Deck 9: Market Segmentation, Targeting, and Positioning

Question 1

All of the following are attributes of the Zappos.com market segment,except:

A)selection
B)convenience
C)service
D)price

Answer 1

D

Question 2

PepsiCo sells a bottled water product to those that are health conscious.They also sell Pepsi to those that need a 'sugar rush' and 'caffeine wake-up' to get them through the afternoon.What strategy is PepsiCo using?

A)Dual distribution.
B)Market differentiation.
C)Product differentiation.
D)Market penetration.

Answer 2

C

Question 3

Zappos.com currently targets which market segment?

A)those seeking high personal touch services
B)those seeking the convenience of in-home purchases
C)those seeking group purchase discounts
D)those seeking customized shoe products

Answer 3

A

Question 4

When Procter & Gamble introduced Crest toothpaste,the first fluoride toothpaste,it was intended for use by children and was therefore given a child-appealing bubble gum flavour.Sometime later,the same basic formula was given a fresh,minty flavour to appeal to adults.What is this marketing strategy called?

A)product sampling
B)product extrapolation
C)product differentiation
D)usage segmentation

Question 5

Alka-Seltzer was made originally as a hangover remedy that cured the headache and settled the stomach.Today you can buy Original Alka-Seltzer,Extra Strength Alka-Seltzer,Alka-Seltzer Morning Relief (for morning headaches and fatigue,and Alka-Seltzer Heartburn Relief).Each Alka-Seltzer product is targeted to a slightly different market segment.The maker of Alka-Seltzer is using:

A)product differentiation.
B)market sectioning.
C)product targeting.
D)product segmentation.

Question 6

Henry Ford developed his Model T,a car he felt would satisfy the needs of everyone.Ford said,"They can have it in any colour,as long as it's black." His strategy was simple: focus in the economies of scale created by mass production.Ford's strategy was also known as a:

A)segmented strategy.
B)mass marketing strategy.
C)niche marketing strategy.
D)focused marketing strategy.

Question 7

What was the core reason why Zappos.com stopped shipping to Canada?

A)logistical issues
B)Canadian regulations
C)inability to offer WOW customer service
D)none, Zappos.com still ships to Canada

Question 8

Market segmentation is only a means to an end.In economist's terms,it relates supply (_____)to demand (the customer needs).

A)self-regulatory industry standards
B)government regulations
C)the organization's actions
D)strategic objectives

Question 9

KFC has modified its product to satisfy different market segments.In Holland,the mashed potatoes are replaced with a potato-and-onion croquette,and in Thailand,a customer gets fresh rice with soy or sweet chili sauce with his or her chicken.KFC uses:

A)product positioning.
B)market sectioning.
C)market segmentation.
D)product differentiation.

Question 10

Whirlpool aggregates prospective customers who are all interested in a low-cost washing machine and respond positively to mail-out marketing material.This process is referred to as:

A)Diversification
B)Divestment
C)Market segmentation
D)Market augmentation

Question 11

When Comfy Covers Ltd.,a BC fiber pillow manufacturer offers firm pillows for side sleepers,medium pillows for back sleepers,and soft pillows for stomach sleepers,what is this marketing strategy called?

A)product sampling
B)product extrapolation
C)product differentiation
D)usage segmentation

Question 12

Some Timex wristwatches can be purchased for less than $30; some Rolex wristwatches carry a price tag of several thousand dollars.In general,consumers view Timex watches as being dependable,relatively accurate,and inexpensive.The Rolex brand tends to be perceived as an expensive status symbol.Timex watches can be purchased in drug stores,discount stores,and department stores in all sizes of communities.Rolex watches are distributed more selectively,and are often available only in fine jewellery stores or specialty shops.By using distinctly different pricing and distribution strategies,the marketers of Timex and Rolex watches have attempted to:

A)compete for the same segment.
B)develop similar products.
C)use a product differentiation strategy.
D)build customer loyalty through direct competition.

Question 13

One of the key differentiators that separates Zappos.com from other online shoe retailers is their focus on ______.

