Question 1

Which of the following statements about market segmentation for organizational markets is most accurate?

Accepted Answer

A)  Criteria for segmenting markets are the same whether the market is composed of consumers or organizations. 
B)  Both consumer markets and organizational markets use demographic, geographic, and behavioral bases to segment markets. 
C)  Psychographic criteria are just as important in segmenting organizational markets as they are in segmenting consumer markets. 
D)  Consumer markets use market segmentation criteria while organizational markets do not. 
E)  The greatest difference in market segmentation strategies between consumer and organizational markets is the number of employees employed in the segmentation process. 
A)  Criteria for segmenting markets are the same whether the market is composed of consumers or organizations. 
B)  Both consumer markets and organizational markets use demographic, geographic, and behavioral bases to segment markets. 
C)  Psychographic criteria are just as important in segmenting organizational markets as they are in segmenting consumer markets. 
D)  Consumer markets use market segmentation criteria while organizational markets do not. 
E)  The greatest difference in market segmentation strategies between consumer and organizational markets is the number of employees employed in the segmentation process. B

Question 2

The first step in segmenting and targeting markets that links customer needs to marketing actions is to

Accepted Answer

A)  group potential buyers into segments. 
B)  develop a market-product grid and estimate size of the overall market. 
C)  select target markets. 
D)  group products to be sold into categories. 
E)  take marketing actions to reach target markets. 
A)  group potential buyers into segments. 
B)  develop a market-product grid and estimate size of the overall market. 
C)  select target markets. 
D)  group products to be sold into categories. 
E)  take marketing actions to reach target markets. A

Question 3

Explain the difference between marketing synergies and product synergies.

Accepted Answer

Synergy analysis seeks opportunities by finding the optimum balance between marketing efficiencies versus product efficiencies and is vital to a marketer's success in selecting target market segments and making marketing program action decisions. Marketing synergies run horizontally across the rows in a market-product grid and represent an opportunity for efficiency in terms of a market segment. Marketing efforts can be streamlined with a focus on fewer segments. Product synergies run vertically down the columns in a market-product grid and each column represents an opportunity for efficiency in research and development and production. To simplify product lines and reduce R&D and production expenses, a firm might only wish to manufacture one or a few products and could determine which to make based on the number of segments with an interest in that product. See the Apple Segmentation Strategy in the Marketing Matters box.

Question 4

Figure 8-8
-The perceptual map in Figure 8-8 shows adult perceptions for beverages. Suppose a marketer is introducing a new beverage that is higher-than-average in nutrition and is intended for adults. It will probably be most useful to promote the drink as similar to what?

Accepted Answer

A)  tea 
B)  fruit-flavored drinks 
C)  sugared soft drinks 
D)  regular milk 
E)  coffee 
A)  tea 
B)  fruit-flavored drinks 
C)  sugared soft drinks 
D)  regular milk 
E)  coffee

Question 5

Samsung sells a variety of TVs, from simple and small ones to large smart TVs with Internet connectivity and 3-D technology. Customers prefer different features, so Samsung uses which type of segmentation variable based on their viewing preferences?

Accepted Answer

A)  demographic segmentation 
B)  psychographic segmentation 
C)  behavioral segmentation 
D)  geographic segmentation 
E)  socioeconomic segmentation 
A)  demographic segmentation 
B)  psychographic segmentation 
C)  behavioral segmentation 
D)  geographic segmentation 
E)  socioeconomic segmentation

Question 6

A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as a

Accepted Answer

A)  needs table. 
B)  cross-tabulation. 
C)  market-product grid. 
D)  growth-share matrix. 
E)  product differentiation table. 
A)  needs table. 
B)  cross-tabulation. 
C)  market-product grid. 
D)  growth-share matrix. 
E)  product differentiation table.

Question 7

Procter & Gamble (P&G) decided to skip a generation of consumers when it began to market Old Spice deodorant. The target market consists of men aged 18 to 34 years old (Generation Y) who don't remember the Old Spice brand sold to their grandfathers many years ago. P&G is using which type of segmentation variable?

