Question 1

Zappos' original target market customers consisted of people who wanted all of the following EXCEPT:

Accepted Answer

There is no mention of sustainable products being a priority for Zappos' original target market.

Question 2

A market-product grid refers to

Accepted Answer

A market-product grid is a framework that relates the market segments of potential buyers to products offered or potential marketing actions by an organization. It helps companies identify potential gaps in their product offerings and develop strategies to reach specific target markets.

Question 3

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

Accepted Answer

Market segmentation involves identifying and understanding the needs and characteristics of different groups of buyers or markets. By selecting specific segments to target, the organization can tailor their marketing program to meet the unique needs and preferences of those customers. Therefore, market segmentation is the link between buyers' or market needs and the organization's marketing program.

Question 4

A market-product grid is a framework to relate the market segments of potential buyers to

Accepted Answer

A market-product grid is a framework that links different market segments with the organization's product offerings or potential marketing strategies. This helps the organization identify potential target markets and the corresponding products or strategies that would appeal to each market segment. Therefore, option B is the best choice as it accurately describes the purpose of a market-product grid.

Question 5

A marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products is referred to as __________.

Accepted Answer

The definition provided in the question matches with the concept of product differentiation, which involves using various marketing mix elements such as product design, packaging, pricing, advertising, and distribution to create a unique image and perception of the product in the minds of target customers. This helps the product stand out in a competitive marketplace and attract more customers. Options A, C, and D refer to related concepts, but do not precisely match the definition given in the question, while option B is incorrect as "points of difference" generally refers to the distinguishing features of a product or brand relative to its competitors, rather than a marketing strategy itself.

Question 6

The phrase "relatively homogeneous collections of prospective buyers" is most descriptive of

Accepted Answer

Relatively homogeneous collections of prospective buyers refer to market segments, which are groups of consumers who share similar needs, wants, and characteristics. Demographic clusters refer to groups of consumers who share demographic characteristics, such as age or income, but may not necessarily have similar needs or wants. Organizational buyers and qualified prospects are specific types of buyers, not necessarily indicative of a collection of similar buyers. Ultimate consumers are the end-users or individuals who purchase and use products or services for personal, rather than business, use.

Question 7

A market-product grid is a framework to relate

Accepted Answer

A market-product grid is a framework that helps an organization to identify its target market segments and products offered or potential marketing actions by an organization for each segment. It helps in determining the most effective marketing strategy by analyzing the potential of each product in each market segment. Therefore, option E is the best choice that explains the relationship between market segments and products offered/marketing actions.

Question 8

A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as a __________.

Accepted Answer

The market-product grid is a framework that displays the various market segments a company is targeting along one dimension and the products or marketing actions along the other dimension. This allows the company to analyze which products are best suited to which markets and take appropriate marketing actions. The other options listed are not related to this concept - a payoff table is a tool used in decision analysis, cross-tabulation is a statistical technique, growth-share matrix is a tool used for portfolio analysis, and product differentiation table is not a commonly used term in marketing.

Question 9

Which of the following statements regarding market segmentation is most accurate?

Accepted Answer

Market segmentation is a process that involves dividing a larger market into smaller groups of consumers who have similar needs and characteristics. The ultimate goal of this process is to increase sales and profits by targeting specific segments with tailored marketing messages, products, and services. Therefore, option D is the most accurate statement as it highlights the primary objective of market segmentation for business firms. Option A is incorrect as it implies that even a single segment may not be profitable for a firm. Option B is incorrect as market segmentation can work for small businesses as well, and there are various cost-effective methods to segment a market. Option C is incorrect as governments can also benefit from market segmentation techniques to identify specific groups of citizens that require public services. Option E is incorrect as it is not based on any empirical evidence and doesn't reflect the actual success rate of segmentation strategies.

Question 10

To create a market-product grid for bed pillows,the most effective way to segment the market would be using

Accepted Answer

How the sleeper sleeps (side, back, or stomach) is the most relevant factor for creating a market-product grid for bed pillows. Different sleeping positions require different types of support, and pillows can be marketed accordingly (e.g. firm pillows for side sleepers, soft pillows for stomach sleepers). Age, income, and gender are less relevant factors in determining pillow preferences. Time of sleep (day or night) is not relevant as most people sleep at night.

Question 11

Apple's iPhone has a feature known as Siri that lets you use your voice to send messages,make calls,set reminders,and ask questions.This feature sets the smartphone apart from its competitors and thus provides

Accepted Answer

Siri is a unique feature that sets the iPhone apart from its competitors, providing product differentiation. Product segmentation refers to dividing a market into subsets of consumers with similar needs or characteristics, which is not applicable to this scenario. Market expansion relates to increasing the target audience, which is not relevant here. Usage segmentation and psychographic segmentation refer to dividing the market based on usage and personality traits, respectively, and are not applicable to this scenario.

