Question 1

A key question to ask before using the product differentiation-market segmentation strategy is:

Accepted Answer

A)  Will the new products steal customers or sales from the older one?
B)  Will the products offered compete head-to-head with those of a competitor?
C)  Can this action successfully draw customers away from competitors' markets?
D)  Are there enough similarities within the market segment to warrant such high costs?
E)  Will this action eliminate the need for individualized advertising and promotion?F) B) and E)
G) A) and B)

Question 2

Five general criteria are often used to pick target segments.They include the size of the market, expected growth of the market, competitive position of the firm with respect to the market, and cost of reaching the segment.What is the fifth criterion?

Accepted Answer

A)  compatibility with the organization's objectives and resources
B)  time required to create awareness
C)  need to conform to government regulations
D)  how long target market members have been customers
E)  amount of publicity likely to resultF) B) and D)
G) A) and C)

Question 3

What are two approaches to product positioning? Give an example of each approach.

Accepted Answer

There are two major approaches to positi...

Question 4

A rehabilitation center wants to target women in their 20s who have received some permanent disability as the result of a skiing accident.In terms of the criteria used for selecting a target segment, this market would

Accepted Answer

A)  have no expected growth.
B)  not be compatible with the company's current resources.
C)  be very small.
D)  be readily accessible to the firm's marketing programs.
E)  be relatively simple to access.F) C) and D)
G) A) and C)

Question 5

Which of the following is a basis used to segment U.S.organizational markets?

Accepted Answer

A)  geographic
B)  psychographic
C)  income
D)  needs
E)  educationF) B) and C)
G) B) and E)

Question 6

Variables such as location, the North American Industry Classification System (NAICS)  code, and number of employees are all examples of ways to

Accepted Answer

A)  get around gatekeepers and reach buyers.
B)  forecast sales to a consumer market.
C)  segment an organizational market.
D)  segment a consumer market.
E)  promote buyer loyalty.F) All of the above
G) A) and D)

Question 7

Frequency marketing is a strategy that focuses on usage rate.One key conclusion emerges about usage: In market segmentation studies,

Accepted Answer

A)  usage should be the last factor that is considered as a criterion for segmentation, since the entire point of segmentation is to attract consumers who are not yet using your product.
B)  some measure of usage by, or sales obtained from, various segments is central to the analysis.
C)  usage rate should always be considered in tandem with geographic segmentation factors.
D)  usage rate has far more value in consumer market segmentation than in organizational market segmentation.
E)  usage rate has far more value in organizational market segmentation than in consumer market segmentation.F) A) and D)
G) B) and D)

Question 8

Alka-Seltzer was made originally as a hangover remedy that cured the headache and settled the stomach.Today you can buy Original Alka-Seltzer, Extra Strength Alka-Seltzer, Alka-Seltzer Morning Relief (for morning headaches and fatigue) , and Alka-Seltzer Heartburn Relief.Each Alka-Seltzer product is targeted to a slightly different market segment.The maker of Alka-Seltzer is using

Accepted Answer

A)  product extrapolation.
B)  market sectioning.
C)  product differentiation.
D)  product segmentation.
E)  product base development.F) A) and B)
G) A) and C)

Question 9

When Ann Taylor, a well-known retailer of sophisticated women's clothing, started losing sales to its Loft outlets, featuring moderately priced casual clothes, they were dealing with the marketing phenomenon of __________.

Accepted Answer

A)  amortization
B)  product appropriation
C)  profit pilferage
D)  profit implosion
E)  cannibalismF) A) and B)
G) A) and C)

Question 10

If Wendy's customers are buying an eating experience, which of the following product groupings would likely make the most sense?

Accepted Answer

A)  grouping by product type such as types of drinks
B)  grouping by price
C)  grouping by meal
D)  grouping by usage
E)  Product groupings should not be used in Wendy's.F) A) and B)
G) B) and E)

Question 11

Magazines like Fitness, Field & Stream, Golf Digest, and Health all use a __________ segmentation strategy.

