Deck 16: Coke Zero

Question 1

A potential cost of marketing Coke Zero could be the ________ of sales from other drinks within the Coca-Cola product line.

A) differentiation
B) segmentation
C) concentration
D) cannibalization
E) None of the above

Answer 1

D
A potential cost of multisegment targeting is cannibalization,which occurs when sales of a new product cut into sales of a firm's existing products.In this case,regular and Diet Coke may see a drop in sales as some customers switch to Coke Zero.

Question 2

The Coca-Cola Company uses an undifferentiated targeting strategy for its entire line of products.

Answer 2

False
Before 1960,the Coca-Cola Company produced only one beverage and aimed it at the entire soft-drink market.Today,however,it sells a variety of products with multisegment targeting.An undifferentiated targeting strategy,by contrast,adopts a mass-market philosophy,viewing the market as one big market with no individual segments.

Question 3

MyCokeRewards.com,which gives Coke drinkers points for each purchase that they can redeem for rewards such as downloadable ring tones,is an example of

A) a frequency/loyalty program.
B) benefit segmentation.
C) mass marketing.
D) product differentiation.
E) a points-for-purchase program.

Answer 3

A
Developing customers into heavy users is the goal behind frequency/loyalty programs such as My Coke Rewards.The more Coke you purchase the more rewards you earn.

Question 4

When the Coca-Cola Company set out to create a product that would appeal to young Hispanic men,they were using ________ segmentation.

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

Question 5

The hidden-camera videos that were placed strategically on Web sites like YouTube to promote Coke Zero were an example of marketing according to

A) benefit segmentation.
B) demographics.
C) geodemographic segmentation.
D) usage-rate segmentation.
E) psychographic segmentation.

Question 6

A clear version of Coke Zero would probably be successful if it was positioned as the only clear diet cola on the market.

Question 7

A list of reasons why customers choose to drink Diet Coke Plus would be helpful for marketers using benefit segmentation.

Question 8

When Coca-Cola reintroduced the Coke Zero can in 2007 with a new black label for the U.S.market so that it would no longer be confused with Diet Coke or other diet colas,it was attempting:

A) one-to-one marketing.
B) geodemographic segmentation.
C) product differentiation.
D) repositioning.
E) All of the above

Question 9

If the Coca-Cola Company decided to start marketing Coke Zero as a drink for middle-aged women,then they would be repositioning it.

Question 10

Coca-Cola was hoping that its customer's loyalty to drinking Diet Coke would easily transition to market share for Diet Coke Plus.