Deck 7: Segmentation,target Marketing,positioning

Question 1

Differentiation means developing different value offerings for different targeted segments.

Answer 1

True

Question 2

Segmentation is required only for the consumer market.

Answer 2

False

Question 3

With respect to the US minority population,the fastest growing population is the Asian community.

Answer 3

False

Question 4

Target marketing is the process of evaluating market segments and deciding which among them shows the most promise for development.

Question 5

Family and household segmentation have become more complex than ever as a result of non-traditional households and different standards of morality in the population.

Question 6

Occupation segmentation is very closely related to income segmentation although the two are not perfectly correlated.

Question 7

A company that uses positioning often uses a price-quality perceptual map in order to show where it is positioned versus the competition.This helps it understand if it needs to either change pricing strategy or quality standards.

Question 8

Generation Y,people born between 1978-1994,tend to be pragmatic,optimistic,good team players,savvy,and edgy in nature.

Question 9

With reference to the VALS™ framework,makers are active and impulsive,seeking stimulation from the new,offbeat,and risky.

Question 10

With reference to the VALS™ framework,the primary motivation for thinkers is self-expression.

Question 11

If a firm chooses more than one segment to attack,it should approach them sequentially,not all at the same time.

Question 12

Firms generally only use one method of segmentation at a time.

Question 13

Overpositioning occurs when consumers have only a vague idea about the company and its products,and do not perceive any real differentiation.

Question 14

Gen Y is often referred to as the "baby bust" because it represents a natural cyclical downturn in birthrate.

Question 15

Dividing a market into meaningful smaller markets or submarkets based on common characteristics is called market segmentation.

Question 16

The concept of differentiation implies that consumers perceive the value of companies differently and that they are willing to pay a premium for goods and services that they see as unique.

Question 17

Geodemographic segmentation is a technique that combines where a person lives with his or her lifestyle in a way that allows marketers to fine tune local consumer offerings.

Question 18

In case of consumer markets,there is often a more defined universe of potential customers.

Question 19

For many marketing managers,segmentation by benefit sought is the best place to start the process of market segmentation.

Question 20

In general,B2B segmentation is more straightforward than B2C segmentation.

Question 21

Doubtful positioning occurs when consumers have too narrow an understanding of the company,product,or brand.

Question 22

Target marketing is the process by which __________.

A) The market is divided up into cohesive groups
B) The company evaluates segments and decides which ones have the most potential for development
C) The company decides on which message can be used to attack each segment
D) Companies decide the unique combination of the marketing mix variables.
E) None of the above

Question 23

The region,the density of the population,and the size of the population are techniques used in ________.

A) Positioning
B) Differentiation
C) Democratic segmentation
D) Population parameter estimation
E) Geographic segmentation

Question 24

The way a company ultimately connects its value proposition to a target market is through its __________.

A) Targeting
B) Market segmentation
C) Churn analysis
D) Positioning
E) None of the above

Question 25

Segmenting means _________.

A) Dividing the market into meaningful smaller markets based on common characteristics
B) Selecting the markets to attract in the market place
C) Selecting a corporate position to communicate to potential customers
D) Identifying and calculating the churn rate in different markets
E) None of the above

Question 26

Positioning relies upon the communication of one or more sources of value to customers in a way that the customer can easily make the connection between ________.

A) The cost of the product and the quality
B) Various marketing mix variables
C) The customer's needs and wants and what the product has to offer
D) The brand of the product and its quality
E) None of the above

Question 27

Utilization of symbols,atmosphere,and creative media to create differentiation leads to convenience leadership.

Question 28

A price leadership position (example: Walmart)implies that a company that assumes this position has superior operational elements in order to maintain the low price position.

Question 29

Some insurance and credit card companies would like to target students as a segment but find it hard to capture their attention.This is an example of a market lacking one of the criteria for segmentation and it is ________.

A) The ability to reach the segment in terms of communication
B) The ability of identifying the market
C) The size of the market
D) The ability of obtaining information about the market
E) None of the above

Question 30

Having a product whose value proposition is a well kept secret ________.

A) Is a good idea
B) Is not a good thing in marketing
C) Is a concept that uses subliminal messages
D) Is a superior concept used in targeting
E) Is a well accepted idea in market segmentation

Question 31

A _________approach is also popularly called a niche strategy.

A) Customized marketing
B) Differentiated target marketing
C) Concentrated target marketing
D) Mass marketing
E) One-to-one marketing

Question 32

When Bernard,a marketer,says that a segment has sufficient size,he means _________.

A) The segment has a return-on-invest which is very close to the expected value
B) The segment is too large to be worth considering
C) Positive return on investment is expected from the segment
D) The segment has many customers in it
E) The segment has at least one customer in it

Question 33

Doubtful positioning occurs when frequent changes and contradictory messages confuse consumers regarding the positioning of the brand.

Question 34

The sequential steps to successful segmentation are:

A) Positioning, targeting, and segmenting
B) Research, fulfillment analysis, and churn rate
C) Segmenting, targeting, and positioning
D) Need identification, qualitative research, and positioning
E) Consumer analysis, content analysis, and segmenting

Question 35

Under positioning occurs when consumers have a vague idea about the company and its products,and do not perceive any real differentiation.

