Deck 7: Segmentation, Target Marketing, and Positioning

Question 1

Explain the major steps in the target marketing process.

Answer 1

The first step is market segmentation: dividing a market into smaller groups based on one or more meaningfully shared characteristics. Each group might require separate products or marketing mixes. The second step is targeting: evaluating each market segment's attractiveness and selecting one or more of the market segments to enter. The third step is positioning: developing a marketing strategy to influence how a target market segment perceives a good or service in comparison to the competition.

Question 2

Which of the following is NOT part of a target marketing strategy?

A) dividing the market into segments based on customer characteristics
B) identifying a market that is likely to buy a product
C) selecting one or more segments as target markets
D) developing a product to meet the needs of a specific market segment
E) positioning a product

Answer 2

B

Question 3

Why do marketers segment the market and use a target marketing strategy?

Answer 3

Marketers divide heterogeneous markets into smaller groups that can be reached more efficiently with products and services that match their unique tastes; firms focus on buyers they can serve best and most profitably.

Question 4

Marketers must balance the ________ of mass marketing with the ________ of offering each individual customer exactly what he wants.

A) efficiency; effectiveness
B) effectiveness; efficiency
C) investment; cost
D) cost; investment
E) positioning; scale

Question 5

Technological and cultural advances contribute to market fragmentation.

Question 6

Which of the following best defines demographics?

A) statistics that can be used to segment populations on the basis of what people do with a product
B) statistics that can be used to segment populations on the basis of when people use a product
C) qualitative data that can be used to explain why seemingly homogeneous consumer groups do not share core characteristics
D) statistics that can be used to segment populations on the basis of shared attitudes, opinions, and interests
E) statistics that measure observable aspects of a population

Question 7

What are the steps, in order, of the target marketing process?

A) segmentation, positioning, and targeting
B) segmentation, targeting, and positioning
C) targeting, segmentation, and positioning
D) targeting, positioning, and segmentation
E) positioning, segmentation, and targeting

Question 8

Age, gender, place of residence, and income are all examples of ________.

A) segmentation variables
B) positioning strategies
C) market fragment strategies
D) psychographics
E) targeting strategies

Question 9

Which of the following is the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics?

A) acculturation
B) segmentation
C) market fragmentation
D) targeting
E) positioning

Question 10

Which of the following best describes the market segment referred to as the bottom of the pyramid (BOP)?

A) a national segment of lower income consumers
B) a national segment of non-native language speakers
C) a national segment of individuals with a high-school only education
D) a global segment of consumers who earn less than $2 per day
E) a global segment of children in lower income families

Question 11

Which of the following is NOT an example of a demographic segmentation variable?

A) lifestyle
B) income
C) ethnic group
D) gender
E) age

Question 12

Marketers often use generational marketing because members of a generation tend to share the same ________.

A) lifestyle
B) income and social class
C) outlook and priorities
D) psychographics and usage patterns
E) geodemographics

Question 13

The direct cause of market fragmentation is the large number of new technological products introduced annually.

Question 14

People's diverse interests and backgrounds divide them into numerous groups with distinct needs and wants, a condition most accurately described as ________.

A) market aggregation
B) market positioning
C) economic aggregation
D) differentiation
E) market fragmentation

Question 15

Some people want healthy cereal that will help them lose weight or possibly prevent certain kinds of cancer. Some want presweetened cereal. Some want fruits and nuts in their cereal. Some people want whole wheat cereal while others want rice cereal. There are some who like hot cereal and others who like to eat their cereal right out of the box. The diversity of consumers for cereal is an example of ________.

A) geodemography
B) target marketing
C) cultural diversity
D) psychographics
E) market fragmentation

Question 16

A mass marketing approach involves more advertising costs than a target marketing approach does.

Question 17

What is market fragmentation? Why is market fragmentation of concern to marketers?

Question 18

The group of American consumers born after 1994 is often called ________.

A) Millennials
B) Generation Y
C) Generation X
D) busters
E) Generation Z

Question 19

Which of the following groups are referred to as Digital Natives and grew up during the "Great Recession"?

A) Millennials
B) Generation Y
C) Generation X
D) busters
E) Generation Z

Question 20

Which of the following statements about the steps in the target marketing process is true?

A) The first step in the target marketing process is setting marketing objectives.
B) There are four steps in the target marketing process.
C) The second step in the target marketing process is the identification of all segmentation variables.
D) The final step in the target marketing process is positioning.
E) The target marketing process is not related to positioning.

