Deck 2: The Role of IMC in the Marketing Process

Question 1

Segmenting the market based on consumers' product or brand usage and the degree of use is an example of behavioristic segmentation.
Dividing consumers into groups according to their usage, loyalties, or buying responses to a product is behavioristic segmentation.For example, product or brand usage, degree of use (heavy vs.light), and/or brand loyalty are combined with demographic and/or psychographic criteria to develop profiles of market segments.

Answer 1

True

Question 2

Brand equity refers to the tangible assets earned through a product's functional purpose.
Brand equity can be thought of as an intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and/or the strength of consumer attachment to a company name, brand name, or trademark.

Answer 2

False

Question 3

The positioning by competitor approach positions a product by associating it with a particular user or group of users.
Positioning a product by associating it with a particular user or group of users is positioning by product user.The competition approach positions the product by comparing it and the benefit it offers versus the competition.

Answer 3

False

Question 4

Target market identification isolates consumers with similar lifestyles, needs, and the like, and increases the knowledge of their specific requirements.
Target market identification isolates consumers with similar lifestyles, needs, and the like, and increases our knowledge of their specific requirements.The more marketers can establish this common ground with consumers, the more effective they will be in addressing these requirements in their communications programs.

Question 5

Differentiated marketing is used when the firm selects one segment and attempts to capture a large share of this market.
Differentiated marketing involves marketing in a number of segments, developing separate marketing strategies for each.Concentrated marketing is used when the firm selects one segment and attempts to capture a large share of this market.

Question 6

When positioning by product class, marketers only position against brands, and not against other product categories.
Often the competition for a product comes from outside the product class.Rather than positioning against another brand, an alternative strategy is to position oneself against another product category.

Question 7

Marketers often go after the entire market with one product, brand, or service offering to create the maximum impact.
Marketers rarely go after the entire market with one product, brand, or service offering.Rather, they pursue a number of different strategies, breaking the market into segments and targeting one or more of these segments for marketing and promotional efforts.

Question 8

A marketer with an integrated marketing communications (IMC) perspective is likely to link high relative ad expenditures with premium prices, and low relative ad expenditures with low prices.
High relative ad expenditures should accompany premium prices, and low relative ad expenditures should be tailored to low prices.These results obviously support the IMC perspective that one voice must be conveyed.

Question 9

The determination of lifestyles is usually based on an analysis of the activities, interests, and opinions (AIOs) of consumers.
The determination of lifestyles is usually based on an analysis of the activities, interests, and opinions (AIOs) of consumers.These lifestyles are then correlated with the consumers' product, brand, and/or media usage.

Question 10

Premium brands positioned at the high end of the market usually use the price/quality approach to positioning.
Marketers often use price/quality characteristics to position their brands.One way they do this is with ads that reflect the image of a high-quality brand where cost, while not irrelevant, is considered secondary to the quality benefits derived from using the brand.Premium brands positioned at the high end of the market use this approach to positioning.

Question 11

The more marketers segment the market, the less precise is their understanding of it.
The more marketers segment the market, the more precise is their understanding of it.Market segmentation is dividing a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action.

Question 12

Dominating channels of distribution is one way of creating a competitive advantage
Ways to achieve a competitive advantage include having quality products that command a premium price, providing superior customer service, having the lowest production costs and lower prices, or dominating channels of distribution.Competitive advantage can also be achieved through advertising that creates and maintains product differentiation and brand equity.

Question 13

Repositioning of a product usually occurs because of declining or stagnant sales.
Repositioning a product usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions.Repositioning is often difficult to accomplish because of entrenched perceptions about and attitudes toward the product or brand.

Question 14

Strong symbolic features and social and psychological meaning may be more important than functional utility for many products.
For many products, strong symbolic features and social and psychological meaning may be more important than functional utility.For example, designer clothing such as Versace, Gucci, and Prada is often purchased on the basis of its symbolic meaning and image, particularly by teenagers and young adults.

Question 15

In a typical target marketing process, the stage of segmenting the market is immediately followed by positioning one's product or service through effective marketing strategies.
A typical target marketing process involves four basic steps: identifying markets with unfulfilled needs, segmenting the market, targeting specific segments, and positioning one's product or service through marketing strategies.

