66) You have just created the “perfect” ad. It communicates the full mix of benefits upon which the brand is differentiated and positioned. This full positioning of the brand is called ________.
A) its value proposition
B) target marketing
C) capturing the consumers’ attention
D) value profiling
E) differentiated marketing
67) The answer to the customer’s question “Why should I buy your brand?” is found in the ________.
A) quality image
B) customer services
C) value proposition
E) pricing and promotion structure
68) What competitive positioning can attack a more-for-more strategy by introducing a brand offering with comparable quality at a lower price?
69) Which positioning strategy offers consumers a “good deal” by offering equivalent-quality products or services at a lower price?
70) “Less-for-much-less” positioning involves meeting consumers’ ________.
A) quality performance requirements at a lower price
B) lower quality requirements in exchange for a lower price
C) lower quality requirements at the lowest possible price
D) high quality requirements at a discounted rate
E) high quality requirements at the lower possible price
71) Few people can afford the best in everything they buy. At times everyone needs a product with less quality or performance with a correspondingly lower price. In this case a consumer would purchase a product positioned with a ________ strategy.
72) Which difficult-to-sustain positioning strategy attempts to deliver the “best-of-both”?
73) When it first opened for business, Home Depot claimed to offer better products at lower prices. This hard-to-sustain value proposition is called ________.
74) Which type of statement first indicates the product’s membership in a category and then shows its point-of-difference from other members of the category?
A) mission statement
B) vision statement
C) differentiation statement
D) positioning statement
E) statement of intent
75) What is the following an example of? “To busy, mobile professionals who need to always be in the loop, BlackBerry is a wireless connectivity solution that gives you an easier, more reliable way to stay connected to data, people, and resources while on the go.”
A) positioning statement
B) service differentiation
C) concentrated segmentation
D) competitive advantage
E) irresponsible target marketing
76) When marketers at Procter & Gamble selected the Millennials, a demographic that includes college students, as an untapped group of potential customers for their Febreze line of products, they were executing which step in the process of designing a customer-driven marketing strategy?
A) market segmenting
B) mass marketing
77) When Pacific Fisheries groups its customers by regions such as Asia, Australia, or New Zealand, it is using which segmenting base?
A) economic factors
B) political and legal factors
C) geographic location
D) benefits sought
78) When Burger King targets children, teens, adults, and seniors with different ads and media, it is practicing ________ segmentation.
A) user status
B) age and life-cycle
79) Segmenting voters as either Democrats or Republicans is an example of ________.
A) psychographic segmentation
B) demographic segmentation
C) occasion segmentation
D) intermarket segmentation
E) A and D
80) At one time Miller Beer was known as the “champagne of bottled beer.” Unfortunately, Miller drinkers did not drink much beer. To increase sales, Miller was repositioned to attract the members of the middle working class. This segmentation approach is ________.
A) user status
B) usage rate
81) MTV targets the world’s teenagers, who have similar needs and buying behavior even though they are located in different countries. This is called ________ segmentation.
A) political and legal
82) An organic farmer has identified three distinct groups who might be interested in his products: vegetarians, people who are concerned about chemicals in their foods, and people who consider themselves innovators and trendsetters. These three groups are examples of ________.
A) marketing mixes
B) market segments
C) product mixes
D) mass markets
E) market positions
83) A catalog retailer has identified African-American professionals between the ages of thirty-five and forty-five as the group of customers within the larger market that is a potential market for its products. The retailer plans to direct its marketing efforts toward this group of consumers. The retailer has identified a ________.
A) target market
B) marketing mix
C) product mix
D) mass market
E) market aggregation
84) Jolene Enterprises mass produces an all-purpose floor cleaner, mass distributes it and mass promotes it. This firm uses ________ marketing.
E) mass customization
85) A marketer focuses on several commonalities among all consumers. This marketer appears to be engaging in ________.
A) differentiated marketing
B) undifferentiated marketing
C) segmented marketing
D) concentrated marketing
E) mass customization
86) Sanguine Services is a small company that practices a marketing strategy in which its limited resources are used to go after a large share of two small niches. Sanguine practices which one of these strategies?
E) geographically dispersed
87) Bob and Phyllis Cords own two retail stores, one in Pottstown and one in Norristown. Though the towns are only 40 miles apart, the consumers at both stores are very different demographically. Bob and Phyllis alter the product offerings between both locations in an effort to cater to both demographic groups. This is an example of ________.
