Deck 9: Segmentation, Targeting, and Positioning

Question 1

For products like pencils and paper clips, marketers should probably use an undifferentiated targeting strategy.

Answer 1

True

Question 2

It would be logical for bathing suit marketers to use geographic segmentation.

Answer 2

True

Question 3

At which point in the STP process does a firm ensure its segmentation strategy is consistent with and derived from its strengths, weaknesses, opportunities, and threats?

A) when the firm chooses a particular method for segmenting its market
B) when the firm articulates the vision or objectives of its marketing strategy
C) when the firm determines which segment is worth pursuing
D) when the firm assesses the attractiveness of a target market
E) when the firm presents the value of its product or service

Answer 3

B

Question 4

When deciding how to promote his new medical oncology center, Dr. Jones decided that he did not need to throw a large grand opening reception. Instead, he promoted the center to the internal medicine doctors in the area, who were the doctors most likely to refer patients to the center. Dr. Jones was engaged in a concentrated targeting strategy.

Question 5

Maintaining a unique value proposition can be sustained in the long term only in monopoly situations or monopolistic competition situations.

Question 6

The different methods of segmenting a market include targeting, positioning, psychographic, and behavioral.

Question 7

A company that sells only multigrain, low-calorie bread should use an undifferentiated targeting strategy.

Question 8

As it relates to positioning, a self-values map displays the position of products or brands in the consumer's mind.

Question 9

The first step in the segmentation process is to articulate the vision or objectives of the company's marketing strategy clearly.

Question 10

Giant Food Stores in suburban Washington, DC, adjusts its ethnic food aisle offerings based on the ethnic groups living near each store. Giant Foods is using geodemographic segmentation.

Question 11

Positioning strategies generally focus either on how the product benefits the consumer or on how it is better than competitors' products.

Question 12

The loyalty program My Starbucks Rewards, which allows members to pay via their mobile device and earn points toward discounts and free offers, enables Starbucks to gather the purchase behavior data, appropriately segment that customer, and offer customers deals within a week.

Question 13

When a marketer adjusts the marketing mix to give customers a clear, distinctive, desirable understanding of what the product does, the marketer is engaging in psychographic segmentation.

Question 14

Automobile manufacturers could build cars specially designed for very tall people (for example, over seven feet), but it is likely that this segment is not substantial.

Question 15

A value proposition compares the price of a product to its benefits.

Question 16

NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of its fans were female. This is an example of psychographic segmentation.

Question 17

Sally is in the new marketing department of a midsized lawn and garden company. She is working on the firm's first-ever STP analysis. She has defined the mission and objectives and identified and selected a segmentation method. The next step is to

A) develop an advertising plan to promote the upcoming sales.
B) find marketing interns or hire new staff to help with implementation.
C) create pro forma financial statements to complete the package.
D) evaluate the attractiveness of the various segments identified.
E) use the Internet, catalogs, and vendor information to draw up a list of new products.

Question 18

Perceptual maps include positions of current brands as well as ideal points where a consumer segment would want a product to be.

Question 19

The Value and Lifestyle Survey (VALS) conducted by Strategic Business Insights (SBI) is a widely used tool for geographic segmentation.

Question 20

A complex product that is best described in writing will be difficult to explain to consumers who are unable to read. For this reason, a segment in which many consumers could not read would be considered unattractive because the consumers would not be responsive.

Question 21

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Adidas uses the different brands to pursue a(n) ________ strategy.

A) concentrated targeting
B) micromarketing
C) benefit targeting
D) differentiated targeting
E) undifferentiated targeting

Question 22

"Corporate pilot fish" are former employees who start a new business based primarily on contacts and contracts with their old company. A corporate pilot fish would probably pursue a(n) ________ targeting strategy.

A) macromarketing
B) micromarketing
C) benefit-based
D) differentiated
E) undifferentiated

Question 23

Kellogg's marketing communications about its Special K cereal appeal almost exclusively to women. This is an example of ________ segmentation.

A) geographic
B) psychographic
C) demographic
D) benefits
E) behavioral

Question 24

________ is an extreme form of a targeting strategy.

A) Macromarketing
B) Micromarketing
C) Benefit marketing
D) Differentiated targeting
E) Concentrated targeting

Question 25

Alex has found that both commercial and residential real estate buyers respond positively to his marketing communication message. Alex has identified different ________ that respond similarly to his marketing efforts.

