MKTG EXAM 3 CH. 9

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Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the firm has ever used. She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to
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identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis
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Segmentation, targeting, and positioning
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are part of a firm’s marketing strategy
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Alex has found that both commercial and residential real estate buyers respond positively to his marketing communication message. Alex has identified __________ that respond similarly to his marketing efforts
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market segments
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For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting its marketing mix variables in order to give customers
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a clear, distinctive, and desirable understanding of their products relative to competing products
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The first step in the STP process is to
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clearly articulate the firm’s vision or marketing strategy objectives
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For products like clothes pins, which provide the same benefit for all consumers, marketers should probably use a(n) ________ strategy
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undifferentiated targeting
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In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into “Butterball” turkeys. In doing so, the company
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differentiated its product
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Adidas Group owns Reebok, Rockport, and TaylorMade brands. Adidas uses the different brands to pursue a(n) __________ strategy
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differentiated targeting
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Adidas Group owns Reebok and Rockport—both of which offer different types of shoes. Having a variety of brands allows adidas to use a differentiated targeting strategy to
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obtain a bigger share of the shoe market
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One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify its business and
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lower overall risk
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A differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market; this strategy
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is likely more costly than an undifferentiated strategy.
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Firms use a differentiated targeting strategy because
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it helps obtain a bigger share of the market
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When Penguin Catering Services first opened, the owner decided to target only events at resorts in its geographic region. Penguin Catering was using a(n) __________ targeting strategy
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concentrated
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__________ is an extreme form of a targeting strategy
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Micromarketing
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“Corporate pilot fish” are former employees who start a new business based primarily on contacts and contracts with their old company. A corporate pilot fish would probably pursue a(n) __________ targeting strategy
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micromarketing
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Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order shoes with custom color combinations. This is a form of
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micromarketing
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Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies
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concentrated
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When Mr. How, a Pennsylvania-based discount lumber and hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in
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misguided geographic segmentation
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Differences in weather and climate create opportunities for
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geographic segmentation
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The National Hockey League redirected its marketing efforts when a survey indicated that almost 50 percent of hockey fans were female. This is an example of __________ segmentation
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demographic
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__________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach
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demographic
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Beer marketers know that high school educated, working-class males from the ages of 25 to 40 make an attractive market for their products. This is a __________ segment of the beer market
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demographic
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Television advertising has recently expanded to include “mini-ads,” which are short ads lasting 5 to 10 seconds. These ads are most useful in advertising to men, since men are more likely than women to channel surf during commercial breaks. Given this fact, this type of advertising will be more useful to marketers engaged in __________ segmentation
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demographic
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Demographic segmentation is segmentation based on all of the following except
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lifestyle
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Psychographics is the segmentation method that delves into how consumers
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describe themselves
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To develop psychographic segments, the marketer must understand consumers’
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self-values, self-concept and lifestyles
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Paul is considering psychographics as a way to segment the market for his small travel agency. This approach to segmentation offers him an advantage because
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it is based on underlying reasons why people make choices
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Education marketers know that the primary motivations of most nontraditional college students are self-respect and self-fulfillment, so they craft their marketing message to emphasize the benefits these consumers are looking for in a college education. What type of segmentation method was used to segment this market?
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psychographics
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Baby Boomers represent a huge demographic segment for travel marketers. Baby Boomers are also heavily motivated by self-fulfillment, which creates the possibility of __________ segmentation
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psychographics
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Beverage companies often use television commercials with images of young people laughing and enjoying themselves on a beach or in a club. These images are designed to appeal to consumers’ __________, suggesting “be like me.”
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self-concepts
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If values provide an end goal, and self-concept is the way one sees oneself in the context of that goal, lifestyles are
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how we live our lives to achieve our goals.
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VALS is the most widely used __________ segmentation tool.