A) local marketing
B) psychographic segmentation
C) mass customization
D) demographic segmentation
E) A and C
88) Jay Bee Promotions tailors its advertising and promotional services to the needs and preferences of individual customers. Which of the following terms does NOT apply to this type of marketing?
E) mass customization
89) There are several different sports watches for cyclists. When compared to its competitors, the Bike Nashbar watch is the least expensive. The Acumen Basic is the only one designed for older cyclists who prefer a larger display. Sports Instrument is the most comfortable of all the available watches. This describes the ________ of the three sports watches.
A) marketing mixes
B) mass marketing strategies
D) consumer orientations
E) selling orientations
90) When comparing itself to its competitors, Hidden Valley describes its Ranch dressing as the original. This is the ________ the manufacturer has planned for the product.
A) marketing mix
B) market segment
D) services differentiation
E) channel differentiation
91) The Jay Group hires better employees than the competition by conducting lengthy searches and interviews. Management also trains employees much better than competitors do. The Jay Group has gained a strong competitive advantage through which type of differentiation?
92) Ford Motor Company emphasizes “Quality First?Ford Tough” in its truck products. In doing so, the company has developed a differentiation strategy based on ________.
93) Cheap Heaps Auto specializes in lower quality vehicles, with a few dents, that are priced a great deal lower than other used cars. Cheap Heaps has chosen to position its products with a ________ strategy.
A) more-for-the same
E) A or C
94) Neiman Marcus claims superior quality, performance, and style. The owners provide the most upscale products and services and charge a higher price to cover the higher costs. What type of positioning does Neiman Marcus use?
95) Superior Auto Sales, a chain of high-end used car dealerships, wants to sum up its company positioning and brand positioning in a formal way. Superior’s management would use a ________.
A) mission statement
B) vision statement
C) competitive statement
D) positioning statement
E) company statement
96) Which of the following statements illustrates why stereotypes should be avoided when using age and life-cycle segmentation?
A) Old women love to shop; young women love it more!
B) Most 10-year-old boys are mischievous.
C) Some 70 year olds use wheelchairs; others play tennis.
D) The majority of 20 year olds have to work; the same holds true for 30 and 40 year olds.
E) both C and D
97) Which of the following is the most logical reason for P&G offering products that compete with one another on the same supermarket shelves?
A) Different people want a greater selection.
B) Procter & Gamble has little competition.
C) Different people want different mixes of benefits from the products they buy.
D) Retailers request it.
E) It creates healthy competition.
Refer to the scenario below to answer the following questions.
Herb Marks was making wooden writing utensils as a hobby until Mel Yoder recognized Herb’s talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop’s showcase. Within three months, the writing utensils were a hit! Herb Marks had never thought of marketing his talent, but Mel’s enthusiasm and the recent sales were enough to change his mind.
With limited resources, Herb contacted three additional specialty shops within 100 miles. He explained his manufacturing processes and engraving options to each. All three shops’ owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic!
“I figured business would slow down after that,” Herb stated, “but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business.”
Elmore Distributors provides products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore’s promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils.
“I had to get a grip on the magnitude of this project,” Herb added. “I couldn’t grow out of control. I was already working to capacity.”
Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers.
“At this point, I had set up an assembly line in a rented building,” Herb explained. “I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials.” Herb paused. “But I can’t take the Elmore project for granted. It might not always be there. I’ll have to have a good alternate plan if that day comes.”
98) In the scenario, how does Herb segment his market?
A) loyalty status
B) usage rate
99) In marketing his writing utensils to his four specialty-shop customers, Herb is using ________ marketing.
D) mass customization
100) If Herb produced a variety of styles of pens and pencils with various wood types and engravings that he tailored specifically to each individual’s order, he would be practicing ________.
A) concentrated marketing
B) local marketing
C) undifferentiated marketing
D) mass customization
101) Today, most companies have moved back toward mass marketing and are being choosier about the customers with whom they wish to build relationships.
102) Your company wants to move away from mass marketing and engage in customer-driven marketing. The four steps to take, in order, are market segmentation, marketing positioning, differentiation, and targeting.
