Question 1

Which of the following is the BEST example of a "generic market?"

Accepted Answer

A)  the meat market. 
B)  the minivan market. 
C)  the e-commerce market. 
D)  the beer market. 
E)  the "singles" entertaining market. 
A)  the meat market. 
B)  the minivan market. 
C)  the e-commerce market. 
D)  the beer market. 
E)  the "singles" entertaining market.

Question 2

Differentiating the marketing mix is important because:

Accepted Answer

A)  It can help the firm build a competitive advantage with a group of target customers. 
B)  It can help target customers to view the firm's position in the market as uniquely suited to their preferences and needs. 
C)  It can clarify the position the firm wants to achieve with customers. 
D)  It can contribute to better blending of marketing mix decisions to achieve desired objectives. 
E)  All of the above. 
A)  It can help the firm build a competitive advantage with a group of target customers. 
B)  It can help target customers to view the firm's position in the market as uniquely suited to their preferences and needs. 
C)  It can clarify the position the firm wants to achieve with customers. 
D)  It can contribute to better blending of marketing mix decisions to achieve desired objectives. 
E)  All of the above.

Question 3

In the seven-step approach, qualifying dimensions are identified in Step 3 but determining dimensions are not identified until Step 4.

Accepted Answer

A) True 
 B)False

Question 4

In the example for the 7-step approach (discussed in the text), an important determining need for the "resort seekers" is adult fun while the "family vacationers" want family fun.

Accepted Answer

A) True 
 B)False

Question 5

Unlike a generic market description, a product-market definition includes

Accepted Answer

A)  customer needs. 
B)  customer types. 
C)  geographic area. 
D)  product type. 
E)  organization chart. 
A)  customer needs. 
B)  customer types. 
C)  geographic area. 
D)  product type. 
E)  organization chart.

Question 6

In the seven-step approach, submarkets are nicknamed based on the determining dimensions and a description of the customer types.

Accepted Answer

A) True 
 B)False

Question 7

In the example for the 7-step approach (used in the text), it's useful to consider what people in each segment want, but it's useless to consider what they don't want because it will have no bearing on whether that segment is profitable for the firm.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements about the combined target market approach is True?

Accepted Answer

A)  Combiners develop several offerings and tailor them to the unique needs of several different segments. 
B)  Combiners try to extend their basic offering to satisfy customers from multiple segments with a single marketing mix. 
C)  Combiners may fall victim to an innovative segmenter that offers a more attractive marketing mix to a segment of the combined target market. 
D)  All of the above. 
E)  B and C only. 
A)  Combiners develop several offerings and tailor them to the unique needs of several different segments. 
B)  Combiners try to extend their basic offering to satisfy customers from multiple segments with a single marketing mix. 
C)  Combiners may fall victim to an innovative segmenter that offers a more attractive marketing mix to a segment of the combined target market. 
D)  All of the above. 
E)  B and C only.

Question 9

A "market" consists of:

Accepted Answer

A)  customers who are willing to exchange something of value. 
B)  a group of potential customers with similar needs. 
C)  sellers offering various ways of satisfying customer needs. 
D)  all of the above. 
E)  none of the above. 
A)  customers who are willing to exchange something of value. 
B)  a group of potential customers with similar needs. 
C)  sellers offering various ways of satisfying customer needs. 
D)  all of the above. 
E)  none of the above.

Question 10

A firm's "relevant market for finding opportunities":

Accepted Answer

A)  should be as large as possible. 
B)  should have no geographic limits. 
C)  should be no larger than its present product-market. 
D)  should always be named in product-related terms. 
E)  None of the above is a true statement. 
A)  should be as large as possible. 
B)  should have no geographic limits. 
C)  should be no larger than its present product-market. 
D)  should always be named in product-related terms. 
E)  None of the above is a true statement.

Question 11

Market segmentation applies only to consumer goods and services; it cannot be applied to business products.

Accepted Answer

A) True 
 B)False

Question 12

A complete product-market definition includes a four-part description comprising of all of the following except

Accepted Answer

A)  geographic area. 
B)  customer needs. 
C)  customer types. 
D)  product type. 
E)  marketing mix. 
A)  geographic area. 
B)  customer needs. 
C)  customer types. 
D)  product type. 
E)  marketing mix.

Question 13

______________ segmenting dimensions are those which actually affect a person's purchase of a specific product type or brand in a product-market.

Accepted Answer

A)  Operational 
B)  Qualifying 
C)  Customer-related 
D)  Determining 
E)  Situation-related 
A)  Operational 
B)  Qualifying 
C)  Customer-related 
D)  Determining 
E)  Situation-related

Question 14

Which of the following is NOT true of a product-market?

Accepted Answer

A)  Competing suppliers offer close substitutes to satisfy needs. 
B)  Customers in a product-market have very similar needs. 
C)  Very different types of products may compete for consumer dollars. 
D)  Naming product-markets includes consideration of where the customers are. 
E)  None of the above statements is true. 
A)  Competing suppliers offer close substitutes to satisfy needs. 
B)  Customers in a product-market have very similar needs. 
C)  Very different types of products may compete for consumer dollars. 
D)  Naming product-markets includes consideration of where the customers are. 
E)  None of the above statements is true.

