Deck 8: Segmenting and Targeting Markets

Question 1

Fisher-Price is identifying Asian markets that are interested in their line of talking toys.Fisher-Price is engaged in the process of market segmentation.

Answer 1

True

Question 2

The business market consists of four broad segments: producers,resellers,governments,and regions.

Answer 2

False
The four segments are producers,resellers,governments,and institutions.

Question 3

Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife Gets Home.It is an advice book for new fathers.The market for this book is based on demographics.

Answer 3

True

Question 4

Markets are always segmented by at least two variables.

Question 5

Company characteristics,such as geographic location,type of company,company size,and product use,can be important segmentation variables.

Question 6

The slogan used by Apple to promote the iPhone,"There's an app for that," indicates the company relies heavily on benefit segmentation variables.

Question 7

A segmentation plan must produce segments that are accessible-that is,the firm must be able to reach members of targeted segments with customized marketing mixes.

Question 8

The 80/20 principle implies that the majority of all demand is due to a minority of the customers.

Question 9

U.S.paint manufacturers traditionally use different formulae for developing paint to be used in the humid Southeast,the frigid Midwest,and the hot and dry Southwest.This is an example of how demographic segmentation is used.

Question 10

Geodemographic segmentation combines geographic,demographic,and lifestyle segmentations.

Question 11

Clorox describes individuals who buy lots of cleaning products as heavy users.This is an example of how companies use benefit segmentation.

Question 12

Until the 1990s,few firms practiced market segmentation.

Question 13

In the United States,women tend to be the key household decision-makers for many products,such as home furnishing purchases,vacations,and autos.

Question 14

Fisher-Price developed a line of toys for infants in China.Babies make up the market for these products.

Question 15

In market segmentation,individual psychographic variables can be combined with other variables to provide more detailed descriptions of market segments.

Question 16

Generation Xers account for half of all spending in the United States.

Question 17

Research has shown that most Hispanic Americans are insulted when retailers attempt to serve them in Spanish.Hispanic Americans overwhelmingly prefer to conduct business in English-even if they are bilingual-in order to demonstrate that they are "true Americans."

Question 18

A market segmentation study done by the University of Thessaly in Greece classified recreational skiers in terms of their gender,age,and income levels.The study used psychographic segmentation variables.

Question 19

A market segment is deemed to have substantiality if it contains a large number of potential customers.

Question 20

While it is important to understand potential business customers' buying processes,this is not a helpful segmentation basis.

Question 21

One reason marketers use market segmentation as a tool is that once completed,the process need not be repeated.

Question 22

Ford Motor Company produces passenger cars,commercial trucks and specialty vehicles,performance vehicles,and race cars.Ford uses a procedure called _____ to divide its large market.

A) micromarketing
B) positioning
C) market segmentation
D) cannibalization
E) perceptual mapping

Question 23

Marketers are rediscovering that the "one-size-fits-all" approach to marketing is still relevant.

Question 24

Home Cookin' Catering would like to improve customer satisfaction and increase repeat business.When you ask the owners to describe a typical customer,they say it is impossible and explain that with corporate functions,family affairs,and fund-raisers,they do not have a typical customer.You suggest it is time for market segmentation because:

A) it will enable them to build an accurate description of customer needs by group and to design a marketing mix to fit each segment
B) the company needs to reduce the size of the market it serves
C) the company needs to learn how to group these markets together into one market to serve all of them adequately
D) it will help develop a generalized definition of the market as a whole and reveal the optimal marketing mix for this market
E) this will position the company in the minds of its consumers as compared to its competitors

Question 25

The Belly Cast kit by Proud Body helps an expectant mom to make a cast of her pregnant body,decorate it and keep it for a lifetime.The primary market segment for the Belly Cast kit is:

A) all parents
B) expectant moms
C) recently married couples
D) parents of toddlers
E) collectors of unusual art

Question 26

A group of middle school students stop by a bicycle store.The store has just received a new shipment of high-end racing bicycles.The bicycles range in price from $1,200 to $3,000.All of the students want one of these new bikes,but none has the means to buy one.Is this group of consumers a potential market for the expensive bikes?