Question 16

Market opportunities are areas where the company believes that customer needs and opportunities are being satisfied.
Market opportunities are areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively.

Question 17

When a market is segmented based on personality, lifecycles, and/or lifestyles, it is referred to as demographic segmentation.
When marketers divide the market on the basis of personality, lifecycles, and/or lifestyles, it is referred to as psychographic segmentation.

Question 18

In the geographic segmentation approach, markets are divided into units based on consumers' occupations and lifestyles.
In the geographic segmentation approach, markets are divided into different geographic units.These units may include nations, states, counties, or even neighborhoods.Consumers often have different buying habits depending on where they reside.

Question 19

A market can rarely be viewed as one large, homogeneous group of customers; rather, it consists of many heterogeneous groups, or segments.
A market can rarely be viewed as one large homogeneous group of customers; rather, it consists of many heterogeneous groups, or segments.In recent years, many companies have recognized the importance of tailoring their marketing to meet the needs and demand trends of different market segments.

Question 20

Industrial marketers refer to the 80-20 rule, meaning that 20 percent of their buyers account for 80 percent of their sales volume.
A few consumers may buy a disproportionate amount of many products or brands.

Question 21

Offering quality products that command a premium price, providing superior customer service, having the lowest production costs and lower prices, or dominating channels of distribution are ways of

A)achieving a competitive advantage.
B)practicing cross-merchandising strategy.
C)creating market space.
D)practicing bait-and-switch marketing.
E)establishing a marketing stub.

Question 22

_____ is defined as something unique or special a firm possesses or does that gives it an edge over other firms in a similar industry.

A)Competitor indexing
B)Switch marketing
C)Competitive advantage
D)Marketing stub
E)Bait-and-switch marketing

Question 23

Directing a company's efforts toward one or more groups of customers who share common needs is known as

A)cross-merchandising.
B)competitor indexing.
C)mass customization.
D)target marketing.
E)cross-branding.

Question 24

FunZone Inc.identified and developed a SmartCard that can be used at fair grounds to make the ticketing process easier.The company found that the existing system was complicated and highly time-consuming.The SmartCard was easy to operate and each swipe would deduct the cost of a ride automatically.According to the given scenario, FunZone has recognized a

A)market opportunity.
B)marketing buzz.
C)marketing engagement.
D)marketing channel.
E)market threat.

Question 25

When Coca-Cola wanted to regain market share for its vitaminwater product lines, it based its marketing strategy on a __________________, or a detailed assessment of the current marketing conditions facing the company, its product lines, and its individual brands.

A)matrix analysis
B)micro analysis
C)situation analysis
D)challenge analysis
E)competitive analysis

Question 26

During a routine market study conducted by CL Foods, it was noted that Chinese and Indian food products were in high demand in American society.In order to take advantage of such a demand, CL Foods manufactured and sold these food items locally.In this scenario, the company is taking advantage of a

A)market opportunity.
B)market aggregation.
C)market assimilation.
D)marketing buzz.
E)market threat.

Question 27

According to the marketing and promotions process model, the marketing process begins with the

A)development of the brand equity.
B)development of a marketing strategy.
C)development of the promotional mix.
D)determination of the promotional budget.
E)establishment of a nano-campaign marketing strategy.

Question 28

Which of the following is best defined as areas where there are favorable demand trends, customer needs and wants are not being satisfied, and where a company thinks it can compete effectively?

A)market segmentations
B)marketing channels
C)marketing stubs
D)market economics
E)market opportunities

Question 29

___________________ can be achieved through advertising that creates and maintains product differentiation and brand equity, as with the long-running advertising campaign for Michelin tires, which stressed security and performance.

A)Market aggregation
B)Marketing assimilation
C)Brand extensions
D)Competitive advantage
E)Market disintermediation

Question 30

Most consumer-product companies distribute through direct channels.
Most consumer-product companies distribute through indirect channels, usually a network of wholesalers and/or retailers.

Question 31

The Manischewitz company broadened its marketing efforts to capture more of the mainstream market following a(n) ____________________________, which identified favorable demand trends for ethnic foods.

A)positioning strategy
B)opportunity analysis
C)budget analysis
D)promotional push strategy
E)promotional pull strategy

Question 32

A situational analysis

A)does not include an assessment of a company's product lines.
B)usually starts with a positioning strategy.
C)does not include an assessment of the conditions facing the company.
D)typically involves creating branding strategies.
E)includes an assessment of a company's individual brands.

Question 33

The strong brand images of Apple, Samsung, Nike, BMW, and McDonald's give them a ___________________ in their respective markets.

A)competitive advantage
B)market opportunity
C)micro advantage
D)macro analysis
E)marketing challenge

Question 34

John & Bauer Inc., manufacturers of health drugs, are the manufacturers of a painkiller called JB Revive.The painkiller is unique as it contains calcium, and it is quite unlike any other painkiller in the market.The addition of calcium led to an increase in sales of the medicine as well.In this scenario, the addition of calcium gives the company a

A)market engagement.
B)cross-merchandising opportunity.
C)competitive advantage.
D)marketing assimilation.
E)competitive index.

Question 35

There are several medicines that relieve allergy-related symptoms but only Sensitine comes in a quick dissolving form that can be easily swallowed without water.The manufacturer of Sensitine hopes the fact that it dissolves and enters the system more quickly than other brands will create a

A)market aggregation.
B)marketing assimilation.
C)competitive advantage.
D)cross-merchandising strategy.
E)market disintermediation.

Question 36

The first step in the target marketing process is to

A)develop positioning strategies.
B)request government approval.
C)determine whether to use a market segmentation strategy or a mass marketing strategy.
D)identify markets with unfulfilled needs.
E)develop new products.

Question 37

Trade advertising focuses on sales promotion efforts directed toward the ultimate consumer.
Trade advertising focuses on wholesalers and retailers and motivates them to purchase products for resale to their customers.An alternative strategy is a promotional pull strategy, which spends money on advertising and sales promotion efforts directed toward the ultimate consumer.

Question 38

The market segmentation process

A)divides a market into distinct groups that have heterogeneous needs.
B)divides a market into distinct groups that will respond similarly to marketing actions.
C)offers one version of the product to all markets.
D)creates products for several markets that have independent needs.
E)positions products in the minds of prospects and customers.

Question 39

_____ is a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands.

A)Matrix analysis
B)Micro analysis
C)Situation analysis
D)Opportunity analysis
E)Competitive analysis

Question 40

According to the marketing and promotions process model, in which of the following stages does the company decide the product or service areas and particular markets where it wants to compete?

A)development of a marketing strategy and analysis
B)development of the target marketing process
C)allocation of advertising budget
D)development of the marketing planning program
E)creation of a positioning strategy

Question 41

Jim's Inc., a travel agency in Texas, offers trips that are designed specifically for couples.In this scenario, the company is using _____ segmentation.

A)geographic
B)demographic
C)lifestyle
D)behavior
E)personality

Question 42

Which of the following is a geographic variable for segmentation of the market?

A)family size
B)occasions
C)counties
D)age
E)gender

Question 43

Delish Inc., a food manufacturer, introduced an instant soup specially designed for and advertised in the colder regions of Asia and Europe.This is an example of

A)demographic segmentation.
B)psychographic segmentation.
C)sociocultural segmentation.
D)geographic segmentation.
E)undifferentiated marketing.

Question 44

Pluto Inc., a car manufacturer, makes high-end, expensive sports cars.The company targets people who live life in the fast lane and are generally considered to have flashy personalities.In this scenario, Pluto is using _____ segmentation.

A)benefit
B)psychographic
C)socioeconomic
D)undifferentiated
E)demographic

Question 45

Merry Inc.is a nonprofit organization that employs a large number of underprivileged people.It sells art and handicrafts made by these individuals at reasonable prices.Merry's target market consists of people who believe in helping others.It uses _____ segmentation.

A)geographic
B)psychographic
C)benefit
D)socioeconomic
E)demographic

Question 46

Which of the following is a primary variable of demographic segmentation?

A)lifestyle
B)personality
C)region
D)marital status
E)involvement

Question 47

When , targets the 34 percent of the population who are 50+, it is using a _____________________ segmentation strategy.

A)demographic
B)socioeconomic
C)behavior
D)personality
E)geographic

Question 48

Which of the following is a geographic segmentation variable?