Accepted Answer

A)  behavioral 
B)  demographic 
C)  lifestyle 
D)  geographic 
E)  psychographic 
A)  behavioral 
B)  demographic 
C)  lifestyle 
D)  geographic 
E)  psychographic

Question 8

Which of the following statements regarding when and how to segment markets is most accurate?

Accepted Answer

A)  Even if a firm finds uniform needs across all users, it should take advantage of the method to avoid falling behind its competitors. 
B)  Market segmentation is only feasible for large corporations; small businesses don't have the resources to engage in the process. 
C)  Governments should not attempt market segmentation because the strategy is only applicable for consumer and organizational markets. 
D)  If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment. 
E)  Market segmentation strategies work less than 10 percent of the time. 
A)  Even if a firm finds uniform needs across all users, it should take advantage of the method to avoid falling behind its competitors. 
B)  Market segmentation is only feasible for large corporations; small businesses don't have the resources to engage in the process. 
C)  Governments should not attempt market segmentation because the strategy is only applicable for consumer and organizational markets. 
D)  If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment. 
E)  Market segmentation strategies work less than 10 percent of the time.

Question 9

The primary focus of Zappos' initial market segmentation strategy was to sell

Accepted Answer

A)  shoes and other products to people who will buy them online and like to use mobile technology. 
B)  a wide selection of leather shoes and boots to high-end retailers. 
C)  all types of shoes, accessories, and clothing to department and fashion discount stores for reasonable prices. 
D)  Spanish novelties and accessories to organizations that typically resell them. 
E)  shoes in its own retail stores to those who prefer face-to-face interaction. 
A)  shoes and other products to people who will buy them online and like to use mobile technology. 
B)  a wide selection of leather shoes and boots to high-end retailers. 
C)  all types of shoes, accessories, and clothing to department and fashion discount stores for reasonable prices. 
D)  Spanish novelties and accessories to organizations that typically resell them. 
E)  shoes in its own retail stores to those who prefer face-to-face interaction.

Question 10

The ultimate criterion for an organization's marketing success is that ________ as a result of increased synergies.

Accepted Answer

A)  costs decrease 
B)  market share increases 
C)  product deficiencies decrease 
D)  customers should be better off 
E)  new products flourish 
A)  costs decrease 
B)  market share increases 
C)  product deficiencies decrease 
D)  customers should be better off 
E)  new products flourish

Question 11

Segmentation based on some observable actions or attitudes by prospective customers, such as what benefits they seek, as well as where, how frequently, and why they buy, is referred to as

Accepted Answer

A)  demographic segmentation. 
B)  psychographic segmentation. 
C)  geographic segmentation. 
D)  behavioral segmentation. 
E)  socioeconomic segmentation. 
A)  demographic segmentation. 
B)  psychographic segmentation. 
C)  geographic segmentation. 
D)  behavioral segmentation. 
E)  socioeconomic segmentation.

Question 12

The annual Street & Smith's Baseball magazine had exactly the same stories but with 15 different covers to appeal to baseball fans in 15 of the U.S. regions. What is the basis of its market segmentation strategy?

Accepted Answer

A)  psychographic segmentation 
B)  retail outlet segmentation 
C)  demographic segmentation 
D)  behavioral segmentation 
E)  geographic segmentation 
A)  psychographic segmentation 
B)  retail outlet segmentation 
C)  demographic segmentation 
D)  behavioral segmentation 
E)  geographic segmentation

Question 13

"For World Wide Web users who enjoy books, Amazon.com is a retail bookseller that provides instant access to over 1.1 million books as well as a combination of extraordinary convenience and low prices" is a ________ statement for Amazon.com in North America.

