Question 1

Which of the following targeting strategies results in cannibalization of products?

Accepted Answer

A multisegment targeting strategy can lead to cannibalization because it involves targeting multiple market segments with different products, which can result in the new products taking sales away from the company's existing products.

Question 2

In the context of customer relationship management trends,which of the following statements is true of personalization?

Accepted Answer

Personalization involves treating customers as individuals who have their own unique sets of needs and wants. It focuses on tailoring products, services, and experiences to match specific customer preferences and behavior patterns. This approach helps to enhance customer satisfaction, loyalty, and advocacy. It also reduces the likelihood of customer churn and increases the lifetime value of customers to a business. Mass-media approaches, rewards, and decision-making time are not primary aspects of personalization.

Question 3

A firm using a(n)_____ essentially adopts a mass-market philosophy,viewing the market as one big market with no individual segments

Accepted Answer

Undifferentiated targeting strategy, also known as mass marketing, involves treating the entire market as a single segment with no consideration for individual differences in consumer preferences or needs. This approach assumes that all consumers have similar needs and preferences and focuses on developing a single marketing mix that will appeal to as many consumers as possible.

Question 4

Starlight Jewelry sends Lauren a birthday greeting card along with a pendant as a token of appreciation for shopping frequently at its store.The trend portrayed in this customer relationship management technique is _____.

Accepted Answer

The technique of sending a birthday greeting card and a gift to a loyal customer is an example of customer relationship management focused on building customer loyalty.

Question 5

Wesley Electronics Inc.is a company that manufactures electronic gadgets.The marketing managers of the company spend a great deal of money on advertising in order to create awareness of the company's products among potential customers.They employ various methods of advertising,such as print,broadcast,and online advertising.According to the steps of market segmentation,Wesley Electronics Inc.is most likely:

Accepted Answer

Wesley Electronics Inc. is focusing on advertising, which is part of designing and implementing marketing mixes to reach and communicate with their target market segments.

Question 6

In the context of purchasing profiles,_____ are business customers who consider numerous suppliers,solicit bids,and study all proposals carefully before selecting one.

Accepted Answer

Optimize refers to business customers who thoroughly evaluate multiple suppliers, solicit bids, and carefully study proposals before making a selection, aiming to find the best possible option.

Question 7

The editorial board of Gamers' Page,a magazine that primarily caters to people who are enthusiastic about sports and gaming,targets people who enjoy games.This type of market segmentation used by the editorial board of Gamers' Page is an example of _____.

Accepted Answer

The market segmentation used by the editorial board of Gamers' Page is psychographic segmentation, as they are targeting people who are enthusiastic about sports and gaming, which is a shared interest and preference. Usage-rate segmentation would focus on how frequently customers use the product or service, while geographic segmentation would be based on the location of the customer. Benefit segmentation would focus on the unique benefits or needs of the customer.

Question 8

In the context of a buying process,which of the following statements is true of satisficers

Accepted Answer

Satisficers are buyers who have a specific set of requirements and they are satisfied with the first supplier that meets those requirements. They do not spend too much time researching and evaluating different options, rather they rely on existing relationships or familiar suppliers to fulfill their needs. As such, option C is the correct choice as it highlights this behavior.

Question 9

Companies that successfully implement customer relationship management tend to

Accepted Answer

Customer relationship management involves understanding and meeting the individual needs and preferences of each customer. This requires customization of goods and services, rather than assuming all customers have the same needs. The use of database technology is also essential for effective customer relationship management. Maximizing the role of distributors and assuming similar needs would not be effective strategies for successful implementation of CRM.

Question 10

Which of the following is a reason why consumer goods companies take a regional approach to marketing?

Accepted Answer

A regional approach to marketing allows companies to tailor their messaging and product offerings to specific demographics and cultural nuances in different regions. Baby boomers and seniors may respond differently to marketing strategies and product features than younger generations, so a regional approach can help companies more effectively target these demographics.

Question 11

In order to attract customers who are blue-collar workers,Prisly Inc.,a laundry detergent manufacturer,introduced a liquid detergent that easily removes tough stains.Soon after,the management noticed that there was a significant drop in the sales of its detergent powder as the company's loyal customers,who previously purchased the detergent powder,started purchasing the more effective liquid detergent.As a result,Prisly Inc.was forced to reduce production of its detergent powder.In this scenario,it is evident that Prisly Inc.has adopted a(n)_____.