Accepted Answer

A)  psychographic
B)  behavioral
C)  situational
D)  socioeconomic
E)  geographicF) B) and E)
G) A) and B)

Question 12

The Zappos.com segmentation strategy is based on

Accepted Answer

A)  offering the absolute best selection of shoes and the absolute best service.
B)  designing shoes for every type of occasion.
C)  dividing all their customers into two distinct segments: people shopping for low price and people shopping for style.
D)  offering the best selection of shoes through every possible channel of distribution.
E)  maintaining the simplest method of price points to make the purchase process as simple as possible for its customers.F) A) and C)
G) C) and D)

Question 13

The purpose of the five key steps in segmenting and targeting markets is to

Accepted Answer

A)  help identify needs and wants of the consumer of which they themselves may not even be aware.
B)  provide guidance to reposition products for greater effectiveness at the least cost to the firm.
C)  help generate new products ideas for firms that are profitable but not growing in market share.
D)  link market needs of customers to the organization's marketing program.
E)  correspond directly to each of the five environmental forces.F) C) and E)
G) None of the above

Question 14

Which of the following is a consumer demographic variable?

Accepted Answer

A)  personality
B)  gender
C)  usage rate
D)  needs
E)  traitsF) B) and C)
G) A) and E)

Question 15

Which of the following statements regarding market segmentation is most accurate?

Accepted Answer

A)  Secondary data is irrelevant in forming a market-product grid since you are deciding matters that are specific to your own firm.
B)  In most segmentation situations, a single product does not fit into an exclusive market niche.It is important that when grouping products there is no overlap between cells.
C)  It is important to limit information input from too many sources because it can confuse the issue.
D)  Awareness of competition may be important in forming target markets but not in selecting target markets.
E)  In market segmentation, taking action refers to marketing efforts, not in production changes.F) C) and E)
G) A) and B)

Question 16

To be identified as a market segment, its members must

Accepted Answer

A)  represent a large share of the entire market and have critical buying power.
B)  have common needs and respond similarly to market actions.
C)  have different needs and have potential for future growth.
D)  have different needs and respond similarly to market actions.
E)  have potential for future growth and have potential for increased profit or return on investment.F) C) and D)
G) None of the above

Question 17

Which strategy involves a firm using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different and better than competing products?

Accepted Answer

A)  dual distribution
B)  market differentiation
C)  product differentiation
D)  market penetration
E)  full coverage marketingF) A) and D)
G) A) and C)

Question 18

The process of segmenting a market and selecting specific segments as targets is the link between __________ and the organization's marketing program.

Accepted Answer

A)  self-regulatory industry standards
B)  government regulations
C)  top-level management
D)  market needs
E)  controllable environmental factorsF) C) and D)
G) B) and E)

Question 19

FIGURE 9-1 
-Cell "B" in Figure 9-1 represents which stage of the market segmentation process?

Accepted Answer

A)  link needs to actions
B)  identify market needs
C)  establish a marketing protocol
D)  execute marketing program actions
E)  segment and select the target marketsF) B) and C)
G) A) and B)

Question 20

A business firm segments its markets when this strategy increases its sales revenue, profit, and return on investment.When expenses are greater than the potentially increased sales from segmentation, the firm should

Accepted Answer

A)  not consider market segmentation at this time.
B)  combine departments within the company to make the process more streamlined.
C)  reduce production costs, or increase prices to facilitate the segmentation process.
D)  seek alternate channels of distribution including Internet sales.
E)  discontinue manufacturing any products that are not in the mature stage of their product life cycle.F) C) and D)
G) D) and E)

Exam 9: Market Segmentation, Targeting, and Positioning

Correct Answer
verified

Which of the following is a basis used to segment U.S.organizational markets?

Correct Answer
verified

A key question to ask before using the product differentiation-market segmentation strategy is:

Correct Answer
verified

Magazines like Fitness, Field & Stream, Golf Digest, and Health all use a __________ segmentation strategy.

Correct Answer
verified

Which of the following is a consumer demographic variable?

Correct Answer
verified

A rehabilitation center wants to target women in their 20s who have received some permanent disability as the result of a skiing accident.In terms of the criteria used for selecting a target segment, this market would

Correct Answer
verified

Which strategy involves a firm using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different and better than competing products?

Correct Answer
verified

To be identified as a market segment, its members must

Correct Answer
verified

A business firm segments its markets when this strategy increases its sales revenue, profit, and return on investment.When expenses are greater than the potentially increased sales from segmentation, the firm should

Correct Answer
verified

What are two approaches to product positioning? Give an example of each approach.

