Question 1

Which of the following is an example of a multiple products,multiple market segments strategy?

Accepted Answer

A)  College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the United States. 
B)  A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience. 
C)  Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes. 
D)  Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens. 
E)  Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Question 2

All of the following are criterion used for selecting target market segments except which?

Accepted Answer

A)  compatibility with the organization's objectives and resources 
B)  market size 
C)  simplicity and cost of assigning potential buyers to segments 
D)  competitive position 
E)  cost of reaching the segment

Question 3

Which of the following competitors mentioned in the textbook should the owner of a Wendy's restaurant monitor closely due to its explosive growth in the number of current and proposed locations-one that is or may soon be near this Wendy's?

Accepted Answer

A)  Burger King 
B)  In-N-Out Burger 
C)  McDonald's 
D)  Five Guys 
E)  Smashburger

Question 4

Name Maker is an online company that sells,among other items,high-end gift wrapping that can have custom slogans or names printed on it,such as the name of a person celebrating a birthday or a couple who is getting married.It is available for purchase for as little as per 12-foot roll.This is an example of

Accepted Answer

A)  family branding. 
B)  mass customization. 
C)  synergistic marketing. 
D)  "Tiffany/Walmart" marketing. 
E)  specialty customization.

Question 5

Selling a product to a different market segment usually requires a different marketing action that,in turn,means greater costs.If increased revenues don't offset extra costs of this action,a marketer should

Accepted Answer

A)  increase the advertising budget. 
B)  prune the product offerings. 
C)  family brand the products. 
D)  combine segments. 
E)  group products into categories.

Question 6

Cannibalization would most likely occur if

Accepted Answer

A)  Dell adds high-end speaker systems to its line. 
B)  General Mills launches Caramel Crunch Cheerios. 
C)  General Motors markets a motorcycle similar to the Can-Am Spyder Roadster three-wheel bike. 
D)  Pillsbury adds boxed sugar to its product mix. 
E)  Procter & Gamble adds a new line of baby clothing to its Pampers stable of products.

Question 7

There are five key steps in segmenting and targeting markets,which link market needs of customers to the organization's marketing program.List these five key steps.

Accepted Answer

The answer of There are five key steps in segmenting...

Question 8

What are the criteria used to select target markets?

Accepted Answer

The answer of What are the criteria used to select...

Question 9

To be identified as a market segment,members of the group must

Accepted Answer

A)  be similar in terms of their consumption behavior. 
B)  represent a large share of the entire market and have buying power. 
C)  have diverse needs and have potential for future growth. 
D)  have diverse needs and be willing and able to purchase the product. 
E)  have the potential for future growth and increased profit or ROI.

Question 10

The 80/20 rule suggests that

Accepted Answer

A)  80 percent of a firm's inventory should be readily available while 20 percent should be reserved for emergency demand. 
B)  80 percent of a firm's first-time users will become brand loyal while 20 percent will use the product only once and then abandon it. 
C)  80 percent of a firm's sales are obtained from 20 percent of its customers. 
D)  80 percent of a firm's marketing program expenses are tax deductible while 20 percent are not. 
E)  80 percent of a firm's products will be sold to ultimate consumers while 20 percent to organizational buyers.

Question 11

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 a segment 
D)  market size of the segment 
E)  potential of a marketing action to reach a segment

Question 12

A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as a

Accepted Answer

A)  needs table. 
B)  cross-tabulation. 
C)  market-product grid. 
D)  growth-share matrix. 
E)  product differentiation table.

Question 13

Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer the following question:

Accepted Answer

A)  Is this product useful on a global scale? 
B)  Is it possible to reposition this product? 
C)  Is there too much competition for this product? 
D)  Is the market loyal to the product? 
E)  Would segmentation be worth doing and is it possible?

Question 14

Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as

Accepted Answer

A)  consumer differentiation. 
B)  psychographics. 
C)  market segmentation. 
D)  market delineation. 
E)  aggregation marketing.

Question 15

Small athletic shoe manufacturers such as Vans target niche markets and make shoes designed to satisfy the needs of different specific groups of customers.This strategy is an example of

Accepted Answer

A)  market segmentation. 
B)  mass customization. 
C)  customized manufacturing. 
D)  single chain marketing. 
E)  market specific selection.

Question 16

Wonk is a unique furniture company that design,builds,and retails in Brooklyn,NY.You can customize your design with creative input,including personalizing items with wood and lacquer options or environmentally conscious materials and finishes,though the options are not unlimited.Wonk relies on

Accepted Answer

A)  order customization. 
B)  a one product, one market segment strategy. 
C)  build-to-order manufacturing. 
D)  specialty customization. 
E)  mass customization.

Question 17

All of the following are criteria used for forming market segments except which?

Accepted Answer

A)  difference of needs of buyers among segments 
B)  potential for increased profit 
C)  cost of reaching the segment 
D)  potential of a marketing action to reach a segment 
E)  simplicity and cost-effectiveness of assigning potential buyers to segments

Question 18

The final step in segmenting and targeting markets that links customer needs to marketing actions is to

Accepted Answer

A)  take marketing actions to reach target markets. 
B)  group potential buyers into segments. 
C)  select target markets. 
D)  group products to be sold into categories. 
E)  develop a market-product grid and estimate size of the overall market.

Question 19

College dorm residents frequently want to keep and prepare their own food and snacks to save money or have a late-night snack.However,their dorm rooms are often woefully short of space.MicroFridge marketers understand this and offer a combination microwave,refrigerator,and freezer targeted to these students.MicroFridge is most likely using which basis of segmentation?

Accepted Answer

A)  sociocultural segmentation 
B)  psychographic segmentation 
C)  geographic segmentation 
D)  behavioral segmentation 
E)  socioeconomic segmentation

Question 20

The annual Sporting News Baseball Yearbook uses 17 different covers featuring a baseball star from each of its regions in the United States,yet each regional issue has the same magazine content.The publisher is using which of the following segmentation strategies?

Accepted Answer

A)  multiple products with one segment 
B)  one product with one channel of distribution 
C)  one product with multiple market segments 
D)  one product with changes based on customer behavior 
E)  multiple products with multiple segments

Exam 8: Market Segmentation, targeting, and Positioning