Deck 7: Segmenting and Targeting Markets

Question 1

Clorox targets individuals who buy lots of cleaning products (heavy users).Some of these users are mainly interested in cleaning bathrooms,while others are more concerned with kitchen cleanliness.Clorox doesn't approach these two groups differently but addresses both types of people as heavy users.This is an example of how companies use benefit segmentation.

Answer 1

False

Question 2

The Hispanic-American market has limited buying power.

Answer 2

False

Question 3

Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife Gets Home.It is an advice book for new fathers.An appropriate market segment for this book could be family life cycle.

Answer 3

True

Question 4

Faze magazine is a magazine targeted to Canadian teenagers.Its publisher most likely uses geodemographic variables for segmentation.

Question 5

Elefanten is a manufacturer of high-priced designer shoes for children up to the age of twelve.Its target market is parents with annual incomes greater than $75,000.Elefanten uses demographic segmentation variables.

Question 6

AkPharm,Inc.has developed Cat-Sip,a lactose-free milk designed to be digestible by cats.The market for this product is cats.

Question 7

An HGTV television show called Designing for the Sexes obviously relies on psychographic segmentation.

Question 8

Reader's Digest magazine sent millions of subscribers with different medical conditions,such as high blood pressure or high cholesterol,a booklet filled with articles and prescription-drug ads,all about the very condition each person has.Reader's Digest's segmentation plan used benefit segmentation variables.

Question 9

Sav-On Stores,which operates a number of Piggly Wiggly grocery stores,learned that 25 percent of its shopping base is responsible for a substantial majority of its revenue.This is the general idea posited by the 80/20 principle.

Question 10

Geography,psychographics,and benefits sought are examples of possible segmentation variables used by marketers.

Question 11

U.S.paint manufacturers traditionally use different formulae for developing paint to be used in the humid Southeast,the frigid Midwest,and the hot and dry Southwest.This is an example of how demographic segmentation is used.

Question 12

When Schlitz beer advertised its product with the slogan "You only go around once in life,so you might as well reach for the gusto," it was relying on demographic segmentation.

Question 13

A segmentation plan must produce segments that exhibit responsiveness.In other words,if all customers are equally concerned about protecting the environment,there is no need to offer regular and all-natural versions to the segment.

Question 14

A market segment is deemed to have substantiality if it contains a large numbers of potential customers.

Question 15

The business market consists of four broad segments.They are producers,resellers,governments,and regions.

Question 16

Reality-based television shows are targeted to people who like to believe that they could become a part of such a show and find their way to fame and fortune.This is an example of psychographic segmentation.

Question 17

Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife Gets Home.It is an advice book for new fathers.This is an example of the use of demographic segmentation variables.

Question 18

One reason marketers use market segmentation as a tool is that once completed,the process need not be repeated.

Question 19

Segmentation by customer relationship occurs when business marketers segment their markets by income,occupation,and educational variables.

Question 20

Allyson has a small business that creates personalized gift baskets and is now in the process of identifying groups of buyers that have relatively similar product needs.She is engaged in the process of market segmentation.

Question 21

Munson Jams & Jellies is a small company in Oregon.Its owner has been heard to say that she engages in mass marketing.Marketers would call her strategy an undifferentiated targeting strategy.

Question 22

ProtecTV is a product that selectively mutes words and phrases that some people find objectionable.It can be connected to a television,VCR,DVD player,or a satellite TV system.The manufacturer of ProtecTV targeted parents who did not want their children exposed to what they consider to be offensive language.The primary market segment for ProtecTV is:

A) all parents
B) educators
C) children under the age of 12
D) parents with preteens in their households
E) all those interested in screening out offensive language

Question 23

Ol' Roy (the Wal-Mart store brand)dry dog food is sold at minimal cost with no promotion.Kal-Kan Foods markets Pedigree dry dog food and spends time and money to develop ads to show the relationships between dogs and their owners.The two companies' products provide the same level of nutrients to dogs.These products are not differentiated.

