Deck 8: Segmenting and Targeting Markets

Question 1

The purpose of market segmentation is to

A)​change consumer attitudes and beliefs toward a product
B)divide a market into submarkets of equal size and equal number of customers​
C)group a large number of markets together, enabling a company to serve them simultaneously
D)enable a marketer to tailor marketing mixes to meet the needs of one or more specific segments​

Answer 1

 D

Question 2

Cannibalization occurs when the sales of an existing product remain the same despite the introduction of a new product.

Answer 2

 False

Question 3

Promotion is one of the components that form a marketing mix.

Answer 3

 True

Question 4

Which of the following statements is true of market segmentation?

A)It helps marketers to design marketing mixes to match the characteristics of one or more segments​
B)It helps marketers to adopt a single market mix to meet the needs of customers in the market
C)It helps marketers to adopt a single market mix to meet the needs of customers in the market​
D)​It helps marketers to focus on satisfying customer needs rather than meeting the organization's objectives.

Question 5

When making a purchase,satisficers consider numerous suppliers,solicit bids,and study all proposals carefully before selecting one.

Question 6

Terra Corp.produces a wide range of furniture,such as cabinets,book cases,and wardrobes.It divides its consumer market into several groups of people who have similar interests in wooden furniture.In this case,dividing its consumer market:

A)enables Terra Corp. to meet the markets' need with a single marketing mix. ​
B)enables Terra Corp. to define customer needs and wants precisely
C)eliminates the need for defining marketing objectives​
D)​eliminates the need for defining marketing objectives

Question 7

A market segment is a subgroup of people or organizations having different characteristics that cause them to have distinct product needs.

Question 8

The distinctions between products created through product differentiation can be either real or perceived.

Question 9

Which of the following is a criterion for successful market segmentation?

A)​The market segment must comprise people with different product needs
B)The market segment must comprise people of different characteristics
C)The market segment must be large enough to warrant developing and maintaining a special marketing mix.​
D)​The market segment must be divided according to the North American Industry Classification System

Question 10

Single-variable segmentation is clearly more precise than multiple-variable segmentation

Question 11

Dynamic segmentation approaches adjust to fit the changes that occur in customers' lives.

Question 12

A market is people or organizations with needs or wants and with the ability and the willingness to buy.

Question 13

Which of the following is a similarity between a stock market and a labor market?

A)Both adopt a barter system to facilitate the exchange of products​
B)Both are composed of people who are unwilling to spend large sums of money for products or services.​
C)Both are composed of people with specific wants that can be satisfied by particular product categories
D)​Both deal in selling high-end, expensive products

Question 14

_____ refers to segmenting markets by region of a country or the world,market size,market density,or climate.

A)​Geographic segmentation
B)Benefit segmentation
C)Demographic segmentation​
D)​Usage-rate segmentation

Question 15

With the personal and targeted nature of customer relationship management,consumers spend more time making purchase decisions.

Question 16

The final step in market segmentation is selecting segmentation descriptors

Question 17

A firm's marketing mix is intended to bring about a mutually satisfying exchange relationship with a market.

Question 18

For a successful market segmentation,one marketing mix cannot be used for another market segment.

Question 19

Market segmentation helps decision makers to more accurately define marketing objectives and better allocate resources.

Question 20

Nalpas Inc.,an apparel company,manufactures clothes for men,women,and children.It further divides its core customers on the basis of demographic variables such as income,ethnic background,and family life cycle.These divisions are known as _____.

A)​positioning bases
B)market segments
C)perceptual maps
D)market positions​

Question 21

Which of the following targeting strategies results in cannibalization of products?

A)​A multisegment targeting strategy
B)The universal targeting strategy
C)An undifferentiated targeting strategy
D)​A concentrated targeting strategy

Question 22

In the context of customer relationship management trends,which of the following statements is true of personalization?

