Chap 06 test bank

12) Household Storez, a local retail store, claims to offer better products at lower prices than other retail stores. In this case, the firm's positioning reflects a ________ value proposition. A) more - for - the same B) more - for - less C) same - for - less D) same - for - more E) more - for - more 12) 13) ________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. A) Differentiation B) Market segmentation C) Market targeting D) Mass marketing E) Positioning 13) 14) Atlantic Coast, a wholesale lobster distributor, groups its customers by regions in Canada, such as Central, Atlantic, Pacific and Prairies. For each region, Atlantic Coast tailors a different set of advertisements and promotions. The supplier is segmenting its market according to ________. A) geographic location B) benefits sought C) demographics D) behavioural factors E) personality characteristics 14) 15) When segments are distinguishable and respond differently to different marketing mix elements, they are said to be ________. A) substantial B) accessible C) differentiable D) measurable E) actionable 15) 16) Which of the following strategies is most likely to be followed by firms that position themselves as caterers of the best products at economical prices? A) more - for - more B) less - for - much - less C) more - for - less D) more - for - the - same E) same - for - less 16) 17) The marketing manager of Refresh Inc., a leading producer of soft drinks, is considering a differentiated marketing strategy. An important consideration is weighing increased sales against ________ before selecting this strategy. A) decreased prices B) decreased production C) increased costs D) increased demand E) increased profits 17) 3 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

30) A market segment is less attractive when ________. A) substitute products are unavailable in the segment B) there are few aggressive competitors in the segment C) it contains powerful suppliers who can control prices D) buyers in the market segment have weak bargaining powers E) it is difficult for new entrants to enter the segment 30) 31) When firms use symbols, colours, or characters to convey their personalities, they are using ________ differentiation. A) usage - rate B) people C) user - status D) image E) channel 31) 32) Delta, a Canadian video game manufacturer, targets teens between the ages of 13 and 18, providing free game trials and applications. The firm's marketing approach exemplifies ________ segmentation. A) occasion B) age and life - cycle C) geographic D) income E) gender 32) 33) ________ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviour. A) Market targeting B) Differentiation C) Positioning D) Market segmentation E) Mass marketing 33) 34) When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________. A) differentiable B) actionable C) accessible D) measurable E) reachable 34) 35) Which type of market segmentation is generally used by marketers who sell luxury products targeted to the affluent segments of a population? A) income B) benefits sought C) gender D) occasion E) usage rate 35) 6 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

48) When the size, purchasing power, and profiles of a market segment can be determined, the market segment is said to be ________. A) accessible B) measurable C) substantial D) observable E) actionable 48) 49) A successful niche marketing strategy relies on a firm's ________. A) superior products B) availability of services C) knowledge of customer needs D) product positioning E) affordable pricing 49) 50) Lilly's, a furniture retailer, sells low - end furniture and accent pieces that are targeted toward lower - income consumer groups. Lilly's most likely segments the consumer market based on ________ variables. A) demographic B) behavioural C) geographic D) psychographic E) universal 50) 51) Danko International is a multinational company that targets the BRICS countries (Brazil, Russia, India, China, and South Africa) because they're fast - growing developing economies and use ________ to segment its world markets. A) cultural factors B) economic factors C) personality factors D) legal factors E) political factors 51) 52) Market segments that can be effectively reached and served are said to be ________. A) substantial B) profitable C) measurable D) accessible E) actionable 52) 53) Argonaut Food Stores, a retail giant, hires better - skilled employees than its competitors by employing strategic recruitment practices. It also conducts highly specialized training programs for its employees. In this case, Argonaut has focused on gaining a strong competitive advantage through ________ differentiation. A) services B) image C) channel D) product E) people 53) 9 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

74) Companies today are moving away from target marketing and toward mass marketing. 74) 75) Creating market offerings that best serve targeted customers is called differentiation. 75) 76) Business marketers use variables such as customer operating characteristics, purchasing approaches, situational factors, and personal characteristics. 76) 77) Developing separate marketing plans for separate segments requires very little marketing research or channel management. 77) 78) Marketers typically limit their market segmentation analysis to a single variable in order to simplify the process. 78) 79) Business and consumer marketers use many of the same variables to segment their markets. 79) 80) Chosen symbols, characters, and other image elements are communicated through advertising that conveys the company's or brand's personality. 80) 81) Demographic factors are the most popular bases for segmenting customer groups. 81) 82) Companies must do much more than simply shout out their positions with slogans and taglines. They must differentiate their products in the minds of the consumers. 82) 83) Not all companies that use income segmentation target the affluent. 83) 84) In cross - market segmentation, marketers form segments of consumers who have similar needs and buying behaviours even though they are located in different countries. 84) 85) Even if a segment has the right size and growth and is structurally attractive, a company must consider its own objectives and resources before targeting that segment. 85) ESSAY. Write your answer in the space provided or on a separate sheet of paper. 86) Compare and contrast the four major strategies that are generally used to target market segments. Provide an example for each of the four major strategies. 87) Explain the four major steps in designing a customer - driven marketing strategy. 88) Describe a few ways in which a marketer can engage in socially responsible target marketing. 89) How do businesses segment their markets? 90) Briefly describe the characteristics of effective market segments. 91) Describe the process by which companies identify attractive market segments and choose a target marketing strategy. 12 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