A) mass customization consumers
B) geographic segments
C) market segments
D) self-concept customers
E) geodemographic segments

Question 26

Differences in weather and climate create opportunities for

A) concentrated targeting.
B) geographic segmentation.
C) benefit segmentation.
D) psychographic segmentation.
E) demographic segmentation.

Question 27

Beer marketers know that high-school educated, working-class males from the ages of 25 to 40 make an attractive market for their products. This is a ________ segment of the beer market.

A) demographic
B) psychographic
C) behavioral
D) benefits
E) geographic

Question 28

________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach.

A) Geographic
B) Psychographic
C) Behavioral
D) Benefits
E) Demographic

Question 29

A differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market; this strategy

A) is the cheapest option.
B) requires the use of advanced advertising techniques.
C) rarely works.
D) is likely more costly than an undifferentiated strategy.
E) is ineffective without multiple brand names.

Question 30

Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and ________ targeting strategies.

A) geographic
B) benefit-based
C) economic
D) global
E) concentrated

Question 31

Adidas Group owns Reebok and Rockport-both of which offer different types of shoes. Having a variety of brands allows Adidas to use a differentiated targeting strategy to

A) engage in micromarketing for hard-to-fit shoe customers.
B) obtain a bigger share of the shoe market.
C) use mass marketing techniques.
D) utilize geographic segmentation.
E) generate economies of scale in advertising expenditures.

Question 32

In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into "Butterball" turkeys. In doing so, the company

A) differentiated its product.
B) streamlined its delivery process.
C) created a new class of micromarketing.
D) defined consumers' basic needs.
E) redefined mass customization.

Question 33

The first step in the STP process is to

A) identify the segmentation methods to be used.
B) produce a list of strengths and weaknesses of the firm's past marketing strategies.
C) establish the overall strategy or objectives.
D) select target markets.
E) develop a marketing mix, so that an appropriate segment can later be identified.

Question 34

One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify its business and

A) decrease advertising spending.
B) focus on a single market segment.
C) lower overall risk.
D) use undifferentiated strategies in micro markets.
E) more widely market basic commodities.

Question 35

Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order shoes with custom color combinations. This is a form of

A) micromarketing.
B) concentrated targeting.
C) psychographic segmentation.
D) differentiated targeting.
E) undifferentiated targeting.

Question 36

For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting its marketing mix variables in order to give customers

A) a more flexible supply chain strategy.
B) a perceptual map of the imaging landscape.
C) more product features than the competition offers.
D) lower prices than the competition offers.
E) a clear, distinctive, and desirable understanding of their products relative to competing products.

Question 37

For products like clothespins, which provide the same benefit for all consumers, marketers should probably use a(n) ________ strategy.

A) concentrated targeting
B) lifestyle segmentation
C) benefit segmentation
D) undifferentiated targeting
E) differentiated segmentation

Question 38

When Penguin Catering Services first opened, the owner decided to target only events at resorts in its geographic region. Penguin Catering was using a(n) ________ targeting strategy.

A) concentrated
B) micromarketing
C) benefit-driven
D) differentiated
E) undifferentiated

Question 39

Firms use a differentiated targeting strategy because

A) it is easier than mass marketing.
B) it helps obtain a bigger share of the market.
C) it is better than focusing on individual or small groups of potential customers.
D) most market segments are too small to be profitable.
E) banks are more willing to extend credit to companies with this strategic approach.

Question 40

When Mr. How, a Pennsylvania-based discount lumber and hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in

A) concentrated segmentation.
B) geodemographic segmentation.
C) benefit segmentation.
D) psychographic segmentation.
E) misguided geographic segmentation.

Question 41

Beverage companies often use television commercials with images of young people laughing and enjoying themselves on a beach or in a club. These images are designed to appeal to consumers' ________, suggesting "be like me."

A) geographic choices
B) self-concepts
C) loyalty references
D) benefit perceptions
E) demographics

Question 42

Marketers have found that ________ segmentation is often more useful for predicting consumer behavior than ________ segmentation.

A) demographic; psychographic
B) geographic; geodemographic
C) psychographic; demographic
D) demographic; behavioral
E) demographic; benefit

Question 43

If values provide an end goal, and self-concept is the way one sees oneself in the context of that goal, lifestyles are

A) visual images of how we should live our lives.
B) our underlying motivations.
C) how we live our lives to achieve our goals.
D) motivations turned into perceptual maps.
E) determined by demographics.

