Deck 6: Market Segmentation Positioning and the Value Proposition

Question 1

Positioning means to cut your market into pieces and focus on the piece or pieces that make the most sense.

Answer 1

False

Question 2

Spending advertising dollars to get "switchers" to buy your brand may seem like a good idea, but it often results in
only one-time or random purchases.

Answer 2

True

Question 3

When a brand team defines the target market of consumers for their product, they may also identify many smaller subsets of consumers within their broad market.

Answer 3

True

Question 4

Today, advertising tends to be used almost exclusively by businesses targeting consumer markets, and only in very rare circumstances by businesses trying to sell products to other businesses.

Question 5

The positioning model from Anne Bahr constitutes the overlapping of the proposition for the brand and persuasion tools.

Question 6

A gourmet ice cream franchise advertises itself as offering thick, creamy, gooey treats, calling them delectable, desirous, and decadent-the richest and sweetest desserts found anywhere in America.The owner of the local shop buys ads focusing on extended hours and friendly service.This is an example of internal consistency.

Question 7

Demographic segmentation is used in selecting target segments by focusing on consumers' descriptors such as their
values, beliefs, philosophies, and opinions.

Question 8

LivTo Inc.is a company that manufactures cosmetic products for women.It claims to have the best customer care services and is prompt to address the grievances of its customers.To be internally consistent, the company should invest in a better Research and Development department and also create a new image for its products.

Question 9

One drawback of niche marketing is that a company often has to reduce the price of its product due to the smaller volume of sales it can expect.

Question 10

Bayt Café is launching a new advertising campaign portraying its restaurant as having very fast service and a cheerful staff to target a younger crowd.The campaign alone will be enough to gain the loyalty of the younger segment.

Question 11

Any meaningful positioning strategy needs to include several broad elements in its message-including attention­
getting, variety, flexibility, and complexity.

Question 12

When formulating a positioning strategy, a multiple-benefits approach is strongly suggested to satisfy many markets
at the same time, because it alerts consumers to a wide array of diverse functions and positive consequences related to the product.

Question 13

If General Mills decides to use the STP framework, it can divide its resources to reach a number of separate and distinct market segments.

Question 14

Companies can do well by spending advertising dollars to target nonusers over other user groups, since they offer the highest level of opportunity.

Question 15

STP marketing includes three factors-identifying, positioning, and informing.

Question 16

Psychographic segmentation focuses on the inner mindset of consumers rather than outer aspects of their lives such as activities, interests, and lifestyles.

Question 17

If an advertiser sees a large potential segment being served by a competitor with a big budget, it might consider identifying and targeting smaller groups within that large segment.

Question 18

In the world of advertising, markets are positioned, but products are segmented.

Question 19

Demographics are rarely used to describe or profile target segments that have already been identified as prospects by other variables.

Question 20

Haley Inc.is a company that manufactures products for babies and toddlers.It's advertising campaigns have carried various slogans over the years, but they have all revolved around the same thematic core.This is an example of consistent positioning approach.

Question 21

The Folgers team aligned its marketing mix in a design that would represent a particular identity, showcasing certain themes and values, shaped to gain distinctive approval from the just-graduated-20-somethings.This demonstrates the process of

A)switching.
B)commoditization.
C)segmenting.
D)singularization.

Question 22

The Folgers brand team looked at the diverse market of all coffee drinkers, then broke it down by age.When the team chose to focus on just-graduated-20-somethings, it was

A)benefit positioning.
B)positioning.
C)targeting.
D)segmenting.

Question 23

Characteristics and traits such as age, gender, race, marital status, income, education, and occupation are widely used in segmentation.

A)geographic
B)psychographic
C)competitive
D)demographic

Question 24

Ultima Inc., a manufacturer of high-end cell phones and laptops, has designed a campaign that specifically targets a group of emergent consumers and aims to persuade them to try its products.This campaign is an example of:

A)ambush marketing.
B)guerilla marketing.
C)heavy-user-focused marketing.
D)point-of-entry marketing.

