Question 1

In the United States, the Harry Potter series of books were often at the top of The New York Times fiction best-seller list.These books have been marketed to preteen, teen, and adult readers around the world.Scholastic, the publisher of the Harry Potter books, is using which of the following segmentation strategies?
A)multiple products with multiple market segments
B)one product with multiple channels of distribution
C)one product with multiple market segments
D)one product with changes based on customer behavior
E)multiple products with multiple segments

Accepted Answer

Scholastic is using the strategy of one product with multiple market segments, as the Harry Potter books are marketed to preteen, teen, and adult readers.

Question 2

The Walt Disney Company carefully markets two distinct Winnie-the-Poohs-such as the original line-drawn figures on fine china sold at Nordstrom and a cartoon-like Pooh on polyester bed sheets sold at Wal-Mart.This is an example of
A)mass customization.
B)one product and multiple market segments.
C)price discrimination.
D)a "Tiffany/Wal-Mart" strategy.
E)psychographic market segmentation.

Accepted Answer

The "Tiffany/Wal-Mart" strategy refers to offering different versions of a product to appeal to both high-end and low-end market segments, as seen with the distinct Winnie-the-Pooh products.

Question 3

When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids __________, which often results in extremely high research, engineering, and manufacturing expenses.
A)the extra cost of developing and producing additional versions of the product
B)creating a customer service gap
C)indirect distribution and logistics problems
D)restructuring the firm's strategic planning
E)amortization costs of product enhancements

Accepted Answer

By producing only a single product or service and trying to sell it to multiple market segments, the firm avoids the additional costs associated with developing and producing multiple versions of the same product. This leads to lower research, engineering, and manufacturing expenses.

Question 4

You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50, or you can buy a card that's not quite as nice but just as sentimental from the store's new $.99 line of greeting cards.This is an example of
A)mass customization.
B)organizational synergy.
C)one product and multiple market segments.
D)price discrimination.
E)a "Tiffany/Wal-Mart" strategy.

Accepted Answer

This is an example of a "Tiffany/Wal-Mart" strategy, where a company offers products at different price points to cater to both high-end and budget-conscious consumers.

Question 5

One marketing action that can be taken to sell a single product or service to multiple market segments is
A)develop and produce another version of the product.
B)manufacture products that appeal to different markets.
C)develop separate promotional campaigns.
D)purchase another firm that has additional products that would appeal to multiple markets.
E)issue stock used for additional research and development for improved products.

Accepted Answer

Developing separate promotional campaigns for each market segment can help to tailor the messaging and communication channels to the needs and preferences of each group. This can help to increase the effectiveness of the marketing and ultimately increase sales. It is often more efficient and cost-effective to create separate campaigns rather than developing entirely new products or purchasing additional firms.

Question 6

Kellogg's different types of cereals, each targeted at a different type of user, are an example of multiple products aimed at multiple markets.Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it serves customers' needs better, doesn't reduce quality or increase price, and
A)conforms to all FDA guidelines.
B)creates economy of scale.
C)decreases the cost of the physical plant.
D)stabilizes the sales revenues and profits.
E)adds to the manufacturer's sales revenues and profits.

Accepted Answer

By targeting multiple markets with different products, Kellogg's can increase its overall sales revenues and profits by appealing to a broader customer base.

Question 7

ChoiceShirts is an online company that makes custom T-shirts.Customers can make their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch.This is an example of
A)family branding.
B)mass customization.
C)synergistic marketing.
D)market melding.
E)specialty customization.

Accepted Answer

This is an example of mass customization, where customers can customize their shirts using a variety of templates or even design their own from scratch. Mass customization allows companies to offer personalized products to customers while still maintaining a level of efficiency in production.

Question 8

Kellogg's different types of cereals, each targeted at a different type of user, are an example of multiple products aimed at multiple markets.Manufacturing these different cereals is clearly more expensive than producing one but seems worthwhile if it adds to the manufacturer's sales revenues and profits, doesn't reduce quality or increase price, and
A)conforms to all FDA guidelines.
B)creates economy of scale.
C)decreases the cost of the physical plant.
D)stabilizes the sales revenues and profits.
E)better serves the customers' needs.

