Deck 8: Market Segmentation, Targeting, and Positioning

Question 1

Market segmentation involves aggregating prospective buyers into groups that have common needs and will

A)pay attention to marketing messages.
B)respond similarly to a marketing action.
C)be responsive to marketing research.
D)use the same payment methods.
E)comply with the organization's core values.

Answer 1

B

Question 2

Market segmentation involves aggregating prospective buyers into groups that __________ and will respond similarly to a marketing action.

A)respond similarly to marketing messages
B)have similar shopping styles
C)will become loyal customers
D)have common needs
E)will become stakeholders of the organization

Answer 2

D

Question 3

According to Tony Hsieh, CEO of Zappos, the company devotes the greatest amount of time to

A)seeking out new and unusual styles of shoes from all over the world.
B)improving the website to make it faster, more interesting, and fun.
C)seeking out new markets that will go beyond the Internet.
D)finding the fastest and least expensive modes of delivery for its products.
E)finding ways to improve customer-service levels.

Answer 3

E

Question 4

A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can

A)increase sales and profitability.
B)stand up to legal scrutiny.
C)be socially responsible.
D)create sustainable demand.
E)produce product differentiation.

Question 5

Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as

A)consumer differentiation.
B)psychographics.
C)market segmentation.
D)market delineation.
E)aggregation marketing.

Question 6

New Balance makes the Minimus line of shoes with a Vibram outsole and REVlite cushioning for those who want to "feel the trail." Its 1260v2 shoe incorporates Stabilicore technology to "deliver a plush, smooth, and stable ride." And its Made in America, top of the line, 990v3 traditional running/walking shoe uses a "premium pigskin upper with mesh inserts for breathability, a stability-enhancing ABZORB^→ idsole, and ENCAP to promote a healthy gait." The strategy of appealing to different types of customers in this way is an example of

A)mass customization.
B)product definition.
C)market segmentation.
D)single chain marketing.
E)market specific selection.

Question 7

The company name Zappos was chosen because it

A)was the founder's family name.
B)conveyed in Spanish the type of product sold.
C)inferred how quickly you could purchase the product.
D)contained letters from the names of the three founders.
E)reflected the brand name of the first line of shoes they sold.

Question 8

The primary focus of Zappos' market segmentation strategy is to sell

A)a wide selection of shoes, clothes, accessories, and housewares to people who will buy them online.
B)a wide selection of leather shoes and boots to retailers.
C)all types of shoes, accessories, and clothing to department stores.
D)Spanish novelties and accessories to organizations.
E)shoes in its own retail stores.

Question 9

The phrase "relatively homogeneous collections of prospective buyers" is most descriptive of

A)demographic clusters.
B)organizational buyers.
C)ultimate consumers.
D)market segments.
E)qualified prospects.

Question 10

Market segmentation stresses __________ and relating them to specific marketing actions.

A)aligning tasks to match competitor tactics
B)grouping people according to similar needs
C)dividing people within a market randomly into equally sized groups
D)dividing people into the smallest groups possible
E)identifying potential new buyers who are not yet familiar with a new product

Question 11

Which of the following statements about Zappos is most accurate?

A)Zappos limits its inventory to a selection of high-end fashion footwear.
B)Zappos carries more than 1,000 different brands.
C)Zappos can guarantee overnight shipping to all its customers because they know ahead of time what they will be charged for express service.
D)Zappos is so successful because it has chosen a single mission to "sell shoes and nothing else."
E)Zappos offers a 30/60/90 return policy whereby refunds are based on how long you have had the shoes.

Question 12

A relatively homogenous group of prospective buyers that results from the market segmentation process is referred to as a(n) __________.

A)market segment
B)target market
C)customer base
D)ultimate consumer
E)preferred customer

Question 13

To be identified as a market segment, members of the group must

A)be similar in terms of their consumption behavior.
B)represent a large share of the entire market and have buying power.
C)have diverse needs and have potential for future growth.
D)have diverse needs and be willing and able to purchase the product.
E)have the potential for future growth and increased profit or ROI.

