Question 1

One advantage of a market-product grid is that it can be used to

Accepted Answer

A)  make cost-cutting decisions under conditions of uncertainty.
B)  screen many new product ideas in order to select the one with the best long-run market potential.
C)  determine which target market segments to select and which product groupings to offer.
D)  select representative samples of consumers for marketing research studies.
E)  relate the product life cycle to consumer demand. C

Question 2

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

Accepted Answer

A)  identify competitors that provide similar products that satisfy a firm's customers' needs.
B)  provide guidance to reposition 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)  correspond directly to each of the five environmental forces. D

Question 3

The William Morris Agency represents country singer Trace Adkins in negotiations with various venues in which he could perform.Imagine that the agency decided the singer would not perform at venues located in small town communities that have less than 100,000 people.Thus,of the agency is using __________ segmentation.

Accepted Answer

A)  entertainment
B)  psychographic
C)  geographic
D)  usage rate
E)  behavioral C

Question 4

Describe the four general bases that are used to segment consumer markets.

Accepted Answer

The answer of Describe the four general bases that are...

Question 5

Grocery retailer Safeway displays the thousands of items it sells in aisles containing related items or product groupings.Examples would be the pet food aisle or the soft drink aisle.Why would Safeway display and sell product groupings in this manner?

Accepted Answer

A)  The groupings increase the number of market-product combinations on the market-product grid,which makes it a more manageable framework for subsequent analysis.
B)  This form of product groupings makes it easier for customers to get in and out of the store more quickly,creating time utility.
C)  The products are grouped so people can relate to them in a more meaningful way when they shop.
D)  Product groupings can be generated quantitatively to show which adhere to the 80/20 rule.
E)  Individual suppliers get preferential treatment based upon the number of different UPCs they provide in a given store.

Question 6

When a firm chooses a one product,multiple market segment strategy,its customers are likely to see __________.

Accepted Answer

A)  improved service
B)  increased number of choices
C)  higher retail prices because of higher marketing costs
D)  higher product quality and consumer value
E)  lower retail prices because of lower production costs

Question 7

Market segmentation helps business firms to respond more effectively to the wants of groups of potential buyers in order to

Accepted Answer

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 8

-In the Apple market-product grid shown above for its personal computer line,the "individuals" consumer segment seems willing to purchase four of the items in Apple's product line.This allows Apple to enjoy cost savings due to __________.

Accepted Answer

A)  segment differentiation
B)  marketing synergies
C)  product synergies
D)  segment repositioning
E)  product differentiation

Question 9

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

Accepted Answer

A)  family branding.
B)  mass customization.
C)  "Tiffany/Walmart" marketing.
D)  economies of scale marketing.
E)  build-to-order.

Question 10

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

Accepted Answer

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 11

Airline programs that encourage passengers to repeatedly use the same airline focus on usage rate and employ a __________ strategy.

Accepted Answer

A)  rate of recurrence
B)  product utilization
C)  incidence
D)  frequency marketing
E)  consumption index

Question 12

Organizational synergy is the increased customer value achieved through

Accepted Answer

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 13

Segmentation based on where prospective customers live or work is referred to as

Accepted Answer

A)  zip code segmentation.
B)  geographic segmentation.
C)  regional segmentation.
D)  MSA segmentation.
E)  NAICS code segmentation.

Question 14

Which of the following is a criterion used in forming market segments?

Accepted Answer

A)  similarity of segments to competitors' segments
B)  differences between potential suppliers or distributors
C)  differences of needs of buyers within segments
D)  market size of the segment
E)  simplicity and cost of assigning potential buyers to segments

Question 15

Market segmentation involves aggregating prospective buyers into groups that (1)__________ and (2)will respond similarly to a marketing action.

Accepted Answer

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

Question 16

A market-product grid refers to

Accepted Answer

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 17

Market segments refer to

Accepted Answer

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 18

Criteria for forming segments involve both similarities and differences.Which of the following statements is most accurate?

Accepted Answer

A)  Within a segment,the needs of potential buyers should be different; among segments,the needs of buyers should be similar.
B)  Within a segment,the needs of potential buyers should be similar; among segments,the needs of buyers should be different.
C)  The needs of buyers should be different,both between segments and within segments.
D)  The needs of buyers should be the same,both between segments and within segments.
E)  If there are any differences at all,you should forgo any segmentation.

Question 19

A marketing manager should develop segments for a market that meet five principal criteria.List these important factors in forming market segments.

Accepted Answer

The answer of A marketing manager should develop segments for...

Question 20

A market-product grid is a framework to relate

Accepted Answer

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 closest competitor.
E)  the market segments of potential buyers to products offered or potential marketing actions by an organization.

Exam 8: Market Segmentation, Targeting, and Positioning