Chapter 7 Customer-Driven Marketing Strategy: Creating Value for Target Customers

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
) !egmenting
") ifferentiation
Ans#er$ C
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%) What are the fo-r steps, in order, to designing a c-stomer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
) market alignment, market segmentation, differentiation, and market positioning
") market recognition, market preference, market targeting, and market insistence
Ans#er$ C
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/) 0hro-gh market segmentation, companies divide large, heterogeneo-s markets into smaller
segments that can be reached more ________ #ith prod-cts and services that match their -ni-e
needs.
A) "fficiently
B) "ffectively
C) 2ntensely
) 2ndirectly
") Both A and B
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6) "ven tho-gh several options are available at any one time, there ________ to segment a
market.
A) 2s one single best #ay
B) 2s no single #ay
C) 2s a most effective #ay
) Are limited #ays
") Are fo-r #ays
Ans#er$ B
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7) 8o-r firm has decided to locali9e its prod-cts and services to meet local market demands. A
good approach to -se #o-ld be ________ segmentation.
A) :eographic
B) Benefit
C) "nd-se
) C-stomer 
") 2mage
Ans#er$ A
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;) &endergraff &et !-pplies divides the pet market according to the o#ners< race, occ-pation,
income, and family life cycle. What type of segmentation does &endergraff -se
A) geographic
B) behavioral
C) lifestyle
) demographic
") psychographic
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+) 0hro-gh talking to n-mero-s competitors at a regional trade sho#, yo- learn that most of them
-se the most pop-lar base for segmenting markets. What is it
A) demographic
B) gender 
C) psychographic
) behavioral
") geographic
Ans#er$ A
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=) emographic variables are so fre-ently -sed in market segmentation beca-se they ________.
A) Create smaller segments than other methods do
B) Create more easily reached segments than other methods do
C) o not involve stereotypes
) Are easy to meas-re in comparison to many other methods
") 2nvolve fe#er attrib-tes to consider than other methods do
Ans#er$ 
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() Marketers m-st be most caref-l to g-ard against #hich of the follo#ing #hen -sing age and
life cycle segmentation
A) -nderestimating
B) stereotyping
C) traditional marketing
) c-lt-ral bias
") gender bias
Ans#er$ B
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14) When &ositive 2mage, 2nc., caters to clothing, cosmetics, and toiletries markets, it is most
likely -sing #hich type of segmentation
A) age and life cycle
B) gender 
C) behavior 
) psychographic
") geographic
Ans#er$ B
iff$ % &age 'ef$ 1(7
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11) Marketers of a-tomobiles, financial services, and travel are most likely to -se #hich of the
follo#ing types of segmentation
A) gender 
B) income
C) occasion
) -sage rate
") benefits so-ght
Ans#er$ B
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1%) 0he division of b-yers into gro-ps based on their kno#ledge, attit-des, -ses, or responses to
a prod-ct is ________ segmentation.
A) behavioral
B) psychographic
C) age and life cycle
) demographic
") geographic
Ans#er$ A
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1/) Many marketers believe that #hich of the follo#ing variables are the best starting point for
 b-ilding marketing segments
A) behavioral
B) family si9e
C) gender 
) age
") beneficial
Ans#er$ A
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16) Which type of segmentation centers on the -se of the #ord when, s-ch as when cons-mers
get the idea to b-y, when they act-ally make their p-rchase, or when they -se the p-rchased
item
A) behavioral
B) psychographic
C) occasion
) imp-lse
") emergency
Ans#er$ C
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17) Markets can be segmented into gro-ps of non-sers, e>-sers, potential -sers, firsttime -sers,
and reg-lar -sers of a prod-ct. 0his method of segmentation is called ________.
A) -ser stat-s
B) -sage rates
C) benefit
) behavior 
") loyalty stat-s
Ans#er$ A
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1;) Cons-mers can sho# their allegiance to brands, stores, or companies. Marketers can -se this
information to segment cons-mers by ________.
A) -ser stat-s
B) loyalty stat-s
C) store type
) brand preference
") -sage rate
Ans#er$ B
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1+) By st-dying its less loyal b-yers, a company can detect #hich brands are most ________ its
o#n.
A) competitive #ith
B) -sed #ith
C) overlooked #ith
) similar to
") complementary to
Ans#er$ A
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1=) Many firms make an effort to identify smaller, betterdefined target gro-ps by -sing
 ________.
A) -ser rates
B) loyalty segmentation
C) m-ltiple segmentation bases
) positioning
") mass marketing
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1() Cons-mer and b-siness marketers -se many of the same variables to segment markets.
B-siness marketers -se all of the follo#ing "?C"&0 ________.
A) operating characteristics
B) p-rchasing approaches
C) sit-ational factors
) personal characteristics
") brand personalities
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%4) As in cons-mer segmentation, many marketers believe that ________ and ________
segmentation provide the best basis for segmenting b-siness markets.
A) geographic@ demographic
B) -ser stat-s@ -ser loyalty
C) benefits@ b-ying behavior 
) age and lifecycle@ psychographic
") income@ -sage rate
Ans#er$ C
iff$ % &age 'ef$ 1((
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%1) 2nternational rilling Company segments its foreign markets by their overall level of
economic development. 0his firm segments on #hat basis
A) political factors
B) legal factors
C) geographic factors
) economic factors
") c-lt-ral factors
Ans#er$ 
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%%) e>-s targets #ealthy cons-mers #ith similar needs and b-ying behaviors, even tho-gh the
cons-mers are located in different co-ntries. 0his is an e>ample of ________.
A) intermarket segmentation
B) loyalty segmentation
C) lifecycle segmentation
) targeting segmentation
") psychographic segmentation
Ans#er$ A
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%/) When the si9e, p-rchasing po#er, and profiles of a market segment can be determined, it
 possesses the re-irement of being ________.
A) meas-rable
B) accessible
C) s-bstantial
) actionable
") observable
Ans#er$ A
iff$ % &age 'ef$ %44
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%6) When a b-siness market segment is large or profitable eno-gh to serve, it is termed
 ________.
A) meas-rable
B) accessible
C) s-bstantial
) actionable
") differentiable
Ans#er$ C
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%7) When an effective program can be designed for attracting and serving a chosen segment, the
segment is best described as ________.
A) accessible
B) meas-rable
C) reachable
) actionable
") differentiable
Ans#er$ 
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%;) 8o- have discovered that the segments yo- are targeting are concept-ally disting-ishable and
respond differently to different marketing mi> elements and programs. 0hese segments are
 ________.
A) accessible
B) meas-rable
C) reachable
) differentiable
") observable
Ans#er$ 
iff$ % &age 'ef$ %41
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%+) 0o eval-ate the different market segments yo-r company serves, yo- #o-ld look at all of
these factors "?C"&0 #hich one
A) segment si9e
B) segment gro#th
C) segment str-ct-ral attractiveness
) company val-es
") company reso-rces
Ans#er$ 
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%=) Barney 5opkins has compiled a list of things that make segments more attractive. Which one
of the follo#ing items sho-ld 0 be on the list
A) relative po#er of b-yers
B) lack of po#erf-l s-ppliers to control prices
C) fe# s-bstit-te prod-cts
) competition #ith s-perior reso-rces
") financial reso-rces
Ans#er$ 
iff$ % &age 'ef$ %41
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%() Which of the follo#ing is 0 one of the reasons a segment #o-ld be less attractive to a
company
A) strong competitors
B) s-bstit-te prod-cts
C) concentrated market
) po#er of b-yers
") po#er of s-ppliers
Ans#er$ C
iff$ % &age 'ef$ %41
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/4) 2n general, a company sho-ld enter only segments in #hich it can ________ and ________.
A) offer lo#er prices@ ship faster 
B) offer s-perior val-e@ gain advantages over competitors
C) offer s-perior val-e@ ship faster 
) gain advantages over competitors@ differentiate its prod-cts
") identify behaviors@ -nderstanding spending po#er 
Ans#er$ B
iff$ / &age 'ef$ %41
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/1) Mass marketers, s-ch as 0arget and ent-re !tores, often ignore market segment differences
and target the #hole market #ith one offer. What is their approach to segmenting
A) -ndifferentiated marketing
B) differentiated marketing
C) target marketing
) concentrated marketing
") micromarketing
Ans#er$ A
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/%) 0he 77yearold baby boomers share common needs in m-sic and performers. When a m-sic
company decides to serve this gro-p, the gro-p is called aDn) ________.
A) market segment
B) target market
C) #elldefined market
) differentiated market
") -ndifferentiated market
Ans#er$ B
iff$ 1 &age 'ef$ %41
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//) When e# &ort !hipping -ses segmented marketing, it targets several segments and designs
separate offers for each one. 0his approach is called ________ marketing.
A) -ndifferentiated
B) differentiated
C) target
) individ-al
") niche
Ans#er$ B
iff$ % &age 'ef$ %4%
!kill$ Concept
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/6) eveloping a strong position #ithin several segments creates more total sales than ________ 
marketing across all segments.
A) -ndifferentiated
B) differentiated
C) niche
) target
") individ-al
Ans#er$ A
iff$ / &age 'ef$ %4%
!kill$ Concept
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/7) ByWay ent-res chose a differentiated marketing strategy. 0he company had to #eigh
 ________ against ________ #hen selecting this strategy.
A) e>tra research@ costs
B) sales analysis@ sales
C) increased sales@ increased costs
) geographic segmentation@ demographic segmentation
") attit-des@ perceptions
Ans#er$ C
iff$ % &age 'ef$ %46
!kill$ Concept
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/;) &rocter E :amble sells si> brands of la-ndry detergent in the Fnited !tates, each designed
for one of si> la-ndry segments &rocter E :amble has identified. 0ogether, these si> brands take
;%G of market share. Which of the follo#ing is a disadvantage of &rocter E :amble<s
differentiated marketing strategy
A) lost sales that #o-ld have been made #ith an -ndifferentiated marketing strategy across all
segments
B) lost c-stomer loyalty d-e to lack of brand loyalty
C) increased costs for separate marketing plans for each brand
) other s-ppliers controlling pricing
") lack of reso-rces to s-cceed in an attractive segment
Ans#er$ C
iff$ % &age 'ef$ %4%
!kill$ Concept
b*ective$ +/

