1. A complete product-market definition includes a four-part description comprising of all of the following except:
2. A firm’s ‘relevant market for finding opportunities’ should:
be bigger than the firm’s present product-market-but not so big that the firm couldn’t be an important competitor.
3. Behavioral (rather than demographic) segmenting dimensions include:
4. if a company plans to sell its products to a market segment consisting of “ongoing personalities,” this would NOT be good market segment primarily because of which of the following criteria?
5. The main difference between naming broad product-markets and market segmentation is:
naming involves breaking down markets, while segmentation involves aggregating customers with similar needs.
6. A combined target market approach:
may not satisfy customers as well as the multiple target market approach.
7. The segmenting step of the segmentation process:
looks for similarities in needs.
8. Watson’s Bakery found five different market segments among customers for its bakery goods. When developing a market-oriented strategy, the marketing manager used a _____ approach, putting two target markets together and developing a single marketing mix that would meet the needs of the new larger segment.
Combined target market
9. Marketing managers want market segments to have each of the following characteristics EXCEPT:
As numerous as possible.
10. Sanders Beverages, Inc., is targeting non-juice drinkers with a new line of healthy fruit juices. Identify the segmenting dimension most likely being used by Sanders Beverages.
11. Having segmented its broad product-market, Blue Chip, Inc. feels that three segments are similar enough that–together–they can be treated as one large target market and offered the same marketing mix. Blue Chip, Inc. is following the ______ approach.
Combined target market
12. A generic market:
might involve completion among skis, roller blades, bicycles, and ice skates.
13. Jazzy Tile Co. segmented its broad product-market and decided to aim at two different segments, offering each segment a different marketing mix. Jazzy Tile Co. is following the ______ approach.
Multiple target market
14. Tom and Sally Jones are preparing to purchase a new car. He currently has a Toyota Camry and she has a Honda Accord. They now have two children under age 5, so they plan to trade in Sally’s car to purchase a minivan. Sally and Tom decided on a Honda Odyssey because Sally is familiar with Hondas and thinks they are very reliable. In this purchase situation, Tom and Sally’s family life cycle stage is a ________ segmentation dimension, and the benefit Sally seeks (reliability) is a ____________ segmentation dimension.
15. Given its interest in the broad product-market for ‘ready-to-eat, health-conscious snack foods,’ which of the following should the GoodHealth Foods Co. do FIRST?
Segment the product-market to try to identify homogenous submarkets and select an attractive target market.
16. Market segmentation:
tries to identify homogenous submarkets within a product-market.
17. The combined target market approach:
tries to improve the general appeal of a firm’s basic marketing mix rather than tailor it to meet the strongly felt needs of some people.
18. Coorgs Coffee, Inc., has substantial market share in South America but seeks growth. Its managers want to expand into North America and target cities with populations of 50,000-99,999. Identify the segmenting dimension most probably being used by Coorgs Coffee.
19. Which of the following is the best example of a “product-market?”
The young adult exercise market
20. Regarding segmenting, as opposed to combining:
Segmenters try to satisfy consumers ‘very well’ instead of ‘pretty well’
21. When Hallmark stores offer a product line that includes everything you need to have a Spiderman theme birthday party, what is the primary segmenting dimension that Hallmark is using?
22. When deciding how far to carry the segmenting process,
profit should be the balancing point-determining how unique a marketing mix the firm can offer to some target market.
23. Saying that a “good” product-market segment should be substantial means
it should be large enough to be profitable.
24. Gina Williams wanted to start a decorating business. She identified several possible target markets, but decided to serve a market composed of recently married couples that owned their first home. Gina appears to be following:
A single target market approach.
25. A product-market is one in which
products that are close substitutes for each other compete for customers by trying to satisfy very similar needs.
26. Which of the following is a possible danger when using a combining approach to target marketing?
Competitors may do a better job appealing to submarkets.
27. A large firm with ample resources wants to minimize the risk of “inviting” competitors to “chip away” at its target market(s). It has segmented its broad product-market and identified several homogeneous submarkets–each of which is large enough to offer attractive sales and profit potential. Which of the following approaches should the firm use?
Multiple target market approach.
28. Strategy decisions pertaining to product features, packaging, product line assortment, and branding will be most affected by which target market dimension?
Behavioral needs and attitudes of consumers.
29. When major airlines target business travelers because they travel often and typically pay at least three times the price for a ticket as leisure travelers, these airlines are segmenting the market primarily on:
Rate of use
30. In a generic market
Sellers offer various, often diverse, ways of satisfying broadly similar needs.