Deck 6: Market Segmentation and the Marketing Mix: Determinants of Campaign Strategy

Question 1

A manufacturer of a popular brand of orange juice introduces lemonade under the same brand name. This is known as private labeling.

Answer 1

False
Explanation: A company uses a family brand by marketing different products under the same umbrella name.

Question 2

Marketers can obtain lists of companies in particular NAICS divisions for direct mailings.

Answer 2

True
Explanation: The NAICS codes help companies segment markets and do research, and marketers can even obtain lists of companies in particular NAICS divisions for direct mailings.

Question 3

In the maturity stage of the product life cycle, prices tend to rise.

Answer 3

False
Explanation: In the maturity stage, the marketplace becomes saturated with competing products and the number of new customers dwindles, so industry sales reach a plateau.

Question 4

Psychographics enables marketers to view people as individuals with feelings and inclinations.

Question 5

The price of goods is not influenced by the costs of production and distribution.

Question 6

Network marketing refers to a centrally managed distribution system that serves a group of stores or other businesses.

Question 7

In volume segmentation, marketers rely on user-status variables to define consumers as light, medium, or heavy users of products.

Question 8

Product concept refers to the way the marketer mixes and blends the 4 Ps to create the company's marketing strategy.

Question 9

In terms of user status, discount users choose one brand exclusively.

Question 10

Demographic segmentation is a way to define population groups by their statistical characteristics: sex, age, ethnicity, education, occupation, income, and other quantifiable factors.

Question 11

Market concentration reduces the number of geographic targets for an advertiser.

Question 12

VALS, a psychographic segmentation scheme, divides consumers into eight psychological categories, including "I am driven" (motto: nothing ventured, nothing gained) and "I measure twice" (motto: an ounce of prevention).

Question 13

In addition to tangible benefits, customers are often motivated by symbolism-what the brand name means to them, to associates, or to some social reference group.

Question 14

Brand equity refers to the totality of what consumers, distributors, dealers, and competitors feel and think about a brand over an extended period of time.

Question 15

The product's package is a component of the promotion element of the marketing mix.

Question 16

VALS, a psychographic classification system, assigns consumers to one of eight groups based on two dimensions: primary motivation and resources.

Question 17

The process of market segmentation is a three-step process that begins with planning and ends with market identification.

Question 18

The target market for a company manufacturing dolls is most likely to be young children.

Question 19

When sales volume begins to rise rapidly, the product enters the maturity stage of the product life cycle.

Question 20

Differences between products that are readily apparent to the consumer are known as induced differences.

Question 21

Which of the following is a dimension on which VALS, a psychographic classification system, is based?

A)Geographic variables
B)Product characteristics
C)Primary motivation
D)Self-orientation
E)Product positioning

Question 22

In terms of user status, aware nontriers:

A)typically use a particular brand but have an alternative selection if it is not available or if the alternative is promoted with a discount.
B)use competitive products in the category but have not taken a liking to a particular brand.
C)perceive two or more brands to have superior attributes and will buy at full price.
D)choose one brand exclusively.
E)respond to a brand's IMC messages but do not like the product.

Question 23

Many people give fine chocolates as Christmas presents to friends and co-workers. There is an increase in the number of advertisements for gourmet chocolates during November and December, as companies try to create awareness about their products in the minds of consumers looking for the perfect gift. This is an example of segmentation on the basis of:

A)purchase occasion.
B)geographic location.
C)demographics.
D)user-status.
E)volume.

Question 24

Booklets, catalogs, brochures, sales kits, and annual reports are examples of personal selling materials.

Question 25

By marketing products to people who desire a luxurious lifestyle, a company is using _____ segmentation.

A)volume
B)psychographic
C)geodemographic
D)geographic
E)need-based

Question 26

Cell phone companies spend a lot of money to encourage heavy users of cell phones to buy plans that offer them additional talktime. This strategy is known as:

A)purchase occasion segmentation.
B)psychographic segmentation.
C)demographic segmentation.
D)geographic segmentation.
E)volume segmentation.

Question 27

A fast food chain aims to sell its burgers and milkshakes to teenagers and young adults. Additionally, this restaurant modifies its menu depending on the local tastes and preferences of the country where it is located. Which of the following market segmentation strategies does the restaurant employ?