Question 25

In STP marketing, the term refers to an attempt to give a brand a certain meaning relative to its competitors.

A)segmentation
B)redistribution
C)positioning
D)targeting

Question 26

What is a downside to adopting a heavy-user-focused segmentation plan?

A)Heavy users usually form less than one percent of users by volume.
B)Heavy users may differ significantly from average or infrequent users in terms of their motivations to consume, their approach to the brand, or their image of the brand.
C)Heavy users are a costly target segment and much can be spent in getting their business merely to have it disappear just as quickly as it was won.
D)Heavy users have little knowledge of the brand and negligible social influence.

Question 27

The process of cutting a market into pieces and focusing on the piece or pieces that make the most sense is termed

A)segmentation
B)integration
C)rationalization
D)differentiation

Question 28

When ad agency professionals are creating a campaign for a huge global retail firm with complex value propositions,
in all likelihood, no single ad can be expected to reflect all aspects of the brand's value.

Question 29

For most products and services, some users will purchase much more, and more frequently, than others.These consumers are called .

A)lead users
B)switchers
C)emergent consumers
D)variety seekers

Question 30

What is the first step in STP marketing?

A)market segmentation
B)position strategy
C)benefit positioning
D)target marketing

Question 31

The consumers termed turn out to be a costly target segment; much can be spent in getting their business
Merely to have it disappear just as quickly as it was won.

A)brand freaks
B)lead users
C)switchers
D)heavy users

Question 32

What does the acronym STP mean?

A)Sales, Target, Product
B)Sell To People
C)Segmenting, Targeting, Positioning
D)Sell The Product

Question 33

The strategic planning triangle suggested by Thorson and Moore features as its three main aspects the campaign's
segments, its value proposition, and its persuasion tools.

Question 34

Which segment specifically offers marketers an important opportunity to build future business by luring first-time buyers?

A)switchers
B)brand-freaks
C)lead users
D)emergent consumers

Question 35

What does T stand for in the term STP marketing?

A)Tangible
B)Technology
C)Target
D)Territory

Question 36

A brand's value proposition is a statement of the benefits of the brand that provide value to its target consumers and
includes functional, emotional, and self-expressive benefits.

Question 37

are consumers who are so committed to a brand that their consumer behavior toward it borders on the pathological.

A)Emergent consumers
B)Variety seekers
C)Switchers
D)Brand-freaks

Question 38

The one key characteristic that all types of share is that their brand preferences are still under development.

A)variety seekers
B)brand-freaks
C)heavy users
D)emergent consumers

Question 39

The basic premise of a positioning strategy must be simple and distinctive if it is to be communicated effectively to the target segment.

Question 40

As a segment, variety seekers tend to

A)be extremely committed to a brand.
B)buy brands based on sales, discount coupons, or other incentives.
C)need little encouragement to continue purchasing a brand.
D)be unusually enthusiastic and often excessive in their purchasing activities.

Question 41

A potential downside of a heavy-user-focused segmentation plan is that:

A)it can take resources away from those that require persuasion.
B)heavy users usually require constant encouragement to keep consuming a product.
C)heavy users do not differ significantly from infrequent users in terms of their motivations to consume.
D)it shifts focus to emergent consumers who need to be convinced to purchase the product.

Question 42

Climate, topography, community size, and national region have been found to make dramatic differences in consumption, including habits involving eating and food preparation, entertainment, and recreation.This is the basis of segmentation.

A)psychographic
B)commitment-level-based
C)geographic
D)demographic

Question 43

Which firm did the text highlight as one with a long­term, successful campaign that epitomizes "simplicity" in defining its distinctiveness, a critical ingredient in a good positioning strategy?

A)Exedrin
B)Jack Daniels
C)Nike
D)Tylenol

Question 44

Why are systems such as PRIZM used widely by advertisers for segmentation?