Question 24

A(n)_____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have relatively similar product needs.

A) market universe
B) market segment
C) aggregated market
D) segmentation base
E) population sample

Question 25

A _____ is a group of people or organizations that has wants and needs that can be satisfied by particular product categories,has the ability to purchase these products,and is willing to exchange resources for the products.

A) firm
B) buyer
C) market
D) consumer
E) target

Question 26

Pitkin Enterprises produces animal figurines for children and young adults.For children,it makes hard-to-break figurines that are promoted and distributed in the same manner as the delicate,porcelain ones made for young adults.Pitkin engages in multisegment targeting.

Question 27

A group of high school freshman stop by an electronics store.The store has just received a new line of high-end flat panel televisions.The televisions range in price from $2,000 to $7,000.All of the students want this new style of TV,but none has the means to buy one.Is this group of consumers a potential market for the flat-screen televisions?

A) Yes,they are a potential market since they are all about the same age.
B) No,they do not have the ability to purchase at this time.
C) No,to qualify as a market,they must need the product.
D) Yes,they are a market because this product could satisfy their consumer wants and desires.
E) Yes,they are a market because this group shares relatively similar product needs and purchasing characteristics.

Question 28

Once a marketer is aware of all possible segmentation variables,choosing which variables to use is a simple,scientific process.

Question 29

The process of market segmentation involves breaking down a heterogeneous market into homogeneous and identifiable segments.If this process is carried to its extreme,then one could say that:

A) this is the reason segmentation cannot be used by small firms
B) all individuals have the same needs in spite of cultural differences
C) everyone belongs to the same segment
D) segmentation controls the demand for products
E) every individual in the world is a market segment

Question 30

The purpose of market segmentation is to:

A) reduce the market down to a specific size that the firm can handle
B) divide the market into equal size and profit regions for sales territories
C) group a large number of markets together enabling a company to serve them simultaneously
D) develop a generalized definition of the market as a whole
E) enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups

Question 31

To position a product,a manufacturer must develop a marketing mix to influence potential consumers' overall image of that product.

Question 32

One of the forces influencing the growth of one-to-one marketing is more demanding and time-poor consumers.

Question 33

The difference between one-to-one marketing and the traditional mass marketing approach is difficult to articulate.

Question 34

Most consumers understand the existing privacy laws and regulations.

Question 35

_____ is the process of dividing a market into meaningful groups that are relatively similar and identifiable.

A) Perceptual mapping
B) Positioning
C) Micromarketing
D) Market sampling
E) Market segmentation

Question 36

Which of the following is NOT one of the four criteria identified in the text for successful market segmentation?

A) substantiality
B) identifiability and measurability
C) accountability
D) accessibility
E) responsiveness

Question 37

Market segmentation can assist marketers to do all of the following EXCEPT:

A) develop more precise definitions of customer needs and wants
B) identify which variable base should be used for segmenting
C) identify when and how customer needs are changing
D) identify where new opportunities are emerging
E) evaluate where and why demand is falling

Question 38

A market is people or organizations that have:

A) the ability,willingness,and power to buy
B) a medium of exchange and products they desire
C) needs and wants and an ability and willingness to buy
D) unmet needs or wants and products or services that satisfy those unmet needs or wants
E) communication,financial,and capital resources

Question 39

E & V Bridal Studios is a wedding consulting business designed to appeal to East Asians.At one time it used the same marketing mix for all of its customers,but it has discovered that it needs a different marketing mix to appeal to its ethnic customers.For example,Chinese brides want elaborate red gowns,and Vietnamese brides wear a brocaded gown with long sleeves and a Mandarin collar.E&V Bridal Studios uses a procedure called _____ to divide its large market.

