Question 1

KFC is a popular fast food restaurant in North America. It opened its 500th restaurant in China in 2001 and is more popular than McDonald's in that country. One of the reasons is that when the company entered the Chinese market, it recruited its managers from Taiwan and the Chinese communities in the U.S. and Canada. This has been Useful in coping with local Chinese governments and developing a distinctly different Chinese strategy, which includes Chicky, a friendly chicken character that has a strong appeal for children. To succeed in China, KFC used:

Accepted Answer

KFC used product differentiation by developing a distinctly different strategy for the Chinese market, including creating a character, Chicky, to appeal to children, which helped them stand out from competitors like McDonald's.

Question 2

Henry Ford developed his Model T, a car he felt would satisfy the needs of everyone. Ford said, "They can have it in any colour, as long as it's black." His strategy was Simple: focus in the economies of scale created by mass production. Ford's strategy was also known as a:

Accepted Answer

Ford's strategy was to produce a single, affordable car using mass production techniques, which allowed him to reduce costs and sell the car at a lower price point. This strategy is known as a mass marketing strategy, as it targeted a broad audience rather than a specific niche or segment.

Question 3

At a Hallmark store you can find several different brands of greeting cards, including Fresh Ink, Nature's Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cards -
All made by Hallmark for sale in its stores. Hallmark uses a________  Strategy to reach several different market segments.

Accepted Answer

Hallmark's use of different brands and styles of cards, each with their own unique feel and target audience, demonstrates a product differentiation strategy. This allows them to appeal to different market segments and cater to a wide range of consumer preferences.

Question 4

Canadian Tourism Commission developed their Explorer Quotient segments to help:

Accepted Answer

The answer of Canadian Tourism Commission developed their Explorer Quotient...

Question 5

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 is targeted to a slightly different market segment. The maker of Alka-Seltzer is using:

Accepted Answer

Product differentiation involves creating variations of a product to target different market segments, which is what Alka-Seltzer is doing by offering different versions of their product for specific needs.

Question 6

The Canadian Tourism Commission identified the segment "Cultural Explorers" who are:

Accepted Answer

The answer of The Canadian Tourism Commission identified the segment...

Question 7

When Procter & Gamble introduced Crest toothpaste, the first fluoride toothpaste, it was intended for use by children and was therefore given a child-appealing bubble gum flavour. Sometime later, the same basic formula was given a fresh, minty flavour to appeal to adults. What is this marketing strategy called?

Accepted Answer

This marketing strategy is called product differentiation, which involves creating unique features or characteristics of a product to differentiate it from competitors and appeal to different target markets. In this case, Crest toothpaste was differentiated through flavors to appeal to children and adults. Product extrapolation refers to extending the product line to new markets or categories, product sampling involves giving away free samples to promote a product, and usage segmentation involves targeting customers based on how they use the product.

Question 8

When Comfy Covers Ltd., a BC fiber pillow manufacturer offers firm pillows for side sleepers, medium pillows for back sleepers, and soft pillows for stomach sleepers, what is this marketing strategy called?

Accepted Answer

This marketing strategy is called product differentiation, as Comfy Covers Ltd. is offering different products (pillows) to different segments of customers (side, back, and stomach sleepers) based on their needs and preferences.

Question 9

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 analyzing various buyers' needs and characteristics to create specific segments, which allows a company to tailor its marketing program to meet the unique needs of each segment. This link between market segmentation and the marketing program helps a company increase sales, profits, and customer satisfaction by creating targeted messages and offerings that resonate with the specific segment. While top-level management, government regulations, and self-regulatory industry standards may all impact a company's marketing program, they are not directly linked to the process of market segmentation and target selection.

Question 10

KFC has modified its product to satisfy different market segments. In Holland, the mashed potatoes are replaced with a potato-and-onion croquette, and in Thailand, a customer gets fresh rice with soy or sweet chili sauce with his or her chicken. KFC uses:

Accepted Answer

KFC is using product differentiation by modifying its product offerings to appeal to different market segments.

