions when buyers get the idea to buy,make a purchase or use a product.

Question 65

Briefly explain the necessary characteristics of an effective and useful market segment.

Question 66

Thinking about generational segments covered in Chapter 3 (Generation X,Millennials,baby boomers)and demographic segments (especially age),compare and contrast generational segments and demographic by age segments.

Question 67

When considering segmentation,briefly explain why deodorant marketers would consider multivariate segmentation.

Question 68

Why do international markets need to be segmented?

Question 69

Imagine that you are presenting a workshop on the Requirements for Effective Segmentation.Briefly list and describe the five traits of market segments that will help your audience understand your topic.

Question 70

________ segmentation divides a market into units such as nations,regions,states,municipalities,cities or neighbourhoods.

Question 71

To be useful,market segments must be measurable,accessible,________ and actionable.

Question 72

How can marketers attract non-loyal consumers?

Question 73

________ segmentation divides a market into groups based on social class,lifestyle or personality characteristics.

Question 74

Explain,in detail,how you would segment the market and identify a target market for a university cafeteria.

Question 75

Because there is such variation among the economies of countries around the world,it is not practical to segment international markets on the basis of economic factors.

Question 76

For market segments to be useful,they must be measurable,accessible,substantial,and actionable.

Question 77

Briefly outline the four major segmenting variables for consumer markets.

Question 78

________ segmentation divides a market into groups based on variables such as education,religion and nationality.

Question 79

Describe how marketers use multiple-segmenting bases to their advantage.

Question 80

Why might demographic segmentation be the most common type of segmentation?