Question 1

Which is the first step in market segmentation?

Accepted Answer

A)   Finding one or two demographic characteristics to divide up the whole mass market.
B)   Clustering people with similar needs into a market segment.
C)   Naming a broad product-market of interest to the firm.
D)   Evaluating market segments to determine if they are large enough.
E)   None of these alternatives is the first step in market segmentation.

Question 2

The main difference between a "product-market" and a "generic market" is whether customer needs are similar or different.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is True regarding positioning?

Accepted Answer

A)   Positioning refers to how managers think about proposed or present brands in a market.
B)   Positioning issues are not important when competitors in a market appear to be very similar.
C)   Usually, the positions of products are related to six or seven product features that are important to product managers.
D)   None of these statements is true.

Question 4

When moving to international markets, some firms insist that local operations and decisions should be handled by natives because:

Accepted Answer

A)   their operations and decision making can be centralized.
B)   international markets are less particular about segmenting dimensions.
C)   the needs and preferences of target customers are the same in all submarkets.
D)   their local responsiveness can be reduced.
E)   the natives have a feel for the market.

Question 5

Which of the following is the best example of a "product-market?"

Accepted Answer

A)   The MP3 player market
B)   The young adult exercise market
C)   The software market
D)   The convenience market
E)   The status symbol market

Question 6

Cost considerations usually favor more aggregating and larger market segments, but smaller segments may be required to satisfy needs more exactly.

Accepted Answer

A) True 
 B)False

Question 7

A food processor considering snack-food opportunities identified three possible market segments and gave them "nicknames": the dieters, health faddists, and nutrition-conscious parents. It developed a marketing mix around a line of good tasting, nutritious children's snacks. The firm is apparently

Accepted Answer

A)   relying on cluster analysis techniques.
B)   using a multiple target market approach.
C)   using a single target market approach.
D)   using a combined target market approach.
E)   ignoring the criteria that good market segments should be operational.

Question 8

To understand the narrowing-down process, it's useful for mangers to think in terms of a _____ market and a _____ market.

Accepted Answer

A)   generic; product
B)   buyer's; seller's
C)   goods; services
D)   primary; secondary
E)   risky; certain

Question 9

A combined target market approach

Accepted Answer

A)   sacrifices possible economies of scale.
B)   requires more investment than a multiple target market approach.
C)   may not satisfy customers as well as the multiple target market approach.
D)   trades off sales volume to provide a small market superior value.
E)   aims at two or more segments with multiple marketing mixes.

Question 10

A detailed customer database, containing past purchases and other segmenting information, is used to focus marketing efforts on individual customers in a:

Accepted Answer

A)   Clustering management system.
B)   Product positioning matrix.
C)   Product differentiation matrix.
D)   Diversification management system.
E)   Customer relationship management system.

Question 11

Compared to a product-market, a generic market:

Accepted Answer

A)   Is more narrowly defined.
B)   Has sellers offering a more diverse set of products.
C)   Can never help marketers identify opportunities.
D)   None of these is a good answer.

Question 12

Having segmented its broad product-market, Blue Chip, Inc. feels that three segments are similar enough that-together-they can be treated as one large target market and offered the same marketing mix. Blue Chip, Inc. is following the ______________ approach.

Accepted Answer

A)   mass marketing
B)   multiple target market
C)   combined target market
D)   single target market
E)   None of these alternatives is correct.

Question 13

By differentiating the marketing mix to do a better job meeting customers' needs, the firm builds a competitive advantage.

Accepted Answer

A) True 
 B)False

Question 14

A marketing manager has just learned about generic markets. This may lead the manager

Accepted Answer

A)   to see a larger set of potential competitors.
B)   to put less emphasis on market penetration or market development opportunities and more emphasis on product development opportunities.
C)   to think about new ways of satisfying the needs of her current customers.
D)   All of these alternatives are correct.

Question 15

A product-market is one in which

Accepted Answer

A)   demand is inelastic.
B)   products that are close substitutes for each other compete for customers by trying to satisfy very similar needs.
C)   breakthrough opportunities are no longer possible.
D)   one seller has a patent for a superior product and other competitors try to imitate the leader.
E)   All of these alternatives are true.

Question 16

A firm's "relevant market for finding opportunities" should:

Accepted Answer

A)   have no geographic boundaries.
B)   be bigger than the firm's present product-market-but not so big that the firm couldn't be an important competitor.
C)   be no larger than the firm's present product-market.
D)   usually be named in product-related terms.
E)   have no strong competitors.

Question 17

Saying that a "good" product-market segment should be substantial means

Accepted Answer

A)   that the company does not have to worry about substantial competition for a long time.
B)   that people should have substantially different reactions to marketing mix variables.
C)   it should be large enough to be profitable.
D)   that people in different market segments should be as different as possible.
E)   None of these choices is correct.

Question 18

Product type describes the goods and/or services that customers want.

Accepted Answer

A) True 
 B)False

Question 19

Product type determining dimensions

Accepted Answer

A)   are generally relevant to purchasing behavior.
B)   affect the customer's purchase of a specific product brand.
C)   affect the customer's choice of a specific kind of product.
D)   are relevant to including a customer type in the product-market.
E)   are less specific than qualifying dimensions.

Question 20

Segmenting dimensions

Accepted Answer

A)   are useful for segmenting consumer markets, but not business markets.
B)   help guide marketing mix planning.
C)   are always demographic or geographic.
D)   fall into two general categories: qualifying and purchasing.
E)   may be called qualifying or non-qualifying.

Exam 4: Focusing Marketing Strategy With Segmentation and Positioning

Segmenting dimensions

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Cost considerations usually favor more aggregating and larger market segments, but smaller segments may be required to satisfy needs more exactly.

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A marketing manager has just learned about generic markets. This may lead the manager

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To understand the narrowing-down process, it's useful for mangers to think in terms of a _____ market and a _____ market.

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When moving to international markets, some firms insist that local operations and decisions should be handled by natives because:

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The main difference between a "product-market" and a "generic market" is whether customer needs are similar or different.

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Which of the following is the best example of a "product-market?"

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A product-market is one in which

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Product type determining dimensions

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A combined target market approach

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A firm's "relevant market for finding opportunities" should:

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Having segmented its broad product-market, Blue Chip, Inc. feels that three segments are similar enough that-together-they can be treated as one large target market and offered the same marketing mix. Blue Chip, Inc. is following the ______________ approach.

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Compared to a product-market, a generic market:

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By differentiating the marketing mix to do a better job meeting customers' needs, the firm builds a competitive advantage.

Correct AnswerverifiedShow Answer

A food processor considering snack-food opportunities identified three possible market segments and gave them "nicknames": the dieters, health faddists, and nutrition-conscious parents. It developed a marketing mix around a line of good tasting, nutritious children's snacks. The firm is apparently

Correct AnswerverifiedShow Answer

Which of the following statements is True regarding positioning?

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Saying that a "good" product-market segment should be substantial means

Correct AnswerverifiedShow Answer

Product type describes the goods and/or services that customers want.

Correct AnswerverifiedShow Answer

Which is the first step in market segmentation?

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A detailed customer database, containing past purchases and other segmenting information, is used to focus marketing efforts on individual customers in a:

Correct AnswerverifiedShow Answer

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To understand the narrowing-down process, it's useful for mangers to think in terms of a _ market and a _ market.

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