Question 1

Clorox targets individuals who buy lots of cleaning products (heavy users).Some of these users are mainly interested in cleaning bathrooms,while others are more concerned with kitchen cleanliness.Clorox doesn't approach these two groups differently but addresses both types of people as heavy users.This is an example of how companies use benefit segmentation.

Accepted Answer

Benefit segmentation involves dividing a market based on the specific benefits consumers seek from a product. Clorox treating all heavy users the same, regardless of their specific cleaning focus, does not utilize benefit segmentation.

Question 2

The Hispanic-American market has limited buying power.

Accepted Answer

The Hispanic-American market actually has a significant buying power, estimated to be over $1.5 trillion in 2020 according to Nielsen data. This reflects a growing trend of Hispanic-American consumers being a key target for businesses looking to grow their customer base.

Question 3

Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife Gets Home.It is an advice book for new fathers.An appropriate market segment for this book could be family life cycle.

Accepted Answer

The book, "Keeping the Baby Alive Till Your Wife Gets Home" by Robert Ruark provides advice for new fathers, which is a relevant topic for the family life cycle market segment.

Question 4

Faze magazine is a magazine targeted to Canadian teenagers.Its publisher most likely uses geodemographic variables for segmentation.

Accepted Answer

The answer of Faze magazine is a magazine targeted to...

Question 5

Elefanten is a manufacturer of high-priced designer shoes for children up to the age of twelve.Its target market is parents with annual incomes greater than $75,000.Elefanten uses demographic segmentation variables.

Accepted Answer

The statement mentions the use of demographic segmentation variables, specifically targeting parents with a certain annual income. This aligns with the definition of demographic segmentation, which involves dividing a market based on various demographic characteristics such as age, income, education, etc.

Question 6

AkPharm,Inc.has developed Cat-Sip,a lactose-free milk designed to be digestible by cats.The market for this product is cats.

Accepted Answer

The answer of AkPharm,Inc.has developed Cat-Sip,a lactose-free milk designed to...

Question 7

An HGTV television show called Designing for the Sexes obviously relies on psychographic segmentation.

Accepted Answer

The answer of An HGTV television show called Designing for...

Question 8

Reader's Digest magazine sent millions of subscribers with different medical conditions,such as high blood pressure or high cholesterol,a booklet filled with articles and prescription-drug ads,all about the very condition each person has.Reader's Digest's segmentation plan used benefit segmentation variables.

Accepted Answer

Benefit segmentation is based on identifying the specific benefits that different groups of consumers are seeking from a product or service, and subsequent marketing efforts are targeted towards meeting those specific needs. In this case, Reader's Digest segmented their subscribers based on their medical conditions, and provided them with information and ads that are relevant and useful to their specific needs.

Question 9

Sav-On Stores,which operates a number of Piggly Wiggly grocery stores,learned that 25 percent of its shopping base is responsible for a substantial majority of its revenue.This is the general idea posited by the 80/20 principle.

Accepted Answer

The statement accurately reflects the concept of the 80/20 principle, which suggests that 80 percent of a company's revenue comes from 20 percent of its customers. In this case, the percentage is slightly different, but the overall idea is the same.

Question 10

Geography,psychographics,and benefits sought are examples of possible segmentation variables used by marketers.

Accepted Answer

Geography, psychographics, and benefits sought are all commonly used segmentation variables in marketing.

Question 11

U.S.paint manufacturers traditionally use different formulae for developing paint to be used in the humid Southeast,the frigid Midwest,and the hot and dry Southwest.This is an example of how demographic segmentation is used.

Accepted Answer

Regional marketing is an example of using geographic segmentation variables.

Question 12

When Schlitz beer advertised its product with the slogan "You only go around once in life,so you might as well reach for the gusto," it was relying on demographic segmentation.

Accepted Answer

The slogan appeals to lifestyle and values, which is more aligned with psychographic segmentation rather than demographic segmentation.

Question 13

A segmentation plan must produce segments that exhibit responsiveness.In other words,if all customers are equally concerned about protecting the environment,there is no need to offer regular and all-natural versions to the segment.

Accepted Answer

A segmentation plan should create distinct groups that respond differently to marketing strategies. If all customers have the same concern, segmentation based on that concern is unnecessary.

Question 14

A market segment is deemed to have substantiality if it contains a large numbers of potential customers.

Accepted Answer

A market segment is deemed to have substantiality if it is large enough or profitable enough to warrant targeted marketing efforts, not just based on the number of potential customers.

Question 15

The business market consists of four broad segments.They are producers,resellers,governments,and regions.

Accepted Answer

The four broad segments of the business market are producers, resellers, governments, and institutions, not regions.

Question 16

Reality-based television shows are targeted to people who like to believe that they could become a part of such a show and find their way to fame and fortune.This is an example of psychographic segmentation.

Accepted Answer

Psychographic segmentation involves dividing a market based on personality traits, values, interests, and attitudes. Reality-based television shows target individuals who have a particular interest in achieving fame and fortune, which is a psychographic characteristic.

Question 17

Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife Gets Home.It is an advice book for new fathers.This is an example of the use of demographic segmentation variables.

Accepted Answer

The book's title and subject matter suggest that the target audience is new fathers, indicating the use of demographic segmentation variables such as gender and life stage.

Question 18

One reason marketers use market segmentation as a tool is that once completed,the process need not be repeated.

Accepted Answer

Market segmentation is not a one-time process. Markets continually evolve, and so do consumer preferences and behaviours. Regular reviews and updates are essential to ensure that the segmentation remains relevant and useful.

Question 19

Segmentation by customer relationship occurs when business marketers segment their markets by income,occupation,and educational variables.

Accepted Answer

Segmentation by customer relationship refers to dividing customers based on the nature of their relationship with the company (e.g. current customers, ex-customers, potential customers) and tailoring marketing efforts accordingly. Income, occupation, and educational variables are examples of demographic segmentation.

Question 20

Allyson has a small business that creates personalized gift baskets and is now in the process of identifying groups of buyers that have relatively similar product needs.She is engaged in the process of market segmentation.

Accepted Answer

Market segmentation involves dividing the market into smaller groups of consumers with similar needs and characteristics so that businesses can create products and marketing strategies that are tailored to those specific groups. This is exactly what Allyson is doing by identifying groups of buyers with similar product needs.

Quiz 7: Segmenting and Targeting Markets