A)​It uses mass-media approaches to meet the expectations of customers
B)It increases the time taken by customers to make purchase decisions
C)It involves rewarding customers for their business to a firm​
D)It treats customers as individuals who have their own unique sets of needs and wants​

Question 23

A firm using a(n)_____ essentially adopts a mass-market philosophy,viewing the market as one big market with no individual segments

A)​undifferentiated targeting strategy
B)niche targeting strategy
C)individual targeting strategy
D)​concentrated targeting strategy

Question 24

Starlight Jewelry sends Lauren a birthday greeting card along with a pendant as a token of appreciation for shopping frequently at its store.The trend portrayed in this customer relationship management technique is _____.

A)​loyalty
B)technology
C)time savings
D)​ time savings

Question 25

Wesley Electronics Inc.is a company that manufactures electronic gadgets.The marketing managers of the company spend a great deal of money on advertising in order to create awareness of the company's products among potential customers.They employ various methods of advertising,such as print,broadcast,and online advertising.According to the steps of market segmentation,Wesley Electronics Inc.is most likely: 

A)​selecting a market or product category for study
B)designing and implementing marketing mixes
C)profiling and analyzing market segments
D)​selecting segmentation descriptors for a market

Question 26

In the context of purchasing profiles,_____ are business customers who consider numerous suppliers,solicit bids,and study all proposals carefully before selecting one.

A)laggards​
B)innovators
C)optimize
D)​satisficers

Question 27

The editorial board of Gamers' Page,a magazine that primarily caters to people who are enthusiastic about sports and gaming,targets people who enjoy games.This type of market segmentation used by the editorial board of Gamers' Page is an example of _____.

A)​usage-rate segmentation
B)geographic segmentation
C)psychographic segmentation
D)​benefit segmentation

Question 28

In the context of a buying process,which of the following statements is true of satisficers

A)​They select the best supplier who satisfies their product and delivery requirements
B)They study numerous proposals carefully before selecting one.
C)They contact familiar suppliers and place orders with the first one that fulfills their requirements​
D)​They contact new and unfamiliar suppliers when they need to purchase a product

Question 29

Companies that successfully implement customer relationship management tend to

A)​maximize the role of distributors in marketing
B)customize the goods and services offered to their customers
C)assume that customers have similar needs that can be met with a common marketing mix.
D)​minimize the use of database technology

Question 30

Which of the following is a reason why consumer goods companies take a regional approach to marketing?

A)​Companies have the opportunity to take more time to react to competition
B)Consumer markets lack intense competition
C)Baby boomers and seniors can be easily attracted using this approach
D)​Baby boomers and seniors can be easily attracted using this approach

Question 31

In order to attract customers who are blue-collar workers,Prisly Inc.,a laundry detergent manufacturer,introduced a liquid detergent that easily removes tough stains.Soon after,the management noticed that there was a significant drop in the sales of its detergent powder as the company's loyal customers,who previously purchased the detergent powder,started purchasing the more effective liquid detergent.As a result,Prisly Inc.was forced to reduce production of its detergent powder.In this scenario,it is evident that Prisly Inc.has adopted a(n)_____.

A)​multisegment targeting strategy
B)multisegment targeting strategy
C)undifferentiated targeting strateg​
D)​concentrated targeting strategy

Question 32

Tennot Designs Inc.manufactures and sells clothes and shoes.Which of the following strategies will the company most likely employ if idecides to adopt a concentrated targeting strategy?

A)​It will manufacture and sell clothes for men, women, and children.
B)It will manufacture and sell unisex clothes
C)It will focus on satisfying the clothing needs of people who are extremely tall
D)​It will focus on customizing clothes according to each customer's preference

Question 33

Which of the following statements is true of a concentrated targeting strategy?

A)​It allows a firm to serve two or more well-defined market segments simultaneously
B)It is often adopted by small firms to compete effectively with much larger firms
C)It follows a mass-market philosophy by viewing the market as one big market without any individual segments.
D)​It often results in cannibalization, which occurs when sales of a new product cuts into sales of an existing product.

