BSB40215 Certificate IV in Business

Customer-Driven Marketing Strategy: Creating Value for Target Customers

1) ________ consists of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

1. A) Positioning
2. B) Mass customization
3. C) Market targeting
4. D) Market segmentation
5. E) Differentiation

2) ________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

1. A) Mass customization
2. B) Market targeting
3. C) Market segmentation
4. D) Differentiation
5. E) Positioning

3) ________ involves actually distinguishing the firm’s market offering to create superior customer value.

1. A) Mass customization
2. B) Differentiation
3. C) Market segmentation
4. D) Diversifying
5. E) Targeting

4) When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes many college students, as an untapped group of potential customers for their new line of products, they were engaging in ________.

1. A) occasion segmenting
2. B) local marketing
3. C) market diversification
4. D) market targeting
5. E) product positioning

5) ________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

1. A) Mass customization
2. B) Positioning
3. C) Segmentation
4. D) Differentiation
5. E) Targeting

6) Mass marketing involves identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.

7) The customer-driven marketing strategy involves four steps: market segmentation, market targeting, positioning, and differentiation.

8) What is differentiation?

9) Explain the four major steps in designing a customer-driven marketing strategy.

10) ________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods.

1. A) Benefit segmentation
2. B) Geographic segmentation
3. C) Demographic segmentation
4. D) Psychographic segmentation
5. E) Occasion segmentation

11) “Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods.” This is an example of ________.

1. A) geographic segmentation
2. B) product diversification
3. C) branding
4. D) psychographic segmentation
5. E) demographic segmentation

12) ____ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

1. A) Geographic
2. B) Benefit
3. C) Occasion
4. D) Psychographic
5. E) Demographic

13) Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?

1. A) geographic segmentation
2. B) benefit segmentation
3. C) occasion segmentation
4. D) demographic segmentation
5. E) psychographic segmentation

14) A company selling child-care products ran a television ad depicting women as being primarily responsible for childcare. Many women viewers considered this regressive, alleging that the ad failed to recognize the much more diversified role of women in today’s world. This is an example of ________.

1. A) cause marketing
2. B) stereotyping
3. C) niche marketing
4. D) scapegoating
5. E) positioning

15) ____ segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

1. A) Behavioral
2. B) Gender
3. C) Benefit
4. D) Occasion
5. E) Geographic

16) Gilron Holidays runs a premium membership club that caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts on select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach.

1. A) gender
2. B) income
3. C) occasion
4. D) benefit
5. E) geographic

17) _____ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.

1. A) Benefit
2. B) Occasion
3. C) Geographic
4. D) Demographic
5. E) Psychographic

18) Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.

1. A) demographic segmentation
2. B) geographic segmentation
3. C) benefit segmentation
4. D) psychographic segmentation
5. E) occasion segmentation

19) ________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.

1. A) Behavioral
2. B) Psychographic
3. C) Age and life cycle
4. D) Gender
5. E) Geographic

20) ________ segmentation refers to dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

1. A) Gender
2. B) Psychographic
3. C) Occasion
4. D) Geographic
5. E) Income

21) Malcolm Sanders, a graduate student from Boston, makes customized snowboards for local snowboarding enthusiasts. The demand for snowboards peaks during the winter months, a busy time for Malcolm. He advertises more aggressively and sells most of his snowboards around this time. Which market segmentation approach does Malcolm most likely use?

1. A) gender segmentation
2. B) psychographic segmentation
3. C) occasion segmentation
4. D) geographic segmentation
5. E) age and life-cycle segmentation

22) ________ requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it.

1. A) Gender segmentation
2. B) Psychographic segmentation
3. C) Benefit segmentation
4. D) Geographic segmentation
5. E) Age and life-cycle segmentation

23) Calypso Motors recently rolled out its Proteus hatchback. Proteus combines the attractiveness of a luxury car with the excellent agility of a sports car. Calypso Motors is confident that Proteus will appeal to both sports car enthusiasts as well as the luxury segment. Which of the following types of market segmentation is evident here?

1. A) gender segmentation
2. B) income segmentation
3. C) benefit segmentation
4. D) geographic segmentation
5. E) age and life-cycle segmentation

24) Which of the following refers to a behavioral segmentation variable that involves segmenting markets into nonusers, ex-users, potential users, first-time users, and regular users of a product?

1. A) user status
2. B) usage rates
3. C) gender status
4. D) income status
5. E) loyalty status

25) In the context of behavioral segmentation, who among the following is a potential user?