Accepted Answer

Kellogg's different cereals targeting different types of users better serve the customers' needs and preferences. This can lead to increased sales revenues and profits without reducing quality or increasing prices. It is not necessary for it to conform to all FDA guidelines, create economy of scale, decrease physical plant cost or stabilize sales revenues and profits.

Question 9

Custom Foot runs six retail locations.At first glance none looks any different from your basic old-fashioned shoe store, but the only boots on hand are display models.There's no inventory for sale, and customers go home empty-handed-at least initially.Customers browse the store, mixing and matching design components such as style, color, and leather type.About 100 display boots provide style guidelines.Once you choose a boot style, you select materials, colors, and textures.Custom Foot guarantees your boots will be ready within three weeks.This is an example of
A)mass customization.
B)specialty customization.
C)virtual merchandising.
D)one product and multiple market segments.
E)multiple market and multiple market segments.

Accepted Answer

This is an example of mass customization, where the customer can choose from a range of options to create a unique product, but the overall process is streamlined and efficient enough to produce the product within a few weeks.

Question 10

Chip-N-Dough Cookie Co.in Santa Ana, CA sells organic cookies to corporate customers in tins with the customer's corporate logo printed on it.The largest order has been for 15,000 tins or 360,000 cookies.This is an example of
A)family branding.
B)mass customization.
C)synergistic marketing.
D)market melding.
E)specialty customization.

Accepted Answer

This is an example of mass customization, as the cookies are made to order and personalized with the corporate logo.

Question 11

Lands' End will custom fit the Marinac jacket and make it with additional features such as thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com.This is an example of
A)family branding.
B)mass customization.
C)synergistic marketing.
D)market melding.
E)specialty customization.

Accepted Answer

This is an example of mass customization, which involves creating products according to the preferences and specifications of individual customers. Lands' End is offering custom fitting and additional features to satisfy the unique needs and preferences of each customer who orders the Marinac jacket.

Question 12

The greatest benefits to consumers when a firm chooses a one product multiple market strategy is __________.
A)improved service
B)increased number of choices
C)higher product quality and consumer value
D)lower retail prices because of lower marketing costs
E)lower retail prices because of lower production costs

Accepted Answer

When a firm uses a one product multiple market strategy, it can achieve economies of scale in production, leading to lower production costs, which can result in lower retail prices for consumers.

Question 13

MyTwinn makes dolls that look like young girls.For $119 they will make a doll that looks just like a photograph.So, if you send in the money and a photo of your young niece, she could have a doll that is her twin! This is an example of
A)family branding.
B)synergistic marketing.
C)market melding.
D)mass customization.
E)specialty customization.

Accepted Answer

This is an example of mass customization, where MyTwinn creates customized dolls based on the customer's specifications.

Question 14

Tailoring goods or services to the tastes of individual customers on a high-volume scale is referred to as
A)family branding.
B)mass customization.
C)synergistic marketing.
D)market melding.
E)specialty customization.

Accepted Answer

Mass customization refers to the ability of companies to tailor their goods or services to the tastes and preferences of individual customers on a large scale, without sacrificing efficiency or cost-effectiveness. This approach allows companies to offer the benefits of customization without sacrificing the economies of scale that come with mass production, making it an attractive option for businesses seeking to differentiate themselves from their competitors while maintaining profitability.

Question 15

Which of the following is an example of a "Tiffany/Wal-Mart" strategy?
A)College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the U.S.
B)A new movie used several different advertisements.One set of previews showed the action scenes in order to attract one audience, and the other set showed romantic scenes to attract another audience.
C)Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes.
D)Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22.
E)Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Accepted Answer

A "Tiffany/Wal-Mart" strategy involves offering products at different price points to target different market segments, similar to how Tiffany & Co. targets high-end consumers while Wal-Mart targets budget-conscious consumers. Gap's Banana Republic and Old Navy stores exemplify this by selling similar products at different price points.

Question 16

Which of the following is an example of a multiple products and multiple markets strategy?
A)College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the U.S.
B)A new movie used several different advertisements.One set of previews showed the action scenes in order to attract one audience, and the other set showed romantic scenes to attract another audience.
C)Betty Crocker carries one line of cake mixes for people with conventional ovens, and another line of cake mixes for people with microwave ovens.
D)Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes.
E)Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Accepted Answer

This choice illustrates a strategy where a company offers different product lines (cake mixes for conventional ovens and for microwave ovens) to cater to different market segments.