/+) !-ccessf-l niche marketing relies on a firm<s ________ and its ________.
A) marketing strategy@ services
B) individ-al relationships #ith c-stomers@ positioning
C) s-perior prod-cts@ val-e net#ork partners
) greater kno#ledge of c-stomers< needs@ special rep-tation
") competitive advantage in comparison to massmarket companies@ affordable pricing
Ans#er$ 
iff$ % &age 'ef$ %46
!kill$ Concept
b*ective$ +/

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/=) Fsing concentrated marketing, the marketer goes after a ________ share of ________.
A) small@ a small market
B) small@ a large market
C) large@ one or a fe# niches
) large@ the mass market
") moderate@ local
Ans#er$ C
iff$ % &age 'ef$ %46
!kill$ Concept
b*ective$ +/

/() iche marketing offers smaller companies the opport-nity to compete by foc-sing their
limited reso-rces on serving niches that may be ________ or ________ larger companies.
A) -nimportant to@ -n#anted by
B) -nimportant to@ overlooked by
C) too small@ -ndesirable to
) -nkno#n by@ -n#anted by
") disappointed by@ geographically far from
Ans#er$ B
iff$ % &age 'ef$ %46
!kill$ Concept
b*ective$ +/

64) 0oday, the lo# cost of setting -p shop ________ makes it even more profitable to serve very
small niches.
A) in malls in ma*or cities
B) in mailorder catalogs
C) on the 2nternet
) near ma*or competitors
") far from competitors
Ans#er$ C
iff$ 1 &age 'ef$ %47
AAC!B$ Fse of 20
!kill$ Concept
b*ective$ +/

61) Which of the segmenting strategies carries higherthanaverage risks in cons-mer markets
A) concentrated
B) mass
C) differentiated
) -ndifferentiated
") m-ltiplesegment
Ans#er$ A
iff$ / &age 'ef$ %47
!kill$ Concept
b*ective$ +/

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6%) As 8o- ike 2t, 2nc., c-stomi9es its offers to each individ-al cons-mer. 0his practice of
tailoring prod-cts and marketing programs to s-it the tastes of specific individ-als and locations
is referred to as ________ marketing.
A) niche
B) mass
C) differentiated
) -ndifferentiated
") micro
Ans#er$ "
iff$ % &age 'ef$ %47
!kill$ Concept
b*ective$ +/

6/) ________ tailors brands and promotions to the needs and #ants of specific cities,
neighborhoods, and even stores.
A) Fndifferentiated
B) ifferentiated marketing
C) iche marketing
) ocal marketing
") 2ndivid-al marketing
Ans#er$ 
iff$ 1 &age 'ef$ %47
!kill$ Concept
b*ective$ +/

66) Which of the follo#ing is the narro#est marketing strategy

A) segmented strategy
B) local marketing
C) differentiated marketing
) mass marketing
") -ndifferentiated marketing
Ans#er$ B
iff$ / &age 'ef$ %4%
!kill$ Concept
b*ective$ +%

67) Which of the follo#ing is 0 a dra#back of local marketing

A) 2t can drive -p man-fact-ring costs.
B) 2t can drive -p marketing costs by red-cing economies of scale.
C) 2t can create logistics problems.
) A brand<s overall image might be dil-ted thro-gh too m-ch variation.
") !-pporting technologies are e>pensive.
Ans#er$ "
iff$ / &age 'ef$ %4;
!kill$ Concept
b*ective$ +/

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6;) Fnder #hat circ-mstances can local marketing be -ite effective

