Question 1

Refer to the scenario below to answer the following question(s).
Ruben Delgado was making wooden pens and pencils, which had unique engravings, as a hobby until Simon Yoder recognized Ruben's talent. Simon immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the wooden pencils were a hit with all students! Ruben Delgado had never thought of marketing his talent, but Simon's enthusiasm and the recent sales were enough to change his mind.
With limited resources, Ruben contacted three additional specialty shops within 100 miles that were situated near schools. He explained his manufacturing processes and engraving options to each. All three shop owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Ruben was ecstatic! "I figured business would slow down after that," Ruben stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven-state area. Ruben was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Ruben Delgado accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project," Ruben added. He decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Ruben continued nurturing his four previously established accounts without targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Ruben explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Ruben paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes."
-Niche marketing involves tailoring brands and promotions to the needs and wants of local customer groups-cities, neighborhoods, and even specific stores.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is true about the concentrated marketing strategy?

Accepted Answer

A)  Companies that rely on a few segments for all of their business will suffer if a segment turns sour. 
B)  Concentrated marketing is not profitable for most firms. 
C)  Niche marketing involves few risks for most firms. 
D)  Concentrated marketing involves going after a small share of a large market. 
E)  The Internet has limited the use and benefits of niche marketing.

Question 3

________ requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it.

Accepted Answer

A)  Gender segmentation 
B)  Psychographic segmentation 
C)  Benefit segmentation 
D)  Geographic segmentation 
E)  Age and life-cycle segmentation

Question 4

A ________ refers to the way a product is defined by consumers on important attributes-the place the product occupies in consumers' minds relative to competing products.

Accepted Answer

A)  core competency 
B)  value stream 
C)  value proposition 
D)  product position 
E)  product specification

Question 5

________ segmentation refers to dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

Accepted Answer

A)  Gender 
B)  Psychographic 
C)  Occasion 
D)  Geographic 
E)  Income

Question 6

Andrew Levitt runs a retail store in Norristown. Andrew's store stocks cold weather products as Norristown mostly has sub-zero temperatures. Which of the following is evident here?

Accepted Answer

A)  local marketing 
B)  concentrated marketing 
C)  segmented marketing 
D)  mass marketing 
E)  direct marketing

Question 7

________ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

Accepted Answer

A)  Geographic 
B)  Benefit 
C)  Occasion 
D)  Psychographic 
E)  Demographic

Question 8

Consumers who show their allegiance to brands, stores, or companies help marketers to segment consumers by their ________.

Accepted Answer

A)  user status 
B)  degree of loyalty 
C)  income 
D)  geographic location 
E)  benefit-seeking attitudes

Question 9

Refer to the scenario below to answer the following question(s).
Ruben Delgado was making wooden pens and pencils, which had unique engravings, as a hobby until Simon Yoder recognized Ruben's talent. Simon immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the wooden pencils were a hit with all students! Ruben Delgado had never thought of marketing his talent, but Simon's enthusiasm and the recent sales were enough to change his mind.
With limited resources, Ruben contacted three additional specialty shops within 100 miles that were situated near schools. He explained his manufacturing processes and engraving options to each. All three shop owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Ruben was ecstatic! "I figured business would slow down after that," Ruben stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven-state area. Ruben was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Ruben Delgado accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project," Ruben added. He decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Ruben continued nurturing his four previously established accounts without targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Ruben explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Ruben paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes."
-In marketing his wooden pens and pencils to specialty-shop customers, Ruben was most likely using ________ marketing.

Accepted Answer

A)  mass 
B)  trigger-based 
C)  concentrated 
D)  segmented 
E)  individual

Question 10

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Accepted Answer

A)  Mass customization 
B)  Targeting 
C)  Segmentation 
D)  Differentiation 
E)  Positioning

Question 11

Briefly explain local and individual marketing.

Accepted Answer

The answer of Briefly explain local and individual marketing....

Question 12

Explain the four major steps in designing a customer-driven marketing strategy.

Accepted Answer

The answer of Explain the four major steps in designing...

Question 13

Refer to the scenario below to answer the following question(s).
Ruben Delgado was making wooden pens and pencils, which had unique engravings, as a hobby until Simon Yoder recognized Ruben's talent. Simon immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the wooden pencils were a hit with all students! Ruben Delgado had never thought of marketing his talent, but Simon's enthusiasm and the recent sales were enough to change his mind.
With limited resources, Ruben contacted three additional specialty shops within 100 miles that were situated near schools. He explained his manufacturing processes and engraving options to each. All three shop owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Ruben was ecstatic! "I figured business would slow down after that," Ruben stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven-state area. Ruben was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Ruben Delgado accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project," Ruben added. He decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Ruben continued nurturing his four previously established accounts without targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Ruben explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Ruben paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes."
-Benefit segmentation requires finding the major benefits people look for in a product class, the kinds of people who look for each benefit, and the major brands that deliver each benefit.

Accepted Answer

A) True 
 B)False

Question 14

Several structural factors affect long-run segment attractiveness. These include all of the following EXCEPT ________.

Accepted Answer

A)  easy entry by new competitors 
B)  the segment does not match the company's long-run objectives 
C)  strong and aggressive competitors 
D)  many substitute products 
E)  power of buyers

Question 15

In the context of behavioral segmentation, markets segmented by ________ can be categorized into light, medium, and heavy product users.

Accepted Answer

A)  benefits sought 
B)  loyalty status 
C)  usage rate 
D)  user status 
E)  occasion

Question 16

"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) ________.

Accepted Answer

A)  positioning statement 
B)  statement of purpose 
C)  order-routine specification 
D)  vision statement 
E)  product specification

Question 17

A catalog retailer in the United States has identified African American professionals between the ages of 35 and 45 as a group of potential customers for its products. The retailer plans to direct its marketing efforts toward this group of consumers. Which of the following market segmentation variables did the catalog retailer most likely use?

Accepted Answer

A)  demographic 
B)  psychographic 
C)  user status 
D)  loyalty status 
E)  usage rate

Question 18

Malcolm Sanders, a graduate student from Boston, makes customized snowboards for local snowboarding enthusiasts. The demand for snowboards peaks during the winter months, a busy time for Malcolm. He advertises more aggressively and sells most of his snowboards around this time. Which market segmentation approach does Malcolm most likely use?

Accepted Answer

A)  gender segmentation 
B)  psychographic segmentation 
C)  occasion segmentation 
D)  geographic segmentation 
E)  age and life-cycle segmentation

Question 19

What are the major structural factors affecting long-run segment attractiveness?

Accepted Answer

The answer of What are the major structural factors affecting...

Question 20

What is product position? What functions do perceptual positioning maps serve?

Accepted Answer

The answer of What is product position? What functions do...

Exam 7: Customer Value-Driven Marketing Strategy: Creating Value for Target Customers