Deck 9: Market Segmentation, Targeting, and Positioning

Question 1

Market segmentation is

A) the philosophy that to do a truly excellent job of marketing, a company should concentrate on only one customer segment at a time.
B) sorting prospective buyers into groups that are willing to pay more than the cost of production for a good or service.
C) disaggregating prospective buyers from groups into segments of one (individuals) and then creating specific products that will satisfy this person's unique needs.
D) aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.
E) the belief that it is possible to satisfy every customer's needs if you can identify the correct segment within which they belong.

Answer 1

D

Question 2

To be identified as a market segment, members of the group must

A) be similar in terms of their consumption behavior.
B) represent a large share of the entire market and have buying power.
C) have diverse needs and have potential for future growth.
D) have diverse needs and be willing and able to purchase the product.
E) have the potential for future growth and increased profit or ROI.

Answer 2

A

Question 3

Market segments are

A) the relatively heterogeneous groups of prospective buyers that result from the market segmentation process.
B) all buyers of a product or service who have previously purchased a particular firm's products or services and who intend to repeat that purchase sometime in the future.
C) the smallest number of buyers that have similar needs but do not react similarly in a buying situation.
D) the relatively homogenous groups of prospective buyers that result from the market segmentation process.
E) all potential buyers of a product or service who intend to purchase a firm's products or services but who have not yet done so.

Answer 3

D

Question 4

According to Tony Hsieh, CEO of Zappos, the company devotes the greatest amount of time to

A) seeking new and unusual styles of shoes from all over the world.
B) improving the website to make it faster, more interesting, and fun.
C) seeking new markets that will go beyond the Internet.
D) finding the fastest and least expensive modes of delivery for its products.
E) finding ways to improve customer service levels.

Question 5

Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is

A) consumer differentiation.
B) psychographics.
C) market segmentation.
D) market delineation.
E) aggregation marketing.

Question 6

Market segmentation involves aggregating prospective buyers into groups that have common needs and will

A) pay attention to marketing messages.
B) respond similarly to a marketing action.
C) be responsive to marketing research.
D) use the same payment methods.
E) comply with the organization's core values.

Question 7

Market segmentation stresses ________ and relating them to specific marketing actions.

A) aligning tasks to match competitor tactics
B) grouping people according to similar needs
C) dividing people within a market randomly into equally sized groups
D) dividing people into the smallest groups possible
E) identifying potential new buyers who are not yet familiar with a new product

Question 8

A relatively homogenous group of prospective buyers that results from the market segmentation process is

A) a market segment.
B) a target market.
C) a customer base.
D) an ultimate consumer.
E) a preferred customer.

Question 9

A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products is referred to as

A) market penetration.
B) points of difference.
C) market differentiation.
D) product positioning.
E) product differentiation.

Question 10

Recently Colgate-Palmolive introduced Colgate Enamel Health toothpaste, one that claims to replenish and polish tooth enamel, the hard outer layer of the tooth that provides a protective barrier to inner layers. This new formula helps to separate the Colgate product from its top competitors, such as Crest. What marketing strategy did Colgate-Palmolive use here?

A) product differentiation
B) product segmentation
C) market expansion
D) usage segmentation
E) psychographic segmentation

Question 11

Tony Hsieh, CEO of Zappos, offers up to $5,000 to anyone who

A) identifies a completely new market segment with a product to match it.
B) finds a way of improving service to online customers.
C) takes the customer-loyalty training class and decides to quit anyway.
D) finds a shoe-related product that Zappos does not already carry.
E) creates a humorous theme for one of the monthly company meetings.

Question 12

Zappos provides value to its customers by

A) offering the best selection of shoes and the best service to online shoppers.
B) designing shoes for every type of occasion.
C) dividing all their customers into two distinct segments: people shopping for low price and people shopping for style.
D) offering the best access to fashionable shoes through multiple channels of distribution.
E) maintaining the simplest method of pricing to make the purchase process easy.

Question 13

Which of the following statements about Zappos is most accurate?

