Deck 7: Sharpening the Focus: Target Marketing Strategies and Customer Relationship Management

Question 1

________ exists today as a result of people's diverse interests and backgrounds that divide them into numerous groups with distinct wants and needs.

A)Market aggregation
B)Market similitude
C)Disintermediation
D)Economic aggregation
E)Market fragmentation

Answer 1

E

Question 2

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

A)The second step in the target marketing process is the identification of all segmentation variables.
B)There are four steps in the target marketing process.
C)The final step in the target marketing process is positioning.
D)The first step in the target marketing process is to set marketing objectives.
E)All of the above

Answer 2

C

Question 3

Positioning is the second step in the target marketing process and targeting is the third step.

Answer 3

False

Question 4

Designing a product or service to meet a segment's needs and developing a competitive marketing mix is called positioning.

Question 5

Some beer drinkers choose their beer because of its great taste.

A)market aggregation
B)disintermediation
C)market fragmentation
D)economic aggregation
E)market similitude

Question 6

A national retailer of uniforms ran one advertisement targeting male nurses and another advertisement targeting female nurses.

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

Question 7

Children between 8 and 14 years old are referred to as ________.

A)Generation Y
B)Tweens
C)Kidlets
D)Generation X
E)Generation P

Question 8

The group of consumers born between 1977 and 1994 are often called ________.

A)the silent majority
B)tweens
C)Generation X
D)baby busters
E)Generation Y

Question 9

A basic assumption of ________ is that people who live near one another share similar characteristics.

A)positioning
B)geodemographics
C)psychographics
D)demographics
E)geography

Question 10

Why are marketers concerned about market fragmentation? How have marketers responded? Give an example of how market fragmentation has influenced your life.

Question 11

The three-step process of market segmentation involves segmenting,targeting and creating a brand personality.

Question 12

Mass marketing is the most efficient method of marketing for marketers but the best strategy from a customer's perspective is one-to-one marketing.

Question 13

Demographics ________.

A)segment on the basis of shared attitudes,opinions,and interests
B)segment on the basis of what they do with a product
C)segment on the basis of when they use a product
D)are measurable characteristics such as age and gender
E)use qualitative data to explain why seemingly homogeneous consumers are not homogeneous

Question 14

Recognising that some people eat cereal because of its nutritional value,some because it is easy to prepare,and some because it tastes good,is part of the ________ process.

A)acculturation
B)market aggregation
C)segmentation
D)positioning
E)customisation

Question 15

Age,gender and income are all examples of ________.

A)positioning strategies
B)homogenous populations
C)sampling heuristics
D)synergistic samples
E)segmentation variables

Question 16

________ is the process of dividing a larger market into smaller pieces based on one or more meaningful shared characteristics.

A)Positioning
B)Acculturation
C)Segmentation
D)Market aggregation
E)Customisation

Question 17

Some people want healthy cereal that will help them lose weight or possibly prevent certain kinds of cancer.

A)market aggregation
B)disintermediation
C)market fragmentation
D)market similitude
E)economic aggregation

Question 18

A retailer targeting prospective brides and grooms between the ages of 21 and 40 is using ________ segmentation to define its target market.

A)lifestyle
B)demographic
C)behavioural
D)psychological
E)socioeconomic

Question 19

A new family just moved into the old house on the corner.Three generations of family members are sharing this big house.Different styles of music can be heard coming from the windows of this house.The neighbours can always tell who is enjoying their music.What is market fragmentation,and how it is illustrated in this example?

Question 20

Which of the following is not an example of a demographic variable that can be used in segmentation?

A)income and social class
B)race and ethnicity
C)age
D)lifestyle
E)gender

Question 21

Generation Y consumers are often hard to reach because ________.

A)they are free-spending
B)they spend most of their time reading
C)they spend less of their time reading and watching TV
D)they spend a lot of time online
E)they spend most of their time watching TV

Question 22

Magazines targeted to people who compete in triathlons,those who enjoy cooking,and those who love knitting use ________ segmentation variables.

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

Question 23

The VALS system categorises consumers as ________.

A)leaders or followers
B)innovators,early adopters,late adopters,or laggards
C)technically-oriented,people-oriented,or task-motivated
D)motivated by ideals,achievement or self-expression
E)risk takers or risk averse

Question 24

Businesses often divide their markets according to when and how their offerings are in demand - e.

A)geodemographic factors
B)sociocultural factors
C)usage occasion
D)demographic factors
E)geographic factors

Question 25

VALS is ________.

A)a method of confirming that the chosen target market is representative of the ideal market segment
B)a system used for psychographic segmentation
C)a database of people who have purchased similar products
D)a method of removing heterogeneous variables from a target market
E)a strategy used for implementing geodemographic segmentation

Question 26

When companies offer baby nappies in pink or blue,this is an example of segmenting by ________.

