Marketing Ch.4 Mini Test – Flashcards
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One way to segment markets for business customers is by industry type. This approach is attractive because many industries have __________ which makes it cost effective to communicate with businesses in that Industry?
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Trade associations.
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A(n) ______________ targeting strategy uses a mass market approach to reach as many people as possible with the same marketing mix.
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Undifferentiated
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According to Michael Porter, there are three fundamental marketing strategies. Why is this important to understand in a discussion of market segmentation?
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Because there is only room for one low-cost producer in an industry, everybody else will need to use a differentiation or focus strategy. Market segmentation is a tool you can use to help differentiate your product.
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Adam had an idea for a new smartphone accessory. He showed his idea to ten of his friends. Three of them loved the idea, four of them thought it was OK, but nothing special and three of them hated the idea. If he develops the product, he will need to sell at least 10,000 in order to make money. He was wondering whether or not to develop the product when he remembered the law of large numbers from Professor Robertson's marketing class. Based on that, he decided to __________?
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Continue to develop the product knowing that because there are millions of smartphone users, there will probably be a large enough group who like the product for it to be successful.
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Baking soda is an ingredient in cooking. It also has the property of absorbing odors. The Arm and hammer company found that many people were leaving an open box of baking soda in their refrigerator to absorb food odors. In order to take advantage of this opportunity, they developed a special package with many air vents specifically for use as a refrigerator deodorant. Arm and hammer used ______________ segmentation to develop this product?
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Buying situation
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Which of the following statements about the bin theory or memory is FALSE?
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All of these statements about the bin theory of memory are true.
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Which of the following sources of information is frequently ignored when determining a company's actual market position?
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Complaints from dissatisfied customers.
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Bruce wanted to open a coffee shop. He knew his coffee was way better than anything Starbucks could do so he opened his first store across the street from a Starbucks Store. He ran advertisements in the local paper claiming "Bruce's Brew is better than Starbucks Stuff" and offered a money back guarantee to any Starbucks customer who was willing to try a cup of Bruce's Coffee. Bruce is using a _______________ positioning strategy.
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Head to head
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Bruce wanted to open a coffee shop. He knew his coffee was way better than anything Starbucks could do because he ran taste tests with people in the neighborhood. He found that people in his area preferred their coffee with just a hint of cinnamon in it. When he opened his first store across the street from a Starbucks store, he ran advertisements claiming "Bruce's Brew is the spice of life," and offered a coupon good for a free cinnamon grinder with purchase of Bruce's Best. Bruce is using a _______________ positioning strategy.
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Differentiation
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____________ is understanding how customers perceive your product and managing their perceptions relative to competing products?
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Positioning
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How many segments should a company target?
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The number that allows you to maximize profits with the resources available to you
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According to Michael Porter's theory discussed in class, which is best strategy to use when you are not the low cost producer in an industry?
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Differentiate your product.
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One of the issues facing _______________, people born between 1946 and 1964 is coming to terms with growing older?
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Baby boomers
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OK, so you have successfully divided the potential market into three target market segments. What do you do next?
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Create specific product/market offerings to satisfy unmet needs in each segment
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The fact that people different people might use the same product for different reasons is a problem when it comes to segmentation based on buyer behavior.
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False
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In the three circles positioning framework presented in class, what does "the bar" represent?
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Areas where you need to be competitive, but will not give you a competitive advantage
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Roxanne has completed her positioning analysis and has decided that there is an opportunity to create an adult milk beverage that is enhanced with vitamins. Currently, her company does not make such a product, nor for that matter do any of her competitors. Roxanne has the opportunity to?
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Create a new category by introducing a product that is different from anything else on the market.
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Roxanne has completed her positioning analysis and believes she understands why her adult milk beverage has been performing so badly. Her product was the first product to use aseptic packaging, which allows milk to be stored at room temperature for long periods of time. Introduced in 1999, the product was positioned as a survival food because everybody was worrying about Y2K problems at the turn of the century. Today people are more concerned about nutrition and her aseptic milk is very low in fat. To take advantage of this, she changes her advertising slogan from "It will keep you alive in the next century" to "A healthy beverage, ready and waiting". Roxanne is trying to?
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Reposition her product against itself
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The goal of positioning is to have your product become the exemplar for its category.
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True
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According to Ries and Trout, consumers organize products into categories in their minds. The goal of positioning is to?
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Make it so that your product is the first thing that comes to mind when a category is mentioned.
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Which of the following is a condition that must be met before you can consider a group of people to be a market segment?
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They must be similar to each other, at least with respect to you product.
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Bruce recently went to the eye doctor because he couldn't see clearly enough to do the sudoko puzzle on his iPad. He could see well enough to drive, just not well enough to do the puzzle. His eye doctor said he had presbyopia, a condition that is common in people who are middle aged. The doctor said that Bruce could continue to do the crossword puzzle, but he would need to wear reading glasses. Clearly, a manufacturer of reading glasses would benefit from using a ______________ segmentation approach.
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Demographic
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Which of the following is NOT a requirement of a market segment?
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Environmentally responsible
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Age cohorts are an effective basis for market segmentation because
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People in the same age group share many similar experiences which could affect their consumption patterns
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A(n) ______________ targeting strategy focuses on one specific marketing segment with one marketing mix?
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Focus
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Why is it that many businesses may be unaware of how they are actually perceived in the market place
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Because much of the information executives get is from people who are paid by the company.
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When retrieving memories, most people access the exemplar and up to two additional memories in the category.
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False
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One of the advantages of the three circles positioning framework is that it shows you where your competitors are wasting their time.
