Question 1

When a company customizes its merchandise store by store to meet shopper needs, it is practicing ________ marketing.
A) niche
B) mass
C) local
D) segmented
E) trigger-based

Accepted Answer

Local marketing involves tailoring the marketing mix (product, price, promotion, and place) to meet the needs and preferences of local customers. Customizing merchandise store by store is a great example of local marketing.

Question 2

________ marketing is more suited for products that vary in design.
A) Mass
B) Local
C) Direct
D) Differentiated
E) Individual

Accepted Answer

Differentiated marketing is best suited for products that vary in design as this approach allows for tailoring marketing efforts to specific segments of the target market based on their needs and preferences for the different product variations.

Question 3

The relative power of buyers affects segment attractiveness.

Accepted Answer

If buyers have a high level of power, they can negotiate lower prices, better quality products, or better terms and conditions from the sellers. This can reduce the profitability of the segment and make it less attractive. On the other hand, if buyers have a low level of power, sellers can dictate the terms and conditions of the sale and increase their profitability, making the segment more attractive.

Question 4

A company will always choose the largest and fastest-growing segments as the most attractive for it to enter.

Accepted Answer

The answer of A company will always choose the largest...

Question 5

Which of the following marketing strategies is most suitable for smaller firms with limited resources?
A) mass marketing
B) undifferentiated marketing
C) niche marketing
D) differentiated marketing
E) one-to-one marketing

Accepted Answer

Niche marketing is the most suitable strategy for smaller firms with limited resources. This strategy allows the firm to focus their resources and efforts on a specific segment of the market that has unique needs and preferences. By targeting a niche market, the firm can differentiate themselves from competitors and potentially achieve higher profits with lower marketing expenses. Mass marketing, undifferentiated marketing, and differentiated marketing require larger marketing budgets and resources, while one-to-one marketing is more suitable for larger firms with extensive customer data and personalized marketing capabilities.

Question 6

A catalog retailer in the United States has identified African American professionals between the ages of 35 and 45 as a group of potential customers for its products. The retailer plans to direct its marketing efforts toward this group of consumers. Which of the following market segmentation variables did the catalog retailer most likely use?
A) demographic
B) psychographic
C) user status
D) loyalty status
E) usage rate

Accepted Answer

The catalog retailer used demographic segmentation by identifying African American professionals between the ages of 35 and 45 as a potential customer group based on their age and race. Demographic segmentation divides the market based on characteristics such as age, gender, income, race, education, occupation, etc.

Question 7

A public relations firm tailors its advertising and promotional services according to the needs and preferences of specific customers. This exemplifies ________.
A) trigger-based marketing
B) mass marketing
C) segmented marketing
D) individual marketing
E) concentrated marketing

Accepted Answer

The answer of A public relations firm tailors its advertising...

Question 8

________ marketing is more suited for uniform products, such as grapefruit or steel.
A) Niche
B) Undifferentiated
C) One-to-one
D) Trigger-based
E) Local

Accepted Answer

Undifferentiated marketing is a mass marketing approach that is best suited for uniform products, where there is no need for segmentation or targeting.

Question 9

Shine Enterprises mass produces an all-purpose floor cleaner that is aimed at the whole market. This firm uses a(n) ________ marketing strategy.
A) segmented
B) undifferentiated
C) individual
D) niche
E) one-to-one

Accepted Answer

The firm is using an undifferentiated marketing strategy by mass producing an all-purpose floor cleaner aimed at the entire market, without targeting any specific segments or niches.

Question 10

Rex Steelworks makes steel sheets which the firm markets and sells to companies all over the world. Which of the following marketing strategies is most suitable for Rex Steelworks?
A) one-to-one marketing
B) undifferentiated marketing
C) individual marketing
D) local marketing
E) trigger-based marketing

Accepted Answer

The answer of Rex Steelworks makes steel sheets which the...

Question 11

Using an undifferentiated marketing strategy, a firm might decide to target several market segments and designs separate offers for each.

Accepted Answer

Undifferentiated marketing strategy is also known as mass marketing, where a firm targets the entire market with a single product or offer without segmenting it. The statement given in the question describes a differentiated marketing strategy, where the firm designs separate offers for each market segment.

Question 12

Refer to the scenario below to answer the following question(s).
Ruben Delgado was making wooden pens and pencils, which had unique engravings, as a hobby until Simon Yoder recognized Ruben's talent. Simon 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 students! Ruben Delgado had never thought of marketing his talent, but Simon's enthusiasm and the recent sales were enough to change his mind.
With limited resources, Ruben contacted three additional specialty shops within 100 miles that 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. Ruben was ecstatic! "I figured business would slow down after that," Ruben 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. Ruben was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Ruben Delgado 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," Ruben added. He decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Ruben 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," Ruben explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Ruben 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, Ruben was most likely using ________ marketing.
A) mass
B) trigger-based
C) concentrated
D) segmented
E) individual

Accepted Answer

Ruben was targeting a specific group of customers (specialty shops near schools) within a limited geographic area, which is the definition of concentrated marketing. He was not trying to reach a wide audience through mass marketing, nor was he specifically targeting individuals through individual marketing. He also did not use trigger-based marketing, which involves targeting customers based on specific behaviors or actions. While he did have multiple customers, he was focused on one specific group, so his approach was not segmented marketing.

