Deck 8: Segmentation, Targeting, and Positioning

Question 1

Automobile manufacturers could build cars specially designed for very tall people,but it is likely that this segment is not substantial.

Answer 1

True

Question 2

A complex product that is best described in writing will be difficult to explain to consumers who are unable to read.For this reason,a segment in which many consumers could not read would be considered unattractive because the consumers would not be responsive.

Answer 2

False

Question 3

When deciding how to promote his new medical oncology center,Dr.Jones decided that he did not need to throw a large grand opening reception.Instead,he promoted the center to the internal medicine doctors in the area,who were the doctors most likely to refer patients to the center.Dr.Jones was engaged in a concentrated targeting strategy.

Answer 3

True

Question 4

A company that sells only multigrain,low calorie bread should use an undifferentiated targeting strategy.

Question 5

Sally is in the new marketing department of a midsized lawn and garden company.She is working on the first marketing plan the firm has ever used.She has defined the mission and objectives,and she just finished a situation analysis for the firm.The next step is to:

A) develop an advertising plan to promote the upcoming sales.
B) find marketing interns or hire new staff to help with implementation.
C) create pro forma financial statements to complete the package.
D) identify and evaluate opportunities by conducting segmentation,targeting and positioning analysis.
E) use the Internet,catalogs,and vendor information to draw up a list of new products.

Question 6

For each target market,General Imaging Corporation,a manufacturer of imaging equipment,will engage in positioning,adjusting their marketing mix variables in order to give customers:

A) better Medicaid and Medicare payments.
B) a perceptual map of the imaging landscape.
C) more product features than the competition offers.
D) lower prices than the competition offers.
E) a clear,distinctive,and desirable understanding of their products relative to competing products.

Question 7

It would be logical for bathing suit marketers to use geographic segmentation.

Question 8

A self-values map displays the position of products or brands in the consumer's mind.

Question 9

Giant Food Stores in suburban Washington,D.C.,adjusts its ethnic food aisle offerings based on the ethnic groups living near each store.Giant Foods is using geodemographic segmentation.

Question 10

For products like pencils and paperclips,marketers should probably use an undifferentiated targeting strategy.

Question 11

The STP process is made up of strategy,targeting,and promotion.

Question 12

Alex has found that both commercial and residential real estate buyers respond positively to his marketing communication message.Alex has identified __________ that respond similarly to his marketing efforts.

A) mass customization consumers
B) geographic segments
C) market segments
D) self-concept customers
E) geodemographic segments

Question 13

Positioning strategies generally focus either on how the product benefits the consumer or on how it is better than competitors' products.

Question 14

When a marketer adjusts the marketing mix to give customers a clear,distinctive understanding of what the product does,the marketer is engaging in psychographic segmentation.

Question 15

The first step in the STP process is to:

A) identify the segmentation methods to be used.
B) produce a list of strengths and weaknesses of the firm's past marketing strategies.
C) clearly articulate the firm's vision or marketing strategy objectives.
D) select target markets.
E) develop a marketing mix,so that an appropriate segment can later be identified.

Question 16

Perceptual maps include positions of current brands as well as ideal points where a consumer segment would want a product to be.

Question 17

The first step in the STP process is to establish an overall strategy.

Question 18

Segmentation,targeting and positioning:

A) are terms that can be used interchangeably in developing marketing plans.
B) are part of a firm's marketing strategy.
C) should be done simultaneously so synergies can help streamline the effort.
D) are part of the marketing plan but bear little direct relationship to the marketing mix.
E) all of these.

Question 19

NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of its fans were female.This is an example of psychographic segmentation.

Question 20

The Value and Lifestyle Survey (VALS)conducted by Strategic Business Insights (SBI)is a widely used tool for geographic segmentation.

Question 21

"Corporate pilot fish" are former employees who start a new business based primarily on contacts and contracts with their old company.A corporate pilot fish would probably pursue a __________ targeting strategy.

A) macromarketing
B) micromarketing
C) benefit-based
D) differentiated
E) undifferentiated

Question 22

For products like pencils and paperclips,which provide the same benefit for all consumers,marketers should probably use a(n):

A) concentrated targeting strategy.
B) lifestyle segmentation strategy.
C) benefit segmentation strategy.
D) undifferentiated targeting strategy.
E) all of these.

Question 23

Firms use a differentiated targeting strategy because:

A) it is easier than mass marketing.
B) it helps to obtain a bigger share of the market.
C) it is better than focusing on individual or small groups of potential customers.
D) most market segments are too small to be profitable.
E) banks are more willing to extend credit to companies with this strategic approach.

