Question 1

"Corporate pilot fish" are former employees who start a new business based primarily on contacts and contracts with their old company.A corporate pilot fish would probably pursue a __________ targeting strategy.
A) macromarketing
B) micromarketing
C) benefit-based
D) differentiated
E) undifferentiated

Accepted Answer

The answer of "Corporate pilot fish" are former employees who...

Question 2

For products like pencils and paperclips,which provide the same benefit for all consumers,marketers should probably use a(n):
A) concentrated targeting strategy.
B) lifestyle segmentation strategy.
C) benefit segmentation strategy.
D) undifferentiated targeting strategy.
E) all of these.

Accepted Answer

Pencils and paperclips are basic office supplies that provide the same benefit for all consumers, regardless of their demographics, psychographics, or behaviors. Therefore, an undifferentiated targeting strategy is the most appropriate approach, as it assumes that all consumers have similar needs, preferences, and purchase behaviors. Trying to segment or target customers based on irrelevant criteria would only increase the marketing costs and complexity without adding much value.

Question 3

Firms use a differentiated targeting strategy because:
A) it is easier than mass marketing.
B) it helps to obtain a bigger share of the market.
C) it is better than focusing on individual or small groups of potential customers.
D) most market segments are too small to be profitable.
E) banks are more willing to extend credit to companies with this strategic approach.

Accepted Answer

Firms use a differentiated targeting strategy to obtain a bigger share of the market by targeting specific segments that have unique needs and preferences, and then tailoring their marketing mix to appeal to those segments. This allows firms to differentiate themselves from competitors and create customer loyalty.

Question 4

One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify its business and:
A) decrease advertising spending.
B) focus on a single market segment.
C) lower overall risk.
D) use undifferentiated strategies in micro markets.
E) all of these.

Accepted Answer

Differentiated targeting strategy allows the firm to cater to multiple market segments with specific needs and preferences. By doing so, it reduces the firm's overall business risk by not relying solely on one market segment. Instead, it spreads the risk across multiple segments, which provides stability to the business. The other options - decreasing advertising spending, focusing on a single market segment or using undifferentiated strategies in micro markets are not necessarily benefits of differentiated targeting strategy.

Question 5

Differences in weather and climate create opportunities for:
A) concentrated targeting.
B) geographic segmentation.
C) benefit segmentation.
D) psychographic segmentation.
E) demographic segmentation.

Accepted Answer

Geographic segmentation is the division of a market based on different geographical units, such as regions, countries, states, cities, or neighborhoods. Differences in weather and climate (which are both geographical factors) can create opportunities for geographic segmentation, as certain products or services may be more desirable or necessary in specific areas based on climate conditions.

Question 6

Adidas Group owns Reebok,Rockport,and Greg Norman brands.Adidas uses the different brands to pursue a(n)__________ strategy.
A) concentrated targeting
B) micromarketing
C) benefit targeting
D) differentiated targeting
E) undifferentiated targeting

Accepted Answer

Adidas Group uses differentiated targeting strategy by owning multiple brands with distinct identities and targeting different segments of the market. Each brand is marketed in a unique way to appeal to its specific target audience.

Question 7

Demographic segmentation is segmentation based on:
A) age.
B) gender.
C) education.
D) income.
E) any of these.

Accepted Answer

Demographic segmentation is based on any of these factors including age, gender, education, income, etc. Marketers use these variables to create groups of consumers who have similar needs, wants, preferences, or interests, and design marketing campaigns that appeal to each segment in a different way. For instance, a company may target young adults with low incomes who are tech-savvy and environmentally conscious, using social media platforms and sustainable packaging, while another company may target older adults with higher incomes who value quality and convenience, using print ads and loyalty programs.

Question 8

__________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach.
A) Geographic
B) Psychographic
C) Behavioral
D) Benefits
E) Demographic

Accepted Answer

Demographic segmentation divides the market into groups based on demographic variables such as age, gender, income, education, and family life cycle. This is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach.

Question 9

Beer marketers know that high school educated,working class males from the ages of 25 to 40 make up an attractive market for their products. This is a __________ segment of the beer market.
A) demographic
B) psychographic
C) behavioral
D) benefits
E) geographic

Accepted Answer

A demographic segment is based on characteristics such as age, education level, and occupation. In this case, the segment is defined by the age range and education level of the males, making it a demographic segment of the beer market.

Question 10

Four frequently used targeting strategies are the micromarketing,undifferentiated,differentiated,and __________ targeting strategies.
A) geographic
B) benefit-based
C) economic
D) global
E) concentrated

Accepted Answer

The options given in the question are all actual targeting strategies except for "economic" and "global." Out of the remaining options, the best fit for the missing term is "concentrated" targeting strategy, which involves focusing all marketing efforts on a single specific market segment.

Question 11

Although a differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market,this strategy:
A) is the cheapest option.
B) requires the use of advanced advertising techniques.
C) rarely works.
D) is often expensive.
E) is ineffective without multiple brand names.

Accepted Answer

Differentiated targeting strategy involves tailoring marketing efforts to specific segments within a market. This requires a lot of research and investment in product development, advertising, and promotions. Therefore, it can be an expensive strategy to implement.

Question 12

When Penguin Catering Services first opened,the owner decided to target only events at resorts in its geographic region.Penguin Catering was using a(n)__________ targeting strategy.
A) concentrated
B) micromarketing
C) benefit-driven
D) differentiated
E) undifferentiated

Accepted Answer

The owner of Penguin Catering Services decided to target only events at resorts in its geographic region, which means they are using a concentrated targeting strategy. This strategy involves focusing all marketing efforts on a single, specific market segment.