Question 21

Which generation was referred to as "busters" and was thought of as slackers who are cynical about marketing?

A) Generation Y
B) Generation X
C) Baby Boomers
D) Millennials
E) Generation Z

Question 22

Your firm has decided to tailor its products and services to meet local market demands. A good approach to use would be ________ segmentation.

A) geographic
B) psychographic
C) usage
D) positioning
E) social class

Question 23

Which of the following is the most accurate generalization of Millennials?

A) Many people in this segment seem determined to have stable families after growing up as latchkey children.
B) Members of this generation are currently responsible for the majority of new start-up businesses in the United States.
C) Members of this generation were born in the years immediately following the end of World War II.
D) Members of this generation have more leisure time than members of other generations do.
E) Members of this generation are more difficult to reach through television advertising than members of older generations are.

Question 24

Companies can customize online advertising by ________ so that people who log on in different places will see content for local businesses.

A) geotargeting
B) geodemography
C) geodiversity
D) psychographics
E) profiling

Question 25

Members of which generation were born in the years immediately following the end of World War II?

A) Echo Boomers
B) Millennials
C) Baby Boomers
D) the Baby Bust
E) Generation Z

Question 26

The group of American consumers born between 1965 and 1978 are called ________.

A) Baby Boomers
B) Echo Boomers
C) Generation X
D) Generation Y
E) Generation Z

Question 27

________ is a term for men who are keenly interested in fashion, home design, gourmet cooking, and personal care.

A) Tween
B) Buster
C) Metrosexual
D) Bachelor
E) Slacker

Question 28

The supermarket sells boxes of pink diapers and blue diapers. This is an example of segmenting by ________.

A) gender
B) age
C) ethnicity
D) social class
E) generation

Question 29

Which statement is NOT true about the Hispanic American segment?

A) The Hispanic American segment is becoming a less important segment to marketers.
B) The Hispanic American segment is growing rapidly.
C) Hispanic Americans tend to be brand loyal, especially to products made in their country of origin.
D) Hispanic Americans are a relatively young segment.
E) Hispanic American households are larger on average than other U.S. households.

Question 30

The group of American consumers born between 1979 and 1994 is often called ________.

A) the baby bust
B) the leading edge
C) Generation Y
D) tweens
E) Generation X

Question 31

________ are the largest ethnic group in the United States.

A) African Americans
B) Asian Americans
C) Pacific Islanders
D) Hispanic Americans
E) American Indians

Question 32

Which of the following best explains why marketers do not consider social class segments as strictly as they once did?

A) Many consumers buy according to the social class image they wish to portray rather than according to where they actually fall in the social class framework.
B) Due to the Great Recession, members of the upper class have become members of the middle class, and members of the middle class have become members of the lower class.
C) Data related to social class are more complicated and difficult to obtain and analyze than they once were.
D) Social class in the United States is more related to education and family history than to wealth.
E) Members of the upper and middle classes are unlikely to be attracted to any products marketed toward members of the lower classes.

Question 33

Which of the following is a true statement about trends related to gender segmentation?

A) The education and income gap between men and women closed in the latest recession.
B) In the recent recession, women held about three in four of the jobs that were lost.
C) Men are now increasingly likely to marry women with more education and income than they have.
D) In recent decades, the economic gains of marriage have been greater for women than for men.
E) Women are now increasingly likely to marry men with more education and income than they have.

Question 34

African Americans, Hispanic Americans, and Asian Americans are all examples of ________ segments.

A) life cycle
B) psychographic
C) ethnic group
D) social class
E) geocoding

Question 35

The management practice of ________ involves actively seeking people of different races, sexes, ethnic groups, and religions in an organization's employees, customers, suppliers, and distribution channel partners.

A) geodemography
B) cultural diversity
C) ethnic segmentation
D) psychography
E) social networking

Question 36

The Asian American segment of the population ________.

A) is the largest ethnic group market segment
B) does not yet receive significant attention from marketers
C) has shrunk in the last 10 years
D) is the fastest growing minority group in the United States
E) is too geographically dispersed to form a meaningful market segment

Question 37

Of the following generations, which has the youngest members?

A) Baby Boomers
B) Echo Boomers
C) Generation X
D) Generation Y
E) Generation Z

Question 38

Because family needs and expenditures change over time, marketers may consumers by ________.

A) age
B) generation
C) family life cycle stage
D) social class
E) psychographics

Question 39

Baby Boomers ________.

