Question 1

"Careful cooks," "down-home stokers," and "functional feeders" are all examples of

Accepted Answer

"Careful cooks," "down-home stokers," and "functional feeders" all describe different lifestyles and behaviors, indicating that this is an example of lifestyle segmentation. Geopsychographic segmentation would focus on a consumer's values, interests, and personality traits related to a particular geographic location, whereas psychousage segmentation would be based on the consumer's attitude toward a product and how frequently it is used. Benefit segmentation would focus on the specific benefits that consumers seek from a product.

Question 2

When Mobil positioned itself as the "Friendly Serve" station, it had a number of good reasons for the selection of its target market. Which one of the following is not one of them?

Accepted Answer

The number of people in a segment does not necessarily make it the most attractive for targeting. Other factors such as spending power, growth potential and fit with the company's resources and capabilities are more important in making a strategic decision on target market selection.

Question 3

One benefit of using demographic segmentation is that it

Accepted Answer

Demographic segmentation categorizes the market based on demographic variables such as age, gender, income, etc., which helps in selecting appropriate media vehicles that are most likely to reach the target demographic effectively.

Question 4

A package delivery company decides it wants to get into the flower delivery business. However, it knows that FTD has a huge share of the market and can offer service worldwide. It decides to look for a market niche. Which of the following is not an advantage of this strategy?

Accepted Answer

It is highly unlikely that the company's market niche would be larger than FTD's market, given that FTD has a huge share of the market and offers services worldwide. The other options are advantages of this strategy - the company can charge more for its product, FTD may not be interested in competing in the niche, and the company can still attempt to serve other segments.

Question 5

When segmenting markets based on consumers' usage patterns, variety seekers as a segment are characterized by

Accepted Answer

Variety seekers are consumers who are always looking for new and different products to try. Therefore, they are less likely to exhibit repeat purchasing behavior and more likely to be motivated by promotions such as sales and coupons.

Question 6

A market niche is

Accepted Answer

A market niche refers to a relatively small group of consumers who have a unique set of needs and are willing to pay a premium price to a firm that specializes in meeting those needs. This allows the firm to focus on a specific segment of the market and differentiate itself from competitors. It is different from option A, which refers to a competitive position with little profitability, option C, which implies stealing from a competitor (which may not be ethical), and option D, which emphasizes positioning close to the market leader without focusing on a specific segment's unique needs.

Question 7

Folgers launched a new brand initiative called "Happy Mornings: the Revenge of the Yellow People." Using STP, they changed their brand positioning as part of a strategy that

Accepted Answer

The new brand initiative "Happy Mornings: the Revenge of the Yellow People" suggests that Folgers is targeting a new audience and using language that is relevant to their lifestyles. This indicates a change in brand positioning using STP (segmentation, targeting, and positioning). While the campaign may also bring color to the brand reputation and use nostalgia for 1950's monster movies, these factors are not the main drivers for the brand initiative.

Question 8

Descriptors such as age, gender, race, and marital status are widely used in

Accepted Answer

Demographic segmentation divides the market based on demographic variables such as age, gender, income, and education level. Therefore, descriptors such as age, gender, race, and marital status are widely used in demographic segmentation.

Question 9

Self expressive benefits can be the basis for effective positioning. With this approach the purpose is

Accepted Answer

Self expressive benefits are about creating a unique image or personality for the brand that consumers can identify with and become part of. This approach focuses more on emotional differentiation and creating a sense of community around the brand rather than just highlighting utilitarian benefits or trying to avoid competition.

Question 10

____ are those whose brand preferences are still under development and are likely to offer future potential success for the brand.

Accepted Answer

Emergent consumers are those who are still in the process of developing their brand preferences and have potential for future success for the brand. Brand loyal users are already committed to a particular brand, heavy users are those who frequently use a product or service but may not necessarily be loyal to a specific brand, and variety seekers are those who like to try new brands and products frequently.

Question 11

As marketing manager for a large company that publishes magazines, you have been put in charge of positioning a new magazine for "woopies," or well-off older people. You research the market and make a recommendation to segment on the basis of some VALS information that you collected. You are about to use

Accepted Answer

Psychographic segmentation is the best choice because it divides customers into different groups based on their lifestyles, values, interests, and personalities, which are more likely to be relevant to this target audience of well-off older people, also known as woopies. VALS, a popular psychographic segmentation tool, can help identify which traits and characteristics are most important to this group and tailor the magazine's content, design, and messaging accordingly.

Question 12

The three fundamental positioning themes are

Accepted Answer

The three fundamental positioning themes are benefit, user, and competitive. These themes focus on the advantages a product or service offers, the target user or consumer segment, and how the offering compares to competitors in the market.

Question 13

Aligning the marketing mix to yield distinctive approval for the target segment is

Accepted Answer

Positioning involves aligning the marketing mix elements to create a distinct and valued place in the target market's mind, distinguishing the product or brand from competitors.

Question 14

Segmenting consumers on the basis of product usage means describing consumers as

Accepted Answer

Segmentation based on product usage can be done in various ways, such as categorizing consumers as nonusers vs. users, loyalists vs. switchers, or light, medium, and heavy users. Therefore, the correct choice is D, as all of these options represent ways of categorizing segments by usage.

Question 15

The American Pork Producers association is running a campaign with the position "Pork. The other white meat." This is an example of

Accepted Answer

This is an example of competitive positioning, as the campaign aims to position pork as an alternative to other "white meats" like chicken or turkey, directly competing for consumer preference within the meat category.

Question 16

When a company undergoes a repositioning, it depends on its advertising effort to

Accepted Answer

When a company undergoes a repositioning, one of the key goals is to communicate the new position to consumers. Advertising can help the company achieve this goal by effectively conveying the theme behind its repositioning to the target audience. This can help ensure that consumers understand and appreciate the new position, which can in turn drive sales and profitability in the long run. While the other options may also be important considerations when repositioning a company, they are not directly related to the role of advertising in this process.

Question 17

Benefit positioning often refers to the functional benefits the brand offers. What else can it refer to?

Accepted Answer

Benefit positioning can also refer to powerful emotional benefits that help differentiate a brand, especially in markets where functional benefits across competitors are similar. Emotional benefits can significantly influence consumer preference and loyalty.

Question 18

Segmentation used in selecting target markets that includes basic descriptors such as age, gender, and income is known as ____ segmentation.

Accepted Answer

Demographic segmentation divides the market based on characteristics such as age, gender, income, education, and other basic descriptors. This type of segmentation is useful because it enables companies to target specific groups based on their needs and preferences.

Question 19

A value proposition fosters the most effective IMC strategies because it

Accepted Answer

A value proposition provides a clear understanding of the target segment's needs and desires, and allows the client and agency to refer to specific functional, emotional, and self-expressive benefits in their IMC strategies. This helps in developing an effective messaging and communication strategy that resonates with the target audience. Articulating a distinctive personality for a brand, linking it with status or prestige, or identifying it with a social cause can be important elements of a value proposition but may not necessarily foster the most effective IMC strategies.

Question 20

Effective positioning is based on:

Accepted Answer

All of these statements are important for effective positioning. A meaningful commitment of organizational resources is necessary to ensure that the positioning strategy is well-executed and supported. The focus should be on providing substantive value to the target market, as this will help differentiate the organization from competitors and create strong customer relationships. The positioning strategy should also be simple and internally consistent over time to avoid confusing customers and diluting the brand message.

Quiz 4: Understanding the Marketing Environment: Segmentation, Targeting, and Positioning