A)income
B)neighborhood
C)sex
D)education
E)involvement

Question 49

Dividing the market into units such as nations, states, counties, or even neighborhoods is known as

A)demographic segmentation.
B)psychographic segmentation.
C)quantified aggregation.
D)lifestyle aggregation.
E)geographic segmentation.

Question 50

________________ is dividing a market into distinct groups that (1) have common needs, and (2) will respond similarly to a marketing action.

A)Market segmentation
B)Competitor indexing
C)Mass customization
D)Cross merchandising
E)Cross-branding

Question 51

Division of the market based on age, gender, household size, and other measurable characteristics is known as

A)demographic segmentation.
B)psychographic segmentation.
C)socioeconomic segmentation.
D)geographic segmentation.
E)undifferentiated segmentation.

Question 52

Venus Finance aired a series of ads that targeted people born between 1980 and 1994.In this scenario, the company is using a _____ segmentation strategy.

A)geographic
B)demographic
C)socioeconomic
D)behavioristic
E)personality

Question 53

_____ divides a market on the basis of lifestyles.

A)Geographic segmentation
B)Psychographic segmentation
C)Benefit segmentation
D)Demographic segmentation
E)Socioeconomic segmentation

Question 54

Which of the following is a variable of the demographic segmentation strategy?

A)personality
B)marital status
C)values
D)lifestyle
E)region

Question 55

Brown's Frozen BBQ Sandwiches are made with goat meat drenched in a sweet onion sauce.These sandwiches would not be popular in Texas, where people prefer beef, or in Miami, where a mustard-based sauce is preferred.Which of the following segmentation approaches would be best for the company, based on its desire to target specific regions?

A)demographic
B)socioeconomic
C)personality
D)geographic
E)behavioristic

Question 56

Dividing the market on the basis of personality, lifecycles, and/or lifestyles is referred to as

A)geographic segmentation.
B)demographic segmentation.
C)psychographic segmentation.
D)socioeconomic segmentation.
E)behavioral segmentation.

Question 57

Brown's Foods determined that Southerners preferred milder mustard than those in the Northeast.This led the company to develop a new "Southern Style Mustard." This strategy best exemplifies

A)geographic segmentation.
B)lifestyle segmentation.
C)socioeconomic segmentation.
D)demographic segmentation.
E)usage segmentation.

Question 58

With respect to psychographic segmentation of markets, AIO stands for

A)activities, innovation, and opinions.
B)activities, interests, and opportunities.
C)activities, innovations, and opportunities.
D)activities, interests, and opinions.
E)actions, interests, and opinions.

Question 59

Which of the following is a primary variable used in psychographic segmentation?

A)income
B)lifestyles
C)education
D)marital status
E)age

Question 60

Enliven, a sports drink manufacturer, has identified its preferred target market as men between the ages of 18 and 22 who are currently in high school or college and active in sports.Which of the following types of segmentation is Enliven using in this scenario?

A)benefit and demographic
B)psychographic and geographic
C)geographic and psychographic
D)socioeconomic and psychographic
E)demographic and psychographic

Question 61

With respect to the market coverage alternatives, _____ involves developing separate marketing strategies for a number of segments.

A)differentiated marketing
B)undifferentiated marketing
C)concentrated marketing
D)buzz marketing
E)B2B marketing

Question 62

Chill, a beverage manufacturer, offers varied versions of its products that include diet, cherry-flavored, vanilla-flavored, and caffeine-free versions in addition to its original product.With respect to market coverage alternatives, the given scenario reflects the company's decision to cater to

A)a concentrated market.
B)a differentiated market.
C)a buzz market.
D)an undifferentiated market.
E)a mass market.

Question 63

WristTactical, a watch manufacturer, specializes in manufacturing tactical watches for Navy divers.The company launched an ad campaign that stressed the water-resistant and endurance characteristics of its watches.In this scenario, WristTactical is making use of _____ segmentation.

A)benefit
B)demographic
C)geographic
D)behavioristic
E)socioeconomic

Question 64

_____ segmentation is most closely related to the 80-20 rule, which states that 80 percent of a company's business comes from 20 percent of its customers.

