Deck 2: The Role of IMC in the Marketing Process

Question 1

Marketers often go after the entire market with one product, brand, or service offering to create the maximum impact.
Marketers rarely go after the entire market with one product, brand, or service offering. Rather, they pursue a number of different strategies, breaking the market into segments and targeting one or more of these segments for marketing and promotional efforts.

Answer 1

False

Question 2

Brand equity refers to the tangible assets earned through a product's functional purpose.
Brand equity can be thought of as an intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and/or the strength of consumer attachment to a company name, brand name, or trademark.

Answer 2

False

Question 3

Differentiated marketing is used when the firm selects one segment and attempts to capture a large share of this market.
Differentiated marketing involves marketing in a number of segments, developing separate marketing strategies for each. Concentrated marketing is used when the firm selects one segment and attempts to capture a large share of this market.

Answer 3

False

Question 4

Trade advertising focuses on sales promotion efforts directed toward the ultimate consumer.
Trade advertising focuses on wholesalers and retailers and motivates them to purchase products for resale to their customers. An alternative strategy is a promotional pull strategy, which spends money on advertising and sales promotion efforts directed toward the ultimate consumer.

Question 5

While positioning by product class, marketers only position against brands, and not against other product categories.
Often the competition for a product comes from outside the product class. Rather than positioning against another brand, an alternative strategy is to position oneself against another product category.

Question 6

Premium brands positioned at the high end of the market usually use the price/quality approach to positioning.
Marketers often use price/quality characteristics to position their brands. One way they do this is with ads that reflect the image of a high-quality brand where cost, while not irrelevant, is considered secondary to the quality benefits derived from using the brand. Premium brands positioned at the high end of the market use this approach to positioning.

Question 7

The consumer approach positions a product by comparing it and the benefit it offers against those offered by competitors.
The consumer approach links the product with the benefits the consumer will derive or creates a favorable brand image. The competition approach positions the product by comparing it and the benefit it offers versus the competition.

Question 8

Repositioning of a product usually occurs because of declining or stagnant sales.
Repositioning a product usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions. Repositioning is often difficult to accomplish because of entrenched perceptions about and attitudes toward the product or brand.

Question 9

In the geographic segmentation approach, markets are divided into units based on consumers' occupations and lifestyles.
In the geographic segmentation approach, markets are divided into different geographic units. These units may include nations, states, counties, or even neighborhoods. Consumers often have different buying habits depending on where they reside.

Question 10

Target market identification isolates consumers with similar lifestyles, needs, and the like, and increases the knowledge of their specific requirements.
Target market identification isolates consumers with similar lifestyles, needs, and the like, and increases our knowledge of their specific requirements. The more marketers can establish this common ground with consumers, the more effective they will be in addressing these requirements in their communications programs.

Question 11

In the psychographic approach to segmentation, determination of lifestyles is usually based on an analysis of the activities, interests, and opinions (AIOs) of consumers.
Dividing the market on the basis of personality, lifecycles, and/or lifestyles is referred to as psychographic segmentation. The determination of lifestyles is usually based on an analysis of the activities, interests, and opinions (AIOs) of consumers. These lifestyles are then correlated with the consumers' product, brand, and/or media usage.

Question 12

Dominating channels of distribution is one way of creating a competitive advantage.
Ways to achieve a competitive advantage include having quality products that command a premium price, providing superior customer service, having the lowest production costs and lower prices, or dominating channels of distribution. Competitive advantage can also be achieved through advertising that creates and maintains product differentiation and brand equity.

Question 13

The more marketers segment the market, the less precise is their understanding of it.
The more marketers segment the market, the more precise is their understanding of it. Market segmentation is dividing a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action.

Question 14

Segmenting the market based on consumers' product or brand usage and the degree of use is an example of behavioristic segmentation.
Dividing consumers into groups according to their usage, loyalties, or buying responses to a product is behavioristic segmentation. For example, product or brand usage, degree of use (heavy vs. light), and/or brand loyalty are combined with demographic and/or psychographic criteria to develop profiles of market segments.

Question 15

A market can rarely be viewed as one large, homogeneous group of customers; rather, it consists of many heterogeneous groups, or segments.
A market can rarely be viewed as one large homogeneous group of customers; rather, it consists of many heterogeneous groups, or segments. In recent years, many companies have recognized the importance of tailoring their marketing to meet the needs and demand trends of different market segments.

