Question 1

A potential disadvantage of multisegment targeting is _____,which occurs when sales of a new product cut into sales of a firm's existing products.

Accepted Answer

A)  cannibalization 
B)  synergy 
C)  positioning 
D)  demarketing 
E)  inelastic demand

Question 2

Define multisegment targeting and discuss the advantages and disadvantages of this targeting strategy.

Accepted Answer

The answer of Define multisegment targeting and discuss the advantages...

Question 3

The closer together two brands are on a perceptual map the:

Accepted Answer

A)  less perceptually alike they are 
B)  closer their prices are 
C)  more objectively alike they are 
D)  more likely an undifferentiated marketing strategy is in effect 
E)  more similarly perceived by consumers they are

Question 4

Clorox describes individuals who buy lots of cleaning products as heavy users.This is an example of how companies use benefit segmentation.

Accepted Answer

A) True 
 B)False

Question 5

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.

Accepted Answer

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

Question 6

Market segmentation:

Accepted Answer

A)  is a scientific technique for selecting ways to attract specific population samples 
B)  is rarely done by consumer products companies 
C)  only needs to be done once for each product 
D)  should be redone periodically 
E)  should be done every time a product enters a new stage of its life cycle

Question 7

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:

Accepted Answer

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

Question 8

The basic goal of one-to-one marketing is to:

Accepted Answer

A)  increase the market for the product category to new and current customers 
B)  eliminate the use of mass media for promotion and locate a direct communications channel 
C)  increase operating costs and locate new customers 
D)  reduce the number of company employees and increase overall sales 
E)  reduce costs through customer retention and increase revenue through customer loyalty

Question 9

H&M plans to open a new store in Saudi Arabia.It will be staffed completely by women.Saudi Arabia has strict laws about women interacting with men other than their husbands so only women will be permitted to shop there.Which type of demographic segmentation is H&M using?

Accepted Answer

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

Question 10

Fisher-Price developed a line of toys for infants in China.Babies make up the market for these products.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

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

Question 12

Clorox saw sales of its bleach products suffer when it introduced laundry detergents with bleach as an added ingredient.This is an example of:

Accepted Answer

A)  demarketing 
B)  cannibalization 
C)  undifferentiation 
D)  repositioning 
E)  perceptual confusion

Question 13

Mercedes-Benz
Daimler AG,the maker of Mercedes-Benz automobiles,is planning to launch a new line of downsized luxury vehicles in the United States by 2012.Daimler has experienced a recent drop in global sales attributed to its product mix that focuses on larger luxury automobiles.With increasing fuel prices and stricter U.S.fuel-economy standards coming down the pipeline,Daimler doesn't want to be left behind.Daimler is behind its competition,though.Its German rivals,Audi and BMW,have been relatively successful in the U.S.BMW"s Mini Cooper,demanding as much as $34,000,has already driven away with some of Daimler's potential sales.While Daimler already offers the Smart car in the U.S.,the new offerings will not be going after the same consumers.
-Refer to Mercedes-Benz.One potential problem is that some of the purchasers of Daimler's downsized luxury vehicles could be consumers who would have purchased a larger,higher-priced Mercedes-Benz.This situation is called:

Accepted Answer

A)  subjugation 
B)  cannibalization 
C)  sabotage 
D)  benefit transference 
E)  marginal sales

Question 14

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.

Accepted Answer

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

Question 15

Discuss the four trends that have resulted in the continuing growth of one-to-one marketing.

Accepted Answer

The answer of Discuss the four trends that have resulted...

Question 16

_____ is a method that clusters potential customers into neighborhood lifestyle categories and is a combination of geographic,demographic,and lifestyle segmentation.

Accepted Answer

A)  Geodemographic segmentation 
B)  Microsegmentation 
C)  Sociocultural clustering 
D)  Acculturation 
E)  Lifestyle segmentation

Question 17

Name and describe the three targeting strategies.For each strategy,name one advantage and one disadvantage of using the strategy.

Accepted Answer

The answer of Name and describe the three targeting strategies.For...

Question 18

Ad campaigns by Aleve pain reliever emphasize the fact that to get the same relief offered by one Aleve,you would need to take six aspirin or Tylenol and four Advil.These promotions are using the positioning base of:

Accepted Answer

A)  product class 
B)  competitor 
C)  product user 
D)  product merits 
E)  price and quality

Question 19

The marketing researcher for Pooch Party,a manufacturer of toys for dogs,has noticed an increased trend in pet owners dressing their dogs in clothing.The researcher thinks there is a market for designer clothing for small and medium-sized dogs,but he's not sure if the segment is substantial.In this case,substantiality means the segment:

Accepted Answer

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 20

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

Accepted Answer

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

Exam 8: Segmenting and Targeting Markets