Question 14

The Zappos segmentation strategy is based on

A)offering the best selection of shoes and the best service to online shoppers.
B)designing shoes for every type of occasion.
C)dividing all their customers into two distinct segments: people shopping for low price and people shopping for style.
D)offering the best selection of shoes through multiple channels of distribution.
E)maintaining the simplest method of price points to make the purchase process easy.

Question 15

Market segmentation refers to

A)the philosophy that to do a truly excellent job of marketing, a company should concentrate on only one customer segment at a time.
B)sorting prospective buyers into groups that are willing to pay more than the cost of production for a good or service.
C)disaggregating prospective buyers from groups into segments of one (individuals) and then creating specific products that will satisfy this person's unique needs.
D)aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.
E)the belief that it is possible to satisfy every customer's needs if you can identify the correct segment within which they belong.

Question 16

In marketing, each __________ consists of people who are relatively similar to each other in terms of their consumption behavior.

A)demographic cluster
B)organizational buyer group
C)market segment
D)ultimate consumer group
E)qualified prospect group

Question 17

Small athletic shoe manufacturers such as Vans have targeted niche markets and make shoes designed to satisfy the needs of different specific groups of customers. This strategy is an example of

A)market segmentation.
B)mass customization.
C)customized manufacturing.
D)single chain marketing.
E)market specific selection.

Question 18

Tony Hsieh, CEO of Zappos, offers one month's salary to anyone who

A)identifies a completely new market segment with a product to match it.
B)finds a way of improving service to online customers.
C)takes the customer loyalty training class and decides to quit anyway.
D)finds a shoe-related product that Zappos does not already carry.
E)creates a humorous theme for one of the monthly company meetings.

Question 19

Market segments refer to

A)the relatively heterogeneous groups of prospective buyers that result from the market segmentation process.
B)all buyers of a product or service who have previously purchased a particular firm's products or services and who intend to repeat that purchase sometime in the future.
C)the smallest number of buyers that have similar needs but do not react similarly in a buying situation.
D)the relatively homogenous groups of prospective buyers that result from the market segmentation process.
E)all potential buyers of a product or service who intend to purchase a firm's products or services but who have not yet done so.

Question 20

Building open and honest relationships with communication is an example of Zappos' __________.

A)profile for its target market
B)best practices being adapted from its new owner, Amazon.com
C)ten core values for Zappos' culture
D)qualities required of Zappos' suppliers
E)qualities required of Zappos' retailers

Question 21

-In Figure 8-1 above, Box A represents which stage of the market segmentation process?

A)link needs to actions
B)identify market needs
C)establish a marketing protocol
D)execute marketing program actions
E)segment and select the target markets

Question 22

Recently Colgate-Palmolive introduced Colgate Enamel Health toothpaste, one that claims to replenish and polish tooth enamel, the hard outer layer of the tooth that provides a protective barrier to inner layers. This new formula helps to separate the Colgate product from its top competitors, such as Crest. What marketing strategy did Colgate-Palmolive use here?

A)product differentiation
B)product segmentation
C)market expansion
D)usage segmentation
E)psychographic segmentation

Question 23

Product differentiation refers to

A)a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs.
B)the unique combination of product benefits received by targeted buyers.
C)those characteristics of a product that make it superior to competitive substitutes.
D)a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products.
E)the legal requirement that requires a specified degree of distinction between products to ensure an organization's intellectual property rights.

Question 24

An analysis of the pillow market using a market-product grid suggests that the most important segment to target is

A)side sleepers.
B)sleepers with sleep disorders, such as sleep apnea.
C)sleepers with annual incomes of $50,000 and over.
D)back sleepers.
E)stomach sleepers.

Question 25

A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products is referred to as __________.

A)market penetration
B)points of difference
C)market differentiation
D)product positioning
E)product differentiation

Question 26

The process of segmenting a market and selecting specific segments as targets is the link between __________ and the organization's marketing program.

A)self-regulatory industry standards
B)government regulations
C)top-level management
D)buyers' or market needs
E)controllable environmental factors

Question 27

Consider Figure 8-2 above. My Pillow uses infomercials and product demonstrations at events such as state fairs to market its line of pillows that are guaranteed to be "the most comfortable pillow you'll ever own!" Based on the market research above, which market-product combination should My Pillow target?

