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Chapter 7
Segmentation, Targeting, and Positioning:
Building the Right Relationships with the Right Customers
GENERAL CONTENT: Multiple-Choice Questions
1.Why does Procter & Gamble offer products that compete with one another on the
same supermarket shelves?
a.Different people want a greater selection.
b.Different people want different mixes of benefits from the products they buy.
c.Procter & Gamble has little competition.
d.Retailers request it.
e.It creates healthy competition.
(Answer: b; p. 193; Moderate)
2.By _____ the market and having several detergent brands, Procter & Gamble has an
attractive offering for consumers in all important preference groups.
a.dividing
b.researching
c.segmenting
d.understanding
e.reaching
(Answer: c; p. 194; Easy)
3.When a company identifies the parts of the market it can serve best and most
profitably, it is practicing _____.
a.concentrated marketing
b.mass marketing
c.targeted marketing
d.segmenting
e.undifferentiated
(Answer: d; p. 194; Moderate)
4.Research has shown that practicing mass marketing today is limited because the
world’s mass markets have slowly splintered into a profusion of _____.
a.unidentifiable markets
b.confused markets
c.small segments
d.international markets
e.disarray
(Answer: c; p. 194; Easy)
Chapter 7: Segmentation, Targeting, and Positioning:
Building the Right Relationships with the Right Customers 5.Al Moline and his staff have decided to use target marketing to reach their sales goals.
Identify their three steps (in order) to target marketing.
a.market segmentation, market positioning, target marketing
b.market positioning, market positioning, market segmentation
c.market segmentation, target marketing, market positioning
d.market alignment, market segmentation, market positioning
e.market recognition, market preference, market insistence
(Answer: c; p. 195; Challenging)
6.Even though several options are available at any one time, there is _____ to segment
a market.
a.one single best way
b.no single way
c.the most effective way
d.the least-cost way
e. a most popular way
(Answer: b; p. 195; Moderate)
7. Your firm has decided to localize its products and services to meet local market
demands. A good approach to use would be _____ segmentation.
a. geographic
b. benefit
c. end-use
d. customer
e. image
(Answer: a; p. 195; Easy)
8.Pendergraff Pet Supplies divides the pet market according to the owners’race,
occupation, income, and family life cycle. What type of segmentation does Pendergraff use?
a.VALS
b.benefit
c.end-use
d.demographic
e.psychographics
(Answer: d; p. 196; Moderate)
9.Through talking to numerous competitors at a regional trade show, you learn that
most of them use the most popular base for segmenting markets. What is it?
a.demographic
b.gender
c.psychographic
d.behavioral
e.geographic
(Answer: a; p. 196; Easy)
Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
10.When Burger King targets different groups—from children and teens to adults and
seniors—with different ads and media, it is practicing _____ segmentation.
a.demographic
b.age and life cycle
c.psychographic
d.behavioral
e.end-use
(Answer: b; p. 197; Moderate)
11.Marketers must be careful to guard against _____ when using age and life cycle
segmentation.
a.underestimating
b.stereotyping
c.traditional marketing
d.cultural bias
e.discrimination
(Answer: b; p. 197; Moderate)
12.When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is
probably using this type of segmentation.
a.age and life cycle
b.gender
c.behavior
d.psychographic
e.geographic
(Answer: b; p. 197; Easy)
13.Income segmentation is used to target the _____.
a.affluent
b.middle class
c.lower income class
d.all of the above
e.none of the above
(Answer: d; p. 198; Moderate)
14.Kathleen O’Toole divides buyers into groups based on their knowledge, attitudes,
uses, or responses to a product. Kathleen is obviously using _____ segmentation.
a.behavioral
b.psychographic
c.age and life cycle
d.demographic
e.geographic
(Answer: a; p. 200; Easy)
Chapter 7: Segmentation, Targeting, and Positioning:
Building the Right Relationships with the Right Customers 15.This type of segmentation centers on the use of the word when,such as when
consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item. What do marketers call this?
