Question 1

Mass marketing involves identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.

Accepted Answer

Mass marketing involves targeting the entire market with a single marketing mix, rather than tailoring the product and marketing program to specific market segments.

Question 2

Symbols such as the McDonald's golden arches, the colorful Google logo, the Nike swoosh, or Apple's "bite mark" logo provide strong company or brand recognition and are indicative of ________ differentiation.
A) people
B) image
C) channel
D) services
E) product

Accepted Answer

The answer of Symbols such as the McDonald's golden arches,...

Question 3

Which of the following states the product's membership in a category and then shows its point of difference from other members of the category?
A) a mission statement
B) a vision statement
C) a general need description
D) a positioning statement
E) an order-routine specification

Accepted Answer

A positioning statement clearly defines the product's category and then highlights its unique selling proposition or point of difference from other members of the category.

Question 4

The customer-driven marketing strategy involves four steps: market segmentation, market targeting, positioning, and differentiation.

Accepted Answer

This statement is true. The customer-driven marketing strategy involves market segmentation, market targeting, positioning, and differentiation.

Question 5

Chronos Inc. designs and markets different brands of cycling watches. Each brand has a single unique feature: the Chronos Cosmos has a heart rate monitor, the Chronos Acumen is designed for older cyclists who prefer a large display, and the Chronos Aegis has a GPS function. Which of the following is evident here?
A) channel differentiation
B) service differentiation
C) product differentiation
D) people differentiation
E) image differentiation

Accepted Answer

The differentiation strategy used by Chronos Inc. is product differentiation as each brand has a unique feature that sets it apart from the others.

Question 6

Refer to the scenario below to answer the following questions.
Herb Marks was making wooden pens and pencils, which had unique engravings, as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the wooden pencils were a hit with all school goers! Herb Marks had never thought of marketing his talent, but Mel's enthusiasm and the recent sales were enough to change his mind.
With limited resources, Herb contacted three additional specialty shops within 100 miles which were situated near schools. He explained his manufacturing processes and engraving options to each. All three shop owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic!
"I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils.
"I had to get a grip on the magnitude of this project," Herb added.
Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes."
-In the scenario, Herb has segmented his market based on ________.
A) geography
B) benefits sought
C) occasion
D) degree of loyalty
E) demographics

Accepted Answer

The answer of Refer to the scenario below to answer...

Question 7

Geographic segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

Accepted Answer

Geographic segmentation divides the market into segments based on geographic variables such as region, city size, population density, and climate. The variables listed in the question are examples of other types of segmentation.

Question 8

Apex describes its clothing line as, "Elegance and attitude, now as one. For the daily office-goer, who takes pride in what he or she wears everyday, Apex makes sure you get noticed." This exemplifies a ________.
A) statement of purpose
B) vision statement
C) positioning statement
D) general need description
E) product specification

Accepted Answer

The statement describes how Apex positions its clothing line in the market by highlighting its unique qualities of elegance and attitude that are aimed at office-goers who take pride in their appearance. Therefore, it is a positioning statement.

Question 9

Refer to the scenario below to answer the following questions.
Herb Marks was making wooden pens and pencils, which had unique engravings, as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the wooden pencils were a hit with all school goers! Herb Marks had never thought of marketing his talent, but Mel's enthusiasm and the recent sales were enough to change his mind.
With limited resources, Herb contacted three additional specialty shops within 100 miles which were situated near schools. He explained his manufacturing processes and engraving options to each. All three shop owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic!
"I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils.
"I had to get a grip on the magnitude of this project," Herb added.
Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes."
-If Herb interacted one-to-one with his customers to design his products and services according to individual needs, he would be practicing ________.
A) concentrated marketing
B) trigger-based marketing
C) undifferentiated marketing
D) mass customization
E) segmented marketing

Accepted Answer

Mass customization involves interacting one-to-one with customers to design products according to individual needs. This is exactly what Herb Marks is doing by engraving unique designs and offering different options for his wooden pens and pencils to meet the needs of different customers.

Question 10

Perry's Mart, a grocery store in New Orleans, Louisiana, offers less merchandise selection and fairly low levels of service. Despite the lackluster service and limited selection of merchandise, customers still flock to Perry's because it charges rock-bottom prices. Perry's Mart most likely uses the ________ positioning.
A) more for the same
B) more for less
C) same for less
D) less for much less
E) more for more

Accepted Answer

Perry's Mart offers less merchandise and service but attracts customers with very low prices, fitting the "less for much less" positioning strategy.

Question 11

While Jenkins Stationeries was selling branded stationery at premium prices, Pembroke Stationeries, a store across the street, was selling the same branded stationery at discount prices. Which of the following value propositions best describes Pembroke's product positioning?
A) more for less
B) more for the same
C) same for less
D) less for much less
E) more for more

Accepted Answer

Pembroke Stationeries is offering the same branded stationery as Jenkins Stationeries but at a discount price, thus emphasizing the value proposition of "same for less".

Question 12

________ positioning involves meeting consumers' lower performance or quality requirements at a much lower price.
A) More for less
B) Less for much less
C) Same for less
D) More for more
E) More for the same

Accepted Answer

The given scenario describes the "Less for much less" positioning strategy where the company offers lower quality or lower performance products at a much lower price, targeting price-sensitive customers who are willing to compromise on quality or performance for a cheaper price.

