Question 1

Sanguine Services practices a marketing strategy where its limited resources are used to go after a large share of two small niches.Sanguine practices which one of these strategies?

Accepted Answer

Sanguine Services is practicing a concentrated marketing strategy where it is targeting two small niches with its limited resources. This strategy allows the company to fully concentrate its efforts and resources on a specific target market, increasing the chances of success and profitability.

Question 2

When a company identifies the parts of the market it can serve best based on common needs or characteristics the company decided to pursue,it is practicing ________.

Accepted Answer

Market targeting is the practice of identifying the parts of the market that a company can serve best based on common needs or characteristics and then pursuing those segments. Concentrated marketing and differentiation are strategies used within market targeting, but do not fully capture the concept on their own. Mass marketing is the opposite of market targeting, as it involves reaching the entire market with one product or message. Segmenting is a step in the process of market targeting, but is not the complete strategy.

Question 3

A major food retailer stocks the same brand of chicken throughout all its Australian stores in an effort to achieve economies through bulk purchasing.However,in the regional Victorian centre of Ballarat,the store manager has noticed that local consumers have a strong preference for the local 'Country Chicken' brand.Sales of fresh chicken in the Ballarat store are well below national averages and the manager fears that this may be having a detrimental effect on overall store traffic.He is planning to recommend that Head Office vary its store policy by allowing him to source chickens locally rather than from central stores.Which of the following is the store manager considering?

Accepted Answer

The store manager is considering sourcing chickens locally in order to cater to the local preference for 'Country Chicken' brand. This is an example of local marketing, which involves tailoring the marketing mix to meet the unique needs and preferences of local customers.

Question 4

Mass marketers,such as Target and K-Mart Stores,often ignore market segment differences and target the whole market with one offer.What is their approach to segmenting?

Accepted Answer

This approach involves ignoring market segment differences and treating the whole market as a single segment with one marketing mix. Mass marketers such as Target and K-Mart Stores typically use this approach to appeal to a broad range of customers and maximize their reach and efficiency.

Question 5

When New Port Shipping uses segmented marketing,it targets several segments and designs separate offers for each one.This approach is called ________ marketing.

Accepted Answer

New Port Shipping is targeting several segments, and designing separate offers for each one, which fits the definition of differentiated marketing. In undifferentiated marketing (A), a company targets the entire market with a single offer. Individual marketing (C) involves customizing products for each individual customer, which is not feasible for New Port Shipping. Mass marketing (D) also refers to the targeting of the entire market with a single offer, like undifferentiated marketing. Niche marketing (E) involves targeting a small, specific segment of the market, which is different from New Port Shipping's strategy of targeting multiple segments.

Question 6

In general,a company should enter only segments in which it can ________ .

Accepted Answer

A company should enter segments where it can offer superior customer value, as this ensures that the company can meet customer needs effectively and differentiate itself from competitors.

Question 7

The iconic Australian spread Vegemite has used the slogan 'Puts a rose in every cheek' for many years.Which of the following strategies does this slogan most likely support?

Accepted Answer

The slogan 'Puts a rose in every cheek' suggests that Vegemite is targeting a mass market or undifferentiated marketing strategy rather than focusing on a specific segment of the market. The slogan implies that anyone can enjoy Vegemite and it will make them feel better, regardless of their demographic or psychographic characteristics.

Question 8

White King mass-produces an all-purpose floor cleaner,mass-distributes it and mass-promotes it.This firm uses ________ marketing.

Accepted Answer

White King is using undifferentiated marketing because they are mass-producing and mass-distributing their product to appeal to the masses, without targeting any specific segments or groups.

Question 9

Typically,developing a strong position within a few or several market segments creates more total sales than ________ marketing across all segments.

Accepted Answer

Undifferentiated marketing targets the entire market with one offer, which is less effective than focusing on specific segments with tailored strategies.

Question 10

Unilever sells six brands of laundry detergent,each designed for one of six laundry segments Unilever has identified.Together,these six brands take four times the market share of the company's closest rival.Which of the following is a disadvantage of Unilever's differentiated marketing strategy?

Accepted Answer

Differentiated marketing strategy requires separate marketing plans and resources for each brand, which can increase costs for the company. However, it also allows the company to cater to specific needs of each segment and gain a larger market share. The other options do not necessarily apply to Unilever's scenario as they are not mentioned in the given information.

Question 11

Which of the following is NOT one of the reasons a segment would be less attractive to a company?

