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Marketing Chapter 7 Test Essay

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Market segmentation
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the process of dividing a large group of consumers into subgroups based on specific characteristics and common needs.
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Market Oppurtunity
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identified market with excellent potential based on careful research.
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Market potential
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total revenue that can be obtained from a market segment.
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Market Share
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the portion of the total market that each company expects in relation to its competition.
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Demographics
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Age, income, education, and gender are examples of
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Benefit
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________ segmentation is based on the value customers expect to receive from using a product or service.
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True
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All market segments present a market opportunity.
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False
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A market segment must be defined by its demographic characteristics.
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Market position
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refers to the unique image of a product or service in a consumers mind relative to similar competitive offerings.
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Consumer perceptions
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images consumers have of competing goods and services in the marketplace.
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Pricing
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Which of the following is not one of the areas that typically affect the selection of a positioning strategy?
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True
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In order to compete effectively with other businesses, marketers must create a unique image of their products or service in the consumer’s mind.
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False
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Marketers do not need to know how consumers are using their products, as long as they are using them .
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False
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An example of attribute positioning would be a store emphasizing a convenient location or ample parking in its ads.
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Direct competition
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competition in a market with business that offer the same type of product or service.
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Indirect competition
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occurs when a business competes with other companies offering products that are not in the same product category but that satisfy simple customer needs.
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Price competition
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The newspaper ads featuring weekly specials at supermarkets are examples of
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False
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A negative effect of competition is that consumers usually end up paying higher prices for products and services.
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reduce the variety of product choices.
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Which of the following is not a typical business response to competition ?
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True
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An example of indirect competition would be competition between a bowling alley and a video arcade.
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Market intelligence
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process of gaining competitive market informance
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Trade shows
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exhibitions where companies associated with an industry gather to showcase their products.
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False
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Because businesses using the marketing concept thoroughly understand the needs of a target market, they have little need to gather information about competitors.
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Promotion
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Which of the following mix elements can a business change to react to changes by a competitor?
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True
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An example of a change in competitive position is the entry of a new competitor into the market.