Question 1

Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies?

Accepted Answer

A)  individual marketing 
B)  one-to-one marketing 
C)  mass marketing 
D)  concentrated marketing 
E)  trigger-based marketing

Question 2

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."
-A company will always choose the largest and fastest-growing segments as the most attractive for it to enter.

Accepted Answer

A) True 
 B)False

Question 3

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."
-When using a niche marketing strategy, a firm goes after a large share of one or a few smaller segments.

Accepted Answer

A) True 
 B)False

Question 4

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."
-When competitors use differentiated marketing to focus on the customer's needs, a firm should use undifferentiated marketing to compete with them.

Accepted Answer

A) True 
 B)False

Question 5

Explain the different segmentation variables used in segmenting consumer markets.

Accepted Answer

The answer of Explain the different segmentation variables used in...

Question 6

Through ________ differentiation, brands can be differentiated on features, performance, or style and design.

Accepted Answer

A)  services 
B)  channel 
C)  people 
D)  product 
E)  price

Question 7

Papillon, a popular retailer of chic women's clothing, segments its market according to consumer lifestyles. Papillon most likely uses ________ segmentation for segmenting its market.

Accepted Answer

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

Question 8

The winning value proposition would be to offer ________.

Accepted Answer

A)  more for the same 
B)  more for less 
C)  more for more 
D)  same for less 
E)  same for more

Question 9

To the extent that a company can differentiate and position itself as providing superior customer value, it gains competitive advantage.

Accepted Answer

A) True 
 B)False

Question 10

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."
-Psychographic segmentation divides buyers into different segments based on lifestyle or personality characteristics.

Accepted Answer

A) True 
 B)False

Question 11

Why are demographic factors the most popular bases for segmenting customer groups?

Accepted Answer

The answer of Why are demographic factors the most popular...

Question 12

Harvey's Bookstore is a popular online bookstore that has differentiated itself through smooth-functioning delivery networks. This is an example of ________ differentiation.

Accepted Answer

A)  product 
B)  image 
C)  price 
D)  channel 
E)  people

Question 13

Which of the following is a disadvantage of using a differentiated marketing strategy?

Accepted Answer

A)  It generates far lower sales compared to an undifferentiated marketing strategy. 
B)  Customer loyalty is negatively impacted and difficult to obtain. 
C)  The costs of doing business increase. 
D)  Quality control problems increase. 
E)  Product safety decreases.

Question 14

Marketers often segment international markets according to the type and stability of government. In such instances, they segment markets based on ________.

Accepted Answer

A)  geographic location 
B)  economic factors 
C)  cultural factors 
D)  political factors 
E)  sociocultural factors

Question 15

Symbols such as the McDonald's golden arches, the colorful Google logo, the Nike swoosh, or Apple's "bite mark" logo provide strong company or brand recognition and are indicative of ________ differentiation.

Accepted Answer

A)  people 
B)  image 
C)  channel 
D)  services 
E)  product

Question 16

A market segment that is large enough or profitable enough to serve is ________.

Accepted Answer

A)  measurable 
B)  accessible 
C)  substantial 
D)  profitable 
E)  differentiable

Question 17

Why must marketers guard against stereotypes when using age and life-cycle segmentation?

Accepted Answer

The answer of Why must marketers guard against stereotypes when...

Question 18

The full mix of benefits on which a brand is differentiated and positioned is known as the brand's ________.

Accepted Answer

A)  value proposition 
B)  service life 
C)  value stream 
D)  supply chain 
E)  demand chain

Question 19

Which of the following is a drawback of local marketing?

Accepted Answer

A)  Local marketing increases manufacturing costs by reducing the economies of scale. 
B)  Local marketing requires specialization that is difficult to identify. 
C)  Local marketing is not profitable for most small firms. 
D)  Local marketing cannot accommodate the needs of modern buyers who are technology savvy. 
E)  Local marketing almost always results in brand dilution.

Question 20

Rex Steelworks makes steel sheets which the firm markets and sells to companies all over the world. Which of the following marketing strategies is most suitable for Rex Steelworks?

Accepted Answer

A)  one-to-one marketing 
B)  undifferentiated marketing 
C)  individual marketing 
D)  local marketing 
E)  trigger-based marketing

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

Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies?

Explain the different segmentation variables used in segmenting consumer markets.

Through ________ differentiation, brands can be differentiated on features, performance, or style and design.

Papillon, a popular retailer of chic women's clothing, segments its market according to consumer lifestyles. Papillon most likely uses ________ segmentation for segmenting its market.

The winning value proposition would be to offer ________.

To the extent that a company can differentiate and position itself as providing superior customer value, it gains competitive advantage.

Why are demographic factors the most popular bases for segmenting customer groups?

Harvey's Bookstore is a popular online bookstore that has differentiated itself through smooth-functioning delivery networks. This is an example of ________ differentiation.

Which of the following is a disadvantage of using a differentiated marketing strategy?

Marketers often segment international markets according to the type and stability of government. In such instances, they segment markets based on ________.

Symbols such as the McDonald's golden arches, the colorful Google logo, the Nike swoosh, or Apple's "bite mark" logo provide strong company or brand recognition and are indicative of ________ differentiation.

A market segment that is large enough or profitable enough to serve is ________.

Why must marketers guard against stereotypes when using age and life-cycle segmentation?

The full mix of benefits on which a brand is differentiated and positioned is known as the brand's ________.

Which of the following is a drawback of local marketing?

Rex Steelworks makes steel sheets which the firm markets and sells to companies all over the world. Which of the following marketing strategies is most suitable for Rex Steelworks?