Question 16

Market opportunities are areas where the company believes that customer needs and opportunities are being satisfied.
Market opportunities are areas where there are favorable demand trends, where the company believes customer needs and opportunities not being satisfied, and where it can compete effectively.

Question 17

Strong symbolic features and social and psychological meaning may be more important than functional utility for many products.
For many products, strong symbolic features and social and psychological meaning may be more important than functional utility. For example, designer clothing such as Versace, Gucci, and Prada is often purchased on the basis of its symbolic meaning and image, particularly by teenagers and young adults.

Question 18

In a typical target marketing process, the stage of segmenting the market is immediately followed by positioning one's product or service through effective marketing strategies.
A typical target marketing process involves four basic steps: identifying markets with unfulfilled needs, segmenting the market, targeting specific segments, and positioning one's product or service through marketing strategies.

Question 19

A marketer with an integrated marketing communications (IMC) perspective is likely to link high relative ad expenditures with premium prices, and low relative ad expenditures with low prices.
High relative ad expenditures should accompany premium prices, and low relative ad expenditures should be tailored to low prices. These results obviously support the IMC perspective that one voice must be conveyed.

Question 20

When a market is segmented based on how aware and informed the consumers are, the variable used to choose a marketing approach is product knowledge.
When marketers follow an approach based on the awareness and intention of consumers, they base their decisions on the product knowledge of consumers. This includes how aware, informed, and interested consumers are, and their intentions to purchase a product.

Question 21

_____ is defined as something unique or special a firm possesses or does that gives it an edge over other firms in a similar industry.

A)Competitor indexing
B)Switch marketing
C)Competitive advantage
D)Marketing-stub
E)Bait marketing

Question 22

Brown's Foods determined that Southerners preferred milder mustard than those in the Northeast. This led the company to develop a new "Southern Style Mustard." This strategy best exemplifies:

A)geographic segmentation.
B)lifestyle segmentation.
C)socioeconomic segmentation.
D)demographic segmentation.
E)usage segmentation.

Question 23

Which of the following is a geographic variable for segmentation of the market?

A)Family size
B)Occasions
C)Counties
D)Age
E)Gender

Question 24

Offering quality products that command a premium price, providing superior customer service, having the lowest production costs and lower prices, or dominating channels of distribution are ways of:

A)achieving competitive advantage.
B)practicing cross-merchandising strategy.
C)creating market space.
D)practicing bait-and-switch marketing.
E)establishing a marketing-stub.

Question 25

According to the marketing and promotions process model, in which of the following stages does the company decide the product or service areas and particular markets where it wants to compete?

A)Development of a marketing strategy and analysis
B)Development of the target marketing process
C)Allocation of advertising budget
D)Development of the marketing planning program
E)Creation of a positioning strategy

Question 26

_____ is a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands.

A)Matrix analysis
B)Micro analysis
C)Situation analysis
D)Opportunity analysis
E)Competitive analysis

Question 27

According to the marketing and promotions process model, the marketing process begins with the:

A)development of the brand equity.
B)development of a marketing strategy.
C)development of the promotional mix.
D)determination of the promotional budget.
E)establishment of a nano-campaign marketing strategy.

Question 28

There are several medicines that relieve allergy-related symptoms but only Sensitine comes in a quick dissolving form that can be easily swallowed without water. The manufacturer of Sensitine hopes the fact that it dissolves and enters the system quicker than other brands will create a:

A)market aggregation.
B)marketing assimilation.
C)competitive advantage.
D)cross-merchandising strategy.
E)market dis-intermediation.

Question 29

John & Bauer Inc., manufacturers of health drugs, are the manufacturers of a painkiller called JB Revive. The painkiller is unique as it contains calcium, and it is quite unlike any other pain killer in the market. The addition of calcium led to an increase in sales of the medicine as well. In this scenario, the addition of calcium gives the company a:

A)market engagement.
B)cross-merchandising opportunity.
C)competitive advantage.
D)marketing assimilation.
E)competitive index.

Question 30

Which of the following is a geographic segmentation variable?

A)Income
B)Neighborhood
C)Sex
D)Education
E)Involvement

Question 31

Directing a company's efforts toward one or more groups of customers who share common needs is known as:

A)cross-merchandising.
B)competitor indexing.
C)mass customization.
D)market segmentation.
E)cross-branding.