Accepted Answer

A)  perception 
B)  positioning 
C)  market-product 
D)  vision 
E)  differentiation 
A)  perception 
B)  positioning 
C)  market-product 
D)  vision 
E)  differentiation

Question 14

When compared to a multiple products, multiple market segments strategy, a one product, multiple market segment strategy

Accepted Answer

A)  is a much more effective means of meeting consumers' individual needs. 
B)  creates greater savings in production costs. 
C)  is a more effective way of meeting organizational objectives. 
D)  has significantly higher distribution costs. 
E)  is more profitable since a firm can charge the new segments higher prices without changing the product. 
A)  is a much more effective means of meeting consumers' individual needs. 
B)  creates greater savings in production costs. 
C)  is a more effective way of meeting organizational objectives. 
D)  has significantly higher distribution costs. 
E)  is more profitable since a firm can charge the new segments higher prices without changing the product.

Question 15

During its market segmentation process for the Nike LeBron X basketball shoe, which sells for more than $200 a pair, Nike decided to concentrate on affluent teens rather than members of high school basketball teams. This is an example of

Accepted Answer

A)  selecting target market segments to reach. 
B)  forming products to be sold into groups. 
C)  developing a market-product grid and estimating size of markets. 
D)  taking marketing actions to reach target markets. 
E)  forming prospective buyers into segments. 
A)  selecting target market segments to reach. 
B)  forming products to be sold into groups. 
C)  developing a market-product grid and estimating size of markets. 
D)  taking marketing actions to reach target markets. 
E)  forming prospective buyers into segments.

Question 16

To effectively position a product or brand, companies take four steps, including which of these?

Accepted Answer

A)  decide whether to keep or delete the market segment that your product offering targets 
B)  identify the key differentiators for competitors' brands 
C)  discover how target customers rate a company's product or brand on important attributes 
D)  create a marketing plan based on customers' perceptions 
E)  identify market niches that were not selected during the market segmentation process 
A)  decide whether to keep or delete the market segment that your product offering targets 
B)  identify the key differentiators for competitors' brands 
C)  discover how target customers rate a company's product or brand on important attributes 
D)  create a marketing plan based on customers' perceptions 
E)  identify market niches that were not selected during the market segmentation process

Question 17

A relatively homogeneous group of prospective buyers that results from the market segmentation process is referred to as

Accepted Answer

A)  a market segment. 
B)  a target market. 
C)  a customer base. 
D)  an ultimate consumer. 
E)  a preferred customer. 
A)  a market segment. 
B)  a target market. 
C)  a customer base. 
D)  an ultimate consumer. 
E)  a preferred customer.

Question 18

A market-product grid is a framework to relate the ________ to products offered or potential marketing actions by an organization.

Accepted Answer

A)  market segments of potential buyers 
B)  marketing objectives of potential products 
C)  total anticipated revenue annually 
D)  total anticipated profit annually 
E)  market share of the closest competitor 
A)  market segments of potential buyers 
B)  marketing objectives of potential products 
C)  total anticipated revenue annually 
D)  total anticipated profit annually 
E)  market share of the closest competitor

Question 19

Tony Hsieh's most important contribution at Zappos was to

Accepted Answer

A)  immediately change its product mix. 
B)  develop its segmentation strategy. 
C)  focus on value-oriented customers. 
D)  focus on unknown brands. 
E)  shift to a more transactional focus. 
A)  immediately change its product mix. 
B)  develop its segmentation strategy. 
C)  focus on value-oriented customers. 
D)  focus on unknown brands. 
E)  shift to a more transactional focus.

Question 20

A study by the Aberdeen Group analyzed which segmentation bases were used by the 20 percent most profitable organizations of the 220 surveyed. Which segmentation base did these organizations use the most?

Accepted Answer

A)  behavioral 
B)  psychographic 
C)  geographic 
D)  demographic 
E)  product 
A)  behavioral 
B)  psychographic 
C)  geographic 
D)  demographic 
E)  product

Which of the following statements about market segmentation for organizational markets is most accurate?

The first step in segmenting and targeting markets that links customer needs to marketing actions is to

Explain the difference between marketing synergies and product synergies.

Figure 8-8 -The perceptual map in Figure 8-8 shows adult perceptions for beverages. Suppose a marketer is introducing a new beverage that is higher-than-average in nutrition and is intended for adults. It will probably be most useful to promote the drink as similar to what?

Samsung sells a variety of TVs, from simple and small ones to large smart TVs with Internet connectivity and 3-D technology. Customers prefer different features, so Samsung uses which type of segmentation variable based on their viewing preferences?