A) were born between 1965 and 1978
B) are currently in their 30s and 40s
C) are important to marketers because of the size and wealth of the segment
D) are 75 or older
E) are the parents of Generation X, not Generation Y

Question 40

Which of the following is a segmentation technique that combines geography with demographics?

A) geocoding
B) geodemography
C) geodiversity
D) geotargeting
E) psychographics

Question 41

According to the 80/20 rule, which of the following is true?

A) 80 percent of a product's customers account for 20 percent of the product's marketing expenditures.
B) 20 percent of a product's customers account for 80 percent of the product's marketing expenditures.
C) 80 percent of a product's sales come from 20 percent of the product's purchasers.
D) 80 percent of a product's marketing cost should be equal to 20 percent of the firm's total marketing budget.
E) 80 percent of a product's market should be consumers who are 20 or older.

Question 42

Business-to-business marketers who look at the size of firms in terms of total sales or number of employees are using ________ to segment their market.

A) organizational psychographics
B) organizational demographics
C) organizational culture
D) behavior variables
E) usage variables

Question 43

________ segmentation variables classify consumers on the basis of how they act toward, feel about, or use a product.

A) Demographic
B) Behavioral
C) Geodemographic
D) Socioeconomic
E) Psychographic

Question 44

Which three consumer motivations are key to the VALS™ system?

A) faith, family, and finances
B) age, gender, and ethnicity
C) place of usage, time of usage, and frequency of usage
D) ideals, achievement, and self-expression
E) income, education, and geographic location

Question 45

The 80/20 rule is most directly related to ________ segmentation.

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

Question 46

According to the long tail approach to selling, ________.

A) the Internet provides reduced opportunities for segmenting markets
B) companies can make the most money by focusing on the "bottom-of-pyramid" market
C) companies should focus on the 20 percent of customers who purchase the greatest volume of their product
D) companies should focus on the 80 percent of customers who purchase the greatest volume of their product
E) companies can make money by selling small amounts of items that only a few people want

Question 47

Which of the following is a consumer group identified by the VALS™ system?

A) Young Digerati
B) Tweens
C) Kids & Cul-de-Sacs
D) Shotguns & Pickups
E) Experiencers

Question 48

When many men in the baby boomer segment started getting gray hair, they were reluctant to use hair dyes made for women even though they were just as eager as women to fight the aging process. To address this reluctance, hair care product manufacturers introduced hair dying systems for men to use both on their heads and their facial hair. These hair care product manufacturers used ________ segmentation to define their target markets.

A) lifestyle
B) behavioral
C) socioeconomic
D) demographic
E) psychographic

Question 49

Loyalty programs such as Marriott Rewards and American Airlines Advantage are examples of segmentation by ________.

A) usage rate
B) occasion
C) geodemography
D) psychographics
E) geotargeting

Question 50

________ variables segment markets in terms of shared activities, interests, and opinions.

A) Demographic
B) Ethnographic
C) Geodemographic
D) Socioeconomic
E) Psychographic

Question 51

Which of the following most accurately describes PRIZM?

A) a method of removing heterogeneous variables from a target market
B) a method of data mining used to implement market development strategies
C) a database that classifies the U.S. population into segments based on geographic information, socioeconomic data and lifestyle attributes
D) a database that classifies the international population into segments based on demographic and geographic characteristics
E) a positioning strategy used in the introduction of new consumer products

Question 52

In developing a new shoe, Reebok targeted the youth market. It used ________ segmentation to define its target market.

A) lifestyle
B) behavioral
C) socioeconomic
D) demographic
E) psychographic

Question 53

________ is a well-known system based on psychological traits that correlate with consumer behavior. It divides the entire U.S. population into segments and then sells pieces of this information to clients for specific strategic applications.

A) VALS™
B) Decitica
C) AIO
D) PRIZM
E) NAICS

Question 54

Demographic variables are so frequently used in market segmentation because they ________.

A) create smaller segments than other methods do
B) create more easily reached segments than other methods do
C) do not involve stereotypes
D) are easy to measure in comparison to many other methods
E) involve fewer attributes to consider than other methods do

Question 55

Identifying and targeting market segments that may be as small as just one individual is known as ________.

A) geotargeting
B) micromarketing
C) psychographic segmenting
D) geodemography
E) usage segmenting

Question 56

A retailer that wants to target prospective grooms within six months of their marriage is using ________ segmentation to define its target market.

