Deck 9: Market Segmentation, targeting, and Positioning

Question 1

Micromarketing may cause a company to lose sight of other,larger markets.

Answer 1

True

Question 2

Very few residents of a micropolitan statistical area commute outside the area.

Answer 2

True

Question 3

Psychographic segmentation is the most common method of market segmentation.

Answer 3

False

Question 4

Using AIO statements allows marketing researchers to develop lifestyle profiles.

Question 5

Marketers rarely encounter differences among members of a target group,as they segment potential consumers into homogeneous groups.

Question 6

Business products contribute directly or indirectly to the production of other goods and services for resale.

Question 7

Since rubber purchased by Goodyear is utilized to manufacture tires that are ultimately used by consumers for their automobiles,rubber is a consumer product for Goodyear.

Question 8

Home Depot introduced a new line of riding lawn mowers.The company decided to focus more on people living in the suburbs than those in the city because a survey showed the former category to be more inclined toward gardening.This is an example of a demographic segmentation by Home Depot.

Question 9

The marketing strategy that targets potential customers based on specific occupation or lifestyle is called micromarketing.

Question 10

Not-for-profit organizations practice market segmentation.

Question 11

Baby boomers are people born between 1946 and 1964.

Question 12

Primary metropolitan statistical areas (PMSAs)are identified within areas of 1-million-plus populations.

Question 13

Members of Generation Y gravitate to activities that provide constant entertainment and immediate gratification.

Question 14

Concentrated marketing is also known as niche marketing.

Question 15

A consolidated metropolitan statistical area comprises of two or more primary metropolitan statistical areas.

Question 16

Typically,a single marketing mix strategy attracts all sectors of a market.

Question 17

Families,bachelors,and retirees could be considered separate market segments for a company promoting travel packages.

Question 18

As compared to undifferentiated marketing,applying a micromarketing strategy allows companies to reach larger markets.

Question 19

Up & Away Flying Corporation recently began manufacturing private helicopters.If they have a limited advertising budget,concentrated marketing would be the ideal marketing strategy for this firm.

Question 20

The group born between 1968 and 1979,now generally in their early 30s to early 40s are referred to as Generation Y.

Question 21

Niche marketing is best suited for firms that offer highly specialized goods and services.

Question 22

Asian Americans are an attractive target to marketers as they have the fastest rising income.

Question 23

If a company markets a consumer product,such as toilet paper,in bulk quantities to the entire market,it is involved in micromarketing.

Question 24

Core based statistical areas (CBSA)are comprised of metropolitan and micropolitan statistical areas.

Question 25

Market segmentation attempts to isolate traits that distinguish a certain group of consumers from the overall market.

Question 26

Micromarketing can target even individuals.

Question 27

A metropolitan statistical area (MSA)is a freestanding urban area with a population in the urban center of at least 50,000 and a total MSA population of 100,000 or more.

Question 28

Products bought by ultimate customers for personal use are known as consumer products.

Question 29

Geographic information systems (GIS)simplify the job of analyzing marketing information by relating data to their locations.

Question 30

Buyers in metropolitan statistical areas exhibit social and economic homogeneity.

Question 31

A micropolitan statistical area will have at least one urbanized area of 50,000 or more inhabitants.

Question 32

The market segmentation that is based on the stages of the family lifecycle is a form of demographic segmentation.

Question 33

The target market for a product is the specific segment of consumers most likely to purchase that particular product.

Question 34

Detergent packets purchased by a leading laundry service are considered business products.

Question 35

According to Engel's laws,the percentage of income spent on food increases with increased income.

Question 36

Items can be classified as business products,not because of what they are,but because of how they will be used.

Question 37

Competition in the market usually forces firms to adopt a differentiated marketing strategy.

Question 38

Automobile manufacturers and food processing companies segment a particular geographic region based on the same factors.

Question 39

Geographic indicators such as job growth give useful guidance to marketers,depending on the type of products they sell.

Question 40

Kim's Egg Rolls were being promoted as a dinner item but after a few years the company decided to change their packaging and advertising to promote the egg rolls as evening snacks.This is an example of repositioning a product.