103) Demographic segmentation can be used to divide the market by different time periods of people’s lives and different family situations.
104) Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines.
105) Your assignment at work is to divide buyers into different groups based on social class, lifestyle, and personality characteristics. After a planning session with the marketing and sales staff, you issue a memo to upper management recommending psychographic segmentation. You are right on target.
106) Research about and planning for loyalty status as a segmentation approach is generally not useful or practical for most firms.
107) For simplicity’s sake, most marketers generally limit their segmentation analysis to one or a few variables.
108) Clusters of marketable groups of customers with similar likes, dislikes, lifestyles, and purchase behaviors can be identified by multivariable segmentation systems that merge and analyze geographic, demographic, lifestyle, and behavioral data.
109) There are many exceptions to the geographic segmentation assumption that consumers in nations close to one another will have many common behaviors and traits.
110) Because there is such variation among the economies of countries around the world, it is not practical to segment international markets on the basis of economic factors.
111) In evaluating different market segments, a firm should look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources.
112) At a recent marketing seminar, the featured speaker stated that a target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. This is a correct definition.
113) Developing a stronger position within several segments creates more total sales than undifferentiated marketing across all segments.
114) Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies.
115) Though the use of mass marketing has been widespread in the past 100 years, for centuries consumers were served as individuals as businesses practiced individual marketing.
116) Mass marketing is becoming a marketing principle for the 21stcentury.
117) When a company chooses a target marketing strategy, its choices are influenced by factors related to company resources, the degree of product variability, and the product’s life-cycle stage.
118) A product’s position is the way the product is defined by the retailers who sell it to target markets. It is how it is defined on important attributes?the place the product occupies in the retailers’ minds relative to competing products.
119) Consumers position products in their minds in order to simplify the buying process.
120) A market rarey exists for products that offer less and therefore cost less.
121) Bombay Gifts divides its markets into units of nations, regions, and cities. Bombay uses geographic segmentation.
122) Shopping for the Rich and Famous is a buying service that helps wealthy clients find the best buys in exclusive clothing, high-end cars, travel, and financial services. This firm most likely uses income segmentation.
123) LaGrange Florists segments markets into groups of nonusers, ex-users, potential users, first-time users, and regular users of its flowers and services. This firm uses usage rate as its segmentation approach.
124) Because Cruise Ships International currently has limited financial and personnel resources, it should avoid concentrated or niche marketing until its resources are again substantial.
125) Kia offers a new car model with the same features as a comparable but higher priced Toyota or Ford and provides a longer warranty. Kia is following a more-for-less strategy.
126) Explain the four major steps in designing a customer-driven marketing strategy.
127) Explain the four major segmenting variables for consumer markets.
128) Describe how marketers use multiple-segmenting bases to their advantage.
129) Why do businesses segment their markets?
130) Why do international markets need to be segmented?
131) Imagine that you are presenting a workshop on the Requirements for Effective Segmentation. Briefly describe the five items that will help your audience understand your topic.
132) Explain how companies identify attractive market segments and choose a target marketing strategy.
134) In what ways might a marketer engage in socially responsible target marketing?
135) Explain the concept of positioning for competitive advantage.
ny must then effectively communicate and deliver the chosen position to the market.
136) Why do marketers segment the market?
137) When might be the best time for a marketer to use geographic segmentation?
138) Why might demographic segmentation be the most common type of segmentation?
139) Why must marketers guard against stereotypes when using age and life-cycle segmentation?
140) If Kool-Aid promotes a year-round campaign that “Kool-Aid isn’t just a summertime drink,” what type of segmentation is being used?
141) What is one way in which a marketer can attract nonloyal consumers?
142) How might a marketer benefit from using PRIZM?
143) List three variables not applicable to the consumer market that may be used to segment business markets.
144) What factors may impact segment attractiveness?
145) What is one major assumption made by marketers who choose to use an undifferentiated marketing strategy?
146) XYZ Computers, Inc., a business with limited resources, is a market nicher. How might XYZ benefit from this?
147) BMW allows customers to design their own vehicle from a set of options at BMW’s Web site. What is this called?
148) Explain how market variability impacts the choice of a target-marketing strategy.
149) Why might a marketer of laundry detergent be interested in viewing a perceptual positioning map?
150) In what ways might a marketer be able to gain competitive advantage through channel differentiation?