Question 32

The market segmentation process:

A)divides a market into distinct groups that have heterogeneous needs.
B)divides a market into distinct groups that will respond similarly to marketing actions.
C)offers one version of the product to all markets.
D)creates products for several markets that have independent needs.
E)positions products in the minds of prospects and customers.

Question 33

Dividing the market into units such as nation, states, town, counties, or even neighborhoods is known as:

A)demographic segmentation.
B)psychographic segmentation.
C)quantified aggregation.
D)lifestyle aggregation.
E)geographic segmentation.

Question 34

Delish Inc., a food manufacturer, introduced an instant soup specially designed for and advertised in the colder regions of Asia and Europe. This is an example of:

A)demographic segmentation.
B)psychographic segmentation.
C)sociocultural segmentation.
D)geographic segmentation.
E)undifferentiated marketing.

Question 35

During a routine market study conducted by CL Foods, it was noted that Chinese and Indian food products were in high demand in American society. In order to take advantage of such a demand, CL Foods manufactured and sold these food items locally. In this scenario, the company is taking advantage of a _____.

A)market opportunity
B)market aggregation
C)market assimilation
D)marketing buzz
E)market threat

Question 36

FunZone Inc. identified and developed a SmartCard that can be used at fair grounds to make the ticketing process easier. The company found that the existing system was complicated and highly time-consuming. The SmartCard was easy to operate and each swipe would deduct the cost of a ride automatically. According to the given scenario, FunZone has recognized a:

A)market opportunity.
B)marketing buzz.
C)marketing engagement.
D)marketing channel.
E)market threat.

Question 37

The first step in the target marketing process is to:

A)develop positioning strategies.
B)request government approval.
C)determine whether to use a market segmentation strategy or a mass marketing strategy.
D)identify markets with unfulfilled needs.
E)develop new products.

Question 38

Brown's Frozen BBQ Sandwiches are made with goat meat drenched in a sweet onion sauce. These sandwiches would not be popular in Texas, where people prefer beef, or in Miami where a mustard-based sauce is preferred. Which of the following segmentation approaches would be best for the company?

A)Demographic
B)Socioeconomic
C)Personality
D)Geographic
E)Behavioristic

Question 39

Which of the following is best defined as areas where there are favorable demand trends, customer needs and wants are not being satisfied, and where a company thinks it can compete effectively?

A)Market opportunities
B)Market segmentations
C)Marketing channels
D)Marketing-stubs
E)Market economics

Question 40

A situational analysis:

A)does not include an assessment of a company's product lines.
B)usually starts with a positioning strategy.
C)does not include an assessment of the conditions facing the company.
D)typically involves creating branding strategies.
E)includes an assessment of its individual brands.

Question 41

The 80-20 rule states that:

A)around 80 percent of the firm's sales comes from 20 percent of the customers.
B)only 80 percent of a market can be segmented.
C)market segmentation works well only 80 percent of the time, unlike market assimilation that works 20 percent of the time.
D)only about 80 percent of the people remember the firm's positioning of a product while the remaining 20 percent create their own positioning for a particular product.
E)about 80 percent of corporations do not understand the actual meaning of the term "market segmentation."

Question 42

Which of the following is a variable of the demographic segmentation strategy?

A)Personality
B)Marital status
C)Values
D)Lifestyle
E)Occupation

Question 43

Which of the following is a primary variable defined in psychographic segmentation?

A)Lifecycles
B)Income
C)Education
D)Life stage
E)Gender

Question 44

Enliven, a sports drink manufacturer, has identified its preferred target market as men between the ages of 18 to 22 who are currently in high school or college and active in sports. Which of the following types of segmentation is Enliven using in this scenario?

A)Benefit and demographic
B)Psychographic and geographic
C)Demographic and socioeconomic
D)Geographic and psychographic
E)Socioeconomic and psychographic

Question 45

Which of the following is a primary variable used in psychographic segmentation?

A)Income
B)Lifestyles
C)Education
D)Marital status
E)Age

Question 46

Division of the market based on age, sex, family size, income, and other measurable characteristics is known as:

A)demographic segmentation.
B)psychographic segmentation.
C)socioeconomic segmentation.
D)geographic segmentation.
E)undifferentiated segmentation.

Question 47

With respect to psychographic segmentation of markets, AIO stands for:

A)activities, innovation, and opinions.
B)activities, interests, and opportunities.
C)activities, innovations, and opportunities.
D)activities, interests, and opinions.
E)actions, interests, and opinions.

