Question 1

The 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 a(n):

Accepted Answer

The given scenario describes a concentrated targeting strategy where a single, primary target market is selected, and all efforts focus on providing a product that caters to that market's needs. This strategy is effective when the company's resources are limited, and it aims to penetrate a small market segment deeply.

Question 2

Mary plans to open a store in a small town north of Ontario to sell apparels, bags, and shoes.The primary target market that she considers is females between age of 15 and 50 who live close by and are taller than 6.5 feet (about 2 meters).What is the main issue with this segment?

Accepted Answer

The main issue with this segment is that it is not substantial and profitable. The requirement of being taller than 6.5 feet (about 2 meters) significantly narrows down the potential customer base, making it difficult for the store to generate enough revenue to be profitable. Additionally, limiting the target market to only females between the ages of 15 and 50 who live close by further reduces the potential customer base.

Question 3

A crane manufacturing company that solely manufactures and sells salvage cranes for salvage companies is using which strategy?

Accepted Answer

The company is using a concentrated targeting strategy because they are solely focusing on manufacturing and selling salvage cranes for salvage companies, which is a narrow and specific market segment.

Question 4

A company sells a subscription service for mowing lawns.Customers typically remain subscribed 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.In this case, the $720.00 of potential revenue is the:

Accepted Answer

The $720.00 of potential revenue is referred to as the customer lifetime value, which represents the total amount of revenue a business expects to earn from a customer throughout their entire relationship. Therefore, the best choice is E (customer lifetime value).

Question 5

Mancer is a company that sells clothes.It has three different retail store formats to serve the varied needs of diverse fashion segments.In this case, which targeting strategy is the company using?

Accepted Answer

The company is using a differentiated targeting strategy, which involves targeting multiple market segments with different products or services. In this case, the company has three different retail store formats to serve different fashion segments. This strategy allows the company to better meet the specific needs and preferences of each segment, which can lead to higher sales and customer satisfaction.

Question 6

The concept of being responsive as a prerequisite for market segmentation refers to the fact that:

Accepted Answer

Being responsive means that the customers in a market segment should react similarly and positively to a firm's offering. This is essential for effective market segmentation as it ensures that the targeted segment will be receptive to the product or service being offered, leading to higher sales and profits.

Question 7

Which of the following companies is more likely to use undifferentiated targeting strategy?

Accepted Answer

The answer of Which of the following companies is more...

Question 8

A company has launched a milk beverage containing chocolate.Since the beverage appeals to all age groups, the company develops a single strategy to attract children, teenagers, and adults alike.In this case, the company is using a(n):

Accepted Answer

The company is using an undifferentiated targeting strategy by developing a single strategy to appeal to all age groups without any specific targeting towards a particular segment.

Question 9

Firms embrace differentiated segmentation because:

Accepted Answer

Differentiated segmentation allows firms to target specific customer groups with tailored products and marketing strategies, which can increase customer loyalty and lead to a larger share of the market. This can result in increased sales and overall growth for the company.

Question 10

A large passenger-ship company targets only old rich people for its around-the-world cruises.It ensures that all its rooms are designed to be as comfortable as possible for older people.In this case, the company is using the:

Accepted Answer

The company is using a concentrated targeting strategy since it is targeting only one specific group of customers (old, rich people) and designing its rooms specifically for their comfort.

Question 11

Customer lifetime value (CLV)refers to the:

Accepted Answer

Customer lifetime value (CLV) refers to the total value of purchases made by a customer over the course of their patronage with a company. It is a calculation used by businesses to determine the potential long-term profitability of a customer and is used to inform marketing and customer retention strategies. Choices A, B, D, and E do not accurately reflect the definition of CLV.

Question 12

Sam has a roofing company.He is planning to target a new segment; cottages in Northern Quebec.The segment size in that region is 80,000 houses.He believes he could reach 1% adoption in the first year.The average selling price for shingles installation in that area is $6,000 with a profit margin of 25%.His fixed cost to target the new segment would be around $100,000.What would be the segment profit?

Accepted Answer

Total revenue in the first year = (1% * 80,000) * $6,000 = $480,000
Total profit in the first year = ($480,000 * 25%) - $100,000 = $80,000
Segment profit = Total profit in the first year * adoption rate = $80,000 * 1% = $380,000
Therefore, the segment profit would be $380,000.

