Question 1

Maintaining a unique value proposition can be sustained in the long term only in monopoly situations or monopolistic competition situations.

Accepted Answer

A) True 
 B)False

Question 2

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to

Accepted Answer

A) categorize each market segment by consumer demographics. 
B) establish her overall objectives. 
C) decide on a targeting strategy. 
D) develop a positioning strategy. 
E) evaluate the attractiveness of each segment.

Question 3

Shondra wants to develop a meal delivery service business and is working through the STP process. After establishing her objectives, describing potential market segments, and evaluating the attractiveness of each segment, Shondra now has to

Accepted Answer

A) differentiate his product line. 
B) consider future customer loyalty. 
C) create a perceptual map. 
D) select a target market. 
E) divide geographic segments into lifestyle groups.

Question 4

The phrase "birds of a feather flock together" captures the idea of ________ segmentation.

Accepted Answer

A) geodemographic 
B) benefit 
C) psychographic 
D) loyalty 
E) geographic

Question 5

Michael has identified four potential market segments for his Rent-A-Teacher service. He will now compare the segments to see if they are distinct from each other. Michael is evaluating whether or not each segment is

Accepted Answer

A) identifiable. 
B) responsive. 
C) profitable. 
D) reachable. 
E) substantial.

Question 6

During the years when Olympic games are being played, many manufacturers use the Olympic rings and medals as part of their promotional efforts. They are trying to position themselves in the customers' minds using

Accepted Answer

A) the value proposition. 
B) salient attributes. 
C) symbols. 
D) the competition. 
E) perceptual maps.

Question 7

Allyce is opening an upscale home decorating store in a growing suburban residential area. Allyce knows her target market is upper-income women living within 20 miles of her store. She can't afford to purchase Tapestry analysis. What would be the best way for her to determine her target area?

Accepted Answer

A) voter registration lists 
B) the city phone book 
C) real estate values by subdivision 
D) public school enrollment data 
E) new construction data

Question 8

In the Circles for a Successful Value Proposition framework, the value proposition is represented by

Accepted Answer

A) the intersection between customer needs\wants and competitors' benefits. 
B) the intersection between the firm's benefits and competitors' benefits. 
C) the intersection between customer needs\wants and the firm's product's benefits. 
D) the intersection between all three of the circles. 
E) the part of the firm's benefits that doesn't overlap with anything.

Question 9

When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be ________ to the company's offerings.

Accepted Answer

A) responsive 
B) perceptive 
C) identifiable 
D) reachable 
E) quantifiable

Question 10

For products like pencils and paper clips, marketers should probably use an undifferentiated targeting strategy.

Accepted Answer

A) True 
 B)False

Question 11

When selecting a target market, firms will be most successful if they

Accepted Answer

A) decide between demographic and geographic segmentation methods. 
B) seek out opportunities to customize products. 
C) develop a global communication plan. 
D) match the firm's competencies with a market segment's attractiveness. 
E) reposition the brand.

Question 12

Why do marketers often use perceptual maps when developing positioning strategies?

Accepted Answer

The answer of Why do marketers often use perceptual maps...

Question 13

While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do not help marketers determine

Accepted Answer

A) how old their customers are. 
B) what their customers need. 
C) where their customers live. 
D) which customers have young children. 
E) what income brackets their customers are in.

Question 14

Shannon is considering using psychographics to segment the market for her small travel agency. This approach to segmentation offers her an advantage because

Accepted Answer

A) it is based on underlying motivations of target customers. 
B) it is easier to use than demographics. 
C) the travel business doesn't respond well to other approaches to segmentation. 
D) psychographics is the preferred method for service businesses. 
E) psychographic segmentation is the least expensive method.

Question 15

Segmentation, targeting, and positioning involve several processes, many decisions, and many different options. With all that effort, why are marketers so concerned with STP?

Accepted Answer

The answer of Segmentation, targeting, and positioning involve several processes,...

Question 16

Marketers often create a special marketing mix for loyalty segments because these segments are

Accepted Answer

A) too large to service with ordinary targeting. 
B) difficult to identify. 
C) costly to acquire. 
D) generally profitable. 
E) constantly changing.

Question 17

Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order shoes with custom color combinations. This is a form of

Accepted Answer

A) micromarketing. 
B) concentrated targeting. 
C) psychographic segmentation. 
D) differentiated targeting. 
E) undifferentiated targeting.

Question 18

Write a value proposition for your favorite restaurant.

Accepted Answer

The answer of Write a value proposition for your favorite...

Question 19

Evaluate why a company would use a micromarketing strategy versus an undifferentiated strategy.

Accepted Answer

The answer of Evaluate why a company would use a...

Question 20

A company that sells only multigrain, low-calorie bread should use an undifferentiated targeting strategy.

Accepted Answer

A) True 
 B)False

Exam 9: Segmentation, Targeting, and Positioning

Maintaining a unique value proposition can be sustained in the long term only in monopoly situations or monopolistic competition situations.

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to

Shondra wants to develop a meal delivery service business and is working through the STP process. After establishing her objectives, describing potential market segments, and evaluating the attractiveness of each segment, Shondra now has to

The phrase "birds of a feather flock together" captures the idea of ________ segmentation.

Michael has identified four potential market segments for his Rent-A-Teacher service. He will now compare the segments to see if they are distinct from each other. Michael is evaluating whether or not each segment is

During the years when Olympic games are being played, many manufacturers use the Olympic rings and medals as part of their promotional efforts. They are trying to position themselves in the customers' minds using

Allyce is opening an upscale home decorating store in a growing suburban residential area. Allyce knows her target market is upper-income women living within 20 miles of her store. She can't afford to purchase Tapestry analysis. What would be the best way for her to determine her target area?

In the Circles for a Successful Value Proposition framework, the value proposition is represented by

When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be ________ to the company's offerings.

For products like pencils and paper clips, marketers should probably use an undifferentiated targeting strategy.

When selecting a target market, firms will be most successful if they

Why do marketers often use perceptual maps when developing positioning strategies?

While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do not help marketers determine

Shannon is considering using psychographics to segment the market for her small travel agency. This approach to segmentation offers her an advantage because

Segmentation, targeting, and positioning involve several processes, many decisions, and many different options. With all that effort, why are marketers so concerned with STP?

Marketers often create a special marketing mix for loyalty segments because these segments are

Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order shoes with custom color combinations. This is a form of

Write a value proposition for your favorite restaurant.

Evaluate why a company would use a micromarketing strategy versus an undifferentiated strategy.

A company that sells only multigrain, low-calorie bread should use an undifferentiated targeting strategy.