A) Yes,they are a potential market since they are all about the same age.
B) No,they do not have the ability to purchase at this time.
C) No,to qualify as a market,they must need the product.
D) Yes,they are a market because this product could satisfy their consumer wants and desires.
E) Yes,they are a market because this group shares relatively similar product needs and purchasing characteristics.

Question 27

A market is people or organizations that have:

A) the ability,willingness,and power to buy
B) a medium of exchange and products they desire
C) needs and wants and an ability and willingness to buy
D) unmet needs or wants and products or services that satisfy those unmet needs or wants
E) communication,financial,and capital resources

Question 28

Dakin Farms in Vermont uses mass marketing.Marketers would call the strategy an undifferentiated targeting strategy.

Question 29

A product's positioning could be based on product users.

Question 30

A(n)_____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have relatively similar product needs.

A) market universe
B) market segment
C) aggregated market
D) segmentation base
E) population sample

Question 31

Consumers' perceptions regarding a product's position cannot be changed.

Question 32

The purpose of market segmentation is to:

A) reduce the market down to a specific size that the firm can handle
B) divide the market into equal size and profit regions for sales territories
C) group a large number of markets together enabling a company to serve them simultaneously
D) develop a generalized definition of the market as a whole
E) enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups

Question 33

Product differentiation is a positioning strategy.

Question 34

Procter & Gamble markets several different brands of laundry detergent,such as Tide,ERA,Gain,and Dreft,each targeting a different market segment.This is an example of concentrated targeting.

Question 35

The first step in segmenting a market is to choose a basis or bases for segmenting the markets.

Question 36

Small firms often adopt a concentrated marketing strategy to compete effectively with larger firms.

Question 37

_____ is the process of dividing a market into meaningful groups that are relatively similar and identifiable.

A) Perceptual mapping
B) Positioning
C) Micromarketing
D) Market sampling
E) Market segmentation

Question 38

A _____ is a group of people or organizations that has wants and needs that can be satisfied by particular product categories,has the ability to purchase these products,and is willing to exchange resources for the products.

A) firm
B) buyer
C) market
D) consumer
E) target

Question 39

A product's position refers to where it is located on store shelves.

Question 40

Increasing share of customer means getting more customers.

Question 41

A manufacturer of lenses used in microscopes,binoculars,and telescopes has segmented its market into scientific equipment manufacturers,sporting equipment manufacturers,and retailers who sell replacement lenses.In order for this segmentation scheme to be successful,all of the following criteria must be met EXCEPT:

A) substantiality
B) accessibility
C) identifiability and measurability
D) complexity
E) responsiveness

Question 42

Market segmentation can assist marketers to do all of the following EXCEPT:

A) develop more precise definitions of customer needs and wants
B) identify which variable base should be used for segmenting
C) more accurately define marketing objectives
D) improve resource allocation
E) evaluate performance

Question 43

Altria Group Inc.'s Phillip Morris failed at an attempt to target Americans looking for a potentially safer cigarette.This market exhibits a lack of:

A) substantiality
B) identifiability and measurability
C) responsiveness
D) reliability
E) accessibility

Question 44

A research firm has conducted marketing research on the market for metal roofing for homes.The research firm has determined there are thousands of homeowners who want the durability provided by metal roofs.These homeowners are generally married and between 25 and 54 years of age.They tend to live in suburban neighborhoods and most subscribe to lifestyle magazines.If you were interpreting these results,you might suggest that the research firm:

A) conduct additional research because it has no idea about the measurability of its segments
B) examine the research report again to see if it can determine segment accessibility
C) conduct a follow-up analysis to determine if the segments it might choose would respond differently from other segments to its marketing strategy
D) not segment the concrete siding market because the only market for siding is contractors who build the homes
E) segment the concrete siding market based on the information provided and concentrate its efforts on suburban homeowners between 25 and 54 who read lifestyle magazines

Question 45

All of the following are criteria for successful market segmentation EXCEPT:

A) substantiality
B) identifiability and measurability
C) accountability
D) accessibility
E) responsiveness

Question 46

Scott owns Buffalo Mountain Coffee in Deer Park,Ohio.He understands the need to segment his market,and available marketing research indicates there is much demand in the community for unique coffee drinks.However,he has few resources and cannot engage in intensive consumer research to precisely identify a segment.Which of the following strategies would you suggest he employ?