1. A) Anita, who recently had a baby
2. B) Peter, who recently changed his job
3. C) Mary, who enrolled as a graduate student in a university last year
4. D) Gina, who opened a dental clinic in Orange County
5. E) Raj, who is planning a trip to Hawaii with friends

26) In the context of behavioral segmentation, markets segmented by ________ can be categorized into light, medium, and heavy product users.

1. A) benefits sought
2. B) loyalty status
3. C) usage rate
4. D) user status
5. E) occasion

27) A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle’s products comprise a small percentage of the market. The study indicated that less than 7 percent of all shoppers buy nearly 71 percent of Estelle’s products in the United States. This is an example of ________.

1. A) benefit segmentation
2. B) segmentation by loyalty status
3. C) segmentation by usage rate
4. D) psychographic segmentation
5. E) occasion segmentation

28) Consumers who show their allegiance to brands, stores, or companies help marketers to segment consumers by their ________.

1. A) user status
2. B) degree of loyalty
3. C) income
4. D) geographic location
5. E) benefit-seeking attitudes

29) Which of the following is true about behavioral segmentation on the basis of the loyalty variable?

1. A) Consumers tend to pay more for products that are targeted at their respective age group or generation.
2. B) By looking at customers who are shifting away from its brand, a company can learn about its marketing weaknesses and take actions to correct them.
3. C) Highly loyal customers of a brand are less likely to engage in word-of-mouth publicity than those who are not.
4. D) Completely loyal customers of a brand are typically loyal to two or three brands of a given product.
5. E) Only consumers who seek premium or luxury services are subjected to behavioral segmentation based on the loyalty variable.

30) Which of the following is true about multivariable segmentation systems?

1. A) Marketers using multiple segmentation bases tend to ignore smaller markets.
2. B) Marketers often use multiple segmentation bases to control inflation.
3. C) Multiple segmentation rarely involves the use of demographic data.
4. D) Multiple segmentation is ineffective in large markets.
5. E) Multiple segmentation bases help identify smaller, better-defined target groups.

31) Which of the following is NOT a common variable used by both consumer and business marketers while segmenting markets?

1. A) operating characteristics
2. B) loyalty status
3. C) usage rate
4. D) geographic location
5. E) benefits sought

32) ________ segmentation assumes that nations close to one another will have many common traits and behaviors.

1. A) Geographic
2. B) Occasion
3. C) Psychographic
4. D) Benefit
5. E) Demographic

33) Double Drill Inc. segments its foreign markets by per capita income. This firm segments the international markets based on ________.

1. A) political factors
2. B) legal factors
3. C) geographic location
4. D) economic factors
5. E) cultural factors

34) Pacific Fisheries divides its customers into different regional units, such as Asia, Australia, and the Americas. This is an example of ________ segmentation.

1. A) demographic
2. B) psychographic
3. C) geographic
4. D) occasion
5. E) benefit

35) Marketers often segment international markets according to the type and stability of government. In such instances, they segment markets based on ________.

1. A) geographic location
2. B) economic factors
3. C) cultural factors
4. D) political factors
5. E) socio-cultural factors

36) Which of the following refers to a cultural factor in the context of segmenting international markets?

1. A) receptivity of foreign firms
2. B) economic development of the country
3. C) population income levels
4. D) stability of the government
5. E) values and attitudes

37) Using ________ segmentation, marketers form segments of consumers who have similar needs and buying behaviors even though they are located in different countries.

1. A) psychographic
2. B) demographic
3. C) occasion
4. D) benefit
5. E) intermarket

38) Orion Inc. markets luxury watches. It targets the wealthy global elite segment, regardless of their geographic location. Orion most likely uses ________ segmentation.

1. A) income
2. B) age-group
3. C) occasion
4. D) benefit
5. E) cross-market

39) Teen Mania Inc., a company marketing adventure sports merchandise for teenagers, targets the world’s teenagers, who have similar needs and buying behavior even though they are located in different countries. Which of the following market segmentation is evident here?

1. A) income segmentation
2. B) psychographic segmentation
3. C) gender segmentation
4. D) intermarket segmentation
5. E) occasion segmentation

40) An American cola-manufacturing company that primarily targets rebellious and adventurous people most likely uses ________ segmentation.

1. A) occasion
2. B) geographic
3. C) income
4. D) benefit
5. E) psychographic

41) Venus Inc., a company designing and marketing branded diamond jewelry, targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________ segmentation.

