Question 1

A product's positioning could be based on product users.

Accepted Answer

Product positioning can be based on various factors such as product features, benefits, price, and also on the target users or customers of the product. By understanding and targeting specific user groups, companies can position their products to meet the unique needs and preferences of those users, and differentiate their offerings from competitors.

Question 2

The growth of mass marketing is an indication of the importance of implementing CRM.

Accepted Answer

There are four trends that suggest CRM will continue growing: personalization,time savings and technology.

Question 3

Home Cookin' Catering would like to improve customer satisfaction and increase repeat business.When you ask the owners to describe a typical customer,they say it is impossible and explain that with corporate functions,family affairs,and fund-raisers,they do not have a typical customer.You suggest it is time for market segmentation because:
A) it will enable them to build an accurate description of customer needs by group and to design a marketing mix to fit each segment
B) the company needs to reduce the size of the market it serves
C) the company needs to learn how to group these markets together into one market to serve all of them adequately
D) it will help develop a generalized definition of the market as a whole and reveal the optimal marketing mix for this market
E) this will position the company in the minds of its consumers as compared to its competitors

Accepted Answer

The purpose of segmentation is to group similar consumers and to serve their needs with a specialized marketing mix.

Question 4

To be useful,a segmentation scheme must produce segments that meet four basic criteria.The criteria are:
A) segmentability, targetability, reliability and validity, and homogeneity
B) tangibility, inseparability, nonperishability, and uniqueness
C) substantiality, identifiability and measurability, accessibility, and responsiveness
D) reliability, flexibility, tangibility, and unbiased
E) complexity, compatability, relative advantage, trialability, and observability

Accepted Answer

Useful segments should be substantial,identifiable and measurable,accessible,and responsive to different marketing mixes.

Question 5

A(n)_____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have similar product needs.
A) market universe
B) market segment
C) aggregated market
D) segmentation base
E) population sample

Accepted Answer

This is the definition of a market segment.

Question 6

Product differentiation is a positioning strategy.

Accepted Answer

Product differentiation is a positioning strategy where the company tries to differentiate its product from its competitors in terms of quality, features, design, or brand image, to attract customers who prioritize those characteristics.

Question 7

A product's position refers to where it is located on store shelves.

Accepted Answer

Position is the place a product,brand,or group of products occupies in consumers' minds relative to competing offerings.

Question 8

_____ is the process of dividing a market into meaningful groups that are relatively similar and identifiable.
A) Perceptual mapping
B) Positioning
C) Micromarketing
D) Market sampling
E) Market segmentation

Accepted Answer

This is the definition of market segmentation.

Question 9

The Belly Cast kit by Proud Body helps an expectant mom to make a cast of her pregnant body,decorate it,and keep it for a lifetime.The primary market segment for the Belly Cast kit is:
A) all parents
B) expectant moms
C) recently married couples
D) parents of toddlers
E) collectors of unusual art

Accepted Answer

A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs,which in this case would be expectant moms.

Question 10

A group of middle school students stop by a bicycle store.The store has just received a new shipment of high-end racing bicycles.The bicycles range in price from $1,200 to $3,000.All of the students want one of these new bikes,but none has the means to buy one.Is this group of consumers a potential market for the expensive bikes?
A) Yes, they are a potential market since they are all about the same age.
B) No, they do not have the ability to purchase at this time.
C) No, to qualify as a market, they must need the product.
D) Yes, they are a market because this product could satisfy their consumer wants and desires.
E) Yes, they are a market because this group shares relatively similar product needs and purchasing characteristics.

Accepted Answer

A market is a group of people or organizations that has wants and needs that can be satisfied by particular product categories,has the ability to purchase these products,and is willing to exchange resources for the products.There is no suggestion of ability to purchase in this case.

Question 11

Market segmentation can assist marketers to do all of the following EXCEPT:
A) develop more precise definitions of customer needs and wants
B) identify which variable base should be used for segmenting
C) more accurately define marketing objectives
D) improve resource allocation
E) evaluate performance

Accepted Answer

Market segmentation itself does not signal which base should be used,but it will define needs and wants,as well as help marketers define marketing objectives,improve resource allocation,and evaluate performance.