A) Develop an undifferentiated strategy,because it is not a large community and he could create a single marketing mix that would serve the entire community.
B) Employ a macrosegmentation strategy because the data needed for such a strategy are both easy to get and fit his needs exactly.
C) Use a single-variable strategy because it offers an inexpensive alternative that would not require much experience to employ.
D) Use a multiple-variable segmentation strategy because it is easier to use than single-variable segmentation.
E) Conduct a VALS investigation of his buying market.

Question 47

_____ are characteristics of individuals,groups,or organizations that marketers use to divide a total market into segments.

A) Differentiation guides
B) Segmentation bases
C) Perceptual maps
D) Responsiveness quotients
E) Accessibility quotients

Question 48

Military Spouses is the only publication in the world that targets readers who are "married to the military." Its content reflects the unique set of challenges,hardships,and rewards to those whose spouses are in the military.The marital status that has been used to distinguish the market for this magazine is an example of a(n):

A) market base
B) selector base
C) identifier
D) segmentation base
E) discriminator base

Question 49

A health club has a new fitness program for expectant mothers.After fliers were placed at the offices of area obstetricians,classes filled up within two days.Which segmentation success criterion was most influential in the success of this promotion?

A) Substantiality
B) Identifiability
C) Measurability
D) Causality
E) Responsiveness

Question 50

Consumers in Louisiana love hot sauce,and Tabasco and Crystal brands are particularly popular there.Consumers in Michigan do not like hot food,so they purchase very little hot sauce.A national chain of grocery stores would likely use _____ segmentation when stocking condiment merchandise.

A) geographic
B) economic
C) demographic
D) benefit
E) geodemographic

Question 51

The marketing manager of Gevalia gourmet coffees wants to target the gay male consumer because he thinks this segment of consumers appreciates and consumes gourmet coffee.Even though gay lifestyles are becoming more accepted socially,the manager is finding it difficult to determine the market potential for this segment because many gay consumers are not willing to admit their lifestyle publicly.Which criterion of a useful segment does this illustrate?

A) Substantiality
B) Identifiability and measurability
C) Complexity
D) Responsiveness
E) Validity

Question 52

To be useful,a segmentation scheme must produce segments that meet four basic criteria.The criteria are:

A) segmentable,targetable,reliable and valid,and homogeneous
B) tangibility,inseparable,nonperishable,and unique
C) substantiality,identifiability and measurability,accessibility,and responsiveness
D) reliability,flexibility,tangibility,and unbiased
E) complexity,compatability,relative advantage,trialability,and observability

Question 53

The process of market segmentation involves breaking down a heterogeneous market into homogeneous and identifiable segments.If this process is carried to its extreme,then one could say that:

A) this is the reason segmentation cannot be used by small firms
B) all individuals have the same needs in spite of cultural differences
C) everyone belongs to the same segment
D) segmentation controls the demand for products
E) every individual in the world is a market segment

Question 54

Many children on the autism spectrum like to chew on clothing,paper,or anything that they can find.Kid Companions manufactures nontoxic,plastic chewable jewelry for kids to wear.The product is a great way to keep kids from chewing on their clothes,while letting them work through their chewing tendencies.However,the company is unsure how to reach parents and therapists with information about their product.This illustrates a segmentation problem with:

A) substantiality
B) identifiability and measurability
C) responsiveness
D) accessibility
E) accountability

Question 55

The marketing researcher for Bubastis Cat Treats has noticed an growing number of cat owners purchasing organic treats for their pets.The researcher thinks there is a market for organic cat treats,but she's not sure if the segment is substantial.In this case,substantiality means the segment:

A) has enough special stores,magazines,and other outlets that it will be possible to direct advertisements at this group
B) is large enough to permit a profitable market effort toward its members
C) exhibits a response rate to marketing variables different from the rates of other segments
D) is too large and needs to be reduced to a more easily identifiable and measurable size
E) will be difficult to develop a product to match this group of buyers

Question 56

Which criterion of useable market segments means the firm must be able to reach members of targeted segments with customized marketing mixes?

