kotler chapter 7 mcq

7/24/2019 Kotler Chapter 7 MCQ

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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 marketingC) Market targeting

) !egmenting

") ifferentiationAns#er$ C

iff$ % &age 'ef$ 1(1

!kill$ Concept

b*ective$ +1

%) What are the fo-r steps, in order, to designing a c-stomerdriven marketing strategy

A) market segmentation, differentiation, positioning, and targeting

B) positioning, market segmentation, mass marketing, and targetingC) 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

iff$ % &age 'ef$ 1(1!kill$ Concept

b*ective$ +1

/) 0hro-gh market segmentation, companies divide large, heterogeneo-s markets into smallersegments that can be reached more ________ #ith prod-cts and services that match their -ni-e

needs.A) "fficientlyB) "ffectively

C) 2ntensely

) 2ndirectly") Both A and B

Ans#er$ "

iff$ % &age 'ef$ 1(%

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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 #ayB) 2s no single #ay

C) 2s a most effective #ay

) Are limited #ays") Are fo-r #ays

Ans#er$ B

iff$ % &age 'ef$ 1(%!kill$ Concept

b*ective$ +%

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) :eographicB) Benefit

C) "nd-se

) C-stomer ") 2mage

Ans#er$ A

iff$ 1 &age 'ef$ 1(/


;) &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) behavioralC) lifestyle

) demographic

") psychographicAns#er$

iff$ 1 &age 'ef$ 1(6

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b*ective$ +%

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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) demographicB) gender

C) psychographic

) behavioral") geographic

Ans#er$ A


b*ective$ +%

=) 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$ iff$ % &age 'ef$ 1(6

!kill$ Concept

b*ective$ +%

() Marketers m-st be most caref-l to g-ard against #hich of the follo#ing #hen -sing age and

life cycle segmentationA) -nderestimating

B) stereotyping

C) traditional marketing) c-lt-ral bias

") gender bias

Ans#er$ Biff$ % &age 'ef$ 1(6

AAC!B$ "thical 'easoning

!kill$ Concept

b*ective$ +%

14) When &ositive 2mage, 2nc., caters to clothing, cosmetics, and toiletries markets, it is most

likely -sing #hich type of segmentationA) age and life cycle

B) gender

C) behavior ) psychographic

") geographic

Ans#er$ B


b*ective$ +%

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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


b*ective$ +%

1%) 0he division of b-yers into gro-ps based on their kno#ledge, attit-des, -ses, or responses toa prod-ct is ________ segmentation.

A) behavioral

B) psychographic

C) age and life cycle) demographic

") geographicAns#er$ A

iff$ 1 &age 'ef$ 1(;


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 si9eC) gender

) age

") beneficialAns#er$ A

iff$ % &age 'ef$ 1(;

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b*ective$ +%

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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

itemA) behavioral

B) psychographic

C) occasion) imp-lse

") emergency

Ans#er$ Ciff$ % &age 'ef$ 1(;

!kill$ Concept

b*ective$ +%

17) Markets can be segmented into gro-ps of non-sers, e>-sers, potential -sers, firsttime -sers,

and reg-lar -sers of a prod-ct. 0his method of segmentation is called ________.

A) -ser stat-s

B) -sage ratesC) benefit

) behavior ") loyalty stat-s

Ans#er$ A

iff$ 1 &age 'ef$ 1(+!kill$ Concept

b*ective$ +%

1;) Cons-mers can sho# their allegiance to brands, stores, or companies. Marketers can -se thisinformation to segment cons-mers by ________.

A) -ser stat-s

B) loyalty stat-sC) store type

) brand preference

") -sage rateAns#er$ B

iff$ 1 &age 'ef$ 1(+

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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 #ithB) -sed #ith

C) overlooked #ith

) similar to") complementary to

Ans#er$ A

iff$ % &age 'ef$ 1(=!kill$ Concept

b*ective$ +%

1=) Many firms make an effort to identify smaller, betterdefined target gro-ps by -sing ________.

