Question 1

The final step in market segmentation is selecting segmentation descriptors.

Accepted Answer

The final step in market segmentation is selecting target markets, not selecting segmentation descriptors.

Question 2

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

Accepted Answer

An undifferentiated targeting strategy treats the entire market as a single segment, which can lead to generic products that lack specific appeal, making them less attractive to any particular group.

Question 3

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

Accepted Answer

Promotion is indeed one of the four key components of the marketing mix, alongside Product, Price, and Place, often referred to as the 4 Ps.

Question 4

Tennot Inc.sells used cars.It focuses solely on low-income customers who prefer to buy a used car rather than a new one.Therefore,it develops one marketing mix that targets a low-income demographic group.In this scenario,Tennot Inc.most likely uses a(n)_____.

Accepted Answer

Tennot Inc. uses a concentrated targeting strategy as it focuses on a specific demographic group, which is low-income customers, with a single marketing mix.

Question 5

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

Accepted Answer

A multisegment targeting strategy allows firms to achieve economies of scale in manufacturing and marketing by serving multiple market segments with different products, which can lead to more efficient production and marketing processes.

Question 6

A firm that adopts an undifferentiated targeting strategy assumes that:

Accepted Answer

An undifferentiated targeting strategy assumes that the market is homogeneous, meaning individual customers have similar needs that can be met with a single marketing mix.

Question 7

Which of the following occurs when sales of a new product cut into sales of a firm's existing products?

Accepted Answer

Cannibalization occurs when a new product introduced by a company takes sales away from its existing products, reducing the overall sales of the company's product line.

Question 8

Unilever is an example of multinational company with a multisegment targeting strategy that has many products in its product line.

Accepted Answer

Unilever is a multinational company that targets multiple market segments with a diverse range of products across various categories, such as food, beverages, cleaning agents, and personal care.

Question 9

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

Accepted Answer

A concentrated targeting strategy is often adopted by small firms to effectively compete with larger firms by focusing on a single, well-defined market segment.

Question 10

Chipotle stated they were "in the market for Mexican food" by competing on quality instead of price.Chipotle is a company that prides itself on serving "food with integrity." Which mass market targeting strategy did it use when entering the market?

Accepted Answer

The answer of Chipotle stated they were "in the market...

Question 11

Laelle is a confectionery company that manufactures candies.It does not use specific strategies to target children when marketing its products.Instead it uses the same strategies to promote its candies among all consumers in the market.In this scenario,Laelle uses a(n)_____.

Accepted Answer

Laelle uses an undifferentiated targeting strategy because it employs the same marketing approach for all consumers, without segmenting the market or targeting specific groups like children.

Question 12

Segmenting by customer type allows business marketers to tailor their marketing mixes to the common needs of particular types of organizations or industries.

Accepted Answer

The answer of Segmenting by customer type allows business marketers...

Question 13

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

Accepted Answer

A concentrated targeting strategy focuses on a specific market niche, tailoring marketing efforts to meet the needs of that particular segment, unlike an undifferentiated strategy which treats the market as a whole without segmenting.

Question 14

Prisly Inc.is a multinational company that specializes in manufacturing and selling high-end cars.It launches a new car,the Gwen 2.0,that becomes highly successful in the market because of its economical price and excellent features.However,this leads to a significant decline in the sales of Prisly Inc.'s other cars.This scenario exemplifies _____.

Accepted Answer

Cannibalization occurs when a new product eats into the sales of the company's existing products, as seen with the Gwen 2.0 affecting the sales of Prisly Inc.'s other cars.

Question 15

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

Accepted Answer

An undifferentiated targeting strategy essentially adopts a mass-market philosophy, viewing the market as one big market with no individual segments.

Question 16

Explain the steps involved in segmenting a market.

Accepted Answer

The answer of Explain the steps involved in segmenting a...

Question 17

Apple saw a huge drop in the sales of its iPhone 6s when they launched the iPhone 7.This situation exemplifies _________________,that is,when a new product cuts into the sales of existing products within the same company.

Accepted Answer

Cannibalization occurs when a new product introduced by a company takes sales away from its existing products, as seen with the iPhone 7 affecting iPhone 6s sales.

Question 18

Chipotle has become popular with a variety of people.It recently identified a primary customer segment in Millennials.To win over this demographic group,traditional media is less authentic in the perception of Millennials,therefore,Chipotle does not use traditional media,and its marketing and promotion focus on maintaining a large online and social media presence.Here Chipotle is likely to use:

Accepted Answer

Chipotle is focusing on a specific demographic group, Millennials, which indicates a concentrated targeting strategy.

Question 19

A dynamic segmentation approach adjusts to fit the changes that occur in customers' lives.

Accepted Answer

Dynamic segmentation involves continuously updating customer segments based on new data and changes in customer behavior, preferences, and life events.

Question 20

A company selling plain toilet paper is an example of a firm that uses an undifferentiated targeting strategy.

Accepted Answer

An undifferentiated targeting strategy involves marketing a product to a broad audience without segmenting the market, which is typical for products like plain toilet paper that have universal appeal and do not require differentiation.

Quiz 8: Segmenting and Targeting Markets