Deck 8: Segmenting and Targeting Markets

Question 1

Cannibalization occurs when the sales of an existing product remain the same despite the introduction of a new product.

Answer 1

False

Question 2

Promotion is one of the components that form a marketing mix.

Answer 2

True

Question 3

A market is composed of people or organizations who have the ability to buy the products they desire.

Answer 3

True

Question 4

Product differentiation is a positioning strategy that involves changing consumers' perceptions of a brand in relation to competing brands.

Question 5

A firm's marketing mix is not influenced by the market segmentation process.

Question 6

In a concentrated targeting strategy,a firm:

A)selects one segment of a market for targeting its marketing efforts.
B)adopts a mass-market philosophy for targeting a market.
C)views the market as one big market with no individual segments.
D)chooses to serve two or more well-defined market segments.

Question 7

The purpose of market segmentation is to enable a marketer to tailor marketing mixes to meet the needs of specific segments.

Question 8

Which of the following is true of a concentrated targeting strategy?

A)It allows a firm to serve two or more well-defined market segments simultaneously.
B)It is often adopted by small firms to compete effectively with much larger firms.
C)It follows a mass-market philosophy by viewing the market as one big market without any individual segments.
D)It often results in cannibalization,which occurs when sales of a new product cuts into sales of an existing product.

Question 9

The final step in market segmentation is designing,implementing,and maintaining appropriate marketing mixes.

Question 10

Volten Inc.is an online apparel store.It has separate sections for casual wear,office wear,and party wear.It also divides its products on the basis of price to suit people of various income levels.In this way,it caters to different sections of society.Which of the following bases has the company most likely used for positioning its products?

A)Product class
B)Emotion
C)Attribute
D)Product user

Question 11

Wine Tasters Inc.is a magazine that targets people who appreciate wine and good food.Its major customer base include people who enjoy wine-tasting events and visit different restaurants.Given this information,Wine Tasters most likely relies on which of the following variables to identify its target market?

A)Usage-rate segmentation
B)Demographic segmentation
C)Psychographic segmentation
D)Benefit segmentation

Question 12

Apart from long-term company profits,the major aim of customer relationship management (CRM)is to:

A)implement concentrated targeting strategies.
B)optimize customer satisfaction.
C)reduce personalization of products according to customers' needs.
D)minimize the use of database technology.

Question 13

A firm's marketing mix is intended to bring about a mutually satisfying exchange relationship with a market.

Question 14

Wesley Electronics Inc.manufactures electronic gadgets such as cell phones,computers,and laptops.To let people know about the products offered,the marketing managers of Wesley Electronics Inc.spend a great deal of money on advertising.They employed various methods of advertising such as print,television,and online advertising.Given this information,Wesley Electronics Inc.is in which step of market segmentation?

A)Selecting a market category for study
B)Designing and implementing marketing mixes
C)Profiling and analyzing market segments
D)Selecting the segmentation descriptors for a market

Question 15

An advantage of concentrated marketing is the potential for saving on production and marketing by using an undifferentiated targeting strategy.

Question 16

The purpose of market segmentation is to:

A)change consumer attitudes and beliefs toward a product.
B)divide a market into submarkets of equal size that have equal number of customers in each.
C)group a large number of markets together,enabling a company to serve them simultaneously.
D)enable a marketer to tailor marketing mixes to meet the needs of one or more specific segments.

Question 17

Which of the following is true of satisficers?

A)They are customers that are generally found in the consumer market.
B)They consider numerous suppliers and study all proposals carefully before selecting one.
C)They place orders with the first supplier that fulfills their requirements.
D)They contact both familiar and unfamiliar suppliers when they need to purchase a product.

Question 18

Which of the following best describes a multisegment targeting strategy?

A)It is the effort to ensure that sales of a new product do not cut into sales of an existing product.
B)It refers to choosing to serve two or more well-defined market segments and developing a distinct marketing mix for each.
C)It refers to selecting one segment of a market for targeting marketing efforts and understanding the needs of the members in that segment.
D)It is the division of a market by the amount of product bought or consumed.

Question 19

A market segment is a subgroup of people or organizations having different characteristics that cause them to have distinct product needs.

Question 20

Which of the following is a disadvantage associated with an undifferentiated targeting strategy?

A)It requires a firm to tailor marketing mixes to the preferences of market segments.
B)It often results in product offerings that are unimaginative and sterile.
C)It involves a high risk of cannibalization of products.
D)It is expensive because of high production and marketing costs.

Question 21

__________segmentation refers to segmenting markets by region of a country or the world,market size,market density,or climate.

Question 22

__________are business customers who consider numerous suppliers,solicit bids,and study all proposals carefully before selecting one.

Question 23

Why do marketers who spend significant time promoting mass-marketing efforts need to be aware of customer relationship management (CRM)?

A)One-size-fits-all marketing is no longer relevant because consumers want to be treated as the individuals they are.
B)The time that consumers spend on making purchase decisions have risen in recent times.
C)Mass-media approaches to marketing will rise in importance as technology allows marketers to collect detailed information.
D)The importance of rewarding individual consumers for their loyalty has declined in the recent years.

Question 24

Kirksand Hotels is renowned for its service and individual treatment of its customers.All service staff and employees are encouraged to listen carefully to customers' wants and needs.For instance,if a traveler ordered soft pillows,wanted only martinis in his mini bar,and needed access to a fax machine,he would find all of these amenities in his room when he arrived.In this scenario,on which of the following trends has Kirksand Hotels based its customer relationship management (CRM)?

A)Personalization
B)Time savings
C)Loyalty
D)Technology

Question 25

How do marketers use customer relationship management (CRM)as a targeting tool?

