Question 1

A company's NAICS code, size, and years in business are analyzed with which possible base of market segmentation?

Accepted Answer

A)  Personal demographics 
B)  Urban demographics 
C)  Socioeconomics 
D)  Consumer lifestyles 
A)  Personal demographics 
B)  Urban demographics 
C)  Socioeconomics 
D)  Consumer lifestyles A

Question 2

Geographic demographics, personal demographics, and consumer lifestyles are three broad categories for segmenting consumers.

Accepted Answer

A) True 
 B)False  True

Question 3

a.	What are sales penetration and diminishing returns?
b. How are these concepts related?
c. What are the marketing implications of these concepts?

Accepted Answer

a. Sales penetration refers to the percentage of potential customers in a particular market that a company has been able to reach with its products or services. Diminishing returns, on the other hand, is a concept that describes the point at which the level of profits or benefits gained from an investment or effort starts to decrease as additional resources are added.

b. These concepts are related in the sense that sales penetration can lead to diminishing returns. As a company reaches a larger percentage of potential customers in a market, it becomes increasingly difficult to continue to grow sales at the same rate. This can result in diminishing returns as the company invests more resources into reaching the remaining customers, but sees a smaller and smaller increase in sales.

c. The marketing implications of these concepts are significant. Marketers need to be aware of the potential for diminishing returns as they seek to increase sales penetration. It may be necessary to adjust marketing strategies and tactics as the market becomes more saturated, and to focus on retaining existing customers rather than solely on acquiring new ones. Additionally, marketers should be mindful of the potential for diminishing returns when making decisions about resource allocation and investment in marketing efforts. It may be necessary to carefully evaluate the cost-effectiveness of additional marketing spend as sales penetration increases. Overall, understanding the relationship between sales penetration and diminishing returns is crucial for marketers in developing effective strategies for sustainable growth.

Question 4

A concentrated marketing strategy is generally more subject to the majority fallacy than an undifferentiated marketing strategy.

Accepted Answer

A) True 
 B)False

Question 5

Only final (and not organizational) consumers can be segmented on the basis of perceived risk.

Accepted Answer

A) True 
 B)False

Question 6

A firm seeking to satisfy the demand patterns of a small cluster in clustered demand is less likely to fall victim to the majority fallacy than a firm facing homogeneous demand.

Accepted Answer

A) True 
 B)False

Question 7

A globalized marketing mix is most appropriate when a demand pattern is homogeneous.

Accepted Answer

A) True 
 B)False

Question 8

Develop an appropriate marketing mix for a firm that plans to use a differentiated marketing strategy.

Accepted Answer

When developing a marketing mix for a fi

Question 9

Which target market approach is the most difficult to plan and to implement?

Accepted Answer

A)  Differentiated marketing 
B)  Concentrated marketing 
C)  Undifferentiated marketing 
D)  Mass marketing 
A)  Differentiated marketing 
B)  Concentrated marketing 
C)  Undifferentiated marketing 
D)  Mass marketing

Question 10

Which marketing strategy seeks to appeal to multiple consumer segments with a distinctive marketing strategy for each segment?

Accepted Answer

A)  Segmented marketing 
B)  Concentrated marketing 
C)  Differentiated marketing 
D)  Clustered marketing 
A)  Segmented marketing 
B)  Concentrated marketing 
C)  Differentiated marketing 
D)  Clustered marketing

Question 11

A small paint manufacturer produces paint that is specially formulated to be used with wrought iron railing and furniture that is placed outdoors. The company should be engaged in which target market approach?

Accepted Answer

A)  Differentiated marketing 
B)  Product differentiation 
C)  Concentrated marketing 
D)  Undifferentiated marketing 
A)  Differentiated marketing 
B)  Product differentiation 
C)  Concentrated marketing 
D)  Undifferentiated marketing

Question 12

Research conducted by a maker of exercise equipment indicates that individuals that purchase more than $400 worth of exercise equipment exercise more than five hours per week, are weight conscious, and are concerned with their health. The firm should utilize which segmentation base?

Accepted Answer

A)  Consumer lifestyles 
B)  The heavy-half theory 
C)  Personal demographics 
D)  Usage experience 
A)  Consumer lifestyles 
B)  The heavy-half theory 
C)  Personal demographics 
D)  Usage experience

Question 13

Product differentiation can be based on a real or perceived attribute.

Accepted Answer

A) True 
 B)False

Question 14

When sales penetration is high, diminishing returns are likely due to the difficulty in further increasing market share.

