Question 1

In the context of purchasing profiles, what do we call business customers who consider numerous suppliers, solicit bids, and study all proposals carefully before selecting one?
A)laggards
B)innovators
C)optimizers
D)satisficers

Accepted Answer

The term "optimizers" refers to business customers who engage in a rigorous and thorough selection process, considering multiple suppliers and studying all proposals carefully before making a decision. Laggards are customers who are slow to adopt new products or technologies, innovators are customers who are quick to adopt new products or technologies, and satisficers are customers who are content with meeting basic requirements and do not engage in extensive research or evaluation. Therefore, choice C is the best answer.

Question 2

A mobile home manufacturer has decided to add food trailers to its product line. If all the current competitors in that market use a differentiated product market strategy, which strategy would make the most sense for the manufacturer to implement?
A)product differentiation strategy
B)undifferentiated product strategy
C)concentrated targeting strategy
D)multisegment targeting strategy

Accepted Answer

The answer of A mobile home manufacturer has decided to...

Question 3

Every six months or so, some manufacturer introduces a new shape or colour for the boxes that house the hardware to run PCs. These manufacturers ignore the fact most people like their technology in plain wrappers. These bright colours and odd shapes have failed because the market segment to which they are targeted lacks which of the following?
A)substantiality
B)identifiability and measurability
C)responsiveness
D)reliability

Accepted Answer

The market segment lacks responsiveness, meaning the consumers in this segment do not positively react or show interest in the new shapes or colors of PC hardware boxes, as indicated by the failure of these innovations to appeal to them.

Question 4

The Toronto Zoo has completed a thorough examination of its patrons, such as Chinese families and ethnic communities. It grouped the customers into three segments based on size, geographic region, and benefits sought. Would you recommend a new segmentation analysis this year?
A)No, once every 10 years is about average.
B)Yes, I would recommend one be done regularly because of the rapidly changing nature of most markets.
C)No, consumer markets are not rapidly changing or developing like business goods markets.
D)Yes, a new analysis would be in order, but it should use different bases to get some variety.

Accepted Answer

The question suggests that the Toronto Zoo's customer base includes Chinese families and ethnic communities. As such, market trends and demographics can change much more rapidly than other consumer markets. Therefore, it would be appropriate to conduct regular segmentation analysis more than once per decade to effectively track developments and changes within these segments of the market.

Question 5

Manufacturers of instant potato flakes sell to resellers, institutional food services, and movie production companies. (Instant potato flakes are typically used in movies when the scene calls for falling snow.) How would manufacturers of instant potato flakes most likely segment their market?
A)by company characteristics
B)by the buying process
C)by financial terms
D)by customer relationship objectives

Accepted Answer

Manufacturers of instant potato flakes would most likely segment their market by company characteristics, as their customers include resellers, institutional food services, and movie production companies. These different types of customers have unique needs and requirements, so the manufacturer might segment their market based on factors such as company size, budget, product usage, and purchasing behavior. By targeting each customer segment with tailored marketing and sales strategies, the manufacturer can better meet their specific needs and increase their sales and customer loyalty.

Question 6

Candace makes and markets Festive Holiday Truffles candy. Candace views the world as one big market with no individual segments and tries to reach it with only one marketing mix. Her essentially mass-market philosophy indicates she probably uses which strategy?
A)multisegment targeting
B)universal targeting
C)concentrated targeting
D)undifferentiated targeting

Accepted Answer

Undifferentiated targeting is a mass-market philosophy where the marketer views the entire market as one big segment and uses a single marketing mix to reach it. This aligns with Candace's approach of viewing the world as one big market with no individual segments.

Question 7

Which strategy entails selecting one segment of a market to target, and focuses on understanding the needs, motives, and satisfactions of the members of that segment, as well as on developing a highly specialized marketing mix?
A)universal development
B)undifferentiated targeting
C)concentrated targeting
D)market development

Accepted Answer

Concentrated targeting entails selecting one segment of a market to target and developing a highly specialized marketing mix that caters to the specific needs, motivations, and satisfactions of the members of that segment. The focus is on customization to appeal to the particular segment, rather than trying to appeal to the entire market.

Question 8

Canon Cameras has developed a new camera for baby boomers with a fewer options and larger buttons. What would these baby boomers be to Canon?
A)a heterogeneous segment
B)a target market
C)a responsive segment
D)an aggregated market

Accepted Answer

The baby boomers who would benefit from this camera with fewer options and larger buttons are a specific group within the larger market. Canon has developed this camera specifically with the needs and preferences of this group in mind, indicating that they are a target market.