1. A) intermarket
2. B) loyalty
3. C) life-cycle
4. D) income
5. E) psychographic

42) Papillon, a popular retailer of chic women’s clothing, segments its market according to consumer lifestyles. Papillon most likely uses ________ segmentation for segmenting its market.

1. A) geographic
2. B) psychographic
3. C) benefit
4. D) age and life-cycle
5. E) occasion

43) When the size, purchasing power, and profile of a market segment can be calculated, the market is ________.

1. A) measurable
2. B) profitable
3. C) substantial
4. D) actionable
5. E) competitive

44) A market segment that is large enough or profitable enough to serve is ________.

1. A) measurable
2. B) accessible
3. C) substantial
4. D) profitable
5. E) differentiable

45) When an effective program can be designed for attracting and serving a particular segment, the segment is best described as ________.

1. A) accessible
2. B) measurable
3. C) competitive
4. D) actionable
5. E) differentiable

46) Bailey’s Burgers promotes the Bailey’s Jumbo Burger as a fun snack for teens and young adults. In this instance, Bailey’s Burgers is practicing ________ segmentation.

1. A) benefit
2. B) age and life-cycle
3. C) psychographic
4. D) geographic
5. E) gender

47) ________ segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.

1. A) Complex
2. B) Measurable
3. C) Competitive
4. D) Differentiable
5. E) Homogeneous

48) Market segments that can be effectively reached and served are ________.

1. A) measurable
2. B) accessible
3. C) substantial
4. D) actionable
5. E) profitable

49) Different soft drinks target different personalities. This is an example of ________ segmentation.

1. A) psychographic
2. B) demographic
3. C) occasion
4. D) life-cycle
5. E) benefits

50) In the scenario, Ruben has segmented his market based on ________.

1. A) geography
2. B) benefits sought
3. C) occasion
4. D) degree of loyalty
5. E) demographics

51) Geographic segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

52) Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

53) Psychographic segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.

54) Demographic segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.

55) Benefit segmentation requires finding the major benefits people look for in a product class, the kinds of people who look for each benefit, and the major brands that deliver each benefit.

56) When segmenting by user status, markets are segmented into light, medium, and heavy product users.

57) When segmenting by usage rate, markets can be segmented into nonusers, ex-users, potential users, first-time users, and regular users of a product.

58) Marketers usually limit their segmentation analysis to only one major variable.

59) Inter-market segmentation refers to forming segments of consumers who have different needs and buying behaviors in a given geographical region.

60) Briefly describe geographic segmentation.

61) Why are demographic factors the most popular bases for segmenting customer groups?

62) Why must marketers guard against stereotypes when using age and life-cycle segmentation?

63) Define psychographic segmentation.

64) Briefly describe occasion segmentation.

65) How does loyalty status enhance a company’s understanding of its consumers?

66) List three variables that are used in segmenting business markets.

67) Explain the different segmentation variables used in segmenting consumer markets.

68) Describe how marketers use multiple segmentation bases to their advantage.

69) Why do companies opt for market segmentation?

70) Why do international markets need to be segmented?

71) What are the primary requirements for effective market segmentation?

72) Which of the following is LEAST relevant when a firm evaluates different market segments?

1. A) segment size and growth
2. B) company resources
3. C) segment structural attractiveness
4. D) core competencies of competitors
5. E) company objectives

73) A segment is less attractive if it ________.

1. A) is difficult for new entrants to enter
2. B) is substantial
3. C) is actionable
4. D) already contains many strong and aggressive competitors
5. E) contains weak suppliers

74) A ________ consists of a set of buyers who share common needs or characteristics that the company decides to serve.

1. A) marketing channel
2. B) citizen-action group
3. C) distribution channel
4. D) target market
5. E) customer franchise

75) ________ refers to a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

1. A) Individual marketing
2. B) Local marketing
3. C) Niche marketing
4. D) Undifferentiated marketing
5. E) Segmented marketing

76) Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies?

1. A) individual marketing
2. B) one-to-one marketing
3. C) mass marketing
4. D) concentrated marketing
5. E) trigger-based marketing

77) A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each is known as ________.

1. A) mass marketing
2. B) differentiated marketing
3. C) concentrated marketing
4. D) individual marketing
5. E) cross-marketing

78) Which of the following is a disadvantage of using a differentiated marketing strategy?

1. A) generates far lower sales compared to an undifferentiated marketing strategy
2. B) customer loyalty is negatively impacted and difficult to obtain
3. C) the costs of doing business increase
4. D) quality control problems increase
5. E) product safety decreases

79) With a(n) ________ marketing strategy, a firm goes after a large share of one or a few smaller niches.