Accepted Answer

Prisly Inc. has adopted a multisegment targeting strategy because it has identified and targeted two distinct customer segments: blue-collar workers and its loyal customers who previously purchased the detergent powder.

Question 12

Tennot Designs Inc.manufactures and sells clothes and shoes.Which of the following strategies will the company most likely employ if idecides to adopt a concentrated targeting strategy?

Accepted Answer

A concentrated targeting strategy involves focusing on a specific segment of the market with specialized product offerings. In this case, the company would focus on satisfying the clothing needs of people who are extremely tall, which would differentiate them from their competitors and position them as experts in this area. This strategy allows the company to tailor their marketing efforts and product development to the specific needs and preferences of this target market, potentially leading to higher customer satisfaction and loyalty. The other options do not align with a concentrated targeting strategy as they either offer products for a broad range of customers (Option A) or focus on customization for individual customers (Option D). Option B also does not align with a concentrated targeting strategy as it does not focus on a specific segment of the market.

Question 13

Which of the following statements is true of a concentrated targeting strategy?

Accepted Answer

A concentrated targeting strategy involves focusing on one or a few well-defined market segments, rather than the entire market. This strategy is often adopted by small firms to compete effectively with larger firms that target a broader market. Option A is incorrect as a concentrated strategy focuses on only one or a few segments, not multiple segments at once. Option C is incorrect as a concentrated strategy is the opposite of a mass-market strategy. Option D is incorrect as cannibalization occurs when a new product from a company cuts into sales of its own existing product, which is not necessarily a result of a concentrated targeting strategy.

Question 14

Laelle Chocolates Inc.is a confectionery company that manufactures candies.It does not use specific strategies to target children while marketing its products.Instead,it uses the same strategies to promote its candies among all consumers in the market.This is an example of a(n)_____.

Accepted Answer

Laelle Chocolates Inc. is using an undifferentiated targeting strategy as it promotes its candies among all consumers in the market without using any specific strategy to target children.

Question 15

A concentrated targeting strategy differs from an undifferentiated targeting strategy in that a concentrated targeting strategy:

Accepted Answer

A concentrated targeting strategy involves selecting a specific market niche to target its marketing efforts, rather than viewing the market as one big market with no individual segments. This strategy is different from an undifferentiated targeting strategy, which uses a common marketing mix for the entire market. It can also lead to less cannibalization of products, as the company is focused on a specific segment rather than trying to appeal to everyone.

Question 16

In the context of strategies for selecting target markets,which of the following is a disadvantage of an undifferentiated targeting strategy?

Accepted Answer

An undifferentiated targeting strategy often leads to generic products that do not specifically appeal to any particular market segment, resulting in unimaginative offerings.

Question 17

The customer relationship management technique that focuses on thanking customers for their business to a company exemplifies the trend of _____.

Accepted Answer

Thanking customers for their business is a way to build customer loyalty and retain them. Therefore, it exemplifies the trend of loyalty in customer relationship management.

Question 18

Which of the following is an advantage of a multisegment targeting strategy

Accepted Answer

Multisegment targeting strategy allows a company to enter different market segments and tailor their products and marketing strategies to each of those segments. This can lead to economies of scale in manufacturing and marketing as the company can produce and promote products that are specific to each segment. This strategy can also help in satisfying the needs of different niche markets. However, it may increase the risk of product cannibalization and may require additional costs in product design, marketing research, and management.

Question 19

Kirksand Airlines is well-known for providing excellent service and personalized attention to its flyers.The staff listen carefully to the flyers' wants and needs.If a flyer had any specific requests,the staff member would see to it that the flyer's needs are immediately attended to.In this scenario,on which of the following trends has Kirksand Airlines based its customer relationship management?

Accepted Answer

Kirksand Airlines has based its customer relationship management on the trend of personalization, which involves providing individualized attention and fulfilling specific requests of the flyers.

Question 20

A firm that adopts an undifferentiated targeting strategy assumes that

Accepted Answer

An undifferentiated targeting strategy assumes that individual customers have similar needs that can be met with a common marketing mix. This means that the firm targets the entire market with one product or service offering, ignoring any differences among customer segments. This strategy can be effective when there are low levels of competition and the product or service has broad appeal, but it can also result in low customer satisfaction and missed opportunities to address specific customer needs.

Quiz 8: Segmenting and Targeting Markets