A) Zappos limits its inventory to a selection of high-end fashion footwear.
B) Zappos makes recommendations for purchases based on past ones and even the device being used to shop.
C) Zappos can guarantee overnight shipping to all its customers because they know ahead of time what they will be charged for express service.
D) Zappos is so successful because it has chosen a single mission to "sell shoes and only shoes."
E) Zappos offers a 30/60/90 return policy whereby refunds are based on how long you have had the shoes.

Question 14

Small athletic shoe manufacturers such as Vans target niche markets like street culture or action sports enthusiasts, making shoes designed to satisfy the needs of these different specific groups of customers. This strategy is an example of

A) market segmentation.
B) mass customization.
C) customized manufacturing.
D) single chain marketing.
E) market specific selection.

Question 15

Google's Pixel 4 smartphone has advanced motion sensors that allow a user to skip songs, snooze alarms and silence phone calls by waving rather than touching. This sets the smartphone apart from its competitors and is part of Google's ________ strategy.

A) product segmentation
B) market expansion
C) product differentiation
D) usage segmentation
E) psychographic segmentation

Question 16

Product differentiation is

A) a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs.
B) the unique combination of product benefits received by targeted buyers.
C) those characteristics of a product that make it superior to competitive substitutes.
D) a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products.
E) the legal requirement that requires a specified degree of distinction between products to ensure an organization's intellectual property rights.

Question 17

Building open and honest relationships with communication is an example of one of Zappos's

A) target markets.
B) best practices being adapted from its new owner, Amazon.com.
C) ten core values.
D) supplier requirements.
E) long-term goals.

Question 18

A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can

A) increase sales and profitability.
B) stand up to legal scrutiny.
C) be socially responsible.
D) create sustainable demand.
E) produce product differentiation.

Question 19

New Balance has many offerings. It makes the Minimus line of shoes with a Vibram outsole and REVlite cushioning for those who want to "feel the trail." Its 1260v2 shoe incorporates Stabilicore technology to "deliver a plush, smooth, and stable ride." And its top of the line, 990v3 traditional running/walking shoe uses a "premium pigskin upper with mesh inserts for breathability, a stability-enhancing ABZORB insole, and ENCAP to promote a healthy gait." The strategy of appealing to different types of customers in this way is an example of

A) mass customization.
B) product definition.
C) market segmentation.
D) single chain marketing.
E) market specific selection.

Question 20

The primary focus of Zappos's initial market segmentation strategy was to sell

A) shoes and other products to people who will buy them online and like to use mobile technology.
B) a wide selection of leather shoes and boots to high-end retailers.
C) all types of shoes, accessories, and clothing to department and fashion discount stores for reasonable prices.
D) Spanish novelties and accessories to organizations that typically resell them.
E) shoes in its own retail stores to those who prefer face-to-face interaction.

Question 21

Figure 9-2

-Consider Figure 9-2 above. My Pillow uses infomercials and product demonstrations at events such as state fairs to market its line of pillows that are guaranteed to be "the most comfortable pillow you'll ever own!" Based on the market research above, which market-product combination should My Pillow target?

A) stomach sleeper-firm pillow
B) back sleeper-medium pillow
C) side sleeper-firm pillow
D) stomach sleeper-soft pillow
E) side sleeper-soft pillow

Question 22

When expenses are greater than the potential increased sales from market segmentation, a firm should

A) not consider market segmentation at this time.
B) combine departments within the company to make the process more streamlined.
C) reduce production costs or increase prices to facilitate the segmentation process.
D) seek alternate channels of distribution, including Internet sales.
E) discontinue manufacturing any products that are not in the mature stage of their product life cycle.

Question 23

Which of these is a disadvantage of employing a multiple products, multiple market segments strategy if not implemented well?

A) inability to meet high demand
B) reduced quality and higher prices
C) failure to meet diverse customer needs
D) employee dissatisfaction
E) frequent research and development failures

Question 24

When compared to a multiple products, multiple market segments strategy, a one product, multiple market segments strategy

A) is a much more effective means of meeting consumers' individual needs.
B) creates greater savings in production costs.
C) is a more effective way of meeting organizational objectives.
D) has significantly higher distribution costs.
E) is more profitable since a firm can charge the new segments higher prices without changing the product.

