MRKT test #3 – Flashcards

A(n) ______________ targeting strategy focuses on one specific marketing segment with one marketing mix? Select one: a. Undifferentiated b. Pretentious c. One-to-one d. Multisegment e. Concentrated Feedback

According to your instructor, which of the bases for segmentation is most frequently used by marketers? Select one: a. Psychographic. b. Statistical c. Buying situation d. Demographic e. Geographic.

What do we mean when we speak of the 80/20 rule? Select one: a. The first 20% of a firms customers buy 80% of its products. b. 80% of a store's revenue should be cost, 20% of a store's revenue should be profit. c. A small fraction of a firm's customers provide a large fraction of a firms sales d. Exactly 80% of a firms customers account for 20% of its sales. e. Exactly 80% of a firms sales come from 20% of its customers Feedback

The VALS system identifies eight consumer segments based on (1) ____________ and (2) _______________? Select one: a. Primary motivation, personality type b. Psychographic, buying patterns c. Psychographic, demographic d. Primary motivation, secondary motivation e. Primary motivation, resources Feedback

A(n) ______________ targeting strategy develops more than one distinct marketing mix? Select one: a. One-to-one b. Undifferentiated c. Multisegment d. Concentrated e. Pretentious

What is the difference between market potential and sales potential? Select one: a. Market potential relates to dollar sales, sales potential relates to unit sales. b. Market potential is the number of potential customers for your product, sales potential is the number of actual customers for your product. c. These are all differences between market potential and sales potential. d. Market potential is the upper limit of sales for the industry as a whole, sales potential is the upper limit of sales for your company. e. Market potential is an estimate based on research, sales potential is a fact based on internal sales data.

Alexis is the furniture division sales manager for a textile (cloth) manufacturing company. He has a team of 15 salespeople who call on 200 customers regularly over the course of the year. These customers account for 85% of Alexis companys sales and buy 80% of the textiles used for furniture in this country. Alexis is likely to use the __________ method to forecast demand? Select one: a. Test market b. Sales force survey c. Survey of buyer intentions d. Market Factor Analysis e. Chain ratio Feedback

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 in the local paper 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. Select one: a. Head to head b. Differentiation c. Different attributes d. More is better e. Follow the leader Feedback

Santa Claus is trying to forecast demand for coal this Christmas. For the past 300 years, the number of naughty children (who will get coal in their stockings) has increased by 3% each year. Santa is likely to use the ____________ method to forecast demand. Select one: a. Market Factor Analysis b. Chain ratio c. Trend analysis d. Sales force survey e. Lost elf method Feedback

In the three circles positioning framework presented in class, what area of the chart indicates how you are currently differentiated in the marketplace? Select one: a. Their points of difference b. Our points of difference c. Company's offerings d. Points of parity e. Customer needs

Why is it a good idea for a business to group its customers into market segments? Select one: a. Because it is not feasible to treat all customers as if they were the same. b. These are all excellent reasons why a business group its customers into market segments. c. To keep your business practices current with other businesses in a consumer-driven economy. d. To be able to respond more effectively to the wants of groups of potential buyers e. Because it can provide significant savings in marketing costs over the long run. Feedback

Adam had an idea for a new i-pod 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 __________? Select one: a. Continue to develop the product knowing that because there are millions of i-pod users, there will probably be a large enough group who like the product for it to be successful. b. Modify the product so that seven or more of his friends like it and nobody hates it before introducing it to the market. This way there will be a larger group of potential customers for the product. c. Discontinue the product because if a large percentage of people dislike the product they will talk others out of buying it. d. Continue with the idea, but add two additional accessories so that each of his friends will have something they like. It will be easier to introduce a large number of products than just one. e. Find new friends because if they are too stupid to appreciate his great idea, they dont deserve to have him as a friend.

Many small businesses choose to segment their customers geographically because they can effectively to communicate with their customers using __________? Select one: a. NAICS codes. b. Local newspapers c. Cultural differences. d. Trade publications e. Shelter magazines. Feedback

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? Select one: a. Geography b. Usage rates c. Psychographics d. Lifestyle. e. Cultural differences

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? Select one: a. Create a new category by introducing a product that is different from anything else on the market. b. Charge higher prices because there are no competitors in this segment c. Reposition the industry around vitamin enhanced milk beverages. d. Save on advertising costs because there are no competitors in her segment. e. She can do all of these things.

According to your instructor, why is it that many businesses may be unaware of how they are actually perceived in the market place. Select one: a. Because dissatisfied customers usually keep their feelings to themselves. b. Because much of the information executives get is from people who are paid by the company. c. Because market positions change rapidly and information is frequently out of date. d. Because sales information does not reflect peoples opinions about a company. e. Because customers may not be aware of their true feelings about a company or product.