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True
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In the three circles positioning framework presented in class, what area of the chart indicates how you are currently differentiated in the marketplace?
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Your unique position
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In the three circles positioning framework presented in class, which area represents the area for creating an attractive new position in the marketplace?
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Opportunity to strengthen position
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The point of discussing the different bases for segmenting markets was?
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You can use any combination of segmentation variables to develop market segments that work for your organization.
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Iago and Desdemona were merchants selling a variety of goods in Venice Beach. They felt they had saturated the local market and were thinking of expanding their business to a nearby community. What factors should they consider as they decide which geographic segment to enter next?
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They should consider all of these factors.
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The VALS system identifies eight consumer segments based on (1) ____________ and (2) _______________?
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Primary motivation, resources
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Many national magazines such as Time or Business Week contain advertising that is different depending on where in the country the magazine is purchased. These regional editions are useful for marketers trying to communicate with customers who have been segmented according to ____________?
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Geograpy
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What is the 80-20 rule?
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In general, 80% of your business comes from 20% of your customers
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The three circles positioning framework presented in class suggests using all of the following EXCEPT ___________ to help clarify a market position?
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Related industries
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Every time you compare your product to a competitor's, you are promoting your competitor's product.
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True
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Roxanne has completed her positioning analysis and now understands why her line of adult milk beverages has been performing so badly. There are too many competitors out there and she hasn't been able to gain market share from the category leader - Bruce's Power Gulp, a vitamin enhanced milk beverage. She believes there are people out there who would prefer a less-processed product at a lower price. She decides to change her advertising slogan to "The Fresh Alternative to enhanced milk beverages". Roxanne is trying to?
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Reposition her product against the competition
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What is the easiest way to become the category leader for a product category?
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Develop a brand new product that is different from anything else on the market.
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What is the hard way to become the category leader?
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Use the marketing mix to improve your position in an existing category.
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Which of the following is a condition that must be met before you can consider a group of people to be a market segment?
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The market potential of the group must be large enough to make it economically viable.
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Which of these statements about Porter's fundamental strategies is true?
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There is only room for one low cost producer in a market.
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The most attractive market segment for fast food restaraunts is heavy users (no pun intended). These customers visit fast food restaraunts 14 or more times per month on average. This is an example of _______________ segmentation in the fast food industry?
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Buying situation
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What do we mean when we say a market segment is "reachable"?
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There is a way of communicating with people in the segment.
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One of the reasons the examples in class may seem obscure to you is that your instructor was born between 1946 and 1964 and most of the students in marketing 431 are members of ______________, born between 1977 and 1994?
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Generation Y (Millennials)
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The three steps for developing a market position (or for developing any strategy, really) are?
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Figure out where you are now, figure out where you want to end up, develop a plan to get you from where you are to where you want to be.
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A ______________ is a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands relative to its own and then take marketing action?
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Perceptual map
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Which of the following is NOT a good source of information to use in understanding your current market position?
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Self knowledge
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Which of the following is NOT a way perceptual maps can help you with your positioning strategy?
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Determine which of two alternative products your customers will prefer.
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Roxanne has completed her positioning analysis and has decided that she needs to reposition her product to a more attractive segment. In order to do this she needs to consider?
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She needs to consider all of these things.
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A(n) ______________ targeting strategy develops more than one distinct marketing mix?
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Multisegment
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What is the point you instructor was trying to make when discussing the law of "truly large" numbers
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That if you have a large enough group of people there will probably be subgroups who are similar to each other at least in the way they perceive your product.
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Which of the following was NOT one of the bases for market segmentation discussed in class?
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Statistics
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What is the relationship between the law of truly large numbers and market segmentation?
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The law of large numbers is an abstract concept that helps us understand why market segmentation works.
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Marketers recognize that people living in one part of the country may have tastes that are different than people in other parts of the country. For example, when traveling in the southern United States, Iced tea is served with the sweetener already in it while in the Northern states, iced tea is served unsweetened. These differences are the reason that __________ segmentation can be useful for many products.
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Geographic.
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When retrieving memories, most people access the exemplar and up to two additional memories in the category
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False
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The three circles positioning framework presented in class suggests using all of the following EXCEPT ___________ to help clarify a market position?
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Related industries
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Wilma is developing a website where people can buy or sell gently used baby clothes. Wilma will certainly include include ___________ as a segmentation variable.
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Family life cycle
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Traditionally, which of the bases for segmentation is most frequently used by marketers?
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Demographic
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Stereotyping is a useful tool to use when creating segments based on ethnicity.
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False
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Chun has developed a line of insect repellent with no bad chemicals in it. She used psychographic segmentation to define her primary segment as environmental activists. Which of the following is the WORST way that Chun could communicate with this segment?
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Sponsor a fishing tournament where the first prize is a sport utility vehicle
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The 80/20 principle holds that...?
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20 percent of all customers generate 80 percent of the demand
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You don't have to have a product that appeals to everyone in order to have a successful business.
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True
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Shamiya is the marketing manager for a leading mattress manufacturer. She is in the process of developing a market segmentation scheme for her company. Because delivery costs are very high for mattresses, she is likely to consider ______________ along with other variables as she develops her plan?
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Geography
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Which of the following assumptions about using ethnicity as a segmentation variable is correct?
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Both race and culture play a role in consumption patterns.
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It is more important to evaluate positive information than it is to evaluate negative information when trying to understand how customers perceive your product.
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False
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Many small businesses choose to segment their customers geographically because they can effectively to communicate with their customers using __________?
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Local media