A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as a

Which of the following statements regarding when and how to segment markets is most accurate?

The primary focus of Zappos' initial market segmentation strategy was to sell

The ultimate criterion for an organization's marketing success is that ________ as a result of increased synergies.

Segmentation based on some observable actions or attitudes by prospective customers, such as what benefits they seek, as well as where, how frequently, and why they buy, is referred to as

The annual Street & Smith's Baseball magazine had exactly the same stories but with 15 different covers to appeal to baseball fans in 15 of the U.S. regions. What is the basis of its market segmentation strategy?

"For World Wide Web users who enjoy books, Amazon.com is a retail bookseller that provides instant access to over 1.1 million books as well as a combination of extraordinary convenience and low prices" is a ________ statement for Amazon.com in North America.

When compared to a multiple products, multiple market segments strategy, a one product, multiple market segment strategy

During its market segmentation process for the Nike LeBron X basketball shoe, which sells for more than $200 a pair, Nike decided to concentrate on affluent teens rather than members of high school basketball teams. This is an example of

To effectively position a product or brand, companies take four steps, including which of these?

A relatively homogeneous group of prospective buyers that results from the market segmentation process is referred to as

A market-product grid is a framework to relate the ________ to products offered or potential marketing actions by an organization.

Tony Hsieh's most important contribution at Zappos was to

A study by the Aberdeen Group analyzed which segmentation bases were used by the 20 percent most profitable organizations of the 220 surveyed. Which segmentation base did these organizations use the most?

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Developing New Products and Services

Managing Successful Products, Services, and Brands

Pricing Products and Services

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Implementing Interactive and Multichannel Marketing

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Filters

Exam 8: Market Segmentation, Targeting, and Positioning

Which of the following statements about market segmentation for organizational markets is most accurate?

The first step in segmenting and targeting markets that links customer needs to marketing actions is to

Explain the difference between marketing synergies and product synergies.

Figure 8-8 -The perceptual map in Figure 8-8 shows adult perceptions for beverages. Suppose a marketer is introducing a new beverage that is higher-than-average in nutrition and is intended for adults. It will probably be most useful to promote the drink as similar to what?

Samsung sells a variety of TVs, from simple and small ones to large smart TVs with Internet connectivity and 3-D technology. Customers prefer different features, so Samsung uses which type of segmentation variable based on their viewing preferences?

A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as a

Which of the following statements regarding when and how to segment markets is most accurate?

The primary focus of Zappos' initial market segmentation strategy was to sell

The ultimate criterion for an organization's marketing success is that ________ as a result of increased synergies.

Segmentation based on some observable actions or attitudes by prospective customers, such as what benefits they seek, as well as where, how frequently, and why they buy, is referred to as

The annual Street & Smith's Baseball magazine had exactly the same stories but with 15 different covers to appeal to baseball fans in 15 of the U.S. regions. What is the basis of its market segmentation strategy?

"For World Wide Web users who enjoy books, Amazon.com is a retail bookseller that provides instant access to over 1.1 million books as well as a combination of extraordinary convenience and low prices" is a ________ statement for Amazon.com in North America.

When compared to a multiple products, multiple market segments strategy, a one product, multiple market segment strategy

During its market segmentation process for the Nike LeBron X basketball shoe, which sells for more than $200 a pair, Nike decided to concentrate on affluent teens rather than members of high school basketball teams. This is an example of

To effectively position a product or brand, companies take four steps, including which of these?

A relatively homogeneous group of prospective buyers that results from the market segmentation process is referred to as

A market-product grid is a framework to relate the ________ to products offered or potential marketing actions by an organization.

Tony Hsieh's most important contribution at Zappos was to

A study by the Aberdeen Group analyzed which segmentation bases were used by the 20 percent most profitable organizations of the 220 surveyed. Which segmentation base did these organizations use the most?

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Developing New Products and Services

Managing Successful Products, Services, and Brands

Pricing Products and Services

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Implementing Interactive and Multichannel Marketing

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Filters