Question 1

Cannibalization occurs when the sales of a firm's existing product increase with the introduction of a new product.

Accepted Answer

Cannibalization occurs when the sales of a firm's existing product decrease due to the introduction of a new product that competes with it.

Question 2

The world's best coffee beans come from Colombia.Therefore,the more Colombian beans in a blend of coffee,the better the blend; and no company purchases more Colombian beans than Kreemo Coffee.Which positioning strategy is the company demonstrating?

Accepted Answer

Kreemo Coffee is using product differentiation by emphasizing the quality of their coffee blend due to the high content of Colombian beans, which are considered the best.

Question 3

Direct and personal marketing efforts will continue to grow to meet the needs of consumers who no longer have the time to spend shopping and making purchase decisions.Which tool helps marketers meet this demand of consumers?

Accepted Answer

The answer of Direct and personal marketing efforts will continue...

Question 4

Starlight Jewelry sends Lauren a birthday card along with a pendant as a token of appreciation for shopping frequently at its store.This trend in customer relationship management aims at cultivating its customers by _____.

Accepted Answer

Starlight Jewelry is acknowledging Lauren's loyalty by sending her a birthday card and a pendant, which is a gesture to appreciate and cultivate a positive relationship with frequent customers.

Question 5

Kirksand Airlines is well known for providing excellent customer service to its flyers.The staff members inquire about each flyer's wants and needs,and listen carefully to their responses.If a flyer has any specific requests,the staff members ensure that they are immediately attended to.In this scenario,Kirksand Airlines illustrates _______________,which has been found successful in spurring on the growth of customer relationship management.

Accepted Answer

Kirksand Airlines demonstrates personalization by tailoring their service to meet the individual needs and preferences of each flyer, which is a key aspect of effective customer relationship management.

Question 6

Mass-marketing efforts will continue to be used by marketers:

Accepted Answer

Mass-marketing efforts are often used to remind consumers of a product, as they reach a wide audience and help maintain brand awareness.

Question 7

In the context of customer relationship management (CRM),_____ offers marketers a more cost-effective way to reach customers and enables businesses to personalize their messages.

Accepted Answer

New technology in CRM allows businesses to reach customers more cost-effectively and personalize messages through tools like data analytics, automation, and digital communication platforms.

Question 8

Tesla wanted to break into the electric vehicle (EV)marketplace with a luxury sports model.At that time,economic value was more highly prized than form and function.Therefore,Tesla chose not to compete with the other brands' successful luxury hybrids and targeted the high-end market for electric vehicles.Which base did Tesla use to position itself in the market?

Accepted Answer

Tesla positioned itself in the market based on attributes, specifically by targeting the high-end market for electric vehicles.

Question 9

A marketer who tries to convince consumers that a particular brand is distinctive-and,therefore,they should demand it-is concerned with which positioning strategy?

Accepted Answer

Product differentiation is the strategy of making a brand stand out as unique or distinctive compared to competitors, encouraging consumers to prefer it over others.

Question 10

Once known as a rugs brand,in 2006 Burberry revamped its product line to reinvent itself as a luxury brand by harnessing the power of heritage.Which strategy did Burberry use to influence the overall perception of its brand in the eyes of its old and potential new customers?

Accepted Answer

Burberry used repositioning to change its brand image from a traditional rugs brand to a luxury brand, leveraging its heritage to appeal to both existing and new customers.

Question 11

Even with the advantages of CRM as a targeting tool,marketers will continue to use mass marketing,especially to create brand awareness or to remind consumers of a product.

Accepted Answer

Mass marketing is still effective for reaching a broad audience and creating brand awareness, which is why it continues to be used alongside targeted CRM strategies.

Question 12

New technology that allows marketers to collect detailed information of customers offers marketers a more cost-effective way to reach customers and:

Accepted Answer

The answer of New technology that allows marketers to collect...

Question 13

Which statement is true of product positioning?

Accepted Answer

Product positioning is about influencing how potential customers perceive a brand and its products, considering various factors beyond just price, such as quality, features, and benefits.

Question 14

One advantage of undifferentiated marketing is the potential for saving on production and marketing costs.

Accepted Answer

Undifferentiated marketing targets a broad audience with a single strategy, allowing companies to produce and market a single product or message, which can reduce costs compared to creating multiple tailored campaigns.

Question 15

One disadvantage of the personal and targeted nature of customer relationship management (CRM)is that consumers are spending more time making purchase decisions.

Accepted Answer

The personal and targeted nature of CRM is designed to streamline and simplify the decision-making process for consumers, not prolong it.

Question 16

Advertisements of Dove soap show real women in its campaigns and commercials rather than celebrities.Which product positioning has Dove chosen for marketing its soap?

Accepted Answer

The answer of Advertisements of Dove soap show real women...

Question 17

How do marketers use customer relationship management (CRM)as a targeting tool?

Accepted Answer

The answer of How do marketers use customer relationship management...

Question 18

As a commitment to diversity and inclusion,Bank of America partnered with the American Ad Council on a campaign known as "Love Has No Labels." The campaign was a roaring success as it touched upon which positioning base of its audience?

Accepted Answer

The "Love Has No Labels" campaign successfully resonated with its audience by appealing to their emotions, focusing on themes of love, acceptance, and diversity.

Question 19

Companies that successfully implement customer relationship management (CRM)tend to:

Accepted Answer

Successful CRM implementation involves customizing goods and services to meet the specific needs and preferences of individual customers, enhancing customer satisfaction and loyalty.

Question 20

A concentrated strategy can be disastrous for a firm that is not successful in its narrowly defined target market.

Accepted Answer

A concentrated strategy focuses on a specific market segment, so if the firm fails in that niche, it lacks diversification to fall back on, leading to potential disaster.

Quiz 8: Segmenting and Targeting Markets