Question 13

Marketers like Benetton want their ads to appeal to one's self-concept,suggesting to consumers:
A) "Trendy products for the masses."
B) "I'm like them,so I should buy their products."
C) "I will never be rich,but I can dress like I am."
D) "Be Peace."
E) "All is fair in love,marketing,and war."

Accepted Answer

Benetton's marketing strategy often focuses on promoting a social message through their advertisements, which can appeal to consumers' self-concept by suggesting that they are like the diverse group of people depicted in the ads. By showcasing people from different cultures, races, and backgrounds, their ads can make consumers feel like they are part of a larger global community and that by buying Benetton products, they are expressing their values and identity.

Question 14

Many companies use the Internet to allow consumers to design customized products; for example,Nike allows customers to order shoes with custom color combinations.This is a form of:
A) micromarketing.
B) concentrated targeting.
C) psychographic segmentation.
D) differentiated targeting.
E) undifferentiated targeting.

Accepted Answer

Micromarketing refers to tailoring offerings and marketing efforts to suit the tastes of specific individuals and/or locations. Allowing customers to design customized products is an example of micromarketing as it caters to the individual preferences of each customer.

Question 15

Television advertising has recently expanded to include "mini-ads," which are short ads lasting five to ten seconds.These ads are most useful in advertising to men,since men are more likely than women to channel surf during commercial breaks.This type of advertising will be more useful to marketers engaged in __________ segmentation.
A) demographic
B) psychographic
C) behavioral
D) benefits
E) geographic

Accepted Answer

The answer of Television advertising has recently expanded to include...

Question 16

NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of race fans were female.This is an example of __________ segmentation.
A) geographic
B) psychographic
C) demographic
D) benefits
E) behavioral

Accepted Answer

Demographic segmentation involves dividing the market based on demographic variables such as age, gender, income, education, and occupation. In this case, NASCAR redirected its marketing efforts based on the demographic variable of gender, which revealed that almost 50 percent of race fans were female.

Question 17

When Mr.How,a Pennsylvania-based discount lumber and hardware chain,sent snow blowers to its Augusta,Georgia,store in April,it was engaged in:
A) concentrated segmentation.
B) geodemographic segmentation.
C) benefit segmentation.
D) psychographic segmentation.
E) misguided geographic segmentation.

Accepted Answer

Augusta, Georgia does not typically receive snow in April, which indicates that Mr. How engaged in misguided geographic segmentation by sending snow blowers to this location.

Question 18

In a classic example of segmentation strategy,years ago Swift Meat Company transformed turkey meat into "Butterball" turkeys.In the process,the company:
A) differentiated its product.
B) avoided the SARS virus.
C) created a new class of micromarketing.
D) raised consumers' self-concepts.
E) redefined mass customization.

Accepted Answer

Swift Meat Company differentiated its product by transforming turkey meat into "Butterball" turkeys. This is a classic example of segmentation strategy where a company identifies a specific segment of customers and tailors its product to meet their needs and preferences, thereby differentiating the product from those of competitors.

Question 19

Adidas Group owns Reebok,Rockport,and Greg Norman brands.Having a variety of brands allows Adidas to:
A) engage in micromarketing for hard-to-fit shoe customers.
B) obtain a bigger share of the shoe market.
C) use mass marketing techniques.
D) utilize geographic segmentation.
E) generate economies of scale in advertising expenditures.

Accepted Answer

By owning multiple brands, Adidas is able to capture a larger portion of the shoe market, as they are able to appeal to different market segments with their diverse range of products. This can increase overall revenue and market share.

Question 20

__________ is an extreme form of a targeting strategy.
A) Macromarketing
B) Micromarketing
C) Benefit marketing
D) Differentiated targeting
E) Concentrated targeting

Accepted Answer

The answer of __________ is an extreme form of a...

Quiz 8: Segmentation, Targeting, and Positioning

"Corporate pilot fish" are former employees who start a new business based primarily on contacts and contracts with their old company.A corporate pilot fish would probably pursue a __________ targeting strategy.

For products like pencils and paperclips,which provide the same benefit for all consumers,marketers should probably use a(n) :

Firms use a differentiated targeting strategy because:

One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify its business and:

Differences in weather and climate create opportunities for:

Adidas Group owns Reebok,Rockport,and Greg Norman brands.Adidas uses the different brands to pursue a(n) __________ strategy.

Demographic segmentation is segmentation based on:

__________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach.

Beer marketers know that high school educated,working class males from the ages of 25 to 40 make up an attractive market for their products. This is a __________ segment of the beer market.

Four frequently used targeting strategies are the micromarketing,undifferentiated,differentiated,and __________ targeting strategies.

Although a differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market,this strategy:

When Penguin Catering Services first opened,the owner decided to target only events at resorts in its geographic region.Penguin Catering was using a(n) __________ targeting strategy.

Marketers like Benetton want their ads to appeal to one's self-concept,suggesting to consumers:

Many companies use the Internet to allow consumers to design customized products; for example,Nike allows customers to order shoes with custom color combinations.This is a form of:

NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of race fans were female.This is an example of __________ segmentation.

When Mr.How,a Pennsylvania-based discount lumber and hardware chain,sent snow blowers to its Augusta,Georgia,store in April,it was engaged in:

In a classic example of segmentation strategy,years ago Swift Meat Company transformed turkey meat into "Butterball" turkeys.In the process,the company:

Adidas Group owns Reebok,Rockport,and Greg Norman brands.Having a variety of brands allows Adidas to:

__________ is an extreme form of a targeting strategy.