A) #hen prono-nced regional differences in demographics are present
B) #hen prono-nced local differences in lifestyles are present
C) #hen prono-nced regional and local differences in demographics and lifestyles are present
) #hen regional and local differences in demographics and lifestyles are similar 
") all of the above
Ans#er$ C
iff$ / &age 'ef$ %4;
AAC!B$ M-ltic-lt-ral and iversity
!kill$ Concept
b*ective$ +/

6+) When WalMart c-stomi9es its merchandise store by store to meet shopper needs, it is
 practicing ________.
A) niche marketing
B) psychographic marketing
C) local marketing
) social segmentation
") individ-al marketing
Ans#er$ C
iff$ % &age 'ef$ %47
!kill$ Concept
b*ective$ +/

6=) When a company interacts oneonone #ith large n-mbers of c-stomers to create c-stomer
-ni-e val-e by designing prod-cts and services tailormade to individ-al needs, it is follo#ing
 ________.
A) onetoone marketing
B) mass marketing
C) mass c-stomi9ation
) differentiated marketing
") locali9ation
Ans#er$ C
iff$ % &age 'ef$ %4;
!kill$ Concept
b*ective$ +/

6() 0he move to#ard individ-al marketing mirrors the trend in cons-mer ________.
A) selfimaging
B) c-stomi9ing
C) selfmarketing
) tastes
") selfconcept-ali9ation
Ans#er$ C
iff$ / &age 'ef$ %4+
!kill$ Concept
b*ective$ +/

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74) When choosing a target marketing strategy, many factors need to be considered. Which of
the follo#ing does yo-r te>t 0 mention as important
A) company reso-rces
B) degree of prod-ct variability
C) prod-ct lifecycle stage
) prod-ct cost
") competitors< marketing strategies
Ans#er$ 
iff$ % &age 'ef$ %4+
!kill$ Concept
b*ective$ +/

71) When competitors -se differentiated or concentrated marketing, ________ marketing can be
disastro-s.
A) differentiated
B) -ndifferentiated
C) concentrated
) c-stomi9ed
") locali9ed
Ans#er$ B
iff$ % &age 'ef$ %4+
!kill$ Concept
b*ective$ +/

7%) 0arget marketing sometimes generates controversy and concern. 2ss-es -s-ally involve the
targeting of ________ cons-mers #ith ________ prod-cts.
A) elderly@ e>pensive
B) yo-ng@ appealing
C) v-lnerable@ marketing
) v-lnerable or disadvantaged@ controversial or potentially harmf-l
") -ne>pected@ deceptive
Ans#er$ 
iff$ % &age 'ef$ %4=
AAC!B$ "thical 'easoning
!kill$ Concept
b*ective$ +/

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7/) 2t is considered socially irresponsible #hen the marketing of ad-lt prod-cts spills over into
the ________ segment.
A) elderly
B) child
C) animal
) minority
") senior 
Ans#er$ B
iff$ 1 &age 'ef$ %4=
AAC!B$ "thical 'easoning
!kill$ Concept
b*ective$ +/

76) Cigarette, beer, and fastfood marketers have generated m-ch controversy in recent years by
their attempts to target ________.
A) teens
B) the poor 
C) innercity minorities
) the poor in foreign markets
") s-b-rban ad-lts
Ans#er$ C
iff$ / &age 'ef$ %4=
AAC!B$ "thical 'easoning
!kill$ Concept
b*ective$ +/

77) Most attempts to target children and minority gro-ps provide ________ to target c-stomers.
A) benefits
B) ed-cation
C) disadvantages
) harm
") e>penses
Ans#er$ A
iff$ % &age 'ef$ %4(
AAC!B$ "thical 'easoning
!kill$ Concept
b*ective$ +/

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7;) 2n target marketing, the iss-e is not really #ho is targeted, b-t rather ________ and for
 ________.
A) #hy@ #hat
B) ho#@ #hat
C) #hy@ ho# long
) #here@ ho# long
") ho#@ #here
Ans#er$ B
iff$ % &age 'ef$ %4(
AAC!B$ "thical 'easoning
!kill$ Concept
b*ective$ +/

7+) Which gro-p determines a prod-ct<s position relative to competing prod-cts

A) man-fact-rers
B) #holesalers
C) retailers
) cons-mers
") s-ppliers
Ans#er$ 
iff$ 1 &age 'ef$ %4(
!kill$ Concept
b*ective$ +6

7=) A prod-ct<s position is based on important attrib-tes as perceived by ________.

A) !-ppliers
B) Competitors
C) Market conditions
) Cons-mers
") Managers
Ans#er$ 
iff$ % &age 'ef$ %4(
!kill$ Concept
b*ective$ +6

7() Cons-mers position prod-cts and services ________.

A) after marketers p-t marketing mi>es in place
B) generally after cons-lting friends #ho -se them
C) #ith or #itho-t the help of marketers
) only rel-ctantly
") based on nearby competitors< positions
Ans#er$ C
iff$ 1 &age 'ef$ %4(
!kill$ Concept
b*ective$ +6

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;4) Which of the listed choices is 0 a positioning task

A) 2dentifying a set of possible competitive advantages -pon #hich to b-ild a position
B) !-rveying fre-ent -sers of the prod-ct
C) !electing an overall positioning strategy
) "ffectively comm-nicating and delivering the chosen position to the market
") !electing the right competitive advantages
Ans#er$ B
iff$ % &age 'ef$ %14
AAC!B$ Comm-nication
!kill$ Concept
b*ective$ +6

;1) A company or store gains aDn) ________ by differentiating its prod-cts and delivering more
val-e.
A) competitive advantage
B) positioning advantage
C) cost advantage
) efficiency advantage
") synergy
Ans#er$ A
iff$ 1 &age 'ef$ %14
!kill$ Concept
b*ective$ +6

;%) A company or market offer can be differentiated along the lines of prod-ct, image, services,
channels, or ________.
A) prices
B) nonprice factors
C) people
) c-stomer service
") location
Ans#er$ C
iff$ % &age 'ef$ %1/
!kill$ Concept
b*ective$ +6

;/) Which type of differentiation is -sed to gain competitive advantage thro-gh the #ay a firm
designs its distrib-tion coverage, e>pertise, and performance
A) services differentiation
B) channel differentiation
C) people differentiation
) prod-ct differentiation
") price differentiation
Ans#er$ B
iff$ % &age 'ef$ %1/
!kill$ Concept
b*ective$ +6

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;6) When firms -se symbols, colors, or characters to convey their personalities, they are -sing
 ________ differentiation.
A) image
B) people
C) company
) rep-tation
") s-bliminal
Ans#er$ A
iff$ 1 &age 'ef$ %1/
AAC!B$ Comm-nication
!kill$ Concept
b*ective$ +6

;7) Ad man 'osser 'eeves believes that firms sho-ld develop a F!& for each brand and stick to
it. What does F!& stand for
A) -ni-e selling prod-ct
B) -ni-e services practice
C) -ni-e sales pitch
) -ni-e selling proposition
") -ni-e strategic practice
Ans#er$ 
iff$ / &age 'ef$ %1/
AAC!B$ Comm-nication
!kill$ Concept
b*ective$ +6