A) micromarketing
B) positioning
C) market segmentation
D) cannibalization
E) perceptual mapping

Question 40

Hildy Webb and LaTishe Brown own Creative Catering and would like to improve customer satisfaction and increase repeat business.When you ask them to describe a typical customer,they say it is impossible and explain that with corporate functions,family affairs,and fund-raisers,they do not have a typical customer.You suggest it is time for market segmentation because:

A) it will enable them to build an accurate description of customer needs by group and to design a marketing mix to fit each segment
B) Creative Catering needs to reduce the size of the market they serve
C) Creative Catering needs to learn how to group these markets together into one market to serve all of them adequately
D) it will help develop a generalized definition of the market as a whole and reveal the optimal marketing mix for this market
E) this will position the company in the minds of their consumers as compared to their competitors

Question 41

E&V Bridal Studios is a wedding consulting business targeted to East Asians.It accommodates the various cultures by providing services to appeal to Koreans,Vietnamese,Chinese,and Japanese customers.E&V Bridal Studies markets its services to its customers by using ethnicity to divide its customers into segments.Ethnicity is its primary:

A) perceived image
B) accessibility quotient
C) environmental control
D) segmentation variable
E) differentiation guide

Question 42

Every six months or so,some manufacturer introduces a fancy new shape or color for the boxes that house the hardware to run PCs.These companies contend that beige is boring,and that people are ready for "something fun." These manufacturers ignore the fact Americans like their technology in plain wrappers--look at how few colored cell phones you see.These bright colors and odd shapes have failed because the market segment to which they are targeted lacks:

A) substantiality
B) identifiability and measurability
C) responsiveness
D) reliability
E) accessibility

Question 43

SRD Research Firm has conducted marketing research on the market for concrete siding for homes.The research firm has determined there are thousands of homeowners who want the security,safety,warmth,and stability provided by concrete siding.These homeowners are generally married and between 25 and 54 years of age.They tend to live in suburban neighborhoods and most subscribe to lifestyle magazines.If you were interpreting these results you might suggest that SRD:

A) conduct additional research because it has no idea about the measurability of its segments
B) examine the research report again to see if it can determine segment accessibility
C) conduct a follow-up analysis to determine if the segments it might choose would respond differently from other segments to its marketing strategy
D) not segment the concrete siding market because the only market for siding is contractors who build the homes
E) segment the concrete siding market based on the information provided and concentrate its efforts on suburban homeowners between twenty-five and fifty-four who read lifestyle magazines

Question 44

The Middleton Health Club has a new fitness program for expectant mothers.After placing fliers at the offices of area obstetricians,Middleton's class filled up within two days.Which segmentation success criterion was most influential in the success of this promotion?

A) substantiality
B) identifiability
C) measurability
D) causality
E) responsiveness

Question 45

DCS Corporation is a company that makes barbecue grills.It has expanded into high-priced,multi-purpose grills for people who want to be able to cook all their food outside.Facing little competition,DCS designed an excellent line of specialty grills,had good distribution,used effective promotion with this market,and within four years had a respectable market share.Yet financial losses every year have caused DCS to decide to drop this line.The reason could be that this market segment,relative to the resources devoted to it,lacked:

A) reliability
B) identifiability and measurability
C) substantiality
D) accessibility
E) causality

Question 46

Market researchers estimate thousands of Americans have high blood pressure and do not know it because they do not have annual medical exams.A pharmaceutical company that has developed a medicine to reduce blood pressure should not count on this group to be a good target market because the group lacks:

A) both accessibility and responsiveness
B) accountability
C) both accessibility and substantiality
D) substantiality,identifiability,and measurability
E) reliability and responsiveness

Question 47

A manufacturer of lenses used in microscopes,binoculars,and telescopes,has segmented its market into scientific equipment manufacturers,sporting equipment manufacturers,and retailers who sell replacement lenses.In order for this segmentation scheme to be successful,all of the following criteria must be met EXCEPT:

A) substantiality
B) accessibility
C) identifiability and measurability
D) complexity
E) responsiveness

Question 48

Market segmentation helps businesses to:

A) define customer needs and wants more precisely
B) more accurately define business objectives
C) more efficiently allocate resources
D) better evaluate their performances
E) do all of the above

Question 49

Alexa Ling,the new owner of a stationary shop,understands the need to segment her market.Available marketing research indicates there is much demand in the community for personalized gifts.Ling has few resources and cannot engage in intensive consumer research to precisely identify a segment.Which of the following strategies would you suggest she employ?