Question 13

Jean Malone, a market researcher, recently found that most people in Bradburg County purchase automobiles with predominantly functional designs and prefer darker colors. Which of the following marketing strategies should Jean most likely recommend to an automobile dealer interested in opening a dealership in Bradburg County?
A) one-to-one marketing
B) undifferentiated marketing
C) segmented marketing
D) individual marketing
E) direct marketing

Accepted Answer

The answer of Jean Malone, a market researcher, recently found...

Question 14

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

This statement is true. When evaluating market segments, companies should consider the size and growth potential of the segment, the attractiveness of the competitive landscape within the segment, and whether the objectives and resources of the company align with the segment.

Question 15

When order requests come in, the designers of Titus Furniture often go to a client's location to note their requirements, budget, and expected date of delivery. In this way, Titus Furniture is successful in tailor-making products for its customers. This is an example of ________.
A) market diversification
B) undifferentiated marketing
C) mass customization
D) differentiated marketing
E) trigger-based marketing

Accepted Answer

The scenario described is an example of mass customization, as Titus Furniture is customizing their products to meet the specific needs and preferences of individual customers. This approach allows them to differentiate themselves from competitors and offer unique value to their clients.

Question 16

If Ruben 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 designing products and services according to the individual needs and preferences of customers, often through one-to-one interactions.

Question 17

A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.

Accepted Answer

This statement accurately defines what a target market is.

Question 18

GamaPix makes point-and-shoot cameras and handycams for amateur photographers and hobbyists. It also has a separate line of cameras dedicated to professional photographers. Additionally, it designs separate offers for each segment. Which of the following marketing strategies does GamaPix most likely use in this instance?
A) mass marketing
B) differentiated marketing
C) individual marketing
D) local marketing
E) direct marketing

Accepted Answer

GamaPix is using differentiated marketing by designing separate offers for amateur/hobbyist and professional photographers. This strategy involves targeting different segments with customized marketing mixes.

Question 19

Market targeting can bring up concerns about privacy and abuse in all of the following ways EXCEPT ________.
A) when marketing toward children
B) when entertainment and commercial content blend
C) when customers opt in to receive focused content
D) when deceptive messaging is used
E) when e-mails are personalized based on Internet searches by the customer

Accepted Answer

Customers who opt in to receive targeted content have given explicit permission for their information to be used for marketing purposes. This is not a privacy or abuse concern, as long as the company is transparent about how the information will be used and respects the customer's preferences. The other choices (A, B, D, E) all involve potential issues with privacy and abuse, such as advertising to vulnerable populations (children), blurring the line between advertising and entertainment, using deception to manipulate customers, and using personal information without explicit consent.

Question 20

________ is the process by which firms interact one-to-one with masses of customers to design products and services tailor-made to individual needs.
A) Product diversification
B) Micromarketing
C) Mass customization
D) Differentiated marketing
E) Local marketing

Accepted Answer

Mass customization is the process where firms interact with masses of customers to design products and services tailor-made to individual needs. This allows organizations to provide unique offerings that cater to the particular preferences of each customer, leading to higher customer satisfaction and loyalty. The process of mass customization requires companies to collect data on individual customers, which can be used to personalize products/services, and to build flexible production systems that allow for customization without significantly increasing costs.

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

When a company customizes its merchandise store by store to meet shopper needs, it is practicing ________ marketing.

________ marketing is more suited for products that vary in design.

The relative power of buyers affects segment attractiveness.

A company will always choose the largest and fastest-growing segments as the most attractive for it to enter.

Which of the following marketing strategies is most suitable for smaller firms with limited resources?

A public relations firm tailors its advertising and promotional services according to the needs and preferences of specific customers. This exemplifies ________.

________ marketing is more suited for uniform products, such as grapefruit or steel.

Shine Enterprises mass produces an all-purpose floor cleaner that is aimed at the whole market. This firm uses a(n) ________ marketing strategy.

Rex Steelworks makes steel sheets which the firm markets and sells to companies all over the world. Which of the following marketing strategies is most suitable for Rex Steelworks?

Using an undifferentiated marketing strategy, a firm might decide to target several market segments and designs separate offers for each.

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

When order requests come in, the designers of Titus Furniture often go to a client's location to note their requirements, budget, and expected date of delivery. In this way, Titus Furniture is successful in tailor-making products for its customers. This is an example of ________.

If Ruben interacted one-to-one with his customers to design his products and services according to individual needs, he would be practicing ________.

A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.

Market targeting can bring up concerns about privacy and abuse in all of the following ways EXCEPT ________.

________ is the process by which firms interact one-to-one with masses of customers to design products and services tailor-made to individual needs.