1. A) individual
2. B) mass
3. C) concentrated
4. D) differentiated
5. E) local

80) Which of the following is true about the concentrated marketing strategy?

1. A) Companies that rely on a few segments for all of their business will suffer if a segment turns sour.
2. B) Concentrated marketing is not profitable for most firms.
3. C) Niche marketing involves few risks for most firms.
4. D) Concentrated marketing involves going after a small share of a large market.
5. E) The Internet has limited the use and benefits of niche marketing.

81) ________ is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.

1. A) Mass marketing
2. B) Trigger-based marketing
3. C) Differentiated marketing
4. D) Concentrated marketing
5. E) Micromarketing

82) ________ marketing tailors brands and promotions to the needs and wants of regional customer groups, such as cities, neighborhoods, and even specific stores.

1. A) Undifferentiated
2. B) Differentiated
3. C) Niche
4. D) Local
5. E) Individual

83) Which of the following is a drawback of local marketing?

1. A) Local marketing increases manufacturing costs by reducing the economies of scale.
2. B) Local marketing requires specialization that is difficult to identify.
3. C) Local marketing is not profitable for most small firms.
4. D) Local marketing cannot accommodate the needs of modern buyers who are technology savvy.
5. E) Local marketing almost always results in brand dilution.

84) Andrew Levitt runs a retail store in Norristown. Andrew’s store stocks cold weather products as Norristown mostly has sub-zero temperatures. Which of the following is evident here?

1. A) local marketing
2. B) concentrated marketing
3. C) segmented marketing
4. D) mass marketing
5. E) direct marketing

85) A public relations firm tailors its advertising and promotional services according to the needs and preferences of specific customers. This exemplifies ________.

1. A) trigger-based marketing
2. B) mass marketing
3. C) segmented marketing
4. D) individual marketing
5. E) concentrated marketing

86) When a company customizes its merchandise store by store to meet shopper needs, it is practicing ________ marketing.

1. A) niche
2. B) mass
3. C) local
4. D) segmented
5. E) trigger-based

87) ________ is the process by which firms interact one-to-one with masses of customers to design products and services tailor-made to individual needs.

1. A) Product diversification
2. B) Micromarketing
3. C) Mass customization
4. D) Differentiated marketing
5. E) Local marketing

88) When order requests come in, the designers of Titus Furniture often go to a client’s location to note their requirements, budget, and expected date of delivery. In this way, Titus Furniture is successful in tailor-making products for its customers. This is an example of ________.

1. A) market diversification
2. B) undifferentiated marketing
3. C) mass customization
4. D) differentiated marketing
5. E) trigger-based marketing

89) Which of the following marketing strategies is most suitable for smaller firms with limited resources?

1. A) mass marketing
2. B) undifferentiated marketing
3. C) niche marketing
4. D) differentiated marketing
5. E) one-to-one marketing

90) Rex Steelworks makes steel sheets which the firm markets and sells to companies all over the world. Which of the following marketing strategies is most suitable for Rex Steelworks?

1. A) one-to-one marketing
2. B) undifferentiated marketing
3. C) individual marketing
4. D) local marketing
5. E) trigger-based marketing

91) GamaPix makes point-and-shoot cameras and handycams for amateur photographers and hobbyists. It also has a separate line of cameras dedicated to professional photographers. Additionally, it designs separate offers for each segment. Which of the following marketing strategies does GamaPix most likely use in this instance?

1. A) mass marketing
2. B) differentiated marketing
3. C) individual marketing
4. D) local marketing
5. E) direct marketing

.

92) Jean Malone, a market researcher, recently found that most people in Bradburg County purchase automobiles with predominantly functional designs and prefer darker colors. Which of the following marketing strategies should Jean most likely recommend to an automobile dealer interested in opening a dealership in Bradburg County?

1. A) one-to-one marketing
2. B) undifferentiated marketing
3. C) segmented marketing
4. D) individual marketing
5. E) direct marketing

93) Shine Enterprises mass produces an all-purpose floor cleaner that is aimed at the whole market. This firm uses a(n) ________ marketing strategy.

1. A) segmented
2. B) undifferentiated
3. C) individual
4. D) niche
5. E) one-to-one

94) ________ marketing is more suited for uniform products, such as grapefruit or steel.

1. A) Niche
2. B) Undifferentiated
3. C) One-to-one
4. D) Trigger-based
5. E) Local

95) ________ marketing is more suited for products that vary in design.