A)customer service
B)high-end brands
C)cheap discounted brands
D)only shoes

Question 14

At a Hallmark store you can find several different brands of greeting cards,including Fresh Ink,Nature's Sketchbook,Shoebox,Maxine,Mahogany,and Tree of Life cards - all made by Hallmark for sale in its stores.Hallmark uses a _____ strategy to reach several different market segments.

A)product differentiation
B)product extrapolation
C)behavioural segmentation
D)usage segmentation

Question 15

The process of segmenting a market and selecting specific segments as targets is the link between _____ and the organization's marketing program.

A)self-regulatory industry standards
B)government regulations
C)top-level management
D)various buyers' needs

Question 16

PepsiCo is assessing whether to launch a brand new type of antioxidant water product.The marketing department has described a selection of the population as: "relatively homogeneous collections of prospective buyers." The marketing department is describing what?

A)market segments
B)demographic clusters
C)organizational buyers
D)ultimate consumers

Question 17

The process of segmenting a market and selecting specific segments as targets is the link between various buyers' needs and:

A)self-regulatory industry standards.
B)government regulations.
C)the organization's marketing program.
D)top-level management.

Question 18

KFC is a popular fast food restaurant in North America.It opened its 500^th restaurant in China in 2001 and is more popular than McDonald's in that country.One of the reasons is that when the company entered the Chinese market,it recruited its managers from Taiwan and the Chinese communities in the U.S.and Canada.This has been useful in coping with local Chinese governments and developing a distinctly different Chinese strategy,which includes Chicky,a friendly chicken character that has a strong appeal for children.To succeed in China,KFC used:

A)product positioning.
B)market sectioning.
C)product differentiation.
D)market segmentation.

Question 19

Market segmentation involves linking ______ to an organization's ________.

A)buyers' needs; marketing program
B)product benefits; capabilities
C)prospective buyers; marketing mix
D)market information; customer databases

Question 20

To be identified as a market segment,its members must:

A)represent a large share of the entire market and have critical buying power.
B)have common needs and respond similarly to marketing actions.
C)have different needs and have potential for future growth.
D)have different needs and respond similarly to market actions.

Question 21

A new health food store is being built downtown Toronto.To build a solid customer base,they are asking consumers to discuss online important issues about healthy living and health food.Which segment will be likely purchasers of products from the new store?

A)Online/Real time
B)Suits & Strategy
C)Chat, Chill, and Connect
D)Samplers & Lurkers

Question 22

Which of the following is an example of a single product with multiple market segments?

A)Reebok shoes makes tennis shoes, running shoes, walking shoes, and Weeboks.
B)Reach Toothbrush makes several versions of its toothbrush, which are available in a soft, medium, and hard bristle and a short or normal length head.
C)Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.
D)Kellogg's and Post both make bran cereals with raisins.

Question 23

When compared to a multiple-products-multiple-market segments strategy,a one-product-and-multiple-market-segment strategy:

A)is a much more effective means of meeting consumers' individual needs.
B)is much more profitable.
C)creates greater economies of scale (cost savings) in manufacturing costs.
D)is a more effective way of meeting organizational objectives.

Question 24

Kellogg's different types of cereals,each targeted at a different type of user,are an example of multiple products aimed at multiple markets.Manufacturing these different cereals is clearly more expensive than producing one,but seems worthwhile if it serves customers' needs better,doesn't reduce quality or increase price,and:

A)conforms to all union regulations.
B)reduces the number of employees required.
C)decreases the cost of the physical plant.
D)adds to the manufacturer's sales revenues and profits.

Question 25

Individual movies,magazines,and books are frequently directed to two or more distinct market segments.This is an example of:

A)multiple products and multiple market segments.
B)one product and multiple market segments.
C)mass customization.
D)mass marketing.

Question 26

According to Zinc Research,all of the below are segments of Canadian social media users,except:

A)Online/Real time
B)Suits & Strategy
C)Chat, Chill, and Connect
D)Samplers & Creepers

Question 27

Which social media segment is likely to purchase Herbal Essences Mango Mania hair conditioner?

