Deck 9: Segmentation, Targeting, and Positioning

Question 1

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.

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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 5

The first step in the STP process is to establish an overall strategy.

Question 6

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

Question 7

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

Question 8

Segmentation,targeting,and positioning

A) are terms that can be used interchangeably in developing marketing plans.
B) are part of a firm's marketing strategy.
C) should be done simultaneously so synergies can help streamline the effort.
D) are part of the marketing plan but bear little direct relationship to the marketing mix.
E) are optional elements of a marketing plan.

Question 9

The STP process is made up of strategy,targeting,and promotion.

Question 10

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 11

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

Question 12

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

Question 13

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 14

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

Question 15

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 16

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

Question 17

Coca-Cola launched Coke Zero to attract new customers in a segment it might not get with Diet Coke.

Question 18

Sally is in the new marketing department of a midsized lawn and garden company.She is working on the first marketing plan the firm has ever used.She has defined the mission and objectives,and she just finished a situation analysis for the firm.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) identify and evaluate opportunities by conducting segmentation,targeting,and positioning analysis.
E) use the Internet,catalogs,and vendor information to draw up a list of new products.

Question 19

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

Question 20

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

Question 21

"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 22

Differences in weather and climate create opportunities for

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

Question 23

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) clearly articulate the firm's vision or marketing strategy objectives.
D) select target markets.
E) develop a marketing mix,so that an appropriate segment can later be identified.

Question 24

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 25

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 26

__________ 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 27

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 28

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 29

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 30

The National Hockey League redirected its marketing efforts when a survey indicated that almost 50 percent of hockey fans were female.This is an example of __________ segmentation.

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

Question 31

__________ is an extreme form of a targeting strategy.

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

Question 32

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 33

For each target market,General Imaging Corporation,a manufacturer of imaging equipment,will engage in positioning by 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 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

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 36

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 37

Alex has found that both commercial and residential real estate buyers respond positively to his marketing communication message.Alex has identified __________ 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 38

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 39

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 40

When firms target several market segments with a different offering for each segment it is using which targeting strategy?

A) differentiated
B) mass marketing
C) undifferentiated
D) concentrated
E) micromarketing

Question 41

__________ segmentation is the segmentation method most directly related to value creation for consumers.

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

Question 42

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 43

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 44

Demographic segmentation is segmentation based on all of the following except

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

Question 45

VALS is the most widely used __________ segmentation tool.

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

Question 46

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

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

Question 47

Television advertising has recently expanded to include "mini-ads," which are short ads lasting 5 to 10 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 48

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 reasons why people make choices.
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 49

A university using benefit segmentation and targeting students who want to get a degree quickly 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 Nobel Prize winners on the faculty.

Question 50

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 a PRIZM or 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 51

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 52

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 53

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 54

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 55

PRIZM and Tapestry divide and sort small geographic areas into categories using 60 or more demographic and lifestyle characteristics.These market research tools are examples of __________ segmentation.

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

Question 56

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 57

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 58

Education marketers know that the primary motivations of most nontraditional college students are self-respect and self-fulfillment,so they craft their marketing message to emphasize the benefits these consumers are looking for in a college education.Which type of segmentation method was used to segment this market?

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

Question 59

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 60

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 61

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service.She will now evaluate whether or not each segment is attractive relative to all of the following except

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

Question 62

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

Question 63

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 64

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 65

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 66

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 67

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 68

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 69

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 70

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 71

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) PRIZM segment.

Question 72

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 73

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 74

When Ron complained to his bank about the unprofessional behavior of one teller,the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests.The branch management included Ron in its __________ segmentation.

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

Question 75

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 76

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 77

Airlines were among the first retailers to embrace loyalty segmentation when they created

A) business-class seating.
B) 30-day advance pricing.
C) fuel surcharges.
D) in-flight movies.
E) frequent-flyer programs.

Question 78

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 79

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 80

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