A) lifestyle
B) behavioral
C) socioeconomic
D) family life cycle
E) ethnicity

Question 57

During tax season, you're likely to see more TurboTax ads on Google pages, even if you aren't searching for tax software. This is an example of ________ segmentation.

A) geodemographic
B) psychographic
C) usage occasion
D) demographic
E) geotargeting

Question 58

Which of the following would be the best source for information about the size and number of companies operating in a particular industry in the United States?

A) PRIZM
B) AIO
C) VALS™
D) NAICS
E) ISP

Question 59

Which type of segmentation centers on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item?

A) usage occasions
B) psychographic
C) needs
D) demographic
E) geotargeting

Question 60

Using the strategy of ________, marketers give badges to reward consumers who have progressed through an application or activity.

A) microtargeting
B) concentrated targeting
C) gamification
D) perceptual mapping
E) brand anthropomorphism

Question 61

The members of Generation Y were born between 1965 and 1976.

Question 62

The long tail approach to segmentation indicates that companies can make money selling small amounts of items that only a few people want as long as they sell enough different items.

Question 63

The VALS™ system is a crucial part of geodemographic segmentation.

Question 64

Magazines targeted to people who love in-line skating, people who enjoy cooking, or people who prefer living more simply use ________ segmentation variables.

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

Question 65

The number of Americans aged 65 or older has decreased since 2000.

Question 66

Harley-Davidson's user profile includes both thrill-seeking and affinity for a countercultural image. In addition to demographics, Harley-Davidson uses ________ segmentation to target markets.

A) value analysis
B) social class
C) geodemographic
D) socioeconomic
E) psychographic

Question 67

Hispanic Americans tend to be brand loyal, especially to products made in their country of origin.

Question 68

Age and gender are examples of demographic segmentation variables.

Question 69

Starting in February and ending sometime in late April, department stores promote the fact that they stock a wide range of formal attire for high school proms. The dresses and tuxedos are available year-round, but the heaviest promotion of these products occurs in spring, when most proms are held. This spring promotion to high school students is based primarily on ________.

A) social class
B) psychographics
C) lifestyle
D) usage occasion
E) geodemography

Question 70

Many people only entertain in their homes during November and December when their homes are decorated for the holidays. The increase in ads for prepared trays of food to be served at these functions is directly related to ________ segmentation.

A) socioeconomic
B) geodemographic
C) geographic
D) demographic
E) usage occasion

Question 71

Gamification refers to market segmentation using video gaming as a lifestyle.

Question 72

To market Suave shampoo, Unilever used PRIZM to identify neighborhoods with high concentrations of young working women. These women responded best to advertisements conveying the message that Suave is inexpensive, yet will make their hair "look like they spend a fortune on it." What segmentation tool did Unilever use in this example?

A) geotargeting
B) geodemography
C) the hierarchy of needs
D) behavioral
E) family life cycle

Question 73

Which of the following is the best example of the long tail approach to selling?

A) Nearly 20 percent of the videos delivered by Netflix are older or obscure titles from its vast collection of videos.
B) Kraft Foods focuses on the 20 percent of U.S. households that purchase 80 percent of the Miracle Whip the company markets.
C) Barnes & Noble stocks the most popular books and magazines in its retail stores.
D) Google lets advertisers target certain ads to certain segments of search engine users.
E) Staples segments its business-to-business markets based on sales volume.

Question 74

Hispanic Americans are the fastest-growing minority group in the United States.

Question 75

Households making $100,000 or more represent only 20 percent of U.S. households but control more than half of all income earned in the United States.

Question 76

In comparison to trailing-edge Boomers, leading-edge Boomers spend a higher proportion of their income on non-discretionary items.

Question 77

People who are regular visitors to SyFy.com (a website maintained by a science fiction cable network) and those who are regular visitors to BHG.com (a website maintained by the producers of BHG-TV and the publishers of a women's magazine) belong to different ________ segments.

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

Question 78

A soup company found its canned nacho cheese sauce was too spicy for Americans in the East and not spicy enough for those in the West and the Southwest. As a result, the company's plants in Texas and California produce a hotter nacho cheese sauce than is produced in its other plants. The company is using ________ segmentation.

A) geographic
B) life cycle
C) psychographic
D) lifestyle
E) usage

Question 79

When compared to generations older than them, a greater proportion of Millennials have never been married.

Question 80

In 2012, women were more likely than men to marry someone with less education.