A)age
B)family status
C)lifecycle
D)gender
E)life stage

Question 27

Which of the following groups is a prime market for resort-style developments?

A)seniors
B)families with children
C)teens
D)newlyweds
E)young bachelors

Question 28

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

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

Question 29

To market Suave shampoo,Unilever used data from the Australian Bureau of Statistics and Statistics New Zealand to identify neighbourhoods with high concentrations of young working women.

A)geodemography
B)psychographics
C)ethnography
D)projective techniques
E)the hierarchy of needs

Question 30

A consumer's national origin can be a strong indicator of their preferences for ________.

A)apparel
B)specific magazines and TV shows
C)food
D)leisure activities
E)All of the above

Question 31

Many Generation X consumers have a ________ attitude towards marketing.

A)professional
B)cynical
C)confused
D)trusting
E)believing

Question 32

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

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

Question 33

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

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

Question 34

The group of consumers born between 1965 and 1976 are called ________.

A)Generation Y
B)Generation X
C)tweens
D)baby boomers
E)the silent majority

Question 35

Assume that Watties' research showed that customers on the eastern side of Australia and in New Zealand wanted thick tomato sauce whereas customers along the western side of Australia favoured thinner tomato sauce.

A)consumerist
B)geographic
C)usage
D)lifestyle
E)psychographic

Question 36

The ________ is of interest to marketers because it determines which groups have the greatest buying power.

A)age breakdown of consumers
B)family status of consumers
C)neighbourhoods where consumers live
D)education levels of consumers
E)distribution of wealth

Question 37

Baby boomers ________.

A)are aged 45 or younger
B)tend to view their homes as an expression of their individuality rather than material success
C)were born between 1965 and 1976
D)are important to marketers because of the size of the segment
E)None of the above

Question 38

Which of the following statements is not true about metrosexuals?

A)Physical appearance is important to them.
B)They are homosexual.
C)They are in touch with their feminine side.
D)They are educated urban dwellers.
E)They are heterosexual.

Question 39

Many Generation X consumers view their homes as ________

A)expression of their group memberships
B)expressions of individuality
C)retirement savings
D)financial security
E)a measure of material success

Question 40

________ data are useful in understanding why some people lead active lives,take regular vacations,and eat a healthy diet while others eat and drink to excess and prefer to sit and watch television.

A)Ethnocentric
B)Geoclustering
C)Socioeconomic
D)Demographic
E)Psychographic

Question 41

'What's Happening in My World' is a newspaper designed to keep school children informed about what is happening in their country and their world.

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

Question 42

People who are regular visitors to SciFi.

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

Question 43

Size of company,total sales,type of product purchased and type of user are variables used when segmenting business-to-business markets.

Question 44

A new family just moved into the old house on the corner.Three generations of family members are sharing this big house.Different styles of music can be heard coming from the windows of this house.The neighbours can always tell who is enjoying their music.Explain demographics,and how the style of music being heard by the neighbours could be an indication as to which family member is enjoying their favourite recordings.

Question 45

Marketers only consider income and not family structure,race or ethnic origin when segmenting markets.

Question 46

Psycho-geographics segments market in terms of shared activities,interests,and opinions.

Question 47

Gathering geographic information about Australia and New Zealand is difficult as governments only collect information about these countries as a whole.

Question 48

Dimensions that divide the total market into fairly homogeneous groups,each with different needs,are called positioning variables.

Question 49

You work for a travel agency.Business has been slow,and you have suggested some promotions targeted to specific market segments.What three psychographic segmentation variables would you recommend using and why?

Question 50

Generation Y consumers are easier to reach via website and email promotions than through television advertising.

Question 51

Business-to-business markets can be segmented based on ________.

A)production technology used
B)whether customer is user or non-user
C)size,either employees or total sales
D)whether they are national or multinational
E)All of the above

Question 52

Marketers are not interested in tweens as they have limited money of their own.

Question 53

How can a fast food company make use of the concept of market segmentation in their product,pricing and promotional strategies? Explain your answer.

Question 54

A store selling ice cream offers more than thirty different flavours of their product.If a customer so wishes,different flavours of ice cream can be mixed and served in one ice cream cone.How has this ice cream store implemented marketing segmentation? Explain your answer.

Question 55

How can marketers make use of the concept that 'birds of a feather flock together'?

Question 56

Airlines such as Qantas and Air New Zealand have developed frequent-flyer programs to encourage passengers to use the same airlines repeatedly.

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

Question 57

The VALS system is a crucial part of both geodemographic and behavioural segmentation.