A)stomach sleeper-firm pillow
B)back sleeper-medium pillow
C)side sleeper-firm pillow
D)stomach sleeper-soft pillow
E)side sleeper-soft pillow

Question 28

A market-product grid refers to

A)a visual representation of all products offered within a specific product class.
B)a framework used to compare the relative market share of one firm's product offerings to those of its competitors.
C)a technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
D)a framework used to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.
E)a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.

Question 29

A market-product grid is a framework to relate

A)total estimated expenses for each product sold to each market segment.
B)total anticipated revenue for each product-market segment combination.
C)total anticipated profit for each product sold to each market segment.
D)the market segments of potential buyers to relative market share compared to the largest competitor.
E)the market segments of potential buyers to products offered or potential marketing actions by an organization.

Question 30

-In Figure 8-1 above, C represents which stage of the market segmentation process?

A)link needs to actions
B)identify market needs
C)establish a marketing protocol
D)execute marketing program actions
E)segment and select the target markets

Question 31

Zappos' original target market customers consisted of people who wanted all of the following EXCEPT:

A)to receive quick delivery of their merchandise.
B)to buy sustainable shoes, accessories, and clothing.
C)to shop online in the convenience of their own homes.
D)to allow for free returns of goods if dissatisfied.
E)to have a wide selection of shoes.

Question 32

Apple's iPhone has a feature known as Apple Pay that lets you use your phone to pay for credit purchases, meaning you could leave your wallet at home. This feature sets the smartphone apart from its competitors and is part of Apple's strategy for

A)product segmentation.
B)market expansion.
C)product differentiation.
D)usage segmentation.
E)psychographic segmentation.

Question 33

-In Figure 8-1 above, B represents which stage of the market segmentation process?

A)link needs to actions
B)identify market needs
C)establish a marketing protocol
D)execute marketing program actions
E)segment and select the target markets

Question 34

A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as a __________.

A)payoff table
B)cross-tabulation
C)market-product grid
D)growth-share matrix
E)product differentiation table

Question 35

To create a market-product grid for bed pillows, the most effective way to segment the market would be using

A)the age of the sleeper: less than 18 years of age, 18 to 44 years of age, or 45 years and older.
B)the sleeper's annual income: less than $25,000, $25,000 to $49,999, or $50,000 and over.
C)the sleeper's gender: male or female.
D)the time of sleep: day or night.
E)how the sleeper sleeps: side, back, or stomach.

Question 36

A market-product grid is a framework to relate the __________ to products offered or potential marketing actions by an organization.

A)market segments of potential buyers
B)marketing objectives of potential products
C)total anticipated revenue
D)total anticipated profit
E)market share of the closest competitor

Question 37

Alka-Seltzer was made originally as a hangover remedy that cured the headache and settled the stomach. Today, you can buy Original Alka-Seltzer, Extra Strength Alka-Seltzer, Alka-Seltzer Morning Relief (for morning headaches and fatigue), and Alka-Seltzer Heartburn Relief. Each Alka-Seltzer product has a unique formulation to relieve a specific malady that makes them more specialized than competing products. The maker of Alka-Seltzer is using

A)product variation.
B)product differentiation.
C)market sectioning.
D)product segmentation.
E)product base development.

Question 38

The purpose of market segmentation is to respond more effectively to the wants of groups of potential buyers in order to

A)maintain market share.
B)increase sales and profits.
C)assume social responsibility.
D)use the firm's resources most efficiently.
E)provide the best quality products on the market.

Question 39

The process of segmenting a market and selecting specific segments as targets is the link between the various buyers' or market needs and

A)industry standards.
B)government regulations.
C)top-level management.
D)controllable environmental factors.
E)the organization's marketing program.

Question 40

A market-product grid is a framework to relate the market segments of potential buyers to

A)estimated expenses for products sold.
B)products offered or potential marketing actions by an organization.
C)total anticipated revenue.
D)total anticipated profit.
E)market share of the closest competitor.

Question 41

The annual Sporting News Baseball Yearbook had exactly the same stories but with 17 different covers to appeal to baseball fans in 17 different regions of the U.S. What is the basis of its market segmentation strategy?