Answer Key Testname: CHAP 06_7CE 50) A 51) B 52) D 53) E 54) C 55) E 56) E 57) B 58) D 59) A 60) E 61) FALSE 62) FALSE 63) FALSE 64) FALSE 65) TRUE 66) TRUE 67) TRUE 68) TRUE 69) TRUE 70) TRUE 71) FALSE 72) TRUE 73) FALSE 74) FALSE 75) TRUE 76) TRUE 77) FALSE 78) FALSE 79) TRUE 80) TRUE 81) TRUE 82) TRUE 83) TRUE 84) TRUE 85) TRUE 86) Market targeting can be carried out at several different levels. Companies can target very broadly (undifferentiated marketing), very narrowly (micromarketing), or somewhere in between (differentiated or concentrated marketing). An undifferentiated marketing strategy ignores market segment differences and targets the whole market with one offer. This mass - marketing strategy focuses on what is common in the needs of consumers rather than on what is different. In contrast, a differentiated strategy targets several market segments and designs separate offers for each. Companies hope for higher sales and a stronger position within each market segment. Concentrated or niche marketing goes after a large share of one or a few segments or niches instead of going after a large share of a large market. These niches may be overlooked or unimportant. Niching offers smaller companies an opportunity to compete by focusing their limited resources more effectively. Finally, using micromarketing, a company can tailor products and marketing programs to suit the tastes of specific individuals and locations. It includes local and individual marketing. 15 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

Answer Key Testname: CHAP 06_7CE 96) Occasions: Buyers can be grouped according to occasions when they get the idea to buy, actually make their purchase, or use the purchased item. Occasion segmentation can help firms build up product usage. For example, most consumers drink orange juice in the morning, but orange growers have promoted drinking orange juice as a cool, healthful refresher at other times of the day. Benefits sought: A powerful form of segmentation is grouping buyers according to the different benefits that they seek from a product. Benefit segmentation requires finding the major benefits people look for in a product class, the kinds of people who look for each benefit, and the major brands that deliver each benefit. For example, people buying bikes are looking for any of numerous benefits, from competitive racing and sports performance to recreation, fitness, touring, transportation, and just plain fun. To meet varying benefit preferences, Schwinn makes affordable, quality bikes in seven major benefit groups: cruisers, hybrid, bike path, mountain, road, urban, and kids. User status: Markets can be segmented into nonusers, ex - users, potential users, first - time users, and regular users of a product. Marketers want to reinforce and retain regular users, attract targeted nonusers, and reinvigorate relationships with ex - users. Included in the potential user group are consumers facing life - stage changes — such as new parents and newlyweds — who can be turned into heavy users. For example, to get new parents off to the right start, P&G makes certain its Pampers Swaddlers are the diaper provided for newborns at most hospitals in certain markets. 97) Marketers rarely limit their segmentation analysis to only one or a few variables. Instead, they use multiple segmentation bases in an effort to identify smaller, better - defined target groups of consumers. Such segmentation provides a powerful tool for marketers of all kinds. It can help companies identify and better understand key customer segments, reach them more efficiently, and tailor market offerings and messages to their specific needs. 98) Few companies have either the resources or the will to operate in all, or even most, of the countries that dot the globe. Different countries, even those that are close together, can vary greatly in their economic, cultural, technological, and political makeup. International firms need to group their world markets into segments with distinctive buying needs and behaviours. 99) Consumer needs and wants change with age. Some companies use age and life - cycle segmentation, offering different products or using different marketing approaches for different age and life - cycle groups. For example, Kraft's Oscar Mayer brand markets Lunchables, convenient prepackaged lunches for children. To extend the substantial success of Lunchables, however, Oscar Mayer later introduced Lunchables Uploaded, a version designed to meet the tastes and sensibilities of teenagers. Most recently, the brand launched an adult version, but with the more adult - friendly name P3 (Portable Protein Pack). Other companies focus on the specific age of life - stage groups. For example, whereas most tablet makers have been busy marketing their devices to grown - ups, Amazon has spotted a tinier tablet market. Feedback from parents suggested that they were handing their entertainment - packed Kindle Fire tablet over to their young children for entertainment, education, and babysitting purposes. To tap this young - family market, Amazon introduced FreeTime Unlimited, a multimedia subscription service targeted toward 3 - to 8 - year - olds. Marketers must be careful to guard against stereotypes when using age and life - cycle segmentation. For example, although consumers in all age segments love Disney cruises, most Disney Cruise Lines destinations and shipboard activities are designed with parents and their children in mind. Marketers must be careful to guard against stereotypes when using age and life - cycle segmentation. Although some 80 - year - olds fit the doddering stereotypes, others ski and play tennis. Similarly, whereas some 40 - year - old couples are sending their children off to college, others are just beginning new families. Thus, age is often a poor predictor of a person's life cycle, health, work or family status, needs, and buying power. Companies marketing to mature consumers usually employ positive images and appeals. 18 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562