Correct Answer
verified
There are two major approaches to positi...
View Answer

Which of the following statements regarding market segmentation is most accurate?

Correct Answer
verified

Five general criteria are often used to pick target segments.They include the size of the market, expected growth of the market, competitive position of the firm with respect to the market, and cost of reaching the segment.What is the fifth criterion?

Correct Answer
verified

Variables such as location, the North American Industry Classification System (NAICS) code, and number of employees are all examples of ways to

Correct Answer
verified

When Ann Taylor, a well-known retailer of sophisticated women's clothing, started losing sales to its Loft outlets, featuring moderately priced casual clothes, they were dealing with the marketing phenomenon of __________.

Correct Answer
verified

If Wendy's customers are buying an eating experience, which of the following product groupings would likely make the most sense?

Correct Answer
verified

FIGURE 9-1 -Cell "B" in Figure 9-1 represents which stage of the market segmentation process?

Correct Answer
verified

Frequency marketing is a strategy that focuses on usage rate.One key conclusion emerges about usage: In market segmentation studies,

Correct Answer
verified

The Zappos.com segmentation strategy is based on

Correct Answer
verified

The purpose of the five key steps in segmenting and targeting markets is to

Correct Answer
verified

The process of segmenting a market and selecting specific segments as targets is the link between __________ and the organization's marketing program.

Correct Answer
verified

Exam 9: Market Segmentation, Targeting, and Positioning

Correct AnswerverifiedShow Answer

Which of the following is a basis used to segment U.S.organizational markets?

Correct AnswerverifiedShow Answer

A key question to ask before using the product differentiation-market segmentation strategy is:

Correct AnswerverifiedShow Answer

Magazines like Fitness, Field & Stream, Golf Digest, and Health all use a __________ segmentation strategy.

Correct AnswerverifiedShow Answer

Which of the following is a consumer demographic variable?

Correct AnswerverifiedShow Answer

A rehabilitation center wants to target women in their 20s who have received some permanent disability as the result of a skiing accident.In terms of the criteria used for selecting a target segment, this market would

Correct AnswerverifiedShow Answer

Which strategy involves a firm using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different and better than competing products?

Correct AnswerverifiedShow Answer

To be identified as a market segment, its members must

Correct AnswerverifiedShow Answer

A business firm segments its markets when this strategy increases its sales revenue, profit, and return on investment.When expenses are greater than the potentially increased sales from segmentation, the firm should

Correct AnswerverifiedShow Answer

What are two approaches to product positioning? Give an example of each approach.

Correct AnswerverifiedThere are two major approaches to positi...View AnswerShow Answer

Which of the following statements regarding market segmentation is most accurate?

Correct AnswerverifiedShow Answer

Five general criteria are often used to pick target segments.They include the size of the market, expected growth of the market, competitive position of the firm with respect to the market, and cost of reaching the segment.What is the fifth criterion?

Correct AnswerverifiedShow Answer

Variables such as location, the North American Industry Classification System (NAICS) code, and number of employees are all examples of ways to

Correct AnswerverifiedShow Answer

When Ann Taylor, a well-known retailer of sophisticated women's clothing, started losing sales to its Loft outlets, featuring moderately priced casual clothes, they were dealing with the marketing phenomenon of __________.

Correct AnswerverifiedShow Answer

If Wendy's customers are buying an eating experience, which of the following product groupings would likely make the most sense?

Correct AnswerverifiedShow Answer

FIGURE 9-1 -Cell "B" in Figure 9-1 represents which stage of the market segmentation process?

Correct AnswerverifiedShow Answer

Frequency marketing is a strategy that focuses on usage rate.One key conclusion emerges about usage: In market segmentation studies,

Correct AnswerverifiedShow Answer

The Zappos.com segmentation strategy is based on

Correct AnswerverifiedShow Answer

The purpose of the five key steps in segmenting and targeting markets is to

Correct AnswerverifiedShow Answer

The process of segmenting a market and selecting specific segments as targets is the link between __________ and the organization's marketing program.

Correct AnswerverifiedShow Answer

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There are two major approaches to positi...
View Answer

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