Question 24

One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify its business and:

A) decrease advertising spending.
B) focus on a single market segment.
C) lower overall risk.
D) use undifferentiated strategies in micro markets.
E) all of these.

Question 25

Differences in weather and climate create opportunities for:

A) concentrated targeting.
B) geographic segmentation.
C) benefit segmentation.
D) psychographic segmentation.
E) demographic segmentation.

Question 26

Adidas Group owns Reebok,Rockport,and Greg Norman brands.Adidas uses the different brands to pursue a(n)__________ strategy.

A) concentrated targeting
B) micromarketing
C) benefit targeting
D) differentiated targeting
E) undifferentiated targeting

Question 27

Demographic segmentation is segmentation based on:

A) age.
B) gender.
C) education.
D) income.
E) any of these.

Question 28

__________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach.

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

Question 29

Beer marketers know that high school educated,working class males from the ages of 25 to 40 make up an attractive market for their products. This is a __________ segment of the beer market.

A) demographic
B) psychographic
C) behavioral
D) benefits
E) geographic

Question 30

Four frequently used targeting strategies are the micromarketing,undifferentiated,differentiated,and __________ targeting strategies.

A) geographic
B) benefit-based
C) economic
D) global
E) concentrated

Question 31

Although a differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market,this strategy:

A) is the cheapest option.
B) requires the use of advanced advertising techniques.
C) rarely works.
D) is often expensive.
E) is ineffective without multiple brand names.

Question 32

When Penguin Catering Services first opened,the owner decided to target only events at resorts in its geographic region.Penguin Catering was using a(n)__________ targeting strategy.

A) concentrated
B) micromarketing
C) benefit-driven
D) differentiated
E) undifferentiated

Question 33

Marketers like Benetton want their ads to appeal to one's self-concept,suggesting to consumers:

A) "Trendy products for the masses."
B) "I'm like them,so I should buy their products."
C) "I will never be rich,but I can dress like I am."
D) "Be Peace."
E) "All is fair in love,marketing,and war."

Question 34

Many companies use the Internet to allow consumers to design customized products; for example,Nike allows customers to order shoes with custom color combinations.This is a form of:

A) micromarketing.
B) concentrated targeting.
C) psychographic segmentation.
D) differentiated targeting.
E) undifferentiated targeting.

Question 35

Television advertising has recently expanded to include "mini-ads," which are short ads lasting five to ten seconds.These ads are most useful in advertising to men,since men are more likely than women to channel surf during commercial breaks.This type of advertising will be more useful to marketers engaged in __________ segmentation.

A) demographic
B) psychographic
C) behavioral
D) benefits
E) geographic

Question 36

NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of race fans were female.This is an example of __________ segmentation.

A) geographic
B) psychographic
C) demographic
D) benefits
E) behavioral

Question 37

When Mr.How,a Pennsylvania-based discount lumber and hardware chain,sent snow blowers to its Augusta,Georgia,store in April,it was engaged in:

A) concentrated segmentation.
B) geodemographic segmentation.
C) benefit segmentation.
D) psychographic segmentation.
E) misguided geographic segmentation.

Question 38

In a classic example of segmentation strategy,years ago Swift Meat Company transformed turkey meat into "Butterball" turkeys.In the process,the company:

A) differentiated its product.
B) avoided the SARS virus.
C) created a new class of micromarketing.
D) raised consumers' self-concepts.
E) redefined mass customization.

Question 39

Adidas Group owns Reebok,Rockport,and Greg Norman brands.Having a variety of brands allows Adidas to:

A) engage in micromarketing for hard-to-fit shoe customers.
B) obtain a bigger share of the shoe market.
C) use mass marketing techniques.
D) utilize geographic segmentation.
E) generate economies of scale in advertising expenditures.

Question 40

__________ is an extreme form of a targeting strategy.

A) Macromarketing
B) Micromarketing
C) Benefit marketing
D) Differentiated targeting
E) Concentrated targeting

Question 41

Baby Boomers represent a huge demographic segment for travel marketers.Baby Boomers are also heavily motivated by self-fulfillment,which creates the possibility of __________ segmentation.

A) geographic
B) self-concept
C) psychographic
D) benefit
E) behavioral

Question 42

Marketers have found that __________ segmentation is often more useful for predicting consumer behavior than __________ segmentation.

A) demographic; psychographic
B) geographic; geodemographic
C) psychographic; demographic
D) demographic; behavioral
E) demographic; benefit

Question 43

PRIZM and Tapestry by ESRI divide and sort small geographic areas into categories using 60 or more demographic and lifestyle characteristics.These market research tools are examples of __________ segmentation.