Question 44

Baby Boomers represent a huge demographic segment for travel marketers. Baby Boomers are also heavily motivated by self-fulfillment, which creates the possibility of ________ segmentation.

A) geographic
B) self-concept
C) psychographic
D) benefit
E) behavioral

Question 45

Toothpastes sold in supermarkets and pharmacies promise various results, such as whiter teeth, protection against gum disease, tartar control, or fresh breath. Toothpaste marketers are using ________ segmentation.

A) benefit
B) geodemographic
C) psychographic
D) loyalty
E) demographic

Question 46

More and more women have been posting photos of themselves on social media wearing little to no make-up to emphasize the concept of real and natural beauty. Beauty brands such as Glossier have responded to this trend by producing and marketing a product line that celebrates the natural beauty of women. What type of segmentation method is being used to segment this market?

A) psychographics
B) demographics
C) geographics
D) geodemographics
E) behavior

Question 47

The light beer commercial with the slogan "less filling, tastes great" was based on ________ segmentation.

A) geographic
B) geodemographic
C) psychographic
D) benefit
E) loyalty

Question 48

To develop psychographic segments, the marketer must understand consumers'

A) age, income, and education.
B) gender, race, and religion.
C) disposable personal income, benefit perceptions, and alternative egos.
D) self-values, self-concept, and lifestyles.
E) buying patterns and behaviors.

Question 49

Gloria is opening an upscale women's clothing store in a growing suburban residential area. Gloria knows her target market is upper-income women living within 20 miles of her store. She can't afford to purchase Tapestry analysis, so she will most likely use ________ as a basis for targeting her market.

A) voter registration lists
B) the city phone book
C) real estate values by subdivision
D) public school enrollment data
E) new construction data

Question 50

Psychographics is the segmentation method that delves into how consumers

A) adjust to demographic changes.
B) allocate scarce incomes to a variety of goods and services.
C) describe themselves.
D) value their livelihoods.
E) believe other people see them.

Question 51

VALS is the most widely used ________ segmentation tool.

A) geographic
B) behavioral
C) psychographic
D) benefits
E) geodemographic

Question 52

Paul is considering psychographics as a way to segment the market for his small travel agency. This approach to segmentation offers him an advantage because

A) it is based on underlying motivations of target customers.
B) it is easier to use than demographics.
C) the travel business doesn't respond well to other approaches to segmentation.
D) psychographics is the preferred method for service businesses.
E) psychographic segmentation is the least expensive method.

Question 53

Demographic segmentation is segmentation based on all of the following except

A) age.
B) gender.
C) education.
D) income.
E) lifestyle.

Question 54

________ segmentation is the segmentation method most directly related to the satisfaction of consumer needs and wants.

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

Question 55

Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation

A) is available only in limited geographic areas.
B) is rarely used and unproven.
C) offers only one-to-one marketing potential.
D) is a more expensive method for identifying potential customers.
E) is still an unproven area.

Question 56

A university that uses benefit segmentation to target students who want to get a degree while still working full-time would most likely focus on

A) providing classes at convenient times and offering online courses.
B) discount pricing for students taking more than twelve credit hours.
C) the higher average salaries earned by college graduates.
D) the great variety of classes offered.
E) the number of adjunct faculty.

Question 57

Television advertising has recently expanded to include "mini-ads," which are short ads lasting five to ten seconds. These ads are most useful in advertising to men, since men are more likely than women to channel surf during commercial breaks. Given this fact, this type of advertising will be more useful to marketers engaged in ________ segmentation.

A) demographic
B) psychographic
C) behavioral
D) benefits
E) geographic

Question 58

The Tapestry™ Segmentation system divides and sorts small neighborhoods into categories using 60 or more characteristics such as income, home value, occupation, and education, as well as activity interests, such as sports, dancing, the arts, and so forth. This market research tool is an example of ________ segmentation.

A) geodemographic
B) benefit
C) psychographic
D) loyalty
E) geographic

Question 59

The phrase "birds of a feather flock together" captures the idea of ________ segmentation.

A) geodemographic
B) benefit
C) psychographic
D) loyalty
E) geographic

Question 60

Golden Years Vitamin Corporation targets consumers living in Florida who are over age 65. Golden Years is using ________ segmentation.

