The University of Oklahoma

MKT 3013

Chapter 7:

1)When a company identifies the parts of the market it can serve best and most profitably, it is practicing    .

2. What are the four steps, in order, to designing a customer-driven marketing strategy?

3. Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more     with products and services that match their unique needs

4. Even though several options are available at any one time, there          to segment a market.

5. Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be     segmentation

6. Pendergraff Pet Supplies divides the pet market according to the owners' race, occupation, income, and family life cycle. What type of segmentation does Pendergraff use?

7. Through talking to numerous competitors at a regional trade show, you learn that most of them use the most popular base for segmenting markets. What is it?

8. Demographic variables are so frequently used in market segmentation because they  .
9. Marketers must be most careful to guard against which of the following when using age and life cycle segmentation?

10. When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely using which type of segmentation?

11. Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation?

12. The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is

              segmentation.

13. Many marketers believe that which of the following variables are the best starting point for building marketing segments?

14. Which type of segmentation centers on the use of the word when, such as when consumers get the idea to buy,

when they actually make their purchase, or when they use the purchased item?

15. Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called .

16. Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by         .

17. By studying its less loyal buyers, a company can detect which brands are most           its own.

18. Many firms make an effort to identify smaller, better-defined target groups by using     .

19. Consumer and business marketers use many of the same variables to segment markets. Business marketers use all of the following EXCEPT   .

20. As in consumer segmentation, many marketers believe that                and      segmentation provide the best basis for segmenting business markets.

21. International Drilling Company segments its foreign markets by their overall level of economic development. This firm segments on what basis?

22. Lexus targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of           .

23. When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being  .

24. When a business market segment is large or profitable enough to serve, it is termed     .

25. When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as .

26. You have discovered that the segments you are targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. These segments are      .

27. To evaluate the different market segments your company serves, you would look at all of these factors EXCEPT which one?

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

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

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

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

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

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

34. Developing a strong position within several segments creates more total sales than  marketing across all segments.

35. ByWay Ventures chose a differentiated marketing strategy. The company had to weigh        against

              when selecting this strategy.

36. Procter & Gamble sells six brands of laundry detergent in the United States, each designed for one of six laundry segments Procter & Gamble has identified. Together, these six brands take 62% of market share. Which of the following is a disadvantage of Procter & Gamble's differentiated marketing strategy?

37. Successful niche marketing relies on a firm's and its             .

38. Using concentrated marketing, the marketer goes after a                     share of     .

39. Niche marketing offers smaller companies the opportunity to compete by focusing their limited resources on serving niches that may be   or           larger companies.

40. Today, the low cost of setting up shop    makes it even more profitable to serve very small niches.

41. Which of the segmenting strategies carries higher-than-average risks in consumer markets?

42. As You Like It, Inc., customizes its offers to each individual consumer. This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as     marketing.

43.               tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores.

44. Which of the following is the narrowest marketing strategy?

45. Which of the following is NOT a drawback of local marketing?

46. Under what circumstances can local marketing be quite effective?

47. When Wal-Mart customizes its merchandise store by store to meet shopper needs, it is practicing   .

48. When a company interacts one-on-one with large numbers of customers to create customer-unique value by designing products and services tailor-made to individual needs, it is following  .

49. The move toward individual marketing mirrors the trend in consumer       .
50. When choosing a target marketing strategy, many factors need to be considered. Which of the following does your text NOT mention as important?

51. When competitors use differentiated or concentrated marketing,       marketing can be disastrous.

52. Target marketing sometimes generates controversy and concern. Issues usually involve the targeting of

              consumers with          products.

53. It is considered socially irresponsible when the marketing of adult products spills over into the        segment.

54. Cigarette, beer, and fast-food marketers have generated much controversy in recent years by their attempts to target     .