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psychographic
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Marketers have found that __________ segmentation is often more useful for predicting consumer behavior than __________ segmentation
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psychographic; demographic
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Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation
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is a more expensive method for identifying potential customers
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__________ segmentation is the segmentation method most directly related to value creation for consumers
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Benefit
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A university using benefit segmentation and targeting students who want to get a degree quickly while still working full-time would most likely focus on
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providing classes at convenient times and offering online courses
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The light beer commercial with the slogan “less filling, tastes great” was based on __________ segmentation
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benefit
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Toothpastes sold in supermarkets and pharmacies promise various results, such as whiter teeth, protection against gum disease, tartar control, or fresh breath. Toothpaste marketers are using __________ segmentation
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benefit
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Golden Years Vitamin Corporation targets consumers living in Florida who are over age 65. Golden Years is using __________ segmentation
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geodemographic
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The phrase “birds of a feather flock together” captures the idea of __________ segmentation.
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geodemographic
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PRIZM and Tapestry divide and sort small geographic areas into categories using 60 or more demographic and lifestyle characteristics. These market research tools are examples of __________ segmentation
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geodemographic
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Gloria is opening an upscale women’s clothing store in a growing suburban residential area. Gloria knows her target market is upper-income women living within 20 miles of her store. She can’t afford to purchase a PRIZM or Tapestry analysis, so she will most likely use __________ as a basis for targeting her market
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real estate values by subdivision
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Geodemographic segmentation can be particularly useful for __________, because customers typically patronize stores close to their neighborhood
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retailers
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Retail store chains often use __________ data to tailor each store’s assortment to the preferences of the local community
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geodemographic
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Marketers often create a special marketing mix for loyalty segments because these segments are
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generally profitable
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When Ron complained to his bank about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests. The branch management included Ron in its __________ segmentation
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loyalty
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Airlines were among the first retailers to embrace loyalty segmentation when they created
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frequent-flyer programs
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One of the reasons marketers use loyalty segmentation is
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the high cost of finding new customers.
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the high cost of finding new customers.
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what their customers need
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Kim’s Kayak Tours initially identified active retirees living in the retirement community nearby as one of its target markets. Kim then tailored her service and marketing message to the interests and schedules of that audience. Kim initially used __________ segmentation and then used __________ segmentation
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geodemographic; lifestyle
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Marketers often employ a combination of segmentation methods, using __________ to identify and target their customers, and __________ to design products and messages to appeal to them.
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demographics and geography; lifestyle or benefit segmentation
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Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to
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evaluate the attractiveness of each segment
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Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate whether or not each segment is attractive relative to all of the following except
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realistic
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Carlos has identified four potential market segments for his Rent-A-Nurse service. He will now compare the segments to see if they are distinct from each other. Carlos is evaluating whether or not each segment is
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identifiable
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Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power. Greta is concerned with whether the segment is
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substantial
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Ryan wants to sell personal website services to American soldiers in Afghanistan. Because of the difficulty of communicating with people in a war zone, Ryan may have trouble with this segment not being
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reachable
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With access to the Internet nearly universal in the United States, many potential market segments have become more
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reachable
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Talbots, an upscale women’s clothing store, targets college-educated women between 35 and 55 years old with average household income of $75,000 or more. This is a form of __________ segmentation
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geodemographic
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When Talbots, an upscale women’s clothing store, tries to portray an image of “traditional, conservative, and with good taste,” it is appealing to its target market’s
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lifestyle
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College students can be a less __________ market segment because students’ media habits are quite diverse and firms might have to use a wide variety of media to attract this segment
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reachable
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For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm’s marketing mix. In other words, the market segment must be
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responsive
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When Starbucks first opened, many critics suggested, “No one will pay $4 for a cup of coffee.” Starbucks’s critics suggested consumers would not be __________ to the company’s offerings
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responsive
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The manager of Plantation River Country Club wanted members of the very upscale club to use the bar and dining facilities more frequently. He offered a two-for-one “happy hour” special but few members showed up. The manager did not have a grasp of what would make his target market
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responsive
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Caroline is assessing market growth, market competitiveness, and market access for each segment she has identified. Caroline is assessing the __________ of each potential market segment
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profitability
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After assessing the market growth potential for his company’s baby products in Mexico, Harmon wanted to evaluate market competitiveness. To do this, Harmon would consider
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the number of competitors, entry barriers, and product substitutes
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After assessing the market growth potential and market competitiveness for his company’s baby products in Mexico, Harmon wanted to evaluate market access. To do this, Harmon would consider
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ease of accessing or developing distribution channels and brand familiarity.