Which of the following is NOT recommended by your instructor as good source of information to use in understanding your current market position? Select one: a. Self knowledge b. Complaints from unhappy customers. c. The results of market research studies. d. A SWOT analysis. e. Critical articles published in newspapers.

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? Select one: a. Make people believe that the market leader is selling an unhealthy drink b. Reduce her production costs c. Reposition her product against itself d. She is trying to do all of these things. e. Reposition her product against the competition Feedback

According to Ries and Trout, consumers organize products into categories in their minds. The goal of positioning is to? Select one: a. Convince consumers that other products in the category are not as good as yours. b. Cross-index the categories so consumers are reminded of your product when thinking of something else. c. Enter your product into as many categories as possible to increase the chance it comes up with a category. d. Find the strongest category in a consumers mind and make sure your product has a position somewhere in that category. e. Make it so that your product is the first thing that comes to mind when a category is mentioned.

Which of the following is NOT something you should consider when developing market segments? Select one: a. Similarity of needs of people within the segment b. The responsiveness of a segment to marketing efforts c. The ease of communicating with the segment d. Whether you have used too few variables to develop your segments. e. The difficulty of implementing the segmentation scheme.

Age cohorts are an effective basis for market segmentation because Select one: a. Baby boomers were born after World War II b. People in the same age group have many similar experiences which could affect their consumption patterns c. It is easy to determine a person's age d. Children have more disposable income now then they did after World war II e. Age is a better indicator of consumption patterns than is gender.

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? Select one: a. Local newspapers. b. Point of purchase displays c. Trade publications d. Cable television e. Regional differences Feedback

Which of the following assumptions about using ethnicity as a segmentation variable is correct? Select one: a. Stereotyping is a useful tool to use in making assumptions about consumption patterns of ethnic groups. b. Both race and culture play a role in consumption patterns. c. It is easy to create products that meet the needs of different ethnic groups d. Ethnic segmentation is not economically viable. e. People within an ethnic group are generally similar to each other.

What is a major disadvantage of the market factor analysis method of forecasting? Select one: a. In order to use it, there has to be a known market factor that correlates with your product's sales. b. You can only use it to generate short-term (1 year or less) forecasts. c. It is a very difficult method to use effectively. d. It only works in industrial markets. e. The factors associated with a market change each season.

The three circles positioning framework presented in class suggests using all of the following EXCEPT ___________ to help clarify a market position? Select one: a. Customer needs b. Competitor offerings c. Company's offerings d. Related industries e. Points of difference Feedback

Santa Claus is trying to estimate demand for toys this Christmas. He know there will be 3.7 billion children because he monitors birth trends across the world. He knows from experience that 14% will be naughty this year and get coal rather than presents for Christmas. He recently commissioned a research study from Donner + Blitzen associates who found that children stop believing in Santa Clause when they are 5.8 years old. Santa is likely to use the ____________ method to forecast demand for toys? Select one: a. Survey of buyer intentions b. Chain ratio c. Market Factor Analysis d. Sales force survey e. Test market

According to Michael Porter, there are two fundamental marketing strategies: being the low cost producer or to differentiate your product form the competition. Why is this important to understand in a discussion of market segmentation? Select one: a. Because there is only room for one low-cost producer in an industry, everyone else will need to segment their markets in order to keep their costs competitive with the low cost producer. b. Because if you can't be the low cost producer or differentiate your product, you will have to target the segment that responds best to a selling approach to marketing. c. Because there is only room for one low-cost producer and one differentiated product in an industry, businesses need to use segmentation to determine which strategy will be best for their product. d. Because there is only room for one low-cost producer in an industry, everybody else will need to use a differentiation strategy. Market segmentation is a tool you can use to help differentiate your product. e. Because both strategies require appropriate market segmentation inorder to be successful.

A(n) ______________ targeting strategy uses a mass market approach to reach as many people as possible with the same marketing mix. Select one: a. Concentrated b. Multisegment c. Undifferentiated d. Pretentious e. One-to-one

Which of the following is a condition that must be met before you can consider a group of people to be a market segment? Select one: a. They must be geographically close to each other. b. There must be a way to communicate with them. c. They must be the same as each other. d. They must be wealthy. e. They must appreciate your product for different reasons. Feedback

What is the point you instructor was trying to make when discussing the law of "truly large" numbers Select one: a. 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. b. That it is easier to become wealthy by making a small amount of profit on a large number of transactions than by making a large amount of money on a small number of transactions. c. No matter how large the group, people are individuals. d. That no two people are exactly alike. e. That in order to be successful, your product needs to appeal to everybody.

