MARKET SEGMENTATION, TARGETING, AND POSITIONING OF SERVICES MULTIPLE CHOICE QUESTIONS 1.

At one time, firms scattered their marketing efforts (a shotgun approach) to reach consumers. Today, a firm is more likely to use: a. a ba ooka approach, !here special effects are used to e"plode into the buyer#s consciousness. b. a knife approach, !here the firm tries to cut to the most important product ad$antage. c. a rifle approach, !here the firm focuses on the buyers !ho ha$e greater interest in the $alues that the firm creates best. d. a pistol approach, !here the firm reali es that it has multiple chances to gain consumer interest. Answer: (c) %. &&&&&&&&&&&&&&&& is the process of di$iding a market into smaller groups of buyers !ith distinct needs, characteristics, or beha$iors !ho might re'uire separate products or marketing mi"es. a. (ass marketing b. (arket segmentation c. Target marketing d. (arket positioning Answer: ( ) ). &&&&&&&&&&&&&&&&&& is the process of e$aluating each market segment#s attracti$eness and selecting one or more segments to enter. a. (ass marketing b. (arket segmentation c. (arket targeting d. (arket positioning Answer: (c) *. +etting the competiti$e positioning for the product and creating a detailed marketing mi" is called: a. mass marketing. b. target marketing. c. market segmentation. d. marketing positioning. Answer: (!)

1*1

,. -uring !hich step of the marketing segmentation, targeting, and positioning process does the firm de$elop a marketing mi" for each segment. a. market segmentation b. market targeting c. market positioning d. The firm does not go through the de$elopment during any of the abo$e steps. Answer: (c) /. -uring one of the steps in the marketing segmentation, targeting, and positioning process, the marketer de$elops measures of segment attracti$eness. This procedure belongs in the category of: a. market segmentation. b. market targeting. c. market massing. d. market positioning. Answer: ( ) 0. 1hen companies di$ide large, heterogeneous markets into smaller segments that can be reached more efficiently !ith products and ser$ices that match their uni'ue needs, they are conducting a &&&&&&&&&&&&&&&&&&& process. a. marketing aggregation b. marketing positioning c. marketing target d. marketing segmentation Answer: (!) 2. (arket segmentation can be carried out at se$eral different le$els. 1hich of the follo!ing 1345- 63T 78 among these le$els. a. micromarketing b. segment marketing c. competition marketing d. niche marketing Answer: (c) 9. Another !ord for complete segmentation is: a. macromarketing. b. micromarketing. c. niche marketing. d. mass marketing. Answer: ( ) 1:. ;or most of the %:th century, firms practiced !hich of the follo!ing forms of marketing. a. mass marketing

1*%

b. micromarketing c. niche marketing d. segment marketing Answer: (") 11. 1hich of the follo!ing marketers epitomi ed the mass marketing strategy. a. <enry ;ord b. 7ill =ates c. ;.1. 1ool!orth d. Thomas A. 8dison Answer: (") 1%. 1hich of the follo!ing statements is closest to the traditional argument for mass marketing. a. ;ind a need and fill it. b. The largest potential market can lead to the lo!est costs, !hich translates into either lo!er prices or higher margins. c. The rifle approach rarely hits !hat it is aiming at. d. The consumer is king. 5ong li$e the king. Answer: ( 1). >solating broad segments that make up a market and adapting the marketing to match the needs of one or more segments is called &&&&&&&&&&&&&&&&&. a. niche marketing b. mass marketing c. segment marketing d. micromarketing Answer: (c) 1*. 1hen =eneral (otors designs specific models for different income and age groups, it is practicing !hich of the follo!ing marketing formats. a. micromarketing b. macromarketing c. mass marketing d. segment marketing Answer: (!) 1,. +egment marketing offers se$eral benefits o$er mass marketing. All of the follo!ing !ould be among those benefits 8?@8AT: a. the company can market more efficiently and target its programs to!ard only those consumers that it can ser$e best. 1*)

b. the company can fineBtune its programs to meet the needs of carefully defined segments. c. the company can reduce costs because of the ability to sell to customers oneBonB one. d. the company may face fe!er competitors if fe!er competitors are focusing on the company#s chosen market segment. Answer: (c) 1/. A company is practicing &&&&&&&&&&&&&&&& if it focuses on subsegments !ith distincti$e traits that may seek a special combination of benefits. a. micromarketing b. niche marketing c. mass marketing d. segment marketing Answer: ( ) 10. As an e"ample of &&&&&&&&&&&&&&&, a company could build sport utility $ehicles and direct marketing efforts to!ards the lu"ury +4C market (as does 5e"us). a. micromarketing b. niche marketing c. mass marketing d. segment marketing Answer: ( ) 12. American 8"press offers not only its traditional green cards but also gold cards, corporate cards, and e$en a black card, called the @enturian, !ith a D1,::: annual fee aimed at a small group of superpremium customers. 1hich of the follo!ing marketing efforts is American 8"press follo!ing !ith their credit card policies. a. macromarketing b. segment marketing c. niche marketing d. selfBmarketing Answer: (c)