A) -ser rates

B) loyalty segmentation

C) m-ltiple segmentation bases) positioning

") mass marketingAns#er$ C

iff$ / &age 'ef$ 1(=


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

Ans#er$ "iff$ / &age 'ef$ 1(=

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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@ demographicB) -ser stat-s@ -ser loyalty

C) benefits@ b-ying behavior

) age and lifecycle@ psychographic") income@ -sage rate

Ans#er$ C

iff$ % &age 'ef$ 1((!kill$ Concept

b*ective$ +%

%1) 2nternational rilling Company segments its foreign markets by their overall level of

economic development. 0his firm segments on #hat basis

A) political factorsB) legal factors

C) geographic factors

) economic factors") c-lt-ral factors

Ans#er$

iff$ 1 &age 'ef$ 1((


%%) e>-s targets #ealthy cons-mers #ith similar needs and b-ying behaviors, even tho-gh thecons-mers are located in different co-ntries. 0his is an e>ample of ________.

A) intermarket segmentation

B) loyalty segmentationC) lifecycle segmentation

) targeting segmentation

") psychographic segmentationAns#er$ A

iff$ 1 &age 'ef$ %44

!kill$ Concept

b*ective$ +%

%/) 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!kill$ Concept

b*ective$ +%

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%6) When a b-siness market segment is large or profitable eno-gh to serve, it is termed

________.

A) meas-rableB) accessible

C) s-bstantial

) actionable") differentiable

Ans#er$ C


b*ective$ +%

%7) When an effective program can be designed for attracting and serving a chosen segment, the

segment is best described as ________.

A) accessibleB) meas-rable

C) reachable

) actionable") differentiable

Ans#er$

iff$ % &age 'ef$ %41


%;) 8o- have discovered that the segments yo- are targeting are concept-ally disting-ishable andrespond differently to different marketing mi> elements and programs. 0hese segments are

________.

A) accessibleB) meas-rable

C) reachable

) differentiable") observable

Ans#er$






%+) 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 si9eB) segment gro#th

C) segment str-ct-ral attractiveness

) company val-es") company reso-rces

Ans#er$

iff$ / &age 'ef$ %41!kill$ Concept

b*ective$ +/

%=) Barney 5opkins has compiled a list of things that make segments more attractive. Which oneof 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-rcesAns#er$


!kill$ Conceptb*ective$ +/

%() Which of the follo#ing is 0 one of the reasons a segment #o-ld be less attractive to acompany

A) strong competitors

B) s-bstit-te prod-ctsC) concentrated market

) po#er of b-yers

") po#er of s-ppliersAns#er$ C


!kill$ Concept

b*ective$ +/

/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





/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 marketingB) differentiated marketing

C) target marketing

) concentrated marketing") micromarketing

Ans#er$ A

iff$ 1 &age 'ef$ %41!kill$ Concept

b*ective$ +/

/%) 0he 77yearold baby boomers share common needs in m-sic and performers. When a m-siccompany decides to serve this gro-p, the gro-p is called aDn) ________.

A) market segment

B) target market

C) #elldefined market) differentiated market

") -ndifferentiated marketAns#er$ B



//) When e# &ort !hipping -ses segmented marketing, it targets several segments and designsseparate offers for each one. 0his approach is called ________ marketing.

A) -ndifferentiated

B) differentiatedC) target

) individ-al

") nicheAns#er$ B

iff$ % &age 'ef$ %4%

!kill$ Concept

b*ective$ +/

/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

b*ective$ +/

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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@ costsB) sales analysis@ sales

C) increased sales@ increased costs

) geographic segmentation@ demographic segmentation") attit-des@ perceptions

Ans#er$ C


b*ective$ +/

/;) &rocter E :amble sells si> brands of la-ndry detergent in the Fnited !tates, each designedfor 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 allsegments

B) lost c-stomer loyalty d-e to lack of brand loyaltyC) increased costs for separate marketing plans for each brand

) other s-ppliers controlling pricing

") lack of reso-rces to s-cceed in an attractive segmentAns#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 massmarket companies@ affordable pricing

Ans#er$


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 marketC) large@ one or a fe# niches

) large@ the mass market

") moderate@ localAns#er$ C



/() 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$ Biff$ % &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 citiesB) in mailorder catalogs

C) on the 2nternet

) near ma*or competitors") far from competitors

Ans#er$ C

iff$ 1 &age 'ef$ %47AAC!B$ Fse of 20

!kill$ Concept

b*ective$ +/

61) Which of the segmenting strategies carries higherthanaverage risks in cons-mer markets

A) concentratedB) mass

C) differentiated

) -ndifferentiated") m-ltiplesegment

Ans#er$ A



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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 marketingC) 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 strategyA) segmented strategy

B) local marketing

C) differentiated marketing) mass marketing

") -ndifferentiated marketing

Ans#er$ Biff$ / &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;


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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 presentC) #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 aboveAns#er$ C

iff$ / &age 'ef$ %4;

AAC!B$ M-ltic-lt-ral and iversity!kill$ Concept

b*ective$ +/

6+) When WalMart 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 marketingAns#er$ C



6=) When a company interacts oneonone #ith large n-mbers of c-stomers to create c-stomer

-ni-e val-e by designing prod-cts and services tailormade to individ-al needs, it is follo#ing ________.

