Question 1

In the seven-step approach to market segmentation

Accepted Answer

A)  apartment buildings in cities with large student populations are the focus of the example. 
B)  homogeneous submarkets are immediately identified in Step 1. 
C)  the submarkets are nicknamed based on their qualifying needs. 
D)  profit is considered in all seven steps. 
E)  None of these is true. 
A)  apartment buildings in cities with large student populations are the focus of the example. 
B)  homogeneous submarkets are immediately identified in Step 1. 
C)  the submarkets are nicknamed based on their qualifying needs. 
D)  profit is considered in all seven steps. 
E)  None of these is true.

Question 2

The first step in market segmentation should be:

Accepted Answer

A)  deciding what new product you could develop. 
B)  evaluating what segment(s) you currently serve. 
C)  finding a demographic group likely to use your products. 
D)  listing features of your current products. 
E)  defining some broad product-markets where you may be able to operate profitably. 
A)  deciding what new product you could develop. 
B)  evaluating what segment(s) you currently serve. 
C)  finding a demographic group likely to use your products. 
D)  listing features of your current products. 
E)  defining some broad product-markets where you may be able to operate profitably.

Question 3

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 these alternatives 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 these alternatives are true.

Question 4

"Positioning" means using a map to show where a firm's products are distributed geographically.

Accepted Answer

A) True 
 B)False

Question 5

A firm's "relevant market for finding opportunities" should be bigger than the present product-market but not so large that it couldn't expand and still be an important competitor.

Accepted Answer

A) True 
 B)False

Question 6

A product-market segment is "operational" if it is big enough to be profitable to the firm.

Accepted Answer

A) True 
 B)False

Question 7

A determining dimension for segmenting markets actually affects the purchase of a specific brand in a product-market.

Accepted Answer

A) True 
 B)False

Question 8

The example for the seven-step approach (discussed in the text) uses small motels around a large city as its broad product-market.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements about market-oriented strategy planning is true?

Accepted Answer

A)  Segmenters aim at more heterogeneous markets than combiners. 
B)  Both "segmenters" and "combiners" can be target marketers. 
C)  All segmenters follow the single target market approach. 
D)  Combiners follow a mass marketing strategy. 
E)  None of these statements is true. 
A)  Segmenters aim at more heterogeneous markets than combiners. 
B)  Both "segmenters" and "combiners" can be target marketers. 
C)  All segmenters follow the single target market approach. 
D)  Combiners follow a mass marketing strategy. 
E)  None of these statements is true.

Question 10

Which of the following is a DEMOGRAPHIC segmenting dimension?

Accepted Answer

A)  Rate of use. 
B)  Brand familiarity. 
C)  Type of problem solving. 
D)  Benefits sought. 
E)  Family life cycle. 
A)  Rate of use. 
B)  Brand familiarity. 
C)  Type of problem solving. 
D)  Benefits sought. 
E)  Family life cycle.

Question 11

When you are "in the market" for a new car, and are considering different brands to purchase, what type of market is involved?

Accepted Answer

A)  Product-market 
B)  Qualifying market 
C)  Generic market 
D)  Determining market 
A)  Product-market 
B)  Qualifying market 
C)  Generic market 
D)  Determining market

Question 12

Coorgs Coffee, Inc., has substantial market share in South America but seeks growth. Its managers want to expand into North America and target cities with populations of 50,000-99,999. Identify the segmenting dimension most probably being used by Coorgs Coffee.

Accepted Answer

A)  Geographic 
B)  Behavioral 
C)  Urgency to get need satisfied 
D)  Demographic 
E)  Attitudes of consumers 
A)  Geographic 
B)  Behavioral 
C)  Urgency to get need satisfied 
D)  Demographic 
E)  Attitudes of consumers

Question 13

Clustering techniques

Accepted Answer

A)  help sellers fine-tune the marketing effort with information from a detailed customer database. 
B)  establish how customers think about proposed or present brands in a market. 
C)  try to find similar patterns within sets of data. 
D)  group customers into heterogeneous segments. 
E)  use intuition and judgment to do what previously was done by computers. 
A)  help sellers fine-tune the marketing effort with information from a detailed customer database. 
B)  establish how customers think about proposed or present brands in a market. 
C)  try to find similar patterns within sets of data. 
D)  group customers into heterogeneous segments. 
E)  use intuition and judgment to do what previously was done by computers.

Question 14

A generic market definition includes all of the following terms EXCEPT:

Accepted Answer

A)  customer needs. 
B)  product type. 
C)  geographic area. 
D)  customer type. 
A)  customer needs. 
B)  product type. 
C)  geographic area. 
D)  customer type.

Question 15

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 these alternatives 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 these alternatives is true.