1. A) Mass
2. B) Local
3. C) Direct
4. D) Differentiated
5. E) Individual

96) A catalog retailer in the United States has identified African American professionals between the ages of 35 and 45 as a group of potential customers for its products. The retailer plans to direct its marketing efforts toward this group of consumers. Which of the following market segmentation variables did the catalog retailer most likely use?

1. A) demographic
2. B) psychographic
3. C) user status
4. D) loyalty status
5. E) usage rate

97) In marketing his wooden pens and pencils to specialty-shop customers, Ruben was most likely using ________ marketing.

1. A) mass
2. B) trigger-based
3. C) concentrated
4. D) segmented
5. E) individual

98) If Ruben interacted one-to-one with his customers to design his products and services according to individual needs, he would be practicing ________.

1. A) concentrated marketing
2. B) trigger-based marketing
3. C) undifferentiated marketing
4. D) mass customization
5. E) segmented marketing

99) In evaluating different market segments, a firm should look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources.

100) The relative power of buyers affects segment attractiveness.

101) A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.

102) Using an undifferentiated marketing strategy, a firm decides to target several market segments and designs separate offers for each.

103) Using a segmented marketing strategy, a firm might decide to ignore market segment differences and target the whole market with one offer.

104) When using a niche marketing strategy, a firm goes after a large share of one or a few smaller segments.

105) Niche marketing involves tailoring brands and promotions to the needs and wants of local customer groups—cities, neighborhoods, and even specific stores.

106) Individual marketing is also known as one-to-one marketing, mass customization, and markets-of-one marketing.

107) Product differentiation refers to the way a product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products.

108) What are the major structural factors affecting long-run segment attractiveness?

109) What does a company focus on when using an undifferentiated marketing strategy?

110) What does a company focus on when using a concentrated marketing strategy?

111) Briefly explain mass customization.

112) List some important factors that companies need to consider when choosing a market-targeting strategy.

113) How do companies identify attractive market segments? How do they choose a target marketing strategy?

114) Distinguish between undifferentiated and differentiated marketing strategies.

115) Briefly explain local and individual marketing.

116) ________ refers to how a company will create differentiated value for targeted segments and what positions it wants to occupy in those segments.

1. A) Targeted marketing
2. B) Market segmentation
3. C) Product positioning
4. D) Value proposition
5. E) Niche marketing

117) A ________ refers to the way a product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products.

1. A) core competency
2. B) value stream
3. C) value proposition
4. D) product position
5. E) product specification

118) ________ shows consumer perceptions of a company’s brands versus competing products on important buying dimensions.

1. A) Differentiation
2. B) Positioning
3. C) Market targeting
4. D) Perceptual positioning maps
5. E) Market segmentation

119) To the extent that a company can differentiate and position itself as providing superior customer value, it gains ________.

1. A) competitive advantage
2. B) complementary assets
3. C) service life
4. D) core competencies
5. E) contingent liability

120) Through ________ differentiation, brands can be differentiated on features, performance, or style and design.

1. A) services
2. B) channel
3. C) people
4. D) product
5. E) price

121) Even when competing offers look the same, buyers may perceive a difference based on ________ differentiation.

1. A) image
2. B) people
3. C) price
4. D) channel
5. E) services

122) Harvey’s Bookstore is a popular online bookstore that has differentiated itself through smooth-functioning delivery networks. This is an example of ________ differentiation.

1. A) product
2. B) image
3. C) price
4. D) channel
5. E) people

123) The full mix of benefits on which a brand is differentiated and positioned is known as the brand’s ________.

1. A) value proposition
2. B) service life
3. C) value stream
4. D) supply chain
5. E) demand chain

124) ________ positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs.

1. A) More for the same
2. B) More for less
3. C) Same for less
4. D) Less for much less
5. E) More for more

125) Stores such as Walmart, Best Buy, PetSmart, David’s Bridal, and DSW Shoes use ________ positioning.

1. A) more for the same
2. B) more for less
3. C) same for less
4. D) less for much less
5. E) more for more

126) ________ positioning involves meeting consumers’ lower performance or quality requirements at a much lower price.

1. A) More for less
2. B) Less for much less
3. C) Same for less
4. D) More for more
5. E) More for the same

127) Pierre’s Mart, a grocery store in New Orleans, Louisiana, offers less merchandise selection and fairly low levels of service. Despite the lackluster service and limited selection of merchandise, customers still flock to Pierre’s because it charges rock-bottom prices. Pierre’s Mart most likely uses the ________ positioning.

