1) ________ consists of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
2) ________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
3) ________ involves actually distinguishing the firm’s market offering to create superior customer value.
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 ________.
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.
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.
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 ________.
12) ____ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
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?
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 ________.
15) ____ segmentation has long been used in clothing, cosmetics, toiletries, and magazines.
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.
17) _____ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.
18) Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.
19) ________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.
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.
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?
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.
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?
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?
25) In the context of behavioral segmentation, who among the following is a potential user?
26) In the context of behavioral segmentation, markets segmented by ________ can be categorized into light, medium, and heavy product users.
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 ________.
28) Consumers who show their allegiance to brands, stores, or companies help marketers to segment consumers by their ________.
29) Which of the following is true about behavioral segmentation on the basis of the loyalty variable?
30) Which of the following is true about multivariable segmentation systems?
31) Which of the following is NOT a common variable used by both consumer and business marketers while segmenting markets?
32) ________ segmentation assumes that nations close to one another will have many common traits and behaviors.
33) Double Drill Inc. segments its foreign markets by per capita income. This firm segments the international markets based on ________.
34) Pacific Fisheries divides its customers into different regional units, such as Asia, Australia, and the Americas. This is an example of ________ segmentation.
35) Marketers often segment international markets according to the type and stability of government. In such instances, they segment markets based on ________.
36) Which of the following refers to a cultural factor in the context of segmenting international markets?
37) Using ________ segmentation, marketers form segments of consumers who have similar needs and buying behaviors even though they are located in different countries.
38) Orion Inc. markets luxury watches. It targets the wealthy global elite segment, regardless of their geographic location. Orion most likely uses ________ segmentation.
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?
40) An American cola-manufacturing company that primarily targets rebellious and adventurous people most likely uses ________ segmentation.
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.
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.
43) When the size, purchasing power, and profile of a market segment can be calculated, the market is ________.
44) A market segment that is large enough or profitable enough to serve is ________.
45) When an effective program can be designed for attracting and serving a particular segment, the segment is best described as ________.
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.
47) ________ segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.
48) Market segments that can be effectively reached and served are ________.
49) Different soft drinks target different personalities. This is an example of ________ segmentation.
50) In the scenario, Ruben has segmented his market based on ________.
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?
73) A segment is less attractive if it ________.
74) A ________ consists of a set of buyers who share common needs or characteristics that the company decides to serve.
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.
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?
77) A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each is known as ________.
78) Which of the following is a disadvantage of using a differentiated marketing strategy?
79) With a(n) ________ marketing strategy, a firm goes after a large share of one or a few smaller niches.
80) Which of the following is true about the concentrated marketing strategy?
81) ________ is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.
82) ________ marketing tailors brands and promotions to the needs and wants of regional customer groups, such as cities, neighborhoods, and even specific stores.
83) Which of the following is a drawback of local marketing?
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?
85) A public relations firm tailors its advertising and promotional services according to the needs and preferences of specific customers. This exemplifies ________.
86) When a company customizes its merchandise store by store to meet shopper needs, it is practicing ________ marketing.
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.
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 ________.
89) Which of the following marketing strategies is most suitable for smaller firms with limited resources?
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?
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?
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?
93) Shine Enterprises mass produces an all-purpose floor cleaner that is aimed at the whole market. This firm uses a(n) ________ marketing strategy.
94) ________ marketing is more suited for uniform products, such as grapefruit or steel.
95) ________ marketing is more suited for products that vary in design.
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?
97) In marketing his wooden pens and pencils to specialty-shop customers, Ruben was most likely using ________ marketing.
98) If Ruben interacted one-to-one with his customers to design his products and services according to individual needs, he would be practicing ________.
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.
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.
118) ________ shows consumer perceptions of a company’s brands versus competing products on important buying dimensions.
119) To the extent that a company can differentiate and position itself as providing superior customer value, it gains ________.
120) Through ________ differentiation, brands can be differentiated on features, performance, or style and design.
121) Even when competing offers look the same, buyers may perceive a difference based on ________ differentiation.
122) Harvey’s Bookstore is a popular online bookstore that has differentiated itself through smooth-functioning delivery networks. This is an example of ________ differentiation.
123) The full mix of benefits on which a brand is differentiated and positioned is known as the brand’s ________.
124) ________ positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs.
125) Stores such as Walmart, Best Buy, PetSmart, David’s Bridal, and DSW Shoes use ________ positioning.
126) ________ positioning involves meeting consumers’ lower performance or quality requirements at a much lower price.
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.
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?
129) The winning value proposition would be to offer ________.
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?
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) ________.
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?
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 ________.
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?
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.
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?
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?
138) Which of the following is true with regard to the same for less value proposition?
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?
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?