Question 1

What is differentiation?

Accepted Answer

Differentiation refers to differentiating the market offering to create superior customer value.

Question 2

Explain the four major steps in designing a customer-driven marketing strategy.

Accepted Answer

The first step is market segmentation: dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors, who might require separate products or marketing mixes. The company identifies different ways to segment the market and develops profiles of the resulting market segments.
The second step is market targeting: evaluating each market segment's attractiveness and selecting one or more of the market segments to enter.
The third step is differentiation: actually differentiating the firm's market offering to create a superior customer value.
Finally, the last step is market positioning: arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of consumers.

Question 3

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 4

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 developing a single product and marketing strategy for all potential customers, rather than tailoring it to specific market segments.

Question 5

A company selling child-care products ran a television ad depicting women as being primarily responsible for childcare. Many women viewers considered this regressive, alleging that the ad failed to recognize the much more diversified role of women in today's world. This is an example of ________.
A) cause marketing
B) stereotyping
C) niche marketing
D) scapegoating
E) positioning

Accepted Answer

The scenario described in the question is an example of stereotyping as the ad depicts women in a limited, traditional role and fails to acknowledge the diversity of women's roles in society.

Question 6

Which of the following variables are the most popular for marketers to use in segmenting customer groups?
A) ethical
B) psychographic
C) demographic
D) behavioral
E) geographic

Accepted Answer

The answer of Which of the following variables are the...

Question 7

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
A) Mass customization
B) Targeting
C) Segmentation
D) Differentiation
E) Positioning

Accepted Answer

Positioning consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Mass customization refers to tailoring products or services to individual customers. Targeting refers to selecting which segments to serve. Segmentation is the process of dividing a larger market into smaller groups of consumers with similar needs or characteristics. Differentiation refers to creating a unique product or service that sets it apart from the competition.

Question 8

With technology advances making it simple to contact many customers at once, companies have moved toward mass marketing over target marketing.

Accepted Answer

The answer of With technology advances making it simple to...

Question 9

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes many college students, as an untapped group of potential customers for their new line of products, they were engaging in ________.
A) occasion segmenting
B) local marketing
C) market diversification
D) market targeting
E) product positioning

Accepted Answer

Market targeting involves selecting one or more market segments to enter, with the goal of focusing on the needs and wants of that segment and tailoring marketing efforts to that group. In this case, the marketers at Fair & Leigh Inc. have selected the Millennials as their target market for their new line of products.

Question 10

Which of the following is NOT one of the major variables used in segmenting consumer markets?
A) demographic
B) behavioral
C) ethical
D) geographic
E) psychographic

Accepted Answer

The major variables used in segmenting consumer markets are demographic, behavioral, geographic, and psychographic. Ethical is not a commonly used variable for market segmentation.

Question 11

________ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
A) Geographic
B) Benefit
C) Occasion
D) Psychographic
E) Demographic

Accepted Answer

Demographic segmentation divides the market based on measurable characteristics such as age, gender, income, and education. This type of segmentation is useful for marketers because it provides a straightforward way to identify and target specific groups of consumers based on their shared demographic characteristics.

Question 12

________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods.
A) Benefit segmentation
B) Geographic segmentation
C) Demographic segmentation
D) Psychographic segmentation
E) Occasion segmentation

Accepted Answer

Geographic segmentation involves dividing the market into different geographical locations such as regions, states, counties, cities, or even neighborhoods. This type of segmentation can be effective in targeting customers based on their location, climate, population density, or other geographic factors that may influence their purchasing behavior.

Question 13

________ consists of evaluating each market segment's attractiveness and selecting one or more segments to enter.
A) Positioning
B) Mass customization
C) Market targeting
D) Market segmentation
E) Differentiation

Accepted Answer

Market targeting consists of evaluating each market segment's attractiveness and selecting one or more segments to enter. This involves deciding which segment(s) will be the most profitable to target and focusing the marketing efforts on those segment(s).

Question 14

Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods. This is an example of ________.
A) geographic segmentation
B) product diversification
C) branding
D) psychographic segmentation
E) demographic segmentation

Accepted Answer

Localizing products, advertising, promotion and sales efforts to fit the needs of individual regions, cities, and neighborhoods is an example of geographic segmentation. This involves dividing a market based on its physical location or its regional preferences, needs, or wants.