Question 25

When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids

A) the extra cost of developing and producing additional versions of the product.
B) creating a customer service gap.
C) indirect distribution and logistics problems.
D) restructuring the firm's strategic planning.
E) amortization costs of product enhancements.

Question 26

_______ links market needs to an organization's marketing program.

A) Market segmentation
B) Product design
C) Marketing protocol
D) Marketing mix development
E) Product selection

Question 27

Which of the following statements regarding when and how to segment markets is most accurate?

A) Even if a firm finds uniform needs across all users, it should take advantage of the method to avoid falling behind its competitors.
B) Market segmentation is only feasible for large corporations; small businesses don't have the resources to engage in the process.
C) Governments should not attempt market segmentation because the strategy is only applicable for consumer and organizational markets.
D) If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment.
E) Market segmentation strategies work less than 10 percent of the time.

Question 28

In the segmentation process, pairing slide sleepers with firm pillows, back sleepers with medium pillows, and stomach sleepers with soft pillows would be done with a

A) needs table.
B) cross-tabulation.
C) market-product grid.
D) growth-share matrix.
E) product differentiation table.

Question 29

A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is a

A) needs table.
B) cross-tabulation.
C) market-product grid.
D) growth-share matrix.
E) product differentiation table.

Question 30

A market-product grid is a framework to relate the ________ to products offered or potential marketing actions by an organization.

A) market segments of potential buyers
B) marketing objectives of potential products
C) total anticipated revenue annually
D) total anticipated profit annually
E) market share of the closest competitor

Question 31

Which of the following is an example of a multiple products, multiple market segments strategy?

A) College Football magazine selects different covers for essentially the same written content in order to appeal to different geographic markets in the United States.
B) A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience.
C) Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo.
D) Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and cat litter boxes.
E) Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Question 32

The effort and expense of segmentation should be undertaken by a business firm only when

A) it can comfortably maintain market share.
B) it expects this to result in increased sales and profits.
C) it can also assume social responsibility.
D) the firm's resources are very scarce.
E) it desires to provide the best quality products on the market.

Question 33

The annual Street & Smith's Baseballmagazine has 15 different covers featuring a baseball star from each of its regions in the United States, yet each regional issue has the same magazine content. What is the basis of its market segmentation strategy?

A) psychographic segmentation
B) retail outlet segmentation
C) demographic segmentation
D) behavioral segmentation
E) geographic segmentation

Question 34

All of these are market segmentation strategies except which?

A) build-to-order
B) multiple products, multiple market segments
C) one product, multiple market segments
D) multiple products, one segment
E) mass customization

Question 35

A market-product grid is a

A) visual representation of all products offered within a specific product class.
B) framework used to compare the relative market share of one firm's product offerings to those of its competitors.
C) technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
D) framework used to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.
E) technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.

Question 36

Figure 9-2

-The table in Figure 9-2 above is known as a

A) needs table.
B) cross-tabulation.
C) market-product grid.
D) growth-share matrix.
E) product differentiation table.

Question 37

The annual Street & Smith's Baseballmagazine uses 15 different covers featuring a baseball star from each of its regions in the United States, yet each regional issue has the same magazine content. The publisher is using which of the following segmentation strategies?

A) multiple products with one segment
B) one product with one channel of distribution
C) one product with multiple market segments
D) one product with changes based on customer behavior
E) multiple products with multiple segments

Question 38

The process of segmenting a market and selecting specific segments as targets is the link between ________ and the organization's marketing program.

A) self-regulatory industry standards
B) government regulations
C) top-level management
D) buyers' or market needs
E) controllable environmental factors

Question 39

One marketing action that can be taken to sell a single product or service to multiple market segments is to

A) develop and produce another version of the product.
B) manufacture products that appeal to different markets.
C) develop a new channel of distribution.
D) purchase another firm that has additional products that would appeal to multiple markets.
E) issue stock to fund additional research and development for new products.