A)psychographic segmentation
B)retail outlet segmentation
C)demographic segmentation
D)behavioral segmentation
E)geographic segmentation

Question 42

MyTwinn makes dolls that look like young girls. For $119, the firm will make a doll that looks just like a photograph. So, if you send in the money and a photo of your young niece, she could have a doll that is her twin! This is an example of

A)family branding.
B)production marketing.
C)multiple products and multiple market segments.
D)mass customization.
E)specialty customization.

Question 43

Custom Foot operates six retail locations. At first glance, none looks different from a typical boot store. But here the only boots on hand are display models, there is no inventory for sale and customers go home empty-handed, awaiting their orders. Customers browse the store, choosing style, color, and leather type, with about 100 displays to provide style guidelines. Custom Foot guarantees your boots will be ready within three weeks. This is an example of

A)mass customization.
B)specialty customization.
C)virtual merchandising.
D)one product and multiple market segments.
E)multiple products and multiple market segments.

Question 44

Tailoring products or services to the tastes of individual customers on a high-volume scale is referred to as

A)family branding.
B)mass customization.
C)product differentiation.
D)economies of scale marketing.
E)build-to-order.

Question 45

ChoiceShirts is an online company that makes made-to-order T-shirts. Its online customers can order their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch. This is an example of

A)family branding.
B)mass customization.
C)multiple products and multiple market segments.
D)one product and multiple market segments.
E)specialty customization.

Question 46

Which of the following is an example of a multiple products and multiple market segments strategy?

A)College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the U.S.
B)A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience.
C)Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes.
D)Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens.
E)Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Question 47

Which of the following is a disadvantage of employing a multiple products, multiple market segments strategy if NOT implemented well?

A)higher sales but lower profits
B)reduced quality and higher prices
C)meeting customer needs but at the expense of higher prices
D)lower prices but with higher production costs
E)higher quality but lower prices

Question 48

Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it adds to the manufacturer's sales revenues and profits, serves customers' needs better, and

A)conforms to all FDA guidelines.
B)creates economy of scale.
C)doesn't reduce quality or increase price.
D)decreases the cost of the physical plant.
E)stabilizes the sales revenues and profits.

Question 49

In the United States, the Harry Potter series of books were often at the top of The New York Times fiction bestseller list. These books have been marketed by turns to preteen, teen, and adult readers around the world with creative marketing, including different book covers. Scholastic Press, the publisher of the Harry Potter books in the U.S., is using which of the following segmentation strategies?

A)multiple products with one segment
B)one product with one channel of distribution
C)one product with multiple market segments
D)one product with changes based on customer behavior
E)multiple products with multiple segments

Question 50

When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids __________.

A)the extra cost of developing and producing additional versions of the product
B)creating a customer service gap
C)indirect distribution and logistics problems
D)restructuring the firm's strategic planning
E)amortization costs of product enhancements

Question 51

When expenses are greater than the potential increased sales from market segmentation, a firm should

A)not consider market segmentation at this time.
B)combine departments within the company to make the process more streamlined.
C)reduce production costs or increase prices to facilitate the segmentation process.
D)seek alternate channels of distribution, including Internet sales.
E)discontinue manufacturing any products that are not in the mature stage of their product life cyclE.A business goes to the trouble and expense of segmenting its markets when it expects that the effort will increase its sales, profit, and return on investment. When expenses are greater than the potentially increased sales from segmentation, a firm should not attempt to segment its market.

Question 52

Which of the following statements regarding when and how to segment markets is most accurate?

A)Even if a firm finds only one potential market segment, it should take advantage of the method to appear cutting-edge to its competitors and customers.
B)Market segmentation only works for large corporations; small businesses don't have the resources to engage in the process.
C)Governments should not attempt market segmentation because the strategy is only applicable for consumer and organizational markets.
D)If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment.
E)Market segmentation strategies work less than 10 percent of the timE.A business goes to the trouble and expense of segmenting its markets when it expects that the effort will increase its sales, profit, and return on investment. When expenses are greater than the potentially increased sales from segmentation, a firm should not attempt to segment its market.