Question 26

Tennot Designs Inc.manufactures and sells clothes and shoes to people who are over 6'6" tall - a rather small target market.Given this information,Tennot Designs Inc.uses a(n)__________targeting strategy.

Question 27

__________is a means of displaying or graphing,in two or more dimensions,the location of products,brands,or groups of products in customers' minds.

Question 28

Which of the following is a similarity between a stock market and a labor market?

A)Both adopt a barter system to enable the exchange of products.
B)Both have people who are unwilling to spend a large sum of money for products or services.
C)Both have people with the necessary resources to buy desired products or services.
D)Both deal with high-end,expensive products.

Question 29

Online Web sites that greet their users by name and offer information that users are interested in portray the customer relationship management (CRM)trend of__________.

Question 30

Candy's Chocolates Inc.is a confectionary company that manufactures only one product.Unlike its competitors,the firm does not have its target customer base as children.Instead,it promotes its product using the same strategy across consumers of all age groups.Given this information,Candy's Chocolates Inc.has adopted a(n)__________strategy.

Question 31

When Prisly Inc.introduced a liquid detergent in the market,it noticed that the sales of its detergent powder significantly declined.Prisly Inc.'s loyal customers who previously purchased detergent powder switched to liquid detergent.As a result,Prisly Inc.was forced to reduce production of its detergent powder.This scenario exemplifies__________.

Question 32

Nalpas Inc. ,an apparel company,manufactures clothes for men,women,and children.It further divides its core customers on the basis of demographic variables such as income,ethnic background,and family life cycle.These divisions are known as__________.

Question 33

The customer relationship management (CRM)technique that focuses on thanking customers for their business to a company exemplifies the trend of__________.

Question 34

Nalpas Inc. ,an apparel company,manufactures clothes for men,women,and children.It further divides its core customers on the basis of demographic variables such as income,ethnic background,and family life cycle.These divisions are known as _____.​

A)positioning bases
B)​market segments
C)​perceptual maps
D)market positions

Question 35

Brasco Motor Company produces a wide range of vehicles such as passenger cars,commercial trucks,specialty vehicles,performance vehicles,and race cars.Each type of car has a separate and distinct customer base.Given this information,Brasco Motor Company has divided its customer base by using the strategy of__________.

Question 36

Sheera Jewelry sends birthday greeting cards to each of its customers as a token of appreciation for shopping at its store.This exemplifies the customer relationship management (CRM)trend of__________.

Question 37

How do organizations use a product differentiation strategy to distinguish their products from competitors?

Question 38

How is market segmentation useful to marketers?

Question 39

Write a note on the final step of the market segmentation process.

Question 40

A multisegment targeting strategy differs from a concentrated targeting strategy in that it:

A)selects one segment of a market with a goal to satisfy its members.
B)faces a high potential cost from cannibalization of products.
C)develops and maintains a common marketing mix for its products.
D)results in sterile,unimaginative product offerings.

Question 41

​Sheera Jewelry sends birthday greeting cards to each of its customers as a token of appreciation for shopping at its store.This exemplifies the customer relationship management (CRM)trend of _____.

A)loyalty
B)​technology
C)​time savings
D)personalization

Question 42

_____ segmentation refers to segmenting markets by region of a country or the world,market size,market density,or climate.​

A)Geographic
B)​Benefit 
C)​Demographic
D)Usage-rate

Question 43

Candy's Chocolates Inc.is a confectionary company that manufactures only one product.Unlike its competitors,the firm does not have its target customer base as children.Instead,it promotes its product using the same strategy across consumers of all age groups.Given this information,Candy's Chocolates Inc.has adopted a(n)_____ strategy.​

A)multisegment targeting
B)​niche targeting
C)​undifferentiated targeting
D)concentrated targeting

Question 44

_____ is a means of displaying or graphing,in two or more dimensions,the location of products,brands,or groups of products in customers' minds.​

A)Market segmentation
B)​Product positioning
C)​Perceptual mapping
D)Product tracing

Question 45

Online Web sites that greet their users by name and offer information that users are interested in portray the customer relationship management (CRM)trend of _____.​

A)gratitude
B)​time savings
C)​loyalty
D)technology

Question 46

When Prisly Inc.introduced a liquid detergent in the market,it noticed that the sales of its detergent powder significantly declined.Prisly Inc.'s loyal customers who previously purchased detergent powder switched to liquid detergent.As a result,Prisly Inc.was forced to reduce production of its detergent powder.This scenario exemplifies _____.​

A)segmentation
B)​diversification
C)​differentiation
D)cannibalization

Question 47

_____ are business customers who consider numerous suppliers,solicit bids,and study all proposals carefully before selecting one.​

A)Laggards
B)​Innovators
C)​Optimizers
D)Satisficers

Question 48

Tennot Designs Inc.manufactures and sells clothes and shoes to people who are over 6'6" tall - a rather small target market.Given this information,Tennot Designs Inc.uses a(n)_____ targeting strategy.​

A)multisegment 
B)​undifferentiated
C)​concentrated
D)one-to-one

Question 49

The customer relationship management (CRM)technique that focuses on thanking customers for their business to a company exemplifies the trend of _____.​

A)time savings
B)​personalization
C)​technology
D)loyalty

Question 50

​Brasco Motor Company produces a wide range of vehicles such as passenger cars,commercial trucks,specialty vehicles,performance vehicles,and race cars.Each type of car has a separate and distinct customer base.Given this information,Brasco Motor Company has divided its customer base by using the strategy of _____.

A)perceptual mapping
B)​positioning
C)​cannibalization
D)market segmentation