Question 48

_____ divides a market on the basis of lifecycles.

A)Geographic segmentation
B)Psychographic segmentation
C)Benefit segmentation
D)Demographic segmentation
E)Socioeconomic segmentation

Question 49

Which of the following is a primary variable of demographic segmentation?

A)Lifestyle
B)Personality
C)Occupation
D)Education
E)Social class

Question 50

Venus Finance aired a series of ads that targeted people born after 1980, also known as Generation Y. In this scenario, the company is using a _____ segmentation strategy.

A)geographic
B)demographic
C)socioeconomic
D)behavioristic
E)personality

Question 51

Dental Care, a dental hygiene products manufacturer, has come up with three types of toothpastes for different segments-whitening toothpaste for individuals who buy for aesthetic reasons, strawberry flavored toothpaste for those concerned with the taste, and germ-control toothpaste for those looking to protect their teeth all day long. On what basis has it segmented the market?

A)Demographic
B)Geographic
C)Socioeconomic
D)Benefit
E)Sociocultural

Question 52

Degree of usage as a basis of segmentation is best reflected by:

A)the VALS principle.
B)the iceberg principle.
C)the mirror image rule.
D)the rule of equity.
E)the 80-20 rulE.Degree of use relates to the fact that a few consumers may buy a disproportionate amount of many products or brands.Industrial marketers refer to the 80-20 rule, meaning 20 percent of their buyers account for 80 percent of their sales volume.

Question 53

Which of the following types of segmentation is employed when consumers are grouped according to their usage and buying responses to a product or service?

A)Behavioristic
B)Demographic
C)Benefit
D)Socioeconomic
E)Psychographic

Question 54

Dividing the market on the basis of personality and/or lifestyles is referred to as _____.

A)geographic segmentation
B)demographic segmentation
C)psychographic segmentation
D)socio economic segmentation
E)behavioral segmentation

Question 55

_____ segmentation divides consumers into groups according to their usage, loyalties, or buying responses to a product.

A)Benefit
B)Geographic
C)Demographic
D)Behavioristic
E)Psychographic

Question 56

Jim's Inc., a travel agency in Texas, offers trips that are designed specifically for couples. In this scenario, the company is using _____ segmentation.

A)geographic
B)demographic
C)lifestyle
D)behavioristic
E)personality

Question 57

Merry Inc. is a non-profit organization that employs a large number of underprivileged people. It sells art and handicrafts made by these individuals at reasonable prices. Merry's target market consists of people who believe in helping others. It uses _____ segmentation.

A)demographic
B)geographic
C)psychographic
D)benefit
E)socio economic

Question 58

Pluto Inc., a car manufacturer, makes high-end, expensive sports cars. The company targets people who live life on the fast lane and are generally considered to have flashy personalities. In this scenario, Pluto is using _____ segmentation.

A)psychographic
B)benefit
C)socioeconomic
D)undifferentiated
E)demographic

Question 59

_____ segmentation is most closely related to the 80-20 rule, which states that 80 percent of a company's business comes from 20 percent of its customers.

A)Geographic
B)Behavioristic
C)Demographic
D)Psychographic
E)Benefit

Question 60

A company that divides its target markets based on their perceived level of loyalty is using:

A)benefit segmentation.
B)geographic segmentation.
C)socioeconomic segmentation.
D)behavioristic segmentation.
E)outlet segmentation.

Question 61

Momentum, a brand of sports cars, launched an advertising campaign with a tagline that states "Our cars outperform most cars on the road even before you step on the accelerator." In this scenario, the company is using _____ segmentation.

A)benefit
B)demographic
C)geographic
D)psychographic
E)socioeconomic

Question 62

Chill, a beverage manufacturer, offers varied versions of its products that include diet, cherry flavored, vanilla flavored, and caffeine-free versions in addition to its original product. With respect to market coverage alternatives, the given scenario reflects the company's decision to cater to:

A)a concentrated market.
B)a differentiated market.
C)a buzz market.
D)an undifferentiated market.
E)a mass market.

Question 63

Which of the following is true of product positioning?

A)It does not focus on a product's competitors.
B)It is not possible to position a service.
C)It focuses purely on customers.
D)It involves creating a competitive advantage.
E)It is usually synonymous with market integration.