Question 36

While moving out of the 1990's,McDonald's had tried (and failed)at so many diverse new product launches in its restaurants that many customers lost track of what the core of the brand was.This represents which positioning error?

A) Overpositioning
B) Underpositioning
C) Doubtful positioning
D) Confused positioning
E) None of the above

Question 37

Companies like Apple that are constantly developing the next new thing employ a strategy called service leadership.

Question 38

When it is said that a market can be reached,it means that _______.

A) The market can be reached by transportation
B) The market can be reached by language
C) The market can be reached by technology
D) The market can be reached by communication
E) All of the above

Question 39

With reference to the VALS™ framework,_______ are fundamentally conservative and they choose familiar products and established brands.

A) Makers
B) Survivors
C) Believers
D) Achievers
E) Thinkers

Question 40

All of the following techniques are used for geographic segmentation EXCEPT:

A) Region
B) Density of population
C) Size of population
D) Sensitivity of population
E) All of the above are used

Question 41

All of the following are basic principles behind segmentation EXCEPT:

A) Not all customers are alike.
B) Subgroups of customers can be identified on some basis of similarity.
C) Segmentation of the market leads to effective inventory management
D) Subgroups will be smaller and more homogeneous than the overall market.
E) Needs and wants of a subgroup are more efficiently and effectively addressed than would be possible within the heterogeneous full market.

Question 42

Walter was born in 1925.He is a member of the ___________ generation.

A) Baby boomer
B) GI
C) Silent
D) Gen X
E) Millennial

Question 43

Sociologists look for defining events such as wars,major economic upheaval,and social cultural revolution to create _________.

A) Social movements
B) Marketing opportunities
C) Generational groups for segmentation purposes
D) New product ideas
E) None of the above

Question 44

When a company makes frequent changes in its positioning and sends out contradictory messages,such positioning error is called as _________.

A) Doubtful positioning
B) Overpositioning
C) Under positioning
D) Confused positioning
E) None of the above

Question 45

Demographic segmentation uses _______.

A) Characteristics of human populations to segment the market
B) Characteristics of geography to segment the market
C) Characteristics of personality to segment the market
D) Characteristics of virtual communities to segment the market
E) All of the above

Question 46

Google uses stored browsing histories to trigger ads aimed at selling specific products for which a Google user has shown potential interest.This shows that Google is using _________ segmentation.

A) Behavioral
B) Social class
C) Demographic
D) Geodemographic
E) Education

Question 47

When JC Penney orders winter coats,it sends them to stores at different times of the year.This is an example of _______.

A) Demographic segmentation
B) Geographic segmentation based on climate
C) Behavioral segmentation
D) Psychographic segmentation
E) Demographic segmentation based on social class

Question 48

If geographic segmentation is carried out,it means ________.

A) The variables like social class and education are used to identify markets
B) The statistical characteristics of human populations such as age or income are used to identify markets
C) Consumers respond differently to marketing strategies and programs based on where they live
D) The East Coast, West Coast, and Midwest are the most important market segments based upon size
E) None of the above

Question 49

Back when Listerine was marketed as just a mouthwash,it tended to be used sporadically or in the morning as part of the day's hygiene routine.But now that the product also addresses such oral concerns as gingivitis and gum disease,the usage rate is way up with many people developing a regular,twice-a-day regimen.Listerine is an example of _________ segmentation.

A) Age
B) Income
C) Usage-based
D) Psychographic
E) Social class

Question 50

With reference to the VALS™ framework,_______ are primarily concerned about safety and security,so they tend to be brand loyal and buy discounted merchandise.

A) Makers
B) Survivors
C) Believers
D) Achievers
E) Thinkers

Question 51

If secondary and/or primary data on a market being considered for segmentation is available,then it means _______.

A) The market is clearly differentiated
B) The market has sufficient size
C) The market is reachable
D) The market is readily identifiable and can be measured
E) None of the above

Question 52

Dell became so entrenched as a brand of PCs that it has been a bit of a struggle to extend the brand into other lucrative product lines.This is an example of ________.

A) Doubtful positioning
B) Confused positioning
C) Overpositioning
D) Underpositioning
E) None of the above

Question 53

All of the following are criteria for effective segmentation EXCEPT:

A) The segment is of sufficient size
B) The segment is readily identifiable
C) The segment is clearly differentiated on one or more important dimensions
D) The segment can be reached, both in terms of communication and physical product
E) The segment has at least 10000 potential consumers

Question 54

___________ would not be a good product for using gender segmentation.

A) Clothes
B) Perfume
C) Toothpaste
D) Wrist watches
E) Shoes

Question 55

Which of the following variables is NOT used for demographic segmentation?

A) Age
B) Personality
C) Income
D) Gender
E) Education

Question 56

With reference to the VALS™ framework,_______appreciate the unconventional.They are active and impulsive,seeking stimulation from the new,offbeat,and risky.