A) geodemographic
B) benefit
C) psychographic
D) loyalty
E) geographic

Question 44

Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics,psychographics:

A) are available only in limited geographic areas.
B) are rarely used and unproven.
C) offer only one-to-one marketing potential.
D) are a more expensive method for identifying potential customers.
E) all of these.

Question 45

Education marketers have learned that the primary motivations of most nontraditional college students are self-respect and self-fulfillment.Understanding the values of this market segment allows marketers to:

A) emphasize the benefits these consumers are looking for in a college education.
B) lower the price for this market segment.
C) offer alternative courses based on geographic location.
D) employ loyalty marketing strategies.
E) utilize micromarketing strategies.

Question 46

If values provide goals,and self-concept is the way we see ourselves,lifestyles are:

A) visual images of how we should live our lives.
B) marketing manipulation of consumers' fears.
C) the way we live our lives to achieve our goals.
D) motivations turned into perceptual maps.
E) determined by demographics.

Question 47

In order to develop psychographic segments,the marketer must understand consumers':

A) age,income,and education.
B) gender,race,and religion.
C) disposable personal income,benefit perceptions,and alternative egos.
D) self-values,self-concept,and lifestyles.
E) all of these.

Question 48

Beverage companies often use television commercials with images of young people laughing and enjoying themselves on a beach or in a club.These images are designed to appeal to consumers' __________,suggesting "be like me."

A) geographic choices
B) self-concepts
C) loyalty references
D) benefit perceptions
E) demographics

Question 49

Toothpastes sold in supermarkets and pharmacies promise various results,such as whiter teeth,protection against gum disease,tartar control,or fresh breath.Toothpaste marketers are using __________ segmentation.

A) benefit
B) geodemographic
C) psychographic
D) loyalty
E) demographic

Question 50

Firms might use multiple segmentation methods to:

A) tailor communications
B) design products
C) determine the substance of the marketing message
D) all of these
E) none of these

Question 51

Golden Years Vitamin Corporation targets consumers living in Florida who are over 65.Golden Years is using __________ segmentation.

A) benefit
B) self-actualization
C) psychographic
D) loyalty
E) geodemographic

Question 52

VALS is the most widely used __________ segmentation tool.

A) geographic
B) behavioral
C) psychographic
D) benefits
E) geodemographic

Question 53

__________ segmentation is the segmentation method most directly related to value creation for consumers.

A) Geographic
B) Demographic
C) Psychographic
D) Benefit
E) Geodeomographic

Question 54

The phrase "birds of a feather flock together" captures the idea of __________ segmentation.

A) geodemographic
B) benefit
C) psychographic
D) loyalty
E) geographic

Question 55

Which of the following is NOT one of the VALS segments?

A) Innovators
B) Do-gooders
C) Thinkers
D) Achievers
E) Experimenters

Question 56

Psychographics is the segmentation method that delves into how consumers:

A) adjust to demographic changes.
B) allocate scarce incomes to a variety of goods and services.
C) describe themselves.
D) value their livelihoods.
E) all of these.

Question 57

A university using benefit segmentation and targeting students who want to get a degree quickly while still working full-time would focus on:

A) providing classes at convenient times and offering online courses.
B) discount pricing for students taking more than twelve credit hours.
C) the higher average salaries earned by college graduates.
D) the great variety of classes offered.
E) the number of Nobel Prize winners on the faculty.

Question 58

Innovators,Thinkers,Achievers,and Experiencers are VALS classifications based on:

A) motivation.
B) income.
C) health.
D) innovativeness.
E) all of these.

Question 59

The Lite beer commercial with the slogan,"less filling,tastes great," was based on __________ segmentation.

A) geographic
B) geodemographic
C) psychographic
D) benefit
E) loyalty

Question 60

Paul is considering psychographics as a way to segment the market for his small travel agency.This approach to segmentation offers him an advantage because:

A) it is based on underlying reasons why people make choices.
B) it is easier to use than demographics.
C) the travel business doesn't respond well to other approaches to segmentation.
D) psychographics is the preferred method for service businesses.
E) psychographic segmentation is the least expensive method.

Question 61

Talbots,an upscale women's clothing store,targets college-educated women between 35 and 55 years old with average household income of $75,000 or more.This is a form of __________ segmentation.

A) benefit
B) geodemographic
C) psychographic
D) demographic
E) geographic

Question 62

Geodemographic segmentation can be particularly useful for __________,because customers typically patronize stores close to their neighborhood.

