Deck 7: Customer-Driven Marketing Strategy: Creating Value for Target Customers

Question 1

International Drilling Company segments its foreign markets by their overall level of economic development.This firm segments on what basis?

A)economic factors
B)cultural factors
C)political factors
D)legal factors
E)geographic factors

Answer 1

A

Question 2

When a business market segment is large or profitable enough to serve,it is termed .

A)accessible
B)actionable
C)measurable
D)substantial
E)differentiable

Answer 2

D

Question 3

When marketers at Procter & Gamble selected the Millennials,a demographic that includes college students,as an untapped group of potential customers for their Febreze line of products,they were executing which step in the process of designing a customer- driven marketing strategy?

A)mass marketing
B)positioning
C)targeting
D)market segmenting
E)differentiation

Answer 3

C

Question 4

Marketers of automobiles,financial services,and travel are most likely to use which of the following types of segmentation?

A)income
B)readiness stage
C)gender
D)occasion
E)usage rate

Question 5

ByWay Ventures chose a differentiated marketing strategy.The company had to weigh against when selecting this strategy.

A)extra research;costs
B)geographic segmentation;demographic segmentation
C)attitudes;perceptions
D)sales analysis;sales
E)increased sales;increased costs

Question 6

Jolene Enterprises mass produces an all- purpose floor cleaner,mass distributes it and mass promotes it.This firm uses _ marketing.

A)segmented
B)mass customization
C)differentiated
D)nontraditional
E)undifferentiated

Question 7

Cigarette,beer,and fast- food marketers have generated much controversy in recent years by their attempts to target .

A)inner- city minorities
B)urban professionals
C)suburban adults
D)the elderly
E)the poor in foreign markets

Question 8

MTV targets the world's teenagers,who have similar needs and buying behavior even though they are located in different countries.This is called segmentation.

A)cross- cultural
B)political and legal
C)intermarket
D)cultural
E)individual

Question 9

Demographic variables are frequently used in market segmentation because they .

A)involve fewer attributes to consider than other methods do
B)are easy to measure in comparison to many other methods
C)create more easily reached segments than other methods do
D)create smaller segments than other methods do
E)do not involve stereotypes

Question 10

What competitive positioning can attack a more- for- more strategy by introducing a brand offering with comparable quality at a lower price?

A)same- for- less
B)less- for- much- less
C)more- for- the- same
D)all- or- nothing
E)more- for- less

Question 11

Many firms make an effort to identify smaller,better- defined target groups by using .

A)positioning
B)multiple segmentation bases
C)mass marketing
D)differentiation
E)concentrated marketing

Question 12

Even though several options are available at any one time,there to segment a market.

A)are limited ways
B)is no single way
C)are four ways
D)is one single best way
E)is a most effective way

Question 13

Segmenting voters as either Democrats or Republicans is an example of _.

A)occasion segmentation
B)intermarket segmentation
C)demographic segmentation
D)psychographic segmentation
E)A and D

Question 14

Which type of statement first indicates the product's membership in a category and then shows its point- of- difference from other members of the category?

A)differentiation statement
B)vision statement
C)statement of intent
D)mission statement
E)positioning statement

Question 15

An organic farmer has identified three distinct groups who might be interested in his products: vegetarians,people who are concerned about chemicals in their foods,and people who consider themselves innovators and trendsetters.These three groups are examples of .

A)product mixes
B)marketing mixes
C)market positions
D)market segments
E)mass markets

Question 16

A company or market offer can be differentiated along the lines of product,image,services,channels,or .

A)customer service
B)people
C)reputation
D)packaging
E)labeling

Question 17

When an effective program can be designed for attracting and serving a chosen segment,the segment is best described as .

A)reachable
B)accessible
C)differentiable
D)actionable
E)measurable

Question 18

Which of the listed choices is NOT a positioning task?

A)surveying frequent users of the product
B)selecting an overall positioning strategy
C)selecting the right competitive advantages
D)identifying a set of possible competitive advantages upon which to build a position
E)effectively communicating and delivering the chosen position to the market

Question 19

When a company interacts one- on- one with large numbers of customers to create customer- unique value by designing products and services tailor- made to individual needs,it is following .

A)differentiated marketing
B)localization
C)mass customization
D)mass marketing
E)micromarketing

Question 20

Which positioning strategy offers consumers a "good deal" by offering equivalent- quality products or services at a lower price?