A)Online/Real time
B)Suits & Strategy
C)Chat, Chill, Connect
D)Samplers & Creepers

Question 28

Firms offer different variations of the same basic product or service to both,high-end and low-end segments.Gap's Banana Republic chain sells blue jeans for $58,whereas its Old Navy stores sell a slightly different version for $22.This is an example of:

A)mass customization.
B)two-tier marketing strategy.
C)one product and multiple market segments.
D)price discrimination.

Question 29

One advantage of a market-product grid is that it can be used to:

A)make optimal decisions under conditions of uncertainty.
B)screen many new product ideas in order to select the one with the best long-run market potential.
C)relate likely sales of products to prospective market segments.
D)select representative samples of consumers for marketing research studies.

Question 30

Which two aspects does a market-product grid relate?

A)Estimated expenses for products sold to various market segments.
B)Total anticipated revenue for each product to market segments.
C)Total anticipated profit for each product to segments.
D)The segments of a market to products offered or potential marketing actions by the firm.

Question 31

A business firm segments its markets when this strategy increases its sales revenue,profit,and ROI.When its increases in expenses more than offset the potentially increased revenues from segmentation,it should:

A)terminate as many employees as possible to save money.
B)reduce production costs, which will lower quality.
C)act as its own distributor.
D)not attempt to segment its market any further.

Question 32

Market segmentation is only a means to an end.In economist's terms,market segmentation relates supply (the organization's actions)to demand (_____).

A)tactical goals
B)government regulations
C)customer needs
D)strategic objectives

Question 33

Heinz Ketchup sells their traditional 'Red Ketchup' product in three market segments.One of the advantages of this strategy is _____________ is avoided.

A)the extra cost of developing and producing additional versions of the product
B)creating a service gap
C)indirect distribution and logistics problems
D)strategic planning

Question 34

The segment 'social media followers' are more likely to purchase which product?

A)"No Name" Tomato Sauce
B)"Basic Tomato" Sauce
C)"President's Choice" Tomato Sauce
D)"Entry Brand" Tomato Sauce

Question 35

What is the most likely way for consumers to benefit because a firm uses a strategy of one product for multiple market segments?

A)increased satisfaction of consumer wants and needs
B)increased number of choices
C)lower retail prices because of lower production costs
D)improved service

Question 36

After launching a brand new,high-end road bicycle to a specific segment interested in road races and triathlons,the company needs to determine whether they properly segmented their market.Which of the below results is likely indicative of success?

A)increased sales and profitability.
B)increase in customer inquiries, but no purchases.
C)increase in competition.
D)increased confusion from prospective buyers.

Question 37

At a board meeting,the Chief Marketing Officer for Procter & Gamble provides a graphical figure that relates market segments to products offered.This graphical figure is likely a(n):

A)growth-share matrix
B)payoff table
C)market-product grid
D)product differentiation table

Question 38

Small athletic shoe manufacturers such as Vans and New Balance have targeted niche markets and made shoes designed to satisfy needs of different customers.This strategy is an example of:

A)mass customization.
B)MSA and NAICS.
C)market segmentation.
D)synergy.

Question 39

Marketers use market segmentation to each of the following EXCEPT:

A)to link market needs to an organization's marketing program.
B)to relate supply to demand in economic terms.
C)to develop specific marketing actions related to the 4 Ps.
D)exploit economies of scale in order to focus on mass production.

Question 40

Verve creates high-end personalized iPhone cases that use diamonds,gold,and platinum that appeal to very wealthy individuals.Which is their likely segment strategy?

A)Economies of scope.
B)Economies of scale.
C)Mass marketing.
D)Mass customization.

Question 41

The best segmentation approach is the one that:

A)maximizes the opportunity for future profit and ROI
B)recognizes different needs of buyers among different segments.
C)recognizes similarities of needs of potential buyers within a segment.
D)is simplest and least costly in assigning potential buyers to segments.

Question 42

When Future Vacations allows customers to personalize their next vacation and customize their trip to whatever their needs are,this would best be described as:

A)ultra-customization
B)product innovation
C)product differentiation
D)mass personalization

Question 43

TB Figure: 1
Cell "B" in TB Figure 1 represents which stage of the market segmentation process?

