Deck 4: Segmentation, Targeting, and the Marketing Mix

Question 1

Exchange is the traditional trading of values between two entities facilitated by marketing.

Answer 1

True

Question 2

Purchase occasion is a psychographic variable used to segment consumer markets.

Answer 2

False

Question 3

Advertising for a movie that describes the film as a "family-filled riot of fun" is relying on benefit segmentation.

Answer 3

True

Question 4

A challenge of market segmentation is estimating a firm's potential profits if it focuses on the whole market or only to specific segments.

Question 5

Distribution and promotion costs in selective distribution tend to increase as the number of outlets is limited.

Question 6

Advertisers use NAICS codes to obtain lists of companies for direct mailings.

Question 7

Consumers are mostly immune to psychological pricing.

Question 8

The process of market segmentation is a three-step process that begins with planning, defining the product, and identifying the market.

Question 9

Differences between products that are readily apparent are called position differences.

Question 10

A marketer of Kikkoman brand soy sauce would need to stimulate selective demand for its new line of low-sodium sauces.

Question 11

Psychographics are useful in the marketing of all products because psychographic systems are, such as VALS, are easy to use.

Question 12

A target market can be classified into two types, namely, consumer markets and business markets.

Question 13

When the manufacturer of Kikkoman brand soy sauce introduced Kikkoman brand low-sodium soy sauce, it used private labeling by emphasizing the Kikkoman tradition and quality.

Question 14

Primary demand refers to consumer demand for a specific brand within a product category.

Question 15

One of the primary roles of advertising is to communicate product utility.

Question 16

The first step in market aggregation is to determine the primary demand trend within the targeted market.

Question 17

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

Question 18

To reach people who love to hunt, markets would most likely use psychographic segmentation.

Question 19

Demographic segmentation would most likely be used to sell Fulla, a doll designed to embody the image of a proper Muslim woman.

Question 20

Network marketing is also called pyramid marketing.

Question 21

With _____, marketers group people by their values, attitudes, personality, and lifestyle.

A) demographics
B) psychographics
C) geodemographics
D) attitudinal positioning
E) lifestyle positioning

Question 22

According to the research of Stephan and Tannenholz, _____ are the most brand loyal group and require the least amount of promotion.

A) early adopters
B) innovators
C) sole users
D) early majority
E) laggards

Question 23

Market segmentation is a two-step strategic process, and the first step is to:

A) conduct advertising research that determines consumers' reactions to various ad campaigns.
B) identify groups of people with certain shared characteristics within the broad product market.
C) locate as many market niches as possible that will be profitable for the firm.
D) develop place, time, service, and possession utility.
E) determine which personal influences will have the appropriate effect on consumers.

Question 24

Over the past decade, brands that were once available only to the wealthy have created more affordable product extensions, giving a far broader range of consumers a taste of the good life. Jaguar, for instance, launched its X-type sedan, which starts at $30,000 and is meant for the "almost rich" consumer who aspires to live in luxury. By marketing to people who desire a luxurious lifestyle, Jaguar is using:

A) demographic segmentation.
B) psychographic segmentation.
C) geodemographic segmentation.
D) attitudinal positioning.
E) lifestyle positioning.

Question 25

The Values and Lifestyles (VALS) typology uses a two-dimensional structure based on:

A) geographic variables and consumer perceptions.
B) consumer behavior and product characteristics.
C) primary motivation and resources.
D) self-orientation and product differentiation.
E) target marketing strategy and product positioning strategy.

Question 26

Home builders are using _____ segmentation to target people over 55 with homes that have wheelchair-friendly door widths, lever door handles, roll-out shelves, raised toilets, and direct 911 wiring.

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

Question 27

Intensive distribution involves limiting the number of wholesalers who can sell a product in order to gain a prestige image or maintain premium prices.

Question 28

Exclusive distribution is a strategy commonly used in the high fashion apparel industry.

Question 29

With an administered vertical marketing system, one company owns multiple levels of the distribution or production channel.

Question 30

Customers who might buy Muir Glen brand organic soups are people who like soup, want to try something different, don't have time to cook, worry about putting chemicals in their bodies, and are vegetarians. These various groups who may be in the market for Muir Glen soups are all examples of:

A) innovators.
B) market segments.
C) market aggregations.
D) diffusers.
E) buying centers.

Question 31

_____ is the product's ability to satisfy both functional needs and symbolic wants.

A) Market position
B) Product satisfaction
C) Product equity
D) Product utility
E) Market satisfaction

Question 32

Hard apple cider is making a comeback. Cider consumption is expected to hit 15 million cases annually this decade. Early adopters of cider are the same group that first gravitated to the microbreweries. Apple cider's drinkers like the notion that it is basically a fruit drink. It conjures up healthy associations and appeals to people who do not view themselves as serious connoisseurs. What segmentation variable would you recommend Woodchuck Draft Cider use to define its market?