Question 64

_____ has been defined as "the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition."

A)Branding
B)Proximity mapping
C)Drip marketing
D)Segmentation
E)Positioning

Question 65

WristTactical, a watch manufacturer, specializes in manufacturing tactical watches for Navy divers. The company launched an ad campaign that stressed the water resistant and endurance characteristics of its watches. In this scenario, WristTactical is making use of _____ segmentation.

A)benefit
B)demographic
C)geographic
D)behavioristic
E)socioeconomic

Question 66

According to the market coverage alternatives, _____ involves ignoring segment differences and offering just one product or service for the entire market.

A)bait-and-Switch marketing
B)concentrated marketing
C)micro-marketing
D)neuromarketing
E)undifferentiated marketing

Question 67

A brand's market position refers to its:

A)relative market share.
B)location on store shelves.
C)image in the mind of the customers.
D)distribution intensity.
E)stage in the product life cyclE.The position of the product, service, or even store is the image that comes to mind and the attributes consumers perceive as related to it.

Question 68

Concentrated marketing involves focusing marketing efforts on:

A)different countries.
B)one particular segment.
C)mass markets.
D)various segments.
E)different counties.

Question 69

Mars Inc., a car manufacturer, offers cheap coupes, medium-priced sedans, as well as expensive sports cars. The company identifies and develops various products for several segments. This scenario is an illustration of:

A)concentrated marketing.
B)loyalty marketing.
C)buzz marketing.
D)bait-and-switch marketing.
E)differentiated marketing.

Question 70

Which of the following is a primary variable considered in benefit segmentation?

A)Attributes sought
B)Income
C)Lifestyle
D)Birth era
E)Marital status

Question 71

Star Furniture designs and sells bedroom furniture for people who are over six-feet tall, which is a relatively small target market. Which of the following strategies is the company employing in this scenario?

A)Differentiated marketing
B)Bait-and-switch marketing
C)Undifferentiated marketing
D)Concentrated marketing
E)Mass marketing

Question 72

Frosty Inc., a beverage manufacturer, only had one product in its line and was targeting all types of customers. With respect to the market coverage alternatives, which of the following would best suit the company?

A)Concentrated marketing
B)Undifferentiated marketing
C)Bait-and-switch marketing
D)Niche marketing
E)Psychographic marketing

Question 73

Outlander Inc. is a manufacturer of laptop computers. It plans on manufacturing computers that are targeted to users interested in video games. The computers are optimized for high-definition gaming and hence are expensive. Which of the following types of marketing strategies has Outlander adopted?

A)Bait-and-switch marketing
B)Undifferentiated marketing
C)Concentrated marketing
D)Buzz marketing
E)Differentiated marketing

Question 74

The fact that some consumers want flavored bottled water and others want it with added minerals provides an opportunity for _____ segmentation.

A)socioeconomic
B)benefit
C)geographic
D)psychographic
E)demographic

Question 75

Pluto Inc., a high-end car manufacturer, makes only 12 cars per year. The company caters only to the "super-rich" and manufacturers only on order. In this scenario, Pluto is using a _____ marketing strategy.

A)differentiated
B)undifferentiated
C)concentrated
D)mass
E)loyalty

Question 76

_____ segmentation is the grouping of customers on the basis of attributes sought in a product.

A)Benefit
B)Geographic
C)Socioeconomic
D)Demographic
E)Lifestyle

Question 77

Which of the following is true of concentrated marketing strategies?

A)They are used to promote multiple products in varied markets.
B)They are used as a precursor to undifferentiated marketing.
C)They usually involve only a single segment.
D)They attempt to catch a minority share in the market.
E)They are synonymous with undifferentiated marketing strategies.

Question 78

Which of the following is true of undifferentiated marketing?

A)It involves selecting one segment and attempting to capture a large market share.
B)It involves offering just one product or service to the entire market.
C)It involves creating a niche for a special product line.
D)It involves customizing products for various target segments.
E)It involves developing and offering a product for a specific market segment.

Question 79

_____ is used when the firm selects one segment and attempts to capture a large share of the market.

A)Mass marketing
B)Undifferentiated marketing
C)Concentrated marketing
D)Differentiated marketing
E)Bait-and-switch marketing

Question 80

With respect to the market coverage alternatives, _____ involves developing separate marketing strategies for a number of segments.

A)differentiated marketing
B)undifferentiated marketing
C)concentrated marketing
D)buzz marketing
E)B to B marketing