A)more- for- the- same
B)all- or- nothing
C)more- for- less
D)less- for- much- less
E)same- for- less

Question 21

Lifestyle characteristics and personality characteristics are two types of variables used in segmentation.

A)demographic
B)user status
C)psychographic
D)behavioral
E)social class

Question 22

Mass marketers,such as Target and Venture Stores,often ignore market segment differences and target the whole market with one offer.What is their approach to segmenting?

A)differentiated marketing
B)undifferentiated marketing
C)target marketing
D)micromarketing
E)concentrated marketing

Question 23

When it first opened for business,Home Depot claimed to offer better products at lower prices.This hard- to- sustain value proposition is called .

A)more- for- more
B)same- for- less
C)more- for- the- same
D)same- for- more
E)more- for- less

Question 24

What are the four steps,in order,to designing a customer- driven marketing strategy?

A)market alignment,market segmentation,differentiation,and market positioning
B)market segmentation,differentiation,positioning,and targeting
C)positioning,market segmentation,mass marketing,and targeting
D)market recognition,market preference,market targeting,and market insistence
E)market segmentation,targeting,differentiation,and positioning

Question 25

Which type of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage,expertise,and performance?

A)people differentiation
B)services differentiation
C)channel differentiation
D)price differentiation
E)product differentiation

Question 26

Neiman Marcus claims superior quality,performance,and style.The owners provide the most upscale products and services and charge a higher price to cover the higher costs.What type of positioning does Neiman Marcus use?

A)more- for- less
B)repositioning
C)more- for- the- same
D)more- for- more
E)the- same- for- less

Question 27

"Less- for- much- less" positioning involves meeting consumers' .

A)lower quality requirements at the lowest possible price
B)lower quality requirements in exchange for a lower price
C)high quality requirements at a discounted rate
D)quality performance requirements at a lower price
E)high quality requirements at the lower possible price

Question 28

Few people can afford the best in everything they buy.At times everyone needs a product with less quality or performance with a correspondingly lower price.In this case a consumer would purchase a product positioned with a _ strategy.

A)same- for- less
B)all- or- nothing
C)more- for- the- same
D)less- for- much- less
E)more- for- less

Question 29

To evaluate the different market segments your company serves,you would look at all of these factors EXCEPT which one?

A)company resources
B)segment structural attractiveness
C)company values
D)segment size
E)segment growth

Question 30

Which of the following statements illustrates why stereotypes should be avoided when using age and life- cycle segmentation?

A)Some 70 year olds use wheelchairs;others play tennis.
B)The majority of 20 year olds have to work;the same holds true for 30 and 40 year olds.
C)Old women love to shop;young women love it more!
D)Most 10- year- old boys are mischievous.
E)both C and D

Question 31

Today,the low cost of setting up shop makes it even more profitable to serve very small niches.

A)in malls in major cities
B)far from competitors
C)on the Internet
D)near major competitors
E)in central business districts

Question 32

Using concentrated marketing,the marketer goes after a share of _ .

A)large;the mass market
B)small;a small market
C)large;one or a few niches
D)small;a large market
E)moderate;local

Question 33

When comparing itself to its competitors,Hidden Valley describes its Ranch dressing as the original.This is the the manufacturer has planned for the product.

A)market segment
B)position
C)services differentiation
D)marketing mix
E)channel differentiation

Question 34

Sanguine Services is a small company that practices a marketing strategy in which its limited resources are used to go after a large share of two small niches.Sanguine practices which one of these strategies?

A)mass
B)concentrated
C)geographically dispersed
D)differentiated
E)undifferentiated

Question 35

Refer to the scenario below to answer the following questions.
Herb Marks was making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent.Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase.Within three months,the writing utensils were a hit! Herb Marks had never thought of marketing his talent,but Mel's enthusiasm and the recent sales were enough to change his mind.
With limited resources,Herb contacted three additional specialty shops within 100 miles.He explained his
manufacturing processes and engraving options to each.All three shops' owners placed a trial order.Within two months,just prior to the holiday season,each shop owner placed an additional order.Herb was ecstatic!
"I figured business would slow down after that," Herb stated,"but in February I was contacted by Elmore Distributors.At that point,I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven- state area.Herb was offered a two- year contract and immediate inclusion in Elmore's promotional flyer.Herb Marks accepted the offer and,along with it,the responsibility to produce thousands of wooden pens and pencils.
"I had to get a grip on the magnitude of this project," Herb added."I couldn't grow out of control.I was already working to capacity."
Herb decided to place his major focus on the large contract with Elmore.However,to avoid placing his total emphasis with one customer,Herb continued nurturing his four previously established accounts without targeting any additional customers.
"At this point,I had set up an assembly line in a rented building," Herb explained."I had to hire three full- time employees to work the line while I managed the customer orders and purchased materials." Herb paused."But I can't take the Elmore project for granted.It might not always be there.I'll have to have a good alternate plan if that day comes."
If Herb produced a variety of styles of pens and pencils with various wood types and engravings that he tailored specifically to each individual's order,he would be practicing .

