Question 1

When Hallmark stores offer a product line that includes everything you need to have a Spiderman theme birthday party, what is the primary segmenting dimension that Hallmark is using?

Accepted Answer

A)  Gender 
B)  Family size 
C)  Benefits sought 
D)  Rate of use 
E)  Size of city

Question 2

Qualifying dimensions are those that actually affect the customer's purchase of a specific brand in a product-market.

Accepted Answer

A) True 
 B)False

Question 3

A generic market description looks at market broadly and from a customer's viewpoint.

Accepted Answer

A) True 
 B)False

Question 4

A "substantial" market segment is one which is big enough to be profitable.

Accepted Answer

A) True 
 B)False

Question 5

The marketing management team for Dada Motors brainstormed a variety of solutions to the problem of how to transport people in the world. This process came during the ____ step in the market segmentation process.

Accepted Answer

A)  disaggregating 
B)  market definition 
C)  segmenting 
D)  aggregating 
E)  approach selection

Question 6

The combined target market approach:

Accepted Answer

A)  tends to focus on small, homogeneous market segments. 
B)  aims at several target markets and offers each target market a unique marketing mix. 
C)  tries to improve the general appeal of a firm's basic marketing mix rather than tailor it to meet the strongly felt needs of some people. 
D)  works well only when each submarket of a product-market has a different demand curve. 
E)  None of these alternatives is correct for the combined target market approach.

Question 7

When a firm develops a marketing mix for teenage boys which is different from its marketing mix for teenage girls, which target market approach is it using?

Accepted Answer

A)  Single 
B)  Generic 
C)  Combined 
D)  Clustering 
E)  Multiple

Question 8

Which of the following is the best example of a "product-market?"

Accepted Answer

A)  The MP3 player market 
B)  The young adult exercise market 
C)  The software market 
D)  The convenience market 
E)  The status symbol market

Question 9

When identifying a company's market, managers need to avoid the mistake of:

Accepted Answer

A)  finding out what customers need. 
B)  thinking of a market as a group of customers with similar needs who will exchange money for goods and services that meet those needs. 
C)  trying to identify specific target markets within a general market. 
D)  describing their markets solely in terms of the products they sell. 
E)  thinking of the issue from the customer's point of view.

Question 10

"Homogeneous within" means that the customers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions.

Accepted Answer

A) True 
 B)False

Question 11

In the example for the 7-step approach (discussed in the text), an important determining need for the "resort seekers" is adult fun while the "family vacationers" want family fun.

Accepted Answer

A) True 
 B)False

Question 12

A complete product-market definition includes all the following descriptions except:

Accepted Answer

A)  what is the product type. 
B)  who are the firm's competitors. 
C)  what customers needs will be satisfied. 
D)  which customer types will desire the product. 
E)  in which geographic region will the firm compete for customers.

Question 13

In the seven-step approach, submarkets are nicknamed based on the determining dimensions and a description of the customer types.

Accepted Answer

A) True 
 B)False

Question 14

The main difference between a generic market and a product-market is that:

Accepted Answer

A)  a generic-market involves a less similar set of needs than does a product-market. 
B)  a product-market is usually larger than a generic market. 
C)  product-markets usually don't involve competition, but generic markets do. 
D)  sellers in a generic market are more concerned with prices than sellers in a product-market. 
E)  There is no difference between the two.

Question 15

Ford Motor Co. asks members of its target market to rate its cars and those of General Motors and Chrysler on a 7-point scale in terms of two dimensions (comfortable seats and engine power) so that it can establish a quadrant-grid map of these ratings. What type of analysis is Ford conducting?

Accepted Answer

A)  Positioning 
B)  Combining 
C)  Qualifying 
D)  Dimensional 
E)  Insight management

Question 16

The seven-step approach to segmenting product-markets (discussed in the text) helps narrow down from a broad set of opportunities to a specific target market and marketing strategy.

Accepted Answer

A) True 
 B)False

Question 17

A market in which sellers offer various, often diverse, ways of satisfying needs is called a _____ market.

Accepted Answer

A)  product 
B)  diverse 
C)  general 
D)  service 
E)  generic

Question 18

In the example for the seven-step approach to market segmentation (used in the text), which of the following is a qualifying need?

Accepted Answer

A)  a good bed 
B)  heating and cooling 
C)  a clean bathroom 
D)  security 
E)  All of these.

Question 19

A generic market is one in which

Accepted Answer

A)  products from different industries compete for customers by trying to satisfy the same basic need. 
B)  no firm can establish a competitive advantage. 
C)  a number of firms are all offering new or improved products in an effort to increase sales. 
D)  one seller has a patent for a superior product and other competitors imitate the leader with inferior products. 
E)  None of these alternatives is true.

Question 20

Which of the following is a possible danger when using a combining approach to target marketing?

Accepted Answer

A)  Competitors may do a better job appealing to submarkets. 
B)  Coordinating the different marketing mixes for the different segments is difficult. 
C)  The target market may become larger over time. 
D)  Economies of scale may develop. 
E)  All are dangers.

Exam 4: Focusing Marketing Strategy With Segmentation and Positioning

When Hallmark stores offer a product line that includes everything you need to have a Spiderman theme birthday party, what is the primary segmenting dimension that Hallmark is using?

Qualifying dimensions are those that actually affect the customer's purchase of a specific brand in a product-market.

A generic market description looks at market broadly and from a customer's viewpoint.

A "substantial" market segment is one which is big enough to be profitable.

The marketing management team for Dada Motors brainstormed a variety of solutions to the problem of how to transport people in the world. This process came during the ____ step in the market segmentation process.

The combined target market approach:

When a firm develops a marketing mix for teenage boys which is different from its marketing mix for teenage girls, which target market approach is it using?

Which of the following is the best example of a "product-market?"

When identifying a company's market, managers need to avoid the mistake of:

"Homogeneous within" means that the customers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions.

In the example for the 7-step approach (discussed in the text), an important determining need for the "resort seekers" is adult fun while the "family vacationers" want family fun.

A complete product-market definition includes all the following descriptions except:

In the seven-step approach, submarkets are nicknamed based on the determining dimensions and a description of the customer types.

The main difference between a generic market and a product-market is that:

Ford Motor Co. asks members of its target market to rate its cars and those of General Motors and Chrysler on a 7-point scale in terms of two dimensions (comfortable seats and engine power) so that it can establish a quadrant-grid map of these ratings. What type of analysis is Ford conducting?

The seven-step approach to segmenting product-markets (discussed in the text) helps narrow down from a broad set of opportunities to a specific target market and marketing strategy.

A market in which sellers offer various, often diverse, ways of satisfying needs is called a _____ market.

In the example for the seven-step approach to market segmentation (used in the text) , which of the following is a qualifying need?

A generic market is one in which

Which of the following is a possible danger when using a combining approach to target marketing?