A) Substantiality
B) Identifiability and measurability
C) Accessibility
D) Responsiveness
E) Reliability

Question 57

According to the criterion of _____ a selected segment must be large enough to warrant developing and maintaining a special marketing mix.Serving the specific needs of this segment must be commercially viable,even if the number of potential customers is small.

A) causality
B) accountability
C) responsiveness
D) accessibility
E) substantiality

Question 58

The requirement for a market segment to be responsive means:

A) over half of the consumers in the identified segment will be actively interested in the product
B) all the segments identified by a marketer should respond to the marketing mix
C) all the segments identified by a marketer should not respond to the marketing mix
D) the segments identified by a marketer should not differ in the level of their responsiveness to the marketing mix
E) the segment identified by a marketer should differ in how it responds to the marketing mix when compared to another segment confronted with the same mix

Question 59

If a market segment is especially motivated by coupons in newspapers,which segmentation success criterion is most influential in the success of this program?

A) Responsiveness
B) Identifiability and measurability
C) Substantiality
D) Accessibility
E) Functionality

Question 60

_____ is the segmenting of markets based on the region of the country or the world,market size,market density (number of people within a certain unit of land),or climate.

A) Community segmentation
B) Geographic segmentation
C) Geodemographic segmentation
D) PRIZM segmentation
E) Demonstratable regionalization

Question 61

A manufacturer of blankets knows heavy 100 percent wool blankets sell better in the New England area where the winters are harsh and that lighter-weight blankets sell better in the Southeast market where mild winters require fewer and lighter covers for the bed.Segmenting the market according to climate is an example of _____ segmentation.

A) psychographic
B) lifestyle
C) perceptual
D) demographic
E) geographic

Question 62

Income,ethnic background,gender,and age are all examples of _____ segmentation bases.

A) geodemographic
B) organizational
C) demographic
D) socioeconomic
E) psychographic

Question 63

Almost all cell phones sold in the United States are black or gray.Almost all cell phones sold in Europe are colorful,and very few black phones are sold.A cell phone manufacturer knowing this information could use _____ segmentation when selling its phones internationally.

A) geographic
B) economic
C) demographic
D) benefit
E) multi-positioning

Question 64

Johnson Publishing Company,the world's largest African American-owned publishing company and home of Ebony magazine,has forged an alliance with Dan River,Inc. ,to create luxury bed and bath products for the newly developed Ebony Home brand.This brand will use the strong relationship the publisher has with the African American market to sell the brand.What form of demographic segmentation will be used to market the Ebony Home brand?

A) Geographic
B) Income
C) Ethnic
D) Benefit
E) Lifestyle

Question 65

Abbeville Press published a book by Armin Brott and Jennifer Ash entitled The Expectant Father: Facts,Tips,and Advice for Dads-to-Be.It is an advice book for men whose partners are expecting a baby.What demographic variables have been used to define the market for this book?

A) Benefit desired and lifestyle
B) Gender and family life-cycle stage
C) Age,gender,and personality
D) Benefit desired and gender
E) Usage-rate and lifestyle

Question 66

In Miami,several radio stations broadcast in Spanish and play Latin music for the Hispanic people living in South Florida.The radio stations are using _____ segmentation.

A) usage rate
B) ethnic
C) socioeconomic
D) geographic
E) gender

Question 67

Marketers who hope to sell to baby boomers need to avoid appeals to boomers':

A) age
B) interests
C) values
D) lifestyles
E) desire for attention

Question 68

Which of the following statements about the Hispanic-American market is TRUE?

A) Hispanic-Americans spend less on packaged goods than any other demographic segment.
B) Hispanic Americans rarely purchase products and services advertised on television.
C) By 2013,Hispanic-Americans will constitute the second-largest ethnic market in the U.S.
D) The Hispanic segment is less likely to carry credit card debt than the general U.S.population.
E) Hispanic-Americans make more online purchases than any other ethnic group in the U.S.