Question 53

Lands' End will custom fit a Marinac jacket and make it with additional features such as thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com. This is an example of

A)family branding.
B)mass customization.
C)"Tiffany/Walmart" marketing.
D)market melding.
E)specialty customization.

Question 54

One marketing action that can be taken to sell a single product or service to multiple market segments is to

A)develop and produce another version of the product.
B)manufacture products that appeal to different markets.
C)develop separate promotional campaigns.
D)purchase another firm that has additional products that would appeal to multiple markets.
E)issue stock to fund additional research and development for new products.

Question 55

Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it serves customers' needs better, doesn't reduce quality or increase price, and

A)conforms to all FDA guidelines.
B)adds to the manufacturer's sales revenues and profits.
C)creates economy of scale.
D)decreases the cost of the physical plant.
E)stabilizes the sales revenues and profits.

Question 56

All of the following are market segmentation strategies EXCEPT:

A)build-to-order.
B)multiple products, multiple market segments.
C)one product, multiple market segments.
D)multiple products, one segment.
E)mass customization.

Question 57

Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing only one but seems worthwhile if it adds to the manufacturer's sales revenues and profits, doesn't reduce quality or increase price, and

A)conforms to all FDA guidelines.
B)uses the same promotion and packaging for all segments.
C)decreases the cost of the physical plant.
D)stabilizes competition.
E)better serves customers' needs.

Question 58

When compared to a multiple products, multiple market segments strategy, a one product, multiple market segment strategy

A)is a much more effective means of meeting consumers' individual needs.
B)creates greater savings in production costs.
C)is a more effective way of meeting organizational objectives.
D)has significantly higher distribution costs.
E)is more profitable since a firm can charge the new segments higher prices without changing the product.

Question 59

Which of the following is an example of a multiple products and multiple market segments strategy?

A)College Football magazine selects different covers for essentially the same written content in order to appeal to different geographic markets in the U.S.
B)A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience.
C)Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo.
D)Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and cat litter boxes.
E)Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Question 60

Nike employs a __________ strategy at its website, nikeid.com, which allows customers design a sneaker to their own personal specifications.

A)product sampling
B)product clustering
C)mass customization
D)usage segmentation
E)psychographic segmentation

Question 61

The first step in segmenting and targeting markets that links customer needs to marketing actions is to

A)group potential buyers into segments.
B)group products to be sold into categories.
C)develop a market-product grid and estimate size of the overall market.
D)select target markets.
E)take marketing actions to reach target markets.

Question 62

When Ann Taylor, a well-known retailer of sophisticated women's clothing, started losing sales to its own LOFT outlets that feature moderately priced casual clothes, Ann Taylor was dealing with the marketing phenomenon known as __________.

A)amortization
B)guerrilla marketing
C)shrinkage
D)marketing Darwinism
E)cannibalization

Question 63

Which of the following is an example of a Tiffany/Walmart strategy?

A)College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the U.S.
B)A new movie used several different movie trailers; one showed the action scenes in order to attract one audience and the other showed romantic scenes to attract another audience.
C)Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes.
D)Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22.
E)Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Question 64

Name Maker is an online company that sells high-end gift wrapping that can have custom slogans or names printed on it, such as the name of a person celebrating a birthday or a couple who is getting married. This made-to-order gift-wrapping is priced from $24.95 to $32.95 per 12-foot roll. This is an example of

A)family branding.
B)mass customization.
C)synergistic marketing.
D)"Tiffany/Walmart" marketing.
E)specialty customization.

Question 65

You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50. Or, you can buy a Hallmark card from its new $0.99 line of greeting cards, made with lesser-quality materials but just as sentimental, that are sold at Barnes and Noble bookstores. This is an example of

A)mass customization.
B)organizational synergy.
C)one product and multiple market segments.
D)price discrimination.
E)a Tiffany/Walmart strategy.

Question 66

All of the following are examples of increased customer value from organizational synergy EXCEPT:

A)lower prices
B)increased brand awareness
C)more products
D)improved distribution
E)improved quality of existing products

Question 67

The ultimate criterion for an organization's marketing success is that __________ as a result of increased synergies.

