Deck 9: Market Segmentation, Targeting, and Positioning

Question 1

Market segmentation attempts to isolate traits that distinguish a certain group of consumers from the overall market.

Answer 1

True

Question 2

Division of the total market into smaller, relatively homogeneous groups is known as market optimization.

Answer 2

False

Question 3

Families, bachelors, and retirees could be considered separate market segments for a company promoting travel packages.

Answer 3

True

Question 4

Automobile manufacturers and food processing companies typically segment a particular geographic region based on the same factors.

Question 5

Not-for-profit organizations practice market segmentation.

Question 6

Firms often purchase legal services from external consultants. However, as this does not directly contribute to the firm's production activities, legal services cannot be considered a business product.

Question 7

Division of an overall market into homogeneous groups based on their locations constitutes socioeconomic segmentation.

Question 8

Since rubber purchased by Goodyear is utilized to manufacture tires that are ultimately used by consumers for their automobiles, rubber is a consumer product for Goodyear.

Question 9

The target market for a product is the specific segment of consumers most likely to purchase that particular product.

Question 10

Marketers rarely encounter differences among members of a target group, as they segment potential consumers into homogeneous groups.

Question 11

A market includes any person or entity that has the willingness and the purchasing power to buy a product.

Question 12

Typically, a single marketing mix strategy attracts all sectors of a market.

Question 13

Business products contribute directly or indirectly to the production of other goods and services for resale.

Question 14

A hotel purchases towels for use in its rooms. In this context, these towels will be considered business products.

Question 15

Geographic indicators such as job growth give useful guidance to marketers, depending on the type of products they sell.

Question 16

Detergent packets purchased by a leading laundry service are considered business products.

Question 17

Raw silk is an example of a consumer product.

Question 18

Products bought by ultimate customers for personal use are known as consumer products.

Question 19

Items can be classified as business products, not because of what they are, but because of how they will be used.

Question 20

Firms must attempt to group consumers according to the presence or absence of those factors that affect purchase decisions.

Question 21

Psychographic segmentation helps marketers to gain a sharper insight into consumer purchasing behavior.

Question 22

Concentrated marketing is also known as niche marketing.

Question 23

A positioning map provides a valuable tool to help managers position products by graphically illustrating consumers' perceptions of competing products within an industry.

Question 24

Most magazines can be successfully marketed to consumers through mass marketing strategies.

Question 25

Niche marketing is best suited for firms that offer highly specialized goods and services.

Question 26

Placing a product at a certain point or location within a market in the minds of prospective buyers is known as market mapping.

Question 27

Concentrated marketing strategy ties a firm's growth to a specific market segment.

Question 28

Psychographic segmentation divides a population into groups with similar values and lifestyles.

Question 29

Children exert considerable influence over household food purchases such as cereal.

Question 30

Up & Away Flying Corporation recently began manufacturing drones. If they have a limited advertising budget, concentrated marketing would be the ideal marketing strategy for this firm.

Question 31

The market segmentation that is based on the stages of the family lifecycle is a form of demographic segmentation.

Question 32

If a company markets a consumer product, such as toilet paper, in bulk quantities to the entire market, it is involved in micromarketing.

Question 33

Geographic segmentation provides useful distinctions when regional preferences or needs exist.

Question 34

"For the same dollars that you spend on a no-frills ticket to Los Angeles, fly Business Class with us!" is the advertising statement issued by FlyHigh Airlines. It represents an attempt by FlyHigh Airlines to position itself with respect to its competitors.

Question 35

Psychographic segmentation is the most common method of market segmentation.

Question 36

Dividing an overall market into homogeneous groups based on gender and age would constitute demographic segmentation.

Question 37

Married couples enter the "empty nest" stage once their children are grown.

Question 38

Psychographic segmentation involves segmenting the consumers on the basis of the benefits they seek from a product.

Question 39

A company that practices differentiated marketing can generate more sales compared to those generated by undifferentiated marketing.

Question 40

Home Depot introduced a new line of riding lawn mowers. The company decided to focus more on people living in the suburbs than those in the city because a survey showed the former category to be more inclined toward gardening. This is an example of a demographic segmentation by Home Depot.

Question 41

If a company markets its breakfast cereal to children, it is using _____ segmentation to segment its markets.