A)because they provide deep segment description
B)because they allow for segmentation on the basis of frequency of usage
C)because they provide deep insights into consumers' motivations
D)because they emphasize the understanding of consumers' activities, interests, and opinions

Question 45

A major criterion to consider during segment selection is the segment's business.

A)ad clutter
B)business market
C)competitive field
D)target market
, or the companies that are vying for that

Question 46

Perhaps the most fundamental criterion in segment selection revolves around what the members of the segment want versus:

A)how much they are willing to pay for it.
B)whether the segment is currently growing.
C)how much they are willing to settle for.
D)the organization's ability to provide it.

Question 47

Which system has identified 62 market segments based on zip codes and the personal characteristics of their residents, creating a well-known tool for geodemographic segmentation?

A)Thorson and Moore's model
B)PRIZM
C)SIC Codes
D)VALS

Question 48

Thorson and Moore place as the paramount apex in their model.

A)specification of the brand's value proposition
B)identification and specification of the target segment
C)identification of the various persuasion tools that may be deployed as part of the campaigns
D)specification of niche segments within larger segments

Question 49

One big plus from a product position that stays consistent over time, like State Farm's "Good Neighbor" campaign, is that it

A)is more likely to break through advertising clutter.
B)successfully reaches nonusers.
C)doesn't need to target a particular segment.
D)is easily repositioned.

Question 50

Which of the following is true about the demographic group known as "woopies"?

A)They are identified as free spirits in their 20s and 30s who have yet to commit to long-term careers, relationships, lifestyles, or even geographic locations.
B)They represent the youngest demographic segment in the U.S.
C)They are identified as consumers over 50 years of age.
D)They consist of pre-teens and early adolescents, who will have great buying power within a few years.

Question 51

In Mobil's positioning as the "Friendly Serve" station, it had many good reasons to select the particular target market that it did.But one issue that was NOT a factor was that the segment

A)spent the largest amount of money at service stations.
B)had the greatest number of consumers in sheer numbers.
C)had potential for growth.
D)bought extras besides just gas.

Question 52

A firm hires an agency to persuade hairdressers, spas, and hair salons to purchase its line of hair care products, grooming equipment, and professional tools.In this case, the agency is specifically involved in:

A)psychographic research.
B)business-to-business marketing.
C)the competitive field
D)lifestyle segmentation.

Question 53

Which company was highlighted in the text because it interviewed 3,000 consumers and created five distinct segments that it could then target in different ways, customizing lifestyle segmentation with a particular focus?

A)Estée Lauder
B)Folgers
C)Mobil
D)Pillsbury

Question 54

The model shows that a brand's best opportunity for success involves the overlapping of four important
Factors: current relevance to the consumer, credibility or consumer belief in the brand, differentiation or a recognition
Of uniqueness, and "stretch" or the potential for consumer relevance over time.

A)SWOT analysis
B)PEST analysis
C)Symantec brand opportunity
D)Porter's four corners

Question 55

is a term that advertisers created in the mid-1960s to refer to a form of research that emphasizes the
Understanding of consumers' activities, interests, and opinions.

A)Demographics
B)Geodemographics
C)Psychographics
D)Micrographics

Question 56

A fast-food restaurant is attempting to position itself as the best choice when you're in a hurry because it serves all customers within 90 seconds.To maintain internal consistency, the firm might take all of the following steps below, EXCEPT for which one?

A)expanding on its menu
B)adding extra drive-up windows
C)hiring more order-takers
D)hanging up digital timers behind the counter

Question 57

In recent years skillful marketers have merged information on where people live with the U.S.Census Bureau's demographic data to produce a form of market segmentation known as segmentation.

A)demographic
B)micrographic
C)reprographic
D)geodemographic

Question 58

As highlighted in the text, "Careful Cooks," "Down­Home Stokers," and "Functional Feeders" are all segments identified by Pillsbury based on segmentation.

A)geopsychographic
B)niche
C)repositioned
D)lifestyle

Question 59

What is a market niche?