A) onetoone marketing

B) mass marketingC) mass c-stomi9ation

) differentiated marketing

") locali9ationAns#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) selfimaging

B) c-stomi9ing

C) selfmarketing) tastes

") selfconcept-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-rcesB) degree of prod-ct variability

C) prod-ct lifecycle 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 bedisastro-s.

A) differentiated

B) -ndifferentiated

C) concentrated) c-stomi9ed

") locali9edAns#er$ B

iff$ % &age 'ef$ %4+


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=


!kill$ Concept

b*ective$ +/




7/) 2t is considered socially irresponsible #hen the marketing of ad-lt prod-cts spills over into

the ________ segment.

A) elderlyB) 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 fastfood marketers have generated m-ch controversy in recent years by

their attempts to target ________.

A) teens

B) the poor C) innercity 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-cationC) disadvantages

) harm

") e>pensesAns#er$ A

iff$ % &age 'ef$ %4(



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7;) 2n target marketing, the iss-e is not really #ho is targeted, b-t rather ________ and for

________.

A) #hy@ #hatB) 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-rersB) #holesalers

C) retailers

) cons-mers") s-ppliers

Ans#er$

iff$ 1 &age 'ef$ %4(

!kill$ Conceptb*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 themC) #ith or #itho-t the help of marketers

) only rel-ctantly

") based on nearby competitors< positionsAns#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-ctC) !electing an overall positioning strategy

) "ffectively comm-nicating and delivering the chosen position to the market

") !electing the right competitive advantagesAns#er$ B


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 advantageB) positioning advantage

C) cost advantage

) efficiency advantage") synergy

Ans#er$ A



;%) A company or market offer can be differentiated along the lines of prod-ct, image, services,channels, or ________.

A) prices

B) nonprice factorsC) people

) c-stomer service

") locationAns#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 performanceA) 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




;6) When firms -se symbols, colors, or characters to convey their personalities, they are -sing

________ differentiation.

A) imageB) 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 forA) -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 oneA) important

B) distinctive

C) divisible) affordable

") noticeable

Ans#er$ C

iff$ / &age 'ef$ %16!kill$ Concept

b*ective$ +6




;+) 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 propositionB) target marketing

C) capt-ring the cons-mers< attention

) val-e profiling") differentiated marketing

Ans#er$ A

iff$ % &age 'ef$ %16AAC!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 brandH is fo-nd in the

________.

A) -ality image

B) c-stomer servicesC) val-e proposition

) differentiation") pricing and promotion str-ct-re

Ans#er$ C


b*ective$ +6

;() What competitive positioning can attack a moreformore strategy by introd-cing a brand

offering #ith comparable -ality at a lo#er price

A) moreforthesameB) moreforless

C) sameforless

) lessform-chless") allornothing

Ans#er$ A



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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


C) sameforless

) lessform-chless") allornothing

Ans#er$ C


b*ective$ +6

+1) Hessform-chlessH 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$ Biff$ 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) moreforthesame

B) moreforless

C) sameforless) lessform-chless

") allornothing

Ans#er$ iff$ % &age 'ef$ %17

!kill$ Concept

b*ective$ +6

+/) Which diffic-lttos-stain positioning strategy attempts to deliver the HbestofbothH


C) sameforless

) lessform-chless") moreformore

Ans#er$ B



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+6) Which type of statement first states the prod-ct<s membership in a category and then sho#s

its pointofdifference from other members of the category

A) mission statementB) 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 bein 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 differentiationC) 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-descollege 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-stomerdriven marketing

strategyA) market segmenting

B) mass marketing

C) differentiation) targeting

") positioning

Ans#er$

iff$ 1 &age 'ef$ 1(1AAC!B$ 'eflective 0hinking

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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 factorsB) 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 cycleC) psychographic

