Question 1

A new health food store is being built downtown Toronto.To build a solid customer base,they are asking consumers to discuss online important issues about healthy living and health food.Which segment will be likely purchasers of products from the new store?

Accepted Answer

Online/Real time are likely purchasers of products from the new store because they are actively engaged in online discussions about healthy living and health food.

Question 2

Which of the following is an example of a single product with multiple market segments?

Accepted Answer

Johnson's Baby Oil is marketed to different segments: as a skin softener for babies and as a makeup remover for women, using the same product for different market needs.

Question 3

When compared to a multiple-products-multiple-market segments strategy,a one-product-and-multiple-market-segment strategy:

Accepted Answer

A one-product-and-multiple-market-segment strategy allows a company to produce a single product in larger quantities, leading to economies of scale and cost savings in manufacturing.

Question 4

Kellogg's different types of cereals,each targeted at a different type of user,are an example of multiple products aimed at multiple markets.Manufacturing these different cereals is clearly more expensive than producing one,but seems worthwhile if it serves customers' needs better,doesn't reduce quality or increase price,and:

Accepted Answer

The statement suggests that manufacturing multiple products serves customers' needs better without reducing quality or increasing price. Therefore, the only logical choice is D - adding to the manufacturer's sales revenues and profits.

Question 5

Individual movies,magazines,and books are frequently directed to two or more distinct market segments.This is an example of:

Accepted Answer

When a single product is directed towards multiple market segments, it's called one product and multiple market segments. In this case, movies, magazines, and books are the product and they are directed towards two or more distinct market segments. Mass customization refers to the process of delivering customized products or services to meet the specific needs of individual customers, whereas mass marketing refers to the practice of targeting a large, homogeneous audience with one product or service.

Question 6

According to Zinc Research,all of the below are segments of Canadian social media users,except:

Accepted Answer

The answer of According to Zinc Research,all of the below...

Question 7

Which social media segment is likely to purchase Herbal Essences Mango Mania hair conditioner?

Accepted Answer

Chat, Chill, Connect segment is likely to purchase Herbal Essences Mango Mania hair conditioner as they are more likely to prioritize personal care and grooming products that make them feel good about themselves, and are more likely to experiment with new and trendy products.

Question 8

Firms offer different variations of the same basic product or service to both,high-end and low-end segments.Gap's Banana Republic chain sells blue jeans for $58,whereas its Old Navy stores sell a slightly different version for $22.This is an example of:

Accepted Answer

This is an example of a two-tier marketing strategy, where the same basic product is offered to both high-end and low-end segments at different price points. The slight variation in the product justifies the price difference. This helps the company capture a larger market share by catering to customers with varying purchasing power.

Question 9

One advantage of a market-product grid is that it can be used to:

Accepted Answer

A market-product grid relates likely sales of products to prospective market segments, allowing companies to determine which target markets are most profitable and allocate resources accordingly. This helps in identifying opportunities for growth and making more informed decisions about product development and marketing strategies. While it may indirectly aid in making optimal decisions under uncertainty and screening product ideas, these are not the primary functions of the grid. It is also not used for selecting consumer samples for research studies.

Question 10

Which two aspects does a market-product grid relate?

Accepted Answer

A market-product grid relates the segments (or groups) of a market to the different products offered by a firm or potential marketing actions that could be taken by the firm to better serve those segments. It is a tool used to identify and evaluate different marketing strategies and opportunities. It helps firms to determine which products or services to offer to which segments of the market, and how to tailor their marketing efforts to better reach and communicate with those segments. The grid also helps companies to assess their current market position and identify areas where they could potentially expand or improve their offerings.

Question 11

A business firm segments its markets when this strategy increases its sales revenue,profit,and ROI.When its increases in expenses more than offset the potentially increased revenues from segmentation,it should:

Accepted Answer

If the increased expenses from segmentation outweigh the potential revenue, the best option would be to not attempt further segmentation. Continuing to invest in segmentation would not be cost-effective and could potentially harm the company's profitability.