;;) A brand difference is #orth establishing and promoting to the e>tent that it satisfies all of the
criteria belo# "?C"&0 #hich one
A) important
B) distinctive
C) divisible
) affordable
") noticeable
Ans#er$ C
iff$ / &age 'ef$ %16
!kill$ Concept
b*ective$ +6

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;+) 8o- have *-st created the HperfectH ad. 2t comm-nicates the f-ll mi> of benefits -pon #hich
the brand is differentiated and positioned. 0his f-ll positioning of the brand is called ________.
A) its val-e proposition
B) target marketing
C) capt-ring the cons-mers< attention
) val-e profiling
") differentiated marketing
Ans#er$ A
iff$ % &age 'ef$ %16
AAC!B$ Comm-nication
!kill$ Concept
b*ective$ +6

;=) 0he ans#er to the c-stomer<s -estion HWhy sho-ld 2 b-y yo-r brandH is fo-nd in the
 ________.
A) -ality image
B) c-stomer services
C) val-e proposition
) differentiation
") pricing and promotion str-ct-re
Ans#er$ C
iff$ % &age 'ef$ %16
!kill$ Concept
b*ective$ +6

;() What competitive positioning can attack a moreformore strategy by introd-cing a brand
offering #ith comparable -ality at a lo#er price
A) moreforthesame
B) moreforless
C) sameforless
) lessform-chless
") allornothing
Ans#er$ A
iff$ / &age 'ef$ %17
!kill$ Concept
b*ective$ +6

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+4) Which positioning strategy offers cons-mers a Hgood dealH by offering e-ivalent-ality
 prod-cts or services at a lo#er price
A) moreforthesame
B) moreforless
C) sameforless
) lessform-chless
") allornothing
Ans#er$ C
iff$ % &age 'ef$ %17
!kill$ Concept
b*ective$ +6

+1) Hessform-chlessH positioning involves meeting cons-mers< ________.

A) -ality performance re-irements at a lo#er price
B) lo#er -ality re-irements in e>change for a lo#er price
C) lo#er -ality re-irements at the lo#est possible price
) high -ality re-irements at a disco-nted rate
") high -ality re-irements at the lo#er possible price
Ans#er$ B
iff$ 1 &age 'ef$ %1;
!kill$ Concept
b*ective$ +6

+%) Ie# people can afford the best in everything they b-y. At times everyone needs a prod-ct
#ith less -ality or performance #ith a correspondingly lo#er price. 2n this case a cons-mer
#o-ld p-rchase a prod-ct positioned #ith a ________ strategy.
A) moreforthesame
B) moreforless
C) sameforless
) lessform-chless
") allornothing
Ans#er$ 
iff$ % &age 'ef$ %17
!kill$ Concept
b*ective$ +6

+/) Which diffic-lttos-stain positioning strategy attempts to deliver the HbestofbothH

A) moreforthesame
B) moreforless
C) sameforless
) lessform-chless
") moreformore
Ans#er$ B
iff$ % &age 'ef$ %1;
!kill$ Concept
b*ective$ +6

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+6) Which type of statement first states the prod-ct<s membership in a category and then sho#s
its pointofdifference from other members of the category
A) mission statement
B) vision statement
C) differentiation statement
) positioning statement
") statement of intent
Ans#er$ 
iff$ % &age 'ef$ %1;
!kill$ Concept
b*ective$ +6

+7) What is the follo#ing an e>ample of H0o b-sy, mobile professionals #ho need to al#ays be
in the loop, BlackBerry is a #ireless connectivity sol-tion that gives yo- an easier, more reliable
#ay to stay connected to data, people, and reso-rces #hile on the go.H
A) positioning statement
B) service differentiation
C) concentrated segmentation
) competitive advantage
") responsible target marketing
Ans#er$ A
iff$ % &age 'ef$ %1;
!kill$ Concept
b*ective$ +6

+;) When marketers at &rocter E :amble selected the Millennials, a demographic that incl-des
college st-dents, as an -ntapped gro-p of potential c-stomers for their Iebre9e line of prod-cts,
they #ere e>ec-ting #hich step in the process of designing a c-stomerdriven marketing
strategy
A) market segmenting
B) mass marketing
C) differentiation
) targeting
") positioning
Ans#er$ 
iff$ 1 &age 'ef$ 1(1
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +1

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++) When &acific Iisheries gro-ps its c-stomers as co-ntries by regions s-ch as Asia, A-stralia,
or e# Jealand, it is -sing #hich segmenting base
A) economic factors
B) political and legal factors
C) geographic location
) benefits so-ght
") demographics
Ans#er$ C
iff$ 1 &age 'ef$ 1(/
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +%

+=) When B-rger King targets children, teens, ad-lts, and seniors #ith different ads and media,
it is practicing ________ segmentation.
A) demographic
B) age and life cycle
C) psychographic
) behavioral
") generational
Ans#er$ B
iff$ 1 &age 'ef$ 1(6
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +%

+() Which of the follo#ing statements ill-strates #hy stereotypes sho-ld be avoided #hen -sing
age and life cycle segmentation
A) ld #omen love to shop@ yo-ng #omen love it moreL
B) Most 14yearold boys are mischievo-s.
C) !ome +4 year olds -se #heelchairs@ others play tennis.
) 0he ma*ority of %4 year olds have to #ork@ the same holds tr-e for /4 and 64 year olds.
") both C and 
Ans#er$ C
iff$ % &age 'ef$ 1(6
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +%

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=4) !egmenting voters as either democrats or rep-blicans is an e>ample of ________.

A) psychographic segmentation
B) demographic segmentation
C) occasion segmentation
) intermarket segmentation
") A and 
Ans#er$ A
iff$ / &age 'ef$ 1(;
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +%

=1) At one time Miller Beer #as kno#n as the Hchampagne of bottled beer.H Fnfort-nately,
Miller drinkers did not drink m-ch beer. 0o increase sales, Miller #as repositioned to attract the
members of the middle #orking class. 0his segmentation approach is ________.
A) -ser stat-s
B) -sage rate
C) benefit
) behavioral
") psychographic
Ans#er$ "
iff$ % &age 'ef$ 1(;
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +%

=%) 8o-r c-rrent assignment at 8ork Ioods is to find the ma*or benefits people look for in
 prod-ct classes, the kinds of people #ho look for each benefit, and the ma*or brands that deliver
each benefit. What is this segmentation method called
A) benefit
B) behavioral
C) age and life cycle
) psychographic
") demographic
Ans#er$ A
iff$ 1 &age 'ef$ 1(;
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +%

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=/) !hampoo marketers rate b-yers as light, medi-m, or heavy prod-ct -sers. 0his is ________
segmentation.
A) benefit
B) -ser stat-s
C) -sage rate
) psychographic
") occasions
Ans#er$ C
iff$ 1 &age 'ef$ 1(+
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +%

