Deck 6: Customer Value-Driven Marketing Strategy: Creating Value for Target Customers 

Question 1

Delta, a Canadian video game manufacturer, targets teens between the ages of 13 and 18, providing free game trials and applications. The firm's marketing approach exemplifies segmentation.

A) income
B) gender
C) occasion
D) geographic
E) age and life-cycle

Answer 1

E

Question 2

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) behavioural segmentation
B) user status segmentation
C) usage rate segmentation
D) benefit segmentation
E) loyalty status segmentation

Answer 2

B

Question 3

Creating market offerings that best serve targeted customers is called differentiation.

Answer 3

True

Question 4

segmentation factors divide buyers into different groups based on social class, lifestyle, or personality characteristics.

A) Psychographic
B) User status
C) Geographic
D) Demographic
E) Behavioural

Question 5

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy?

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

Question 6

Atlantic Coast, a wholesale lobster distributor, groups its customers by regions in Canada, such as Central, Atlantic, Pacific and Prairies. For each region, Atlantic Coast tailors a different set of advertisements and promotions. The supplier is segmenting its market according to .

A) personality characteristics
B) behavioural factors
C) geographic location
D) demographics
E) benefits sought

Question 7

Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged men, and the other line targets younger, up-and-coming professionals. Harry's most likely segments the consumer market based on variables.

A) universal
B) psychographic
C) behavioural
D) demographic
E) geographic

Question 8

Bakeries and coffee bistros that offer pumpkin-flavoured items only during the autumn season target their consumers primarily through segmentation.

A) demographic
B) age and life-cycle
C) psychographic
D) income
E) occasion

Question 9

Bass Pro Shops recognizes that outdoors enthusiasts are a diverse group. Likely segments include hunters, campers, and boaters. What is this segmentation method called?

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

Question 10

Unilever's Dove brand, Nivea, Sephora and Canadian clothing brand Lululemon are developing new products in an effort to grow sales in a market they have previously paid little attention to. Lululemon expects to reach $1billion in sales by targeting which previously untapped market?

A) children
B) low income
C) senior citizens
D) medical professionals
E) men

Question 11

Which type of market segmentation is generally used by marketers who sell luxury products targeted to the affluent segments of a population?

A) gender
B) occasion
C) usage rate
D) benefits sought
E) income

Question 12

Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called segmentation.

A) behavioural
B) geographic
C) psychographic
D) age and life-cycle
E) user status

Question 13

By making health and fitness tracking devices aimed at three segments-Everyday Fitness; Active Fitness and Performance Fitness-Fitbit is segmenting based on which segmentation approach?

A) occasion
B) income
C) benefit
D) behaviour
E) demographic

Question 14

Lilly's, a furniture retailer, sells low-end furniture and accent pieces that are targeted toward lower-income consumer groups. Lilly's most likely segments the consumer market based on variables.

A) demographic
B) psychographic
C) behavioural
D) geographic
E) universal

Question 15

Pediacertain Pet Supplies, a pet-food company, divides the pet market according to the pet owners' gender, occupation, income, and family life cycle. In this case, which of the following variables has the company used for market segmentation?

A) benefit
B) geographic
C) demographic
D) psychographic
E) occasion

Question 16

consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

A) Market segmentation
B) Differentiation
C) Market targeting
D) Positioning
E) Mass marketing

Question 17

is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviour.

A) Market segmentation
B) Mass marketing
C) Differentiation
D) Market targeting
E) Positioning

Question 18

Companies today are moving away from target marketing and toward mass marketing.

Question 19

One reason demographic variables are the most popular bases for segmenting customer groups is because they .

A) create smaller segments
B) involve fewer attributes to consider
C) are easier to measure than other variables
D) create more easily accessible segments
E) do not involve stereotypes

Question 20

Explain the four major steps in designing a customer-driven marketing strategy.

Question 21

In cross-market segmentation, marketers form segments of consumers who have similar needs and buying behaviours even though they are located in different countries.

