Question 1

One reason marketers use market segmentation as a tool is that once completed,the process need not be repeated.

Accepted Answer

Market segmentation is an ongoing process.Because external forces may change something in the marketer's environment,marketers must be able to react to those changes as they occur.

Question 2

Ford Motor Company produces passenger cars,commercial trucks and specialty vehicles,performance vehicles,and race cars.Ford uses a procedure called _____ to divide its large market.
A) micromarketing
B) positioning
C) market segmentation
D) cannibalization
E) perceptual mapping

Accepted Answer

Dividing one large market into divisions based on a variable like product usage is called market segmentation.

Question 3

Marketers are rediscovering that the "one-size-fits-all" approach to marketing is still relevant.

Accepted Answer

The one-size-fits-all marketing is no longer relevant.Consumers want to be treated as the individuals they are,with their own unique sets of needs and wants.

Question 4

Home Cookin' Catering would like to improve customer satisfaction and increase repeat business.When you ask the owners to describe a typical customer,they say it is impossible and explain that with corporate functions,family affairs,and fund-raisers,they do not have a typical customer.You suggest it is time for market segmentation because:
A) it will enable them to build an accurate description of customer needs by group and to design a marketing mix to fit each segment
B) the company needs to reduce the size of the market it serves
C) the company needs to learn how to group these markets together into one market to serve all of them adequately
D) it will help develop a generalized definition of the market as a whole and reveal the optimal marketing mix for this market
E) this will position the company in the minds of its consumers as compared to its competitors

Accepted Answer

The purpose of segmentation is to group similar consumers and to serve their needs with a specialized marketing mix.

Question 5

The Belly Cast kit by Proud Body helps an expectant mom to make a cast of her pregnant body,decorate it and keep it for a lifetime.The primary market segment for the Belly Cast kit is:
A) all parents
B) expectant moms
C) recently married couples
D) parents of toddlers
E) collectors of unusual art

Accepted Answer

One way to segment the market would be stage in the family life cycle.

Question 6

A group of middle school students stop by a bicycle store.The store has just received a new shipment of high-end racing bicycles.The bicycles range in price from $1,200 to $3,000.All of the students want one of these new bikes,but none has the means to buy one.Is this group of consumers a potential market for the expensive bikes?
A) Yes,they are a potential market since they are all about the same age.
B) No,they do not have the ability to purchase at this time.
C) No,to qualify as a market,they must need the product.
D) Yes,they are a market because this product could satisfy their consumer wants and desires.
E) Yes,they are a market because this group shares relatively similar product needs and purchasing characteristics.

Accepted Answer

A market is a group of people or organizations that has wants and needs that can be satisfied by particular product categories,has the ability to purchase these products,and is willing to exchange resources for the products.There is no suggestion of ability in this case.

Question 7

A market is people or organizations that have:
A) the ability,willingness,and power to buy
B) a medium of exchange and products they desire
C) needs and wants and an ability and willingness to buy
D) unmet needs or wants and products or services that satisfy those unmet needs or wants
E) communication,financial,and capital resources

Accepted Answer

A market is defined as having four imperative characteristics: people or organizations,needs and wants,ability,and willingness to buy.

Question 8

Dakin Farms in Vermont uses mass marketing.Marketers would call the strategy an undifferentiated targeting strategy.

Accepted Answer

Undifferentiated targeting strategy refers to a mass marketing approach where a company offers the same product or service to the entire market with little or no customization. Since Dakin Farms uses mass marketing, it can be considered an undifferentiated targeting strategy.

Question 9

A product's positioning could be based on product users.

Accepted Answer

Product positioning can be based on the characteristics and preferences of the target market or users. This helps the product to be more appealing and attractive to the intended audience.

Question 10

A(n)_____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have relatively similar product needs.
A) market universe
B) market segment
C) aggregated market
D) segmentation base
E) population sample

Accepted Answer

This is the definition of a market segment.

Question 11

Consumers' perceptions regarding a product's position cannot be changed.

Accepted Answer

Repositioning is changing consumers' perceptions of a brand in relation to competing brands.

Question 12

The purpose of market segmentation is to:
A) reduce the market down to a specific size that the firm can handle
B) divide the market into equal size and profit regions for sales territories
C) group a large number of markets together enabling a company to serve them simultaneously
D) develop a generalized definition of the market as a whole
E) enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups

Accepted Answer

The purpose of segmentation is to group similar consumers and to serve their needs with a specialized marketing mix.

Question 13

Product differentiation is a positioning strategy.

Accepted Answer

Product differentiation is a strategy that focuses on creating a unique product or service that stands out from competitors to attract a specific target market. It is a positioning strategy as it involves positioning the product or service as distinct and superior to alternatives in the minds of the target customers.

Question 14

Procter & Gamble markets several different brands of laundry detergent,such as Tide,ERA,Gain,and Dreft,each targeting a different market segment.This is an example of concentrated targeting.

Accepted Answer

This illustrates a multisegment targeting strategy.

Question 15

The first step in segmenting a market is to choose a basis or bases for segmenting the markets.

Accepted Answer

The first step is to select a market or product category for study.

Question 16

Small firms often adopt a concentrated marketing strategy to compete effectively with larger firms.

Accepted Answer

Small firms may not have the resources to compete with larger firms in terms of broad marketing campaigns. Therefore, they often adopt a concentrated marketing strategy that focuses on a specific market segment or niche where they can compete effectively. This approach allows small firms to differentiate themselves from larger competitors and build stronger relationships with their target market.

Question 17

_____ is the process of dividing a market into meaningful groups that are relatively similar and identifiable.
A) Perceptual mapping
B) Positioning
C) Micromarketing
D) Market sampling
E) Market segmentation

Accepted Answer

The is the definition of market segmentation.

Question 18

A _____ is a group of people or organizations that has wants and needs that can be satisfied by particular product categories,has the ability to purchase these products,and is willing to exchange resources for the products.
A) firm
B) buyer
C) market
D) consumer
E) target

Accepted Answer

A market refers to a group of people or organizations with similar needs and wants that can be satisfied by specific products. They have the ability to purchase these products, and are willing to exchange resources (such as money) for them. The other options are too specific or too broad to fully encompass the definition of a market.

Question 19

A product's position refers to where it is located on store shelves.

Accepted Answer

Position is the place a product,brand,or group of products occupies in consumers' minds relative to competing offerings.

Question 20

Increasing share of customer means getting more customers.

Accepted Answer

Increasing share of customer means selling more products to each customer,not getting more customers.

Quiz 8: Segmenting and Targeting Markets

One reason marketers use market segmentation as a tool is that once completed,the process need not be repeated.

Ford Motor Company produces passenger cars,commercial trucks and specialty vehicles,performance vehicles,and race cars.Ford uses a procedure called _____ to divide its large market.

Marketers are rediscovering that the "one-size-fits-all" approach to marketing is still relevant.

The Belly Cast kit by Proud Body helps an expectant mom to make a cast of her pregnant body,decorate it and keep it for a lifetime.The primary market segment for the Belly Cast kit is:

A market is people or organizations that have:

Dakin Farms in Vermont uses mass marketing.Marketers would call the strategy an undifferentiated targeting strategy.

A product's positioning could be based on product users.

A(n) _____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have relatively similar product needs.