=6) M0 targets the #orld<s teenagers, #ho have similar needs and b-ying behavior even tho-gh
they are located in different co-ntries. 0his is called ________ segmentation.
A) political and legal
B) crossc-lt-ral
C) c-lt-ral
) intermarket
") individ-al
Ans#er$ 
iff$ % &age 'ef$ %44
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +%

=7) 0he markets yo- have chosen to serve in fo-r #estern states can be effectively reached and
served. 8o- #o-ld tell the marketing manager that these segments are ________.
A) meas-rable
B) accessible
C) s-bstantial
) actionable
") profitable
Ans#er$ B
iff$ % &age 'ef$ %44
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +%

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=;) olene "nterprises mass prod-ces an allp-rpose floor cleaner, mass distrib-tes it and mass
 promotes it. 0his firm -ses ________ marketing.
A) segmented
B) -ndifferentiated
C) traditional
) differentiated
") none of the above
Ans#er$ B
iff$ 1 &age 'ef$ %41
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +/

=+) A marketer foc-ses on several commonalities among all cons-mers. 0his marketer appears to
 be engaging in ________.
A) differentiated marketing
B) -ndifferentiated marketing
C) segmented marketing
) concentrated marketing
") mass c-stomi9ation
Ans#er$ B
iff$ % &age 'ef$ %41
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +/

==) Which of the follo#ing is the most logical reason for &rocter E :amble offering prod-cts
that compete #ith one another on the same s-permarket shelves
A) ifferent people #ant a greater selection.
B) &rocter E :amble has little competition.
C) ifferent people #ant different mi>es of benefits from the prod-cts they b-y.
) 'etailers re-est it.
") 2t creates healthy competition.
Ans#er$ C
iff$ / &age 'ef$ %4/
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +/

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=() !ang-ine !ervices practices a marketing strategy #here its limited reso-rces are -sed to go
after a large share of t#o small niches. !ang-ine practices #hich one of these strategies
A) -ndifferentiated
B) differentiated
C) mass
) concentrated
") geographically dispersed
Ans#er$ 
iff$ % &age 'ef$ %46
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +/

(4) Bob and &hyllis Cords o#n t#o retail stores, one in &ottsto#n and one in orristo#n.
0ho-gh the to#ns are only 64 miles apart, the cons-mers at both stores are very different
demographically. Bob and &hyllis alter the prod-ct offerings bet#een both locations in an effort
to cater to both demographic gro-ps. 0his is an e>ample of ________.
A) local marketing
B) psychographic segmentation
C) micromarketing
) demographic segmentation
") A and C
Ans#er$ "
iff$ % &age 'ef$ %47
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +/

(1) ay Bee &romotions tailors its advertising and promotional services to the needs and
 preferences of individ-al c-stomers. Which of the follo#ing terms does 0 apply to this type
of marketing
A) onetoone
B) c-stomi9ed
C) marketsofone
) concentrated
") mass c-stomi9ation
Ans#er$ 
iff$ / &age 'ef$ %4;
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +/

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(%) 0he ay :ro-p hires better employees than the competition by cond-cting lengthy searches
and intervie#s. Management also trains employees m-ch better than competitors do. 0he ay
:ro-p has gained a strong competitive advantage thro-gh #hich type of differentiation
A) image
B) people
C) services
) prod-ct
") channel
Ans#er$ B
iff$ % &age 'ef$ %1/
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +6

(/) Iord Motor Company emphasi9es HN-ality Iirst Iord 0o-ghH in its tr-ck prod-cts. 2n doing


so, the company has developed a differentiation strategy based on ________.

A) people
B) image
C) prod-cts
) services
") positioning
Ans#er$ B
iff$ % &age 'ef$ %1/
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +6

(6) Cheap 5eaps A-to speciali9es in lo#er -ality vehicles, #ith a fe# dents, priced a great deal
lo#er than other -sed cars. Cheap 5eaps has chosen to position their prod-cts #ith a ________
strategy.
A) moreforthe same
B) moreforless
C) sameforless
) lessform-chless
") A or C
Ans#er$ 
iff$ % &age 'ef$ %17
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +6

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(7) eiman Marc-s claims s-perior -ality, performance, and style. 0he o#ners provide the
most -pscale prod-cts and services and charge a higher price to cover the higher costs. What
type of positioning does eiman Marc-s -se
A) moreforthesame
B) moreformore
C) repositioning
) thesameforless
") moreforless
Ans#er$ B
iff$ 1 &age 'ef$ %17
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +6

(;) When it first opened for b-siness, 5ome epot claimed to offer better prod-cts at lo#er
 prices. 0his hardtos-stain val-e proposition is called ________.
A) moreforthesame
B) moreforless
C) moreformore
) sameforless
") sameformore
Ans#er$ B
iff$ % &age 'ef$ %1;
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +6

(+) !-perior A-to !ales, a chain of highend -sed car dealerships, #ants to s-m -p its company
 positioning and brand positioning in a formal #ay. !-perior<s management #o-ld -se a
 ________.
A) mission statement
B) vision statement
C) competitive statement
) positioning statement
") company statement
Ans#er$ 
iff$ % &age 'ef$ %1;
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +6

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Refer to the scenario belo to anser the folloing !uestions"

5erb Marks began making #ooden #riting -tensils as a hobby -ntil Mel 8oder
recogni9ed 5erb<s talent. Mel immediately ordered %74 pens and pencils of vario-s styles to be
displayed in his shop<s sho#case. Within three months, the #riting -tensils #ere a hitL 5erb
Marks had never tho-ght of marketing his talent b-t Mel<s enth-siasm and the recent sales #ere
eno-gh to change his mind.
With limited reso-rces, 5erb contacted three additional specialty shops #ithin 144 miles.
5e e>plained his man-fact-ring processes and engraving options to each. All three shops< o#ners
 placed a trial order. Within t#o months, *-st prior to the holiday season, each shop o#ner placed
an additional order. 5erb #as ecstaticL
H2 fig-red b-siness #o-ld slo# do#n after that,H 5erb stated, Hb-t in Iebr-ary 2 #as
contacted by "lmore istrib-tors. At that point, 2 had to make a h-ge decision abo-t ho# far 2
#anted to go #ith this b-siness.H
"lmore istrib-tors provided prod-cts for school f-ndraisers in a sevenstate area. 5erb
#as offered a t#oyear contract and immediate incl-sion in "lmore<s promotional flyer. 5erb
Marks accepted the offer and, along #ith it, the responsibility to prod-ce tho-sands of #ooden
 pens and pencils.
H2 had to get a grip on the magnit-de of this pro*ectLH 5erb added. H2 co-ldn<t gro# o-t of
control. 2 #as already #orking to capacity.H
5erb decided to place his ma*or foc-s on the large contract #ith "lmore. 5o#ever, to
avoid placing his total emphasis #ith one c-stomer, 5erb contin-ed n-rt-ring his fo-r previo-sly
established acco-nts #itho-t targeting any additional c-stomers.
HAt this point, 2 had set -p an assembly line in a rented b-ilding,H 5erb e>plained. H2 had
to hire three f-lltime employees to #ork the line #hile 2 managed the c-stomer orders and
 p-rchased materials.H 5erb pa-sed. HB-t 2 can<t take the "lmore pro*ect for granted. 2t might not
al#ays be there. 2<ll have to have a good alternate plan if that day comes.H

