1. The place a product occupies in consumers' minds on important attributes relative to competitive products is referred to as
Answer: product positioning.
2. The purpose of market segmentation is to respond more effectively to the wants of groups of potential buyers in order to
Answer: increase sales and profits.
3. A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can
Answer: increase sales and profitability.
4. Market segmentation refers to
Answer: aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action
5. To be identified as a market segment, its members must
Answer: have common needs and respond similarly to market actions.
7. The phrase "relatively homogeneous collections of prospective buyers" is most descriptive of
Answer: market segments.
8. A marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products is referred to as __________.
Answer: product differentiation
9. When Procter & Gamble introduced Crest toothpaste, the first fluoride toothpaste, it was intended for use by children and was therefore given a child-appealing bubblegum flavor. Sometime later the same basic formula was given a fresh, minty flavor to appeal to adults. What is this marketing strategy called?
Answer: product differentiation
10. 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
Answer: product differentiation.
11. The process of segmenting a market and selecting specific segments as targets is the link between __________ and the organization's marketing program.
Answer: market needs
12. The process of segmenting a market and selecting specific segments as targets is the link between the various buyers' needs and
Answer: the organization's marketing program.
13. Small athletic shoe manufacturers such as Vans have targeted niche markets and made shoes designed to satisfy the needs of different specific groups of customers. This strategy is an example of
Answer: market segmentation
14. Which of the following statements regarding market segmentation is most accurate?
Answer: If a business firm goes to the trouble and expense of segmenting its markets, it expects to reveal a way to increase sales, profits, and return investment.
15. Time magazine publishes 200 different U.S. editions each targeted at unique geographic and demographic segments using a special mix of advertisements. Time is using which of the following segmentation strategies?
Answer: one product with multiple market segments
16. When compared to a multiple-products-multiple-market segments strategy, a one-product-and-multiple-market-segments strategy
Answer: creates greater cost savings in manufacturing costs.
17. Which of the following is an example of a multiple products and multiple markets strategy?
Answer: Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of products.
18. Kellogg's different types of cereals, each targeted at a different type of user, are an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one but seems worthwhile if it adds to the manufacturer's sales revenues and profits, doesn't reduce quality or increase price, and
Answer: better serves the customers' needs.
20. Which of the following is an example of a "Tiffany/Wal-Mart" strategy?Answer: Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22.
21.You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50, or you can buy a card that's not quite as nice but just as sentimental from the store's new $.99 line of greeting cards. This is an example of
Answer: a "Tiffany/Wal-mart" strategy
22. Tailoring goods or services to the tastes of individual customers on a high-volume scale is referred to as
Answer: mass customization.
23. Custom Foot runs six retail locations. At first glance none looks any different from your basic old-fashioned shoe store, but the only boots on hand are display models. There's no inventory for sale, and customers go home empty-handed—at least initially. Customers browse the store, mixing and matching design components such as style, color, and leather type. About 100 display boots provide style guidelines. Once you choose a boot style, you select materials, colors, and textures. Custom Foot guarantees your boots will be ready within three weeks. This is an example of
Answer: mass customization.
24. To create a __________ strategy, nikeid.com allows customers to visit its Web site and design a sneaker to their own personal specifications.
Answer: mass customization
25. Manufacturing a product only when there is an order from a customer is referred to as
Answer: build-to-order (BTO).
26. The increased customer value achieved through performing organizational functions like marketing or manufacturing more efficiently is referred to as __________.
Answer: organizational synergy
27. When new products or a new chain steals customers and sales from older existing ones it is referred to as
Answer: cannibalization
28. The purpose of the five key steps in segmenting and targeting markets is to
Answer: link market needs of customers to the organization's marketing program.
29. The second step in segmenting and targeting markets is to
Answer: group products to be sold into categories.
30. The third step in segmenting and targeting markets is to
Answer: develop a market-product grid and estimate size of the overall market
32. Criteria for forming segments involve both similarities and differences. Which of the following statements is most accurate?
Answer: Within a segment the needs of potential buyers should be similar; among segments, the needs of buyers should be different
33. Neilsen Claritas' PRIZM is used to classify every household into one of 66 demographical and __________ distinct neighborhood segments to identify lifestyles and purchase behavior within a defined geographic market area, such as zip code.
Answer: behaviorally
34.Four general categories used to segment consumer markets are geographic segmentation, demographic segmentation, __________, and behavioral segmentation.
Answer: psychographic segmentation
35.Which of the following statements demonstrates the formation of a segment based on region?
Answer: In China KFC sells a much spicier chicken the farther away its restaurants are from the coastal areas.
36. Universal Concerts is planning on bringing a series of concerts to Canada next year. In general, Western Canadians much prefer country music, yet in Eastern Canada a country music event is very likely to have lots of empty seats. If they can have only one venue, Universal Concerts should segment its Canadian market according to __________, if it hopes to have a sold-out concert.
Answer: geographic characteristics
37. Which of the following is a consumer demographic variable?
Answer: gender
38. Procter & Gamble Co. (P & G) decided to skip a generation of consumers when it began to market Old Spice deodorant. The target market is men aged 18 to 34, who don't remember the Old Spice brand sold to their grandfathers many years ago. P & G is using which type of segmentation variable?