Question 11

The use of the Explorer Quotient by the Canadian Tourism Commission is to help tourism operators better market their:

Accepted Answer

The Explorer Quotient is a tool used to understand travelers' preferences and behaviors, allowing tourism operators to tailor their products to better meet the needs and desires of different types of tourists.

Question 12

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

Accepted Answer

The process of market segmentation and target selection helps organizations to understand and meet the specific needs of various groups of consumers. This understanding can then be applied to the organization's marketing program, which includes product development, pricing, promotion, and distribution strategies. Therefore, the link between market segmentation and target selection and the organization's marketing program is crucial in meeting the needs of consumers and achieving business objectives.

Question 13

Some Timex wristwatches can be purchased for less than $30; some Rolex wristwatches carry a price tag of several thousand dollars. In general, consumers view Timex watches as being dependable, relatively accurate, and inexpensive. The Rolex brand tends to be perceived as an expensive status symbol. Timex watches can be purchased in drug stores, discount stores, and department stores in all sizes of Communities. Rolex watches are distributed more selectively, and are often available only in fine jewellery stores or specialty shops. By using distinctly different pricing And distribution strategies, the marketers of Timex and Rolex watches have attempted to:

Accepted Answer

The marketers of Timex and Rolex watches have used distinct pricing and distribution strategies to differentiate their products in the market. Timex is positioned as a dependable and affordable brand, while Rolex is positioned as a luxury and status symbol brand. This is an example of product differentiation strategy.

Question 14

Whirlpool aggregates prospective customers who are all interested in a low-cost washing machine and respond positively to mail-out marketing material. This process is referred to as:

Accepted Answer

Market segmentation is the process of dividing a market into smaller groups of customers with similar needs or characteristics. In this case, Whirlpool is targeting a specific segment of customers who are interested in low-cost washing machines and have responded positively to mail-out marketing material. By doing this, Whirlpool can tailor their marketing efforts and product offerings to better meet the needs of this specific segment, potentially leading to increased sales and profitability.

Question 15

To be identified as a market segment, its members must:

Accepted Answer

Market segmentation is the process of dividing a larger market into smaller groups of consumers who have similar needs, wants and characteristics. To be identified as a market segment, its members must have common needs and respond similarly to marketing actions. This helps companies to design and offer products that meet the specific needs of the targeted segment and to create effective marketing strategies that resonate with them. Option A is incorrect because having different needs is not enough; they must also respond similarly to market actions. Option B is incorrect because market share and buying power are not the only factors that define a segment. Option D is incorrect because potential growth is not a defining characteristic of a market segment.

Question 16

Canadian Tourism Commission currently targets all of the following market segments, except:

Accepted Answer

The Canadian Tourism Commission currently targets Free Spirits, Cultural Explorers, Hedonistic Travellers, and Authentic Experiencers.

Question 17

The Canadian Tourism Commission identified the segment "Free Spirits" who are:

Accepted Answer

The "Free Spirits" segment is characterized by being highly social and open-minded, making them enthusiastic and spontaneous travelers.

Question 18

PepsiCo is assessing whether to launch a brand new type of antioxidant water product. The marketing department has described a selection of the population as: "relatively homogeneous collections of prospective buyers." The marketing department is Describing what?

Accepted Answer

The marketing department's description of "relatively homogeneous collections of prospective buyers" indicates that they are describing market segments, which are groups of consumers with similar needs, characteristics, or behaviors.

Question 19

Market segmentation involves linking ________ to an organization's ________.

Accepted Answer

Market segmentation involves identifying and analyzing the needs and characteristics of different groups of buyers, and then linking these groups to an organization's marketing program. By understanding the unique needs of each market segment, organizations can create specialized marketing strategies and tailor their product offerings to meet the specific needs of each segment. This can lead to more effective marketing, increased customer satisfaction, and higher sales and profits.

Question 20

The Canadian Tourism Commission identified the segment "Authentic Experiencers" who are:

Accepted Answer

The Canadian Tourism Commission specifically identifies "Authentic Experiencers" as being interested in local history and culture, making choice A the best answer. Choices B, C, and D may be characteristics of other travel segments, but are not identified as defining qualities of "Authentic Experiencers".

Quiz 9: Market Segmentation, Targeting, and Positioning