A)Link needs to actions
B)Identify market needs
C)Establish a marketing protocol
D)Execute marketing program actions

Question 44

Mars Candies decides to extend the level of customization of their M&Ms.When you send in a salvia swab,the company will custom tailor the balance of salty/sweet/savory of the M&M to best appeal to your taste buds and ship you a package.This strategy is known as:

A)ultra-customization
B)mass customization
C)ultra-personalization
D)deliciousness

Question 45

Yahoo's shopping portal recently began to offer people who visited the site the ability to buy songs from Imix's collection of more than 200,000 tracks from record labels that include BMG and Sony Music Group.Customers can choose up to 70 minutes of music for around $1 per song.Then they can choose an art design and a title for each CD and have a disc shipped for $2.50.This is an example of:

A)mass customization.
B)how the 80/20 rule is implemented.
C)market augmentation.
D)market melding.

Question 46

The Sporting News Baseball Yearbook uses 16 different covers featuring a baseball star from each of its regions in the United States.Four samples are shown in TB Figure 2.This is a great example of a: TB Figure: 2

A)interest-based segmentation.
B)segmenting organizational markets.
C)one product and multiple market segments.
D)multiple products and multiple market segments.

Question 47

By Terry is a company that caters to the very affluent consumer who desires complete personalization.This Paris-based boutique will use your DNA and planetary alignment to customize your very own lipstick.The lipstick is designed and created solely for you.But it will cost you US$1,200.This is an extreme example of:

A)product sampling
B)product extrapolation
C)ultra customization
D)usage segmentation

Question 48

Paris Miki enables customers to help design their own eyeglasses,using a system that eliminates the need to try on countless pairs of eyeglasses to find the right one.This is an example of:

A)mass customization.
B)synergy.
C)target marketing.
D)how the 80/20 rule is implemente

Question 49

Which step in the segmenting and targeting market process would 'send five tweets per day regarding in-store promotions' fall under?

A)create product groupings
B)develop a market-product grid
C)estimate size of market
D)take marketing actions to reach that target market

Question 50

A new local coffee shop has noticed that in town there is a Tim Hortons,McDonald's,and Starbucks all competing for individual's daily coffee purchase.They conduct a survey of area residents who enter each one of these stores and learn that 85% desire an organic,fair-trade option.As the local coffee shop is just initiating the segmentation and targeting process,what has the local coffee shop just completed?

A)Recognized a need.
B)Formed prospective buyers into groups.
C)Created product groupings.
D)Estimated size of the overall market.

Question 51

Model E is a new type of car manufacturer that relies on the Internet to build new car designs from prototypes to marketable vehicles much faster than ever before possible."Think of Model E as the Dell of the auto industry,designing products based on what consumers truly want and leveraging best-in-class components and micro-factory approaches for rapid design,launch,and direct delivery," said William Santana Li,president and CEO of Model

A)build-to-order (BTO).
B)a one-product-one-market-segment strategy.
C)repositioning.
D)perceptual mapping.
E)From this quote, you should recognize that Model E relies on:

Question 52

TB Figure: 1
Cell "C" in TB Figure 1 represents which stage of the market segmentation process?

A)Link needs to actions
B)Identify market needs
C)Establish a marketing protocol
D)Execute marketing program actions

Question 53

Between two and three percent of the population have some degree of allergic reaction,usually mild,to preservatives used in salad bars.Restaurants might consider people with these "allergies" as a separate segment.So these restaurants will need to have their regular salad bar plus a special salad bar for the allergies segment.This multiple product and multiple market segment strategy would have the greatest difficulty meeting which of the following criteria used to form market segments?

A)instrumentality of sufficient marketing objectives to ignore that segment
B)different needs of buyers among different segments
C)similarity of needs of potential buyers within a segment
D)potential for increased profit and ROI

Question 54

Moto X,a smartphone offered by Google and Motorola allows customers to visit its website and design the color scheme,case,and engravings according to their personal desires.This website would particularly appeal to people who want a unique product that separates them from their peers and makes them stand out in the crowd.This would be descriptive of which type of market segmentation variable?