A)concentrated marketing
B)local marketing
C)micromarketing
D)undifferentiated marketing
E)mass customization

Question 36

When Pacific Fisheries groups its customers by regions such as Asia,Australia,or New Zealand,it is using which segmenting base?

A)political and legal factors
B)demographics
C)economic factors
D)benefits sought
E)geographic location

Question 37

The division of buyers into groups based on their knowledge,attitudes,uses,or responses to a product is segmentation.

A)age and life cycle
B)psychographic
C)demographic
D)behavioral
E)geographic

Question 38

Cheap Heaps Auto specializes in lower quality vehicles,with a few dents,that are priced a great deal lower than other used cars.Cheap Heaps has chosen to position its products with a strategy.

A)more- for- the same
B)same- for- less
C)less- for- much- less
D)more- for- less
E)A or C

Question 39

You have just created the "perfect" ad.It communicates the full mix of benefits upon which the brand is differentiated and positioned.This full positioning of the brand is called .

A)value profiling
B)differentiated marketing
C)target marketing
D)its value proposition
E)capturing the consumers' attention

Question 40

Which of the following is the narrowest marketing strategy?

A)undifferentiated marketing
B)differentiated marketing
C)local marketing
D)mass marketing
E)segmented strategy

Question 41

A marketer focuses on several commonalities among all consumers.This marketer appears to be engaging in _ .

A)differentiated marketing
B)concentrated marketing
C)mass customization
D)segmented marketing
E)undifferentiated marketing

Question 42

When New Port Shipping uses segmented marketing,it targets several segments and designs separate offers for each one.This approach is called marketing.

A)differentiated
B)undifferentiated
C)individual
D)niche
E)target

Question 43

A product's position is based on important attributes as perceived by .

A)managers
B)market conditions
C)consumers
D)suppliers
E)competitors

Question 44

Which of the following is NOT one of the reasons a segment would be less attractive to a company?

A)power of buyers
B)substitute products
C)concentrated market
D)strong competitors
E)power of suppliers

Question 45

There are several different sports watches for cyclists.When compared to its competitors,the Bike Nashbar watch is the least expensive.The Acumen Basic is the only one designed for older cyclists who prefer a larger display.Sports Instrument is the most comfortable of all the available watches.This describes the _ of the three sports watches.

A)positions
B)mass marketing strategies
C)selling orientations
D)marketing mixes
E)consumer orientations

Question 46

Most attempts to target children and minority groups provide to target customers.

A)harm
B)disadvantages
C)expenses
D)benefits
E)education

Question 47

Target marketing sometimes generates controversy and concern.Issues usually involve the targeting of consumers with products.

A)elderly;durable
B)unexpected;deceptive
C)young;appealing
D)vulnerable;potentially harmful
E)vulnerable;marketing

Question 48

Developing a strong position within several segments creates more total sales than marketing across all segments.

A)target
B)niche
C)undifferentiated
D)differentiated
E)individual

Question 49

Which difficult- to- sustain positioning strategy attempts to deliver the "best- of- both"?

A)less- for- much- less
B)more- for- less
C)same- for- less
D)more- for- more
E)more- for- the- same

Question 50

The answer to the customer's question "Why should I buy your brand?" is found in the .

A)value proposition
B)quality image
C)pricing and promotion structure
D)customer services
E)differentiation

Question 51

Markets can be segmented into groups of nonusers,ex- users,potential users,first- time users,and regular users of a product.This method of segmentation is called _.

A)benefit
B)user status
C)behavior
D)loyalty status
E)usage rates

Question 52

When Positive Image,Inc.caters to clothing,cosmetics,and toiletries markets,it most likely uses which type of segmentation?

A)behavior
B)gender
C)geographic
D)occasions
E)readiness

Question 53

Your firm has decided to localize its products and services to meet local market demands.A good approach to use would be _ segmentation.

