Question 1

When expenses are greater than the potential increased sales from market segmentation,a firm should
A)not consider market segmentation at this time.
B)combine departments within the company to make the process more streamlined.
C)reduce production costs or increase prices to facilitate the segmentation process.
D)seek alternate channels of distribution,including Internet sales.
E)discontinue manufacturing any products that are not in the mature stage of their product life cycle.

Accepted Answer

If the expenses associated with market segmentation outweigh the potential benefits, it makes more financial sense to not pursue market segmentation at this time. A company should always weigh the costs and benefits of any business decision, and if the costs outweigh the potential benefits, the decision should be to not proceed.

Question 2

One marketing action that can be taken to sell a single product or service to multiple market segments is to
A)develop and produce another version of the product.
B)manufacture products that appeal to different markets.
C)develop separate promotional campaigns.
D)purchase another firm that has additional products that would appeal to multiple markets.
E)issue stock to fund additional research and development for new products.

Accepted Answer

Developing separate promotional campaigns can effectively target multiple market segments with messaging and tactics tailored to each group. This allows for personalized communication with each market segment, resulting in increased relevance and higher conversion rates. It also avoids the need for excessive product development or costly acquisitions, making it a more cost-effective approach.

Question 3

When compared to a multiple products,multiple market segments strategy,a one product,multiple market segment strategy
A)is a much more effective means of meeting consumers' individual needs.
B)creates greater savings in production costs.
C)is a more effective way of meeting organizational objectives.
D)has significantly higher distribution costs.
E)is more profitable since a firm can charge the new segments higher prices without changing the product.

Accepted Answer

A one product, multiple market segment strategy allows the company to focus on producing one product, reducing production costs compared to producing multiple products. By targeting multiple market segments with the same product, the cost of production can be spread across different segments, which translates to significant savings in production costs.

Question 4

The purpose of market segmentation is to respond more effectively to the wants of groups of potential buyers in order to
A)maintain market share.
B)increase sales and profits.
C)assume social responsibility.
D)use the firm's resources most efficiently.
E)provide the best quality products on the market.

Accepted Answer

The purpose of market segmentation is to identify specific groups of potential buyers and develop marketing strategies that are customized to their needs and desires. By doing so, businesses can increase their sales and profits by catering to the unique preferences of different market segments.

Question 5

All of the following are market segmentation strategies EXCEPT:
A)build-to-order.
B)multiple products,multiple market segments.
C)one product,multiple market segments.
D)multiple products,one segment.
E)mass customization.

Accepted Answer

The answer of All of the following are market segmentation...

Question 6

In the United States,the Harry Potter series of books were often at the top of The New York Times fiction bestseller list.These books have been marketed to preteen,teen,and adult readers around the world.Scholastic Press,the publisher of the Harry Potter books in the U.S. ,is using which of the following segmentation strategies?
A)multiple products with one segment
B)one product with one channel of distribution
C)one product with multiple market segments
D)one product with changes based on customer behavior
E)multiple products with multiple segments

Accepted Answer

Scholastic Press is using the strategy of marketing one product (Harry Potter books) to multiple market segments (preteen, teen, and adult readers).

Question 7

The annual Sporting News Baseball Yearbook had exactly the same stories but with 17 different covers to appeal to baseball fans in 17 different regions of the U.S.What is the basis of its market segmentation strategy?
A)psychographic segmentation
B)retail outlet segmentation
C)demographic segmentation
D)behavioral segmentation
E)geographic segmentation

Accepted Answer

The market segmentation strategy is based on geographic segmentation, as it is dividing the market into different regions based on location to appeal to specific baseball fans in those regions.

Question 8

A business firm goes to the trouble and expense of segmenting its markets when
A)it changes its advertising campaign.
B)competitors enter the marketplace.
C)the environment becomes uncertain.
D)it expects that this will increase its sales,profit,and return on investment.
E)there is a recessionary economic environment.

Accepted Answer

A business firm goes to the trouble and expense of segmenting its markets when it expects that this will increase its sales, profit, and return on investment. Segmentation helps the firm to focus its marketing efforts on the particular needs and wants of specific groups of customers, resulting in more effective marketing and higher sales.

Question 9

To create a market-product grid for bed pillows,the most effective way to segment the market would be using
A)the age of the sleeper: less than 18 years of age,18 to 44 years of age,or 45 years and older.
B)the sleeper's annual income: less than $25,000,$25,000 to $49,999,or $50,000 and over.
C)the sleeper's gender: male or female.
D)the time of sleep: day or night.
E)how the sleeper sleeps: side,back,or stomach.