A) Usage rate
B) Geographic
C) Demographic
D) Psychographic
E) Purchase occasion

Question 33

The ad for Pepperidge Farm products reads, "Filling your kitchen with delicious aromas is a great way to ensure that your Thanksgiving holiday will be full of joyful anticipation." It would seem that the manufacturer of these products is using:

A) demographic segmentation.
B) behavioristic segmentation.
C) temporal segmentation.
D) psychographic positioning.
E) lifestyle segmentation.

Question 34

Harris Teeter Inc. is a chain of supermarkets in the Atlanta area. In one of its stores in a predominantly Jewish neighborhood, the store has three rabbis on staff who make sure the foods sold at the store are kosher. Every Harris Teeter store has distinct characteristics that align it with the neighborhood in which it is located. The chain is using _____ segmentation.

A) geodemographic
B) psychographic
C) behavioristic
D) geographic
E) psychological

Question 35

Cell phone companies spend many advertising dollars appealing to people who are already heavy users of cell phones to encourage them to buy plans that offer them additional minutes. These cell phone companies are using:

A) purchase-occasion segmentation.
B) psychographic positioning.
C) demographic segmentation.
D) lifestyle segmentation.
E) volume segmentation.

Question 36

The Visitors Bureau of Greenville, Mississippi, uses an ad with the following headline: "Join some others who got inspired here" and then lists the famous authors that came from that part of the state. The message in this headline indicates the city is using _____ to attract tourists.

A) psychographic positioning
B) benefit segmentation
C) demographic segmentation
D) geodemographic segmentation
E) volume segmentation

Question 37

In the U.S., more than 40 percent of all retail sales are made through franchise outlets.

Question 38

Many people give fine chocolates as Christmas presents to friends and co-workers. The only time of year you will see Ferrero Rocher chocolates advertised is during November and December as the company tries to create awareness for its product in the minds of consumers looking for that perfect utilitarian gift. This would be an example of:

A) purchase-occasion segmentation.
B) psychographic positioning.
C) demographic segmentation.
D) lifestyle segmentation.
E) volume segmentation.

Question 39

Manufacturers' representatives, distributors, and retailers are considered resellers.

Question 40

Gary Silva, senior vice president of sales, U.S. Auto Parts Group at Genuine Parts, says NAPA doesn't have a cookie-cutter layout but builds stores based on market need, with each designed independently. "It would be easier if all the stores had the exact same layout, but it's not the right thing to do for independent owners because some areas have more professional customers and others have more do-it-yourselfers," he explained. From this information, you know that NAPA targets both _____ markets.

A) domestic and international
B) internal and external
C) demographic and psychographic
D) business and consumer
E) non-controllable and controllable

Question 41

Before starting Pedigree Pajamas, the owner of the company realized that he was treating his dog as if it were a child and that a lot of his friends did the same thing. So in what he perceived as a dog-friendly environment, he launched a line of doggie pajamas-available from size 6 for Chihuahuas to size 30 for Great Danes. The ads for Pedigree Pajamas had to convince people that dogs slept better in pajamas. A product that has to create primary demand is more than likely in the _____ stage of the product life cycle.

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

Question 42

The _____ element of the marketing mix includes the way the product is designed and classified, positioned, branded, and packaged.

A) utility
B) communication
C) distribution
D) product
E) customer

Question 43

The _____ for Huggies disposable washcloths is most likely first-time parents with a significant amount of discretionary income who value their time more highly than they value their environment.

A) product utility
B) customer group
C) target market
D) market aggregate
E) marketing mix

Question 44

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

A) The target marketing process will determine the content, look, and feel of a company's advertising.
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 a single target market.
D) From the view of a marketer, the target marketing process begins with setting the advertising budget.
E) The first step in target marketing is to assess the viability of the markets identified by the market segmentation process.

Question 45

What is the next step for a marketer once market segmentation has been done?

A) Target marketing process
B) Budgeting process
C) Mission statement
D) SWOT analysis
E) Competitive assessment

Question 46

When pharmaceutical companies began advertising directly to consumers, it was an example of ____. The pharmaceutical companies realized that consumer demand influences which medications a physician will prescribe.

A) indirect consumer marketing
B) promotion equity
C) scrambled promotion
D) a push strategy
E) a pull strategy

Question 47

Drawing on almost 50 years of experience, Cotton Council International (CCI), the export promotion arm of the National Cotton Council is devoted to expanding U.S. cotton exports by capitalizing on consumer preference for cotton fiber and its products. CCI spends promotional dollars advertising the benefits of 100 percent cotton clothing. CCI uses:

A) indirect consumer marketing.
B) promotion equity.
C) scrambled promotion.
D) a push strategy.
E) a pull strategy.