A)Geodemographic segmentation
B)Psychographic segmentation
C)Behavioristic segmentation
D)Volume segmentation
E)Economic segmentation

Question 28

Free samples and premiums are linked to the communications function of the marketing mix and not the product element.

Question 29

In terms of user status, _____ perceive two or more brands to have superior attributes and will buy at full price.

A)repertoire users
B)aware nontriers
C)sole users
D)semi-sole users
E)trial/rejectors

Question 30

_____ segmentation is a way to define population groups by their statistical characteristics: sex, age, ethnicity, education, occupation, income, and other quantifiable factors.

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

Question 31

A manufacturer of wax for snow skis offers different versions of its product so that it is suitable for areas where the snow tends to be wet and heavy, in regions where the snow is packed, and in places where the snow is a fine powder. This is an example of _____ segmentation.

A)demographic
B)psychographic
C)geographic
D)volume
E)psychological

Question 32

Convenience goods are available at every possible location because of exclusive distribution.

Question 33

_____ segmentation enables marketers to view people as individuals with feelings and inclinations.

A)Demographic
B)Psychographic
C)Geodemographic
D)Behavioristic
E)Volume

Question 34

Telemarketing, a direct marketing technique, can help increase productivity through person-to-person phone contact.

Question 35

Which of the following is the first step of the market segmentation process?

A)To conduct advertising research to determine consumers' reactions to various ad campaigns
B)To identify groups of people with certain shared needs
C)To aggregate groups of people or organizations into larger market segments
D)To develop place, time, and possession utility
E)To determine which personal influences will have an appropriate effect on consumers

Question 36

The purpose of VALS, a _____ segmentation system, is to help marketers identify whom to target, uncover what the target group buys and does, locate where concentrations of the target group live, identify how best to communicate with them, and gain insight into why the target group behaves the way it does.

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

Question 37

A home building company specializes in constructing houses for old people. The houses are constructed with doors wide enough for wheelchairs to pass through, lever-operated door handles, roll-out shelves, and raised toilet seats. Which of the following types of market segmentation does this company employ?

A)Demographic segmentation
B)Psychographic segmentation
C)Geographic segmentation
D)Behavioristic segmentation
E)Volume segmentation

Question 38

_____ segmentation refers to a way of segmenting markets by grouping consumers according to the manner in which they buy products.

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

Question 39

In terms of user status, _____ are the most brand loyal and require the least amount of promotion.

A)discount users
B)sole users
C)semi-sole users
D)repertoire users
E)trial/rejectors

Question 40

The usual purpose of advertising is to inform, persuade, and remind customers about particular products and services.

Question 41

Which of the following is an example of an equipment-based service?

A)Waitressing
B)Hair dressing
C)Management consulting
D)Child care
E)Car rental services

Question 42

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

A)The target marketing process solely determines the budget of a company's advertising activities.
B)The first step in the target marketing process is to develop primary demand in a target market.
C)To perform the target marketing process correctly, an advertiser must select only one target market.
D)The target marketing process begins with determining the availability of advertising resources.
E)The first step in target marketing is to assess which of the newly created segments offer the greatest profit potential.

Question 43

In the _____ stage of the product life cycle, competition intensifies and profits diminish. Companies increase their promotional efforts but emphasize selective demand.

A)decline
B)introductory
C)maturity
D)growth
E)revitalization

Question 44

The _____ stage of the product life cycle is characterized by rapid market expansion as more and more customers, stimulated by mass advertising and word of mouth, make their first, second, and third purchases.

A)growth
B)introductory
C)maturity
D)decline
E)revitalization

Question 45

The North American Industry Classification System (NAICS) codes:

A)will soon be replaced by the strategic industrial classification.
B)are published by the North American Treaty Alliance.
C)organize all industries into 20 broad sectors such as mining, manufacturing, wholesale trade, and information.
D)have no relevance for industries outside the United States.
E)were developed in co-operation with Brazil and China.

Question 46

In the _____ stage of the product life cycle, the marketplace becomes saturated with competing products and the number of new customers dwindles, so industry sales reach a plateau.

A)decline
B)introductory
C)maturity
D)growth
E)revitalization

Question 47

The major activities of the _____ element of a marketing mix include the way the good or service is designed and classified, positioned, branded, and packaged.

A)utility
B)price element
C)distribution
D)product element
E)growth

Question 48

Which of the following is an example of a people-based service?

A)Dry cleaning
B)DVD vending kiosks
C)Management consulting
D)Drive-through car washing services
E)Automated teller machines

Question 49

A product which is in the introductory stage of the product life cycle will most likely target _____.

A)laggards
B)millennials
C)late adopters
D)Generation X
E)early adopters

Question 50

The _____ refers to the consumer's perception of the product as a bundle of values of utilitarian and symbolic values that satisfy functional, social, psychological, and other wants and needs.

A)product concept
B)marketing mix
C)product life cycle
D)communications mix
E)product differentiation strategy

Question 51

_____ refers to sales promotion efforts aimed at the retail trade.

A)Intensive distribution
B)A pull strategy
C)Direct marketing
D)A push strategy
E)Selective demand

Question 52

Consumer demand for a whole product category and not just the company's own brand is called _____ demand.

A)primary
B)selective
C)perceptible
D)collateral
E)aggregate

Question 53

During the _____ stage of the product life cycle, competitors jump into the market, but the company that established the early leadership position reaps the biggest rewards.

A)revitalization
B)introductory
C)maturity
D)growth
E)decline

Question 54

The _____ process determines the content, look, and feel of product advertisements.

A)target marketing
B)distribution
C)brand equity creation
D)segmentation
E)benchmarking

Question 55

Which of the following is true of business markets?

A)They have more buyers than consumer markets.
B)They use a more complex process than consumer markets to evaluate new products.
C)They can be segmented using psychological variables.
D)They depend only on price and quality to make purchase decisions.
E)They do not employ professional buyers.

Question 56

A fast food restaurant buys the liquid concentrate used to make fountain drinks from a supplier. Then, it sells the reconstituted drink to its customers. The restaurant is an example of a(n) _____.

A)consumer market
B)government market
C)reseller
D)wholesaler
E)early adopter

Question 57

Which of the following activities is most likely to take place in a business market?

A)Sale of a personal toolkit for home repairs
B)Renting an apartment to a college student
C)Hiring a babysitter for the evening
D)Sale of buttons and zippers to a jeans manufacturing company
E)A financial transaction at a law firm between a lawyer and his client

Question 58

During the _____ phase of the product life cycle, the company incurs considerable costs for educating customers, building widespread dealer distribution, and encouraging demand.

A)decline
B)introductory
C)maturity
D)growth
E)revitalization

Question 59

To appeal to a new target market, a coffee manufacturer changed the product's package design, reformulated the coffee, began advertising price discounts in magazines, and started distributing samples of the new product at coffee shops. In this scenario, the coffee manufacturer changed the _____ in order to boost sales.

A)product volume
B)marketing mix
C)product life cycle
D)product line
E)brand benefits

Question 60

If products are not revitalized, they will enter the _____ stage of the product life cycle due to obsolescence, new technology, or changing consumer tastes.

A)pioneer
B)decline
C)maturity
D)saturation
E)growth

Question 61

Which of the following products would be best suited for intensive distribution?

A)Cell phones
B)Batteries
C)Bed linen
D)Perfumes
E)Dinner sets

Question 62

Which of the following is true of intensive distribution?

A)The profit on each unit is usually very high.
B)The volume of sales is very low.
C)Consumers can buy products with a minimum of effort.
D)The sales burden is carried by the retailer.
E)Products sold through intensive distribution are available only at select locations.

Question 63

When companies manufacture a product and sell it to resellers (distributors or dealers), who put their own brand on the product, it is called a(n) _____ strategy.

A)individual branding
B)brand licensing
C)family branding
D)private-labeling
E)national branding

Question 64

Which of the following is true about resellers?

A)They operate between the producer and the consumer or industrial purchaser.
B)They deal in production rather than trade.
C)They are the intermediaries employed by manufacturers in direct distribution.
D)They include both wholesalers and retailers, but not manufacturers' representatives.
E)They are used primarily in network marketing.