Accepted Answer

Segmenting by how the sleeper sleeps (side, back, or stomach) is the most relevant and effective way to create a market-product grid for bed pillows, as different sleep positions require different types of support and firmness in a pillow. Age, income, and gender may not necessarily correlate with the type of pillow needed, while the time of sleep (day or night) is not necessarily relevant for pillow selection.

Question 10

The greatest benefit to consumers when a firm chooses a one product,multiple market segment strategy is __________.
A)improved service
B)increased number of choices
C)higher product quality and consumer value
D)lower retail prices because of lower marketing costs
E)lower retail prices because of lower production costs

Accepted Answer

When a firm uses a one product, multiple market segment strategy, it can achieve economies of scale in production, leading to lower production costs, which can result in lower retail prices for consumers.

Question 11

Which of the following is a disadvantage of employing a multiple products,multiple market segments strategy if NOT implemented well?
A)higher sales but lower profits
B)reduced quality and higher prices
C)meeting customer needs but at the expense of higher prices
D)lower prices but with higher production costs
E)higher quality but lower prices

Accepted Answer

Implementing a multiple products, multiple market segments strategy without appropriate coordination and differentiation can lead to reduced quality and higher prices, as the company tries to meet the diverse needs of different customer segments.

Question 12

An analysis of the pillow market using a market-product grid suggests that the most important segment to target is
A)side sleepers.
B)sleepers with sleep disorders,such as sleep apnea.
C)sleepers with annual incomes of $50,000 and over.
D)back sleepers.
E)stomach sleepers.

Accepted Answer

The market-product grid suggests that the pillow market should target the most important segment, which is likely to generate the highest profits. Among the given options, side sleepers are the largest and most important segment to target, as they make up the majority of all sleepers. Additionally, side sleepers are more likely to experience discomfort or pain if they are using the wrong type of pillow or if their pillow is of low quality. Therefore, targeting this segment with specialized pillows that cater to their needs can lead to increased profits for pillow manufacturers.

Question 13

The annual Sporting News Baseball Yearbook used 17 different covers featuring a baseball star from each of its regions in the United States.Four covers are shown above.This is an example of a(n)
A)sporting interest-based segmentation.
B)segmenting organizational markets.
C)one product and multiple market segments.
D)multiple products and multiple market segments.
E)segments of one or mass customization.

Accepted Answer

The use of different covers featuring a baseball star from each region in the United States is an example of one product (Sporting News Baseball Yearbook) being segmented into multiple market segments (different regions in the United States). This is known as one product and multiple market segments.

Question 14

Market segmentation helps business firms to respond more effectively to the wants of groups of potential buyers in order to
A)maintain market share.
B)increase sales and profits.
C)assume social responsibility.
D)use the firm's resources most efficiently.
E)provide the best quality products on the market.

Accepted Answer

Market segmentation allows business firms to identify the specific needs and preferences of different groups of potential buyers, and then tailor their marketing strategies and product offerings to better appeal to those groups. As a result, this targeted approach can lead to increased sales and profits, making option B the best choice.

Question 15

When a firm produces only a single product or service and attempts to sell it to two or more market segments,it avoids __________.
A)the extra cost of developing and producing additional versions of the product
B)creating a customer service gap
C)indirect distribution and logistics problems
D)restructuring the firm's strategic planning
E)amortization costs of product enhancements

Accepted Answer

By producing only one version of the product or service to be sold to multiple market segments, the firm can avoid the extra costs of developing and producing additional versions of the product. This can lead to cost savings and efficiency in production.

Question 16

A market-product grid relates the market segments to the products offered or potential marketing actions.With respect to pillows,the most effective way to segment the pillow market would be based on __________.
A)the age of the sleeper: less than 18 years of age;18 to 44 years of age;or 45 years and older
B)the sleeper's annual income: less than $25,000;$25,000 to $49,999;or $50,000 and over
C)the sleeper's gender: male or female
D)whether the sleeper has sleeping problems: yes or no
E)how the sleeper sleeps: side;back;or stomach

Accepted Answer

The most effective way to segment the pillow market would be based on how the sleeper sleeps. This is because different sleep positions require different types of pillows to support the body's natural alignment and prevent pain or discomfort. Therefore, segmenting the market based on side sleepers, back sleepers, and stomach sleepers would be the most effective way to offer targeted products and marketing actions.