a.behavioral
b.psychographic
c.occasion
d.impulse
e.emergency
(Answer: c; p. 200; Moderate)
16.Markets can be segmented into group of nonusers, ex-users, potential users, first-time
users, and regular users of a product. This method of segmentation is called _____.
https://www.sodocs.net/doc/f517296581.html,er status
https://www.sodocs.net/doc/f517296581.html,age rate
c.benefit
d.behavior
e.product frequency
(Answer: a; p. 202; Easy)
17.Consumers can show their allegiance to brands, stores, or companies. Marketers can
use this information to segment consumers by _____.
https://www.sodocs.net/doc/f517296581.html,er status
b.loyalty
c.store type
d.brand preference
e.marketing myopia
(Answer: b; p. 204; Moderate)
18.By studying its less loyal buyers, a company can detect which brands are most _____
with its own.
https://www.sodocs.net/doc/f517296581.html,petitive
https://www.sodocs.net/doc/f517296581.html,ed
c.often overlooked
d.similar
https://www.sodocs.net/doc/f517296581.html,plementary
(Answer: a; p. 204; Easy)
19.Many firms are making an effort to identify smaller, better-defined target groups by
using _____.
https://www.sodocs.net/doc/f517296581.html,er rates
b.loyalty segmentation
c.multiple segmentation bases
d.positioning
e.mass marketing
(Answer: c; p. 204; Moderate)
Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
20.Consumer and business marketers use many of the same variables to segment markets.
In addition, business marketers use all of the following except one. Which one?
a.operating characteristics
b.purchasing deadlines
c.situational factors
d.personal characteristics
e.brand personalities
(Answer: b; p. 206; Challenging)
21.By going after segments instead of the whole market, companies have a much better
chance to receive maximum rewards for close attention to consumer needs and to _____.
a.deliver value to consumers
b.increase market share
c.develop greater customer loyalty
d.offer lower prices
e.all of the above
(Answer: e; p. 208; Moderate)
22.The owner of Riviera Apartments, a complex of 60 buildings with 3,100 apartments
in Arizona, believes that the best bases for segmenting business markets are benefits and _____.
a.demographics
b.psychographics
c.VALS
d.buying behavior
e.concentration of buyers
(Answer: d; p. 207; Challenging)
23.International Drilling Company segments its foreign markets by their overall level of
economic development. This firm segments on what basis?
a.political factors
b.legal factors
c.benefits sought
d.economic factors
e.natural factors
(Answer: d; p. 208; Moderate)
24.When the size, purchasing power, and profiles of business market segments can be
determined, they are said to possess the requirement of being _____.
Chapter 7: Segmentation, Targeting, and Positioning:
Building the Right Relationships with the Right Customers
a.measurable
b.accessible
c.substantial
d.actionable
e.observable
(Answer: a; p. 208; Moderate)
25.When a business market segment is large or profitable enough to serve, it is termed
_____.
a.measurable
b.accessible
c.substantial
d.actionable
e.observable
(Answer: c; p. 208; Easy)
26.You have discovered that effective programs can be designed for attracting and
serving your chosen segments. This segmenting requirement is called _____.
a.accessible
b.measurable
c.reachable
d.actionable
e.observable
(Answer: d; p. 208; Challenging)
27.It is now time to evaluate the different market segments your company is serving.
You would look at all of these factors except one. Which one?
a.segment size
b.segment growth
c.structural attractiveness
https://www.sodocs.net/doc/f517296581.html,pany values and mission
e.none of the above
(Answer: d; p. 209; Challenging)
28.Barney Hopkins has compiled a list of things that make segments attractive. One of
them is an error. Locate it.
a.relative power of buyers
https://www.sodocs.net/doc/f517296581.html,ck of powerful suppliers to control the channel
c.few substitute products
https://www.sodocs.net/doc/f517296581.html,petition with superior resources
e.financial resources
(Answer: d; p. 209; Challenging)
29.In general, a company should enter only segments in which it can _____ and _____.