Question 12

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 has a different formulation to relieve a specific malady which makes them more specialized than competing products.The maker of Alka-Seltzer is using

Accepted Answer

The maker of Alka-Seltzer is using product differentiation, which is the process of creating a unique product that stands out from competitors in the market. Alka-Seltzer has different formulations for different maladies, making it more specialized than competing products. This aligns with product differentiation strategy. Product segmentation is a similar strategy but involves dividing a larger market into smaller groups based on specific needs or characteristics. Market sectioning and product base development are not relevant strategies in this scenario.

Question 13

In marketing,each __________ consists of people who are relatively similar to each other in terms of their consumption behavior.

Accepted Answer

A market segment is a group of consumers who share similar needs, wants, and behaviors. This allows marketers to tailor their marketing strategies to appeal specifically to that group, rather than trying to appeal to a broad and diverse group of consumers. Demographic clusters, organizational buyer groups, ultimate consumer groups, and qualified prospect groups may all be part of a market segment, but they are not synonymous with the concept of a market segment itself.

Question 14

Product differentiation refers to

Accepted Answer

Product differentiation refers to the marketing strategy employed by companies to make their products stand out from competing products by leveraging unique marketing mix activities, such as branding, packaging, pricing, and promotions. This strategy is aimed at helping customers perceive the product as being superior or different from competing products.

Question 15

A market-product grid relates the market segments to the products offered or potential marketing actions.With respect to pillows,the most effective way to segment the pillow market would be based on __________.

Accepted Answer

In the case of pillows, the most effective way to segment the market would be based on how the sleeper sleeps, such as side, back, or stomach. This is because different sleeping positions require different types of pillows to ensure proper support and comfort. Therefore, segmenting the market based on sleeping position would allow pillow manufacturers to offer products that cater specifically to each segment's unique needs. The other segmentation options provided do not take into consideration the specific requirements of each sleeping position.

Question 16

Which strategy involves a firm's using different marketing mix activities to help consumers perceive the product as being different and better than competing products?

Accepted Answer

Product differentiation involves using different marketing mix activities to make consumers perceive the product as better than competitors' products. This can involve things like different branding, pricing strategies, packaging, and advertising. It is a key strategy for standing out in a crowded market and winning market share. Points of difference, market differentiation, and product positioning are all related strategies that can be used to support product differentiation. Market penetration, on the other hand, involves increasing sales of existing products in existing markets and does not relate as closely to product differentiation.

Question 17

A market-product grid is a framework to relate the __________ to products offered or potential marketing actions by an organization.

Accepted Answer

A market-product grid is used to relate the market segments of potential buyers to the products offered or potential marketing actions by an organization. It helps identify the most attractive market segments and the products or services that would appeal to those segments. The grid can also assist in developing marketing strategies for each product or service offered by the organization.

Question 18

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

Accepted Answer

The process of segmenting a market and selecting specific segments as targets is crucial in linking the various market needs with the organization's marketing program. By segmenting the market and selecting specific segments to target, the organization can tailor its marketing mix to meet the unique needs and preferences of each segment, leading to more effective marketing and higher customer satisfaction. Therefore, the best choice is E, the organization's marketing program.

Question 19

When Procter & Gamble introduced Crest toothpaste,the first fluoride toothpaste,it was intended for use by children and was therefore given a child-appealing bubblegum flavor.Sometime later,the same basic formula was given a fresh,minty flavor to appeal to adults.What marketing strategy did P&G use in this example?

Accepted Answer

P&G used product differentiation strategy by introducing two different flavors of the same basic formula for different target audiences (children and adults).

Question 20

An analysis of the pillow market using a market-product grid suggests that the most important segment to target is

Accepted Answer

According to the question, we need to choose the most important segment to target in the pillow market. The market-product grid helps us analyze the market based on different product offerings and customer segments. Since pillows are primarily used for sleeping, we can assume that sleepers are the customer segment. The grid also suggests that the product offering is pillows. Among the given options, targeting side sleepers would be the most important segment as they constitute a significant portion of the sleeping population and have specific pillow needs such as firmness, height, and support for the head, neck, and spine alignment. Sleep disorders or higher annual incomes do not necessarily determine the customer's preference for a pillow, whereas sleeping positions do. Therefore, option A) side sleepers is the best choice to target for the pillow market.

Quiz 8: Market Segmentation, Targeting, and Positioning

Zappos' original target market customers consisted of people who wanted all of the following EXCEPT: