Deck 10: Developing a Target Market Strategy

Question 1

The market for a good or service is best defined as all of the

A) people and/or organizations that desire a good and are willing and able to purchase it.
B) people and/or organizations that desire a good but are not willing and able to purchase it.
C) people that desire a good and are willing and able to purchase it.
D) organizations that desire a good and are willing and able to purchase it.

Answer 1

people and/or organizations that desire a good and are willing and able to purchase it.

Question 2

A market segment is best illustrated as a

A) combination of smaller markets, with the combined market having little commonality.
B) subset of a larger market, with the subset having common characteristics and needs.
C) product offering with a differential advantage over competitors.
D) consumer grouping with diffused demand.

Answer 2

subset of a larger market, with the subset having common characteristics and needs.

Question 3

The first step in undertaking a target market strategy is to

A) analyze consumer demand.
B) develop a target market strategy.
C) establish possible bases of segmentation.
D) target the market.

Answer 3

analyze consumer demand.

Question 4

Which target market approach uses a mass marketing strategy?

A) Undifferentiated marketing
B) Concentrated marketing
C) Differentiated marketing
D) Multiple segmentation

Question 5

Which target market strategy seeks to appeal to the largest target market with a single marketing strategy?

A) Clustered marketing
B) Undifferentiated marketing
C) Diffused marketing
D) Differentiated marketing

Question 6

Which marketing strategy seeks to appeal to multiple consumer segments with a distinctive marketing strategy for each segment?

A) Segmented marketing
B) Concentrated marketing
C) Differentiated marketing
D) Clustered marketing

Question 7

A firm seeks to develop a differential advantage through

A) mass marketing.
B) differentiated marketing.
C) undifferentiated marketing.
D) product differentiation.

Question 8

The most difficult consumer demand pattern for a marketer to satisfy is

A) derived demand.
B) homogeneous demand.
C) clustered demand.
D) diffused demand.

Question 9

Geographic demographics, personal demographics, and consumer lifestyles are

A) heavy-half segmentation bases.
B) target market approaches.
C) possible bases of segmentation.
D) VALS-based approaches to segmentation.

Question 10

Basic identifiable characteristics of towns, cities, states, regions, and countries may be described through

A) geographic demographics.
B) population demographics.
C) personal demographics.
D) consumer demographics.

Question 11

An area's population, density, and climate are studied with

A) geographic demographic segmentation.
B) economic segmentation.
C) socioeconomic segmentation.
D) personal demographic segmentation.

Question 12

The basic identifiable characteristics of individual final and organizational consumers and groups of final and organizational consumers are studied in

A) consumer demographics.
B) geographic demographics.
C) personal demographics.
D) population demographics.

Question 13

Age distribution, gender, education level, and occupation are analyzed with which possible base of market segmentation?

A) Urban demographics
B) Personal demographics
C) Socioeconomics
D) Consumer life-styles

Question 14

A company's NAICS code, size, and years in business are analyzed with which possible base of market segmentation?

A) Personal demographics
B) Urban demographics
C) Socioeconomics
D) Consumer lifestyles

Question 15

Brand loyalty, usage rate, and perceived risk are studied with which possible base of market segmentation?

A) Urban demographics
B) Personal demographics
C) Socioeconomics
D) Consumer lifestyles

Question 16

With the heavy-half theory, market segments are described in terms of

A) perceived risk.
B) usage experience. .
C) usage rate.
D) purchase attitudes

Question 17

A group accounts for a disproportionately large portion of a product's usage relative to the group's size. This illustrates

A) a lifestyle segment.
B) the heavy half.
C) personal demographics.
D) the experience curve.

Question 18

An arts and crafts goods retailer decides to concentrate on advanced amateurs versus typical consumers. Which segmentation base is the retailer using?

A) VALS 2
B) Class consciousness
C) VALS
D) Heavy-usage segmentation

Question 19

A firm wishing to segment a market on the basis of benefit segmentation needs to carefully study

A) how perceived risk varies by segment.
B) usage experience of different groups.
C) consumer lifestyles by segment.
D) consumers' purchase motives.

Question 20

Research on mouthwash users finds three market segments: plaque-conscious (concerned with gum health), sociables (concerned with freshness of breath), and germ control (concerned with killing germs). This study illustrates which form of segmentation?

A) Family life cycle segmentation
B) Heavy-half segmentation
C) Benefit segmentation
D ) Demographic segmentation

Question 21

American lifestyles are divided into eight major categories-innovators, thinkers, believers, achievers, strivers, experiencers, makers, and survivors-in

A) VALS 1.
B) VALS 2.
C) the Social Styles model.
D) the social class scale.

Question 22

Which VALS 2 segment has the highest resources?

A) Survivors
B) Experiencers
C) Makers
D) Innovators

Question 23

Which statement concerning the Social Styles model is NOT correct?

A) According to the Social Styles model, amiables are high in both assertiveness and responsiveness.
B) According to the Social Styles model, analyticals are low in both assertiveness and responsiveness.
C) The Social Styles model is concerned with organizational consumer segments.
D) The Social Styles model divides consumers into four groups on the basis of their assertiveness and responsiveness.

Question 24

Which target market approach aims at a large, broad consumer market with a single well-defined marketing plan?

A) Concentrated marketing
B) Undifferentiated marketing
C) Differentiated marketing
D) Market segmentation

Question 25

Which target market approach is best for a firm seeking the mass market?

A) Undifferentiated marketing
B) Concentrated marketing
C) Differentiated marketing
D) Market segmentation

Question 26

The major goal of an undifferentiated marketing strategy is to

A) diversify as a means of reducing risk.
B) maximize total sales by appealing to multiple consumer groups.
C) maximize sales by offering lower prices than competitors.
D) appeal to different market segments.

Question 27

The most appropriate distribution strategy to be used along with undifferentiated marketing is selling through

A) few outlets, so that customer service can be maintained.
B) a moderate number of outlets, so that price competition would be lessened.
C) a large number of outlets, however, choosing outlets that are not in direct competition with one another.
D) all possible outlets, so that sales are maximized.

Question 28

Which target market approach is most compatible with a homogeneous demand pattern?

A) Clustered marketing
B) Concentrated marketing
C) Differentiated marketing
D) Undifferentiated marketing

Question 29

What target market approach is quite popular for firms seeking to be specialists?

A) Differentiated marketing
B) Concentrated marketing
C) Undifferentiated marketing
D) Mass marketing

Question 30

Which target market approach is most compatible with a clustered demand pattern?

A) Undifferentiated marketing
B) Concentrated marketing
C) Differentiated marketing
D) Clustered marketing

Question 31

Which statement about concentrated marketing is NOT correct?

A) With concentrated marketing, a firm aims at a narrow, specific consumer segment.
B) Concentrated marketing is most appropriate if demand is clustered.
C) Concentrated marketing combines the best of differentiated and undifferentiated marketing.
D) Concentrated marketing can enable a firm to maximize per unit, but not total profits.

Question 32

According to the majority fallacy concept,

A) a differentiated marketing strategy may direct a company's energies toward too many segments.
B) the smallest segment, not the largest, may be the most brand loyal.
C) per-unit profits are always the highest in undifferentiated marketing.
D) the largest market segment may not be the best for a firm to seek out due to its high degree of competition.

Question 33

The majority fallacy warns marketers to consider the

A) firm's limited resources.
B) size of the overall market and each segment.
C) need to specialize.
D) degree of competition.

Question 34

Which target market strategy most closely resembles a niche strategy?

A) Mass marketing
B) Differentiated marketing
C) Undifferentiated marketing
D) Concentrated marketing

Question 35

The best of the attributes of undifferentiated marketing and concentrated marketing are combined in

A) product differentiation.
B) target marketing.
C) market segmentation.
D) differentiated marketing.

Question 36

Which target market strategy allows a firm to pursue BOTH mass marketing and concentrated marketing?

A) Product differentiation
B) Differentiated marketing
C) Concentrated marketing
D) Undifferentiated marketing

Question 37

A firm decides to appeal to the mass market with one brand designation and to a specialized market segment with another brand. The firm is using

A) differentiated marketing.
B) benefit segmentation. .
C) concentrated marketing.
D) undifferentiated marketing

Question 38

Which strategy minimizes conflict among channel members by allowing them to sell different brand and product line designations?

A) Concentrated marketing
B) Product differentiation
C) Undifferentiated marketing
D) Differentiated marketing

Question 39

In which target market strategy must a firm take particular care to distinguish its multiple offerings from one another?

A) Differentiated marketing
B) Product differentiation
C) Concentrated marketing
D) Undifferentiated marketing

Question 40

Which of these is NOT a requirement for successful segmentation?

A) A segment must be reachable in an efficient manner.
B) The characteristics and needs of each segment must be capable of being measured.
C) There must be consumer differences between segments.
D) There must be consumer differences within segments.

Question 41

Which of the following is NOT a limitation of segmentation?

A) A firm may appeal to a segment that is too small to be profitable.
B) Certain media cannot be used if a segment is too small.
C) A firm may appeal to two or more segments.
D) A firm may compete in too many disparate segments.

Question 42

The final step in the target-marketing process is

A) determining the bases for segmentation.
B) outlining the appropriate marketing mix(es).
C) selecting the target market.
D) choosing a target market approach.

Question 43

By accurately ___, a firm can develop a marketing budget, allocate marketing resources, analyze productivity, measure success, and modify marketing programs.

A) applying benefit segmentation
B) outlining a target market strategy
C) segmenting the market
D) forecasting sales

Question 44

Which sales forecasting technique forecasts sales on the basis of recent or current sales performance?

A) Consumer surveys
B) A jury of executive opinion
C) The chain-ratio method
D) Simple trend analysis

Question 45

Which sales forecasting technique assumes that a firm's share of industry sales will be constant?

A) Jury of executive opinion
B) Simple trend analysis
C) Market buildup method
D) Market share analysis

Question 46

Which forecasting technique may have a significant effect on the analysts' performance evaluation system?

A) Jury of executive opinion
B) Simple trend analysis
C) Sales force survey
D) Market share analysis

Question 47

Data are gathered from small, separate market segments and then aggregated in which sales forecasting technique?

A) Market breakdown method
B) Market buildup method
C) Chain-ratio analysis
D) Complex trend analysis

Question 48

Which sales forecasting technique is most appropriate for a firm that is concerned about the impact of such factors as economic conditions and sales fluctuations on sales?

A) Complex trend analysis
B) Simple trend analysis
C) Chain-ratio method
D) Market buildup method

Question 49

The degree to which a company achieves its sales potential is its

A) sales performance.
B) sales forecast.
C) sales penetration.
D) sales trend.

Question 50

When a firm's overall sales penetration is high,

A) obtaining additional heavy users becomes increasingly difficult.
B) undifferentiated marketing is the preferred target market strategy.
C) obtaining additional sales may become more difficult.
D) the marketing budget is too large.

Question 51

Which of the following statements concerning the term "market" is NOT correct?

A) A market is defined on the basis of both readiness and ability to buy.
B) Each market subset generally represents a potential target market.
C) The terms "market" and "target market" are synonymous.
D) A market may be divided into subgroups, each of which are known as market segments.

Question 52

Which target market approach is the most difficult to plan and to implement?

A) Differentiated marketing
B) Concentrated marketing
C) Undifferentiated marketing
D) Mass marketing

Question 53

Which comparative advantage do firms in monopolistic competition seek?

A) Appeal to innovators
B) Low perceived risk
C) Derived demand
D) Product differentiation

Question 54

A personal computer retailer offers free courses to first-time computer buyers. In addition, all buyers are offered low-cost extended warranties and free loaner computers during repairs. The retailer has attracted a loyal customer following despite above-average prices. This firm is involved with

A) product differentiation.
B) concentrated marketing.
C) differentiated marketing.
D) market segmentation.

Question 55

The Following Questions are linked to this scenario: A fuel-oil retailer has researched the demand patterns for fuel oil in its market area.

-A preliminary study of demand revealed that the vast majority of consumers are service-oriented. Important services to all customer groups, in order of importance, are emergency repair, low-cost heating system warranties, credit, and an annual heating system check-up. What demand pattern for fuel oil exists?

A) Diffused demand
B) Derived demand
C) Homogeneous demand
D) Clustered demand

Question 56

The Following Questions are linked to this scenario: A fuel-oil retailer has researched the demand patterns for fuel oil in its market area.

-A preliminary study of demand revealed that 30 percent of the buyers are concerned primarily with price and would quickly switch vendors if offered a cost savings of at least 15 percent over their current cost. In contrast, 70 percent were more concerned with service. Important services, in order of importance, are emergency repair, low-cost heating system warranties, credit, and an annual heating system check-up. What demand pattern for fuel oil exists?

A) Diffused demand
B) Derived demand
C) Homogeneous demand
D) Clustered demand

Question 57

Which of these statements is correct if a homogeneous demand pattern exists?

A) Differentiated marketing is a good strategy.
B) Product differentiation is simple.
C) The majority fallacy is unlikely to occur.
D) A mass marketing strategy is most appropriate.

Question 58

The market for calculators can be divided into distinct consumer segments such as desktop versus pocket-sized and printing versus nonprinting. The demand pattern can most accurately be characterized as

A) diffused.
B) heterogeneous.
C) differentiated.
D) clustered.

Question 59

In comparison with homogeneous demand, diffused demand

A) is better served by concentrated marketing.
B) is more susceptible to benefit segmentation.
C) requires a more complex marketing plan.
D) is better served by undifferentiated marketing.

Question 60

Which of these is NOT an example of a geographic demographic segmentation base for a home builder?

A) Building homes to appeal to middle-income residents
B) Building homes within 30 miles of Orlando, Florida
C) Building homes in small, rural towns
D) Building homes in areas with a low cost of living

Question 61

A marketing research study by a motor oil refiner finds that rural area homeowners are much more apt to change their car's oil themselves rather than use a mechanic or a quick-oil-change service. As a result, the firm is increasing its sales of motor oil in rural areas to such mass merchandisers as Kmart and Wal-Mart. Which segmentation base is the firm using?

A) Heavy-half theory
B) Geographic demographics
C) Personal demographics
D) Consumer lifestyles

Question 62

An industrial marketer of thermostats has decided to target the 10 largest air conditioner, refrigerator, and dehumidifier manufacturers that are located in the Northeast. The firm is using which segmentation base?

A) Geographic demographics only
B) Personal demographics only
C) Lifestyle factors only
D) Geographic demographics and personal demographics

Question 63

A bookstore aims its efforts at Asian-American consumers. The store stocks books, records, and calendars aimed at this market segment. This illustrates

A) personal demographic segmentation.
B) consumer lifestyle segmentation.
C) undifferentiated marketing.
D) differentiated marketing.

Question 64

A copier marketer has organized its sales force on a market basis with a separate sales force for manufacturers, retailers, and the government. Its strategy is based on

A) benefit segmentation.
B) geographic segmentation.
C) the heavy-half theory.
D) personal demographics.

Question 65

Research conducted by a maker of exercise equipment indicates that individuals that purchase more than $400 worth of exercise equipment exercise more than five hours per week, are weight conscious, and are concerned with their health. The firm should utilize which segmentation base?

A) Consumer lifestyles
B) The heavy-half theory
C) Personal demographics
D) Usage experience

Question 66

Which statement about the heavy-half theory is NOT correct?

A) Less than 20 percent of a market can account for 80 percent or more of a product's purchases.
B) The heavy-half theory does not apply to organizational consumers.
C) The heavy-half segment may have greater competition than light-usage segments.
D) The heavy-half segment may require different product attributes than regular or light-usage segments.

Question 67

About 160 manufacturers use about one-half of all general-purpose synthetic rubber. To marketers, this group comprises what segment?

A) Benefit
B) Personal demographic
C) Consumer lifestyle
D) Heavy half

Question 68

Which of these best illustrates benefit segmentation?

A) The purchase of a shampoo by teenagers due to a celebrity endorsement
B) The purchase of an antidandruff shampoo by a consumer with a perceived dandruff problem
C) The purchase of a shampoo based on brand loyalty
D) The purchase of a shampoo based on a $1 off coupon

Question 69

Swatch aims its watches at the consumer group that is concerned with fashion at a reasonable price. This target market represents a

A) consumer lifestyle segment.
B) heavy-half segment.
C) personal demographic segment.
D)benefit segment.

Question 70

Which of these statements about the VALS 2 typology is NOT correct?

A) It places consumers into segments based on their innovation and resources.
B) It seeks to explain why and how consumers make purchase decisions.
C) It had to be tailored to fit the Japanese culture.
D) It can be used to explain organizational consumer behavior.

Question 71

In contrast to the VALS 2 model of consumer behavior, the Social Styles model

A) studies the behavior of organizational consumers.
B) divides consumers into eight segments on the basis of self-orientation and resources.
C) assumes that resources increase from youth to middle age and then decline with old age.
D) presupposes that makers are the largest group.

Question 72

Undifferentiated marketing is most effective when demand is

A) clustered.
B) diffused.
C) homogeneous.
D) concentrated.

Question 73

A small paint manufacturer produces paint that is specially formulated to be used with wrought iron railing and furniture that is placed outdoors. The company should be engaged in which target market approach?

A) Differentiated marketing
B) Product differentiation
C) Concentrated marketing
D) Undifferentiated marketing

Question 74

A firm can avoid the majority fallacy by

A) focusing on saturated geographic markets.
B) concentrating on the large-sized markets.
C) avoiding large-sized markets.
D) evaluating the number and quality of competitors in each market relative to the market's size.

Question 75

Which target market approach most closely resembles a niche strategy?

A) Concentrated marketing
B) Differentiated marketing
C) Benefit segmentation
D) Undifferentiated marketing

Question 76

A manufacturer of pre-cooked meals wants to change its marketing strategy to increase sales and to lower costs. It plans to shift from offering a selection of Greek and Italian foods to now offering only Italian pasta-based dishes. This manufacturer is moving away from

A) concentrated marketing.
B) differentiated marketing.
C) benefit segmentation.
D) undifferentiated marketing.

Question 77

Which target market approach involves the most complicated market planning process?

A) Differentiated marketing
B) Product differentiation
C) Concentrated marketing
D) Undifferentiated marketing

Question 78

A paint manufacturer produces paint in 1-gallon containers for the do-it-yourself market and in 5-gallon containers for professional painters. The firm practices

A) differentiated marketing.
B) concentrated marketing.
C) undifferentiated marketing.
D) ultramarketing.

Question 79

Which strategy has the greatest threat of a blurred brand image?

A) Product differentiation
B) Benefit segmentation
C) Differentiated marketing
D) Undifferentiated marketing

Question 80

The major difference between simple trend analysis and complex trend analysis is that simple trend analysis does NOT consider

A) economic or seasonal factors.
B) consumer survey data.
C) market share.
D) sales force surveys.