a.offer lower prices; ship faster
Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
b.offer superior value; gain advantages over competitors
c.offer superior value; ship faster
d.gain advantages over competitors; get co-op advertising
e.identify behaviors; understanding spending power
(Answer: b; p. 210; Moderate)
30.The 50-year-old baby boomers share common needs in music and performers. When
a company can serve this group, it is reaching a(n) _____.
a.market segment
b.target market
c.well-defined market
d.lucrative market
e.ultimatum
(Answer: b; p. 210; Easy)
31.Mass marketers, such as Target and Venture Stores, ignore market segment
differences and target the whole market with one offer. What is their approach to segmenting?
a.undifferentiated marketing
b.differentiated marketing
c.target marketing
d.blanket marketing
e.intelligent marketing
(Answer: a; p. 210; Easy)
32.When New Port Shipping uses segmented marketing, it targets several segments and
designs separate offers for each one. This approach is called _____ marketing.
a.undifferentiated
b.differentiated
c.multi-segmented
d.mass
e.multiple-attractions
(Answer: b; p. 210; Moderate)
33.Developing a stronger position within several segments creates more total sales than
_____ marketing across all segments.
a.undifferentiated
b.differentiated
c.mass
d.target
e.multiple-segment
(Answer: a; p. 210; Challenging)
34.ByWay Ventures uses a differentiated marketing strategy. The company must weigh
_____ against _____ when selecting this strategy.
a.extra research; costs
Chapter 7: Segmentation, Targeting, and Positioning:
Building the Right Relationships with the Right Customers
b.sales analysis; sales
c.increased sales; increased costs
d.benefits; costs
e.attitudes; perceptions
(Answer: c; p. 211; Moderate)
35.Sanguine Services practices a marketing strategy where its limited resources are used
to go after a large share of two small niches. Sanguine practices which one of these strategies?
a.undifferentiated
b.differentiated
c.mass
d.concentrated
e.geographically dispersed
(Answer: d; p. 211; Challenging)
36.Niching offers smaller companies the opportunity to compete by focusing their
limited resources on serving niches that may be _____ or _____ larger companies.
a.unimportant to; unwanted by
b.unimportant to; overlooked by
c.too small; undesirable to
d.unknown by; unwanted by
e.none of the above
(Answer: b; p. 211; Moderate)
37.Today, the low cost of setting up shop _____ makes it even more profitable to serve
seemingly miniscule niches.
a.in malls in major cities
b.in mail-order catalogs
c.on the Internet
d.near major competitors
e.far from competitors
(Answer: c; p. 212 Easy)
38.Which of the segmenting strategies carries higher-than-average risks in consumer
markets?
a.concentrated
b.niche
c.differentiated
d.undifferentiated
e.multiple-segment
(Answer: a; p. 212; Moderate)
39.As You Like It, Inc., customizes its offers to each individual consumer. This practice
of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as _____ marketing.
Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
a.niche
b.micro
c.differentiated
d.mass
e.none of the above
(Answer: b; p. 212; Moderate)
40.A segmenting approach that has been around for a long time that can be very
effective, _____ , tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even specific stores.
a.micromarketing
b.differentiated marketing
c.niche marketing
d.local marketing
e. A or D
(Answer: d; p. 212; Easy)
41.When a company interacts one-on-one with large numbers of customers to create
customer-unique value by designing products and services tailor-made to individual needs, it is following _____.
a.individual marketing
b.mass marketing
c.mass customizing
d.differentiated marketing
e.localization
(Answer: c; p. 213; Challenging)
42.One of the following is NOT a drawback of local marketing. Can you locate it?
a.It can drive up manufacturing costs.
b.It can drive up marketing costs by reducing economies of scale.
c.It can create logistics problems.
d. A brand’s overall image might be diluted with too frequent us
e.
e. C and D
(Answer: d; p. 212; Challenging)
43.Under what circumstances can local marketing be quite effective?
a.when pronounced regional differences in demographics and lifestyles are present
b.when pronounced local differences in demographics and lifestyles are present
c.when pronounced regional and local differences in demographics and lifestyles
are present
d.when regional and local differences in demographics and lifestyles are similar
e.any of the above
(Answer: c; p. 212; Challenging)
44.The latest marketing report published by Current Data intrigues you. It states “The
move toward individual marketing mirrors the trend in consumer _____.”
a.self-imaging
Chapter 7: Segmentation, Targeting, and Positioning:
Building the Right Relationships with the Right Customers
b.self-marketing
c.customizing
d.tastes
e.self-conceptualization
(Answer: b; p. 214; Easy)
45.When companies combine operationally driven mass customization with customized
marketing to empower consumers to design products and services to their own preferences, they are practicing _____.
a.niche marketing
https://www.sodocs.net/doc/f517296581.html,pany reflections
c.customizing
d.individual marketing
e.direct marketing
(Answer: c; p. 213; Challenging)
46.When choosing a target marketing strategy, many factors need to be considered.
Which of the following was NOT mentioned as important in your text?
https://www.sodocs.net/doc/f517296581.html,pany resources
b.degree of product variability
c.product life cycle
d.market stability
e. B and D
(Answer: d; p. 214; Moderate)
47.When competitors use differentiated or concentrated marketing, _____ marketing can
be suicidal.
a.differentiated
b.undifferentiated
c.concentrated
d.customized
e.localized
(Answer: b; p. 215; Easy)
48.When competitors use undifferentiated marketing, a firm can gain an advantage by
using differentiated or _____ marketing.
a.undifferentiated
b.customized
c.concentrated
d.individual
e.mass
(Answer: c; p. 215; Moderate)
49.Target marketing sometimes generates controversy and concern. Issues usually
involve the targeting of _____ consumers with _____ products.
a.elderly; expensive
Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
b.young; appealing
c.vulnerable; potentially harmful
d.vulnerable or disadvantaged; controversial or potentially harmful
e.unexpected; business
(Answer: d; p. 215; Challenging)
50.It is considered socially irresponsible when the marketing of adult products spills over
into the _____ segment.
a.elderly
b.child
c.animal
d.minority
e.senior
(Answer: b; p. 215; Easy)
51.Cigarette, beer, and fast-food marketers have generated much controversy in recent
years by their attempts to target _____.
a.teens
b.the poor
c.inner-city minorities
d.the poor in foreign markets
e.the Amish
(Answer: c; p. 215; Moderate)
52.In spite of problems with marketers targeting children and minorities, most attempts
provide _____ to target customers.
a.benefits
https://www.sodocs.net/doc/f517296581.html,cation
c.experience
d.major sales
e.expenses
(Answer: a; p. 216; Easy)
53.In target marketing, the issue is not really who is targeted, but rather ____ and for
_____.
a.why; what
b.how; what
c.why; how long
d.where; when
e.none of the above
(Answer: b; p. 216; Moderate)
54.This group determines a product’s position relative to competing products.
a.manufacturers
b.wholesalers
Chapter 7: Segmentation, Targeting, and Positioning:
Building the Right Relationships with the Right Customers
c.retailers
d.consumers
e.none of the above
(Answer: d; p. 216; Easy)
55.In order to make positioning effective, the brand’s _____ and _____ must be
implanted in customers’ minds.
a.uniqueness; benefits
b.unique benefits; differentiation
c.differentiation; equity
d.price; competitiveness
e.image; worth
(Answer: b; p. 216; Moderate)
56.As marketing manager of Swiss Chalets, a mountain and lakeside resort, you discover
that consumers position products and services _____.
a.after marketers put marketing mixes in place
b.generally after consulting friends who use them
c.with or without the help of marketers
d.rather reluctantly
e.based on nearby competitors’ positions
(Answer: c; p. 217; Challenging)
57.Choose the incorrect item in the list of positioning tasks.
a.Identify a set of possible competitive advantages upon which to build a position.
b.Survey frequent uses of the product.
c.Select an overall positioning strategy.
d.Effectively communicate and deliver the chosen position to the market.
e.Assess competitors’ positions in the immediate market.
