Question 1

The 7-step approach to market segmentation used in the text shows that:

Accepted Answer

A)  determining needs rarely change. 
B)  profit is the overall consideration beginning with Step 1. 
C)  it's useful to consider what people in each submarket do NOT want as well as what they do want. 
D)  submarkets are nicknamed based on their qualifying needs. 
E)  retirement centers in the Sunbelt is a broad product-market with many submarkets. 
A)  determining needs rarely change. 
B)  profit is the overall consideration beginning with Step 1. 
C)  it's useful to consider what people in each submarket do NOT want as well as what they do want. 
D)  submarkets are nicknamed based on their qualifying needs. 
E)  retirement centers in the Sunbelt is a broad product-market with many submarkets.

Question 2

The seven-step approach to segmenting product-markets (discussed in the text) helps expand from a narrow set of opportunities to a broader target market and marketing strategy.

Accepted Answer

A) True 
 B)False

Question 3

The first step in segmenting international markets is to:

Accepted Answer

A)  develop a marketing mix. 
B)  treat all the countries in the "foreign market" as one segment. 
C)  segment by country or region--looking at demographic, cultural, and other characteristics. 
D)  list the suppliers who serve the market. 
E)  consider the number, size, kind, and location of business and organizational customers. 
A)  develop a marketing mix. 
B)  treat all the countries in the "foreign market" as one segment. 
C)  segment by country or region--looking at demographic, cultural, and other characteristics. 
D)  list the suppliers who serve the market. 
E)  consider the number, size, kind, and location of business and organizational customers.

Question 4

Brainstorming is an important part of the _________ step in the seven-step approach for segmenting product-markets.

Accepted Answer

A)  "Identifying the determining dimensions" 
B)  "Identifying potential customers' needs" 
C)  "Forming homogeneous submarkets" 
D)  "Select the broad product-market" 
E)  "Estimate size of each product-market segment" 
A)  "Identifying the determining dimensions" 
B)  "Identifying potential customers' needs" 
C)  "Forming homogeneous submarkets" 
D)  "Select the broad product-market" 
E)  "Estimate size of each product-market segment"

Question 5

A generic market description should NOT include any:

Accepted Answer

A)  customer needs. 
B)  geographic area. 
C)  product type. 
D)  customer types. 
E)  none of the above. 
A)  customer needs. 
B)  geographic area. 
C)  product type. 
D)  customer types. 
E)  none of the above.

Question 6

Which of the following statements about market segmentation is NOT TRUE?

Accepted Answer

A)  It starts by segmenting broad product-markets. 
B)  It involves naming broad product-markets. 
C)  A market grid with submarkets can be a visual aid to market segmentation. 
D)  It segments broad product-markets in order to develop suitable marketing mixes. 
E)  First-time market segmentation efforts often fail. 
A)  It starts by segmenting broad product-markets. 
B)  It involves naming broad product-markets. 
C)  A market grid with submarkets can be a visual aid to market segmentation. 
D)  It segments broad product-markets in order to develop suitable marketing mixes. 
E)  First-time market segmentation efforts often fail.

Question 7

Effective market segmentation is a two-step process that starts with naming broad product-markets and then goes on to segmenting these broad product-markets into more homogeneous submarkets.

Accepted Answer

A) True 
 B)False

Question 8

Positioning analysis may lead a firm to segmenting, rather than combining.

Accepted Answer

A) True 
 B)False

Question 9

Product type describes the goods and/or services that customers want.

Accepted Answer

A) True 
 B)False

Question 10

"Good" market segments should be homogeneous (similar) within, heterogeneous (different) between, substantial, and operational.

Accepted Answer

A) True 
 B)False

Question 11

The definition of a product-market includes a product type while the definition of a generic market does not include a product type.

Accepted Answer

A) True 
 B)False

Question 12

The customer type component of the product-market should include:

Accepted Answer

A)  the buyer of the product 
B)  the type of good and service 
C)  the user of the product 
D)  the geographic area where customers live 
E)  all of the above should be in the customer type. 
A)  the buyer of the product 
B)  the type of good and service 
C)  the user of the product 
D)  the geographic area where customers live 
E)  all of the above should be in the customer type.

Question 13

______________ is the process of naming broad product-markets and then segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.

Accepted Answer

A)  Market positioning 
B)  Market segmentation 
C)  Mass marketing 
D)  Diversification 
E)  Strategic planning 
A)  Market positioning 
B)  Market segmentation 
C)  Mass marketing 
D)  Diversification 
E)  Strategic planning

Question 14

Segmenting in international markets can be more challenging than segmenting in domestic markets because:

Accepted Answer

A)  There is less diversity in the key segmenting dimensions. 
B)  There is often more data available about key segmenting dimensions. 
C)  Critical data is often less available and less dependable. 
D)  All of the above. 
E)  None of the above. 
A)  There is less diversity in the key segmenting dimensions. 
B)  There is often more data available about key segmenting dimensions. 
C)  Critical data is often less available and less dependable. 
D)  All of the above. 
E)  None of the above.