A) Internet marketers
B) wholesalers
C) retailers
D) consumer goods manufacturers
E) cable TV networks

Question 63

Kim's Kayak Tours initially identified active retirees living in the retirement community nearby as one of its target markets.Kim then tailored her service and marketing message to the interests and schedules of that audience.Kim initially used __________ segmentation and then used __________ segmentation.

A) micromarketing; loyalty
B) lifestyle; macromarketing
C) geodemographic; lifestyle
D) geographic; loyalty
E) behavioral; geodemographic

Question 64

Ryan wants to sell personal website services to American soldiers in Afghanistan.Because of the difficulty of communicating with people in a war zone,Ryan may have trouble with this segment not being:

A) substantial.
B) perceptive.
C) identifiable.
D) reachable.
E) quantifiable.

Question 65

Carlos has identified four potential market segments for his Rent-A-Chef home meal catering service.He will now compare the segments to see if they are different enough from each other.Carlos is evaluating whether or not each segment is:

A) identifiable.
B) responsive.
C) profitable.
D) reachable.
E) all of these.

Question 66

When Ron complained to his bank about the unprofessional behavior of one teller,the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests.The branch management included Ron in its __________ segmentation.

A) benefit
B) geodemographic
C) psychographic
D) loyalty
E) geographic

Question 67

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service.She will now evaluate whether or not each segment is:

A) substantial.
B) responsive.
C) profitable.
D) reachable.
E) all of these.

Question 68

For a segmentation strategy to be successful,the customers in the segment must react similarly and positively to the firm's marketing mix.The market segment must be:

A) substantial.
B) perceptive.
C) identifiable.
D) reachable.
E) responsive.

Question 69

Airlines were among the first retailers to embrace loyalty segmentation when they created:

A) business-class seating.
B) 30-day advance pricing.
C) fuel surcharges.
D) in-flight movies.
E) frequent flyer programs.

Question 70

When Talbots,an upscale women's clothing store,tries to portray an image of "traditional,conservative,and with good taste," they are appealing to their target market's:

A) lifestyle.
B) geodemographics.
C) demographics.
D) loyalty.
E) PRIZM segment.

Question 71

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service.The next step is to:

A) categorize each market segment by consumer demographics.
B) establish her overall objectives.
C) decide on a targeting strategy.
D) develop a positioning strategy.
E) evaluate the attractiveness of each segment.

Question 72

Marketers often employ a combination of segmentation methods,using __________ to identify and target their customers,and __________ to design products and messages to appeal to them.

A) loyalty segmentation; demographics
B) undifferentiated targeting; differentiated targeting
C) loyalty segmentation; geodemographics
D) geodemographic segmentation; lifestyle or benefit segmentation
E) lifestyle segmentation; geographic segmentation

Question 73

College students can be a less __________ market segment because students' media habits are quite diverse.

A) substantial
B) perceptive
C) identifiable
D) reachable
E) quantifiable

Question 74

When Starbucks first opened,many critics suggested,"No one will pay $4.00 for a cup of coffee." Starbucks' critics suggested consumers would not be __________ to the company's offerings.

A) responsive
B) perceptive
C) identifiable
D) reachable
E) quantifiable

Question 75

Marketers often create a special marketing mix for loyalty segments because these segments are:

A) too large to service with ordinary targeting.
B) difficult to identify.
C) costly to acquire.
D) usually quite profitable.
E) all of these.

Question 76

One of the reasons marketers use loyalty segmentation is:

A) the high cost of finding new customers.
B) government tax incentives for loyalty.
C) accounting difficulties associated with identifying new customers.
D) rapid population increases.
E) the failure of micromarketing as a workable strategy.

Question 77

Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power.Greta is concerned with whether the segment is:

A) substantial.
B) responsive.
C) profitable.
D) reachable.
E) all of these.

Question 78

Retail store chains often use __________ data to identify other locations with similar demographics and purchasing behavior where it might make sense to open additional stores.

A) geodemographic
B) benefit
C) psychographic
D) loyalty
E) geographic

Question 79

With access to the Internet nearly universal in the United States,many potential market segments have become more:

A) substantial.
B) perceptive.
C) identifiable.
D) reachable.
E) quantifiable.

Question 80

While demographic and geographic segmentation of retail customers is relatively easy,these characteristics do not help marketers determine:

A) how old their customers are.
B) what their customers need.
C) where their customers live.
D) which customers have young children.
E) what income brackets their customers are in.