(Answer: b; p. 218; Moderate)
58.A company or store gains a _____ by understanding customer needs better than
competitors do and delivering more value.
https://www.sodocs.net/doc/f517296581.html,petitive advantage
b.positioning advantage
c.cost advantage
d.efficiency advantage
e.synergy
(Answer: a; p. 218; Easy)
59.A company or market offer can be differentiated along the lines of product, image,
services, channels, or _____.
a.prices
Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
b.nonprice factors
c.people
d.customer service
e.none of the above
(Answer: c; p. 218; Moderate)
60.In addition to differentiating a company or market, companies can differentiate their
products on several attributes. One of the following is NOT a common attribute.
Which one?
a.consistency
b.durability
c.reliability
https://www.sodocs.net/doc/f517296581.html,patibility
e.repairability
(Answer: d; p. 218; Challenging)
61.Firms gain this type of advantage through the way they design their distribution
coverage, expertise, and performance.
a.services differentiation
b.channel differentiation
c.people differentiation
d.product differentiation
e.price differentiation
(Answer: b; p. 218; Easy)
62.When firms use symbols, colors, or characters to convey their personalities, they are
using this type of differentiation.
a.image
b.people
https://www.sodocs.net/doc/f517296581.html,pany
d.reputation
e.subliminal
(Answer: a; p. 219; Easy)
63.Ad man Rosser Reeves believes that firms should develop a USP for each brand and
stick to it. For what does USP stand?
a.unique selling product
b.unique services practice
c.unique sales pitch
d.unique selling proposition
e.universally strategic practice
(Answer: d; p. 219; Challenging)
64.A difference to promote is worth establishing to the extent that it satisfies all of the
criteria except one. Which one?
a.important
Chapter 7: Segmentation, Targeting, and Positioning:
Building the Right Relationships with the Right Customers
b.distinctive
c.divisible
d.affordable
e.noticeable
(Answer: c; p. 220; Moderate)
65.When competitors cannot easily copy this difference to promote, we say we have a
_____ difference.
a.distinctive
b.profitable
c.preemptive
d.superior
e.irreconcilable
(Answer: c; p. 220; Easy)
66.You have just created the “perfect” ad. It communicates the full mix of benefits upon
which the brand is positioned. This full positioning is called _____.
a.value proposition
b.AIDA
c.capturing the consumers’ attention
d.value profiling
e.VALS
(Answer: a; p. 221; Moderate)
67.The answer to the customer’s question, “Why should I buy your brand?” is found in
the _____.
a.quality image
b.customer services
c.value proposition
d.encyclopedia
e.pricing and promotion structure
(Answer: c; p. 221; Challenging)
68.This positioning strategy is very competitive. It can attack a more-for-more strategy
by introducing a brand offering with comparable quality but at a lower price.
a.more-for-the-same
b.more-for-less
c.same-for-less
d.less-for-much-less
e.all-or-nothing
(Answer: a; p. 221; Moderate)
69.This positioning strategy offers consumers a “good deal”by offering equivalent-
quality products or services at a lower price. Choose it.
a.more-for-the-same
b.more-for-less
Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
c.same-for-less
d.less-for-much-less
e.all-or-nothing
(Answer: c; p. 221; Easy)
70.Which positioning strategy is very difficult to use when pursuing “best-of-both”
positioning?
a.more-for-the-same
b.more-for-less
c.same-for-less
d.more-for-more
e.none of the above
(Answer: b; p. 224; Moderate)
71.This statement first states the product’s membership in a category and then shows its
point-of-difference from other members of the category.
a.mission statement
b.vision statement
c.position statement
d.positioning statement
e.statement of intent
(Answer: d; p. 224; Moderate)
72.Once it has chosen a position, a company must take strong steps to deliver and
communicate the desired position to target consumers. Locate the step that is NOT correct.
a.The company’s marketing mix efforts must support the positioning strategy.
b.Positioning the company calls for concrete action, not just talk.
c.Designing the marketing mix involves working out the strategic details of the
positioning strategy.
d.Its service personnel, retailers, and advertising messages must match correctly.