Question 34

Laelle Chocolates Inc.is a confectionery company that manufactures candies.It does not use specific strategies to target children while marketing its products.Instead,it uses the same strategies to promote its candies among all consumers in the market.This is an example of a(n)_____.

A)​multisegment targeting strategy
B)individual targeting strategy​
C)undifferentiated targeting strategy
D)​concentrated targeting strategy

Question 35

A concentrated targeting strategy differs from an undifferentiated targeting strategy in that a concentrated targeting strategy:

A)​results in cannibalization of products
B)involves selecting a market niche for targeting its marketing efforts
C)views the market as one big market with no individual segments
D)​uses a common marketing mix for the entire market

Question 36

In the context of strategies for selecting target markets,which of the following is a disadvantage of an undifferentiated targeting strategy?

A)​It is difficult to tailor marketing mixes to the preferences of individual market segments
B)It often results in sterile, unimaginative product offerings that have little appeal to anyone
C)It results in cannibalization of products
D)​It increases production and marketing costs of a firm

Question 37

The customer relationship management technique that focuses on thanking customers for their business to a company exemplifies the trend of _____.

A)​time savings
B)personalization
C)technology
D)​loyalty

Question 38

Which of the following is an advantage of a multisegment targeting strategy

A)​It significantly reduces the risk of product cannibalization
B)It provides economies of scale in manufacturing and marketing
C)It helps in satisfying the needs of a niche market
D)​It decreases the costs involved in product design, marketing research, and management

Question 39

Kirksand Airlines is well-known for providing excellent service and personalized attention to its flyers.The staff listen carefully to the flyers' wants and needs.If a flyer had any specific requests,the staff member would see to it that the flyer's needs are immediately attended to.In this scenario,on which of the following trends has Kirksand Airlines based its customer relationship management?

A)Personalization​
B)Time savings
C)Loyalty
D)​Technology

Question 40

A firm that adopts an undifferentiated targeting strategy assumes that

A)​A firm that adopts an undifferentiated targeting strategy assumes that
B)it can compete effectively with large firms
C)concentration of all of the firm's resources in a single market will result in cannibalization
D)​individual customers have similar needs that can be met with a common marketing mix.

Question 41

Describe the product differentiation strategy used by marketers to distinguish their products from competitors.

Question 42

_____ is a means of displaying or graphing,in two or more dimensions,the location of products,brands,or groups of products in customers' minds.

A)​Market segmentation
B)Product differentiation
C)Perceptual mapping
D)​Product tracing

Question 43

Explain the steps followed in segmenting a market

Question 44

Discuss the reasons why consumer goods companies adopt geographic segmentation as their approach to market segmentation.

Question 45

Volten Inc.is an apparel store.It has separate sections for casual wear,office wear,and party wear.It also has goods of different price ranges to suit people of various income levels.In this way,it caters to different sections of the society.,Volten Inc.is demonstrating positioning by _____.

A)​product class
B)product user
C)competitor​
D)​product user

Question 46

How do marketers use customer relationship management (CRM)as a targeting tool?

Question 47

Discuss the ways in which market segmentation can be useful to marketers.

Question 48

In the context of customer relationship management,_____ offers marketers a more cost-effective way to reach customers and enables businesses to personalize their messages.

A)​repositioning
B)undifferentiated targeting
C)loyalty
D)​new technology

Question 49

Mass-marketing efforts are used by marketers because

A)consumers have their own unique sets of needs and wants
B)the time consumers spend on making purchase decisions has increased in recent times
C)of the need to create brand awareness or to remind consumers of a product
D)​the importance of rewarding individual consumers for their loyalty has declined in the recent years

Question 50

ModerateWhich of the following statements is true of a product positioning strategy?

A)​It assumes that consumers do not compare products on the basis of their features
B)It varies according to the geographic location of a market
C)The quality of competing offerings does not influence product positioning
D)​The quality of competing offerings does not influence product positioning