Question 58

When men in the baby boomer generation started getting grey hair,many were reluctant to use hair dyes made for women even though they are just as eager as women to fight the aging process.

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

Question 59

You work for a local restaurant.Business has been slow,and you have suggested some promotions targeted to specific market segments.What three demographic segmentation variables would you recommend using and suggest one promotion that would appeal to each?

Question 60

How can marketers make use of generational marketing - marketing programs designed for the distinct attitudes and consumer behaviour of the various generations in the marketplace? Illustrate using current marketplace examples.

Question 61

A company selling athletic shoes has asked you to advise them as to how it could use insights gained from VALS in its product range and its advertising.

Question 62

You have found a statistic showing that one in ten people are left-handed.Your company manufactures consumer electrical appliances such as irons.Explain the criteria that should be used when evaluating whether or not to pursue this market segment and provide your recommendation as to whether the company should manufacture specific electrical products for these left handed consumers.

Question 63

A company evaluates whether to develop two separate lines of sunscreen lotions,one for men and one for women.

A)men and women had different product needs and wants
B)there are marketing communication options that would reach both segments
C)each segment would be profitable now and in the future
D)the company could determine the size and purchasing power of each segment
E)All of the above

Question 64

The Wright Bros.

A)value analysis
B)internal market audit
C)segment profile
D)customer potential assessment
E)customer guide

Question 65

A target market is not viable unless the segment is large enough to be profitable now and in the future and its members are similar to each other in terms of product needs and wants.

Question 66

A new marketing buzzword is 'metrosexual.' What are some characteristics of someone who could be classified as a metrosexual? Explain the changes a local gym could make to appeal to metrosexuals.

Question 67

A large amusement park sells tickets at its main gate for guests who are visiting the park for just that one day.The park also sells tickets that can be reused several times,however only on weekdays.What market segmentation is being implemented by the amusement park in selling the two different types of tickets?

Question 68

A/n ________ would likely include customer demographics,location,lifestyle information,and a description of how frequently the customer buys the product.

A)value analysis
B)internal market audit
C)customer potential assessment
D)customer guide
E)segment profile

Question 69

A family friendly vacation resort launched a series of new commercials showing a variety of activities and facilities.For example,different swimming pools for babies and adult swimmers/divers,one restaurant specialising in fast food and another restaurant catering to individuals preferring a gourmet menu.This resort wants the entire family to feel comfortable vacationing at this location.How are the marketers using family structure segmentation? Explain your response.

Question 70

In the Middle East,rules about the mixing of the sexes and the consumption of alcohol are quite strict.Chili's Grill & Bar offers a midnight buffet with separate sections for males and females during Ramadan season when Muslims are required to fast from dawn to dusk.What segmentation variable or variables is Chili's using?

Question 71

You work for an adventure tourism company.The managing director has suggested that the company should develop specific tour packages for non-English speakers,families with at least five children,all under age 2,and women over 50.What criteria would you use to evaluate each segment?

Question 72

A company selling clothing portrays all people wearing its clothing in its advertising as being interested in physical fitness,involved in a range of outdoor activities,fans of the television show Survivor and concerned about the environment.What segmentation variable or variables is this company using? Who would these advertisements not necessarily appeal to?

Question 73

A fashion boutique features clothing made with real gold thread,including evening dresses selling from $10,000 to $20,000 each.Department stores such as K-Mart feature a range of clothing with most items under $50.These are examples of the use of which segmentation variable? Explain your answer.

Question 74

Why might a marketer segment using family structure?

Question 75

A target market is not viable unless marketing communications can reach the segment and the company can serve it better than competitors.

Question 76

The Fresh OJ Company's Healthy Heart juice targets consumers who like orange juice and who also want extra vitamins and no sodium.Their advertising suggests that orange juice should not just be drunk at breakfast but is a good choice at meals and during the day.How has The Fresh OJ Company used behavioural segmentation?

Question 77

A viable target market should ________.

A)not be reachable by other organisations
B)have needs that can adequately be served by the marketer
C)have enough growth potential to become profitable sometime in the future
D)have the same needs as similar sized groups
E)All of the above

Question 78

You see a former classmate.This person is so excited to show you pictures of their new twin babies.The picture shows two babies each wearing identical outfits,except one outfit is pink and the other outfit is blue.Without being told,how can you tell the gender of these two babies? Explain your answer.

Question 79

The market segment towards which an organisation directs its marketing efforts is referred to as its ________.

A)financial base
B)customer base
C)customer market
D)target market
E)demographic target

Question 80

A viable target market should ________.

A)be large enough to be profitable now and in the future
B)have homogeneous wants and needs that differ from those of other segments
C)be reachable through marketing communications
D)be measurable
E)All of the above