Question 15

________ can be a poor predictor of a person's health, work or family status, needs, or buying power.
A) Occupation
B) Education
C) Ethnicity
D) Religion
E) Age

Accepted Answer

Age can be a poor predictor of a person's health, work or family status, needs, or buying power because individuals of the same age can have vastly different experiences and circumstances. For example, a 65-year-old retiree may have very different health, financial, and lifestyle needs compared to a 65-year-old still in the workforce. Therefore, relying solely on age to make assumptions about a person's characteristics can be inaccurate.

Question 16

Companies know they cannot appeal to all buyers in the marketplace, or at least not in the same way. Reasons for this include all of the following EXCEPT ________.
A) buyers are too numerous
B) companies vary widely in their abilities to serve different market segments
C) buyers are varied in their needs and buying practices
D) companies need more information to offer the right products to the right customers
E) buyers are widely scattered

Accepted Answer

The statement mentions that companies know they cannot appeal to all buyers in the same way due to reasons such as buyers being too numerous, varied in their needs and buying practices, and widely scattered. It also mentions that companies vary widely in their abilities to serve different market segments. However, it does not mention that companies need more information to offer the right products to the right customers. Therefore, D is the correct answer.

Question 17

________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.
A) Benefit
B) Occasion
C) Geographic
D) Demographic
E) Psychographic

Accepted Answer

Psychographic segmentation is the process of dividing buyers into segments based on their personality traits, values, attitudes, interests, and lifestyles. This type of segmentation is based on the assumption that people with similar psychographic profiles are more likely to have similar product preferences and purchase behaviors. In contrast, benefit segmentation divides buyers based on the specific benefits they seek from products, occasion segmentation divides buyers based on the specific occasions or situations in which they use products, geographic segmentation divides buyers based on their location, and demographic segmentation divides buyers based on demographic variables such as age, income, gender, and education.

Question 18

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
A) Mass customization
B) Market targeting
C) Market segmentation
D) Differentiation
E) Positioning

Accepted Answer

Market segmentation is the process of dividing a market into smaller groups of consumers with distinct needs or characteristics. This allows companies to tailor their marketing strategies and product offerings to better meet the needs and preferences of different segments, improving the effectiveness of their marketing efforts. Mass customization, market targeting, differentiation, and positioning are all related concepts, but they refer to different aspects of the marketing process and do not involve segmenting the market in the same way as market segmentation.

Question 19

Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?
A) geographic segmentation
B) benefit segmentation
C) occasion segmentation
D) demographic segmentation
E) psychographic segmentation

Accepted Answer

Demographic segmentation involves dividing the market based on demographic characteristics such as age, gender, and income, which is exactly what Delta Motorworks is doing.

Question 20

________ involves actually distinguishing the firm's market offering to create superior customer value.
A) Mass customization
B) Differentiation
C) Market segmentation
D) Diversifying
E) Targeting

Accepted Answer

Differentiation involves creating a unique and superior value proposition for the firm's market offering, which distinguishes it from competitors. This can be achieved through various means such as product features, quality, brand image, customer service, or technology. Mass customization, market segmentation, and targeting are related concepts that help firms identify specific customer groups and tailor their offerings accordingly. Diversifying refers to expanding into new markets or product categories to reduce reliance on a single business line.

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

What is differentiation?

Explain the four major steps in designing a customer-driven marketing strategy.

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

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

A company selling child-care products ran a television ad depicting women as being primarily responsible for childcare. Many women viewers considered this regressive, alleging that the ad failed to recognize the much more diversified role of women in today's world. This is an example of ________.

Which of the following variables are the most popular for marketers to use in segmenting customer groups?

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

With technology advances making it simple to contact many customers at once, companies have moved toward mass marketing over target marketing.

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes many college students, as an untapped group of potential customers for their new line of products, they were engaging in ________.

Which of the following is NOT one of the major variables used in segmenting consumer markets?

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

________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods.

________ consists of evaluating each market segment's attractiveness and selecting one or more segments to enter.

Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods. This is an example of ________.

________ can be a poor predictor of a person's health, work or family status, needs, or buying power.

Companies know they cannot appeal to all buyers in the marketplace, or at least not in the same way. Reasons for this include all of the following EXCEPT ________.

________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?

________ involves actually distinguishing the firm's market offering to create superior customer value.