55. Most attempts to target children and minority groups provide to target customers.

56. In target marketing, the issue is not really who is targeted, but rather                 and for     .

57. Which group determines a product's position relative to competing products?

58. A product's position is based on important attributes as perceived by  .

59. Consumers position products and services   .
60. Which of the listed choices is NOT a positioning task?

61. A company or store gains a(n)      by differentiating its products and delivering more value.

62. A company or market offer can be differentiated along the lines of product, image, services, channels, or

             .

63. Which type of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance?

64. When firms use symbols, colors, or characters to convey their personalities, they are using        differentiation.

65. Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to it. What does USP stand for?

66. A brand difference is worth establishing and promoting to the extent that it satisfies all of the criteria below EXCEPT which one?

67. You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand is differentiated and positioned. This full positioning of the brand is called .

68. The answer to the customer's question "Why should I buy your brand?" is found in the     .

69. What competitive positioning can attack a more-for-more strategy by introducing a brand offering with comparable quality at a lower price?

70. Which positioning strategy offers consumers a "good deal" by offering equivalent-quality products or services at a lower price?

71. "Less-for-much-less" positioning involves meeting consumers' .

72. Few people can afford the best in everything they buy. At times everyone needs a product with less quality or performance with a correspondingly lower price. In this case a consumer would purchase a product positioned with a      strategy.

73. Which difficult-to-sustain positioning strategy attempts to deliver the "best-of-both"?

74. Which type of statement first states the product's membership in a category and then shows its point-of- difference from other members of the category?

75. What is the following an example of? "To busy, mobile professionals who need to always be in the loop, BlackBerry is a wireless connectivity solution that gives you an easier, more reliable way to stay connected to data, people, and resources while on the go."

76. When marketers at Procter & Gamble selected the Millennials, a demographic that includes college students, as an untapped group of potential customers for their Febreze line of products, they were executing which step in the process of designing a customer-driven marketing strategy?

77. When Pacific Fisheries groups its customers as countries by regions such as Asia, Australia, or New Zealand, it is using which segmenting base?

78. When Burger King targets children, teens, adults, and seniors with different ads and media, it is practicing

              segmentation.

79. Which of the following statements illustrates why stereotypes should be avoided when using age and life cycle segmentation?

80. Segmenting voters as either democrats or republicans is an example of         .

81. At one time Miller Beer was known as the "champagne of bottled beer." Unfortunately, Miller drinkers did not drink much beer. To increase sales, Miller was repositioned to attract the members of the middle working class. This segmentation approach is   .

82. Your current assignment at York Foods is to find the major benefits people look for in product classes, the kinds of people who look for each benefit, and the major brands that deliver each benefit. What is this segmentation method called?

83. Shampoo marketers rate buyers as light, medium, or heavy product users. This is     segmentation.

84. MTV targets the world's teenagers, who have similar needs and buying behavior even though they are located in different countries. This is called segmentation.

85. The markets you have chosen to serve in four western states can be effectively reached and served. You would tell the marketing manager that these segments are    .

86. Jolene Enterprises mass produces an all-purpose floor cleaner, mass distributes it and mass promotes it. This firm uses    marketing.

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

             .

88. Which of the following is the most logical reason for Procter & Gamble offering products that compete with one another on the same supermarket shelves?

89. 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?

90. Bob and Phyllis Cords own two retail stores, one in Pottstown and one in Norristown. Though the towns are only 40 miles apart, the consumers at both stores are very different demographically. Bob and Phyllis alter the product offerings between both locations in an effort to cater to both demographic groups. This is an example of

             .

91. Jay Bee Promotions tailors its advertising and promotional services to the needs and preferences of individual customers. Which of the following terms does NOT apply to this type of marketing?

92. The Jay Group hires better employees than the competition by conducting lengthy searches and interviews. Management also trains employees much better than competitors do. The Jay Group has gained a strong competitive advantage through which type of differentiation?

93. Ford Motor Company emphasizes "Quality First?Ford Tough" in its truck products. In doing so, the company has developed a differentiation strategy based on          .

94. Cheap Heaps Auto specializes in lower quality vehicles, with a few dents, priced a great deal lower than other used cars. Cheap Heaps has chosen to position their products with a   strategy.