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Which of the following would not be used in calculating the profitability of a segment?
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segment perceptions
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Fiona is looking to expand her pet grooming business and wants to evaluate the profitability of a potential new market. The area she is looking at has 2,000 homes and Fiona estimates that 20 percent of them would be likely to use her service. She charges $45 per grooming and on average customers groom their pets six times a year. Fiona estimates her variable costs to expand her business will be $10 per grooming and her fixed costs are $10,000. How much profit would Fiona make on this new segment?
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$72,240
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Paula is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will not specifically help her in this analysis?
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the average number of school-age children in families sending a child to the day care center
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Ronaldo wants to develop an Internet auction-based business and is working through the STP process. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Ronaldo now has to
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select a target market.
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When selecting a target market, firms will be most successful if they
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match the firm’s competencies with a market segment’s attractiveness
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__________ involves defining the firm’s marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of the firm’s offerings relative to competitors’ offerings
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Positioning
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Whenever Donald calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local business person and has been in business over 20 years. Donald is __________ his business relative to his competition
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positioning
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Regina wants to position her financial services company. Regina can position her services according to all of the following except
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profitability
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Whenever the president of the local public university promotes the institution, he emphasizes the university’s price (much lower than neighboring private colleges) and high quality. He is positioning the institution based primarily on
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the value proposition.
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We often see advertisements touting a product as being made with natural ingredients, or being long-lasting. Marketers using these types of promotions are positioning their products based primarily on
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product attributes
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Marco was assigned to help create a positioning strategy for his employer’s products based on product attributes. He should consider
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what the target market would consider the most important features
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Almost all U.S. political candidates use some combination of red, white, and blue in their campaign posters. They are trying to position themselves in voters’ minds using
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symbols
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Jim wants to position his firm against his competitors. In doing so he should
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avoid looking too much like the competitor so that he’d confuse the target segment
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A __________ is often used to illustrate the position of a firm’s products or brands in consumers’ minds.
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perceptual map
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Within a perceptual map, a(n) __________ represents where a particular market segment’s desired product would lie
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ideal point
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“Why create a perceptual map?” asked David. Andreas, the senior marketing manager, gave him four reasons. Which of the following is not a valid reason?
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“It’s a way to show the position of the company throughout the product’s life cycle.”
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The perceptions of __________ are being measured in a perceptual map
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consumers
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Which of the following segmentation methods is being used when M&M’s offers special wedding-themed packaging for customized M&M’s (imprinted with the names of the bride and groom)?
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occasion segmentation
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Godiva Chocolates produces specially decorated boxes of candies for Valentine’s Day, Easter, and Christmas. This is an example of ________ segmentation
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occasion
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Which of the following defines a value proposition?
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the unique value that a product or service provides to customers
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Overriding desires that drive how we live our lives are called
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self-values
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When Victoria’s Secret offers different product lines, such as its Pink line, it is trying to capture the market by
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using segmentation, targeting and positioning
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When evaluating the attractiveness of the segment, if a segment is expected to react positively to the firm’s offering, we say that the segment is
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responsive
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What is the best situation in the Circles for a Successful Value Proposition framework?
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The firm’s offering overlaps with customer needs/wants but not with competitors’ offerings.
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In the Circles for a Successful Value Proposition framework, the value proposition is represented by
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the intersection between customer needs/wants and the firm’s product’s benefits
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In the Circles for a Successful Value Proposition framework, the portion of the customer needs/wants circle that doesn’t overlap with anything else represents
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unmet customer needs/wants
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Which of these is not one of the main components of a value proposition?
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the price of the product or service being offered
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Let’s Dish is a meal-preparation service operating in three states. Customers visit a Let’s Dish store to select and partially prepare their meals, which are then packaged for the freezer. At home, the customer can pull a meal out of the freezer and warm it in the oven or microwave. If Let’s Dish wanted to expand into new areas of the United States, what segmentation method would probably be most useful in choosing new locations?
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geodemographic segmentation
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Social networking sites that compete directly with Facebook have a difficult time surviving; however, LinkedIn has survived by focusing on the needs of business professionals, who seek to network with colleagues, share their expertise, post online résumés, and look for new jobs. What segmentation method is LinkedIn using?
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benefit segmentation

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