Question 9

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, what is Wesley Electronics Inc. most likely doing?
A)selecting a market or product category for study
B)designing and implementing marketing mixes
C)profiling and analyzing market segments
D)selecting segmentation descriptors for a market

Accepted Answer

Designing and implementing marketing mixes involves strategies like advertising to promote products, which is what Wesley Electronics Inc. is doing by spending a great deal of money on various advertising methods to create product awareness.

Question 10

Which of the following identifies correctly how often market segmentation should be done?
A)should be done once a month
B)is rarely done by consumer products companies
C)needs to be done only once for each product
D)should be redone periodically

Accepted Answer

Market segmentation should be redone periodically to ensure that the marketing strategy remains effective and relevant to the changing needs and preferences of the target market. Consumer behavior, preferences, and needs can shift over time, and marketing strategies must adapt to those changes to remain effective. It is not necessary to perform market segmentation once a month or for each product, and many consumer products companies regularly employ market segmentation as a key component of their marketing strategy.

Question 11

DCS designed an excellent line of specialty barbecues, had good distribution, used effective promotion with its market, and within four years had a respectable market share. Yet financial losses every year have caused DCS to drop this line. What might this market segment, relative to the resources devoted to it, have lacked?
A)reliability
B)identifiability and measurability
C)substantiality
D)accessibility

Accepted Answer

The market segment may have lacked substantiality, meaning it was not large enough or profitable enough to justify the resources devoted to it. Despite effective distribution and promotion, the market segment may not have been generating enough revenue to cover the costs and therefore resulted in financial losses every year.

Question 12

Georgia Pacific and Mitchell Gold are two companies that have implemented and maintained marketing mixes designed to meet the needs of lesbians and gays. To these companies and others, lesbians and gays are desirable customers. How would they be best classified?
A)as a market sample
B)as a target market
C)as a perceived market
D)as a functional market

Accepted Answer

Lesbians and gays are best classified as a target market because companies like Georgia Pacific and Mitchell Gold have specifically targeted and designed their marketing mixes to meet their needs, indicating a deliberate effort to reach this group of consumers.

Question 13

What is the next step after selecting a market for study and choosing bases for segmenting that market?
A)selecting segmentation descriptors
B)implementing and maintaining a marketing mix
C)designing a marketing mix
D)profiling and analyzing segments

Accepted Answer

The next step after selecting a market for study and choosing bases for segmenting that market is to select segmentation descriptors. These descriptors help in defining and distinguishing different segments of the market based on various characteristics such as demographics, psychographics, geographic location, and behavior patterns.

Question 14

June LaVista owns a health and fitness gym. After dividing her customers into four segments based on income range, age, level of fitness, and other selected segmentation descriptors, she wrote out a description of each segment's size, expected growth, frequency of exercise, and overall profit potential. What did LaVista engage in?
A)profiling and analyzing her market segments
B)positioning her products to her market segments
C)targeting promotions to her market segments
D)differentiating her market segments

Accepted Answer

June LaVista engaged in profiling and analyzing her market segments by dividing her customers into four segments based on various segmentation descriptors and analyzed the size, expected growth, frequency of exercise, and overall profit potential of each segment.

Question 15

Serving the specific needs of a segment must be commercially viable, even if the number of potential customers is small. A selected segment must be large enough to warrant developing and maintaining a special marketing mix according to the criterion of which of the following?
A)causality
B)accountability
C)responsiveness
D)substantiality

Accepted Answer

The criterion described in the statement is substantiality, which means that the selected segment must be large enough to justify the resources and efforts invested in developing a special marketing mix. This ensures that serving the specific needs of the segment is commercially viable, even if the number of potential customers is small.

Question 16

The city of Blossom Valley has a job training program for the homeless but has had a difficult time reaching this group with information about the program even though radio and television stations have provided public service advertisements free of charge. This illustrates a segmentation problem with which of the following?
A)substantiality
B)identifiability and measurability
C)responsiveness
D)accessibility

Accepted Answer

The problem described in the scenario suggests that the homeless population is not easily accessible, making it difficult for the city to reach them with information about the job training program. Therefore, the segmentation problem is with accessibility.