e. B and C
(Answer: d; p. 225; Challenging)
73. _____ is the narrowest marketing strategy.
a. segmented strategy
b. local marketing
c. differentiated marketing
d. mass marketing
e. A and C
(Answer: b; p. 210; Moderate)
74. With concentrated marketing, the marketer goes after a _____ share of _____.
a. small; a small market
b. small; a large market
c. large; one or a few niches
Chapter 7: Segmentation, Targeting, and Positioning:
Building the Right Relationships with the Right Customers
d. large; the mass market
e. none of the above
(Answer: c; p. 211; Challenging)
75.A product’s position is based on important attributes as perceived by _____.
a.suppliers
https://www.sodocs.net/doc/f517296581.html,petitors
c.market conditions
d.consumers
e. B or D
(Answer: d; p. 216; Moderate)
True/False
76.Today, most companies have moved away from mass marketing and are being more
choosy about the customers with whom they wish to build relationships. (Answer: True; p. 194; Moderate
77.For most of the past century, major consumer products companies held fast to mass
marketing.
(Answer: True; p. 194; Easy)
78.At this point, your company wants to move away from mass marketing and engage in
target marketing. The three steps to take, in order, are market segmentation, marketing positioning, and target marketing.
(Answer: False; p. 195; Moderate)
79.Each firm should be able to find a single way to segment each market.
(Answer: False; p. 195; Easy)
80.Bombay Gifts divides its markets into units of nations, regions, and cities. Bombay
uses geographic segmentation.
(Answer: True; p. 195; Easy)
81.This type of segmentation uses different marketing approaches for different time
periods of peoples’ lives and different family situations. This segmentation method is called demographic.
(Answer: False; p. 196; Moderate)
82.Gender segmentation has long been used in clothing, cosmetics, toiletries, and
magazines.
(Answer: True; p. 198; Easy)
Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
83.Shopping For The Rich and Famous is a buying service that helps wealthy clients find
the best buys in exclusive clothing, high-end cars, travel, and financial services. This firm would use income segmentation.
(Answer: True; p. 198; Easy)
84.Your assignment at work is to divide buyers into different groups based on social
class, lifestyle, and personality characteristics. After a planning session with the marketing and sales staff, you issue a memo to upper management recommending psychographic segmentation. You are right on target.
(Answer: True; p. 199; Challenging)
85.Many marketers believe that behavior variables are the best starting point for building
market segments.
(Answer: True; p. 200; Moderate)
86.Behavioral segmentation requires finding the major advantages or features people
look for in the product class, the kinds of people who look for each advantage or feature, and the major brands that deliver each advantage or feature.
(Answer: False; p. 200; Challenging)
https://www.sodocs.net/doc/f517296581.html,Grange Florists segments markets into groups of nonusers, ex-users, potential users,
first-time users, and regular users of its flowers and services. This firm uses usage rate as the segmentation approach.
(Answer: False; p. 203; Moderate)
88.Research and planning for loyalty status as a segmentation approach is generally not
useful or practical for most firms.
(Answer: False; p. 204; Easy)
89.For simplicity’s sake, most marketers generally limit their segmentation analysis to
one or a few variables.
(Answer: False; p. 204; Moderate)
90.Segmenting business markets goes beyond consumer market variables. Operating
characteristics, purchasing approaches, situational factors, and company culture may also be considered.
(Answer: False; p. 206; Challenging)
91.A growing number of U.S.-based companies have developed the resources and the
will to operate in many foreign companies. International segmenting of markets has become quite popular.
(Answer: False; p. 207; Challenging)
92.Because there is such variation among the economies of countries around the world, it
is not practical to segment international markets on the basis of economic factors. (Answer: False; p. 208; Moderate)
Chapter 7: Segmentation, Targeting, and Positioning:
Building the Right Relationships with the Right Customers 93.Karyn Caudill, marketing director for a major hospital in Houston, Texas, sees the
growing number of ethnic groups and subcultures in her area. She has discovered that for market segments to be useful they must be measurable, accessible, substantial, differentiable, and attainable.