A) develop an undifferentiated strategy,because it is not a large community and she could create a single marketing mix which would serve the entire community
B) employ a macrosegmentation strategy because the data needed for such a strategy is both easy to get and fits her needs exactly
C) use a single-variable strategy because it offers an inexpensive alternative that would not require much experience to employ
D) use a multiple-variable segmentation strategy because it is easier to use than single-variable segmentation
E) conduct a VALS investigation of her buying market

Question 50

Listerine Essential Care toothpaste is designed to reduce plaque and to prevent gingivitis.Its ads state,"After age 35,3 out of 4 adults have some form of gum disease." The toothpaste is targeted to the market segment over the age of 35.This age variable that has been used to distinguish the market for this toothpaste is an example of a(n):

A) perceived variable
B) accessibility quotient
C) mass market
D) segmentation base
E) differentiation guide

Question 51

The requirement for a market segment to be responsive means:

A) over half of the consumers in the identified segment will be actively interested in the product
B) all the segments identified by a marketer should respond to the marketing mix
C) all the segments identified by a marketer should not respond to the marketing mix
D) the segments identified by a marketer should not differ in the level of their responsiveness to the marketing mix
E) the segments identified by a marketer should differ in how it responds to the marketing mix when compared to another segment confronted with the same mix

Question 52

The marketing researcher for Chickadee,a manufacturer of designer clothing for infants and toddlers,has submitted a report on potential segments for expansion of its marketing efforts.She noted an increase of professional women over the age of 35 who are leaving their jobs to have their first babies.She described this segment as having substantiality.This means it:

A) has enough special stores,magazines,and other outlets that it will be possible to direct advertisements at this group
B) is large enough to permit a profitable market effort toward its members
C) exhibits a response rate to marketing variables different from the rates of other segments
D) is too large and needs to be reduced to a more easily identifiable and measurable size
E) will be difficult to develop a product to match this group of buyers

Question 53

If a market segment is especially motivated by coupons in newspapers,which segmentation success criterion is most influential in the success of this program?

A) responsiveness
B) identifiability and measurability
C) substantiality
D) accessibility
E) functionality

Question 54

_____ is the segmenting of markets based on the region of the country or the world,market size,market density (number of people within a certain unit of land),or climate.

A) Community segmentation
B) Geographic segmentation
C) Geodemographic segmentation
D) PRIZM segmentation
E) Demonstratable regionalization

Question 55

To be useful,a segmentation scheme must produce segments that meet four basic criteria.The criteria are:

A) segmentable,targetable,reliability,and homogeneity
B) tangibility,flexibility,causality,and accessibility
C) substantiality,identifiability and measurability,accessibility,and responsiveness
D) reliability,flexibility,tangibility,and accessibility
E) responsiveness,reliability,homogeneity,and causality

Question 56

_____ are characteristics of individuals,groups,or organizations that marketers use to divide a total market into segments.

A) Differentiation guides
B) Segmentation bases
C) Perceptual maps
D) Responsiveness quotients
E) Accessibility quotients

Question 57

According to the criteria of _____ a selected segment must be large enough to warrant developing and maintaining a special marketing mix.Serving the specific needs of this segment must be commercially viable,even if the number of potential customers is small.