Question 65

Which of the following is true of the key factors influencing price?

A)A company's objectives are not related to the price of its products.
B)Economic conditions, government regulations and marketing costs influence product prices.
C)When introducing a product, companies initially set a low price to attract more consumers.
D)As the risks associated with new products diminish, consumers are no longer willing to pay high prices.
E)In the later stages of the product life cycle, prices tend to rise.

Question 66

The difference between regular soup and organic soup is not readily visible. The organic brand differentiates itself by claiming to be healthier as it uses natural ingredients and vegetables that have been grown without the use of harmful chemical fertilizers. This is an example of a(n) _____.

A)hidden difference
B)perceptible difference
C)induced difference
D)induced difference
E)perceptual filter

Question 67

Many industrial companies market their products through reps or distributors to _____ who may use the product as a component in their own product, which is then sold to their customers.

A)resellers
B)brokers
C)private labels
D)jobber
E)original equipment manufacturers

Question 68

When a company uses a(n) _____ brand, it markets different products under the same umbrella name.

A)individual
B)family
C)private
D)licensed
E)local

Question 69

Which of the following products should be exclusively distributed?

A)Breakfast cereal
B)A blender
C)Pet food
D)Fashion magazines
E)Luxury watches

Question 70

Which of the following is true about product packaging?

A)Packaging must reflect the tone, image, and personality of the product concept in order to penetrate consumers' psychological screens.
B)Packages should offer high visibility and legibility to penetrate shoppers' psychological screens.
C)As a rule, companies should change their product packaging at least once every three years.
D)Subtle changes in the color of a product's packaging generally do not have an impact on sales.
E)Contrary to popular belief, consumers do not associate package quality with product quality.

Question 71

_____ represent(s) the value of a brand's capital.

A)Brand architecture
B)Brand recall
C)Brand elements
D)Brand identity
E)Brand equity

Question 72

A(n) _____ includes all the firms and individuals that take title or assist in taking title to the product as it moves from the producer to the consumer.

A)distribution channel
B)copy point
C)early adopter
D)national brand
E)private label

Question 73

_____ occurs when individuals act as independent distributors for a manufacturer or private-label marketer.

A)Indirect marketing
B)Network marketing
C)Viral marketing
D)Relationship marketing
E)Guerrilla marketing

Question 74

The basic goal of a positioning strategy is to:

A)own a word that ranks the product in the prospect's mind.
B)communicate the intangible benefits provided by a product or service.
C)help consumers understand a company's overall vision.
D)minimize product differentiation.
E)create and maintain primary demand for a product.

Question 75

A cosmetics company allows customers to purchase its products through its Web site. This represents _____ distribution.

A)selective
B)multilevel
C)direct
D)intensive
E)network

Question 76

Which of the following is true of a manufacturer's brand?

A)It is typically sold at lower prices in large retail chain stores.
B)The responsibility for creating the brand image rests with the distributor or retailer.
C)It is expensive for manufacturers to market such brands.
D)It is sold to retailers for a fee who put the manufacturer's brand on their own in-house products.
E)It is of lesser value compared to private labels.

Question 77

Cyber-shot, VAIO, and BRAVIA are just some of the brand names used by Sony, one of the leading manufacturers of consumer electronics, to markets its digital cameras, laptops, and LCD televisions, respectively. These are all examples of _____.

A)Individual brands
B)Local brands
C)Aggregate brands
D)Private labels
E)Licensed brands

Question 78

In the case of selective distribution:

A)manufacturers can charge low prices.
B)the profit on each unit is usually very low.
C)consumers can buy products with minimum effort.
D)manufacturers can cut their distribution and promotion costs.
E)the sales burden is carried by the manufacturer.

Question 79

Pantene, Head & Shoulders, and Herbal Essences are all shampoos marketed by Procter & Gamble. Each of these brands has their own distinct image and target markets. These are examples of _____ brands.

A)private
B)licensed
C)individual
D)family
E)aggregate

Question 80

_____ distribution provides the ability to maintain a prestige image and premium prices.

A)Direct
B)Intensive
C)Selective
D)Exclusive
E)Cooperative