Question 1

A company manufactures and sells only salvage cranes.This is an example of:

Accepted Answer

Concentrated segmentation involves focusing on a single market segment, which is what the company is doing by manufacturing and selling only salvage cranes.

Question 2

A company that sells shoes has a website with a make-your-own-shoe feature.It makes a vast number of styles in every major performance category available to the customer for personalization.This is an example of:

Accepted Answer

Mass customization refers to the ability of a company to produce goods and services to meet individual customer's needs with near mass production efficiency. The make-your-own-shoe feature allows for personalization, fitting the definition of mass customization.

Question 3

A company launches a wide range of perfumes.These perfumes are designed to be combined by the user in different ways to create unique scents.This is an example of:

Accepted Answer

Mass customization involves offering products that can be tailored to individual preferences, such as allowing users to combine perfumes to create unique scents.

Question 4

A marketing strategy of selecting a single primary target market and focusing all energies on providing a product to fit that market's needs is called:

Accepted Answer

Concentrated segmentation involves focusing marketing efforts on a single, well-defined market segment, tailoring the product to meet the specific needs of that segment.

Question 5

A company has launched a milk beverage containing chocolate.It has attracted children, teenagers, and adults alike.This is an example of:

Accepted Answer

The milk beverage appeals to a broad audience without targeting specific segments, which is characteristic of undifferentiated segmentation.

Question 6

A local bakery customizes its pastries and cakes to suit individual customer wants and needs.This is an example of:

Accepted Answer

Micro marketing involves tailoring products and marketing programs to suit the tastes of specific individuals and locations, which is what the bakery is doing by customizing its pastries and cakes for individual customers.

Question 7

The concept of being "substantial and profitable" as a prerequisite for market segmentation refers to the fact that:

Accepted Answer

Segments need to have enough buying power and size to ensure that targeting them will be profitable for the firm.

Question 8

A large passenger-ship company targets only older, rich people for its round-the-world cruises.This is an example of:

Accepted Answer

The company is focusing on a specific niche market, targeting older, rich people, which is an example of concentrated segmentation.

Question 9

Kooky is a company that sells clothes.It has three different retail store formats to serve the varied needs of diverse fashion segments.This is an example of:

Accepted Answer

Differentiated segmentation involves targeting multiple market segments with different offerings, which is what Kooky is doing by having three different retail store formats to serve diverse fashion segments.

Question 10

A neighbourhood tailor makes clothes according to the requirements of each of his individual customers.This is an example of:

Accepted Answer

Micro marketing involves tailoring products or services to suit the tastes of individual customers, which is what the tailor is doing by making clothes according to each customer's requirements.

Question 11

Customer lifetime value (CLV) refers to the:

Accepted Answer

Customer lifetime value (CLV) is the total value of purchases a customer makes over their entire relationship with a company.

Question 12

Sturdy International sells its helmets to everyone in the market.There are no different strategies or products for different groups.This is an example of:

Accepted Answer

Sturdy International uses undifferentiated segmentation, meaning they do not tailor their products or marketing strategies to different market segments but instead target the entire market with a single offering.

Question 13

Kooky is a company that sells clothes.It has two brand names, Kooky and Kooky Kid.Each of these brands caters to the needs of two dissimilar market segments.There are varied strategies and products for the dissimilar groups.This is called:

Accepted Answer

Differentiated segmentation involves creating different marketing strategies and products for different market segments, which is what Kooky is doing with its two brands.

Question 14

Which of the following holds true for the term micro marketing?

Accepted Answer

Micro marketing involves tailoring products or services to suit individual customer preferences, focusing on very specific market segments or even individual customers.

Question 15

A tattoo artist creates tattoos according to the customer's specifications.This is an example of:

Accepted Answer

Micro marketing involves tailoring products or services to suit individual customer preferences, as seen with the tattoo artist customizing tattoos for each customer.

Question 16

Firms embrace differentiated segmentation because:

Accepted Answer

Differentiated segmentation allows firms to target multiple market segments with tailored strategies, increasing their overall market share and expanding their reach.

Question 17

Which of the following strategies refers to the marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups?

Accepted Answer

Undifferentiated segmentation is a marketing strategy where a firm targets the entire market with a single offer, focusing on common needs rather than differences.

Question 18

A strategy through which a firm targets several market segments with a varied offering for each is called:

Accepted Answer

Differentiated segmentation is a strategy where a firm targets multiple market segments, offering a unique product or marketing mix for each segment.

Question 19

Suppose a company sells a subscription service.Customers typically remain customers for 3 years, and they pay $20.00 per month for the service, which means $240.00 ($20.00 × 12 months) per year or $720.00 ($240.00 × 3 years) potential revenue from the customer.This is an example of:

Accepted Answer

Customer lifetime value (CLV) is the total revenue a business can expect from a single customer account throughout the business relationship, which in this case is $720 over 3 years.

Question 20

Which of the following constitutes a benefit for undifferentiated marketing strategy?

Accepted Answer

It does away with the need to develop separate strategies for different groups.

Quiz 7: Value Creation Developing New Products