A) causality
B) accountability
C) responsiveness
D) accessibility
E) substantiality

Question 58

The city of Blossom Valley has a job training program for the homeless but has had a difficult time reaching this group with information about the program even though radio and television stations have provided public service advertisements free of charge.This illustrates a segmentation problem with:

A) substantiality
B) identifiability and measurability
C) responsiveness
D) accessibility
E) accountability

Question 59

United Social Service Agency wants to identify segments by their readiness to participate in a drug and alcohol program or in prenatal care.The agency will need to gauge whether there are enough people to justify setting up the service.The FIRST segmentation criterion problem that would greet this proposal is:

A) responsiveness
B) identifiability and measurability
C) accessibility
D) substantiality
E) responsibility

Question 60

Which of the following is NOT a reason why marketers might select single-variable segmentation instead of multiple-variable segmentation?

A) Single-variable segmentation is simpler to explain and understand.
B) Single-variable segmentation is a more precise description of the segment.
C) Single-variable segmentation requires limited amounts of secondary data.
D) The size of the segments will be smaller with single-variable segmentation.
E) With single-variable segmentation,it is easier to perform the segmentation itself.

Question 61

Income,ethnic background,gender,and age are all examples of _____ segmentation bases.

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

Question 62

Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife Gets Home.It is an advice book for new fathers.What demographic variables have been used to define the market for this book?

A) benefit and lifestyle
B) gender and family life-cycle stage
C) age,gender,and personality
D) benefit and gender
E) usage-rate and lifestyle

Question 63

You would expect to find more stores targeting hunters in Idaho than in Delaware because hunting is a more popular pastime in the Rocky Mountain state than it is in the Eastern Seaboard state.A national chain of stores targeted to hunters would likely use _____ segmentation when stocking merchandise in a particular store.

A) geographic
B) economic
C) demographic
D) benefit
E) geodemographic

Question 64

E&V Bridal Studios is a wedding consulting business targeted to East Asians.It accommodates the various cultures by providing services to appeal to Koreans,Vietnamese,Chinese,and Japanese customers.E&V Bridal Studio relies on a ____ segmentation variable to identify its market.

A) geographic
B) sociocultural
C) socioeconomic
D) usage rate
E) demographic

Question 65

ProtecTV is a product that selectively mutes words and phrases that some people find objectionable.It can be connected to a television,VCR,DVD player,or a satellite TV system.The manufacturer of ProtecTV targeted parents who did not want their children exposed to what they consider to be offensive language.What demographic segmentation variable has its manufacturer used to identify its target market?

A) gender
B) benefit
C) usage-rate
D) family life cycle
E) ethnic

Question 66

The Grief Store sells keepsake urns,cremation urns,funeral jewelry,and books on how to cope with the grief caused by a loved one dying.Demographically,the Grief Sore is probably using _____ segmentation.

A) benefit
B) lifestyle
C) motive
D) gender
E) family life-style

Question 67

Elle magazine is targeted to women under 30 years of age.The magazine's segmentation plan is based on _____ segmentation.

A) demographic
B) sociocultural attributes
C) psychographic
D) usage rate
E) geodemographic

Question 68

The debate over gay marriages is causing a great deal of furor,but it has done little to deplete the importance of the affluent gay market to businesses.Georgia Pacific and Mitchell Gold,a furniture manufacturer,are two companies that have implemented and maintained marketing mixes designed to meet the needs of lesbians and gays.To these companies and others,lesbians and gays are a desirable:

A) market sample
B) target market
C) perceived market
D) functional market
E) market base

Question 69

In Miami,the most popular Cuban radio station starts broadcasting in Russian for two hours daily to reach the 300,000 Russian-speaking people that live in South Florida.The radio station is using _____ segmentation.

A) usage rate
B) ethnic
C) socioeconomic
D) geographic
E) gender

Question 70

In 2004,T.D.Waterhouse USA tied one of its promotional campaigns to the Chinese New Year.The slogan used for the campaign was "Plan Now for Success during the Upcoming Year of the Monkey." Postcards were mailed to Asian-Americans all over the United States.The segmentation base used for this strategy was:

A) geodemographic
B) geographic
C) demographic
D) lifestyle
E) psychographic

Question 71

Finding that having to pester mom to take them to get their film processed inhibited kids from taking pictures,Kodak introduced a camera set that included a single-use camera packaged with an envelope to mail the film back to Kodak for developing.Kodak's segmentation plan used _____ segmentation.