Question 17

To create a __________ strategy, nikeid.com allows customers to visit its Web site and design a sneaker to their own personal specifications.
A)product sampling
B)product extrapolation
C)mass customization
D)usage segmentation
E)psychographic segmentation

Accepted Answer

Mass customization is a strategy that allows customers to personalize a product to their own specifications. Nikeid.com provides customers with a platform to design their own sneakers, which fits the mass customization strategy. Product sampling refers to giving a free sample of a product to customers, product extrapolation involves expanding a product line, usage segmentation refers to segmenting customers based on how they use a product, and psychographic segmentation involves segmenting customers based on their lifestyles and beliefs. None of these strategies match the example provided in the question.

Question 18

Which of the following is an example of a multiple products and multiple markets strategy?
A)College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the U.S.
B)A new movie used several different advertisements.One set of previews showed the action scenes in order to attract one audience, and the other set showed romantic scenes to attract another audience.
C)Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of products.
D)Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes.
E)Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Accepted Answer

Ford is using a multiple products and multiple markets strategy by manufacturing SUVs for one market (people) and pickup trucks for another market (products). This allows them to have a broader customer base and appeal to different needs and preferences. The other choices are examples of either product differentiation or market segmentation, but not both.

Question 19

Kellogg's different types of cereals, each targeted at a different type of user, are an example of multiple products aimed at multiple markets.Manufacturing these different cereals is clearly more expensive than producing one but seems worthwhile if it adds to the manufacturer's sales revenues and profits, serves customers' needs better, and
A)conforms to all FDA guidelines.
B)creates economy of scale.
C)decreases the cost of the physical plant.
D)stabilizes the sales revenues and profits.
E)doesn't reduce quality or increase price.

Accepted Answer

The answer of Kellogg's different types of cereals, each targeted...

Question 20

When compared to a multiple-products-multiple-market segments strategy, a one-product-and-multiple-market-segment strategy
A)is a much more effective means of meeting consumers' individual needs.
B)creates greater cost savings in manufacturing costs.
C)is a more effective way of meeting organizational objectives.
D)have significantly higher distribution costs.
E)is more profitable since you can charge the new segment higher prices without changing the product.

Accepted Answer

A one-product-and-multiple-market-segment strategy creates greater cost savings in manufacturing costs because the company only needs to produce one type of product which reduces costs associated with producing multiple products. This allows the company to focus on meeting the needs of different segments without spending additional resources on developing multiple products.

Quiz 9: Market Segmentation, Targeting, and Positioning

The Walt Disney Company carefully markets two distinct Winnie-the-Poohs-such as the original line-drawn figures on fine china sold at Nordstrom and a cartoon-like Pooh on polyester bed sheets sold at Wal-Mart.This is an example of

When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids __________, which often results in extremely high research, engineering, and manufacturing expenses.

You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50, or you can buy a card that's not quite as nice but just as sentimental from the store's new $.99 line of greeting cards.This is an example of

One marketing action that can be taken to sell a single product or service to multiple market segments is

ChoiceShirts is an online company that makes custom T-shirts.Customers can make their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch.This is an example of

Chip-N-Dough Cookie Co.in Santa Ana, CA sells organic cookies to corporate customers in tins with the customer's corporate logo printed on it.The largest order has been for 15,000 tins or 360,000 cookies.This is an example of

Lands' End will custom fit the Marinac jacket and make it with additional features such as thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com.This is an example of

The greatest benefits to consumers when a firm chooses a one product multiple market strategy is __________.

MyTwinn makes dolls that look like young girls.For $119 they will make a doll that looks just like a photograph.So, if you send in the money and a photo of your young niece, she could have a doll that is her twin! This is an example of

Tailoring goods or services to the tastes of individual customers on a high-volume scale is referred to as

Which of the following is an example of a "Tiffany/Wal-Mart" strategy?

Which of the following is an example of a multiple products and multiple markets strategy?

To create a __________ strategy, nikeid.com allows customers to visit its Web site and design a sneaker to their own personal specifications.

Which of the following is an example of a multiple products and multiple markets strategy?

When compared to a multiple-products-multiple-market segments strategy, a one-product-and-multiple-market-segment strategy