Question 1

Momentum, a brand of sports cars, launched an advertising campaign with a tagline that states "Our cars outperform most cars on the road even before you step on the accelerator." In this scenario, the company is using _____ segmentation.

Accepted Answer

The tagline used by Momentum implies that the brand is targeting consumers who value high performance and speed in their cars. This is an example of benefit segmentation, where the company is focusing on the specific benefits that their product offers to consumers.

Question 2

Chill, a beverage manufacturer, offers varied versions of its products that include diet, cherry flavored, vanilla flavored, and caffeine-free versions in addition to its original product. With respect to market coverage alternatives, the given scenario reflects the company's decision to cater to:

Accepted Answer

Chill's decision to offer varied versions of its products, including different flavors and diet options, suggests that it is catering to a differentiated market. By offering options to suit different preferences and needs, Chill is targeting specific segments within the larger market. This approach is characteristic of a differentiated marketing strategy.

Question 3

Which of the following is true of product positioning?

Accepted Answer

Product positioning involves creating a competitive advantage for the product in order to differentiate it from its competitors.

Question 4

_____ has been defined as "the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition."

Accepted Answer

The definition provided in the question is that of positioning. It involves identifying a unique selling proposition and communicating it to the target market in a way that sets the product or service apart from competitors. Branding refers to the use of a name, symbol, or design to identify a product, while proximity mapping and drip marketing are tactics used in marketing campaigns. Segmentation is the process of dividing a market into smaller groups of consumers with similar needs or characteristics.

Question 5

WristTactical, a watch manufacturer, specializes in manufacturing tactical watches for Navy divers. The company launched an ad campaign that stressed the water resistant and endurance characteristics of its watches. In this scenario, WristTactical is making use of _____ segmentation.

Accepted Answer

WristTactical is using benefit segmentation by focusing on the specific advantages or benefits (water resistance and endurance) that their watches provide, which are particularly appealing to Navy divers.

Question 6

According to the market coverage alternatives, _____ involves ignoring segment differences and offering just one product or service for the entire market.

Accepted Answer

Undifferentiated marketing involves offering just one product or service for the entire market without considering segment differences. This approach assumes that all customers have similar needs and wants, and focuses on providing a single offering that appeals to the entire market. It is also known as mass marketing.

Question 7

A brand's market position refers to its:

Accepted Answer

A brand's market position refers to its image in the mind of the customers. This includes the attributes consumers perceive as related to the brand, such as quality, price, and unique features. It is important for brands to have a clear and differentiated market position to stand out in a crowded marketplace and attract loyal customers.

Question 8

Concentrated marketing involves focusing marketing efforts on:

Accepted Answer

Concentrated marketing involves focusing on one particular segment. This approach allows for in-depth market research and customization of the marketing mix to meet the needs of that specific group. It is also a cost-effective way to reach a target audience with a message that resonates with them.

Question 9

Mars Inc., a car manufacturer, offers cheap coupes, medium-priced sedans, as well as expensive sports cars. The company identifies and develops various products for several segments. This scenario is an illustration of:

Accepted Answer

This scenario is an example of differentiated marketing, as Mars Inc. is identifying and developing products for different segments based on price points and car types.

Question 10

Which of the following is a primary variable considered in benefit segmentation?

Accepted Answer

Attributes sought are a primary variable in benefit segmentation as it helps in identifying the specific benefits that consumers seek from a product or service. This allows marketers to target specific benefits to specific segments of consumers. Income, lifestyle, birth era, and marital status are also important variables in segmentation, but they may not necessarily be primary variables in benefit segmentation.

Question 11

Star Furniture designs and sells bedroom furniture for people who are over six-feet tall, which is a relatively small target market. Which of the following strategies is the company employing in this scenario?

Accepted Answer

Star Furniture is employing a concentrated marketing strategy because it is focusing on a niche market, people who are over six-feet tall.

Question 12

Frosty Inc., a beverage manufacturer, only had one product in its line and was targeting all types of customers. With respect to the market coverage alternatives, which of the following would best suit the company?

Accepted Answer

Since Frosty Inc. only has one product in its line and is targeting all types of customers, undifferentiated marketing would be the most apt approach. This approach involves ignoring the segment differences and treating the entire market as a single segment. As Frosty Inc. has only one product, it does not make sense to differentiate or concentrate on a particular market segment. Furthermore, the bait-and-switch technique is fraudulent and illegal, while psychographic and niche marketing strategies are better suited for companies with multiple products or specialized audiences.

Question 13

Outlander Inc. is a manufacturer of laptop computers. It plans on manufacturing computers that are targeted to users interested in video games. The computers are optimized for high-definition gaming and hence are expensive. Which of the following types of marketing strategies has Outlander adopted?

Accepted Answer

Outlander Inc. has adopted concentrated marketing strategy as it focuses on targeting a specific group of customers (users interested in video games) with a product that is optimized for their needs (high-definition gaming laptops).

Question 14

The fact that some consumers want flavored bottled water and others want it with added minerals provides an opportunity for _____ segmentation.

Accepted Answer

Benefit segmentation considers the benefits that consumers desire from a product or service. In this case, the different desires for flavored or mineral water indicate a benefit segmentation opportunity. The other segmentation options (socioeconomic, geographic, psychographic, and demographic) do not directly address this difference in desired product benefits.

Question 15

Pluto Inc., a high-end car manufacturer, makes only 12 cars per year. The company caters only to the "super-rich" and manufacturers only on order. In this scenario, Pluto is using a _____ marketing strategy.

Accepted Answer

Pluto Inc. is using a concentrated marketing strategy, which focuses on a specific segment of the market, the "super-rich". This allows them to provide a highly customized and exclusive product, which matches with the needs of their target audience.

Question 16

_____ segmentation is the grouping of customers on the basis of attributes sought in a product.

Accepted Answer

Benefit segmentation is the grouping of customers based on the benefits they seek in a product. This type of segmentation is particularly useful for companies that offer products with multiple benefits, such as a car that is marketed for its safety features, fuel efficiency, and luxury features. Benefit segmentation allows companies to tailor their marketing messages to specific groups of customers based on the benefits they value most.

Question 17

Which of the following is true of concentrated marketing strategies?

Accepted Answer

Concentrated marketing strategies involve focusing on a single segment of the market. This allows for targeted marketing efforts and tailoring of products and services to meet the specific needs of that segment.

Question 18

Which of the following is true of undifferentiated marketing?

Accepted Answer

Undifferentiated marketing, also known as mass marketing, involves offering just one product or service to the entire market without any differentiation or customization for different segments. It assumes that all customers have similar needs and preferences and that a single marketing strategy will appeal to all.

Question 19

_____ is used when the firm selects one segment and attempts to capture a large share of the market.

Accepted Answer

Concentrated marketing, also known as niche marketing, focuses on targeting one specific segment of the market and aiming to capture a large share of that segment. This approach is effective when the company has a clear understanding of the needs and preferences of the chosen market segment and can tailor its products and marketing efforts to meet those specific needs. It is a cost-effective way to establish a strong position in a specialized market and can lead to higher profits and customer loyalty.

Question 20

With respect to the market coverage alternatives, _____ involves developing separate marketing strategies for a number of segments.

Accepted Answer

Differentiated marketing involves developing separate marketing strategies for a number of segments. This approach allows a company to better target the needs and preferences of specific groups of customers, which can lead to increased customer satisfaction and loyalty.

Quiz 2: The Role of IMC in the Marketing Process