A)A small group of consumers with unique needs and who typically are willing to pay a premium to have those needs met
B)A large group of heavy users who are loyal to a brand because it provides value at a relatively low price
C)A market segment that is served by many firms and is characterized by high levels of competition
D)A market segment that is characterized by high sales volumes and low prices

Question 60

Which of the following forms the final apex of the strategic planning triangle proposed by Esther Thorson and Jeri Moore?

A)selection of a mix of persuasion tools
B)identification of the target segment
C)specification of the brand's value proposition
D)division of a market into segments

Question 61

What is a positioning strategy? Explain the the Bahr-InterBrand positioning opportunity method.

Question 62

Describe the concept known as niche marketing.What are the competitive advantages of marketing to a niche?

Question 63

What is a value proposition? Explain why it is useful-even critical-to an organization, to its brand, to its team, and
to its target audience.

Question 64

The American Pork Producers has been running a long-term campaign with the tagline "Pork.The other white meat." This is an example of

A)lifestyle segmentation.
B)demographic segmentation.
C)benefit positioning.
D)competitive positioning.

Question 65

What is the difference between a consumer market and a business market? Give an example of each.Then describe how business markets are segmented, and use your example to explain your answer.

Question 66

Think about a product that you have used in the past week.Using this as an example, explain the differences between segmenting, targeting, and positioning in the STP approach to marketing.

Question 67

Which of the following is true of segment selection?

A)The number of heavy users in a segment is usually very large.
B)It is enough to assess the size of a segment to select it as a company's target segment.
C)Growth potentials for all segments are generally very low.
D)Marketers are inclined to devote resources to segments projected for dramatic growth.

Question 68

Veda Inc., a manufacturer of cosmetics, offers two product lines, each catering to a distinct segment.Its most popular brand, Alo, targets women who want makeup that will last at least ten hours after application.With its brand Amo the company targets a niche market of women who are looking for makeup with anti-ageing properties.What type of segmentation is Veda Inc.using?

A)Benefit segmentation
B)Heavy-user-focused segmentation
C)Lifestyle segmentation
D)Geographic segmentation

Question 69

Brownsworth Brothers Coffee is a mail-order business run by two brothers directly from their Hawaiian plantation.
They have targeted heavy users in the past, but they're considering a new focus on college students.They are considering switching target segments even though this group is comprised largely of people who don't drink coffee, or have just started to drink coffee and don't consume anywhere near as much as the heavy users.What are the disadvantages of the heavy-user strategy? What term is used to describe the college students the company is considering targeting? What are the advantages of targeting this new segment?

Question 70

The use of psychographics to focus on differences in consumers' activities, interests, and opinions usually results in segmentation.

A)heavy-user-focused
B)benefit
C)geographic
D)lifestyle

Question 71

A brand's is a statement of the functional, emotional, and/or self­expressive benefits delivered by the brand.

A)universal product code
B)memorandum of understanding
C)value proposition
D)warranty

Question 72

A powerful value proposition in most situations today includes functional, emotional, and self-expressive benefits,

A)though only tangible product benefits are truly emphasized.
B)though no single ad can reflect all three aspects.
C)all of which must be included in a given advertising campaign.
D)though children are excluded because their decision making is controlled by parents.

Question 73

The second important apex in Thorson and Moore's strategic planning triangle entails:

A)identification and specification of the target segment.
B)identification of the various persuasion tools that may be deployed as part of a campaign.
C)specification of the brand's value proposition.
D)specification of niche markets within a large segment

Question 74

What are the three fundamental options that advertisers have when choosing a positioning theme?

A)demographic, psychographic, or geographic
B)benefit, user, or competitive
C)STP, VALS, or SIC
D)functional, emotional, or psychological

Question 75

A is a core idea that frames an ambition or aspiration for a brand that will be relevant to target audiences
Over time.

A)brand extension
B)brand orientation
C)brand initial
D)brand platform