1) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________.
A) adapted marketing
B) mass marketing
C) market targeting
2) What are the four steps, in order, to designing a customer-driven marketing strategy?
A) market segmentation, differentiation, positioning, and targeting
B) positioning, market segmentation, mass marketing, and targeting
C) market segmentation, targeting, differentiation, and positioning
D) market alignment, market segmentation, differentiation, and market positioning
E) market recognition, market preference, market targeting, and market insistence
3) Even though several options are available at any one time, there ________ to segment a market.
A) is one single best way
B) is no single way
C) is a most effective way
D) are limited ways
E) are four ways
4) Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be ________ segmentation.
5) Pendergraff Pet Supplies divides the pet market according to the owners’ race, occupation, income, and family life cycle. What type of segmentation does Pendergraff use?
6) Which of the following is the most popular method for segmenting markets?
7) Demographic variables are frequently used in market segmentation because they ________.
A) create smaller segments than other methods do
B) create more easily reached segments than other methods do
C) do not involve stereotypes
D) are easy to measure in comparison to many other methods
E) involve fewer attributes to consider than other methods do
8) Marketers must be most careful to guard against which of the following when using age and life-cycle segmentation?
C) traditional marketing
D) cultural bias
E) gender bias
9) When Positive Image, Inc. caters to clothing, cosmetics, and toiletries markets, it most likely uses which type of segmentation?
10) Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation?
D) usage rate
E) readiness stage
11) Lifestyle characteristics and personality characteristics are two types of variables used in ________ segmentation.
C) social class
E) user status
12) The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation.
C) age and life cycle
13) Which type of segmentation centers on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item?
14) Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called ________.
A) user status
B) usage rates
E) loyalty status
15) Your current assignment at York Foods is to find the major benefits people look for in product classes, the kinds of people who look for each benefit, and the major brands that deliver each benefit. What is this segmentation method called?
C) age and life cycle
16) Shampoo marketers rate buyers as light, medium, or heavy product users. This is ________ segmentation.
B) user status
C) usage rate
17) Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ________.
A) user status
B) loyalty status
C) store type
D) brand preference
E) usage rate
18) By studying its less loyal buyers, a company can detect which brands are most ________ its own.
A) competitive with
B) used with
C) overlooked with
D) similar to
E) complementary to
19) Many firms make an effort to identify smaller, better-defined target groups by using ________.
B) concentrated marketing
C) multiple segmentation bases
E) mass marketing
20) Consumer and business marketers use many of the same variables to segment markets. Business marketers use all of the following EXCEPT ________.
A) operating characteristics
B) purchasing approaches
C) situational factors
D) personal characteristics
E) brand personalities
21) As in consumer segmentation, many marketers believe that ________ and ________ segmentation provide the best basis for segmenting business markets.
A) geographic; demographic
B) user status; user loyalty
C) benefits; buying behavior
D) age and life-cycle; psychographic
E) income; usage rate
22) International Drilling Company segments its foreign markets by their overall level of economic development. This firm segments on what basis?
A) political factors
B) legal factors
C) geographic factors
D) economic factors
E) cultural factors
23) Lexus targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________.
A) intermarket segmentation
B) loyalty segmentation
C) life-cycle segmentation
D) targeting segmentation
E) psychographic segmentation
24) Cross-market segmentation is also known as ________.
A) intermarket segmentation
B) international segmentation
C) regional segmentation
D) mass-market segmentation
25) When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________.
26) When a business market segment is large or profitable enough to serve, it is termed ________.
27) When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________.
28) You have discovered that the segments you are targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. These segments are ________.
29) The markets you have chosen to serve in four western states can be effectively reached and served. You would tell the marketing manager that these segments are ________.
30) To evaluate the different market segments your company serves, you would look at all of these factors EXCEPT which one?
A) segment size
B) segment growth
C) segment structural attractiveness
D) company values
E) company resources
31) Barney Hopkins has compiled a list of things that make segments more attractive. Which one of the following items should NOT be on the list?
A) relative power of buyers
B) lack of powerful suppliers to control prices
C) few substitute products
D) competition with superior resources
E) financial resources
32) Which of the following is NOT one of the reasons a segment would be less attractive to a company?
A) strong competitors
B) substitute products
C) concentrated market
D) power of buyers
E) power of suppliers
33) In general, a company should enter only segments in which it can ________ and ________.
A) offer lower prices; ship faster
B) offer superior value; gain advantages over competitors
C) offer superior value; ship faster
D) gain advantages over competitors; mass market its products
E) offer lower prices; develop customer loyalty
34) Mass marketers, such as Target and Venture Stores, often ignore market segment differences and target the whole market with one offer. What is their approach to segmenting?
A) undifferentiated marketing
B) differentiated marketing
C) target marketing
D) concentrated marketing
35) The 55-year-old baby boomers share common needs in music and performers. When a music company decides to serve this group, the group is called a(n) ________.
