Question 1

(p.255-256,Chapter case study)Coca-Cola introduced Coke Zero to increase sales without taking away from its existing product sales.Which of the following is NOT true about this effort?
A)Segmentation and targeting were of little use compared to developing special advertising.
B)The word "diet" was not used in promotion because the target segment of men did not react favorably to the "girly" connotations.
C)A special fantasy football game was created to promote the product to the targeted segment.
D)Although Coke has more than 400 products,sales to a carefully targeted segment can greatly increase total sales.
E)Although the market for cola is mature,Coke plans to adapt the current products and services to meet the needs of changing market climate using the segmentation ideas developed in the launch of Coke Zero.

Accepted Answer

This statement is not true. In fact, segmentation and targeting were important in the development and promotion of Coke Zero. The product was specifically targeted towards men who did not want to be associated with the "diet" category of products. Special advertising was developed to appeal to this segment, but segmentation and targeting were still crucial elements in the overall strategy.

Question 2

The STP process is made up of strategy,targeting and promotion.

Accepted Answer

The STP process stands for Segmentation, Targeting, and Positioning, not strategy, targeting, and promotion.

Question 3

When deciding how to promote his new medical oncology center,Dr.Jones decided that he did not need to throw a large grand opening reception.Instead,he promoted the center to the internal medicine doctors in the area,who were the doctors most likely to refer patients to the center.Dr.Jones was engaged in a concentrated targeting strategy.

Accepted Answer

Dr. Jones targeted a specific group of doctors who were most likely to refer patients to his medical oncology center, which is an example of a concentrated targeting strategy.

Question 4

Giant Food Stores in suburban Washington,D.C.,adjusts its ethnic food aisle offerings based on the ethnic groups living near each store.Giant Foods is using geodemographic segmentation.

Accepted Answer

Geodemographic segmentation is the practice of dividing a population based on a combination of geographic, demographic, and lifestyle factors, and Giant Food Stores is using this strategy by adjusting their offerings in the ethnic food aisle based on the ethnic groups living near each store.

Question 5

Segmentation,targeting and positioning:
A)are terms that can be used interchangeably in developing marketing plans.
B)are part of a firm's marketing strategy.
C)should be done simultaneously so synergies can help streamline the effort.
D)are part of the marketing plan but bear little direct relationship to the marketing mix.
E)All of these.

Accepted Answer

Segmentation, targeting, and positioning are essential components of a firm's marketing strategy. They involve identifying and dividing the market into different groups based on similar needs and characteristics, selecting one or more of these groups as the target market, and establishing a unique positioning in the minds of the target customers. These activities help firms to create a focused and effective marketing mix that resonates with the target customers and achieves the desired business objectives. While they can be done simultaneously, each step requires careful consideration and analysis to ensure a successful outcome.

Question 6

A complex product that is best described in writing will be difficult to explain to consumers who are unable to read.For this reason,a segment in which many consumers could not read would be considered unattractive because the consumers would not be responsive.

Accepted Answer

The answer of A complex product that is best described...

Question 7

NASCAR redirected its marketing efforts when a survey indicated that almost fifty percent of its fans were female.This is an example of psychographic segmentation.

Accepted Answer

This is an example of demographic segmentation, as it involves dividing the market based on gender, a demographic characteristic.

Question 8

Perceptual maps include positions of current brands as well as ideal points where a segment would want a product to be.

Accepted Answer

Perceptual maps display the positions of current brands as well as the ideal points where a segment would like a product to be positioned.

Question 9

A company that sells only multi-grain,low calorie bread should use an undifferentiated targeting strategy.

Accepted Answer

An undifferentiated targeting strategy would mean that the company is targeting all consumers with the same product. However, not all consumers may be interested in multi-grain, low calorie bread. Therefore, a differentiated targeting strategy would be more appropriate, where the company would target specific segments of consumers with tailored marketing and product offerings.

Question 10

A self-values map displays the position of products or brands in the consumer's mind.

Accepted Answer

The answer of A self-values map displays the position of...