Question 12

Market segmentation is only a means to an end.In economist's terms,market segmentation relates supply (the organization's actions)to demand (_____).

Accepted Answer

Market segmentation is a way to understand the different needs and preferences of customers, which helps organizations tailor their actions to better meet these demands. Therefore, the missing part of the sentence would be "customer needs." Tactical goals and strategic objectives may be influenced by market segmentation, but they are not the ultimate goal of the process. Government regulations may also play a role in market segmentation, but they are not directly related to the interaction between supply and demand.

Question 13

Heinz Ketchup sells their traditional 'Red Ketchup' product in three market segments.One of the advantages of this strategy is _____________ is avoided.

Accepted Answer

By only offering one version of their product, Heinz Ketchup can avoid the extra costs associated with developing and producing additional versions of the product. This streamlined approach can also help with production and logistics.

Question 14

The segment 'social media followers' are more likely to purchase which product?

Accepted Answer

"President's Choice" is a well-known brand in Canada and has a strong reputation for quality products. Social media followers are likely to trust and follow popular brands, making them more inclined to purchase "President's Choice" tomato sauce compared to the other options.

Question 15

What is the most likely way for consumers to benefit because a firm uses a strategy of one product for multiple market segments?

Accepted Answer

When a firm uses a strategy of one product for multiple market segments, it can achieve economies of scale, leading to lower production costs, which can result in lower retail prices for consumers.

Question 16

After launching a brand new,high-end road bicycle to a specific segment interested in road races and triathlons,the company needs to determine whether they properly segmented their market.Which of the below results is likely indicative of success?

Accepted Answer

Increased sales and profitability would indicate that the target segment is interested in and willing to purchase the high-end road bicycle, which would suggest successful segmentation. Increased customer inquiries without purchases, increased competition, or increased confusion from prospective buyers may indicate that the segmentation was not successful or that the marketing strategy needs to be adjusted.

Question 17

At a board meeting,the Chief Marketing Officer for Procter & Gamble provides a graphical figure that relates market segments to products offered.This graphical figure is likely a(n):

Accepted Answer

A market-product grid is a graphical figure that helps companies map out their product offerings to various market segments. It is a tool commonly used in strategic marketing planning and can help companies identify areas for growth or diversification. It is likely that the Chief Marketing Officer for Procter & Gamble presented this tool at the board meeting to help the board members better understand the company's current product offerings and potential areas for expansion.

Question 18

Small athletic shoe manufacturers such as Vans and New Balance have targeted niche markets and made shoes designed to satisfy needs of different customers.This strategy is an example of:

Accepted Answer

The strategy of targeting specific niche markets and designing shoes to satisfy their needs is an example of market segmentation. This involves dividing a larger market into smaller groups with similar needs or characteristics and then targeting them with tailored marketing efforts. Mass customization (A) involves creating personalized products for individual customers, while MSA and NAICS (B) are classification systems used to categorize businesses by industry. Synergy (D) involves the combination of two or more things to create a greater effect. None of these options accurately describe the strategy being used by Vans and New Balance.

Question 19

Marketers use market segmentation to each of the following EXCEPT:

Accepted Answer

Market segmentation is not used to exploit economies of scale in order to focus on mass production. It is focused on identifying specific groups of customers with similar needs or characteristics and developing targeted marketing strategies to meet those needs.

Question 20

Verve creates high-end personalized iPhone cases that use diamonds,gold,and platinum that appeal to very wealthy individuals.Which is their likely segment strategy?

Accepted Answer

Verve's use of high-end materials and personalized design suggests that they are likely employing a mass customization strategy. They are targeting a specific niche market of wealthy individuals who want luxurious and personalized smartphone accessories, rather than trying to appeal to a broader mass market.

Quiz 9: Market Segmentation, Targeting, and Positioning