A)Geographic
B)Behavioristic
C)Demographic
D)Psychographic
E)Benefit

Question 65

Degree of usage as a basis of segmentation is best reflected by

A)the VALS principle.
B)the iceberg principle.
C)the mirror image rule.
D)the rule of equity.
E)the 80-20 rule.

Question 66

_____ is used when the firm selects one segment and attempts to capture a large share of the market.

A)Mass marketing
B)Undifferentiated marketing
C)Concentrated marketing
D)Differentiated marketing
E)Bait-and-switch marketing

Question 67

Which of the following is true of undifferentiated marketing?

A)It involves selecting one segment and attempting to capture a large market share.
B)It involves offering just one product or service to the entire market.
C)It involves creating a niche for a special product line.
D)It involves customizing products for various target segments.
E)It involves developing and offering a product for a specific market segment.

Question 68

_____ segmentation is the grouping of customers on the basis of attributes sought in a product.

A)Benefit
B)Geographic
C)Socioeconomic
D)Demographic
E)Lifestyle

Question 69

Which of the following types of segmentation is employed when consumers are grouped according to their usage and buying responses to a product or service?

A)behavioristic
B)demographic
C)benefit
D)socioeconomic
E)psychographic

Question 70

_____ segmentation divides consumers into groups according to their usage, loyalties, or buying responses to a product.

A)Benefit
B)Geographic
C)Demographic
D)Behavioristic
E)Psychographic

Question 71

Frosty Inc., a beverage manufacturer, only had one product in its line and was targeting all types of customers.With respect to the market coverage alternatives, which of the following best characterizes the approach used by the company?

A)concentrated marketing
B)undifferentiated marketing
C)bait-and-switch marketing
D)niche marketing
E)psychographic marketing

Question 72

According to the market coverage alternatives, _____ involves ignoring segment differences and offering just one product or service for the entire market.

A)bait-and-switch marketing
B)concentrated marketing
C)micromarketing
D)neuromarketing
E)undifferentiated marketing

Question 73

The fact that some consumers want flavored bottled water and others want it with added minerals provides an opportunity for _____ segmentation.

A)socioeconomic
B)benefit
C)geographic
D)psychographic
E)demographic

Question 74

Which of the following is a primary variable considered in benefit segmentation?

A)attributes sought
B)income
C)lifestyle
D)birth era
E)marital status

Question 75

Which of the following is a primary variable defined in psychographic segmentation?

A)personality
B)income
C)education
D)family size
E)gender

Question 76

Momentum, a brand of sports cars, launched an advertising campaign with a tagline that states, "Our cars outperform most cars on the road even before you step on the accelerator." In this scenario, the company is using _____ segmentation as it targets its product to satisfy consumers who want to satisfy performance needs.

A)benefit
B)demographic
C)geographic
D)socioeconomic
The above scenario is an illustration of benefit segmentation.The grouping of consumers on the basis of attributes sought in a product is known as benefit segmentation and is widely used.

Question 77

A company that divides its target markets based on their perceived level of loyalty is using

A)benefit segmentation.
B)geographic segmentation.
C)socioeconomic segmentation.
D)behavioristic segmentation.
E)outlet segmentation.

Question 78

Mars Inc., a car manufacturer, offers cheap coupes, medium-priced sedans, as well as expensive sports cars.The company identifies and develops various products for several segments.This scenario is an illustration of

A)concentrated marketing.
B)loyalty marketing.
C)buzz marketing.
D)bait-and-switch marketing.
E)differentiated marketing.

Question 79

Dental Care, a dental hygiene products manufacturer, has come up with three types of toothpastes for different segments-whitening toothpaste for individuals who buy for aesthetic reasons, strawberry-flavored toothpaste for those concerned with the taste, and germ-control toothpaste for those looking to protect their teeth all day long.On what basis has it segmented the market?

A)demographic
B)geographic
C)socioeconomic
D)benefit
E)sociocultural

Question 80

The 80-20 rule states that

A)around 80 percent of a company's sales comes from 20 percent of the customers.
B)only 80 percent of a market can be segmented.
C)market segmentation works well only 80 percent of the time, unlike market assimilation which works 20 percent of the time.
D)only about 80 percent of the people remember the company's positioning of a product while the remaining 20 percent create their own positioning for a particular product.
E)about 80 percent of corporations do not understand the actual meaning of the term "market segmentation."