Question 11

Automobile manufacturers do not manufacture cars specially designed for very tall people,as this segment is not substantial.

Accepted Answer

It is true that automobile manufacturers do not manufacture cars specially designed for very tall people as this segment is not substantial. Most car models are designed to accommodate a range of heights, and taller individuals may have to make adjustments or choose a larger vehicle to accommodate their proportions.

Question 12

The first step in the STP process is to establish a strategy.

Accepted Answer

The first step in the STP (Segmentation, Targeting, Positioning) process is indeed to establish a strategy. This strategy should include the overall goals and objectives of the marketing campaign, as well as a specific plan for how to segment the market, select target segments, and position the product or service to appeal to those segments.

Question 13

The Value and Lifestyle Survey (VALS)conducted by SRI Consulting Business Intelligence is a widely used tool for geographic segmentation.

Accepted Answer

VALS is primarily used for psychographic segmentation, which focuses on the values, attitudes, and lifestyles of consumers, rather than geographic segmentation.

Question 14

(p.255,Chapter case study)Coca-Cola launched Coke Zero to avoid cannibalizing current sales and to attract new customers in a segment they might not get with Diet Coke.

Accepted Answer

This statement is true. Coca-Cola launched Coke Zero as a way to appeal to a different segment of consumers than those who typically buy Diet Coke, and to avoid cannibalizing sales of existing products.

Question 15

Sally is in the new marketing department of a mid-sized lawn and garden company.She is working on the first marketing plan the firm has ever used.She has defined the mission and objectives,and she just finished a situation analysis for the firm.The next step is to:
A)develop an advertising plan to promote the upcoming sales.
B)find marketing interns or hire new staff to help with implementation.
C)create pro forma financial statements to complete the package.
D)identify and evaluate opportunities by conducting segmentation,targeting and positioning analysis.
E)use the Internet,catalogs and vendor information to draw up a list of new products.

Accepted Answer

After completing the situation analysis, the next step in the marketing planning process is to identify and evaluate opportunities, which is done through segmentation, targeting, and positioning analysis. This step is essential for determining the best target audience and positioning strategy for the company's products or services.

Question 16

Alex has found that both commercial and residential real estate buyers respond positively to his marketing communication message.Alex has identified ____________ that respond similarly to his marketing efforts.
A)mass customization consumers
B)geographic segments
C)market segments
D)self-concept customers
E)geodemographic segments

Accepted Answer

Alex has identified distinct groups of buyers (commercial and residential) who have similar responses to his marketing communication message. These distinct groups are known as market segments.

Question 17

For products like pencils and paperclips,marketers should probably use an undifferentiated targeting strategy.

Accepted Answer

Products like pencils and paperclips are highly standardized and do not differ significantly between customers. Hence, an undifferentiated targeting strategy, where the same marketing mix is used for all customers, is most suitable for these products.

Question 18

It would be logical for bathing suit marketers to use geographic segmentation.

Accepted Answer

Geographic segmentation divides a market based on geographic boundaries, such as regions, cities, or countries. Bathing suit marketers would benefit from using geographic segmentation to target specific regions known for warm weather, beaches, and pools, as opposed to colder regions with less outdoor water-related activities.

Question 19

When a marketer adjusts the marketing mix to give customers a clear,distinctive understanding of what the product does,the marketer is engaging in psychographic segmentation.

Accepted Answer

Psychographic segmentation is based on values, beliefs, personality, and lifestyle of the customers. Adjusting the marketing mix to give customers a clear understanding of the product's benefits and features is an example of product positioning or product differentiation.

Question 20

Positioning strategies generally focus either on how the product benefits the consumer or on how it is better than competitors' products.

Accepted Answer

Positioning strategies aim to communicate to the target audience how the product will benefit them or how it is unique and better than its competitors. These approaches help to create a distinct image of the product in the consumer's mind, setting it apart from other similar products.

Quiz 8: Segmentation, Targeting, and Positioning

(p.255-256,Chapter case study) Coca-Cola introduced Coke Zero to increase sales without taking away from its existing product sales.Which of the following is NOT true about this effort?