Question 13

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

Accepted Answer

Undifferentiated targeting strategy is used when a firm's product or service is perceived to provide the same benefits to everyone, and there is no need to develop separate strategies for different groups. In this approach, the firm assumes that all customers have similar needs and wants and applies a single marketing mix to target the entire market.

Question 14

Which of the following is an advantage of using the undifferentiated targeting strategy?

Accepted Answer

Undifferentiated targeting strategy eliminates the need for developing separate strategies for different groups, as it focuses on the market as a whole.

Question 15

Ace Inc.is a company that sells clothes.It has two brand names, Ace 1 and Ace Kid.Each of these brands caters to the needs of two dissimilar market segments.There are varied strategies and products for the dissimilar groups.In this case, which targeting strategy is the company using?

Accepted Answer

The company is using a differentiated targeting strategy where it caters to the needs of two dissimilar market segments with varied strategies and products. This allows the company to offer products that are specific to each segment's needs and preferences, which can increase customer loyalty and sales.

Question 16

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 a(n):

Accepted Answer

Sturdy International's approach of selling its helmets to everyone in the market without different strategies or products for different groups is an example of undifferentiated targeting strategy, also known as mass marketing. In this approach, the company assumes that everyone in the market has similar needs and wants and can be satisfied with the same product, without the need for market segmentation or targeting specific groups.

Question 17

Which of the following is true of micromarketing?

Accepted Answer

Micromarketing is a marketing strategy that tailors a product or service to suit an individual customer's wants or needs. It involves segmenting the market into smaller groups based on specific characteristics, such as age, income, lifestyle, etc., and then targeting each segment with a unique marketing mix.

Question 18

The government of Ontario, like other provincial governments, charge the same fee to issue driver license.Any citizen who is eligible with get the same card and has to pay the same cost.This is an example of a(n):

Accepted Answer

The government of Ontario charges the same fee to issue driver license to all citizens who are eligible. Therefore, there is no segmentation or targeting strategy in place. It is an undifferentiated targeting strategy, which means that the same offering is provided to all customers without any differentiation.

Question 19

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

Accepted Answer

The concept of being substantial and profitable as a prerequisite for market segmentation means that a market segment should have a high enough buying power to generate substantial returns for the firm. Without substantial profits, it would not make sense for firms to dedicate resources to serve a particular market segment. Therefore, choice D - the buying power of customers in a market segment should be high enough to generate substantial returns from the market - best reflects this concept.

Question 20

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

Accepted Answer

A differentiated targeting strategy involves targeting several market segments with a different offering for each. This approach allows for a broader reach and customization for different consumer groups, which can lead to increased sales and brand loyalty.

Quiz 6: Segmentation, Targeting, and Positioning

The 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 a(n) :

Mary plans to open a store in a small town north of Ontario to sell apparels, bags, and shoes.The primary target market that she considers is females between age of 15 and 50 who live close by and are taller than 6.5 feet (about 2 meters) .What is the main issue with this segment?

A crane manufacturing company that solely manufactures and sells salvage cranes for salvage companies is using which strategy?

Mancer is a company that sells clothes.It has three different retail store formats to serve the varied needs of diverse fashion segments.In this case, which targeting strategy is the company using?

The concept of being responsive as a prerequisite for market segmentation refers to the fact that:

Which of the following companies is more likely to use undifferentiated targeting strategy?

A company has launched a milk beverage containing chocolate.Since the beverage appeals to all age groups, the company develops a single strategy to attract children, teenagers, and adults alike.In this case, the company is using a(n) :

Firms embrace differentiated segmentation because:

A large passenger-ship company targets only old rich people for its around-the-world cruises.It ensures that all its rooms are designed to be as comfortable as possible for older people.In this case, the company is using the:

Customer lifetime value (CLV) refers to the:

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

Which of the following is an advantage of using the undifferentiated targeting strategy?

Ace Inc.is a company that sells clothes.It has two brand names, Ace 1 and Ace Kid.Each of these brands caters to the needs of two dissimilar market segments.There are varied strategies and products for the dissimilar groups.In this case, which targeting strategy is the company using?

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 a(n) :

Which of the following is true of micromarketing?

The government of Ontario, like other provincial governments, charge the same fee to issue driver license.Any citizen who is eligible with get the same card and has to pay the same cost.This is an example of a(n) :

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

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