1. A) more for the same
2. B) more for less
3. C) same for less
4. D) less for much less
5. E) more for more

128) When it first opened stores across the United States, Bateman’s, an office supply chain store, had the best product selection, the best service, and the lowest prices compared to other office supply chain stores. As a result, Bateman’s captured a significant chunk of the market in the short run. Which of the following positioning strategies did Bateman’s most likely use?

1. A) more for the same
2. B) more for less
3. C) same for less
4. D) less for much less
5. E) more for more

129) The winning value proposition would be to offer ________.

1. A) more for the same
2. B) more for less
3. C) more for more
4. D) same for less
5. E) same for more

130) Which of the following states the product’s membership in a category and then shows its point of difference from other members of the category?

1. A) a mission statement
2. B) a vision statement
3. C) a general need description
4. D) a positioning statement
5. E) an order-routine specification

131) “To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web.” This is an example of a(n) ________.

1. A) positioning statement
2. B) statement of purpose
3. C) order-routine specification
4. D) vision statement
5. E) product specification

132) Chronos Inc. designs and markets different brands of cycling watches. Each brand has a single unique feature: the Chronos Cosmos has a heart rate monitor, the Chronos Acumen is designed for older cyclists who prefer a large display, and the Chronos Aegis has a GPS function. Which of the following is evident here?

1. A) channel differentiation
2. B) service differentiation
3. C) product differentiation
4. D) people differentiation
5. E) image differentiation

133) Apex describes its clothing line as, “Elegance and attitude, now as one. For the daily office-goer, who takes pride in what he or she wears everyday, Apex makes sure you get noticed.” This exemplifies a ________.

1. A) statement of purpose
2. B) vision statement
3. C) positioning statement
4. D) general need description
5. E) product specification

134) The Jay Group hires better employees than its competition by conducting effective searches and multi-tiered interviews. The company also provides high quality training to its employees, an aspect often neglected by competitors. The Jay Group is most likely to gain a strong competitive advantage through which type of differentiation?

1. A) image differentiation
2. B) people differentiation
3. C) services differentiation
4. D) product differentiation
5. E) channel differentiation

135) Symbols such as the McDonald’s golden arches, the colorful Google logo, the Nike swoosh, or Apple’s “bite mark” logo provide strong company or brand recognition and are indicative of ________ differentiation.

1. A) people
2. B) image
3. C) channel
4. D) services
5. E) product

136) Kinger Auto specializes in selling low-quality used vehicles that are priced a good deal lower than other used cars. Which of the following value propositions is evident here?

1. A) more for the same
2. B) more for less
3. C) same for less
4. D) less for much less
5. E) more for more

137) Ferrari sports cars claim superior quality, performance, and style. Ferrari provides “perfection” at a premium price to keep its brand image intact. Which type of value proposition does Ferrari most likely position its products with?

1. A) more for the same
2. B) more for more
3. C) less for much less
4. D) the same for less
5. E) more for less

138) Which of the following is true with regard to the same for less value proposition?

1. A) Discount stores and “category killers” rarely use the same for less value proposition.
2. B) The same for less value proposition is mostly offered by marketers who sell higher quality upscale products or services.
3. C) The same for less value proposition cannot generate profits.
4. D) Offering the same for less can be a powerful value proposition because everyone likes a good deal.
5. E) The same for less positioning involves meeting consumers’ lower performance or quality requirements at a much lower price.

139) While Jenkins Stationeries was selling branded stationery at premium prices, Pembroke Stationeries, a store across the street, was selling the same branded stationery at discount prices. Which of the following value propositions best describes Pembroke’s product positioning?

1. A) more for less
2. B) more for the same
3. C) same for less
4. D) less for much less
5. E) more for more

140) A product position is the way a product is defined by consumers on important attributes.

141) To the extent that a company can differentiate and position itself as providing superior customer value, it gains competitive advantage.

142) Firms that practice product differentiation gain competitive advantage through the way they design their channel’s coverage, expertise, and performance.

143) Less-for-much-less positioning involves meeting consumers’ lower performance or quality requirements at a much lower price.

144) Kia Motors offers a new car model with the same features as other cars in the same segment. However, Kia’s model is priced higher than its two main competitors. Kia is following a more-for-less positioning strategy.

145) Briefly describe competitive advantage.

146) How do firms practicing channel differentiation gain competitive advantage?

147) What is product position? What functions do perceptual positioning maps serve?