Question 15

Given its interest in the broad product-market for "ready-to-eat, health-conscious snack foods," which of the following should the GoodHealth Foods Co. do FIRST?

Accepted Answer

A)  Develop a plan for getting support from intermediaries. 
B)  Develop each of the four Ps at the same time. 
C)  Segment the product-market to try to identify homogeneous submarkets and select an attractive target market. 
D)  Determine whether to compete on a price basis. 
E)  Decide what low-fat product or products it will offer. 
A)  Develop a plan for getting support from intermediaries. 
B)  Develop each of the four Ps at the same time. 
C)  Segment the product-market to try to identify homogeneous submarkets and select an attractive target market. 
D)  Determine whether to compete on a price basis. 
E)  Decide what low-fat product or products it will offer.

Question 16

A positioning analysis is a product-oriented approach.

Accepted Answer

A) True 
 B)False

Question 17

Segmenting:

Accepted Answer

A)  is essentially a disaggregating or "break it down" process. 
B)  assumes that all customers can be grouped into homogeneous and profitable market segments. 
C)  tries to aggregate together individuals who have similar needs and characteristics. 
D)  usually results in firms aiming at smaller and less profitable markets. 
E)  assumes that each individual should be treated as a separate target market. 
A)  is essentially a disaggregating or "break it down" process. 
B)  assumes that all customers can be grouped into homogeneous and profitable market segments. 
C)  tries to aggregate together individuals who have similar needs and characteristics. 
D)  usually results in firms aiming at smaller and less profitable markets. 
E)  assumes that each individual should be treated as a separate target market.

Question 18

Customer types

Accepted Answer

A)  should be defined by identifying the buyer instead of the user. 
B)  should be assigned a nickname that describes all potential types of customers. 
C)  must always consider intermediaries even if they are not final users. 
D)  refers to the final consumer or user of a product type. 
E)  none of the above. 
A)  should be defined by identifying the buyer instead of the user. 
B)  should be assigned a nickname that describes all potential types of customers. 
C)  must always consider intermediaries even if they are not final users. 
D)  refers to the final consumer or user of a product type. 
E)  none of the above.

Question 19

The 7-step approach to market segmentation used in the text shows that:

Accepted Answer

A)  qualifying needs can logically be identified once the determining needs are known. 
B)  profit is the overall consideration beginning with Step 1. 
C)  it's useless to consider what people in each submarket do not want when so much is known about what they do want. 
D)  submarkets are nicknamed based on their determining needs. 
E)  recreational vehicles in the U.S. is a broad product-market with many submarkets. 
A)  qualifying needs can logically be identified once the determining needs are known. 
B)  profit is the overall consideration beginning with Step 1. 
C)  it's useless to consider what people in each submarket do not want when so much is known about what they do want. 
D)  submarkets are nicknamed based on their determining needs. 
E)  recreational vehicles in the U.S. is a broad product-market with many submarkets.

Question 20

"Good" market segments should be heterogeneous within and homogeneous between.

Accepted Answer

A) True 
 B)False

Exam 4: Focusing Marketing Strategy With Segmentation and Positioning

The 7-step approach to market segmentation used in the text shows that:

The seven-step approach to segmenting product-markets (discussed in the text) helps expand from a narrow set of opportunities to a broader target market and marketing strategy.

The first step in segmenting international markets is to:

Brainstorming is an important part of the _________ step in the seven-step approach for segmenting product-markets.

A generic market description should NOT include any:

Which of the following statements about market segmentation is NOT TRUE?

Effective market segmentation is a two-step process that starts with naming broad product-markets and then goes on to segmenting these broad product-markets into more homogeneous submarkets.

Positioning analysis may lead a firm to segmenting, rather than combining.

Product type describes the goods and/or services that customers want.

"Good" market segments should be homogeneous (similar) within, heterogeneous (different) between, substantial, and operational.

The definition of a product-market includes a product type while the definition of a generic market does not include a product type.

The customer type component of the product-market should include:

______________ is the process of naming broad product-markets and then segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.

Segmenting in international markets can be more challenging than segmenting in domestic markets because:

Given its interest in the broad product-market for "ready-to-eat, health-conscious snack foods," which of the following should the GoodHealth Foods Co. do FIRST?

A positioning analysis is a product-oriented approach.

Segmenting:

Customer types

The 7-step approach to market segmentation used in the text shows that:

"Good" market segments should be heterogeneous within and homogeneous between.

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Demographic Dimensions of Global Consumer Markets

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers,wholesalers,and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Implementing and Controlling Marketing Plans: Evolution and Revolution

Managing Marketings Link With Other Functional Areas

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Economics Fundamentals

Marketing Arithmetic

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