A) psychographic
B) demographic
C) end-use
D) geographic

Question 42

Segmentation by benefits sought is a product-related segmentation approach that:

A) determines the marketer's effectiveness in satisfying the consumer.
B) measures brand loyalty and consumer perception.
C) reevaluates customer reactions post-consumption.
D) focuses on the attributes that people seek in a product.

Question 43

The "empty nest" stage in the family lifecycle includes:

A) young unmarried people.
B) married couples whose children are living on their own.
C) married couples with children in their growing years.
D) newly married couples without children.

Question 44

Which of the following segmentation approaches is most likely to help marketers quantify aspects of consumers' personalities and lifestyles to create goods and services for a target market?

A) Psychographic segmentation
B) Demographic segmentation
C) Geographic segmentation
D) Product-based segmentation

Question 45

The division of the total market into smaller, homogenous groups is called _____.

A) customer aggregation
B) market capitalization
C) market segmentation
D) brand segmentation

Question 46

Which of the following is a basic requirement for effective market segmentation?

A) The firm must avoid focusing on the consumer-dependent variable, such as discretionary income, while conducting market segmentation.
B) The market segment must present measurable purchasing power and size.
C) The company must expand beyond its marketing capabilities to capture those market segments that have reached the maturity stage in the product life cycle.
D) The company must target a large number of small market segments so that they can develop effective strategies to appeal to them.

Question 47

The lumber that a carpenter purchases to make a table for a customer can be classified as a(n):

A) impulse product.
B) business product.
C) consumer good.
D) final product.

Question 48

_____ defines consumer groups according to variables such as gender, age, income, occupation, education, sexual orientation, household size, and stage in the family lifecycle.

A) Geographic segmentation
B) End-use segmentation
C) Product-based segmentation
D) Demographic segmentation

Question 49

Lululemon Athletica, which specializes in athletic wear for women, recently launched a website featuring Ivivva, a new line of athletic and dance clothing for girls. Based on the information given in this example, Lululemon Athletica is using _____ segmentation to segment its markets.

A) geographic
B) psychographic
C) demographic
D) core based

Question 50

Kyle plans to buy new tires for a car that his family uses for camping trips. These tires are of the same type like those that are used on General Motors commercial trucks and can be purchased from Industrial Tire Company. The tires that Kyle will buy for his car can be classified as _____ products.

A) business
B) service
C) MRO
D) consumer

Question 51

Iron ore and raw cotton are examples of:

A) personal products.
B) shopping products.
C) impulse products.
D) business products.

Question 52

_____ are goods and services purchased for use either directly or indirectly in the production of other goods and services for resale.

A) Impulse goods
B) Shopping goods
C) Business products
D) Unsought products

Question 53

A firm that divides its customers into homogeneous groups based on their locations is said to be practicing _____ segmentation.

A) psychographic
B) product-based
C) geographic
D) demographic

Question 54

The most common method of market segmentation is:

A) product-based segmentation.
B) demographic segmentation.
C) economic segmentation.
D) psychographic segmentation.

Question 55

When a product is used in the production of another good that is destined for resale, the product is considered as a(n):

A) consumer product.
B) business product.
C) end product.
D) used product.

Question 56

Goods and services purchased by the ultimate consumer for personal use are called _____ products.

A) business
B) primary
C) consumer
D) secondary

Question 57

Psychographic segmentation divides a population into groups based on:

A) their use of the product.
B) their income and expenditure patterns.
C) their geographic location.
D) their attitudes, values, and lifestyles.

Question 58

A technology company that makes computers for professional use is trying to segment its customers. The company asked some professional computer users to evaluate the importance of various computer attributes that influence their purchase decisions and then used this data to segment the consumers based on similar response patterns. This is an example of segmentation by:

A) brand loyalty.
B) usage rates.
C) expenditure pattern.
D) benefits sought.

Question 59

Frequent flyer programs are often used by airlines to encourage consumers to make repeat purchases since members can earn free trips based on their accumulated points are an example of _____.

A) segmentation by benefits sought
B) brand loyalty segmentation
C) psychographic segmentation
D) socioeconomic segmentation

Question 60

The determination of whether pencils are consumer products or business products is based on:

A) the purpose for which the pencils are purchased.
B) the number of pencils purchased.
C) the place where the pencils are purchased.
D) the total price paid for the pencils.