A) benefit
B) self-actualization
C) psychographic
D) loyalty
E) geodemographic

Question 61

Carlos has identified four potential market segments for his Rent-A-Nurse service. He will now compare the segments to see if they are distinct from each other. Carlos is evaluating whether or not each segment is

A) identifiable.
B) responsive.
C) profitable.
D) reachable.
E) substantial.

Question 62

Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power. Greta is concerned with whether the segment is

A) substantial.
B) responsive.
C) profitable.
D) reachable.
E) identifiable.

Question 63

With access to the Internet nearly universal in the United States, many potential market segments have become more

A) substantial.
B) perceptive.
C) identifiable.
D) reachable.
E) quantifiable.

Question 64

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to

A) categorize each market segment by consumer demographics.
B) establish her overall objectives.
C) decide on a targeting strategy.
D) develop a positioning strategy.
E) evaluate the attractiveness of each segment.

Question 65

Marketers often create a special marketing mix for loyalty segments because these segments are

A) too large to service with ordinary targeting.
B) difficult to identify.
C) costly to acquire.
D) generally profitable.
E) constantly changing.

Question 66

Kim's Kayak Tours initially identified active retirees living in the retirement community nearby as one of its target markets. Kim then tailored her service and marketing message to the interests and schedules of that audience. Kim initially used ________ segmentation and then used ________ segmentation.

A) micromarketing; loyalty
B) lifestyle; macromarketing
C) geodemographic; lifestyle
D) geographic; loyalty
E) behavioral; geodemographic

Question 67

When Talbots, an upscale women's clothing store, tries to portray an image of "traditional, conservative, and with good taste," it is appealing to its target market's

A) lifestyle.
B) geodemographics.
C) demographics.
D) loyalty.
E) Tapestry segment.

Question 68

While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do not help marketers determine

A) how old their customers are.
B) what their customers need.
C) where their customers live.
D) which customers have young children.
E) what income brackets their customers are in.

Question 69

When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be ________ to the company's offerings.

A) responsive
B) perceptive
C) identifiable
D) reachable
E) quantifiable

Question 70

One of the reasons marketers use loyalty segmentation is

A) the high cost of finding new customers.
B) government tax incentives.
C) accounting difficulties associated with identifying new customers.
D) rapid population increases.
E) the failure of micromarketing as a workable strategy.

Question 71

College students can be a less ________ market segment because students' media habits are quite diverse and firms might have to use a wide variety of media to attract this segment.

A) substantial
B) perceptive
C) identifiable
D) reachable
E) quantifiable

Question 72

Retail store chains often use ________ data to tailor each store's assortment to the preferences of the local community.

A) geodemographic
B) benefit
C) psychographic
D) loyalty
E) geographic

Question 73

When airlines created frequent-flyer programs, they were among the first retailers to embrace

A) geographic segmentation.
B) education segmentation.
C) lifestyle segmentation.
D) convenience segmentation.
E) loyalty segmentation.

Question 74

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate the attractiveness of each segment by considering whether those segments are all of the following except

A) substantial.
B) responsive.
C) profitable.
D) reachable.
E) realistic.

Question 75

Ryan wants to sell personal website services to American soldiers in Afghanistan. Because of the difficulty of communicating with people in a war zone, Ryan may have trouble with this segment not being

A) substantial.
B) perceptive.
C) identifiable.
D) reachable.
E) quantifiable.

Question 76

When Ron complained to his bank's branch manager about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all tellers that Ron was a valued, long-time customer and to provide whatever service he requests. The branch manager is using ________ segmentation to retain Ron as a customer.

A) benefit
B) geodemographic
C) psychographic
D) loyalty
E) geographic

Question 77

Geodemographic segmentation can be particularly useful for ________, because customers typically patronize stores close to their neighborhood.

A) Internet marketers
B) wholesalers
C) retailers
D) consumer goods manufacturers
E) cable TV networks

Question 78

For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's marketing mix. In other words, the market segment must be

A) substantial.
B) perceptive.
C) identifiable.
D) reachable.
E) responsive.

Question 79

Talbots, an upscale women's clothing store, targets college-educated women between 35 and 55 years old with average household income of $75,000 or more. This is a form of ________ segmentation.

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

Question 80

Marketers often employ a combination of segmentation methods, using ________ to identify and target their customers, and ________ to design products and messages to appeal to them.

A) loyalty segmentation; demographics
B) undifferentiated targeting; differentiated targeting
C) loyalty segmentation; geodemographics
D) demographics and geography; lifestyle or benefit segmentation
E) lifestyle segmentation; geographic segmentation