SMS, 4e – Chapter 7

A target market is a market segment that a company directs marketing effort toward in order to attract potential customers to buy its products/services/ideas.

SMS, 4e – Chapter 7

1. True 2. False

A target market is a market segment that a company directs marketing effort toward in order to attract potential customers to buy its products/services/ideas.


1. True 2. False

The primary purpose of product positioning is to:


1. identify new target segments

2. determine consumer needs

3. evaluate opportunities in the marketplace

4. convey benefits of the product

The primary purpose of product positioning is to:


1. identify new target segments

2. determine consumer needs

3. evaluate opportunities in the marketplace

4. convey benefits of the product

Baby Boomers are described in a significant dichotomy by marketers. These two groups are:


1. married – not married

2. young – younger

3. younger – older

4. children – no children

Baby Boomers are described in a significant dichotomy by marketers. These two groups are:


1. married – not married

2. young – younger

3. younger – older

4. children – no children

If men tend to shop for suits alone, then it would be foolish to put _________ in an ad to motivate them to shop for this item.


1. other men shopping

2. their spouse or girlfriend

3. a woman sales clerk

4. a friend

If men tend to shop for suits alone, then it would be foolish to put _________ in an ad to motivate them to shop for this item.


1. other men shopping

2. their spouse or girlfriend

3. a woman sales clerk

4. a friend

Marketing segmentation is a strategy for dividing a market into similar need groups and meeting these needs with unique and differentiable marketing

efforts.


1. True 2. False

Marketing segmentation is a strategy for dividing a market into similar need groups and meeting these needs with unique and differentiable marketing

efforts.


1. True 2. False

Segmented marketing requires targeting products to the specific needs

of well-defined customer groups.


1. True 2. False

Segmented marketing requires targeting products to the specific needs

of well-defined customer groups.


1. True 2. False

The two main reasons for segmenting by brand is to target actual purchasers

and to identify prospective purchasers.


1. True 2. False

The two main reasons for segmenting by brand is to target actual purchasers

and to identify prospective purchasers.


1. True 2. False

VALS segmentation groups consumers

according to their values and norms.


1. True 2. False

VALS segmentation groups consumers

according to their values and norms.


1. True 2. False

Organizational buyers can be segmented behaviorally by the products they buy or the frequency with

which they buy.


1. True 2. False

Organizational buyers can be segmented behaviorally by the products they buy or the frequency with

which they buy.


1. True 2. False

When a company offers one basic product without distinguishing between different customer needs and characteristics, this is known as:


1. mass marketing

2. market segmentation

3. benefit segmentation

4. behavioral segmentation

5. segmenting by consumer characteristics

When a company offers one basic product without distinguishing between different customer needs and characteristics, this is known as:


1. mass marketing





A retail store that has one product, one price, and a standard set of inflexible hours is practicing:



2. product differentiation

3. mass marketing

4. normative marketing

A retail store that has one product, one price, and a standard set of inflexible hours is practicing:



2. product differentiation

3. mass marketing


If a winery that is noted for its “Cabernet” wines branches off into other varieties like “Chardonnay” and “Pinot Noir,” they are probably practicing:


1. mass marketing


3. heterogeneous marketing


If a winery that is noted for its “Cabernet” wines branches off into other varieties like “Chardonnay” and “Pinot Noir,” they are probably practicing:


1. mass marketing


3. heterogeneous marketing


When a soft drink company identifies a weight watcher segment, this is an example of:





4. mass marketing

5. lifestyle segmentation

When a soft drink company identifies a weight watcher segment, this is an example of:





4. mass marketing


A soft drink company that tries to determine the characteristics of drinkers of caffeine-free brands is engaged in:





4. mass marketing


A soft drink company that tries to determine the characteristics of drinkers of caffeine-free brands is engaged in:





4. mass marketing


When consumers are grouped according to income, age, sex, or race, this is known as:


1. demographic segmentation

2. product-line segmentation

3. concentrated segmentation


5. personality segmentation

When consumers are grouped according to income, age, sex, or race, this is known as:


1. demographic segmentation




5. personality segmentation

When Chrysler/Jeep advertises four-wheel drive cars to rural consumers, this is an example of:


1. differentiated segmentation


3. market-segment expansion


When Chrysler/Jeep advertises four-wheel drive cars to rural consumers, this is an example of:


1. differentiated segmentation




The ability of a company to reach a segment with media in order to deliver its advertising messages is known as the segment’s:


1. demographics

2. accessibility

3. lifestyle

4. personality characteristics

5. behavioral orientation

The ability of a company to reach a segment with media in order to deliver its advertising messages is known as the segment’s:


1. demographics

2. accessibility

3. lifestyle

4. personality characteristics

5. behavioral orientation

Targeting one product to one segment is known as:


1. differentiated marketing

2. product-line marketing


4. concentrated marketing

Targeting one product to one segment is known as:


1. differentiated marketing

2. product-line marketing


4. concentrated marketing

A perceptual map allows marketers to identify consumers’ perceptions of their brand in relation to the competition.


1. True 2. False

A perceptual map allows marketers to identify consumers’ perceptions of their brand in relation to the competition.


1. True 2. False

In customer relationship management (CRM), a customer’s value is based on a single transaction.


1. True 2. False

In customer relationship management (CRM), a customer’s value is based on a single transaction.


1. True 2. False

The potential profit generated by a single customer’s purchase of a firm’s products over the customer’s lifetime is

the market share for that customer.


1. True 2. False

The potential profit generated by a single customer’s purchase of a firm’s products over the customer’s lifetime is

the market share for that customer.


1. True 2. False

CRM success depends upon how well the company has implemented the

marketing concept.


1. True 2. False

CRM success depends upon how well the company has implemented the

marketing concept.


1. True 2. False

When a marketing plan is implemented, most likely repositioning will be

unnecessary.


1. True 2. False

When a marketing plan is implemented, most likely repositioning will be

unnecessary.


1. True 2. False

A segmentation technique that combines geography with demographics is:


1. VALS


3. geodemography

4. psychodemographics

A segmentation technique that combines geography with demographics is:


1. VALS


3. geodemography

4. psychodemographics

A description of the “typical” customer in a segmentation is a(n):


1. segment profile

2. undifferentiated targeting strategy

3. differentiated target

4. target market

A description of the “typical” customer in a segmentation is a(n):


1. segment profile

2. undifferentiated targeting strategy

3. differentiated target

4. target market

Market fragmentation occurs when:


1. a larger market is divided into smaller pieces

2. the total market is divided into different segments

3. new products are developed to meet the needs of specific audiences

4. people’s diverse interests and backgrounds divide them into numerous groups with distinct needs and wants

Market fragmentation occurs when:


1. a larger market is divided into smaller pieces

2. the total market is divided into different segments

3. new products are developed to meet the needs of specific audiences

4. people’s diverse interests and backgrounds divide them into numerous groups with distinct needs and wants

The cosmetics company Hard Candy sells its funky line of nail polish and other products only to “twenty-

something” women. This is an example of:


1. concentrated targeting strategy

2. custom marketing strategy

3. mass customization

4. segment profile

The cosmetics company Hard Candy sells its funky line of nail polish and other products only to “twenty-

something” women. This is an example of:


1. concentrated targeting strategy

2. custom marketing strategy

3. mass customization

4. segment profile

The 80/20 rule affirms that:


1. 20 percent of purchases account for 80 percent of a product’s sales

2. 80 percent of consumers are unhappy 20 percent of the time

3. 20 percent of sales increase by 80 percent every year

4. For every 80 first time users of a product, only 20 will repeat buy

The 80/20 rule affirms that:


1. 20 percent of purchases account for 80 percent of a product’s sales

2. 80 percent of consumers are unhappy 20 percent of the time

3. 20 percent of sales increase by 80 percent every year

4. For every 80 first time users of a product, only 20 will repeat buy

The process of dividing a larger market into smaller pieces based on one or more distinctive, shared characteristics is called:


1. segmentation

2. segregation

3. fragmentation

4. separation

The process of dividing a larger market into smaller pieces based on one or more distinctive, shared characteristics is called:


1. segmentation

2. segregation

3. fragmentation

4. separation

SMS, 4e – Chapter 7

Documents

e chapter

target market

segmented marketing

different customer needs

similar need groups

new target

basic product

targeting products