Question 17

Consider Figure 9-2 above.My Pillow uses infomercials and product demonstrations at events such as state fairs to market its line of pillows that are guaranteed to be "the most comfortable pillow you'll ever own!" Its market research reveals the size of each sleeper segment,as shown by both the percentages and circles.Which market-product combination should My Pillow target?
A)stomach sleeper-firm pillow
B)back sleeper-medium pillow
C)side sleeper-firm pillow
D)stomach sleeper-soft pillow
E)side sleeper-soft pillow

Accepted Answer

According to the market research, the largest segment of sleepers is the side sleepers, and they prefer firm pillows. Therefore, My Pillow should target the side sleeper-firm pillow combination to maximize their potential customer base.

Question 18

Which of the following statements regarding when and how to segment markets is most accurate?
A)Even if a firm finds only one potential market segment,it should take advantage of the method to appear cutting-edge to its competitors and customers.
B)Market segmentation only works for large corporations;small businesses don't have the resources to engage in the process.
C)Governments should not attempt market segmentation because the strategy is only applicable for consumer and organizational markets.
D)If a business firm goes to the trouble and expense of segmenting its markets,it expects to increase its sales,profits,and return on investment.
E)Market segmentation strategies work less than 10 percent of the time.

Accepted Answer

The purpose of market segmentation is to increase a firm's sales, profits, and return on investment by identifying and targeting specific groups of consumers or organizations with products, services, or advertising. Therefore, if a business firm goes through the effort and expense of segmenting its markets, it should expect to see a positive impact on its financial performance. Option A is incorrect because appearing cutting-edge is not a good reason to engage in market segmentation if there is no real potential for additional sales or profits. Option B is incorrect because small businesses can benefit from market segmentation and may even have an advantage over larger corporations in identifying and serving niche markets. Option C is incorrect because governments can also benefit from market segmentation, such as targeting specific demographics for public health campaigns or tourism promotions. Option E is incorrect because market segmentation has been proven to be a successful strategy for many firms in a wide range of industries.

Question 19

When a firm chooses a one product,multiple market segment strategy,its customers are likely to see __________.
A)improved service
B)increased number of choices
C)higher retail prices because of higher marketing costs
D)higher product quality and consumer value
E)lower retail prices because of lower production costs

Accepted Answer

When a firm uses a one product, multiple market segment strategy, it benefits from economies of scale in production, which can lead to lower production costs and potentially lower retail prices for consumers.

Question 20

Which marketing program strategy does a firm use to sell a single product or service to multiple market segments?
A)developing and producing another version of the product
B)manufacturing different products that appeal to different markets
C)developing separate promotional campaigns for each market
D)acquiring another firm that has additional products that would appeal to multiple markets
E)issuing stock to fund additional research and development for new products

Accepted Answer

Developing separate promotional campaigns for each market allows a firm to effectively sell a single product or service to multiple market segments. By tailoring the promotional message and targeting specific demographics, a firm can create a strong connection with each market segment and maximize the potential for sales. Developing another version of the product or manufacturing different products that appeal to different markets may work, but it is not specifically focused on selling a single product to multiple market segments. Acquiring another firm or issuing stock for R&D are not necessarily relevant to this particular marketing strategy.

Quiz 9: Market Segmentation, Targeting, and Positioning

When expenses are greater than the potential increased sales from market segmentation,a firm should

One marketing action that can be taken to sell a single product or service to multiple market segments is to

When compared to a multiple products,multiple market segments strategy,a one product,multiple market segment strategy

The purpose of market segmentation is to respond more effectively to the wants of groups of potential buyers in order to

All of the following are market segmentation strategies EXCEPT:

The annual Sporting News Baseball Yearbook had exactly the same stories but with 17 different covers to appeal to baseball fans in 17 different regions of the U.S.What is the basis of its market segmentation strategy?

A business firm goes to the trouble and expense of segmenting its markets when

To create a market-product grid for bed pillows,the most effective way to segment the market would be using

The greatest benefit to consumers when a firm chooses a one product,multiple market segment strategy is __________.

Which of the following is a disadvantage of employing a multiple products,multiple market segments strategy if NOT implemented well?

An analysis of the pillow market using a market-product grid suggests that the most important segment to target is

The annual Sporting News Baseball Yearbook used 17 different covers featuring a baseball star from each of its regions in the United States.Four covers are shown above.This is an example of a(n)

Market segmentation helps business firms to respond more effectively to the wants of groups of potential buyers in order to

When a firm produces only a single product or service and attempts to sell it to two or more market segments,it avoids __________.

A market-product grid relates the market segments to the products offered or potential marketing actions.With respect to pillows,the most effective way to segment the pillow market would be based on __________.

Which of the following statements regarding when and how to segment markets is most accurate?

When a firm chooses a one product,multiple market segment strategy,its customers are likely to see __________.

Which marketing program strategy does a firm use to sell a single product or service to multiple market segments?