Deck 4: Focusing Marketing Strategy With Segmentation and Positioning

Question 1

A generic market description includes customer needs and product-type terms.

Answer 1

False

Question 2

A generic market description looks at market broadly and from a customer's viewpoint.

Answer 2

True

Question 3

A market is a group of competitors selling similar products.

Answer 3

False

Question 4

Ideally, segmenters should start with the idea that each person is "one of a kind" and can be described by a special set of dimensions that may be used to aggregate similar customers together.

Question 5

The correct number of submarkets in a broad product-market is usually obvious, so the likelihood of managerial error is small.

Question 6

A "generic market" is a market in which sellers offer substitute products which are so similar that customers see them as "all the same."

Question 7

A "good" market segment should be composed of people who are as homogeneous as possible with respect to their likely responses to marketing mix variables.

Question 8

Market segmentation is a two-step process that involves naming broad product-markets and segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.

Question 9

The definition of a product-market includes a product type while the definition of a generic market does not include a product type.

Question 10

Product type describes the goods and/or services that customers want.

Question 11

Marketing-oriented managers see segmenting as a process of aggregating people with similar needs into a group.

Question 12

Market segmentation says that target marketers should develop one good marketing mix aimed at a fairly large market.

Question 13

A market is a group of two or more sellers who offer substitute ways of satisfying customer needs.

Question 14

A product-market is a market with broadly similar needs-and sellers offering various, often diverse, ways of satisfying those needs.

Question 15

The main difference between a "product-market" and a "generic market" is whether customer needs are similar or different.

Question 16

Effective market segmentation is a two-step process that starts with naming broad product-markets and then goes on to segmenting these broad product-markets into more homogeneous submarkets.

Question 17

Using one or two demographic dimensions to describe market segments usually does not provide enough detail for planning a marketing strategy.

Question 18

Marketing-oriented managers think of segmenting as a disaggregating process.

Question 19

One of the difficult things about segmenting is that not every customer will neatly fit into some market segment.

Question 20

A firm's "relevant market for finding opportunities" should be bigger than the present product-market but not so large that it couldn't expand and still be an important competitor.

Question 21

A manager who aggregates all potential customers into a single product-market segment is likely to find that the segment is not homogeneous.

Question 22

A product-market segment is "operational" if it is big enough to be profitable to the firm.

Question 23

The combined target market approach involves segmenting the market and choosing two or more segments, then treating each as a separate target market needing a different marketing mix.

Question 24

If a product-market segment is "homogeneous within," it is called a "substantial" target market.

Question 25

A segmenter is more likely than a combiner to really satisfy a target market and build such a close relationship with customers that it faces no real competition.

Question 26

With the "multiple target market approach" the marketer combines two or more homogeneous submarkets into one larger target market as a basis for one strategy.

Question 27

A personality trait like moodiness is a good example of an "operational" segmenting dimension.

Question 28

The more heterogeneous a firm's target market becomes, the more likely the firm will see competition from an innovative segmenter.

Question 29

When segmenting markets, one should look at geographic location and demographic characteristics as well as customers' desire and willingness to compare and shop, but behavioral needs aren't important for this purpose.

Question 30

Planning Place and Promotion elements of a marketing mix is especially difficult if the dimensions of a product-market are not operational.

Question 31

"Good" market segments should be heterogeneous within and homogeneous between.

Question 32

Cost considerations usually favor more aggregating and larger market segments, but smaller segments may be required to satisfy needs more exactly.

Question 33

Dimensions that should be looked at when segmenting consumer markets are: geographic location and other demographic characteristics, behavioral needs, urgency to get needs satisfied, and willingness to compare and shop.

Question 34

"Good" market segments should be homogeneous (similar) within, heterogeneous (different) between, substantial, and operational.

Question 35

Segmenting a broad product-market usually requires using several segmenting dimensions at the same time.

Question 36

A profit-oriented firm will usually want to continue aggregating potential customers into larger submarkets until every consumer fits neatly into some segment.

Question 37

Making a very specific marketing mix for a particular group is always less profitable than a more general marketing mix that appeals to a larger segment.

Question 38

A "substantial" market segment is one which is big enough to be profitable.

Question 39

Saying that a market segment is "substantial" means that it contains customers from a variety of demographic variables.

Question 40

"Homogeneous within" means that the customers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions.

Question 41

International marketing typically requires less segmenting than domestic markets.

Question 42

A marketing manager who is able to use qualifying dimensions in forming market segments will not need to worry about determining dimensions.

