Question 1

A chocolate bar manufacturer sells a range of chocolate bars and lollies in supermarkets and discount stores under the brand name 'Budget Sweeties' with no product priced over $2.

Accepted Answer

The company is using a differentiated targeting strategy by offering a range of chocolate bars and lollies under the brand name 'Budget Sweeties' while ensuring that no product is priced over $2. This indicates that they are targeting multiple segments of customers who are looking for affordable but good quality sweets.

Question 2

The first step in developing a positioning strategy is to ________.

Accepted Answer

The first step in developing a positioning strategy is to analyze the competitors' position in the marketplace. Before a company can position its product or service, it needs to have a clear understanding of what its competitors are offering and how they are positioning themselves in the market. This analysis will help the company identify opportunities to differentiate itself and carve out a unique position in the market. Creating a product with a competitive advantage, identifying segmentation variables, creating target markets, and setting the marketing communications budget are all important steps in developing a marketing strategy, but they come after analyzing the competition.

Question 3

When brands are well known and have distinctive images and consumer groups have distinct product needs,adopting a concentrated target marketing strategy is most appropriate.

Accepted Answer

The answer of When brands are well known and have...

Question 4

Modifying a product's position in response to marketplace changes is called ________.

Accepted Answer

Repositioning refers to changing a product's position in the marketplace in response to changes in the competitive landscape or other environmental factors. This can involve re-segmentation, differentiation, or regrouping of attributes, but its ultimate goal is to modify how the product is perceived by consumers relative to the competition.

Question 5

Fisher & Paykel,the household appliance manufacturer,offers customers the option of adding coloured panels to its 'Elite' range of refrigerators,stoves and dishwashers to allow matching with consumers' kitchen décor.

Accepted Answer

The answer of Fisher & Paykel,the household appliance manufacturer,offers customers...

Question 6

A company that develops one or more products for each of several customer groups with different product needs is using a/n ________ targeting strategy.

Accepted Answer

A differentiated targeting strategy involves developing different products for different customer groups with different needs. This is in contrast to an undifferentiated strategy, which targets the entire market with a single product, and a concentrated strategy, which targets a single customer group with a single product. A fragmented strategy may involve developing many different products for many different customer groups, but it is not necessarily targeted at specific customer needs. A customized strategy may involve tailoring products for individual customers, but it is not necessarily targeted at specific customer groups.

Question 7

With mass customisation,a basic good is modified to meet the needs of individual customers.

Accepted Answer

Mass customisation allows for the modification of a basic good to meet the specific preferences and needs of individual customers. This approach allows for a more personalised and tailored experience for consumers, which can increase satisfaction and loyalty.

Question 8

Concentrated target marketing strategies are the same as customised marketing strategies.

Accepted Answer

Concentrated target marketing focuses on a single market segment, while customized marketing tailors products or messages to individual customer preferences.

Question 9

With a ________ marketing strategy,products and the messages about them are tailored to the individual customer.

Accepted Answer

A customised marketing strategy involves creating personalized messages and product offerings for individual customers. This approach requires collecting data on customer preferences and behaviors to create a unique experience for each customer. The other options, such as differentiated and concentrated, involve targeting specific customer segments, but not necessarily tailoring messages and products to each individual customer.

Question 10

You work for a company that manufactures surfboards.How would the products it offers,prices it charges,distribution strategy it pursues and promotional campaigns it uses differ if it chooses an undifferentiated,differentiated,concentrated or customised targeting strategy?

Accepted Answer

The answer of You work for a company that manufactures...

Question 11

A company would adopt an undifferentiated targeting strategy when there is so much evidence of the benefits of a differentiated strategy in order ________.

Accepted Answer

An undifferentiated targeting strategy focuses on reaching the entire market with one standardized product or message. This can lead to cost savings through economies of scale, as the company only needs to produce and market one product. However, this strategy may not be as effective in meeting the diverse needs and preferences of different customer segments, which can be better addressed through a differentiated targeting strategy. The other options presented in the question do not directly relate to the choice of targeting strategy.

Question 12

Bob loves ferrets,the furry animals,so much that he decides to start an online business offering only ferret accessories (leashes,clothing,etc.

Accepted Answer

Bob is targeting a specific niche market of ferret owners, therefore he is using a concentrated marketing strategy.

Question 13

A company that offers one or more products to a single segment is using a/n ________ targeting strategy.

Accepted Answer

A concentrated targeting strategy involves offering products to a single, specific segment. This strategy allows the company to focus its resources and efforts on meeting the specific needs and preferences of that segment, which can lead to a better understanding and relationship with the customers. It is also useful when the market is too small to justify the investment necessary for a broader strategy.

Question 14

The cosmetics giant L'Oreal has the resources to offer several product lines at a variety of prices.It targets the luxury market with their brand Helena Rubinstein,while less expensive offerings such as Elseve is targeted to large department stores and discounters.What targeting strategy are they pursuing?

Accepted Answer

The answer of The cosmetics giant L'Oreal has the resources...

Question 15

A company that uses a/n ________ targeting strategy is appealing to a broad spectrum of people.

Accepted Answer

An undifferentiated targeting strategy, also known as a mass marketing or shotgun approach, involves targeting the entire market with a single product offer, without considering individual market segments. This type of strategy is suitable for companies offering products or services that have universal appeal, or for those with limited resources to segment and target the market.

Question 16

With an undifferentiated marketing strategy,one product is developed for each distinct customer group.

Accepted Answer

Undifferentiated marketing strategy, also known as mass marketing strategy, involves developing a single product and marketing it to the entire market without any segmentation. Therefore, one product is developed for all customer groups, rather than each distinct group having its own unique product.

Question 17

________ means developing a marketing strategy aimed at influencing how a particular market segment perceives a good or service in comparison to the competition.

Accepted Answer

Positioning refers to developing a marketing strategy aimed at influencing how a particular market segment perceives a good or service in comparison to the competition. It is about creating a unique and favorable image of the brand in the minds of the target audience.

Question 18

Why would a company adopt a differentiated targeting strategy when there are economies of scale benefits with an undifferentiated strategy?

Accepted Answer

A differentiated targeting strategy allows a company to target different segments of the market with different products and marketing messages. This can be beneficial when there are economies of scale benefits with an undifferentiated strategy, as it allows the company to capture a larger share of the market by appealing to a wider range of consumers.

Question 19

The second step in developing a positioning strategy is to ________.

Accepted Answer

The answer of The second step in developing a positioning...

Question 20

Explain mass customisation and how Dell,the computer company,uses it to meet the needs of its customers.

Accepted Answer

The answer of Explain mass customisation and how Dell,the computer...

Quiz 7: Sharpening the Focus: Target Marketing Strategies and Customer Relationship Management