In the three circles positioning framework presented in class, which area represents the area for creating an attractive new position in the marketplace? Select one: a. White space (opportunity) b. Customers' needs c. Our points of difference d. Their points of difference e. Points of parity

The best understanding of market dynamics comes when market size is expressed in? Select one: a. Units b. Both dollars and units c. Sales per square foot. d. Percentage change from year ago. e. Dollars Feedback

According to your instructor, what is the easiest way to become the category leader for a product category? Select one: a. Develop a brand new product that is different from anything else on the market. b. Make your packaging look the same as the category leader to gain spillover benefits from the category leaders advertising. c. Spend more on advertising than the category leader. d. Identify the weakest attributes of the category leader and design a product that is better than the category leader e. Start at the back of the category and develop a plan to surpass each product in the category until you are the leader.

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? Select one: a. Make people believe that the market leader is selling an unhealthy drink b. Reduce her production costs c. Reposition her product against the competition d. She is trying to do all of these things. e. Reposition her product against itself Feedback

What was your instructor talking about when he said America likes a Winner and gave those ridiculous - I mean interesting - examples about people landing on the moon? Select one: a. When it comes to positioning, it is only categories of historical significance that get remembered. b. When it comes to positioning, it is better to hold the position of category leader in a smaller category than to be second place on a larger category. c. When it comes to positioning, the category is more important than the products it contains. d. When it comes to positioning it is better to be in a small, memorable category than in a large category. e. When it comes to positioning, people always root for the underdog.

What is the relationship between the law of truly large numbers and market segmentation? Select one: a. The law of large numbers is an abstract concept that helps us understand why market segmentation works. b. The law of large numbers deals with people while market segments deals with products. c. There has to be a large number before you can have a market segment. d. The law of large numbers is the same thing as market segmentation. e. The law of large numbers determines how many market segments will be possible.

One way to segment markets for business customers is by industry type. This approach is attractive because of __________ which makes it cost effective to measure the number of potential customers in an industry? Select one: a. Local newspapers. b. NAICS codes c. Zip codes d. Salespeople e. Cable television

Which of the following is a condition that must be met before you can consider a group of people to be a market segment? Select one: a. They must be different from each other in every way that is not related to your product. b. They must be able to communicate with each other. c. They must be similar to each other in age. d. They must be similar to each other, at least with respect to your product. e. They must like each other. Feedback

Have you ever noticed that when you fill out a warranty card after making a purchase, the manufacturer frequently asks questions such as how old you are, what your ethnicity is and how much money you earn. These questions suggest that the manufacturer is using __________ to segment the market. Select one: a. Demographics b. Buying situation c. Satisfaction d. Psychographics e. Geography

Julio is the sales manager for Champion Spark Plugs. Julio knows that there will be a need for 4.6 sparkplugs (on average) for every new car built this year and a need for 0.7 replacement sparkplugs for every car built in the last seven years. Julio is likely to use the ___________ method for forecasting demand? Select one: a. Lost horse b. Sales force survey c. Chain ratio d. Survey of buyer intentions e. Market Factor Analysis

According to the instructor, which of the following sources of information is frequently ignored when determining a company's actual market position? Select one: a. The judgment of top executives. b. Information provided by the company's advertising agency. c. Information provided by retailers who sell your product. d. Information about how the product is selling. e. Complaints from dissatisfied customers.

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? Select one: a. Brand family b. Market position c. Point of purchase display d. Perceptual map e. Mental picture

Which of the following is a condition that must be met before you can consider a group of people to be a market segment? Select one: a. There must be a large number of people in the segment. b. They must be different from people who are not in the segment in some meaningful way. c. They must be the same as each other. d. They must have a similar VALS profile. e. They must be able to communicate with each other.

A(n) _____________ is a relatively homogeneous group of prospective buyers who are similar to each other in terms of their consumption behavior. Select one: a. Motivation b. Culture c. Market segment d. Attitude e. Focus group Feedback

A(n) ______________ targeting strategy utilizes customer information to develop long-term relationships with each customer. Select one: a. Pretentious b. Multisegment c. Undifferentiated d. One-to-one e. Concentrated

Which of the following is a major disadvantage of the test-market approach to forecasting. Select one: a. It only works in markets where demand is relatively stable. b. Tests markets for new products tend to have relatively short-term (1 year or less) forecasts. c. The time it takes to conduct the test market may put you at a competitive disadvantage in the marketplace. d. Test markets can only provide short-term (1 year or less) market forecasts.. e. Test markets only work in markets where demand fluctuates wildly (high volatility).