Question 48

Which of the following is one of the bases for making purchase decisions in the business market and should be emphasized in promotional appeals?

A) Product demonstrations
B) Brand equity
C) Wholesaler
D) Retailer
E) Market concentration

Question 49

_____ is the pattern of attitudes and activities that help people modify their social and self-image.

A) Primary motivation
B) Attribution theory
C) Reciprocal activation
D) Perceptual motivation
E) Motivational mapping

Question 50

To appeal to a new target market, the maker of Hill's coffee has changed the product's package design, reformulated the coffee, begun advertising price discounts in women's magazines, and started distributing the product through gourmet coffee shops. What has been changed?

A) Perceptual value
B) Marketing mix
C) Niche market
D) Product line
E) Product utility

Question 51

The sale of traditional brands of chocolate candy bars is declining. The manufacturers of candy have noticed that the demand for energy-boosters is up. As a result, they have introduced a new type of candy bar called "buzz bars." The new candy bars have 60 milligrams of caffeine, with taurine and B vitamins. The candy industry had to create _____ for buzz bars.

A) primary demand
B) par value
C) secondary demand
D) utilitarian worth
E) market value

Question 52

The _____ refers to the bundle of values built into a product aimed at satisfying various functional, social, psychological, economic, and other consumer needs and wants.

A) total product concept
B) marketing mix
C) targeted product
D) product attribution
E) product utility

Question 53

Seagram's of North America provides its resellers with elaborate point-of-purchase displays to encourage resellers to stock and promote the distillery's products. In this example, Seagram's is using a:

A) penetration strategy.
B) diversification strategy.
C) divestiture strategy.
D) push strategy.
E) pull strategy.

Question 54

Which of the following marketing activities most likely takes place in the business market?

A) The sale of a Black & Decker hammer to a do-it-yourselfer
B) The rental of an apartment by a college student
C) The purchase of babysitting services for a small child
D) The purchase of a case of Campbell's brand soups by a supermarket
E) The payment of a fee to a divorce lawyer

Question 55

When compared to consumer markets, business markets:

A) contain many more buyers.
B) have more systematic purchasing procedures.
C) can be segmented using psychological variables.
D) have more dispersed markets.
E) cannot be segmented by end users.

Question 56

In the health care industries, strategies that target women are becoming increasingly prevalent because capturing the female patient means influencing the vast majority of health care decisions made for families. Plus, women use health services more frequently than men. If you are a health care provider, you would want to use _____ segmentation.

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

Question 57

Consumer demand for a whole product category such as DVD players, pickles, or laptop computers is called _____ demand.

A) primary
B) selective
C) positioned
D) category
E) introductory

Question 58

A pizza restaurant buys fountain Coca-Cola, which it sells to its customers. The pizza restaurant is an example of a(n):

A) consumer market.
B) VALS market.
C) reseller.
D) wholesaler.
E) business-to-business market.

Question 59

Which of the following is most likely a potential target market for a manufacturer who is licensed by World Wrestling Entertainment (WWE) to make Halloween costumes based on characters seen in WWE matches?

A) Older men and women who enjoy watching Olympic wrestling
B) Pre-teen males who wish to emulate one of the WWE wrestlers
C) People who believe the WWE promotes violence
D) Children of parents who are sports enthusiasts
E) Anyone who has attended a WWE match

Question 60

The North American Industry Classification System (NAICS) codes:

A) will soon be replaced by the strategic industrial classification (SIC).
B) is published by the North American Treaty Alliance.
C) organizes all industries in the economy into 20 broad sectors.
D) have little relevance for marketers that use direct mail.
E) are top secret which cannot be shared with outsiders.

Question 61

A(n) _____ comprises all the firms and individuals that take responsibility for the product as it moves from the producer to the consumer.

A) distribution channel
B) communication channel
C) intermediating continuum
D) marketing channel
E) connectivity channel

Question 62

Maidenform Brands is a global intimate apparel company that designs, sources, and markets intimate apparel products under the Maidenform, Flexees, and Lilyette brand names. Maidenform is able to use a multiple brand strategy that provides access to the faster-growing mass market channel without diluting the strong positive opinions and feelings that its consumers, distributors, dealers, and competitors have for the Maidenform, Flexees, and Lilyette brands. In other words, Maidenform and its major brands have strong:

A) market share.
B) market value.
C) brand commitment.
D) brand equity.
E) market utility.

