MKTG Exam 3

1) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________.
A) concentrated marketing
B) mass marketing
C) market targeting
D) segmenting
E) differentiation
C
2) What are the four steps, in order, to designing a customer-driven marketing strategy?
A) market segmentation, differentiation, positioning, and targeting
B) positioning, market segmentation, mass marketing, and targeting
C) market segmentation, targeting, differentiation, and positioning
D) market alignment, market segmentation, differentiation, and market positioning
E) market recognition, market preference, market targeting, and market insistence
C
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.
A) efficiently
B) effectively
C) intensely
D) indirectly
E) both A and B
E
4) Even though several options are available at any one time, there ________ to segment a market.
A) is one single best way
B) is no single way
C) is a most effective way
D) are limited ways
E) are four ways
B
5) Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be ________ segmentation.
A) geographic
B) benefit
C) end-use
D) customer
E) image
A
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?
A) geographic
B) behavioral
C) lifestyle
D) demographic
E) psychographic
D
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?
A) demographic
B) lifestyle
C) psychographic
D) behavioral
E) geographic
A
8) Demographic variables are so frequently used in market segmentation because they ________.
A) create smaller segments
B) create more easily reached segments
C) do not involve stereotypes
D) are easy to measure
E) involve fewer attributes to consider
D
9) When Burger King targets children, teens, adults, and seniors with different ads and media, it is practicing ________ segmentation.
A) geographic
B) age and life cycle
C) psychographic
D) behavioral
E) usage rate
B
10) Marketers must be careful to guard against ________ when using age and life cycle segmentation.
A) underestimating
B) stereotyping
C) traditional marketing
D) cultural bias
E) gender bias
B
11) When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely primarily using which type of segmentation?
A) age and life cycle
B) gender
C) behavior
D) psychographic
E) geographic
B
12) Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation?
A) gender
B) income
C) occasion
D) usage rate
E) benefits sought
B
13) The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation.
A) behavioral
B) psychographic
C) age and life cycle
D) demographic
E) geographic
A
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?
A) demographic
B) psychographic
C) occasion
D) impulse
E) emergency
C
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 ________.
A) user status
B) usage rate
C) benefit
D) behavior
E) loyalty status
A
16) Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ________.
A) user status
B) loyalty status
C) store type
D) brand preference
E) usage rate
B
17) By studying its less loyal buyers, a company can detect which brands are most ________ with its own.
A) competitive
B) used
C) often overlooked
D) similar
E) complementary
A
18) Many firms make an effort to identify smaller, better-defined target groups by using ________.
A) user rates
B) loyalty segmentation
C) multiple segmentation bases
D) positioning
E) mass marketing
C
20) As in consumer segmentation, many marketers believe that ________ and ________ segmentation provide the best basis for segmenting business markets.
A) geographic; demographic
B) user status; user loyalty
C) benefits; buying behavior
D) age and life-cycle; psychographic
E) income; usage rate
C
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 ________.
A) intermarket segmentation
B) loyalty segmentation
C) life-cycle segmentation
D) targeting segmentation
E) psychographic segmentation
A
23) When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________.
A) measurable
B) accessible
C) substantial
D) actionable
E) observable
A
24) When a market segment is large or profitable enough to serve, it is termed ________.
A) measurable
B) accessible
C) substantial
D) actionable
E) differentiable
C
25) When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________.
A) accessible
B) measurable
C) reachable
D) actionable
E) differentiable
D
26) The market segments your company is targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. Therefore, these segments are ________.
A) accessible
B) measurable
C) reachable
D) differentiable
E) observable
D
27) To evaluate the different market segments your company is serving, you would look at all of the following factors EXCEPT which one?
A) segment size
B) segment growth
C) segment structural attractiveness
D) company culture
E) company resources
D
28) Barney Hopkins has compiled a list of things that make segments more attractive. Which of the following items should NOT be on the list?
A) relative power of buyers
B) lack of powerful suppliers to control prices
C) few substitute products
D) competition with superior resources
E) financial resources
D
29) Which of the following is NOT one of the reasons a segment would be less attractive to a company?
A) strong competitors
B) substitute products
C) concentrated market
D) power of buyers
E) power of suppliers
D
30) In general, a company should enter only segments in which it can ________ and ________.
A) offer lower prices; ship faster
B) offer superior value; gain advantages over competitors
C) offer superior value; ship faster
D) gain advantages over competitors; offer new products
E) identify behaviors; understand spending power
B
31) 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) ________.
A) market segment
B) target market
C) well-defined market
D) differentiated market
E) undifferentiated market
B
32) 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?
A) undifferentiated marketing
B) differentiated marketing
C) target marketing
D) concentrated marketing
E) micromarketing
A
33) When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing.
A) undifferentiated
B) differentiated
C) individual
D) mass
E) niche
B
34) Typically, developing a strong position within several market segments creates more total sales than ________ marketing across all segments.
A) undifferentiated
B) differentiated
C) niche
D) target
E) individual
A
35) ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________ against ________ when selecting this strategy.
A) extra research; costs
B) sales analysis; sales
C) increased sales; increased costs
D) geographic segmentation; demographic segmentation
E) attitudes; perceptions