A)psychographic
B)demographic
C)socioeconomic
D)usage

Question 55

Which social media segment is likely to be interested in purchasing the following financial service offered by a bank through an online banner-ad marketing campaign: 'No-Risk,Bonds Offering Guaranteed 5% Returns Per Annum'?

A)producers of content
B)followers of content
C)non-users
D)risk-conscious users

Question 56

Moto X,a smartphone offered by Google and Motorola allows users to personalize the colors,case,and engravings online before purchasing.This is an example of which strategy?

A)product sampling
B)product extrapolation
C)mass customization
D)usage segmentation

Question 57

Custom Foot runs six retail locations.At first glance none look any different from your basic old-fashioned shoe store,but the only shoes on hand are display models.There's no inventory for sale,and customers go home empty-handed - at least initially.Customers browse the store,mixing and matching design components such as style,colour,and leather type.About 100 display shoes provide style guidelines.Once you choose a shoe style,you select materials,colours,textures and a style of sole.The retailer sells 10,000 variations in women's shoes and 7,800 in men's.Custom Foot guarantees your shoes will be ready within three weeks.This is an example of:

A)mass customization.
B)synergy.
C)one product and multiple market segments.
D)price discrimination.

Question 58

TB Figure: 1
Cell "A" in TB Figure 1 represents which stage of the market segmentation process?

A)Link needs to actions
B)Identify market needs
C)Establish a marketing protocol
D)Execute marketing program actions

Question 59

Johnson Gloves is a company that caters to the very affluent consumer who desires complete personalization.This Madrid-based boutique will use your fingerprints to customize your very own pair of driving gloves.The gloves are designed and created solely for you.This is an example of:

A)ultra-customization
B)ultra-personalization
C)mass-personalization
D)mass-appeal

Question 60

Many Canadian magazines produce separate editions usually targeting unique geographic and demographic segments using a special mix of editorial content and advertisements.Maclean's produces 15 different editions,and Reader's Digest produces nine.This is an example of:

A)mass customization.
B)multiple products in multiple market segments.
C)one product and multiple market segments.
D)price discrimination.

Question 61

Modern Maturity magazine is a publication that is sent to all AARP members,who by organization definition have to be at least 50 years old to join.The market segment for Modern Maturity magazine was defined by:

A)usage rates.
B)usage patterns.
C)buyer situations.
D)demographic characteristics.

Question 62

All of the following are the main dimensions used to segment Canadian consumer segments,except:

A)geographic
B)behavioural
C)demographic
D)ethnographic

Question 63

When the Benihana Frozen Foods Corporation began to offer its Famous Restaurant Classics meals in single serving packages,it was relying on a _____ segmentation variable to define a market based on serving size.

A)regional
B)demographic
C)lifestyle
D)geographic

Question 64

The Province of Ontario Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state.Since the apparent target of these is traditional families,it appears the Board of Tourism has segmented the market using _____ variables.

A)regional
B)demographic
C)socioeconomic
D)geographic

Question 65

A local sports store is planning on using only demographic variables to segment potential customers who will purchase from the store.This will dictate the diversity of products the store will carry.Which research report is most useful to this sports store?

A)"Sports Activities and Purchasing Habits, 2014 Edition"
B)"Gender Representation in Major Urban Centres in Canada"
C)"Population Breakdown in Major Urban Centres in Canada"
D)"Fast Rising Sports Segment and Market Leading Products, 2014 Edition"

Question 66

When Mikki asked her father for his advice about marketing software for the disabled,he told her,"Reaching a segment requires a simple but effective marketing action.If no such action exists,don't segment." Mikki's father is expressing concern about the:

A)feasibility of marketing actions to reach the segment.
B)different needs of buyers among different segments.
C)similarity of needs of potential buyers within a segment.
D)simplicity and cost of assigning potential buyers to segments.

Question 67

Which of the following is NOT a criterion used in forming market segments?

A)potential for increased profit and ROI
B)similarity of needs of potential buyers within a segment
C)difference of needs of buyers between segments
D)cost of reaching the segment

Question 68

Understanding customer needs is the ____ step in market segmentation.

A)first
B)second
C)third
D)fourth

Question 69

Which of the following statements demonstrates the formation of a segment based on family size?