Question 22

Cupcake Gourmet, a high-end bakery in Manhattan, segments its customers according to those who frequent their store regularly, those who visit infrequently, and those who have never visited. This is an example of usage-rate segmentation.

Question 23

Market segments that can be effectively reached and served are said to be .

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

Question 24

Marketers typically limit their market segmentation analysis to a single variable in order to simplify the process.

Question 25

If men and women respond dissimilarly to the marketing efforts for a root beer-flavoured malt beverage, they are considered _ market segments.

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

Question 26

Gold Class Electricals, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on .

A) multiple segmentation bases
B) behavioural variables
C) psychographic segmentation bases
D) geographic regions
E) demographic variables

Question 27

New communications technologies like satellite TV and social media are likely to eliminate the need for markets to be geographically segmented as clusters of countries.

Question 28

Light users are often a small percentage of a company's market but account for a high percentage of total consumption.

Question 29

Producers of popular beverages often partner with global music channels to target consumers through a variety of promotional events and advertisements. This approach to marketing is referred to as segmentation.

A) age and life-cycle
B) occasions
C) intermarket
D) income
E) gender

Question 30

Not all companies that use income segmentation target the affluent.

Question 31

Countries can be segmented by cultural factors, grouping markets according to common languages, religions, values and attitudes, customs, and behavioural patterns.

Question 32

Tim Hortons relies heavily on which group of users to sustain its existing sales base?

A) first-time users
B) potential users
C) nonusers
D) ex-users
E) regular users

Question 33

When the size, purchasing power, and profiles of a market segment can be determined, the market segment is said to be _.

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

Question 34

Danko International is a multinational company that targets the BRICS countries (Brazil, Russia, India, China, and South Africa) because they're fast-growing developing economies and use to segment its world markets.

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

Question 35

Target and Kohl's have opened smaller-format stores designed to fit the needs of densely packed urban neighbourhoods. This is an example of geographic segmentation.

Question 36

When segments are distinguishable and respond differently to different marketing mix elements, they are said to be _.

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

Question 37

Geographic segmentation assumes that nations close to one another will have many common traits and behaviours.

Question 38

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

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

Question 39

Business and consumer marketers use many of the same variables to segment their markets.

Question 40

Demographic factors are the most popular bases for segmenting customer groups.

Question 41

A successful niche marketing strategy relies on a firm's .

A) knowledge of customer needs
B) affordable pricing
C) product positioning
D) availability of services
E) superior products

Question 42

Which of the following is an approach where firms target a whole market based on common consumer needs?

A) micromarketing
B) undifferentiated marketing
C) demographic segmentation
D) concentrated marketing
E) geographic segmentation

Question 43

Which of the following is true about local marketing?

A) It does not cater to individual stores.
B) It increases manufacturing costs.
C) It increases economies of scale.
D) It does not support evolving technologies.
E) It reduces logistical issues.

Question 44

Why do international markets need to be segmented?

Question 45

The marketing manager of Refresh Inc., a leading producer of soft drinks, is considering a differentiated marketing strategy. An important consideration is weighing increased sales against _ _ before selecting this strategy.

A) increased costs
B) decreased prices
C) increased demand
D) decreased production
E) increased profits

Question 46

Explain the four major segmentation variables for consumer markets.

Question 47

Briefly describe the characteristics of effective market segments.

Question 48

Instead of going after a small share of a large market, Stance socks is an example of a company that is going after a large share of one smaller segment. This is an example of .

A) differentiated marketing
B) concentrated marketing
C) extreme marketing
D) segmented marketing
E) local marketing

Question 49

By having over 90 different types of Tide detergent (stain remover, concentrate, scent, and HE liquid are just a few of the choices), Tide is trying to use a _ strategy.

A) concentrated
B) low cost
C) confusing
D) differentiated
E) niche

Question 50

Although not recommended, some marketers decide to ignore market segmentation and target the whole market with one offer. This is known as marketing.

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

Question 51

Compared with undifferentiated marketing, differentiated marketing is more likely to lead to .