Accepted Answer

A) True 
 B)False

Question 15

Undifferentiated marketing is an especially popular technique for small firms.

Accepted Answer

A) True 
 B)False

Question 16

Which sales forecasting technique forecasts sales on the basis of recent or current sales performance?

Accepted Answer

A)  Consumer surveys 
B)  A jury of executive opinion 
C)  The chain-ratio method 
D)  Simple trend analysis 
A)  Consumer surveys 
B)  A jury of executive opinion 
C)  The chain-ratio method 
D)  Simple trend analysis

Question 17

A copier marketer has organized its sales force on a market basis with a separate sales force for manufacturers, retailers, and the government. Its strategy is based on

Accepted Answer

A)  benefit segmentation. 
B)  geographic segmentation. 
C)  the heavy-half theory. 
D)  personal demographics. 
A)  benefit segmentation. 
B)  geographic segmentation. 
C)  the heavy-half theory. 
D)  personal demographics.

Question 18

Geographic demographics, personal demographics, and consumer lifestyles are

Accepted Answer

A)  heavy-half segmentation bases. 
B)  target market approaches. 
C)  possible bases of segmentation. 
D)  VALS-based approaches to segmentation. 
A)  heavy-half segmentation bases. 
B)  target market approaches. 
C)  possible bases of segmentation. 
D)  VALS-based approaches to segmentation.

Question 19

In differentiated marketing, one market segment can be a mass market and the other can be a niche market.

Accepted Answer

A) True 
 B)False

Question 20

When evaluating new locations, a major toy retailer specifies that the area must have at least 400,000 people, an urban or suburban location, and a site available near a major shopping mall. This strategy involves segmentation on the basis of personal demographics.

Accepted Answer

A) True 
 B)False

Exam 10: Developing a Target Market Strategy

A company's NAICS code, size, and years in business are analyzed with which possible base of market segmentation?

Geographic demographics, personal demographics, and consumer lifestyles are three broad categories for segmenting consumers.

a. What are sales penetration and diminishing returns? b. How are these concepts related? c. What are the marketing implications of these concepts?

A concentrated marketing strategy is generally more subject to the majority fallacy than an undifferentiated marketing strategy.

Only final (and not organizational) consumers can be segmented on the basis of perceived risk.

A firm seeking to satisfy the demand patterns of a small cluster in clustered demand is less likely to fall victim to the majority fallacy than a firm facing homogeneous demand.

A globalized marketing mix is most appropriate when a demand pattern is homogeneous.

Develop an appropriate marketing mix for a firm that plans to use a differentiated marketing strategy.

Which target market approach is the most difficult to plan and to implement?

Which marketing strategy seeks to appeal to multiple consumer segments with a distinctive marketing strategy for each segment?

A small paint manufacturer produces paint that is specially formulated to be used with wrought iron railing and furniture that is placed outdoors. The company should be engaged in which target market approach?

Research conducted by a maker of exercise equipment indicates that individuals that purchase more than $400 worth of exercise equipment exercise more than five hours per week, are weight conscious, and are concerned with their health. The firm should utilize which segmentation base?

Product differentiation can be based on a real or perceived attribute.

When sales penetration is high, diminishing returns are likely due to the difficulty in further increasing market share.

Undifferentiated marketing is an especially popular technique for small firms.

Which sales forecasting technique forecasts sales on the basis of recent or current sales performance?

A copier marketer has organized its sales force on a market basis with a separate sales force for manufacturers, retailers, and the government. Its strategy is based on

Geographic demographics, personal demographics, and consumer lifestyles are

In differentiated marketing, one market segment can be a mass market and the other can be a niche market.

When evaluating new locations, a major toy retailer specifies that the area must have at least 400,000 people, an urban or suburban location, and a site available near a major shopping mall. This strategy involves segmentation on the basis of personal demographics.

Marketing Today

The Environment in Which Marketing Operates

Developing and Enacting Strategic Marketing Plans

Information for Marketing Decisions

Societal, Ethical, and Consumer Issues

Global Aspects of Marketing

Marketing and the Internet

Final Consumers

Organizational Consumers

Basic Concepts in Product Planning

Goods Versus Services Marketing

Conceiving, Developing, and Managing Products

Value Chain Management and Logistics

Wholesaling

Retailing

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Considerations in Price Planning

Developing and Applying a Pricing Strategy

Pulling It All Together: Integrating and Analyzing the Marketing Plan

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