A)customer
B)image
C)geographic
D)benefit
E)end- use

Question 54

Which type of segmentation centers on the use of the word when,such as when consumers get the idea to buy,when they actually make their purchase,or when they use the purchased item?

A)impulse
B)behavioral
C)psychographic
D)emergency
E)occasion

Question 55

When firms use symbols,colors,or characters to convey their personalities,they are using differentiation.

A)reputation
B)subliminal
C)image
D)company
E)people

Question 56

The Jay Group hires better employees than the competition by conducting lengthy searches and interviews.Management also trains employees much better than competitors do.The Jay Group has gained a strong competitive advantage through which type of differentiation?

A)image
B)product
C)people
D)channel
E)services

Question 57

In general,a company should enter only segments in which it can and .

A)offer lower prices;develop customer loyalty
B)offer superior value;gain advantages over competitors
C)offer superior value;ship faster
D)offer lower prices;ship faster
E)gain advantages over competitors;mass market its products

Question 58

A catalog retailer has identified African- American professionals between the ages of thirty- five and forty- five as the group of customers within the larger market that is a potential market for its products.The retailer plans to direct its marketing efforts toward this group of consumers.The retailer has identified a .

A)target market
B)market aggregation
C)product mix
D)mass market
E)marketing mix

Question 59

Superior Auto Sales,a chain of high- end used car dealerships,wants to sum up its company positioning and brand positioning in a formal way.Superior's management would use a .

A)vision statement
B)company statement
C)positioning statement
D)mission statement
E)competitive statement

Question 60

At one time Miller Beer was known as the "champagne of bottled beer." Unfortunately,Miller drinkers did not drink much beer.To increase sales,Miller was repositioned to attract the members of the middle working class.This segmentation approach is .

A)usage rate
B)psychographic
C)user status
D)behavioral
E)benefit

Question 61

Which group determines a product's position relative to competing products?

A)suppliers
B)manufacturers
C)consumers
D)retailers
E)wholesalers

Question 62

Barney Hopkins has compiled a list of things that make segments more attractive.Which one of the following items should NOT be on the list?

A)few substitute products
B)competition with superior resources
C)financial resources
D)relative power of buyers
E)lack of powerful suppliers to control prices

Question 63

What is the following an example of? "To busy,mobile professionals who need to always be in the loop,BlackBerry is a wireless connectivity solution that gives you an easier,more reliable way to stay connected to data,people,and resources while on the go."

A)positioning statement
B)service differentiation
C)irresponsible target marketing
D)concentrated segmentation
E)competitive advantage

Question 64

A brand difference is worth establishing and promoting to the extent that it satisfies all of the criteria below EXCEPT which one?

A)affordable
B)distinctive
C)divisible
D)important
E)noticeable

Question 65

Refer to the scenario below to answer the following questions.
Herb Marks was making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent.Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase.Within three months,the writing utensils were a hit! Herb Marks had never thought of marketing his talent,but Mel's enthusiasm and the recent sales were enough to change his mind.
With limited resources,Herb contacted three additional specialty shops within 100 miles.He explained his
manufacturing processes and engraving options to each.All three shops' owners placed a trial order.Within two months,just prior to the holiday season,each shop owner placed an additional order.Herb was ecstatic!
"I figured business would slow down after that," Herb stated,"but in February I was contacted by Elmore Distributors.At that point,I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven- state area.Herb was offered a two- year contract and immediate inclusion in Elmore's promotional flyer.Herb Marks accepted the offer and,along with it,the responsibility to produce thousands of wooden pens and pencils.
"I had to get a grip on the magnitude of this project," Herb added."I couldn't grow out of control.I was already working to capacity."
Herb decided to place his major focus on the large contract with Elmore.However,to avoid placing his total emphasis with one customer,Herb continued nurturing his four previously established accounts without targeting any additional customers.
"At this point,I had set up an assembly line in a rented building," Herb explained."I had to hire three full- time employees to work the line while I managed the customer orders and purchased materials." Herb paused."But I can't take the Elmore project for granted.It might not always be there.I'll have to have a good alternate plan if that day comes."
In the scenario,how does Herb segment his market?