19. &&&&&&&&&&&&&&&&& is the practice of tailoring products and marketing programs to suit the tastes of specific indi$iduals and locations. a. 6iche marketing b. (icromarketing c. +egment marketing d. (ass marketing

1**

Answer: ( ) %:. (icromarketing includes: a. segment marketing and niche marketing. b. mass marketing and demographic marketing. c. local marketing and indi$idual marketing. d. indi$idual marketing and selfBmarketing. Answer: (c) %1. &&&&&&&&&&&&&& in$ol$es tailoring brands and promotions to the needs and !ants of specific small groups such as cities, neighborhoods, and e$en specific stores. a. 6iche marketing b. 5ocal marketing c. -etail marketing d. >ndi$idual marketing Answer: ( ) %%. All of the follo!ing are considered to be dra!backs of local marketing 8?@8AT: a. it can dri$e up manufacturing and marketing costs by reducing economies of scale. b. it can create logistical problems !hen the company tries to meet $aried re'uirements. c. it can attract un!anted competition. d. it can dilute the brand#s o$erall image. Answer: (c) %). &&&&&&&&&&&&&&&& is tailoring products and marketing programs to the needs and preferences of indi$idual customers. a. 6iche marketing b. 5ocal marketing c. +elfBmarketing marketing d. >ndi$idual marketing Answer: (!)

%*. >ndi$idual marketing is kno!n by a $ariety of names. All of the follo!ing !ould appropriately be called indi$idual marketing 8?@8AT: a. monoBmarketing. b. oneBtoBone marketing. c. customi ed marketing. d. marketsBofBone marketing.

1*,

Answer: (") %,. &&&&&&&&&&&&&& is the process through !hich firms interact oneBtoBone !ith masses of customers to create customerBuni'ue $alue by designing products and ser$ices tailorBmade to indi$idual needs. a. (ass marketing b. -etail marketing c. (ass globali ation d. (ass customi ation Answer: (!) %/. The mo$e to!ard indi$idual marketing mirrors the trend in consumer &&&&&&&&&. a. backlash b. selfBmarketing. c. dialog marketing d. niche marketing Answer: ( ) %0. All of the follo!ing are considered to be maEor $ariables for segmenting markets 8?@8AT: a. geographic $ariables. b. trait $ariables. c. demographic $ariables. d. psychographic $ariables. Answer: ( ) %2. >f a marketer attempts segmentation of a market by di$iding the market into different units based on nations, regions, states, counties, cities, or e$en neighborhoods, then the marketer is practicing &&&&&&&&&&&& segmentation. a. demographic b. geographic c. political d. cartographic Answer: ( ) D#$$#c%&'(: ()) P"*e: +,-, T" &e ./) Answer: (") D#$$#c%&'(: (+) P"*e: +,+ ):. All of the follo!ing !ould be !ays to segment !ithin the category of psychographic segmentation 8?@8AT: a. social class. b. occupation. c. lifestyle. d. personality. 1*/

Answer: ( ) )1. All of the follo!ing !ould be !ays to segment !ithin the category of beha$ioral $ariable segmentation 8?@8AT: a. occasions. b. user status. c. loyalty status. d. lifestyle. Answer: (!) )%. &&&&&&&&&&&&&&& factors are the most popular bases for segmenting customer groups. a. =eographic b. -emographic c. Asychographic d. 7eha$ioral Answer: ( ) )). &&&&&&&&&&&&&&&&& factors or $ariables are generally easier to measure than most of the other types of $ariables or factors. a. =eographic b. -emographic c. Asychographic d. 7eha$ioral Answer: ( ) )*. Age is often a poor predictor of a person#s lifeBcycle, health, !ork, or family status. Therefore, !hen using age and lifeBcycle segmentation, the marketer must guard against: a. stereotyping. b. gender bias. c. racial bias. d. intellectual bias. Answer: (") ),. Aroctor F =amble Eoined a gro!ing list of marketers !ho use &&&&&&&&&& segmentation !hen they de$eloped +ecret, a brand specially formulated for a !oman#s chemistry. a. geographic b. income c. benefit d. gender Ans!er: (d) 1*0

1*2