(=) 2n the scenario, ho# does 5erb segment his market

A) loyalty stat-s
B) -sage rate
C) income
) geographically
") demographically
Ans#er$ B
iff$ % &age 'ef$ 1(+
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +%

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(() 2n marketing his #riting -tensils to his fo-r specialtyshop c-stomers, 5erb is -sing
 ________ marketing.
A) mass
B) -ndifferentiated
C) niche
) mass c-stomi9ation
") individ-al
Ans#er$ C
iff$ % &age 'ef$ %46
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +/

144) 2f 5erb prod-ced a variety of styles of pens and pencils #ith vario-s #ood types and
engravings that he tailored specifically to each individ-al<s order, he #o-ld be practicing
 ________.
A) concentrated marketing
B) local marketing
C) -ndifferentiated marketing
) mass c-stomi9ation
") micromarketing
Ans#er$ 
iff$ % &age 'ef$ %4;
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +/

141) 0oday, most companies have moved back to#ard mass marketing and are being choosier
abo-t the c-stomers #ith #hom they #ish to b-ild relationships.
Ans#er$ 0'F"
iff$ % &age 'ef$ 1(1
!kill$ Concept
b*ective$ +1

14%) 8o-r company #ants to move a#ay from mass marketing and engage in c-stomerdriven
marketing. 0he fo-r steps to take, in order, are market segmentation, marketing positioning,
differentiation, and targeting.
Ans#er$ IA!"
iff$ % &age 'ef$ 1(1
!kill$ Concept
b*ective$ +1

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14/) Bombay :ifts divides its markets into -nits of nations, regions, and cities. Bombay -ses
geographic segmentation.
Ans#er$ 0'F"
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146) emographic segmentation -ses different marketing approaches for different time periods
of people<s lives and different family sit-ations.
Ans#er$ IA!"
iff$ % &age 'ef$ 1(6
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b*ective$ +%

147) !hopping for the 'ich and Iamo-s is a b-ying service that helps #ealthy clients find the
 best b-ys in e>cl-sive clothing, highend cars, travel, and financial services. 0his firm most
likely -ses income segmentation.
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iff$ % &age 'ef$ 1(7
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b*ective$ +%

14;) :ender segmentation has long been -sed in clothing, cosmetics, toiletries, and maga9ines.
Ans#er$ 0'F"
iff$ % &age 'ef$ 1(7
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!kill$ Concept
b*ective$ +%

14+) 8o-r assignment at #ork is to divide b-yers into different gro-ps based on social class,
lifestyle, and personality characteristics. After a planning session #ith the marketing and sales
staff, yo- iss-e a memo to -pper management recommending psychographic segmentation. 8o-
are right on target.
Ans#er$ 0'F"
iff$ % &age 'ef$ 1(;
!kill$ Concept
b*ective$ +%

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14=) a:range Ilorists segments markets into gro-ps of non-sers, e>-sers, potential -sers, first
time -sers, and reg-lar -sers of its flo#ers and services. 0his firm -ses -sage rate as its
segmentation approach.
Ans#er$ IA!"
iff$ % &age 'ef$ 1(+
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14() 'esearch abo-t and planning for loyalty stat-s as a segmentation approach is generally not
-sef-l or practical for most firms.
Ans#er$ IA!"
iff$ % &age 'ef$ 1(=
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b*ective$ +%

114) Ior simplicity<s sake, most marketers generally limit their segmentation analysis to one or a
fe# variables.
Ans#er$ IA!"
iff$ % &age 'ef$ 1(=
!kill$ Concept
b*ective$ +%

111) Cl-sters of marketable gro-ps of c-stomers #ith similar likes, dislikes, lifestyles, and
 p-rchase behaviors can be identified by m-ltivariable segmentation systems that merge and
analy9e geographic, demographic, lifestyle, and behavioral data.
Ans#er$ 0'F"
iff$ % &age 'ef$ 1(=
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!kill$ Concept
b*ective$ +%

11%) 0here are many e>ceptions to the geographic segmentation ass-mption that cons-mers in
nations close to one another #ill have many common behaviors and traits.
Ans#er$ 0'F"
iff$ % &age 'ef$ 1((
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11/) Beca-se there is s-ch variation among the economies of co-ntries aro-nd the #orld, it is not
 practical to segment international markets on the basis of economic factors.
Ans#er$ IA!"
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/(
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116) 2n eval-ating different market segments, a firm sho-ld look at three factors$ segment si9e
and gro#th, segment str-ct-ral attractiveness, and company ob*ectives and reso-rces.
Ans#er$ 0'F"
iff$ % &age 'ef$ %41
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b*ective$ +/

117) At a recent marketing seminar, the feat-red speaker stated that a target market consists of a
set of b-yers #ho share common needs or characteristics that the company decides to serve. 0his
is a correct definition.
Ans#er$ 0'F"
iff$ 1 &age 'ef$ %41
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b*ective$ +/

11;) eveloping a stronger position #ithin several segments creates more total sales than
-ndifferentiated marketing across all segments.
Ans#er$ 0'F"
iff$ % &age 'ef$ %4%
!kill$ Concept
b*ective$ +/

11+) iche marketing offers smaller companies an opport-nity to compete by foc-sing their
limited reso-rces on serving niches that may be -nimportant to or overlooked by larger
companies.
Ans#er$ 0'F"
iff$ 1 &age 'ef$ %46
!kill$ Concept
b*ective$ +/

11=) Beca-se Cr-ise !hips 2nternational c-rrently has limited financial and personnel reso-rces,
it sho-ld avoid concentrated or niche marketing -ntil reso-rces are again s-bstantial.
Ans#er$ IA!"
iff$ % &age 'ef$ %46
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b*ective$ +/

11() 0ho-gh the -se of mass marketing has been #idespread in the past 144 years, for cent-ries
cons-mers #ere served as individ-als as b-sinesses practiced individ-al marketing.
Ans#er$ 0'F"
iff$ / &age 'ef$ %4;
!kill$ Concept
b*ective$ +/

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1%4) Mass marketing is becoming a marketing principle for the %1st cent-ry.

Ans#er$ IA!"
iff$ % &age 'ef$ %4+
!kill$ Concept
b*ective$ +/

1%1) When a company chooses a target marketing strategy, its choices are infl-enced by factors
related to company reso-rces, the degree of prod-ct variability, and the prod-ct<s lifecycle stage.
Ans#er$ 0'F"
iff$ / &age 'ef$ %4+
!kill$ Concept
b*ective$ +/

1%%) A prod-ct<s position is the #ay the prod-ct is defined by the retailers #ho sell it to target
markets. 2t is ho# it is defined on important attrib-tes the place the prod-ct occ-pies in the


retailers< minds relative to competing prod-cts.