Answer: demographic
39. Which of the following statements demonstrates the formation of a segment based on household size?
Answer: GE built a downsized microwave oven to hang under kitchen cabinets.
40. Which of the following statements regarding segmentation bases is most accurate?
Answer: The identification of demographic variables is more objective than the identification of psychographic variables which is more subjective.
42. Magazines like Fitness, Field & Stream, Golf Digest, and Health all use a __________ segmentation strategy.
Answer: psychographic
48. People who might become users of the type of good or service your firm sells are referred to as
Answer: prospects.
49. A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as __________.
Answer: market-product grid
50. Market-product grid refers to
Answer: a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.
51. A market-product grid is a framework to relate the market segments of potential buyers to
Answer: products offered or potential marketing actions by an organization.
53.After establishing the markets and product groupings on a market-product grid the next step is to
Answer: make intelligent "guesstimates" of market size, for example, using a simple scale from zero to three (no market, a small market, a medium market, and large market).
54. One advantage of a market-product grid is that it can be used to
Answer: determine which target market segments to select and which product groupings to offer.
55. Which of the following statements regarding market segmentation is most accurate?
Answer: The bases for segmenting markets and the bases of selecting the segments are considerably different from one another.
56. Which of the following is a criterion for selecting a target market?
Answer: expected growth of segment
57. Which of the following is a criterion used for selecting a target segment?
Answer: competitive position
59.Which of the following is a criterion used for selecting a target segment?
Answer: compatibility with the organization's objectives and resources
60. 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?
Answer: Compatibility with the organization's objectives and resources
61.In developing a marketing strategy for the recently released Nike Air Jordan XVII with a price tag of $200, Nike decided to concentrate on affluent teens rather than members of high school basketball teams. This is an example of
Answer: selecting target market segments to reach.
62. Doris Lewis owns Lewis Edibles, Inc., a company that makes Tongue Tinglin' B.B.Q. Sauce. She wants to target local people who like the special blend of flavors found only in North Carolina barbecue sauce. In developing a marketing strategy to sell the sauce, Lewis decided to join Goodness Grows in North Carolina, a specialty food association that advertises local products and distributes them to local supermarkets and gourmet shops. Lewis has just
Answer: taken marketing actions to reach target markets.
64. If a firm cannot afford to do both, it will often favor _________ over __________ because a single customer segment will likely require a variety of products, each of which will have to be designed and manufactured.
Answer: market synergies; product synergies
65. The place a product occupies in consumers' minds on important attributes relative to competitive products is referred to as
Answer: product positioning.
66. Product positioning refers to
Answer: the place a product offering occupies in consumers' minds on important attributes.
67. Product repositioning refers to
Answer: changing the place an offering occupies in consumers' minds relative to competitive products.
68. Motts Applesauce used an advertising campaign to change the way consumers thought about applesauce from a dinnertime side dish to a replacement for cooking oil in baking. The advertising message was that using applesauce in baking cuts calories and also makes the resulting baked good healthier. Motts was using a __________ strategy.
Answer: repositioning
69. Positioning that involves competing directly with competitors on similar product attributes in the same target market is referred to as __________.
Answer: head-to-head positioning
70. In the sneaker market, Reebok and Nike practice __________ positioning since both manufacturers compete in the same target market with similar product attributes.
Answer: head-to-head
71. Positioning that involves seeking a less competitive, smaller market niche in which to locate a brand is referred to as __________.
Answer: differentiation positioning
72. Some Timex wristwatches can be purchased for less than $30; some Rolex wristwatches carry a price tag of several thousand dollars. In general, consumers view Timex watches as being dependable, relatively accurate, and inexpensive. The Rolex brand tends to be perceived as an expensive status symbol. Timex watches can be purchased in drug stores, discount stores, and department stores in all sizes of communities. Rolex watches are distributed more selectively, and are often available only in fine jewelry stores or specialty shops. By using distinctly different pricing and distribution strategies, the marketers of Timex and Rolex watches have attempted to
Answer: use a product differentiation strategy.
73. To avoid cannibalization within company product lines, firms often use
Answer: differentiation positioning.
74. A perceptual map can be used to identify a firm's product in terms of how closely it fits the "ideal" and where it fits in relationship to competitors. The map is based on perceptions of
Answer: consumers
75. A key to positioning a product or brand effectively is discovering the perceptions of its potential customers. In determining its positioning in the minds of customers, companies take four steps: (1) __________, (2) discover how target customers rate competing products or brands with respect to these attributes, (3) discover where the company's product or brand is on these attributes in the minds of potential customers, and (4) act to reposition the company's product or brand in the minds of potential customers
Answer: identify the important attributes for the product or brand class
76. 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, as well as its own product or brand, is referred to as __________.
Answer: perceptual map
77. A graph displaying consumers' perceptions of product attributes in two dimensions is referred to as a?
Answer: Perceptual map
78. Marketers use perceptual maps as a means to display or graph in two dimensions the location of products or brands
Answer: in the minds of consumers.
79. The axes on a perceptual map are
Answer: two product attributes each listed in terms of their opposites.
Neilsen Claritas' PRIZM is used to classify every household into one of 66 demographical and __________ distinct neighborhood segments to identify lifestyles and purchase behavior within a defined geographic market area, such as zip code.
Answer: Behaviorally