Question 69

Which of the following statements about the tween market is TRUE?

A) Tweens represent half of all spending in the United States.
B) Tweens are technologically savvy and are very social consumers.
C) Tweens typically have very little influence over major family purchase decisions.
D) Tweens spend a considerable amount of money on health-related purchases.
E) All of the above are true.

Question 70

The Coca-Cola Company has over 450 brands in over 195 countries.According to their web site,their products range from Samurai,an energy drink available in Asia,to Vita,an African juice drink.Coca-Cola uses _____ segmentation in this marketing strategy.

A) geographic
B) economic
C) demographic
D) usage-rate
E) multi-positioning

Question 71

All of the following statements are reasons why consumer goods companies take a regional approach to marketing rather than a national approach EXCEPT:

A) Many firms need to find new ways to generate sales because of sluggish and intensely competitive markets.
B) A regional approach gives marketing managers control over the competitive environment.
C) Computerized checkout stations with scanners enable retailers to assess accurately which brands sell the best in each region.
D) Many packaged goods manufacturers are introducing new regional brands intended to appeal to local preferences.
E) A more regional approach allows companies to react more quickly to competition.

Question 72

Deal$ stores sell a wide variety of low-priced merchandise: party supplies,cleaning products,toys,food,housewares,and health and beauty products for both men and women.Many items in the store are priced no higher than one dollar.Which type of demographic segmentation is Deal$ using?

A) Ethnic
B) Usage rate
C) Income
D) Gender
E) Age

Question 73

Colgate manufactures a fruit-flavored SpongeBob Squarepants toothpaste for kids.The age-based variable that distinguishes the market for this product is an example of a(n)_____ segmentation.

A) geographic
B) demographic
C) psychographic
D) benefits
E) usage rate

Question 74

Redbook magazine targets what it calls "Redbook jugglers," defined as 25- to 44-year-old women who must juggle family,husband,and job.According to a Redbook ad,"She's the product of the 'me generation,' the thirty-something woman who balances home,family,and career- more than any generation before her,she refuses to put her pleasures aside.She's old enough to know what she wants.And young enough to get it." This is an example of _____ segmentation.

A) demographic and psychographic
B) benefit desired and usage rate
C) geodemographic and benefit desired
D) demographic and usage rate
E) benefit desired and demographic

Question 75

While most marketing to Generation Y tries so hard to be hip that it borders on parody,Vans has kept the decades-old brand real and vital for Gen Yers.Marketing programs the footwear manufacturer uses to reach Gen Yers include the Vans Skate Parks,which operate in malls around the country;the wildly successful Vans Warped Tour for alternative music;and the Vans Triple Crown,the brand's answer to the X Games.The segmentation plan used by Vans relies heavily on _____ segmentation.

A) ethnicity
B) income
C) age
D) gender
E) occupation

Question 76

Fisher-Price developed a rugged,waterproof camera for children.This product uses _____ segmentation.

A) ethnicity
B) income
C) age
D) gender
E) occupation

Question 77

Marketers use _____ to segment markets because this information is widely available,and factors such as age or gender are often related to consumer purchasing and consumption behavior.

A) benefits
B) psychographics
C) demographics
D) usage rates
E) sociocultural attributes

Question 78

_____ have higher-than-average household incomes and education levels than the general U.S.population.

A) African-Americans
B) Native Americans
C) Hispanic-Americans
D) Caucasians
E) Asian-Americans

Question 79

H&M plans to open a new store in Saudi Arabia.It will be staffed completely by women.Saudi Arabia has strict laws about women interacting with men other than their husbands so only women will be permitted to shop there.Which type of demographic segmentation is H&M using?

A) Lifestyle
B) Usage rate
C) Benefit
D) Age
E) Gender

Question 80

Modern Maturity magazine is targeted toward adults age 50 and older.It has articles on health and fitness as well as the arts and finance.What segmenting base is Modern Maturity using?

A) demographic
B) geographic
C) nomological
D) economic
E) generational