Question 12

Procter & Gamble markets six different brands of laundry detergent,such as Tide,Era,Gain,and Dreft,each targeting a different market segment.This is an example of concentrated targeting.

Accepted Answer

This illustrates a multisegment targeting strategy.

Question 13

The purpose of market segmentation is to:
A) reduce the market down to a size the firm can handle
B) divide the market into equal size and profit regions for sales territories
C) group a large number of markets together, enabling a company to serve them simultaneously
D) develop a generalized definition of the market as a whole
E) enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups

Accepted Answer

The purpose of segmentation is to group similar consumers and to serve their needs with a specialized marketing mix.

Question 14

Ford Motor Company produces passenger cars,commercial trucks and specialty vehicles,performance vehicles,and race cars.Ford uses a procedure called _____ to divide its large market.
A) micromarketing
B) positioning
C) market segmentation
D) cannibalization
E) perceptual mapping

Accepted Answer

Dividing one large market into divisions based on a variable such as product usage is called market segmentation.

Question 15

Marketers are rediscovering that the "one-size-fits-all" approach to marketing is still relevant.

Accepted Answer

The one-size-fits-all marketing is no longer relevant.Consumers want to be treated as the individuals they are,with their own unique sets of needs and wants.

Question 16

All of the following are criteria for successful market segmentation EXCEPT:
A) substantiality
B) identifiability and measurability
C) accountability
D) accessibility
E) responsiveness

Accepted Answer

The four criteria are substantiality,identifiability and measurability,accessibility,and responsiveness.

Question 17

Small firms often adopt a concentrated marketing strategy to compete effectively with larger firms.

Accepted Answer

Small firms may not have the resources to appeal to a broad range of customers, so they often focus on a specific niche or target market to stand out in a crowded marketplace and effectively compete with larger firms. This is known as a concentrated marketing strategy.

Question 18

A market is people or organizations that have:
A) the ability, willingness, and power to buy.
B) a medium of exchange and products they desire.
C) needs and wants and an ability and willingness to buy.
D) unmet needs or wants and products or services that satisfy those unmet needs or wants.
E) communication, financial, and capital resources.

Accepted Answer

A market is defined as having four imperative characteristics: people or organizations,needs and wants,ability to buy,and willingness to buy.

Question 19

A _____ is a group of people or organizations that has wants and needs that can be satisfied by particular product categories,has the ability to purchase these products,and is willing to exchange resources for the products.
A) firm
B) buyer
C) market
D) consumer
E) target

Accepted Answer

This is the definition of a market.

Question 20

Consumers' perceptions regarding a product's position cannot be changed.

Accepted Answer

Repositioning is changing consumers' perceptions of a brand in relation to competing brands.

Quiz 15: Segmenting and Targeting Markets

A product's positioning could be based on product users.

The growth of mass marketing is an indication of the importance of implementing CRM.

To be useful,a segmentation scheme must produce segments that meet four basic criteria.The criteria are:

A(n) _____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have similar product needs.

Product differentiation is a positioning strategy.

A product's position refers to where it is located on store shelves.

_____ is the process of dividing a market into meaningful groups that are relatively similar and identifiable.

The Belly Cast kit by Proud Body helps an expectant mom to make a cast of her pregnant body,decorate it,and keep it for a lifetime.The primary market segment for the Belly Cast kit is:

Market segmentation can assist marketers to do all of the following EXCEPT:

Procter & Gamble markets six different brands of laundry detergent,such as Tide,Era,Gain,and Dreft,each targeting a different market segment.This is an example of concentrated targeting.

The purpose of market segmentation is to:

Ford Motor Company produces passenger cars,commercial trucks and specialty vehicles,performance vehicles,and race cars.Ford uses a procedure called _____ to divide its large market.

Marketers are rediscovering that the "one-size-fits-all" approach to marketing is still relevant.

All of the following are criteria for successful market segmentation EXCEPT:

Small firms often adopt a concentrated marketing strategy to compete effectively with larger firms.

A market is people or organizations that have:

A _____ is a group of people or organizations that has wants and needs that can be satisfied by particular product categories,has the ability to purchase these products,and is willing to exchange resources for the products.

Consumers' perceptions regarding a product's position cannot be changed.