95. Neiman Marcus claims superior quality, performance, and style. The owners provide the most upscale products and services and charge a higher price to cover the higher costs. What type of positioning does Neiman Marcus use?

96. When it first opened for business, Home Depot claimed to offer better products at lower prices. This hard-to- sustain value proposition is called  .

97. Superior Auto Sales, a chain of high-end used car dealerships, wants to sum up its company positioning and brand positioning in a formal way. Superior's management would use a .

Refer to the scenario below to answer the following questions.

Herb Marks began making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent.

Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the writing utensils were a hit! Herb Marks had never thought of marketing his talent but Mel's enthusiasm and the recent sales were enough to change his mind.

With limited resources, Herb contacted three additional specialty shops within 100 miles. He explained his manufacturing processes and engraving options to each. All three shops' owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic!

"I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business."

Elmore Distributors provided products for school fundraisers in a seven-state area. Herb was offered a two- year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils.

"I had to get a grip on the magnitude of this project!" Herb added. "I couldn't grow out of control. I was already working to capacity."

Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers.

"At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full- time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes."

98. In the scenario, how does Herb segment his market?

99. In marketing his writing utensils to his four specialty-shop customers, Herb is using   marketing.

100. If Herb produced a variety of styles of pens and pencils with various wood types and engravings that he tailored specifically to each individual's order, he would be practicing      .

101. Today, most companies have moved back toward mass marketing and are being choosier about the customers with whom they wish to build relationships.

102. Your company wants to move away from mass marketing and engage in customer-driven marketing. The four steps to take, in order, are market segmentation, marketing positioning, differentiation, and targeting.

103. Bombay Gifts divides its markets into units of nations, regions, and cities. Bombay uses geographic segmentation.

104. Demographic segmentation uses different marketing approaches for different time periods of people's lives and different family situations.

105. Shopping for the Rich and Famous is a buying service that helps wealthy clients find the best buys in exclusive clothing, high-end cars, travel, and financial services. This firm most likely uses income segmentation.

106. Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

107. Your assignment at work is to divide buyers into different groups based on social class, lifestyle, and personality characteristics. After a planning session with the marketing and sales staff, you issue a memo to upper

management recommending psychographic segmentation. You are right on target.

108. LaGrange Florists segments markets into groups of nonusers, ex-users, potential users, first-time users, and regular users of its flowers and services. This firm uses usage rate as its segmentation approach.

109. Research about and planning for loyalty status as a segmentation approach is generally not useful or practical for most firms.

110. For simplicity's sake, most marketers generally limit their segmentation analysis to one or a few variables.

111. Clusters of marketable groups of customers with similar likes, dislikes, lifestyles, and purchase behaviors can be identified by multivariable segmentation systems that merge and analyze geographic, demographic, lifestyle, and behavioral data.

112. There are many exceptions to the geographic segmentation assumption that consumers in nations close to one another will have many common behaviors and traits.

113. Because there is such variation among the economies of countries around the world, it is not practical to segment international markets on the basis of economic factors.

114. In evaluating different market segments, a firm should look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources.

115. At a recent marketing seminar, the featured speaker stated that a target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. This is a correct definition.

116. Developing a stronger position within several segments creates more total sales than undifferentiated marketing across all segments.

117. Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies.

118. Because Cruise Ships International currently has limited financial and personnel resources, it should avoid concentrated or niche marketing until resources are again substantial.

119. Though the use of mass marketing has been widespread in the past 100 years, for centuries consumers were served as individuals as businesses practiced individual marketing.

120. Mass marketing is becoming a marketing principle for the 21st century.

121. When a company chooses a target marketing strategy, its choices are influenced by factors related to company resources, the degree of product variability, and the product's life-cycle stage.

122. A product's position is the way the product is defined by the retailers who sell it to target markets. It is how it is defined on important attributes?the place the product occupies in the retailers' minds relative to competing products.