Question 40

Zappos's original target market customers consisted of people who wanted all of these except which?

A) to receive quick delivery of their merchandise
B) to buy sustainable shoes, accessories, and clothing
C) to shop online in the convenience of their own homes
D) to return goods for free if dissatisfied
E) to choose from a wide selection of shoes

Question 41

All of these are examples of increased customer value from organizational synergy except which?

A) lower prices
B) increased brand awareness
C) more products
D) improved distribution
E) improved quality of existing products

Question 42

The increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently is referred to as

A) functional aggregation.
B) organizational synergy.
C) task segmentation.
D) task amalgamation.
E) project valuation.

Question 43

Which of the following is an example of a Tiffany/Walmart strategy?

A) College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the United States.
B) A new movie used several different movie trailers; one showed the action scenes in order to attract one audience and the other showed romantic scenes to attract another audience.
C) Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes.
D) Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22.
E) Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Question 44

Organizational synergy is the increased customer value achieved through

A) performing organizational functions more efficiently.
B) more discounts or larger rebates at the point of sale.
C) involvement of the ultimate consumer in product design.
D) an increase in the knowledge of competitors.
E) shared ownership of the organization through publicly traded stock.

Question 45

When Ann Taylor, a well-known retailer of sophisticated women's clothing, started losing sales to its own LOFT stores that feature moderately priced casual clothes, Ann Taylor was dealing with the marketing phenomenon known as

A) amortization.
B) guerrilla marketing.
C) shrinkage.
D) marketing Darwinism.
E) cannibalization.

Question 46

Suppose marketers want to use product differentiation and market segmentation strategies. What question should they ask when considering the potential for cannibalization with these strategies?

A) Will our new products steal customers or sales from our older ones?
B) Will the products compete head-to-head with those of a competitor?
C) Can this action successfully draw customers away from competitors?
D) Are there enough similarities within the market segment to warrant such high costs?
E) Will this action eliminate the need for individualized advertising and promotion?

Question 47

Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to offer

A) a low-priced product to a high-income or high net worth segment.
B) a high-priced product to a low-income or low net worth segment.
C) different variations of the same basic offering to high-end and low-end segments.
D) a high-priced and a low-priced offering to a single market segment.
E) entirely different offerings to high-end and low-end segments.

Question 48

Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing only one but seems worthwhile if it adds to the manufacturer's profits and

A) meets standards for new product testing.
B) uses the same promotion and packaging for all segments.
C) cannibalizes the earlier products.
D) stabilizes competition.
E) better serves customers' needs.

Question 49

Cannibalization would most likely occur if

A) Dell adds high-end speaker systems to its line.
B) General Mills launches Caramel Crunch Cheerios.
C) General Motors markets a motorcycle similar to the Can-Am Spyder Roadster three-wheel bike.
D) Pillsbury adds boxed sugar to its product mix.
E) Procter & Gamble adds a new line of baby clothing to its Pampers stable of products.

Question 50

________ occurs when a new product or a new retail chain steals customers and sales from the organization's older products and retail outlets.

A) Cannibalization
B) Amortization
C) Product appropriation
D) Product pilfering
E) Marketing Darwinism

Question 51

Nike employs a ________ strategy with its Nike by You service which configures shoes to a customer's specific preferences for colors, solos, logos, and added initials and numbers.

A) product sampling
B) product clustering
C) build-to-order
D) usage segmentation
E) psychographic segmentation

Question 52

Custom Foot operates six retail locations. At first glance, none looks different from a typical boot store. But here the only boots on hand are display models. There is no inventory for sale and customers go home empty-handed, awaiting their orders. Customers browse the store, choosing style, color, and leather type, with about 100 displays to provide style guidelines. Custom Foot guarantees your boots will be ready within three weeks. This is an example of

A) mass customization.
B) specialty customization.
C) virtual merchandising.
D) one product and multiple market segments.
E) multiple products and multiple market segments.