Ans#er$ IA!"
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1%/) Cons-mers position prod-cts in their minds in order to simplify the b-ying process.
Ans#er$ 0'F"
iff$ / &age 'ef$ %4(
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b*ective$ +6

1%6) A market rarely e>ists for prod-cts that offer less and therefore cost less.
Ans#er$ IA!"
iff$ / &age 'ef$ %17
!kill$ Concept
b*ective$ +6

1%7) When Kia offers a ne# car model #ith the same feat-res as a comparable 0oyota or Iord
and provides a longer #arranty, Kia is follo#ing a moreforless strategy.
Ans#er$ IA!"
iff$ % &age 'ef$ %1;
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!kill$ Application
b*ective$ +6

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1%;) ">plain the fo-r ma*or steps in designing a c-stomerdriven marketing strategy.
Ans#er$ 0he first step is market segmentation$ dividing a market into smaller gro-ps of b-yers
#ith distinct needs, characteristics, or behaviors, #ho might re-ire separate prod-cts or
marketing mi>es. 0he company identifies different #ays to segment the market and develops
 profiles of the res-lting market segments. 0he second step is market targeting$ eval-ating each
market segment<s attractiveness and selecting one or more of the market segments to enter. 0he
third step is differentiation$ act-ally differentiating the firm<s market offering to create a s-perior
c-stomer val-e. Iinally, the last step is market positioning$ arranging for a market offering to
occ-py a clear, distinctive, and desirable place relative to competing prod-cts in the minds of
cons-mers.
iff$ % &age 'ef$ 1(11(%
AAC!B$ Analytic !kills
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1%+) ">plain the fo-r ma*or segmenting variables for cons-mer markets.
Ans#er$ :eographic segmentation divides the market into different geographic -nits, s-ch as
nations, regions, states, co-ntries, cities, or neighborhoods. Many companies are locali9ing their
 prod-cts, advertising, promotion, and sales efforts or are seeking to c-ltivate asyet -ntapped
geographic territory. emographic segmentation divides the market into gro-ps based on
variables s-ch as age, gender, family si9e, family life cycle, income, occ-pation, ed-cation,
religion, race, generation, and nationality. 0hese are the most pop-lar factors beca-se they are
easy to meas-re, and cons-mer needs, #ants, and -sage rates often vary closely #ith
demographic variables. &sychographic segmentation, on the other hand, divides b-yers into
different gro-ps based on social class, lifestyle, or personality characteristics. &eople in the same
demographic gro-p can have very different psychographic make-p. Behavioral segmentation
divides b-yers into gro-ps based on their kno#ledge, attit-des, -ses, or responses to a prod-ct.
Many marketers believe that behavior variables are the best starting point for b-ilding market
segments.
iff$ % &age 'ef$ 1(/
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!kill$ Application
b*ective$ +%

1%=) escribe ho# marketers -se m-ltiplesegmenting bases to their advantage.

Ans#er$ Marketers rarely limit their segmenting analysis to only one or a fe# variables. 2nstead,
they -se m-ltiple segmentation bases in an effort to identify smaller, betterdefined target gro-ps
of cons-mers #ho share likes, dislikes, lifestyles, and p-rchase behaviors. Companies often
 begin by segmenting their markets -sing a single base, and then e>pand -sing other bases.
iff$ % &age 'ef$ 1(=
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +%

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1%() Why do b-sinesses segment their markets

Ans#er$ By going after segments instead of the #hole market, companies have a m-ch better
chance to deliver val-e to c-stomers and to receive ma>im-m re#ards for close attention to
c-stomer needs. ike cons-mer gro-ps, b-siness b-yers can be segmented -sing geographic,
demographic, benefits so-ght, -ser stat-s, -sage rate, and loyalty stat-s segmentations. B-siness
 b-yers are also segmented by the variables of operating characteristics, p-rchasing approaches,
sit-ational factors, and personal characteristics.
iff$ % &age 'ef$ 1(=
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b*ective$ +%

1/4) Why do international markets need to be segmented

Ans#er$ Ie# companies have either the reso-rces or the #ill to operate in all, or even most, of
the co-ntries that dot the globe. ifferent co-ntries, even those that are close together, can vary
greatly in their economic, c-lt-ral, technological, and political make-p. 2nternational firms need
to gro-p their #orld markets into segments #ith distinctive b-ying needs and behaviors.
iff$ 1 &age 'ef$ 1((
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!kill$ Application
b*ective$ +%

1/1) 2magine that yo- are presenting a #orkshop on the 'e-irements for "ffective
!egmentation. Briefly describe the five items that #ill help yo-r a-dience -nderstand yo-r topic.
Ans#er$ 0he si9e, p-rchasing po#er, and profiles of the segments m-st be meas-rable. 0he
ma*or problem may be that the segment #ill be hard to identify and meas-re. 0he market
segments m-st be accessible@ that is they can be effectively reached and served. 0he segment
m-st be s-bstantial or largeOprofitable eno-gh to serve. 2t sho-ld be the largest possible
homogeneo-s gro-p #orth p-rs-ing #ith a tailored marketing program. 0o be differentiable, the
segments need to be concept-ally disting-ishable and respond differently to different marketing
mi> elements and programs. Iinally, the segment m-st be actionable, meaning that effective
 programs can be designed for attracting and serving cons-mers #ho make -p the segment.
iff$ / &age 'ef$ %44%41
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b*ective$ +%

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1/%) ">plain ho# companies identify attractive market segments and choose a target marketing
strategy.
Ans#er$ 0o target the best market segments, the company first eval-ates each segment<s si9e and
gro#th characteristics, str-ct-ral attractiveness, and compatibility #ith company ob*ectives and
reso-rces. 2t then chooses one of fo-r marketing strategiesPranging from very broad to very
narro# targeting. 0he seller can ignore segment differences and target broadly -sing
-ndifferentiated marketing. 0his involves massprod-cing, massdistrib-ting, and mass
 promoting nearly the same prod-ct in abo-t the same #ay to all cons-mers. r the seller can
adopt differentiated marketing developing different market offers for several segments.


Concentrated marketing involves foc-sing on only one or a fe# market segments. Iinally,
micromarketing is the practice of tailoring prod-cts and marketing programs to s-it the tastes of
specific individ-als and locations. Micromarketing incl-des local marketing and individ-al
marketing. Which targeting strategy is best depends on company reso-rces, prod-ct variability,
 prod-ct life cycle stage, market variability, and competitive marketing strategies.
iff$ / &age 'ef$ %41
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!kill$ Application
b*ective$ +/

1//) Compare and contrast fo-r ma*or segmenting strategies.