A) Makers
B) Survivors
C) Believers
D) Experiencers
E) Thinkers

Question 57

Family life cycle segmentation factors includes all of the following EXCEPT ____________.

A) Income
B) Age
C) Marital status
D) Number of children
E) Cohabitation

Question 58

_______ is/are often referred to as the "baby bust" because it represents a natural cyclical downturn in birthrate.

A) Millennials
B) Generation X
C) Generation Y
D) The silent generation
E) Baby boomers

Question 59

________ represent(s)a huge segment of the population.There is some evidence that they,in their own minds,do not think they age.

A) Generation X
B) Generation Y
C) Millennials
D) Baby boomers
E) The silent generation

Question 60

Demographic segmentation is one of the most popular segmentation approaches because _________.

A) It is readily measurable
B) Customer needs and wants tend to vary with some degree of regularity based on demographic differences
C) It uses the statistical characteristics of human populations such as age or income
D) All of the above
E) None of the above

Question 61

When FedEx promises 8 a.m.next-day delivery,it has to be sure its systems can actually produce such a level of performance all the time.Failure to do so will lead to _______.

A) Doubtful positioning
B) Confused positioning
C) Overpositioning
D) Underpositioning
E) None of the above

Question 62

One of the problems faced while using income as a variable of segmentation is:

A) Many people either purposely misstate or refuse to reveal their income
B) It is too simple to use
C) It is confusing because of its interaction with gender and age
D) It is time consuming to study consumer's buying habits based upon their income
E) None of the above

Question 63

As compared to psychographic segmentation,geographic and demographic segmentations are relatively ________.

A) Time consuming
B) Difficult to carry out
C) Subjective in nature
D) Objective in nature
E) None of the above

Question 64

A marketing manager using VALS™ is interested in ____________ segmentation.

A) Geographic
B) Psychographic
C) Geodemographic
D) Demographic
E) Behavioral

Question 65

Social class as a segmentation tool takes into account _______.

A) Income
B) Education
C) Occupation
D) None of the above
E) A, B, and C

Question 66

With reference to the VALS™ framework,the primary motivation for thinkers is ________.

A) Self-expression
B) Achievement
C) Ideals
D) Money
E) Recognition

Question 67

Every zip code in the United States falls into profiles provided by Claritas in its database called _________.

A) GEO-FIX
B) PRIZM-NE
C) AIO
D) Nielsen ratings
E) None of the above

Question 68

AIOs are used for psychographic segmentation.AIO stands for _______.

A) Archives, intellect, and opinions
B) Activities, interests, and opinions
C) Archives, intellect, and orientation
D) Activities, intellect, and orientation
E) None of the above

Question 69

With reference to the VALS™ framework,the primary motivation for makers is ________.

A) Self-expression
B) Achievement
C) Ideals
D) Money
E) Recognition

Question 70

Offering credit cards to college-bound high school seniors is an example of ________ segmentation.

A) Income segmentation
B) Occupation segmentation
C) Education segmentation
D) Life style segmentation
E) All of the above

Question 71

Winner's Circle,Money and Brains,and Executive Suites are examples of _________.

A) PRIZM clusters
B) VALS™ types
C) Behavioral segments
D) Geographic segments based on climate
E) None of the above

Question 72

Efficiencies in cost of labor,materials,supply chain,or other operational elements lead to ________ leadership.

A) Innovative
B) Product
C) Price
D) Service
E) Personnel

Question 73

AIOs (activities,interests,and opinions)are used for _________ segmentation.

A) Psychographic
B) Demographic
C) Behavioral
D) Geographic
E) None of the above

Question 74

The fastest growing minority group in the United States is ______.

A) Asians
B) African Americans
C) Hispanics
D) American Indians
E) None of the above

Question 75

With reference to the VALS™ framework,_______ have goal-oriented lifestyles that center on family and career.

A) Makers
B) Survivors
C) Believers
D) Achievers
E) Thinkers

Question 76

Ads with messages like "Orange juice-It's not just for breakfast anymore!" or "Soup can be a delicious way to start a cold winter's day" are using _______ segmentation.

A) Benefits sought
B) Lifestyle
C) Psychographic
D) Usage-based
E) Geographic

Question 77

With reference to the VALS™ framework,_______ are mature,satisfied,comfortable,and reflective.They favor durability,functionality,and value in products.

A) Makers
B) Survivors
C) Believers
D) Achievers
E) Thinkers

Question 78

Which of the following is true about demographic segmentation?

A) Social class is one of the variables used for demographic segmentation
B) Demographic segmentation leads to VALS™ types
C) Age is not a factor used in demographic segmentation
D) Personality is a demographic segmentation variable
E) All of the above are true

Question 79

Social class is a variable used in _______ segmentation.

A) Geographic
B) Behavioral
C) Psychographic
D) Demographic
E) None of the above

Question 80

When a marketer groups customers according to their desire for the crucial value-adding properties of an offering,the marketer is using _________.

A) Psychographic segmentation
B) Social class segmentation
C) Income segmentation
D) Benefit sought segmentation
E) Geodemographic segmentation