Question 63

A promotion was launched to position French's as a fun line of condiments for a variety of everyday usage occasions. Its promotions showed vignettes of families, children, and older Americans enjoying foods flavored with French's Deli Style, Dijon Style, and Honey Mustard flavors as well as its Classic Yellow mustard. The fact that all of these mustards have the French's brand is an example of:

A) individual branding.
B) regional branding.
C) psychological branding.
D) private labeling.
E) family branding.

Question 64

With the common usage of laptops and tablets, large, bulky desktop computers have entered the _____ stage of the product life cycle and are being phased out by many computer firms.

A) utility
B) laggard
C) late adopter
D) decline
E) growth

Question 65

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

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

Question 66

While you cannot find televisions at every retail outlet, you can find them at discount stores, electronic stores, appliance stores, and department stores. What kind of distribution is used for televisions?

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

Question 67

Joe Boxer products can only be found at Kmart and Sears. Joe Boxer is best described as a(n):

A) aggregated brand.
B) private label.
C) manufacturer's brand.
D) indirect consumer promotion.
E) demographic brand.

Question 68

_____ is the totality of what consumers, distributors, dealers, and competitors feel and think about a brand over an extended period of time.

A) Brand acceptance
B) Market value
C) Brand commitment
D) Brand equity
E) Product loyalty

Question 69

The _____ stage of the product life cycle is characterized by rapid market expansion, more and more customers, a decrease in total advertising expenditures as a percentage of total sales.

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

Question 70

The most recent trend in new candy bars is candy bars loaded with caffeine. In March 2008, Hershey Company, a large candy manufacturer, introduced a brand of high-caffeinated candy under the Starbucks brand name. What type of banding strategy is Hershey's using with this new product?

A) Licensed branding
B) National positioning
C) Family branding
D) Private branding
E) Intensive branding

Question 71

Bose manufactures and markets home theater systems, surround sound stereos, and audio accessories. The company prices its products higher than most other brands on the market to make its products seem more valuable and of a higher quality. In other words, Bose uses:

A) exclusive distribution.
B) psychographic pricing.
C) psychological pricing.
D) intensive distribution.
E) price branding.

Question 72

Which product would most likely involve intensive distribution?

A) Waterford crystal
B) Harry Potter books
C) Wrigley's chewing gum
D) Whirlpool refrigerators
E) Pepperidge Farm turnovers

Question 73

If you look at an organically-grown tomato and one that has been chemically-enhanced, you can easily see the difference-one is perfectly formed and uniformly red and the other is not. In terms of product differentiation, this is an example of a:

A) hidden difference.
B) differentiation cue.
C) perceptible difference.
D) sensory cue.
E) perceptual filter.

Question 74

The differences between Golden Harvest brand canning jars and Mason brand canning jars is not readily visible. Both are made of heavy glass that will not break easily. Through its advertising, Golden Harvest advertises that its jars are made with a glass that is 100 percent free of all impurities. In this way, Golden Harvest is using _____ to differentiate its product from those of the Mason brand.

A) hidden differences
B) differentiation cues
C) imperceptible differences
D) sensory cues
E) perceptual filters

Question 75

Unlike the McCormick's brand of spices, the Penzeys brand of spices provides cooks with a helpful monthly magazine that shows them how to make the most effective use of spices in their recipes. This is most likely an example of a:

A) perceptible difference.
B) differentiation cue.
C) imperceptible difference.
D) sensory cue.
E) perceptual filter.

Question 76

There are many different brands of candy on the shelves of most supermarkets. The manufacturer of Dale Jr.'s Big Mo candy bars, aimed at NASCAR fans, hopes to create _____ so that customers will perceive why it is a better brand of candy than all the rest in the market.

A) secondary demand
B) selective demand
C) primary demand
D) pioneering demand
E) utility of demand

Question 77

When Hannah buys almond soap from a vendor at an arts and crafts show and the vendor that sells the soap is actually the person who made the soap from scratch, it is an example of:

A) selective distribution.
B) indirect distribution.
C) direct distribution.
D) unbranded distribution.
E) differentiated distribution.

Question 78

Another name for manufacturer's brands is:

A) private brands.
B) umbrella brands.
C) national brands.
D) family brands.
E) individual brands.

Question 79

Maidenform is a global intimate apparel company that designs, sources, and markets products such as bras, panties, and "shape wear" under the Maidenform, Flexees, Lilyette, and Control It brand names. Which branding strategy does Maidenform use?

A) Individual branding
B) Regional branding
C) Psychological branding
D) Private labeling
E) Family branding

Question 80

The basic goal of a positioning strategy is to:

A) own a word that establishes the product in the prospect's mind.
B) create a long-term market for a product category.
C) correlate the total product concept with the product's position in the PLC.
D) minimize product differentiation.
E) create and maintain primary demand for a product.