Question 17

In the context of a buying process, what are satisficers most likely to do?
A)select the best supplier who satisfies their product and delivery requirements
B)study numerous proposals carefully before selecting one
C)contact familiar suppliers and place orders with the first one that fulfills their requirements
D)contact new and unfamiliar suppliers when they need to purchase a product

Accepted Answer

Satisficers are buyers who are content with finding a supplier who satisfies their minimum requirements for a product or service. They typically contact familiar suppliers and place orders with the first one that fulfills their requirements, rather than spending time studying numerous proposals or researching new suppliers. Choice C is the only option that aligns with this behavior.

Question 18

John Sichner, editor and publisher of Beverage Digest, a trade journal for beverage producers, wrote, "In this day and age, one product can't be the answer for all consumers." What was Sichner opposing the use of?
A)repositioning
B)reengineering
C)one-to-one marketing
D)undifferentiated targeting

Accepted Answer

John Sichner is opposing the use of undifferentiated targeting, where one product is targeted towards all consumers without any market segmentation.

Question 19

The marketing researcher for a manufacturer of designer clothing for infants and toddlers has submitted a report on potential segments for expansion of its marketing efforts. She noted an increase of professional women over the age of 35 who are leaving their jobs to have their first babies. She described this segment as having substantiality. What does this mean?
A)The segment has enough special stores, magazines, and other outlets that it will be possible to direct advertisements at this group.
B)The segment is large enough to permit a profitable market effort toward its members.
C)The segment exhibits a response rate to marketing variables different from the rates of other segments.
D)The segment is too large and needs to be reduced to a more easily identifiable and measurable size.

Accepted Answer

"Substantiality" in this context means that the segment is large enough to support a profitable marketing effort.

Question 20

Sure Fit Inc. has begun a rebranding strategy to let customers know it no longer produces only slipcovers, but also carries a line of rugs, window treatments, and bedding. What would it describe as women with average annual household income of $60,000 or more?
A)its market audience
B)its market differentiation
C)its perceived market
D)its target market

Accepted Answer

The description of women with an average annual household income of $60,000 or more is a target market, as it represents a specific group that the company is aiming to reach and serve with its products.

Quiz 8: Segmenting, Targeting, and Positioning

In the context of purchasing profiles, what do we call business customers who consider numerous suppliers, solicit bids, and study all proposals carefully before selecting one?

A mobile home manufacturer has decided to add food trailers to its product line. If all the current competitors in that market use a differentiated product market strategy, which strategy would make the most sense for the manufacturer to implement?

The Toronto Zoo has completed a thorough examination of its patrons, such as Chinese families and ethnic communities. It grouped the customers into three segments based on size, geographic region, and benefits sought. Would you recommend a new segmentation analysis this year?

Manufacturers of instant potato flakes sell to resellers, institutional food services, and movie production companies. (Instant potato flakes are typically used in movies when the scene calls for falling snow.) How would manufacturers of instant potato flakes most likely segment their market?

Candace makes and markets Festive Holiday Truffles candy. Candace views the world as one big market with no individual segments and tries to reach it with only one marketing mix. Her essentially mass-market philosophy indicates she probably uses which strategy?

Which strategy entails selecting one segment of a market to target, and focuses on understanding the needs, motives, and satisfactions of the members of that segment, as well as on developing a highly specialized marketing mix?

Canon Cameras has developed a new camera for baby boomers with a fewer options and larger buttons. What would these baby boomers be to Canon?

Which of the following identifies correctly how often market segmentation should be done?

Georgia Pacific and Mitchell Gold are two companies that have implemented and maintained marketing mixes designed to meet the needs of lesbians and gays. To these companies and others, lesbians and gays are desirable customers. How would they be best classified?

What is the next step after selecting a market for study and choosing bases for segmenting that market?

Serving the specific needs of a segment must be commercially viable, even if the number of potential customers is small. A selected segment must be large enough to warrant developing and maintaining a special marketing mix according to the criterion of which of the following?

In the context of a buying process, what are satisficers most likely to do?

John Sichner, editor and publisher of Beverage Digest, a trade journal for beverage producers, wrote, "In this day and age, one product can't be the answer for all consumers." What was Sichner opposing the use of?

Sure Fit Inc. has begun a rebranding strategy to let customers know it no longer produces only slipcovers, but also carries a line of rugs, window treatments, and bedding. What would it describe as women with average annual household income of $60,000 or more?