Question 61

A consumer goods company segments its markets on the basis of purchase patterns of their customers. The company groups its consumers who regularly buy their product into heavy, moderate, and light users, and nonusers. This segmentation approach is an example of _____.

A) segmentation by benefits sought
B) geographic segmentation
C) segmentation by usage rates
D) distributive segmentation

Question 62

The product-related segmentation of consumers based on the strength of their attachment and allegiance to their preferred products is called _____ segmentation.

A) values and lifestyles
B) business-to-business
C) psychographic
D) brand loyalty

Question 63

A _____ marketing strategy focuses on producing several products and pricing, promoting, and distributing them with several marketing mixes designed to satisfy smaller segments.

A) mass
B) differentiated
C) societal
D) demographic

Question 64

Differentiate between a consumer product and a business product. Give examples.

Question 65

Compared to undifferentiated marketing, the firm that practices differentiated marketing may generally expect:

A) less sales by segment.
B) lower total production costs.
C) greater promotional costs.
D) lower inventory costs.

Question 66

Undifferentiated marketing is also called _____.

A) societal marketing
B) micro marketing
C) concentrated marketing
D) mass marketing

Question 67

Placing a product at a certain point or location within a market in the minds of prospective buyers is known as _____.

A) positioning
B) social referencing
C) value engineering
D) optimizing

Question 68

Oscar Mayer, a maker of various meat products, introduced Lunchables, a product specifically aimed at children. This is an example of:

A) undifferentiated marketing.
B) differentiated marketing.
C) mass marketing.
D) micromarketing.

Question 69

The marketing strategy that focuses on producing a single product and marketing it to all customers is called:

A) concentrated marketing.
B) micromarketing.
C) mass marketing.
D) differentiated marketing.

Question 70

Starbucks marketing itself as "premium coffee" beverage retailer is an example of a positioning strategy based on _____.

A) product class
B) product users
C) product life cycle stage
D) product homogeneity

Question 71

A positioning map:

A) is used primarily by companies utilizing undifferentiated marketing strategies.
B) can be used only for already successful products in the market.
C) shows how consumers view a product relative to competitive products.
D) outlines how to introduce a new product to the marketplace.

Question 72

Which of the following products would be the best choice to be marketed using an undifferentiated marketing strategy?

A) Luxury automobiles
B) Healthy snack foods
C) Table salt
D) Imported wine

Question 73

A company that chooses to focus its efforts on satisfying only one market segment for profit is using a(n) _____ strategy.

A) niche marketing
B) societal marketing
C) undifferentiated marketing
D) mass marketing

Question 74

Marketers applying a positioning strategy want to:

A) make their product look as much like the market leader as possible.
B) emphasize a product's unique advantages and differentiate it from competitors' options.
C) identify the different product attributes desired by different market segments.
D) target only the loyal users of the product.

Question 75

The latest ad of Crest toothpaste says "Crest is a cavity fighter." This is an example of a positioning strategy based on:

A) product price/quality.
B) product homogeneity.
C) product application.
D) product users.

Question 76

American Express, a large firm with many financial products, recently introduced two new credit cards designed for very specific markets: The Knot, for engaged couples, and The Nest, for newlyweds. This is an example of _____ marketing.

A) undifferentiated
B) differentiated
C) mass
D) societal

Question 77

An undifferentiated marketing strategy:

A) involves developing different marketing mixes for different segments.
B) benefits from the control and efficiency of short production runs.
C) is also known as a concentrated marketing strategy.
D) is efficient from a production point of view.

Question 78

The tagline used by Blue Jet cleaners, "Pay for Performance," is an example of a positioning strategy that is based on _____.

A) product homogeneity
B) product users
C) price/quality
D) competitors

Question 79

The tagline used by Walmart, "Save money. Live better" is an example of a positioning strategy that is based on _____.

A) quality
B) attributes
C) product users
D) competitors

Question 80

Explain how each product listed below can be classified as either a consumer and/or business product.
1.Shampoo
2.Steel bars for concrete reinforcement
3.Lawn mower
4.Computer
5.Automobile