Question 53

Lands' End will custom-fit a Marinac jacket and make it with additional features such as thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com. This is an example of

A) family branding.
B) mass customization.
C) "Tiffany/Walmart" marketing.
D) market melding.
E) specialty customization.

Question 54

Manufacturing a product only when there is an order from a customer is referred to as

A) order customization.
B) a one product, one market segment strategy.
C) synergistic marketing.
D) build-to-order.
E) specialty customization.

Question 55

Tailoring products or services to the tastes of individual customers on a high-volume scale is

A) family branding.
B) mass customization.
C) product differentiation.
D) economies of scale marketing.
E) build-to-order.

Question 56

The ultimate criterion for an organization's marketing success is that ________ as a result of increased synergies.

A) costs decrease
B) market share increases
C) product deficiencies decrease
D) customers should be better off
E) new products flourish

Question 57

ChoiceShirts is an online company that makes made-to-order T-shirts. Its online customers can order their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch. This is an example of

A) family branding.
B) mass customization.
C) multiple products and multiple market segments.
D) one product and multiple market segments.
E) specialty customization.

Question 58

Wonk is a unique furniture company that design, builds, and retails in Brooklyn, NY. You can customize your design with creative input, including personalizing items with wood and lacquer options or environmentally conscious materials and finishes, though the options are not unlimited. Wonk relies on

A) order customization.
B) a one product, one market segment strategy.
C) build-to-order manufacturing.
D) specialty customization.
E) mass customization.

Question 59

Which of the following is an example of a multiple products, multiple market segments strategy?

A) College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the United States.
B) A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience.
C) Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes.
D) Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens.
E) Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Question 60

Name Maker is an online company that sells, among other items, high-end gift wrapping that can have custom slogans or names printed on it, such as the name of a person celebrating a birthday or a couple who is getting married. This made-to-order gift wrapping is an example of

A) family branding.
B) mass customization.
C) synergistic marketing.
D) "Tiffany/Walmart" marketing.
E) specialty customization.

Question 61

All of these are criteria used for forming market segments except which?

A) difference of needs of buyers among segments
B) potential for increased profit
C) cost of reaching the segment
D) potential of a marketing action to reach a segment
E) simplicity and cost-effectiveness of assigning potential buyers to segments

Question 62

Criteria for forming segments involve both similarities and differences. Which of the following statements is most accurate?

A) Within a segment, the needs of potential buyers should be different; among segments, the needs of buyers should be similar.
B) Within a segment, the needs of potential buyers should be similar; among segments, the needs of buyers should be different.
C) The needs of buyers should be different, both between segments and within segments.
D) The needs of buyers should be the same, both between segments and within segments.
E) If there are any differences at all, you should forgo any segmentation.

Question 63

The first step in segmenting and targeting markets that links customer needs to marketing actions is to

A) group potential buyers into segments.
B) develop a market-product grid and estimate size of the overall market.
C) select target markets.
D) group products to be sold into categories.
E) take marketing actions to reach target markets.

Question 64

Which of the following is not a reason to segment a market?

A) The ability to assign buyers to a segment is simple and cost-effective.
B) It would cause an increase in market share or profit.
C) All the buyers in the entire market have similar wants and needs.
D) There is a potential marketing action to reach it.
E) There are different wants and needs of buyers in the entire market.

Question 65

About 3 percent of the population has some degree of allergic reaction, usually mild, to preservatives used in salad bars. Restaurants might consider people with these allergies as a separate segment. To implement this segmentation strategy, restaurants would have to prepare a regular salad bar and a special salad bar for the allergies segment. This multiple product, multiple markets segment strategy would have the greatest difficulty meeting which of the following criteria used to form market segments?

A) different needs of buyers among different segments
B) similarity of needs of potential buyers within a segment
C) simplicity and cost-effectiveness of assigning potential buyers to segments
D) potential for increased profit and ROI
E) potential of a marketing action to reach a segment

Question 66

Four general categories are used to segment consumer markets, one of which is

A) supplier segmentation.
B) demand segmentation.
C) regional segmentation.
D) demographic segmentation.
E) product segmentation.

