Question 1

A segment is less attractive if it ________.

Accepted Answer

A segment with many strong and aggressive competitors is less attractive because it will be difficult for a new entrant to gain market share and compete effectively. This will lead to lower profitability and higher risk.

Question 2

Why do companies opt for market segmentation?

Accepted Answer

The answer of Why do companies opt for market segmentation?...

Question 3

Which of the following is LEAST relevant when a firm evaluates different market segments?

Accepted Answer

The core competencies of competitors may be important in evaluating competitive intensity within a particular market segment, but it is not directly relevant in evaluating the potential of different market segments themselves.

Question 4

________ marketing tailors brands and promotions to the needs and wants of regional customer groups, such as cities, neighborhoods, and even specific stores.

Accepted Answer

Local marketing focuses on specific regional customer groups, tailoring promotions and advertisements to their unique needs and wants. This can include targeting specific neighborhoods or even individual stores within a region. Local marketing allows brands to connect with customers on a more personal level and can be a highly effective way to build customer loyalty within a particular region.

Question 5

________ is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.

Accepted Answer

Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. It involves gathering data on individual customer preferences and behavior and using that information to create targeted marketing campaigns. Micromarketing is becoming increasingly common as companies seek more personalized and efficient ways to reach consumers in a crowded marketplace.

Question 6

Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies?

Accepted Answer

Sanguine Services is using concentrated marketing, which focuses on a specific market segment or a niche market. This strategy allows them to utilize their limited resources to target a large share of two small market segments, rather than spreading their resources thinly over a larger market.

Question 7

Market targeting is ________.

Accepted Answer

Market targeting refers to the process of evaluating and selecting attractive market segments to serve. This involves analyzing the needs and characteristics of different groups of buyers and deciding which segments are most viable for the company to pursue. Once the company has identified its target segments, it can develop marketing strategies and mixes to effectively reach and satisfy the needs of these buyers. Options A, B, D, and E refer to other aspects of the marketing process, but they do not specifically address the concept of market targeting.

Question 8

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each is known as ________.

Accepted Answer

Differentiated marketing is a strategy in which a firm targets multiple market segments and creates unique marketing offers for each segment. This allows the firm to better meet the needs and preferences of different customer groups, while also potentially increasing overall sales and profitability. Mass marketing, in contrast, involves creating a single marketing offer that appeals to the entire market without any differentiation. Concentrated marketing involves targeting a single market segment, while individual marketing involves tailoring products and services to the specific needs of individual customers. Cross-marketing typically refers to the promotion or sale of complementary products to customers of a related product, and is not a market-coverage strategy.

Question 9

Andrew Levitt runs a retail store in Norristown. Andrew's store stocks cold weather products as Norristown mostly has sub-zero temperatures. Which of the following is evident here?

Accepted Answer

Andrew's store stocks cold weather products specifically for the Norristown market, which is a local area. This indicates local marketing.

Question 10

Several structural factors affect long-run segment attractiveness. These include all of the following EXCEPT ________.

Accepted Answer

The segment not matching the company's long-run objectives is not a structural factor affecting segment attractiveness; it is more related to strategic alignment with company goals.

Question 11

Describe how marketers use multiple segmentation bases to their advantage.

Accepted Answer

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Question 12

Which of the following is the reason a company may choose not to focus on the largest, fastest-growing segments?

Accepted Answer

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Question 13

Which of the following is a drawback of local marketing?

Accepted Answer

Local marketing often leads to a reduction in economies of scale, which can result in higher manufacturing costs. This is because the production process is tailored to the specific needs of a local market, which is generally smaller than a larger, national or international market. As a result, the cost per unit of the product tends to increase, which can make it less profitable for the firm.

Question 14

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

Accepted Answer

A target market is a specific group of customers with common characteristics that a company seeks to serve through their marketing efforts. The other options are not suitable as they either refer to different concepts (marketing channel, distribution channel) or are not related to the marketing strategy of a company (citizen-action group, customer franchise).

Question 15

Why do international markets need to be segmented?

Accepted Answer

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Question 16

Which of the following is a disadvantage of using a differentiated marketing strategy?

Accepted Answer

Implementing a differentiated marketing strategy often requires targeting multiple segments with specific marketing campaigns and product offerings. This can increase the costs of doing business, including advertising and promotion, research and development, and production. Therefore, implementing a differentiated marketing strategy may not be feasible for smaller companies with limited budgets.

Question 17

What are the primary requirements for effective market segmentation?

Accepted Answer

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Question 18

________ refers to a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

Accepted Answer

Undifferentiated marketing, also known as mass marketing, ignores market segment differences and treats the entire market as one homogeneous group. This strategy aims to appeal to the widest possible audience with a single marketing mix, rather than customizing offerings for different segments. This approach is often used for products that have universal appeal or are relatively low-priced, such as basic food items, household cleaners, or low-end clothing.

Question 19

Which of the following is true about the concentrated marketing strategy?

Accepted Answer

The concentrated marketing strategy is also known as niche marketing, which involves targeting a specific segment of customers with specialized products or services. While this strategy can lead to higher profit margins and customer loyalty, it also involves significant risks. Companies that rely on a few segments for all of their business will suffer if a segment turns sour, as they have limited diversification. Therefore, choice A is true, and the other choices are incorrect.

Question 20

With a(n) ________ marketing strategy, a firm goes after a large share of one or a few smaller niches.

Accepted Answer

A concentrated marketing strategy, also known as niche marketing, involves targeting a specific segment of the market with unique needs or preferences. Rather than trying to appeal to the entire market, the company focuses its resources on one or a few smaller niches. This strategy can be very effective in reaching customers with specific needs and generating customer loyalty.

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