Question 1

In the context of product positioning, the distinctions between products can be either real or perceived.

Accepted Answer

True

Question 2

A market is people or organizations with needs or wants and with the ability and the willingness to buy.

Accepted Answer

True

Question 3

A concentrated strategy presents more risk for a firm than a multi-segmentation strategy does if there are unfavorable changes in the environment.

Accepted Answer

True

Question 4

A market segment is a subgroup of people or organizations having different characteristics that cause them to have distinct product needs.

Accepted Answer

False

Question 5

Market segmentation helps decision makers to more accurately define the target market, and therefore better allocate resources to the variables in their marketing mix.

Accepted Answer

True

Question 6

According to family life cycle segmentation, consumption patterns among people of the same age and gender differ because they are in different stages of the family life cycle.

Accepted Answer

True

Question 7

In the context of age segmentation, baby boomers expect everything to be instantaneous because they have never been introduced to a world without the Internet.

Accepted Answer

False

Question 8

Tennot Inc. sells used cars. It focuses solely on low-income customers who prefer to buy an old car rather than a new one. Therefore, it develops one marketing mix that targets the low-income group. In this scenario, Tennot Inc. most likely uses a(n)_____.

Accepted Answer

concentrated targeting strategy

Question 9

Which of the following statements is true of markets?

Accepted Answer

They are composed of people or organizations.

Question 10

_____ is a common base of demographic segmentation.

Accepted Answer

Income

Question 11

The editorial board of Gamers\' Page, a magazine that primarily caters to people who are enthusiastic about sports and gaming, targets people who enjoy games. In this scenario, Gamers\' Page uses _____.

Accepted Answer

psychographic segmentation

Question 12

Mass-marketing efforts will continue to be used by marketers:

Accepted Answer

to remind consumers of a product.

Question 13

Which of the following is a psychographic segmentation variable?

Accepted Answer

Achievers who are motivated to show their successful lifestyle

Question 14

A concentrated targeting strategy differs from an undifferentiated targeting strategy in that a concentrated targeting strategy:

Accepted Answer

involves the selection of a market niche to target the marketing efforts of a firm.

Question 15

Bed Bath and Beyond\'s describes their market as largely female, which reflects the retailer\'s marketing mix. Which segmentation base has Bed Bath and Beyond used to segment the market for household goods?

Accepted Answer

demographics

Question 16

Which of the following statements is true of market segmentation?

Accepted Answer

It helps marketers design marketing mixes that match the characteristics of the target market.

Question 17

_____ is a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers\' minds.

Accepted Answer

Perceptual mapping

Question 18

Which of the following is an advantage of a multisegment targeting strategy?

Accepted Answer

It provides opportunities for larger markets/more customers, which in turn can allow economies of scale in manufacturing and marketing.

Question 19

Sephora, a cosmetics brand that primarily caters to women, wants to reach out to the less-traditional male market. The company has launched new products especially for men. In this context, Sephora uses _____.

Accepted Answer

gender segmentation

Question 20

In the context of family life cycle segmentation, which of the following statements is true?

Accepted Answer

Middle-aged married couples with or without children have high average purchase of durable goods.

Question 21

Which of the following statements is true of a concentrated targeting strategy?

Accepted Answer

It allows smaller firms to compete effectively with much larger firms.

Question 22

_____ is market segmentation on the basis of attitudes, motives, lifestyles, and geodemographics.

Accepted Answer

Psychographic segmentation

Question 23

A firm using a(n) _____ essentially adopts a mass-market philosophy, viewing the market as one big market with no individual segments.

Accepted Answer

undifferentiated targeting strategy

Question 24

A firm that adopts an undifferentiated targeting strategy assumes that:

Accepted Answer

small firms can compete effectively with large firms.

Question 25

_____ refers to segmenting markets by region of a country or the world, market size, market density, or climate.

Accepted Answer

Geographic segmentation

Question 26

_____ helps marketers develop marketing programs tailored to prospective buyers who live in small regions or who have very specific lifestyle.

Accepted Answer

Geodemographic segmentation

Question 27

The purpose of market segmentation is to:

Accepted Answer

enable a marketer to tailor marketing mixes to meet the needs of one or more specific segments.

Question 28

_____ involves dividing a market into groups such as newborns, infants, young children, tweens, Millennials, Generation X, baby boomers, and seniors.

Accepted Answer

Age segmentation

Question 29

In the context of the strategies for selecting target markets, which of the following is a disadvantage of an undifferentiated targeting strategy?

Accepted Answer

It often results in sterile, unimaginative product offerings that have little appeal to anyone.

Question 30

Which of the following statements is true of product positioning?

Accepted Answer

Consumer goods marketers are particularly concerned with positioning .

Question 31

Laelle is a confectionery company that manufactures candies. It does not use specific strategies to target children while marketing its products. Instead, it uses the same strategies to promote its candies among all consumers in the market. In this scenario, Laelle uses a(n) _____.

Accepted Answer

undifferentiated targeting strategy

Question 32

Explain product differentiation as a positioning strategy used by marketers to distinguish their products from competitors.

Accepted Answer

Answers will vary. A positioning strategy that many firms use to distinguish their products from competitors is based on product differentiation. The distinctions between products can be either real or perceived. For example, Kentucky Fried Chicken differentiates itself from other fast-food fried chicken restaurants with its secret blend of eleven herbs and spices (perceived), as well as unique offerings like the Double Down, Famous Bowl, and Bucket & Bites Meal (real). However, many everyday products, such as bleaches, aspirin, unleaded regular gasoline, and some soaps, are differentiated by such trivial means as brand names, packaging, color, smell, or \"secret\" additives. The marketer attempts to convince consumers that a particular brand is distinctive and that they should demand it.

Question 33

What is geographic segmentation? Briefly explain why consumer goods companies take a geographic approach to marketing.

Accepted Answer

Answers will vary. Geographic segmentation refers to segmenting markets by region of a country or the world, market size, market density, or climate. Market density means the number of people within a unit of land, such as a census tract. Climate is commonly used for geographic segmentation because of its dramatic impact on residents\' needs and purchasing behavior.Consumer goods companies take a regional approach to marketing because firms continually need to find ways to grow. Target\'s growth strategy includes opening smaller stores in urban locations such as San Francisco, Chicago, and Washington, DC. These stores are designed to provide quick-trip shopping, customized product assortments, and services tailored to customers living in large cities.

Question 34

Discuss the importance of market segmentation.

Accepted Answer

Answers will vary. Market segmentation is the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups. It plays a key role in the marketing strategy of almost all successful organizations and is a powerful marketing tool for several reasons. Most important, nearly all markets include groups of people or organizations with different product needs and preferences. Market segmentation helps marketers define customer needs and wants more precisely. Because market segments differ in size and potential, segmentation helps decision makers to more accurately define marketing objectives and better allocate resources. In turn, performance can be better evaluated when objectives are more precise.

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