A)costs decrease
B)market share increases
C)product deficiencies decrease
D)customers should be better off
E)new products flourish

Question 68

The purpose of the five key steps in segmenting and targeting markets is to

A)identify competitors that provide similar products that satisfy a firm's customers' needs.
B)provide guidance to reposition a firm's products.
C)generate new products ideas for firms that are not growing in market share.
D)link market needs of customers to the organization's marketing program.
E)correlate directly to each of the five environmental forces.

Question 69

The increased customer value achieved through performing organizational functions like marketing or manufacturing more efficiently is referred to as __________.

A)aggregation
B)organizational synergy
C)segmentation
D)amalgamation
E)valuation

Question 70

Chip-N-Dough Cookie Company will let you select cookies and put a photo of yourself on the tin. This is an example of

A)mass customization.
B)multiple marketing.
C)target marketing.
D)product clustering.
E)repositioning.

Question 71

Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to offer

A)a low-priced product to a high-income or high net worth segment.
B)a high-priced product to a low-income or low net worth segment.
C)different variations of the same basic offering to high-end and low-end segments.
D)a high-priced and a low-priced offering to a single market segment.
E)different offerings to high-end and low-end segments.

Question 72

Cannibalization would mostly likely occur if

A)Dell adds high-end speaker systems to its line.
B)General Mills launches Caramel Crunch Cheerios.
C)General Motors markets a motorcycle similar to the Can-Am Spyder Roadster 3-wheel bike.
D)Pillsbury adds boxed sugar to its product mix.
E)Procter & Gamble adds a new line of baby clothing to its Pamper's stable of products.

Question 73

Manufacturing a product only when there is an order from a customer is referred to as

A)order customization.
B)a one product one market segment strategy.
C)synergistic marketing.
D)build-to-order.
E)specialty customization.

Question 74

The third step in segmenting and targeting markets that link customer needs to marketing actions is to __________.

A)group potential buyers into segments
B)group products to be sold into categories
C)select target markets
D)develop a market-product grid and estimate size of markets
E)take marketing actions to reach target markets

Question 75

When a new product or a new retail chain steals customers and sales from older existing ones of an organization, it is referred to as

A)cannibalization.
B)amortization.
C)product appropriation.
D)product pilfering.
E)marketing Darwinism.

Question 76

The second step in segmenting and targeting markets that link customer needs to marketing actions is to

A)group potential buyers into segments.
B)develop a market-product grid and estimate size of the overall market.
C)select target markets.
D)take marketing actions to reach target markets.
E)group products to be sold into categories.

Question 77

Organizational synergy is the increased customer value achieved through

A)performing organizational functions more efficiently.
B)more discounts or larger rebates at the point of sale.
C)involvement of the ultimate consumer in product design.
D)an increase in the knowledge of competitors.
E)shared ownership of the organization through publicly traded stock.

Question 78

Model E is a new type of car manufacturer that relies on the Internet ordering. "Think of Model E as the Dell of the auto industry. We design just a few products that consumers truly want, leveraging best-in-class components and micro-factory approaches for rapid design, launch, and direct delivery," said William Santana Li, president and CEO of Model E. Model E manufactures each car when a customer chooses from a limited number of options and orders. Model E relies on

A) order customization.
B) a one product one market segment strategy.
C) build-to-order.
D) specialty customization.
E) mass customization.

Question 79

The Walt Disney Company carefully markets two distinct Winnie-the-Poohs; one is the original line-drawn figure on fine china sold at Nordstrom and the other is a cartoon-like Pooh on polyester bed sheets sold at Target. This is an example of

A)mass customization.
B)a Tiffany/Walmart strategy.
C)one product and multiple market segments.
D)price discrimination.
E)psychographic market segmentation.

Question 80

Suppose marketers want to use product differentiation and market segmentation strategies. What question should they ask when considering the potential for cannibalization with these strategies?

A)"Will our new products steal customers or sales from our older ones?"
B)"Will the products compete head-to-head with those of a competitor?"
C)"Can this action successfully draw customers away from competitors?"
D)"Are there enough similarities within the market segment to warrant such high costs?"
E)"Will this action eliminate the need for individualized advertising and promotion?"