Deck 4: Focusing Marketing Strategy With Segmentation and Positioning

Question 1

A market is a group of competitors selling similar products.

Answer 1

False
Explanation: A market is a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services.

Question 2

The main difference between a "product-market" and a "generic market" is whether customer needs are similar or different.

Answer 2

False
Explanation: A generic market is a market with broadly similar needs-and sellers offering various, often diverse, ways of satisfying those needs. In contrast, a product-market is a market with very similar needs and sellers offering various close substitute ways of satisfying those needs.

Question 3

A generic market description includes customer needs and product-type terms.

Answer 3

False
Explanation: A generic market description doesn't include any product-type terms. It consists of only three parts of the product-market definition-without the product type.

Question 4

A "generic market" is a market in which sellers offer substitute products which are so similar that customers see them as "all the same."

Question 5

One of the difficult things about segmenting is that not every customer will neatly fit into some market segment.

Question 6

A "good" market segment should be composed of people who are as homogeneous as possible with respect to their likely responses to marketing mix variables.

Question 7

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

Question 8

A market is a group of two or more sellers who offer substitute ways of satisfying customer needs.

Question 9

The correct number of submarkets in a broad product-market is usually obvious, so the likelihood of managerial error is small.

Question 10

A firm's "relevant market for finding opportunities" should be bigger than the present product-market but not so large that it couldn't expand and still be an important competitor.

Question 11

Product type describes the goods and/or services that customers want.

Question 12

Market segmentation is a two-step process that involves naming broad product-markets and segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.

Question 13

The definition of a product-market includes a product type while the definition of a generic market does not include a product type.

Question 14

Ideally, segmenters should start with the idea that each person is "one of a kind" and can be described by a special set of dimensions that may be used to aggregate similar customers together.

Question 15

A product-market is a market with broadly similar needs--and sellers offering various, often diverse, ways of satisfying those needs.

Question 16

Market segmentation says that target marketers should develop one good marketing mix aimed at a fairly large market.

Question 17

Using one or two demographic dimensions to describe market segments usually does not provide enough detail for planning a marketing strategy.

Question 18

Effective market segmentation is a two-step process that starts with naming broad product-markets and then goes on to segmenting these broad product-markets into more homogeneous submarkets.

Question 19

Marketing-oriented managers see segmenting as a process of aggregating people with similar needs into a group.

Question 20

Marketing-oriented managers think of segmenting as a disaggregating process.

Question 21

Segmenting a broad product-market usually requires using several segmenting dimensions at the same time.

Question 22

"Good" market segments should be homogeneous (similar) within, heterogeneous (different) between, substantial, and operational.

Question 23

Cost considerations usually favor more aggregating and larger market segments, but smaller segments may be required to satisfy needs more exactly.

Question 24

A manager who aggregates all potential customers into a single product-market segment is likely to find that the segment is not homogeneous.

Question 25

A segmenter is more likely than a combiner to really satisfy a target market and build such a close relationship with customers that it faces no real competition.

Question 26

Dimensions that should be looked at when segmenting consumer markets are: geographic location and other demographic characteristics, behavioral needs, urgency to get needs satisfied, and willingness to compare and shop.

Question 27

The more heterogeneous a firm's target market becomes, the more likely the firm will see competition from an innovative segmenter.

Question 28

A product-market segment is "operational" if it is big enough to be profitable to the firm.

Question 29

A profit-oriented firm will usually want to continue aggregating potential customers into larger submarkets until every consumer fits neatly into some segment.

Question 30

"Good" market segments should be heterogeneous within and homogeneous between.

Question 31

"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.

Question 32

Saying that a market segment is "substantial" means that it contains customers from a variety of demographic variables.

Question 33

When segmenting markets, one should look at geographic location and demographic characteristics as well as customers' desire and willingness to compare and shop, but behavioral needs aren't important for this purpose.

Question 34

A personality trait like moodiness is a good example of an "operational" segmenting dimension.

Question 35

Planning Place and Promotion elements of a marketing mix is especially difficult if the dimensions of a product-market are not operational.

Question 36

Making a very specific marketing mix for a particular group is always less profitable than a more general marketing mix that appeals to a larger segment.

Question 37

The combined target market approach involves segmenting the market and choosing two or more segments, then treating each as a separate target market needing a different marketing mix.

Question 38

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

Question 39

With the "multiple target market approach" the marketer combines two or more homogeneous submarkets into one larger target market as a basis for one strategy.

Question 40

If a product-market segment is "homogeneous within," it is called a "substantial" target market.

Question 41

Market segmentation applies only to consumer goods and services; it cannot be applied to business products.

Question 42

A firm involved in international marketing should pay even more attention to segmenting than a firm that sells only in the United States.

Question 43

Firms that operate on the Internet are at a disadvantage when it comes to using approaches like CRM.

Question 44

International marketing typically requires less segmenting than domestic markets.

Question 45

A marketing manager who is able to use qualifying dimensions in forming market segments will not need to worry about determining dimensions.