A ________________ is the estimated sales of a product for a defined future period? Select one: a. Pro-forma production request b. SWOT analysis c. Prediction d. Forecast e. Market share report

Why does your instructor recommend the chain ratio method of sales forecasting? Select one: a. Because it is the easiest method of forecasting. b. Because it is the best approach for very long-term (3 years or more) forecasts. c. Because he is insane and that is just the kind of recommendation you would expect from an insane person. d. Because it integrates sales forecasting into the strategic management process. e. Because is uses math to quantify subjective issues.

Bruce recently went to the eye doctor because he couldn't see clearly enough to do the crossword puzzle in the newspaper. 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. Select one: a. Buying situation b. Psychographic. c. Demographic d. Statistical e. Geographic.

Which of the following explains the law of truly large numbers as discussed in class? Select one: a. Given a large enough group of people, we can predict what a subset will do with respect to your product. b. It is easier to predict what an individual will do than it is to predict what a large number of people will do. c. When dealing with mass markets, you need at least 1,000,000 consumers. d. It is easier to learn marketing concepts in a class with a large group of people in it than it is to learn marketing concepts alone on your computer. e. because each individual is unique, you need to have a large number of product offerings in order to have something of value for everyone.

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? Select one: a. Psychographic. b. Business versus consumer c. Buying situation d. Demographic e. Geographic.

The point of discussing the different bases for segmenting markets was? Select one: a. Most businesses find it useful to use one or two segmentation variables at the most in order to keep their segmentation schemes simple. b. You can use any combination of segmentation variables to develop market segments that work for your organization. c. You should start with demographic segmentation and then use other segmentation variables to refine your segments. d. Demographic segments are more useful than segments developed with other variables. e. You should start with demographic segmentation and move on to more advanced techniques only if necessary.

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. Select one: a. More is better b. Follow the leader c. Different attributes d. Head to head e. Differentiation

Which of the following statements about forecasting is true? Select one: a. In order to develop an actionable forecast, you have to use three or more different methods. b. All forecasts are guesses. c. The past sales method is more accurate in volatile (high uncertainty) markets. d. When the stakes are low (not much at risk if you make a bad decision) you should make a greater effort in your sales forecast. e. Long-term forecasts are more accurate than short-term forecasts.

Which of the following is NOT a requirement of a market segment? Select one: a. Similar to each other with respect to your product b. Different from everybody else with respect to your product c. Economically viable d. Reachable e. Environmentally responsible

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? Select one: a. Sponsor a fishing tournament where the first prize is a sport utility vehicle b. Sponsor a television program on the earth-friendly cable network. c. Sponsor a tree planting event in the Everglades Swamp in Florida. d. Advertise in the Sierra club magazine, a magazine sent to all members of the environmentally conscious sierra club. e. Create a website for her insect repellent and exchange links with environmental websites.

According to your instructor, how many segments should a company target? Select one: a. The number that allows you to maximize profits with the resources available to you. b. You can only 'target' one segment. The rest are secondary markets. c. You should target one market segment for each product the company offers. d. As many segments as you can afford to target. e. You should determine what is the normal number of segments targeted by companies sharing the same NAICS code with you and use that at a guideline for how many segments to target.

Psychographics, the practice of combining psychology, lifestyle and demographic information to segments markets can provide useful insight about consumer motivations and buying patterns. One of the weaknesses of using this approach for market segmentation is that it is difficult to ___________ psychographic segments. Select one: a. Measure b. Spell c. Find useful differences between d. Reach e. Define

The 80/20 principle holds that...? Select one: a. You can fool 80 percent of the people some of the time and you can fool 20 percent of the people all of the time. b. 20 percent of all customers generate 80 percent of the demand c. 20 percent of youreffort should be in developing segments and 80 percent of yoru effort should be in developing target markets. d. 80 pecent of your effort should be in determining the segments and 20 percent of your effort should be in developing the target markets. e. You will have four times as many losing segments as you will have winning segments

Roxanne has developed a new adult milk beverage that is enhanced with vitamins. There has never been a product like this before and she is wondering how many cases she should manufacture in the first year of production. Roxanne is likely to use the ____________ method to forecast demand. Select one: a. Test market b. Market Factor Analysis c. Survey of buyer intentions d. Sales force survey e. Chain ratio

Which of the following is NOT a way perceptual maps can help you with your positioning strategy? Select one: a. Determine how crowded a market position might be. b. Identify changes that can be made to product attributes to improve your competitive position c. Determine which of two alternative products your customers will prefer. d. Identify areas where there unmet needs e. Understand where your products are positioned relative to competitive produtcts.

According to your instructor, what is a major disadvantage of the trend analysis method to forecasting? Select one: a. It can only provide long-term (more than one year) forecasts. b. It can only be used for new products. c. Relying on statistical analysis means you risk ignoring foreseeable environmental factors. d. It is very easy to use. e. It is most effective at the early stages of a new product introduction.