Exam 6: Sharpen the Focus: Target Marketing Strategies and Customer Relationship

Many marketing experts advocate ________ programs that allow a company to talk to individual customers and adjust elements of the marketing mix to satisfy the specific needs of each customer.

The ________ is the potential profit generated by a single customer's purchase of a firm's products over the customer's lifetime.

Baby boomers ________.

Which of the following is the most accurate generalization of members of Generation Y?

The cosmetics giant L'Oreal offers several product lines at a variety of prices.It targets the luxury market with its brand Helena Rubinstein, while less expensive offerings such as Elseve are targeted to large department stores and discounters.Is this practice a differentiated targeting strategy or an undifferentiated targeting strategy? Explain your answer.

Which of the following statements about the steps in the target marketing process is true?

The direct cause of market fragmentation is the large number of new products introduced annually.

Demographic variables are so frequently used in market segmentation because they ________.

A soup company found its canned nacho cheese sauce was too hot for Americans in the East and not hot enough for those in the West and the Southwest.As a result, the company's plants in Texas and California produce a hotter nacho cheese sauce than is produced in its other plants.The company is using ________ segmentation.

A building supply company has many high-volume customers and many low-volume customers.A CRM system would be LEAST likely to help the company management decide to use which of the following methods for communicating with low-volume customers?

A CRM strategy allows a company to identify its best customers, stay on top of their needs, and increase their satisfaction.

Which of the following most accurately describes VALS?

Honor, a market researcher for a packaged goods company, is segmenting a population of consumers based on how frequently they buy different types of packaged goods.Honor is using behavioral segmentation.

After segmentation, the customer group selected by a firm is referred to as the target market.

People who are regular visitors to SyFy.com (a Web site maintained by a science fiction cable network) and those who are regular visitors to BHG.com (a Web site maintained by the producers of BHG-TV and the publishers of a women's magazine) belong to different ________ segments.

Favorite Memories is a small company that specializes in serving women over the age of 50 who are special occasion gift shoppers overlooked by major competitors.Which of the following best describes Favorite Memories' market targeting strategy?

Compare and contrast the concepts of lifetime value of a customer and customer equity.

________ variables segment markets in terms of shared activities, interests, and opinions.

Airlines have developed frequent-flyer programs to encourage passengers to use the same airlines repeatedly.These programs and other similar ones use ________ segmentation to target their markets.

Marketers often use generational marketing because members of a generation tend to share the same ________.