Question 43

In the seven-step approach to market segmentation, it is best to identify the relevant needs of all potential customers BEFORE trying to form homogeneous submarkets.

Question 44

The seven-step approach to market segmentation uses a S.W.O.T. analysis.

Question 45

The example for the seven-step approach (discussed in the text) uses small motels around a large city as its broad product-market.

Question 46

In the seven-step approach, qualifying dimensions are identified in Step 3 but determining dimensions are not identified until Step 4.

Question 47

Step 2 in the 7-step approach to market segmentation asks you to identify all the potential customers' needs for the broad product-market you named in Step 1.

Question 48

Market segmentation applies only to consumer goods and services; it cannot be applied to business products.

Question 49

The first step in segmenting international markets is to group countries that are close to each other into "common markets."

Question 50

In the seven-step approach, the basic comfort needs (heating and cooling, a good bed, a clean bathroom) and other needs like a telephone and safety/security are the determining needs.

Question 51

The seven-step approach to segmenting product-markets (discussed in the text) helps expand from a narrow set of opportunities to a broader target market and marketing strategy.

Question 52

The seven-step approach to segmenting product-markets (discussed in the text) helps narrow down from a broad set of opportunities to a specific target market and marketing strategy.

Question 53

The example for the seven-step approach (discussed in the text) uses recreational vehicles in the U.S. as its broad product-market.

Question 54

The example for the seven-step approach (discussed in the text) uses apartment buildings in cities with large student populations as its broad product-market.

Question 55

In the seven-step approach to market segmentation, it is best to narrow down to smaller product-markets BEFORE identifying the needs of all potential customers.

Question 56

Qualifying dimensions are those that actually affect the customer's purchase of a specific brand in a product-market.

Question 57

A firm involved in international marketing should pay even more attention to segmenting than a firm that sells only in the United States.

Question 58

The qualifying dimensions help identify the "core benefits" that must be offered to everyone in a product-market.

Question 59

A determining dimension for segmenting markets actually affects the purchase of a specific brand in a product-market.

Question 60

When using the seven-step approach for segmenting product-markets, one should brainstorm potential customer needs after defining the broad product-market.

Question 61

In the seven-step approach, the basic comfort needs (heating and cooling, a good bed, a clean bathroom) and other needs like a telephone and safety/security are the qualifying needs, not the determining needs.

Question 62

In the seven-step approach, submarkets are nicknamed based on the qualifying dimensions and a description of the customer types.

Question 63

The seven-step approach to market segmentation does not estimate the size of each submarket until Step 7.

Question 64

Clustering techniques can be used in segmenting to help find similar patterns within sets of data-to identify homogeneous groups of people.

Question 65

In the seven-step approach, submarkets are nicknamed based on the determining dimensions and a description of the customer types.

Question 66

Clustering is a technique that divides a large group of people into smaller groups, so that each small group is as diverse as the large group from which it was formed.

Question 67

CRM is a variation of the positioning approach.

Question 68

In the example for the 7-step approach (used in the text), it's useful to consider what people in each segment want, but it's useless to consider what they don't want because it will have no bearing on whether that segment is profitable for the firm.

Question 69

In the example for the 7-step approach (discussed in the text), the "resort seekers" and the "executives" should be combined because both groups have high incomes.

Question 70

The seven-step approach encourages the use of a market grid (a rectangle with boxes inside) to represent smaller, more homogeneous submarkets.

Question 71

In the example for the 7-step approach (discussed in the text), the "long-stay guests" and the "event-centered visitors" should be combined because both groups will likely be at the motel for an extended period of time.

Question 72

A firm is most likely to rely on customer relationship management (CRM) approaches when it does not have a database of information on individual customers.

Question 73

Computer-aided segmenting approaches eliminate the need for managerial judgment and intuition in selecting segmenting dimensions.

Question 74

The seven-step approach to market segmentation does not consider whether a particular submarket can be profitable to the firm until Step 7.

Question 75

As shown in the discussion of the 7-step approach, determining dimensions may change over time.

Question 76

The seven-step approach to market segmentation begins to consider whether a particular group can be profitable to the firm in Step 1-and that is a major consideration throughout all seven steps.

Question 77

Clustering techniques try to find similar patterns within sets of data.

Question 78

In the example for the 7-step approach (used in the text), it's important to consider what people in each segment do NOT want as well as what they do want.

Question 79

As shown in the discussion of the 7-step approach, determining dimensions rarely change.

Question 80

In the example for the 7-step approach (discussed in the text), an important determining need for the "resort seekers" is adult fun while the "family vacationers" want family fun.