Question 67

The best segmentation approach for business firms is the one that

A) makes it easiest to reach the segment.
B) maximizes the opportunity for future profit and ROI.
C) that differs from the most common approach within the industry.
D) creates awareness among potential buyers within a segment.
E) is simplest and least costly in assigning potential buyers to segments.

Question 68

Criteria for forming segments involve both similarities and differences. In terms of the needs of buyers, the similarities must be ________ a segment, and the differences must be ________ segments.

A) between; among
B) throughout; absent in
C) within; among
D) absent in; throughout
E) among; across

Question 69

Which of the following is not a criterion that would support forming market segments?

A) The ability to assign buyers to a segment is cost-effective and simple.
B) The result of segmenting will cause an increase in market share or profit.
C) There are significant similarities among buyers in the market segment.
D) There is a potential marketing action to reach the segment.
E) The cost to reach the segment exceeds the expected returns.

Question 70

Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer which of these?

A) Is this product useful on a global scale?
B) Is it possible to reposition this product?
C) Is there too much competition for this product?
D) Is the market loyal to the product?
E) Would segmentation be worth doing and is it possible?

Question 71

The final step in segmenting and targeting markets that links customer needs to marketing actions is to

A) take marketing actions to reach target markets.
B) group potential buyers into segments.
C) select target markets.
D) group products to be sold into categories.
E) develop a market-product grid and estimate size of the overall market.

Question 72

The purpose of the five key steps in segmenting and targeting markets is to

A) identify competitors that provide similar products that satisfy a firm's customers' needs.
B) provide guidance to reposition a firm's products.
C) generate new-product ideas for firms that are not growing in market share.
D) link market needs of customers to the organization's marketing program.
E) correlate directly to each of the five environmental forces.

Question 73

Region and city size are both variables used to employ ________ segmentation.

A) geographic
B) behavioral
C) district
D) psychographic
E) demographic

Question 74

Selling a product to a different market segment usually requires a different marketing action that, in turn, means greater costs. If increased revenues don't offset extra costs of this action, a marketer should

A) increase the advertising budget.
B) prune the product offerings.
C) family brand the products.
D) combine segments.
E) group products into categories.

Question 75

You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50. Or you can buy a Hallmark card from its new $0.99 line of greeting cards, made with lesser-quality materials but just as sentimental, sold at Barnes & Noble bookstores. This is an example of

A) mass customization.
B) organizational synergy.
C) one product and multiple market segments.
D) price discrimination.
E) a Tiffany/Walmart strategy.

Question 76

Which of the following is a criterion used in forming market segments?

A) similarity of segments to competitors' segments
B) differences between potential suppliers or distributors
C) differences of needs of buyers within a segment
D) market size of the segment
E) simplicity and cost-effectiveness of assigning potential buyers to segments

Question 77

The Walt Disney Co. carefully markets two distinct Winnie-the-Poohs; one is the original line-drawn figure on fine china sold at Nordstrom and the other is a cartoon-like Pooh on polyester bed sheets sold at Target. This is an example of

A) mass customization.
B) a Tiffany/Walmart strategy.
C) one product and multiple market segments.
D) price discrimination.
E) psychographic market segmentation.

Question 78

Segmentation based on where prospective customers live or work is referred to as

A) zip code segmentation.
B) geographic segmentation.
C) trade area segmentation.
D) district segmentation.
E) NAICS code segmentation.

Question 79

A marketing manager goes through several steps to put a market segmentation plan into effect. This includes forming market segments and then ________ without encountering excessive costs.

A) eliminating potential nonbuyers
B) identifying segmentation variables
C) selecting the market segments to target
D) redirecting their purchase behaviors
E) ignoring any and all similarities

Question 80

There are five steps involved in segmenting and targeting markets. What should a marketer do after he or she has grouped products to be sold into categories?

A) Create product groupings.
B) Identify market needs.
C) Take marketing actions to reach target markets.
D) Develop a market-product grid and estimate size of markets.
E) Form prospective buyers into market segments.