Accepted Answer

A concentrated market, implying a market dominated by a few large players, can actually make a segment more attractive if a company can secure a strong position within it. The other options (strong competitors, substitute products, power of buyers, and power of suppliers) all present challenges that can make a segment less attractive.

Question 12

ByTheWay Ventures chose a differentiated marketing strategy.The company had to weigh ________ against ________ when selecting this strategy.

Accepted Answer

By choosing a differentiated marketing strategy, ByTheWay Ventures aims to increase sales and strengthen its position in the market. However, this comes at the cost of increased marketing and production costs, which the company had to consider when selecting this strategy. Therefore, the best option is C.

Question 13

BMW has compiled a list of things that make segments more attractive.Which of the following items should NOT be on the list?

Accepted Answer

Competition with superior resources would make a segment less attractive, as it would be difficult to compete and gain market share. The other items listed would make a segment more attractive, as they would provide opportunities for profitability and market control.

Question 14

To evaluate the different market segments your company is serving,you would look at all of the following factors EXCEPT which one?

Accepted Answer

Company culture is not a relevant factor to evaluate different market segments. The other factors (segment size, segment growth, segment structural attractiveness, and company resources) are all important in determining which market segments a company should focus on.

Question 15

The Accor Hotel Group operates a number of hotel brands,each positioned at a different segment of the market.The luxury international hotel group trades as Sofitel;the mid-price,three-star hotel group trades as Novotel;budget-priced,two-star hotels trade as Ibis;the budget-priced,limited-service hotel group trades as Formula One;and finally an extended-stay hotel chain aimed primarily at the elderly trades as Hotelia.The Accor group is using which approach to segmentation?

Accepted Answer

The Accor Hotel Group is using a differentiated approach to segmentation because they have multiple hotel brands positioned at different segments of the market. Each brand caters to a specific target market and has its own marketing mix, such as pricing, promotion, and location. This allows them to appeal to a wider range of customers with different needs and preferences.

Question 16

The over-55-year-old baby boomers share common needs with respect to entertainment,music and performers.When a music company decides to serve this group,the group is called a(n)________.

Accepted Answer

The group of over-55-year-old baby boomers is a clearly defined market segment that shares common needs with respect to entertainment, music, and performers. A market segment is a group of individuals or organizations within a larger market that share one or more common characteristics, needs, or preferences and that are identified as a target market for a particular product or service. Therefore, the best choice is B, target market.

Question 17

Colorlab has picked up on a recent trend in the cosmetics industry which allows women the opportunity to have lipsticks,blushers and other cosmetics manufactured in custom-blended colours designed to match a dress or simply to provide a perfect blend with skin tone or hair colour.When Colorlab produces a lipstick to match a swatch of fabric provided by the customer,the company is engaging in ________.

Accepted Answer

Mass customisation refers to the production of goods and services that are customized to meet the specific needs and preferences of individual customers. In this case, Colorlab is manufacturing cosmetics in custom-blended colors to match the customer's preferences or requirements. Therefore, manufacturing a lipstick to match a swatch of fabric provided by the customer is an example of mass customisation. Micromarketing, local marketing, tight targeting, and behavioural segmentation are not relevant to this scenario.

Question 18

Which of the following is the most logical reason for Unilever offering products that compete with one another on the same supermarket shelves?

Accepted Answer

Different consumers have different preferences and needs for the products they buy. By offering multiple varieties of products under the same brand, Unilever can attract a wider range of customers with different preferences. This allows Unilever to capture a larger market share and increase its revenue.

Question 19

A family owns and operates two retail stores,one in Newtown and one in Oldtown.Although the towns are only 40 miles apart,the consumers at both stores are very different demographically.The owners alter the product offerings between both locations in an effort to cater to both demographic groups.This is an example of ________.

Accepted Answer

This scenario is an example of both local marketing and micromarketing, as the family business tailors its product offerings to meet the specific needs and preferences of the local consumer demographics in Newtown and Oldtown.

Question 20

A marketer focuses on several commonalities among all consumers.This marketer appears to be engaging in ________.

Accepted Answer

Undifferentiated marketing, also known as mass marketing, involves targeting the entire market with one marketing mix, assuming that all consumers have similar needs and preferences. By focusing on commonalities among all consumers, the marketer is engaging in undifferentiated marketing.

Quiz 6: Customer-Driven Marketing Strategy: Creating Value for Target Customers