A) market segment
B) target market
C) niche market
D) micro market
E) undifferentiated market
36) When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing.
37) Developing a strong position within several segments creates more total sales than ________ marketing across all segments.
38) ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________ against ________ when selecting this strategy.
A) extra research; costs
B) sales analysis; sales
C) increased sales; increased costs
D) geographic segmentation; demographic segmentation
E) attitudes; perceptions
39) P&G sells six brands of laundry detergent in the United States, each designed for one of six laundry segments P&G has identified. Together, these six brands take 62% of market share. Which of the following is a disadvantage of P&G’s differentiated marketing strategy?
A) lost sales that would have been made with an undifferentiated marketing strategy across all segments
B) lost customer loyalty due to lack of brand loyalty
C) increased costs for separate marketing plans for each brand
D) other suppliers controlling pricing
E) lack of resources to succeed in an attractive segment
40) Successful niche marketing is most dependent on a firm’s ________ and its ________.
A) promotions strategy; services
B) individual relationships with customers; positioning
C) superior products; value network partners
D) greater knowledge of customers’ needs; special reputation
E) competitive advantage in comparison to mass-market companies; affordable pricing
41) Using concentrated marketing, the marketer goes after a ________ share of ________.
A) small; a small market
B) small; a large market
C) large; one or a few niches
D) large; the mass market
E) moderate; local
42) Today, the low cost of setting up shop ________ makes it even more profitable to serve very small niches.
A) in malls in major cities
B) in central business districts
C) on the Internet
D) near major competitors
E) far from competitors
43) Which of the segmenting strategies carries higher-than-average risks in consumer markets?
44) As You Like It, Inc. customizes its offers to each individual consumer. This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________ marketing.
45) ________ tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores.
B) Differentiated marketing
C) Niche marketing
D) Local marketing
E) Individual marketing
46) Which of the following is the narrowest marketing strategy?
A) segmented strategy
B) local marketing
C) differentiated marketing
D) mass marketing
E) undifferentiated marketing
47) Which of the following is NOT a drawback of local marketing?
A) It can drive up manufacturing costs.
B) It can drive up marketing costs by reducing economies of scale.
C) It can create logistics problems.
D) A brand’s overall image might be diluted through too much variation.
E) Supporting technologies are not available.
48) When Walmart customizes its merchandise store by store to meet shopper needs, it is practicing ________.
A) niche marketing
B) psychographic marketing
C) local marketing
D) social segmentation
E) individual marketing
49) When a company interacts one-on-one with large numbers of customers to create customer-unique value by designing products and services tailor-made to individual needs, it is following ________.
B) mass marketing
C) mass customization
D) differentiated marketing
50) When choosing a target marketing strategy, many factors need to be considered. Which of the following does your text NOT mention as important?
A) company resources
B) degree of product variability
C) product life-cycle stage
D) product cost
E) competitors’ marketing strategies
51) When competitors use differentiated or concentrated marketing, ________ marketing can be disastrous.
52) Target marketing sometimes generates controversy and concern. Issues usually involve the targeting of ________ consumers with ________ products.
A) elderly; durable
B) young; appealing
C) vulnerable; marketing
D) vulnerable; potentially harmful
E) unexpected; deceptive
53) It is considered socially irresponsible when the marketing of adult products spills over into the ________ segment.
54) Cigarette, beer, and fast-food marketers have generated much controversy in recent years by their attempts to target ________.
A) urban professionals
B) the elderly
C) inner-city minorities
D) the poor in foreign markets
E) suburban adults
55) Most attempts to target children and minority groups provide ________ to target customers.
56) In target marketing, the issue of social responsibility is not really who is targeted, but rather ________ and for ________.
A) why; what
B) how; what
C) why; how long
D) where; how long
E) how; how long
57) Which group determines a product’s position relative to competing products?
58) A product’s position is based on important attributes as perceived by ________.
C) market conditions
59) Which of the listed choices is NOT a positioning task?
A) identifying a set of possible competitive advantages upon which to build a position
B) surveying frequent users of the product
C) selecting an overall positioning strategy
D) effectively communicating and delivering the chosen position to the market
E) selecting the right competitive advantages
60) A company or store gains a(n) ________ by differentiating its products and delivering more value.
A) competitive advantage
B) positioning advantage
C) cost advantage
D) efficiency advantage
61) A company or market offer can be differentiated along the lines of product, image, services, channels, or ________.
D) customer service
62) Which type of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance?
A) services differentiation
B) channel differentiation
C) people differentiation
D) product differentiation
E) price differentiation
63) When firms use symbols, colors, or characters to convey their personalities, they are using ________ differentiation.
64) Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to it. What does USP stand for?
A) unique selling product
B) unique services practice
C) unique sales pitch
D) unique selling proposition
E) unique strategic practice
65) A brand difference is worth establishing and promoting to the extent that it satisfies all of the criteria below EXCEPT which one?