A) ethnicity
B) income
C) age
D) gender
E) occupation

Question 72

Almost all cell phones sold in the United States sold are black.Almost all cell phones sold in Europe are color,and very few black phones are sold.A cell phone manufacturer knowing this information could use _____ segmentation when selling its phones internationally.

A) geographic
B) economic
C) demographic
D) benefit
E) multi-positioning

Question 73

A manufacturer of blankets knows heavy 100 percent wool blankets sell better in the New England area where the winters are harsh and that lighter-weight blankets sell better in the Southeast market where mild winters require fewer and lighter covers for the bed.Segmenting the market according to climate is an example of _____ segmentation.

A) psychographic
B) lifestyle
C) perceptual
D) demographic
E) geographic

Question 74

Marketers use _____ to segment markets because this information is widely available,and factors such as age or gender are often related to consumer purchasing and consumption behavior.

A) benefits
B) psychographics
C) demographics
D) usage rates
E) sociocultural attributes

Question 75

Which of the following statements is NOT a reason why consumer goods companies take a regional approach to marketing,rather than a national approach?

A) Many firms need to find new ways to generate sales because of sluggish and intensely competitive markets.
B) A regional approach gives marketing managers control over the competitive environment.
C) Computerized checkout stations with scanners enable retailers to assess accurately which brands sell the best in each region.
D) Many packaged goods manufacturers are introducing new regional brands intended to appeal to local preferences.
E) A more regional approach allows companies to react more quickly to competition.

Question 76

Women have been treated as second-class citizens by the sporting goods industry,but in 2002,sporting goods manufacturers and retailers began aggressively pursuing this market.Nike opened two women-only boutiques called Nike Goddess to test how receptive women are to its new merchandising concepts.Which type of demographic segmentation is the sporting goods industry using?

A) lifestyle
B) usage rate
C) benefit
D) age
E) gender

Question 77

General Mills,Inc.,is the owner of the Betty Crocker brand.The Betty Crocker catalog sells cooking equipment and tableware and was initially targeted to women 45 and older.In 2001,General Mills decided to revamp the catalog to reach women between the ages of 25 and 45.What demographic variables did General Mills use to segment its market?

A) gender and age
B) lifestyle,gender,and age
C) gender,age,benefit,and family life cycle
D) benefit and age
E) benefit and gender

Question 78

The New York Life Insurance Company has developed a Web site for Chinese Americans.The site is written in both Mandarin and Cantonese languages and reflects the Chinese culture with its use of the traditional colors of red and gold.According to the text,why would New York Life have developed a site specifically targeted to Chinese Americans instead of the Asian American market?

A) The Asian American market is homogeneous.
B) All Asian Americans have the same cultural traditions.
C) Asian Americans comprise the largest minority in the United States.
D) New York Life has targeted one of the Asian American submarkets.
E) While Asian Americans have substantial buying power,average household income is substandard.

Question 79

E&V Bridal Studio us a wedding consulting business has defined its market segments as couples with an Asian heritage who want to include elements of their culture in their wedding to make the event more special.What form of demographic segmentation does the bridal studio use?

A) geographic
B) income
C) ethnic
D) benefit
E) lifestyle

Question 80

According to the text,Procter & Gamble would have sponsored Explosion Musical,a six-city concert tour targeting Hispanic teens,because:

A) P&G wanted to use niche marketing to reach a segment that lacks accessibility
B) statistics indicate that Hispanic Americans are migrating to northeastern cities
C) of how quickly this segment of the U.S.population is growing
D) Hispanic Americans do not drink any beverages with caffeine
E) Hispanic Americans have consumption patterns similar to other wealthy American groupings