question

Fisher-Price developed a line of toys for infants in China. Babies make up the market for these products.

answer

Infants do not have an ability to buy and, therefore, cannot be called a market. Their parents would constitute a market.

question

Fisher-Price is identifying Asian markets that are interested in their line of talking toys. Fisher-Price is engaged in the process of market segmentation.

answer

True

question

Until the 1990s, few firms practiced market segmentation.

answer

Until the 1960s, few firms practiced market segmentation.

question

A market segment is deemed to have substantiality if it contains a large number of potential customers.

answer

Substantiality of a segment refers to a segment being large enough to warrant developing and maintaining a special marketing mix. This does not necessarily require large numbers of potential customers.

question

A segmentation plan must produce segments that are accessible—that is, the firm must be able to reach members of targeted segments with customized marketing mixes.

answer

True

question

Markets are always segmented by at least two variables.

answer

Although it is less precise, single-variable segmentation is possible; it has the advantage of being simpler and easier to use than multiple-variable segmentation.

question

U.S. paint manufacturers traditionally use different formulas for developing paint to be used in the humid Southeast, the frigid Midwest, and the hot and dry Southwest. This is an example of how demographic segmentation is used.

answer

Regional marketing is an example of using geographic segmentation variables.

question

A market segmentation study done by the University of Thessaly in Greece classified recreational skiers in terms of their gender, age, and income levels. The study used psychographic segmentation variables.

answer

These are examples of demographic segmentation variables.

question

Abbeville Press published a book by Armin Brott and Jennifer Ash entitled The Expectant Father: Facts, Tips, and Advice for Dads-to-Be.. It is an advice book for men whose partners are expecting a baby. The market for this book is based on demographics.

answer

True

question

In the United States, women tend to be the key household decision-makers for many products, such as home furnishing purchases, vacations, and autos.

answer

True

question

In market segmentation, individual psychographic variables can be combined with other variables to provide more detailed descriptions of market segments.

answer

True

question

Geodemographic segmentation combines geographic, demographic, and lifestyle segmentations.

answer

True

question

Clorox describes individuals who buy lots of cleaning products as heavy users. This is an example of how companies use benefit segmentation.

answer

Usage-rate segmentation usually describes product usage with categories like heavy and light.

question

The 80/20 principle implies that the majority of all demand is due to a minority of the customers.

answer

True

question

The business market consists of four broad segments: producers, resellers, government, and regions.

answer

The four segments are producers, resellers, government, and institutions.

question

Company characteristics, such as geographic location, type of company, company size, and product use, can be important segmentation variables.

answer

True

question

While it is important to understand potential business customers' buying processes, this is not a helpful segmentation basis.

answer

Many business marketers find it helpful to segment customers and prospective customers on the basis of how they buy.

question

The first step in segmenting a market is to choose a basis or bases for segmenting the markets.

answer

The first step is to select a market or product category for study.

question

One reason marketers use market segmentation as a tool is that once completed, the process need not be repeated.

answer

Markets are dynamic, so it is important that companies proactively monitor their segmentation strategies over time.

question

Dakin Farms in Vermont uses mass marketing. Marketers would call the strategy an undifferentiated targeting strategy.

answer

True

question

Small firms often adopt a concentrated marketing strategy to compete effectively with larger firms.

answer

True

question

Procter & Gamble markets six different brands of laundry detergent, such as Tide, Era, Gain, and Dreft, each targeting a different market segment. This is an example of concentrated targeting.

answer

This illustrates a multisegment targeting strategy.

question

Increasing share of customer means getting more customers.

answer

Increasing share of customer means selling more products to each customer, not getting more customers.

question

Marketers are rediscovering that the "one-size-fits-all" approach to marketing is still relevant.

answer

The one-size-fits-all marketing is no longer relevant. Consumers want to be treated as the individuals they are, with their own unique sets of needs and wants.

question

A product's position refers to where it is located on store shelves.

answer

Position is the place a product, brand, or group of products occupies in consumers' minds relative to competing offerings.

question

Product differentiation is a positioning strategy.

answer

True

question

A product's positioning could be based on product users.

answer

True

question

Consumers' perceptions regarding a product's position cannot be changed.

answer

Repositioning is changing consumers' perceptions of a brand in relation to competing brands.

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