Question 1

When Schlitz beer advertised its product with the slogan "You only go around once in life,so you might as well reach for the gusto," it was relying on demographic segmentation.

Accepted Answer

The slogan appeals to a psychological or lifestyle perspective, aiming to resonate with consumers' desires for making the most out of life, rather than targeting a specific demographic group.

Question 2

One of the forces influencing the growth of one-to-one marketing is more demanding and time-poor consumers.

Accepted Answer

One-to-one marketing caters to the individual preferences and needs of each customer, saving them time and providing a more personalized experience. As consumers become more demanding and have less time, they are turning to one-to-one marketing for a more efficient and convenient shopping experience.

Question 3

Reader's Digest magazine sent millions of subscribers with different medical conditions,such as high blood pressure or high cholesterol,a booklet filled with articles and prescription-drug ads,all about the very condition each person has.Reader's Digest's segmentation plan used benefit segmentation variables.

Accepted Answer

Benefit segmentation involves identifying the benefits that different groups of consumers are seeking from a product or service. In this case, Reader's Digest segmented their subscribers based on their medical condition and provided them with information and ads related specifically to their condition, which is an example of benefit segmentation.

Question 4

Elefanten is a manufacturer of high-priced designer shoes for children up to the age of 12.Its target market is parents with annual incomes greater than $75,000.Elefanten uses demographic segmentation variables.

Accepted Answer

The statement is true as Elefanten uses demographic segmentation variables, namely the age of the children and the parents' annual income, to target its market.

Question 5

Maple Leaf paint manufacturers traditionally use different formulas for developing paint to be used in the milder West,the frigid North,and the humid Maritimes.This is an example of how demographic segmentation is used.

Accepted Answer

This is an example of geographic segmentation, as it involves segmenting the market based on different geographic areas and their specific climate conditions.

Question 6

The difference between one-to-one marketing and the traditional mass marketing approach is difficult to articulate.

Accepted Answer

One-to-one marketing focuses on personalized interactions with individual customers, tailoring products, services, and communications to their specific needs, while traditional mass marketing targets a large audience with a one-size-fits-all message.

Question 7

Geography,psychographics,and benefits sought are examples of possible segmentation variables used by marketers.

Accepted Answer

These are all examples of typical segmentation variables that marketers might use to divide their consumer base into smaller, more specific groups for targeted marketing efforts.

Question 8

A segmentation plan must produce segments that exhibit responsiveness.In other words,if all customers are equally concerned about protecting the environment,there is no need to offer regular and all-natural versions to the segment.

Accepted Answer

A segmentation plan aims to identify groups of customers with different needs or responses to marketing efforts. If all customers share the same concern (e.g., protecting the environment), there's no need to differentiate products within that segment based on that concern, as responsiveness to the marketing mix would be uniform across the segment.

Question 9

Pitkin Enterprises produces animal figurines for children and young adults.For children,it makes hard-to-break figurines that are promoted and distributed in the same manner as the delicate,porcelain ones made for young adults.Pitkin engages in multisegment targeting.

Accepted Answer

Pitkin Enterprises engages in multisegment targeting by producing both hard-to-break figurines for children and delicate porcelain figurines for young adults, and promoting and distributing them differently based on the target market.

Question 10

Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife Gets Home.It is an advice book for new fathers.This is an example of the use of demographic segmentation variables.

Accepted Answer

This statement describes the use of a specific demographic variable (new fathers) to target a book's audience. This is an example of demographic segmentation, which involves dividing a larger market into smaller groups based on characteristics such as age, gender, income, or family life cycle stage.

Question 11

Faze magazine is a magazine targeted to Canadian teenagers.Its publisher most likely uses geodemographic variables for segmentation.

Accepted Answer

The answer of Faze magazine is a magazine targeted to...

Question 12

An HGTV television show called Designing for the Sexes obviously relies on psychographic segmentation.

Accepted Answer

The answer of An HGTV television show called Designing for...

Question 13

Reality-based television shows are targeted to people who like to believe that they could become a part of such a show and find their way to fame and fortune.This is an example of psychographic segmentation.

Accepted Answer

Psychographic segmentation divides a market based on personality traits, values, interests, and lifestyles of consumers. The statement describes a specific personality trait and interest of people who are attracted to reality-based television shows. Therefore, it is an example of psychographic segmentation.

Question 14

Segmentation by customer relationship occurs when business marketers segment their markets by income,occupation,and educational variables.

Accepted Answer

Segmentation by customer relationship occurs when business marketers segment their markets by the length and strength of the customer's relationship with the company, not by income, occupation, and educational variables.

Question 15

Munson Jams & Jellies is a small company in Manitoba.Its owner has been heard to say that she engages in mass marketing.Marketers would call her strategy an undifferentiated targeting strategy.

Accepted Answer

Munson Jams & Jellies' owner engages in mass marketing, which aims to appeal to the widest possible audience without segmenting or targeting specific groups. This approach is typical for undifferentiated targeting strategies.

Question 16

Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife Gets Home.It is an advice book for new fathers.An appropriate market segment for this book could be family life cycle.

Accepted Answer

The book is aimed at providing advice to new fathers on how to take care of their baby while their wife is away. This is a specific segment of the family life cycle that includes new parents who are adjusting to their new roles and responsibilities. Hence, it is true that the appropriate market segment for this book could be family life cycle.

Question 17

Once a marketer is aware of all possible segmentation variables,choosing which variables to use is a simple,scientific process.

Accepted Answer

Choosing which variables to use for segmentation is not a simple, scientific process. It involves considering various factors such as the company's objectives, target market characteristics, available data, and resources. It requires careful analysis, testing, and fine-tuning to identify the most effective segmentation variables.

Question 18

The business market consists of four broad segments.They are producers,resellers,governments,and regions.

Accepted Answer

The business market consists of four broad segments: producers, resellers, governments, and institutions, not regions.

Question 19

Clorox targets individuals who buy lots of cleaning products (heavy users).Some of these users are mainly interested in cleaning bathrooms,while others are more concerned with kitchen cleanliness.Clorox doesn't approach these two groups differently but addresses both types of people as heavy users.This is an example of how companies use benefit segmentation.

Accepted Answer

This is an example of usage-rate segmentation, not benefit segmentation, as it categorizes consumers based on the volume of product use (heavy users) rather than the specific benefits they seek from the product (e.g., bathroom cleanliness vs. kitchen cleanliness).

Question 20

7-Eleven Stores learned that 25 percent of its shopping base is responsible for a substantial majority of its revenue.This is the general idea posited by the 80/20 principle.

Accepted Answer

The statement is true. The 80/20 principle (also known as the Pareto principle) suggests that 80 percent of effects come from 20 percent of causes, and can often be applied to business where a small percentage of customers or products generate the bulk of revenue. In this case, 7-Eleven found that 25 percent of its customers were responsible for generating the majority of its revenue.

Quiz 6: Segmenting and Targeting Markets