A) higher costs of doing business
B) redundancy in product design across market segments
C) smaller market share in the industry
D) weaker product position in each market segment
E) reduced sales in each market segment

Question 52

Marketing the same product to a huge customer base without any customization is referred to as .

A) individual marketing
B) local marketing
C) mass marketing
D) niche marketing
E) differentiated marketing

Question 53

Business marketers use variables such as customer operating characteristics, purchasing approaches, situational factors, and personal characteristics.

Question 54

Explain with examples how marketers segment markets based on occasions, benefits sought, and user status.

Question 55

Describe age and life-cycle segmentation with examples. What are the precautions that marketers should take when using age and life-cycle segmentation?

Question 56

The surge in popularity of Canadian Craft Breweries like Beau's All Natural Brewing Co., Coulee Brew Co., Foghorn Brewing Company, and Persephone Brewing Co are primarily designed to meet the needs and wants of specific cities or regions. These are examples of marketing.

A) differentiated
B) local
C) niche
D) mass
E) individual

Question 57

A market segment is less attractive when _ .

A) it is difficult for new entrants to enter the segment
B) there are few aggressive competitors in the segment
C) substitute products are unavailable in the segment
D) buyers in the market segment have weak bargaining powers
E) it contains powerful suppliers who can control prices

Question 58

The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as .

A) niche marketing
B) micromarketing
C) global marketing
D) segmented marketing
E) undifferentiated marketing

Question 59

Describe how marketers use multiple-segmenting bases to their advantage.

Question 60

How do businesses segment their markets?

Question 61

Argonaut Food Stores, a retail giant, hires better-skilled employees than its competitors by employing strategic recruitment practices. It also conducts highly specialized training programs for its employees. In this case, Argonaut has focused on gaining a strong competitive advantage through _ differentiation.

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

Question 62

Which of the following is true of product positioning?

A) Consumers cannot position products with or without the help of marketers.
B) Consumers generally reevaluate products every time they make a buying decision.
C) To simplify the buying process, consumers are likely to position products in their minds.
D) A product's position is defined by the number of competitors in a market.
E) Product positioning has little influence on the design of marketing mixes.

Question 63

Micromarketing includes global marketing and standardized marketing.

Question 64

Compare and contrast the four major strategies that are generally used to target market segments. Provide an example for each of the four major strategies.

Question 65

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

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

Question 66

Describe the process by which companies identify attractive market segments and choose a target marketing strategy.

Question 67

Companies are likely to gain through speedy, convenient, or careful delivery of products.

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

Question 68

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 engaging in .

A) mass marketing
B) concentrated marketing
C) mass customization
D) differentiated marketing
E) local marketing

Question 69

Using a differentiated marketing strategy, a company is likely to design a product and a marketing program that will appeal to the largest number of buyers.

Question 70

At the extreme, micromarketing becomes insofar as products and marketing programs are tailored to the needs and preferences of customers.

A) local marketing
B) individual marketing
C) mass marketing
D) differentiated marketing
E) multi-segmented marketing

Question 71

Bose promises "better sound through research." This is an example of _ .

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

Question 72

The distinctive yellow and blue "hands held high" logo of a local daycare distinguishes it from other establishments. The logo is prominently displayed on its building, t-shirts worn by the children, and at fundraising events. The daycare has differentiated itself through .

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

Question 73

Describe a few ways in which a marketer can engage in socially responsible target marketing.

Question 74

Even if a segment has the right size and growth and is structurally attractive, a company must consider its own objectives and resources before targeting that segment.

Question 75

The full positioning of a brand is called the unique selling proposition.

Question 76

The low cost of setting up shop on the Internet makes it even more profitable to serve seemingly small niches.

Question 77

Concentrated marketing can market more effectively by fine-tuning its products, prices, and programs to the needs of carefully defined segments.

Question 78

Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies.

Question 79

Compare and contrast local and individual marketing.

Question 80

Developing separate marketing plans for separate segments requires very little marketing research or channel management.