A)Campbell's makes spicier nacho cheese sauce for its distributors in Texas than it does in Maine.
B)GE built a downsized microwave oven to hang under kitchen cabinets.
C)Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners.
D)A fast food hamburger restaurant is open for breakfast on Sunday mornings but not on weekdays.

Question 70

At a Hallmark store you can find several different product lines of greeting cards,including Fresh Ink,Nature's Sketchbook,Shoebox,Maxine,Mahogany,and Tree of Life cards - all made by Hallmark for sale in its stores and intended to appeal to different target markets.The Mahogany line is designed to appeal to African-Americans.This is an example of _____ segmentation.

A)regional
B)demographic
C)lifestyle
D)geographic

Question 71

Which of the following is NOT a criterion used in forming segments?

A)potential for increased profit and ROI
B)similarity of needs of potential buyers within a segment
C)competitive position
D)feasibility of marketing action to reach a segment

Question 72

A different market segment usually requires a different marketing action that in turn means greater costs.If increased revenues do not offset extra costs,a marketer should _____ to reduce the number of marketing actions.

A)increase the advertising budget
B)try direct mail instead of broadcast advertising
C)cancel current activities
D)combine segments

Question 73

A local coffee shop places significant value in using consumer demographic variables in segmenting their local market.Using the latest Canada Census covering topics of: education,age,and income will be important to use in which marketing step?

A)One.
B)Two.
C)Three.
D)Four.

Question 74

A marketing manager must be able to put a market segmentation plan into effect.This means being able to recognize the characteristics of potential buyers and _____ without encountering excessive costs.

A)maximize internal considerations
B)diversify their interests
C)optimize their different needs
D)assign them to a segment

Question 75

A new car dealer decides to open up a dealership in a region that has higher than national average income.Which characteristic is the new car dealer using to segment their market?

A)psychographic
B)demographic
C)customer
D)local

Question 76

When a telemarketer calls to sell a consumer vinyl siding for his or her home,the first question the telemarketer asks is if the person answering the phone is a homeowner.Whether the prospect is a homeowner indicates the use of which type of consumer segmentation variable?

A)usage
B)behaviour
C)demographic
D)buying situation

Question 77

Ford Motor Company uses the slogan "No Boundaries" for its ad campaigns for Ford SUVs.It invites people who want ultimate people-carrying and gear-storing capabilities "to be outfitted with the most far-reaching sports utility vehicle on earth." If the SUV campaign were simply geared to families with young children,it would be using _____ segmentation,but because the campaign is trying to appeal to people who do not like the restrictions of a sedan,who want to be able to pack up and leave at a moment's notice,and who enjoy freedom and independence,it is relying on _____ segmentation.

A)socioeconomic; demographic
B)psychographic; lifestyle
C)demographic; usage rate
D)demographic; psychographic

Question 78

Universal Concerts is planning on bringing a series of concerts to Canada next year.In order for its concerts to be a success,it needs to know that Western Canadians like country music and that a country music event in Eastern Canada is much more likely to have empty seats.This consumer behaviour requires Universal Concerts to segment its Canadian market according to:

A)geographic and psychographic characteristics.
B)demographic characteristics.
C)lifestyle and demographic characteristics.
D)usage rate and demographic characteristics.

Question 79

Which of the following statements demonstrates geographic segmentation?

A)In China KFC sells a much spicier chicken in its restaurants that are farther away from the coastal areas.
B)GE built a downsized microwave oven to hang under kitchen cabinets.
C)Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners.
D)A fast food hamburger restaurant is open for breakfast on Sunday mornings but not on weekdays.

Question 80

At a Hallmark store you can find several different product lines of greeting cards,including Fresh Ink,Nature's Sketchbook,Shoebox,Maxine,Mahogany,and Tree of Life cards - all cards made by Hallmark for sale in its stores and intended to appeal to different target markets.The Shoebox line sells for $0.99,which is a significantly lower price than some of the other Hallmark brands.The Shoebox line is designed to appeal to people on limited budgets.This is an example of _____ segmentation.

A)psychographic
B)behaviour
C)buying situation
D)demographic