Question 1

Developing a stronger position within several segments creates more total sales than undifferentiated marketing across all segments.

Accepted Answer

By focusing on specific segments and developing a unique value proposition for each, a company can better meet the needs and wants of those customers and create stronger brand loyalty. This can lead to increased sales and profitability within those segments. Undifferentiated marketing, on the other hand, may not effectively reach any particular segment and may result in lower overall sales.

Question 2

At a recent marketing seminar,the featured speaker stated that a target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.This is a correct definition.

Accepted Answer

This is a widely accepted definition of target market. Companies identify the common needs, preferences, and characteristics of a particular group of customers, and then tailor their marketing efforts to meet their needs and preferences in order to capture their business.

Question 3

Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies.

Accepted Answer

Niche marketing allows smaller companies to focus on serving specific segments of the market, which may not be as important to larger companies. This can give smaller companies a competitive advantage and help them to differentiate themselves from the competition.

Question 4

Because Cruise Ships International currently has limited financial and personnel resources,it should avoid concentrated or niche marketing until its resources are again substantial.

Accepted Answer

Niche marketing can be a strategic approach for companies with limited resources, as it allows them to focus on a specific segment of the market, potentially reducing competition and maximizing the impact of their limited resources.

Question 5

Clusters of marketable groups of customers with similar likes,dislikes,lifestyles,and purchase behaviors can be identified by multivariable segmentation systems that merge and analyze geographic,demographic,lifestyle,and behavioral data.

Accepted Answer

Multivariable segmentation systems do merge and analyze multiple types of data to identify groups of customers with similar characteristics.

Question 6

Research about and planning for loyalty status as a segmentation approach is generally not useful or practical for most firms.

Accepted Answer

Loyalty status as a segmentation approach can be useful for firms, especially those with high customer retention or frequent purchase behavior. By identifying and targeting loyal customers, firms can increase customer lifetime value and strengthen brand loyalty. However, the practicality of this approach depends on the availability of data and resources for tracking and analyzing customer behavior. For some firms, other segmentation approaches such as demographics or psychographics may be more feasible and effective.

Question 7

Gender segmentation has long been used in clothing,cosmetics,toiletries,and magazines.

Accepted Answer

Gender segmentation is a common marketing strategy that has been used in various industries including clothing, cosmetics, toiletries, and magazines.

Question 8

A market rarely exists for products that offer less and therefore cost less.

Accepted Answer

A market can exist for products that offer less and cost less if there is demand for affordable and basic versions of a product. These products may appeal to budget-conscious consumers or those who prioritize simplicity over advanced features. For example, a basic flip phone may have a market among older consumers who do not need or want the complexity of a smartphone.

Question 9

Because there is such variation among the economies of countries around the world,it is not practical to segment international markets on the basis of economic factors.

Accepted Answer

Segmenting international markets based on economic factors is practical as it allows businesses to tailor their strategies to different economic conditions, such as income levels, economic stability, and growth potential, which can significantly impact consumer behavior and market opportunities.

Question 10

A product's position is the way the product is defined by the retailers who sell it to target markets.It is how it is defined on important attributes-the place the product occupies in the retailers' minds relative to competing products.

Accepted Answer

A product's position is defined by the consumers' perception of the product's attributes and its place in their minds relative to competing products, not by the retailers.

Question 11

For simplicity's sake,most marketers generally limit their segmentation analysis to one or a few variables.

Accepted Answer

Marketers often use multiple variables for segmentation to better understand and target their audience effectively.

Question 12

Mass marketing is becoming a marketing principle for the 21^stcentury.

Accepted Answer

Mass marketing is no longer a recommended strategy in the 21st century. Instead, personalized or targeted marketing is more effective in reaching and engaging with specific audiences.

Question 13

Though the use of mass marketing has been widespread in the past 100 years,for centuries consumers were served as individuals as businesses practiced individual marketing.

Accepted Answer

Before mass marketing became prevalent in the past 100 years, businesses practiced individual marketing where consumers were served as individuals.

Question 14

LaGrange Florists segments markets into groups of nonusers,ex- users,potential users,first- time users,and regular users of its flowers and services.This firm uses usage rate as its segmentation approach.

Accepted Answer

The segmentation approach described is based on user status, not usage rate. Usage rate segmentation would categorize customers based on how much they use the product or service.

Question 15

Demographic segmentation can be used to divide the market by different time periods of people's lives and different family situations.

Accepted Answer

Demographic segmentation includes factors such as age, gender, income, education, and family status, which can be used to divide the market into different groups based on people's lives at different times and various family situations.

Question 16

Your assignment at work is to divide buyers into different groups based on social class,lifestyle,and personality characteristics.After a planning session with the marketing and sales staff,you issue a memo to upper management recommending psychographic segmentation.You are right on target.

Accepted Answer

The assignment requires segmenting buyers based on social class, lifestyle, and personality characteristics, which falls under psychographic segmentation. Therefore, recommending psychographic segmentation is the appropriate approach.

Question 17

In evaluating different market segments,a firm should look at three factors: segment size and growth,segment structural attractiveness,and company objectives and resources.

Accepted Answer

These are the three main factors a firm should consider when evaluating different market segments. Segment size and growth indicate the potential size of the market, while segment structural attractiveness looks at factors such as competition, barriers to entry, and profit potential. Finally, a company's objectives and resources must align with the chosen segment for it to be successful.

Question 18

Bombay Gifts divides its markets into units of nations,regions,and cities.Bombay uses geographic segmentation.

Accepted Answer

The company Bombay Gifts is using geographic segmentation by dividing its markets into units of nations, regions, and cities.

Question 19

Consumers position products in their minds in order to simplify the buying process.

Accepted Answer

Consumers use mental processes such as categorization and brand positioning to simplify the buying process and make purchasing decisions easier.

Question 20

There are many exceptions to the geographic segmentation assumption that consumers in nations close to one another will have many common behaviors and traits.

Accepted Answer

Geographic segmentation assumes that consumers in close nations will behave similarly, but there are many exceptions to this, such as differences in culture, language, and economic development.

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