(Answer: False; p. 208; Challenging)
94.In evaluating different market segments, a firm must look at three factors: segment
size and growth, segment structural attractiveness, and company objectives and resources.
(Answer: True; p. 209; Moderate)
95.At a recent marketing seminar, the featured speaker stated that a target market
consists of a set of buyers who share common needs or characteristics that the company decides to serve. You believe this is a correct definition.
(Answer: True; p. 209; Easy)
96.Developing a stronger position within several segments creates more total sales than
undifferentiated marketing across all segments.
(Answer: True; p. 210; Moderate)
97.Because Cruise Ships International currently has limited financial and personnel
resources, it should avoid concentrated or niche marketing until resources are again substantial.
(Answer: False; p. 211; Moderate)
98.Niche marketing offers smaller companies an opportunity to compete by focusing
their limited resources on serving niches that may be unimportant to or overlooked by larger companies.
(Answer: True; p. 211; Easy)
99.The widespread use of mass marketing has obscured the fact that for centuries
consumers were served as individuals where businesses practiced individual marketing.
(Answer: True; p. 213; Easy)
100.When a company faces choosing a target marketing strategy, its choices are limited by factors related to company resources, the degree of product variability, and the product’s life cycle.
(Answer: False; p. 214; Moderate)
101.The latest Gallup Poll research shows that all attempts to target children, minorities, and other special segments are drawing criticism in the form of potential targeting abuses.
(Answer: False; p. 215; Moderate)
Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
102.A product’s position is the way the product is defined by the retailers who sell it to target markets. It is how it is defined on important attributes—the place the product occupies in the retailers’ minds relative to competing products.
(Answer: False; p. 216; Easy)
103.Consumers position products with or without the help of marketers.
(Answer: True; p. 217; Easy)
104.When Kia offers a new model of car with the same features as a comparable Toyota or Ford and provides a longer warranty, it is following a more-for-less strategy. (Answer: False; p. 222; Moderate)
105.Each company must develop its own winning positioning strategy, one that makes it special to its target consumers. The company’s positioning and brand positioning should be summed up in a positioning summary.
(Answer: False; p. 218; Challenging)
Essay
106.Outline the three major steps in target marketing.
The first step is market segmentation: dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors, who might require separate products or marketing mixes. The company identifies different ways to segment the market and develops profiles of the resulting market segment. The second step is target marketing: evaluating each market segment’s attractiveness and selecting one or more of the market segments to enter. The third step is market positioning: setting the competitive positioning for the product and creating a detailed marketing mix.
(p. 195; Moderate)
Chapter 7: Segmentation, Targeting, and Positioning:
Building the Right Relationships with the Right Customers 107.Explain the four major segmenting variables for consumer markets.
Geographic segmentation divides the market into different geographic units, such as nations, regions, states, countries, cities, or neighborhoods. Many companies are localizing their products, advertising, promotion, and sales efforts or are seeking to cultivate as-yet untapped geographic territory. Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. They are the most popular factors because they are easy to measure, and consumer needs, wants, and usage rates often vary closely with demographic variables. Psychographic segmentation, on the other hand, divides buyers into different groups based on social class, lifestyle, or personality characteristics. People in the same demographic group can have very different psychographic makeups. Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product. Many marketers believe that behavior variables are the best starting point for building market segments.
(p. 195; Challenging)
108.Describe how marketers use multiple-segmenting bases to their advantage.
Marketers rarely limit their segmenting analysis to only one or a few variables. They use multiple segmentation bases in an effort to identify smaller, better-defined target groups. Companies often begin by segmenting their markets using a single base, then expand using other bases.
(p. 204; Easy)
109.Why do businesses segment their markets?
By going after segments instead of the whole market, companies have a much better chance to deliver value to customers and to receive maximum rewards for close attention to customer needs. Businesses segment using variables of operating characteristics, purchasing approaches, situational factors, and personal characteristics.
(p. 206; Easy)
110.Why do international markets need to be segmented?
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 behaviors.
(p. 207; Easy)