) behavioral") generational

Ans#er$ B

iff$ 1 &age 'ef$ 1(6AAC!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 moreLB) Most 14yearold 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


AAC!B$ Analytic !kills!kill$ Application

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

A) psychographic segmentation

B) demographic segmentationC) occasion segmentation

) intermarket segmentation

") A and Ans#er$ A

iff$ / &age 'ef$ 1(;

AAC!B$ 'eflective 0hinking!kill$ Application

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=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 delivereach benefit. What is this segmentation method called

A) benefit

B) behavioralC) age and life cycle

) psychographic

") demographic

Ans#er$ Aiff$ 1 &age 'ef$ 1(;

AAC!B$ 'eflective 0hinking

!kill$ Applicationb*ective$ +%

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=/) !hampoo marketers rate b-yers as light, medi-m, or heavy prod-ct -sers. 0his is ________

segmentation.

A) benefitB) -ser stat-s

C) -sage rate

) psychographic") occasions

Ans#er$ C

iff$ 1 &age 'ef$ 1(+AAC!B$ 'eflective 0hinking

!kill$ Application

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=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) crossc-lt-ral

C) c-lt-ral) intermarket

") individ-al

Ans#er$

iff$ % &age 'ef$ %44AAC!B$ 'eflective 0hinking

!kill$ Application

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=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


!kill$ Application

b*ective$ +%




=;) olene "nterprises mass prod-ces an allp-rpose floor cleaner, mass distrib-tes it and mass

promotes it. 0his firm -ses ________ marketing.

A) segmentedB) -ndifferentiated

C) traditional

) differentiated") none of the above

Ans#er$ B

iff$ 1 &age 'ef$ %41AAC!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$ %41AAC!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 shelvesA) 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

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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) -ndifferentiatedB) differentiated

C) mass

) concentrated") geographically dispersed

Ans#er$


!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 differentdemographically. 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 marketingB) psychographic segmentation

C) micromarketing

) demographic segmentation

") A and CAns#er$ "



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 marketingA) onetoone

B) c-stomi9ed

C) marketsofone

) 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 differentiationA) image

B) people

C) services) prod-ct

") channel

Ans#er$ Biff$ % &age 'ef$ %1/


!kill$ Application

b*ective$ +6

(/) Iord Motor Company emphasi9es HN-ality IirstIord 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$ Biff$ % &age 'ef$ %1/


!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) moreforthe same

B) moreforlessC) sameforless

) lessform-chless

") A or CAns#er$



!kill$ Applicationb*ective$ +6




(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 -seA) moreforthesame

B) moreformore

C) repositioning) thesameforless

") moreforless

Ans#er$ Biff$ 1 &age 'ef$ %17


!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 hardtos-stain val-e proposition is called ________.

A) moreforthesame

B) moreforlessC) moreformore

) sameforless

") sameformore

Ans#er$ Biff$ % &age 'ef$ %1;



(+) !-perior A-to !ales, a chain of highend -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 statementB) vision statement

C) competitive statement

) positioning statement

") company statementAns#er$



b*ective$ +6




Refer to the scenario belo to anser the folloing !uestions"

5erb Marks began making #ooden #riting -tensils as a hobby -ntil Mel 8oderrecogni9ed 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 #ereeno-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 sevenstate area. 5erb

#as offered a t#oyear 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 ofcontrol. 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-slyestablished 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-lltime 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 notal#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 marketA) 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 specialtyshop c-stomers, 5erb is -sing

________ marketing.

A) massB) -ndifferentiated

C) niche

) mass c-stomi9ation") individ-al

Ans#er$ C


!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 marketingC) -ndifferentiated marketing

) mass c-stomi9ation

") micromarketing

Ans#er$ iff$ % &age 'ef$ %4;


!kill$ Applicationb*ective$ +/

141) 0oday, most companies have moved back to#ard mass marketing and are being choosierabo-t the c-stomers #ith #hom they #ish to b-ild relationships.

Ans#er$ 0'F"


b*ective$ +1

14%) 8o-r company #ants to move a#ay from mass marketing and engage in c-stomerdrivenmarketing. 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"iff$ 1 &age 'ef$ 1(/



146) emographic segmentation -ses different marketing approaches for different time periodsof people<s lives and different family sit-ations.

Ans#er$ IA!"