Question 41

Consolidated metropolitan statistical areas (CMSA)are limited to the same state,making it difficult for marketers to tap into similar product-use patterns among populations in neighboring states.

Question 42

A positioning map provides a valuable tool to help managers position products by graphically illustrating consumers' perceptions of competing products within an industry.

Question 43

Firms can reposition their already successful products in order to gain a greater market share.

Question 44

Children exert considerable influence over household food purchases.

Question 45

Core regions are locations where marketers get majority of their sales.

Question 46

Division of the total market into smaller,relatively homogeneous groups is known as market optimization.

Question 47

Geographic information systems help marketers map out most efficient delivery routes.

Question 48

During the process of market segmentation,finalizing the marketing strategy and tactics helps firms to determine the costs of marketing and the expected level of resources it must commit.

Question 49

Majority-minority counties are places where more than half the population is a single racial or ethnic group other than non-Hispanic white.

Question 50

The Asian Americans are currently the largest ethnic minority group in the United States.

Question 51

Psychographic segmentation involves segmenting the consumers on the basis of the benefits they seek from a product.

Question 52

Psychographic segmentation divides a population into groups with similar values and lifestyles.

Question 53

Engel observed that the percentage of income spent on household operations and clothing remains constant even when the household income increases.

Question 54

Dividing an overall market into homogeneous groups based on gender and age would constitute demographic segmentation.

Question 55

"For the same dollars that you spend on a no-frills ticket to Los Angeles,fly Business Class with us!" is the advertising statement issued by FlyHigh Airlines.It represents an attempt by FlyHigh Airlines to position itself with respect to its competitors.

Question 56

Baby Boomers are decreasing in popularity as a market segment due to their declining disposable income.

Question 57

Division of an overall market into homogeneous groups based on their locations constitutes socioeconomic segmentation.

Question 58

Married couples enter the "empty nest" stage once their children start living on their own.

Question 59

Raw silk is an example of a consumer product.

Question 60

Generation X is very family-oriented,well educated,and optimistic.

Question 61

The first stage in the market segmentation process,after identifying promising segments,is to produce a forecast of market potential within each segment.
Indicate the answer choice that best completes the statement or answers the question.

Question 62

The 80/20 principle,also called Pareto's law,states that 80 percent of a product's revenues come from 20 percent of its customers.

Question 63

The revised VALS system categorizes consumers by their occupations.

Question 64

The Asian American population is more geographically distributed than either Hispanics or African Americans.

Question 65

A company that practices differentiated marketing can generate more sales compared to those generated by undifferentiated marketing.

Question 66

Geographic segmentation is also called socioeconomic segmentation.

Question 67

A hotel purchases towels for use in its rooms.In this context,these towels will be considered business products.

Question 68

Firms must attempt to group consumers according to the presence or absence of those factors that affect purchase decisions.

Question 69

Geographic segmentation provides useful distinctions when regional preferences or needs exist.

Question 70

A management-driven method for identifying market segments involves asking customers for the product attributes important to them.

Question 71

Concentrated marketing strategy ties a firm's growth to a specific market segment.

Question 72

A market includes any person or entity that has the willingness and the purchasing power to buy a product.

Question 73

Placing a product at a certain point or location within a market in the minds of prospective buyers is known as market mapping.

Question 74

Once the total market potential has been estimated by a firm,the next step in the market segmentation process is to forecast the probable market share.

Question 75

Firms often purchase legal services from external consultants.However,as this does not directly contribute to the firm's production activities,legal services cannot be considered a business product.

Question 76

Targeting a large number of small markets can produce an expensive,complex,and inefficient marketing strategy.

Question 77

An undifferentiated marketing strategy is more suited for a firm that markets generic products rather than individual brand names.

Question 78

Psychographic segmentation helps marketers to gain a sharper insight into consumer purchasing behavior.

Question 79

The number and size of the market segments chosen by a firm must match its marketing capabilities.

Question 80

Typically,magazines can be successfully marketed to consumers through mass marketing strategies.