Question 13

Which of the following is true with regard to the same for less value proposition?
A) Discount stores and "category killers" rarely use the same for less value proposition.
B) The same for less value proposition is mostly offered by marketers who sell higher quality upscale products or services.
C) The same for less value proposition cannot generate profits.
D) Offering the same for less can be a powerful value proposition because everyone likes a good deal.
E) The same for less positioning involves meeting consumers' lower performance or quality requirements at a much lower price.

Accepted Answer

Offering the same for less can be a powerful value proposition because everyone likes a good deal.

Question 14

Refer to the scenario below to answer the following questions.
Herb Marks was making wooden pens and pencils, which had unique engravings, as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the wooden pencils were a hit with all school goers! Herb Marks had never thought of marketing his talent, but Mel's enthusiasm and the recent sales were enough to change his mind.
With limited resources, Herb contacted three additional specialty shops within 100 miles which were situated near schools. He explained his manufacturing processes and engraving options to each. All three shop owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic!
"I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils.
"I had to get a grip on the magnitude of this project," Herb added.
Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes."
-In marketing his wooden pens and pencils to specialty-shop customers, Herb was most likely using ________ marketing.
A) mass
B) trigger-based
C) concentrated
D) segmented
E) individual

Accepted Answer

Herb was targeting and focusing on a specific group of customers - specialty shops near schools - which is characteristic of concentrated marketing.

Question 15

"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) ________.
A) positioning statement
B) statement of purpose
C) order-routine specification
D) vision statement
E) product specification

Accepted Answer

The statement describes the unique value proposition of the Evernote application and how it helps busy multitaskers remember things. This is a classic example of a positioning statement, which defines the brand's position in the market and communicates its value to customers.

Question 16

Kinger Auto specializes in selling low-quality used vehicles that are priced a good deal lower than other used cars. Which of the following value propositions is evident here?
A) more for the same
B) more for less
C) same for less
D) less for much less
E) more for more

Accepted Answer

The answer of Kinger Auto specializes in selling low-quality used...

Question 17

The Jay Group hires better employees than its competition by conducting effective searches and multi-tiered interviews. The company also provides high quality training to its employees, an aspect often neglected by competitors. The Jay Group is most likely to gain a strong competitive advantage through which type of differentiation?
A) image differentiation
B) people differentiation
C) services differentiation
D) product differentiation
E) channel differentiation

Accepted Answer

The type of differentiation that The Jay Group is using to gain a competitive advantage is people differentiation, as they are hiring better employees and providing them with high quality training.

Question 18

The winning value proposition would be to offer ________.
A) more for the same
B) more for less
C) more for more
D) same for less
E) same for more

Accepted Answer

Offering more for less means providing more value to the customer at a lower cost. This is a strong value proposition that can attract more customers and create a competitive advantage.

Question 19

Ferrari sports cars claim superior quality, performance, and style. Ferrari provides "perfection" at a premium price to keep its brand image intact. Which type of value proposition does Ferrari most likely position its products with?
A) more for the same
B) more for more
C) less for much less
D) the same for less
E) more for less

Accepted Answer

Ferrari positions its product with the "more for more" value proposition. This means that it offers superior quality, performance, and style at a premium price, and customers are willing to pay more for these added benefits. Ferrari's brand image is based on providing the best of everything, and it maintains this image by offering top-tier products at a high price point.

Question 20

When it first opened stores across the United States, Bateman's, an office supply chain store, had the best product selection, the best service, and the lowest prices compared to other office supply chain stores. As a result, Bateman's captured a significant chunk of the market in the short run. Which of the following positioning strategies did Bateman's most likely use?
A) more for the same
B) more for less
C) same for less
D) less for much less
E) more for more

Accepted Answer

Bateman's offered the best product selection and service but also had the lowest prices compared to other office supply chain stores. This positioning strategy is known as "more for less", which emphasizes offering more value for less money. This allowed Bateman's to capture a significant chunk of the market in the short run.

Quiz 7: Customer-Driven Marketing Strategy: Creating Value for Target Customers

Mass marketing involves identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.

Symbols such as the McDonald's golden arches, the colorful Google logo, the Nike swoosh, or Apple's "bite mark" logo provide strong company or brand recognition and are indicative of ________ differentiation.

Which of the following states the product's membership in a category and then shows its point of difference from other members of the category?

The customer-driven marketing strategy involves four steps: market segmentation, market targeting, positioning, and differentiation.

Geographic segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

Apex describes its clothing line as, "Elegance and attitude, now as one. For the daily office-goer, who takes pride in what he or she wears everyday, Apex makes sure you get noticed." This exemplifies a ________.

While Jenkins Stationeries was selling branded stationery at premium prices, Pembroke Stationeries, a store across the street, was selling the same branded stationery at discount prices. Which of the following value propositions best describes Pembroke's product positioning?

________ positioning involves meeting consumers' lower performance or quality requirements at a much lower price.

Which of the following is true with regard to the same for less value proposition?

"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) ________.

Kinger Auto specializes in selling low-quality used vehicles that are priced a good deal lower than other used cars. Which of the following value propositions is evident here?

The winning value proposition would be to offer ________.

Ferrari sports cars claim superior quality, performance, and style. Ferrari provides "perfection" at a premium price to keep its brand image intact. Which type of value proposition does Ferrari most likely position its products with?