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, highend cars, travel, and financial services. 0his firm most

likely -ses income segmentation.Ans#er$ 0'F"




14;) :ender segmentation has long been -sed in clothing, cosmetics, toiletries, and maga9ines.Ans#er$ 0'F"



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(;


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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(+


b*ective$ +%

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(=!kill$ Concept

b*ective$ +%

114) Ior simplicity<s sake, most marketers generally limit their segmentation analysis to one or afe# 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 andanaly9e geographic, demographic, lifestyle, and behavioral data.

Ans#er$ 0'F"

iff$ % &age 'ef$ 1(=AAC!B$ Fse of 20

!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((

AAC!B$ M-ltic-lt-ral and iversity


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!"

iff$ % &age 'ef$ 1((


b*ective$ +%

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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

!kill$ Concept

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. 0hisis a correct definition.

Ans#er$ 0'F"



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"



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!"



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$ +/




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 factorsrelated to company reso-rces, the degree of prod-ct variability, and the prod-ct<s lifecycle 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-testhe place the prod-ct occ-pies in the

retailers< minds relative to competing prod-cts.

Ans#er$ IA!"iff$ 1 &age 'ef$ %4(

AAC!B$ Comm-nication

!kill$ Concept

b*ective$ +6

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(

!kill$ Concept

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 moreforless strategy.Ans#er$ IA!"



b*ective$ +6




1%;) ">plain the fo-r ma*or steps in designing a c-stomerdriven 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 ormarketing 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. 0hethird 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 ofcons-mers.

iff$ % &age 'ef$ 1(11(%

AAC!B$ Analytic !kills


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 asnations, 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 asyet -ntappedgeographic 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 areeasy 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 segmentationdivides 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(/



1%=) escribe ho# marketers -se m-ltiplesegmenting 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, betterdefined 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(=


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 toc-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.



b*ective$ +%

1/4) Why do international markets need to be segmentedAns#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((

AAC!B$ M-ltic-lt-ral and iversity!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 marketsegments 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, thesegments 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


!kill$ Application

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 andgro#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 massprod-cing, massdistrib-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 marketingdeveloping 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.




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 massmarketing strategy foc-ses on #hat is common in the

needs of cons-mers rather than #hat is different. 2n contrast, a differentiated strategy targetsseveral 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. Fsingmicromarketing, 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+






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

segmenteither 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 makersof -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 toreach vast n-mbers of cons-mers #ith s-ch precise, refined targeting strategies.

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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 competitiveadvantages -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(



1/;) Why do marketers segment the marketAns#er$ Marketers divide heterogeneo-s markets into smaller gro-ps that can be reached moreefficiently #ith prod-cts and services that match their -ni-e tastes@ firms foc-s on b-yers it can

serve best and most profitably.

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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.

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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



1/() Why m-st marketers g-ard against stereotypes #hen -sing age and life cycle segmentationAns#er$ ot all cons-mers in the same age and life cycle categories share the same abilities and

interests@ some 64yearolds may have more in common #ith typical %4yearolds, for e>ample,

than #ith other 64yearolds.

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164) 2f KoolAid promotes a yearro-nd campaign that HKoolAid isn<t *-st a s-mmertime

drink,H #hat type of segmentation is being -sedAns#er$ ccasion segmentation is being -sed in this scenario.

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161) What is one #ay in #hich a marketer can attract nonloyal cons-mersAns#er$ Marketers can attract nonloyal cons-mers by p-tting the brand on sale or by altering

price.

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16%) 5o# might a marketer benefit most from -sing &'2JM "

Ans#er$ &eople and locations can be segmented into marketable gro-ps of likeminded

cons-mers, so marketers can more closely tailor their efforts to their target.iff$ / &age 'ef$ 1(=



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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 personalcharacteristics can all be -sed to segment b-siness markets b-t not cons-mer markets.



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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



167) What is one ma*or ass-mption made by marketers #ho choose to -se an -ndifferentiatedmarketing strategy

Ans#er$ !-ch marketers ass-me that all cons-mers share something in common, regardless of

ho# different the cons-mers may be.


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16;) ?8J Comp-ters, 2nc., a b-siness #ith limited reso-rces, is a market nicher. 5o# might

?8J benefit from thisAns#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.


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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;



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16=) ">plain ho# market variability impacts the choice of a targetmarketing 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+



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.

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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 #aythey 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/



kotler chapter 7 mcq

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