A)geographically
B)demographically
C)loyalty status
D)income
E)usage rate

Question 66

Refer to the scenario below to answer the following questions.
Herb Marks was making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent.Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase.Within three months,the writing utensils were a hit! Herb Marks had never thought of marketing his talent,but Mel's enthusiasm and the recent sales were enough to change his mind.
With limited resources,Herb contacted three additional specialty shops within 100 miles.He explained his
manufacturing processes and engraving options to each.All three shops' owners placed a trial order.Within two months,just prior to the holiday season,each shop owner placed an additional order.Herb was ecstatic!
"I figured business would slow down after that," Herb stated,"but in February I was contacted by Elmore Distributors.At that point,I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven- state area.Herb was offered a two- year contract and immediate inclusion in Elmore's promotional flyer.Herb Marks accepted the offer and,along with it,the responsibility to produce thousands of wooden pens and pencils.
"I had to get a grip on the magnitude of this project," Herb added."I couldn't grow out of control.I was already working to capacity."
Herb decided to place his major focus on the large contract with Elmore.However,to avoid placing his total emphasis with one customer,Herb continued nurturing his four previously established accounts without targeting any additional customers.
"At this point,I had set up an assembly line in a rented building," Herb explained."I had to hire three full- time employees to work the line while I managed the customer orders and purchased materials." Herb paused."But I can't take the Elmore project for granted.It might not always be there.I'll have to have a good alternate plan if that day comes."
In marketing his writing utensils to his four specialty- shop customers,Herb is using marketing.

A)mass
B)individual
C)mass customization
D)niche
E)undifferentiated

Question 67

Ford Motor Company emphasizes "Quality First-Ford Tough" in its truck products.In doing so,the company has developed a differentiation strategy based on _ .

A)people
B)image
C)positioning
D)services
E)products

Question 68

When competitors use differentiated or concentrated marketing,marketing can be disastrous.

A)undifferentiated
B)customized
C)differentiated
D)concentrated
E)localized

Question 69

When the size,purchasing power,and profiles of a market segment can be determined,it possesses the requirement of being .

A)substantial
B)observable
C)accessible
D)measurable
E)actionable

Question 70

By studying its less loyal buyers,a company can detect which brands are most its own.

A)complementary to
B)competitive with
C)used with
D)overlooked with
E)similar to

Question 71

Bob and Phyllis Cords own two retail stores,one in Pottstown and one in Norristown.Though the towns are only 40 miles apart,the consumers at both stores are very different demographically.Bob and Phyllis alter the product offerings between both locations in an effort to cater to both demographic groups.This is an example of .

A)local marketing
B)demographic segmentation
C)mass customization
D)psychographic segmentation
E)A and C

Question 72

As in consumer segmentation,many marketers believe that and segmentation provide the best basis for segmenting business markets.

A)age and life- cycle;psychographic
B)income;usage rate
C)user status;user loyalty
D)geographic;demographic
E)benefits;buying behavior

Question 73

Consumer and business marketers use many of the same variables to segment markets.Business marketers use all of the following EXCEPT _ .

A)situational factors
B)purchasing approaches
C)brand personalities
D)operating characteristics
E)personal characteristics

Question 74

Shampoo marketers rate buyers as light,medium,or heavy product users.This is segmentation.

A)usage rate
B)occasions
C)benefit
D)psychographic
E)user status

Question 75

Which of the following is the most logical reason for P&G offering products that compete with one another on the same supermarket shelves?

A)Retailers request it.
B)Different people want different mixes of benefits from the products they buy.
C)It creates healthy competition.
D)Different people want a greater selection.
E)Procter & Gamble has little competition.

Question 76

When Walmart customizes its merchandise store by store to meet shopper needs,it is practicing .

A)psychographic marketing
B)individual marketing
C)niche marketing
D)social segmentation
E)local marketing

Question 77

Your current assignment at York Foods is to find the major benefits people look for in product classes,the kinds of people who look for each benefit,and the major brands that deliver each benefit.What is this segmentation method called?

A)behavioral
B)benefit
C)demographic
D)psychographic
E)age and life cycle

Question 78

Pendergraff Pet Supplies divides the pet market according to the owners' race,occupation,income,and family life cycle.What type of segmentation does Pendergraff use?

A)behavioral
B)geographic
C)demographic
D)psychographic
E)lifestyle

Question 79

You have discovered that the segments you are targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs.These segments are .

A)differentiable
B)accessible
C)reachable
D)observable
E)measurable

Question 80

Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to it.What does USP stand for?

A)unique services practice
B)unique selling proposition
C)unique selling product
D)unique sales pitch
E)unique strategic practice