Question 15

A producer of electrical components combined electrical supply wholesalers and manufacturers of electrical equipment into the same market segment--one of several segments it was targeting. Soon it lost the manufacturers' business to a competitor. It seems that the firm failed to consider the risk of

Accepted Answer

A)  too much aggregating. 
B)  insulting the manufacturers by putting them in the same market segment with the wholesalers. 
C)  picking market segments based on qualifying dimensions. 
D)  selecting market segments that were not substantial. 
E)  using too many segmenting dimensions. 
A)  too much aggregating. 
B)  insulting the manufacturers by putting them in the same market segment with the wholesalers. 
C)  picking market segments based on qualifying dimensions. 
D)  selecting market segments that were not substantial. 
E)  using too many segmenting dimensions.

Question 16

A generic market

Accepted Answer

A)  competitor might have only a tiny market share in the generic market but a large share in its product-market. 
B)  often includes consumers who will satisfy the same need in quite different ways. 
C)  often involves sellers who compete in different product-markets. 
D)  All of the above are true. 
E)  None of the above is true. 
A)  competitor might have only a tiny market share in the generic market but a large share in its product-market. 
B)  often includes consumers who will satisfy the same need in quite different ways. 
C)  often involves sellers who compete in different product-markets. 
D)  All of the above are true. 
E)  None of the above is true.

Question 17

The MOST USEFUL dimensions for segmenting markets are:

Accepted Answer

A)  geographic and demographic dimensions. 
B)  brand familiarity and consumption patterns. 
C)  social class. 
D)  benefits sought. 
E)  It depends on what product-market one is segmenting. 
A)  geographic and demographic dimensions. 
B)  brand familiarity and consumption patterns. 
C)  social class. 
D)  benefits sought. 
E)  It depends on what product-market one is segmenting.

Question 18

Regarding segmenting, as opposed to combining:

Accepted Answer

A)  Segmenting is usually a riskier approach than combining. 
B)  Segmenters try to satisfy consumers "very well" instead of "pretty well." 
C)  Segmenting limits a firm to smaller sales potential and lower profits. 
D)  A segmenter with limited resources may have to use the multiple target market approach instead of the single target market approach. 
E)  All of the above are true. 
A)  Segmenting is usually a riskier approach than combining. 
B)  Segmenters try to satisfy consumers "very well" instead of "pretty well." 
C)  Segmenting limits a firm to smaller sales potential and lower profits. 
D)  A segmenter with limited resources may have to use the multiple target market approach instead of the single target market approach. 
E)  All of the above are true.

Question 19

"Good" market segments are those that are:

Accepted Answer

A)  homogeneous between. 
B)  heterogeneous within. 
C)  operational and substantial. 
D)  international in nature. 
E)  All of the above. 
A)  homogeneous between. 
B)  heterogeneous within. 
C)  operational and substantial. 
D)  international in nature. 
E)  All of the above.

Question 20

When a customer orders a book at Amazon.com, the online retailer recommends related books that have been purchased by other customers who bought that book. Amazon is using a(n):

Accepted Answer

A)  aggregating approach. 
B)  CRM database. 
C)  clustering approach. 
D)  disaggregating approach. 
E)  generic market. 
A)  aggregating approach. 
B)  CRM database. 
C)  clustering approach. 
D)  disaggregating approach. 
E)  generic market.

Exam 4: Focusing Marketing Strategy With Segmentation and Positioning

Which of the following is the BEST example of a "generic market?"

Differentiating the marketing mix is important because:

In the seven-step approach, qualifying dimensions are identified in Step 3 but determining dimensions are not identified until Step 4.

In the example for the 7-step approach (discussed in the text), an important determining need for the "resort seekers" is adult fun while the "family vacationers" want family fun.

Unlike a generic market description, a product-market definition includes

In the seven-step approach, submarkets are nicknamed based on the determining dimensions and a description of the customer types.

In the example for the 7-step approach (used in the text), it's useful to consider what people in each segment want, but it's useless to consider what they don't want because it will have no bearing on whether that segment is profitable for the firm.

Which of the following statements about the combined target market approach is True?

A "market" consists of:

A firm's "relevant market for finding opportunities":

Market segmentation applies only to consumer goods and services; it cannot be applied to business products.

A complete product-market definition includes a four-part description comprising of all of the following except

______________ segmenting dimensions are those which actually affect a person's purchase of a specific product type or brand in a product-market.

Which of the following is NOT true of a product-market?

A generic market

The MOST USEFUL dimensions for segmenting markets are:

Regarding segmenting, as opposed to combining:

"Good" market segments are those that are:

When a customer orders a book at Amazon.com, the online retailer recommends related books that have been purchased by other customers who bought that book. Amazon is using a(n):

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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