Question 46

"Positioning" shows how proposed and/or present brands are located in a market--as seen by customers.

Question 47

CRM approaches are based on information from detailed customer databases.

Question 48

Positioning issues are especially important when competitors in a market appear to be very similar.

Question 49

CRM is a variation of the positioning approach.

Question 50

A firm is most likely to rely on customer relationship management (CRM) approaches when it does not have a database of information on individual customers.

Question 51

By differentiating the marketing mix to do a better job meeting customers' needs, the firm builds a competitive advantage.

Question 52

The qualifying dimensions help identify the "core benefits" that must be offered to everyone in a product-market.

Question 53

"Positioning" means using a map to show where a firm's products are distributed geographically.

Question 54

Computer-aided segmenting approaches eliminate the need for managerial judgment and intuition in selecting segmenting dimensions.

Question 55

The first step in segmenting international markets is to group countries that are close to each other into "common markets."

Question 56

Clustering is a technique that divides a large group of people into smaller groups, so that each small group is as diverse as the large group from which it was formed.

Question 57

A determining dimension for segmenting markets actually affects the purchase of a specific brand in a product-market.

Question 58

Clustering techniques can be used in segmenting to help find similar patterns within sets of data--to identify homogeneous groups of people.

Question 59

Clustering techniques try to find similar patterns within sets of data.

Question 60

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

Question 61

A generic market

A) may include sellers who compete in different product-markets.
B) would probably be broader than the firm's target market.
C) might be composed of several different product-markets.
D) has sellers offering a more diverse set of products.
E) All of these are correct for a generic market.

Question 62

Which of the following is the BEST example of a "generic market?"

A) The adult "personal expression" market
B) The roller blade market
C) The female exercise shoes market
D) The sports drink market
E) The sporting goods market

Question 63

In a generic market,

A) diverse types of products may compete for customers.
B) customers have broadly similar needs.
C) there may be many ways to satisfy customers' needs.
D) sellers may compete in different product-markets.
E) All of these are correct for a generic market.

Question 64

A pencil, a dictating machine, and a word processor might compete in the same

A) target market.
B) generic market.
C) product-market.
D) Any of these could be correct.

Question 65

A "market" consists of:

A) customers who are willing to exchange something of value.
B) a group of potential customers with similar needs.
C) sellers offering various ways of satisfying customer needs.
D) all of these are correct.

Question 66

A generic market is one in which

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 67

Marketing managers for Mountain Dew used a positioning statement to help focus efforts and gain market share in a competitive environment.

Question 68

In a generic market

A) sellers offer various, often diverse, ways of satisfying broadly similar needs.
B) consumers are offered various close substitute ways of satisfying needs.
C) everything is the same as in a product-market.
D) customers have very diverse needs.
E) sellers produce unbranded products.

Question 69

Compared to a product-market, a generic market:

A) Is more narrowly defined.
B) Has sellers offering a more diverse set of products.
C) Can never help marketers identify opportunities.
D) None of these is a good answer.

Question 70

A positioning analysis is a product-oriented approach.

Question 71

A ______________ market is a market with broadly similar needs and sellers offering various--and often diverse--ways of satisfying those needs.

A) homogeneous
B) product
C) relevant
D) generic
E) target

Question 72

A marketing manager has just learned about generic markets. This may lead the manager

A) to see a larger set of potential competitors.
B) to put less emphasis on market penetration or market development opportunities and more emphasis on product development opportunities.
C) to think about new ways of satisfying the needs of her current customers.
D) All of these alternatives are correct.

Question 73

Positioning analysis may lead a firm to segmenting, rather than combining.

Question 74

A generic market

A) related to a consumer's functional need is smaller than a related product-market.
B) might involve competition among skis, roller blades, bicycles, and ice skates.
C) might logically include rubber, cement, a lamp, and a CD player.
D) is usually narrower than the firm's target market.
E) All of these choices are correct.

Question 75

Which of the following is the BEST example of a "generic market?"

A) the meat market.
B) the minivan market.
C) the e-commerce market.
D) the beer market.
E) the "singles" entertaining market.

Question 76

A ______________ market is a market with broadly similar needs and sellers offering various--and often diverse--ways of satisfying those needs.

A) planned
B) target
C) central
D) generic
E) relevant

Question 77

A transistor radio, an MP3 player, and a portable CD player might compete in the same

A) single target market.
B) multiple target market.
C) product-market.
D) combined target market.
E) generic market.

Question 78

A digital camera, a computer video-cam, and a computer scanner might compete in the same

A) single target market.
B) generic market.
C) multiple target market.
D) combined target market.
E) product-market.

Question 79

A ____ is a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services.

A) segment
B) market
C) product
D) consumer forum
E) generic industry

Question 80

Which of the following is the BEST example of a "generic market?"

A) The senior citizen recreation market
B) The designer shoes market
C) The frozen yogurt market
D) The transportation market
E) The Hispanic-American market