Question 1

A market-product grid is a framework to relate the market segments of potential buyers to

Accepted Answer

A)  estimated expenses for products sold.
B)  products offered or potential marketing actions by an organization.
C)  total anticipated revenue.
D)  total anticipated profit.
E)  market share of the closest competitor. B

Question 2

The Zappos segmentation strategy is based on

Accepted Answer

A)  offering the best selection of shoes and the best service to online shoppers.
B)  designing shoes for every type of occasion.
C)  dividing all their customers into two distinct segments: people shopping for low price and people shopping for style.
D)  offering the best selection of shoes through multiple channels of distribution.
E)  maintaining the simplest method of price points to make the purchase process easy. A

Question 3

Model E is a new type of car manufacturer that relies on the Internet ordering. "Think of Model E as the Dell of the auto industry. We design just a few products that consumers truly want, leveraging best-in-class components and micro-factory approaches for rapid design, launch, and direct delivery," said William Santana Li, president and CEO of Model E. Model E manufactures each car when a customer chooses from a limited number of options and orders. Model E relies on

Accepted Answer

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

Question 4

The place a product occupies in consumers' minds on important attributes relative to competitive products is referred to as

Accepted Answer

A)  product repositioning.
B)  relative positioning.
C)  competitive positioning.
D)  product positioning.
E)  selective perception.

Question 5

A relatively homogenous group of prospective buyers that results from the market segmentation process is referred to as a(n) __________.

Accepted Answer

A)  market segment
B)  target market
C)  customer base
D)  ultimate consumer
E)  preferred customer

Question 6

To effectively positioning a product or brand, companies take four steps: (1) identify the important attributes for the product or brand class; (2) discover how target customers rate competing products or brands with respect to these attributes; (3) ___________; and (4) reposition the company's product or brand in the minds of potential customers.

Accepted Answer

A)  discover where the company's product or brand is on these attributes in the minds of potential customers
B)  decide whether to keep or delete the market segment that your product offering targets
C)  identify the competitors' brands that make up the consideration set
D)  create a marketing plan based on customers' perceptions
E)  identify market niches that were not selected during the market segmentation process

Question 7

Small athletic shoe manufacturers such as Vans have targeted 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 8

When Ann Taylor, a well-known retailer of sophisticated women's clothing, started losing sales to its own LOFT outlets that feature moderately priced casual clothes, Ann Taylor was dealing with the marketing phenomenon known as __________.

Accepted Answer

A)  amortization
B)  guerrilla marketing
C)  shrinkage
D)  marketing Darwinism
E)  cannibalization

Question 9

To effectively positioning a product or brand, companies take four steps: (1) identify the important attributes for the product or brand class; (2)__________; (3) discover where the company's product or brand is on these attributes in the minds of potential customers; and (4) reposition the company's product or brand in the minds of potential customers.

Accepted Answer

A)  decide whether to keep or delete the market segment that your product offering targets
B)  identify the competitors' brands that make up the consideration set
C)  identify market niches that were not selected during the market segmentation process
D)  discover how target customers rate competing products or brands with respect to these attributes
E)  create a marketing plan based on customers' perceptions

Question 10

Tailoring products or services to the tastes of individual customers on a high-volume scale is referred to as

Accepted Answer

A)  family branding.
B)  mass customization.
C)  product differentiation.
D)  economies of scale marketing.
E)  build-to-order.

Question 11

A market-product grid is a framework to relate the __________ to products offered or potential marketing actions by an organization.

Accepted Answer

A)  market segments of potential buyers
B)  marketing objectives of potential products
C)  total anticipated revenue
D)  total anticipated profit
E)  market share of the closest competitor

Question 12

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 13

Suppose marketers want to use product differentiation and market segmentation strategies. What question should they ask when considering the potential for cannibalization with these strategies?

Accepted Answer

A)  "Will our new products steal customers or sales from our older ones?"
B)  "Will the products compete head-to-head with those of a competitor?"
C)  "Can this action successfully draw customers away from competitors?"
D)  "Are there enough similarities within the market segment to warrant such high costs?"
E)  "Will this action eliminate the need for individualized advertising and promotion?"

Question 14

Apple's iPhone has a feature known as Apple Pay that lets you use your phone to pay for credit purchases, meaning you could leave your wallet at home. This feature sets the smartphone apart from its competitors and is part of Apple's strategy for

Accepted Answer

A)  product segmentation.
B)  market expansion.
C)  product differentiation.
D)  usage segmentation.
E)  psychographic segmentation.

Question 15

The fifth step in segmenting and targeting markets that link 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 16

The fourth step in segmenting and targeting markets that link customer needs to marketing actions is to __________.

Accepted Answer

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

Question 17

A perceptual map enables a manager to see how __________ perceive competing products or brands, as well as the firm's own product or brand.

Accepted Answer

A)  stakeholders
B)  competitors
C)  independent rating organizations such as Consumer Reports
D)  consumers
E)  the CEO of the firm

Question 18

Evergreen Air Center in Marana, Arizona, is the world's biggest parking lot for unwanted commercial aircraft. Airlines pay from $750 to $5,000 a month for its storage service. The warm, dry air where the operation is located serves as a cheap and effective airplane preservative. Which segmentation variable might Evergreen use to segment the market?

Accepted Answer

A)  NAICS sector, such as manufacturers, or retailers, or lawyers
B)  number of locations
C)  who buys, such as individual buyer or buying groups
D)  metropolitan statistical area
E)  number of employees

Question 19

All of the following are criteria used for forming market segments EXCEPT:

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 20

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...

Exam 8: Market Segmentation, Targeting, and Positioning