Ans#er$ An -ndifferentiated marketing strategy ignores market segment differences and targets
the #hole market #ith one offer. 0his massmarketing strategy foc-ses on #hat is common in the
needs of cons-mers rather than #hat is different. 2n contrast, a differentiated strategy targets
several market segments and designs separate offers for each. Companies hope for higher sales
and a stronger position #ithin each market segment. Concentrated or niche marketing goes after
a large share of one or a fe# segments or niches instead of going after a share of a large market.
0hese niches may be overlooked by or -nimportant to other marketers. iching offers smaller
companies an opport-nity to compete by foc-sing their limited reso-rces more effectively. Fsing
micromarketing, a company can tailor prod-cts and marketing programs to s-it the tastes of
specific individ-als and locations. 2t incl-des local and individ-al marketing.
iff$ % &age 'ef$ %41%4+
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +/

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1/6) 2n #hat #ays might a marketer engage in socially responsible target marketing
Ans#er$ !ocially responsible marketers #ork to avoid p-rposef-lly targeting v-lnerable or
disadvantaged cons-mers #ith controversial or potentially harmf-l prod-cts. 2n addition,
marketers may reconsider the marketing of ad-lt prod-cts that may spill over into the child
segment either intentionally or -nintentionally@ primary e>amples incl-de beer, cigarettes, and


fast food. 0he gro#th of the 2nternet has also presented potential problems namely that makers


of -estionable prod-cts or deceptive advertisers may more readily victimi9e the most v-lnerable
a-diences. Marketers can avoid becoming involved in these harmf-l sit-ations as they attempt to
reach vast n-mbers of cons-mers #ith s-ch precise, refined targeting strategies.
iff$ 1 &age 'ef$ %4=
AAC!B$ "thical 'easoning
!kill$ Application
b*ective$ +/

1/7) ">plain the concept of positioning for competitive advantage.

Ans#er$ A prod-ct<s position is the #ay the prod-ct is defined by cons-mers on important
attrib-tes the place the prod-ct occ-pies in cons-mers< minds relative to competing prod-cts.


&ositioning involves implanting the brand<s -ni-e benefits and differentiation in c-stomers<
minds. 0o carry o-t effective positioning, a company m-st identify a set of possible competitive
advantages -pon #hich to b-ild a problem, choose the right competitive advantages, and select
an overall positioning strategy. 0he company m-st then effectively comm-nicate and deliver the
chosen position to the market.
iff$ / &age 'ef$ %4(
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +6

1/;) Why do marketers segment the market

Ans#er$ Marketers divide heterogeneo-s markets into smaller gro-ps that can be reached more
efficiently #ith prod-cts and services that match their -ni-e tastes@ firms foc-s on b-yers it can
serve best and most profitably.
iff$ 1 &age 'ef$ 1(%
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +1

1/+) When might be the best time for a marketer to -se geographic segmentation
Ans#er$ :eographic segmentation may be especially profitable #hen cons-mers in different
regions, states, co-nties, and so forth have different b-ying behaviors and prod-ct or service
 preferences.
iff$ 1 &age 'ef$ 1(/
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +%

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1/=) Why might demographic segmentation be the most common type of segmentation
Ans#er$ emographic segmentation is often based on observable feat-res, making demographic
segmentation easier than other types.
iff$ % &age 'ef$ 1(6
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +%

1/() Why m-st marketers g-ard against stereotypes #hen -sing age and life cycle segmentation
Ans#er$ ot all cons-mers in the same age and life cycle categories share the same abilities and
interests@ some 64yearolds may have more in common #ith typical %4yearolds, for e>ample,
than #ith other 64yearolds.
iff$ % &age 'ef$ 1(6
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +%

164) 2f KoolAid promotes a yearro-nd campaign that HKoolAid isn<t *-st a s-mmertime
drink,H #hat type of segmentation is being -sed
Ans#er$ ccasion segmentation is being -sed in this scenario.
iff$ / &age 'ef$ 1(;
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +%

161) What is one #ay in #hich a marketer can attract nonloyal cons-mers
Ans#er$ Marketers can attract nonloyal cons-mers by p-tting the brand on sale or by altering
 price.
iff$ % &age 'ef$ 1(=
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +%

16%) 5o# might a marketer benefit most from -sing &'2JM "
Ans#er$ &eople and locations can be segmented into marketable gro-ps of likeminded
cons-mers, so marketers can more closely tailor their efforts to their target.
iff$ / &age 'ef$ 1(=
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +%

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16/) ist three variables not applicable to the cons-mer market that may be -sed to segment
 b-siness markets.
Ans#er$ perating characteristics, p-rchasing approaches, sit-ational factors, and personal
characteristics can all be -sed to segment b-siness markets b-t not cons-mer markets.
iff$ % &age 'ef$ 1(=
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +%

166) What factors may impact segment attractiveness

Ans#er$ 0he n-mber of competitors, s-bstit-te prod-cts, po#er of b-yers, and po#erf-l
s-ppliers may impact segment attractiveness.
iff$ % &age 'ef$ %41
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +/

167) What is one ma*or ass-mption made by marketers #ho choose to -se an -ndifferentiated
marketing strategy
Ans#er$ !-ch marketers ass-me that all cons-mers share something in common, regardless of
ho# different the cons-mers may be.
iff$ % &age 'ef$ %41
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +/

16;) ?8J Comp-ters, 2nc., a b-siness #ith limited reso-rces, is a market nicher. 5o# might
?8J benefit from this
Ans#er$ ?8J Comp-ters #ill have an opport-nity to compete by foc-sing its limited reso-rces
on serving niches that may be -nimportant to or overlooked by larger competitors.
iff$ % &age 'ef$ %46
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +/

16+) BMW allo#s c-stomers to design their o#n vehicle from a set of options at BMW<s Web
site. What is this called
Ans#er$ 0his is mass c-stomi9ation.
iff$ % &age 'ef$ %4;
AAC!B$ 'eflective 0hinking
!kill$ Application
b*ective$ +/

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16=) ">plain ho# market variability impacts the choice of a targetmarketing strategy.
Ans#er$ 2f most b-yers have the same tastes, b-y the same amo-nts, and react the same #ay to
marketing efforts, -ndifferentiated marketing may be appropriate, for e>ample.
iff$ / &age 'ef$ %4+
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +/

16() Why might a marketer of la-ndry detergent be interested in vie#ing a percept-al

 positioning map
Ans#er$ &ercept-al positioning maps sho# cons-mer perceptions of their brands vers-s
competing prod-cts on important b-ying dimensions. a-ndry detergent, for e>ample, may be
 placed on a percept-al map based on price and cleaning po#er@ this allo#s a marketer to vie#
ho# cons-mers perceive their prod-ct #ith respect to others< prod-cts along those dimensions.
iff$ / &age 'ef$ %4(
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!kill$ Application
b*ective$ +6

174) 2n #hat #ays might a marketer be able to gain competitive advantage thro-gh channel
differentiation
Ans#er$ Iirms that practice channel differentiation gain competitive advantage thro-gh the #ay
they design their channel<s coverage, e>pertise, and performance. !-ch factors as the level of
c-stomer service, speed of delivery, packaging, transportation type, and so on may play a role in
channel differentiation.
iff$ % &age 'ef$ %1/
AAC!B$ Analytic !kills
!kill$ Application
b*ective$ +6

6=
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