Question 16

A cluster analysis of the "toothpaste market" would probably show that:

Accepted Answer

A)  the broad product-market can be served effectively with one marketing mix. 
B)  most consumers are mainly concerned about brightness of teeth. 
C)  factors such as taste, price, and "sex appeal" are not important. 
D)  different market segments seek different product benefits. 
E)  None of these alternatives is correct. 
A)  the broad product-market can be served effectively with one marketing mix. 
B)  most consumers are mainly concerned about brightness of teeth. 
C)  factors such as taste, price, and "sex appeal" are not important. 
D)  different market segments seek different product benefits. 
E)  None of these alternatives is correct.

Question 17

Quality Ceramic, Inc. (QCI) defined five submarkets within its broad product-market. To obtain some economies of scale, QCI decided NOT to offer each of the submarkets a different marketing mix. Instead, it selected two submarkets whose needs are fairly similar, and is counting on promotion and minor product differences to make its one basic marketing mix appeal to both submarkets. QCI is using the

Accepted Answer

A)  combined target market approach. 
B)  single target market approach. 
C)  multiple target market approach. 
D)  mass marketing approach. 
E)  None of these is a good choice for Quality Ceramic. 
A)  combined target market approach. 
B)  single target market approach. 
C)  multiple target market approach. 
D)  mass marketing approach. 
E)  None of these is a good choice for Quality Ceramic.

Question 18

Step 2 in the 7-step approach to market segmentation asks you to identify all the potential customers' needs for the broad product-market you named in Step 1.

Accepted Answer

A) True 
 B)False

Question 19

_____ refers to how customers think about proposed or present brands in a market.

Accepted Answer

A)  Differentiating 
B)  CRM 
C)  Clustering 
D)  Positioning 
E)  Dimensioning 
A)  Differentiating 
B)  CRM 
C)  Clustering 
D)  Positioning 
E)  Dimensioning

Question 20

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.

In the seven-step approach to market segmentation

The first step in market segmentation should be:

Regarding segmenting, as opposed to combining:

"Positioning" means using a map to show where a firm's products are distributed geographically.

A firm's "relevant market for finding opportunities" should be bigger than the present product-market but not so large that it couldn't expand and still be an important competitor.

A product-market segment is "operational" if it is big enough to be profitable to the firm.

A determining dimension for segmenting markets actually affects the purchase of a specific brand in a product-market.

The example for the seven-step approach (discussed in the text) uses small motels around a large city as its broad product-market.

Which of the following statements about market-oriented strategy planning is true?

Which of the following is a DEMOGRAPHIC segmenting dimension?

When you are "in the market" for a new car, and are considering different brands to purchase, what type of market is involved?

Coorgs Coffee, Inc., has substantial market share in South America but seeks growth. Its managers want to expand into North America and target cities with populations of 50,000-99,999. Identify the segmenting dimension most probably being used by Coorgs Coffee.

Clustering techniques

A generic market definition includes all of the following terms EXCEPT:

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

A cluster analysis of the "toothpaste market" would probably show that:

Step 2 in the 7-step approach to market segmentation asks you to identify all the potential customers' needs for the broad product-market you named in Step 1.

_____ refers to how customers think about proposed or present brands in a market.

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?

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

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

Promotionintroduction 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

Filters

Exam 4: Focusing Marketing Strategy With Segmentation and Positioning

In the seven-step approach to market segmentation

The first step in market segmentation should be:

Regarding segmenting, as opposed to combining:

"Positioning" means using a map to show where a firm's products are distributed geographically.

A firm's "relevant market for finding opportunities" should be bigger than the present product-market but not so large that it couldn't expand and still be an important competitor.

A product-market segment is "operational" if it is big enough to be profitable to the firm.

A determining dimension for segmenting markets actually affects the purchase of a specific brand in a product-market.

The example for the seven-step approach (discussed in the text) uses small motels around a large city as its broad product-market.

Which of the following statements about market-oriented strategy planning is true?

Which of the following is a DEMOGRAPHIC segmenting dimension?

When you are "in the market" for a new car, and are considering different brands to purchase, what type of market is involved?

Coorgs Coffee, Inc., has substantial market share in South America but seeks growth. Its managers want to expand into North America and target cities with populations of 50,000-99,999. Identify the segmenting dimension most probably being used by Coorgs Coffee.

Clustering techniques

A generic market definition includes all of the following terms EXCEPT:

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

A cluster analysis of the "toothpaste market" would probably show that:

Step 2 in the 7-step approach to market segmentation asks you to identify all the potential customers' needs for the broad product-market you named in Step 1.

_____ refers to how customers think about proposed or present brands in a market.

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?

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

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

Promotionintroduction 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

Filters