general business data bank

1.
The chief disadvantage to a firm that decides to follow a product
specialization strategy in selecting target markets is that ________.
a.
no synergy exists
b.
logistics can become a
nightmare
c.
the product may be supplanted
by an entirely new technology
d.
competitors
can easily copy any new product introductions
e.
e-commerce becomes difficult
for the company

2.
With ________ as a target market strategy, the
firm concentrates on serving many needs of a particular customer group.
a.
single-segment concentration
b.
selective specialization
c.
product specialization
d.
market specialization
e.
full market coverage

3.
The two ways that large firms can cover a
whole market (e.g., full market coverage strategy) are through ________ and
differentiated marketing.
a.
undifferentiated
b.
logistical
c.
psychological
d.
niche
e.
macromarketing

4. In ________
marketing, the firm operates in several market segments and designs different
products for each segment.
a. segmented
b. undifferentiated
c. differentiated
d. geodemographic

e. niche

5.
The best way to manage multiple segments is to appoint ________ with
sufficient authority and responsibility for building the segment’s business.
a.
a product champion
b.
segment managers
c.
promotion
managers
d.
strategic managers
e.
mid-level managers

6. All of the following costs are
likely to be higher if a marketer pursues a differentiated marketing approach
EXCEPT ________.
a.
product modification
costs
b.
manufacturing costs
c.
administrative costs
d.
inventory costs
e.
pricing costs

7.
________ is the strategic coordination of economic, psychological, political, and public relations
skills, to gain the cooperation of a number of parties in order to enter or
operate in a given market.
a.
Metamarketing
b.
Macromarketing
c.
Micromarketing
d.
Megamarketing
e.
Modular marketing

8.
One way to discover new market segments is to investigate the hierarchy
of attributes consumers examine in choosing a brand if they use phased decision
strategies. This process is called ________.
a.
market partitioning
b.
market positioning
c.
market segmentation
d.
strategic marketing
e.
brand marketing
Answer: a

9.
Not all attempts to target
children, minorities, or other special segments draw criticism. Which of the
following is the best illustration of a company
(or industry) that seems to be marketing to the above in a correct and ethical
way?
a.
McDonald’s marketing to
inner-city youth.
b.
R. J. Reynolds marketing of the
Kool brand.
c.
Colgate-Palmolive’s Colgate Junior toothpaste.
d.
The cereal industry’s
approaches to children.
e.
G. Heileman Brewing’s approach
to Colt 45 malt liquor.

True/False

10.
Markets are almost always homogeneous.

11.
To compete more effectively, many companies are now embracing target marketing.

63. Effective
target marketing requires that marketers use market segmentation, market
targeting, and market positioning to achieve success in the marketplace.

64.
Henry Ford epitomized the market segmentation strategy when he offered
the Model-T Ford.

65.
A market segment consists of a group of consumers who share a similar set
of needs and wants.

66.
With respect to market offerings, if a marketer emphasizes
a naked solution, he or she is emphasizing the product and service elements that all
segment members value.

67.
A marketer glances at this month’s
market-preference pattern diagram and notices that all of the customers are
grouped in the middle of the diagram; therefore, customers are exhibiting clustered preferences.

68. An attractive niche is characterized as having a
distinct set of needs.

69.
Local marketing reflects a growing trend called macromarketing.

70.
Grassroots marketing done at the local level is associated with
experiential marketing where experiences are more
important than products or services.

71.
If you charge for the time customers spend with you, then and only then
are you in the servicebusiness.

72. When Nike and Gillette
advertise and associate their products with the Boston Marathon, the two companies are engaged in a form of experiential
marketing called co-branding.

73. The ultimate level of segmentation leads to “segments
of one,” “customized marketing,” or “one-to-one marketing.”

74. Two broad groups of variables are used to segment consumer
markets: geographic and demographic
variables.

75. Typical groupings (segments) that
might be designated using the geographic method of segmentation might be
density, climate, or city/metro size.

76. Illustrations of personality segmentation would include
culture-oriented, sports-centered, or outdoor-oriented subsegments.

77. According to a new PRIZM cluster configuration, the Cosmopolitan
tends to locate in cities such as Las
Vegas, Miami,
or Albuquerque.

78. A local service company
has decided to segment its market based on occupation; therefore, it has chosen
a form of demographic segmentation
for its approach.

79. Life stage defines a
person’s age.

80. Men and women have different
attitudinal and behavioral orientations caused mainly by their genetic makeup.

81. Research
has shown that income is a highly accurate predictor of the “best” customers
for a given product.

82. If
you went to college in the late 1960s, you are most
likely to be in a cohort shaped by the Viet Nam War.

83. The largest American generation
of the twentieth century (78 million people) is considered to be the GI
Generation that fought in World War
II.

84. A sixty
year-old man is coping with his advancing hair loss; therefore, he is dealing
with what is called physiographics.

85. Psychographics
is the science of using psychology
and demographics to better
understand consumers.

86.
Generation Xis considered to be a hot market
because of their size, consumer savvy, and their ability to be “wired-in” to
contemporary trends.

87. Forty-seven percent of 21-year-olds own a
mobile phone.

88. In the VALS segmentation system, Thinkers are characterized as being
successful, sophisticated, active, “take-charge” people with high self-esteem.

89. According to the VALS segmentation system, the Strivers are at bottom of the typology
with the lowest resources and lowest with respect to innovation.

90. When Mobil
Oil Company researched its market
based on benefit expectations, it found that the largest segment (Price Shoppers) with a 27 percent share wanted fast fuel, branded
products, and convenience.

91. An organization that could
benefit from using User Status as a means for segmenting its market would be a
local blood bank.

92. Marketers would rather attract
one heavy user than several light users.

93. With respect to loyalty status, if
a consumer is loyal to two or three brands, he or she is called shifting loyal.

94. The most important variable in segmenting a business market is
demographics.

95. Typical categories that would
appear under the heading of situational factor segmentation variables in the
business marketplace would be urgency, specific application, and size of order.

96. The last step in the seven-step marketing
segmentation process would be to develop a marketing-mix strategy
reflective of segment positioning strategies.

97. To be
useful, market segments must have as one of their characteristics the ability
to be measured.

98. As a pattern
found in target market selection, market
specialization means that the company
offers one product to as many markets as possible.

99. If a
marketer is blocked from entering a market, the strategy of megamarketing can
be used to assist in breaking into that market.

100. Market
partitioning is process of focusing on a desired position in the
marketplace and then accumulating the resources to protect and defend that
position.

Essay

101.
Market segments can be defined
in many different ways. One way to carve up a market is to identify preference segments. List and briefly
characterize three preference segments cited in the text.

102.
Columbia University’s Bernd Schmitt
believes that marketers can provide experiences for customers through a set of
experience providers. List and briefly discuss the seven experience providers
recommended by Schmitt.

103. A new
trend in marketing is toward customerization. Describe what customerization is
and how marketers are using it.

104. There are several major segmentation
variables that might be used by a marketer to address a consumer market. If the
marketer were to use social class, psychographic
lifestyle, and readiness stage to segment its market, identify possible
segmentation subcategories under each of the three. For example, if we were to segment based on usage rate,
subcategories would be light user, medium user, and heavy user.

105. Briefly
profile the American generations labeled as Baby boomers, Generation X,
Generation Y, and Millennials.

106. Marketing to Generation Y is a challenge
because of their size and characteristics. Because they are often turned off by
overt branding practices and a “hard sell,” marketers have tried many different
approaches to reach and persuade Gen Y. The text mentions seven methods for
accomplishing this task. List and
briefly discuss four of those methods.

.

107. The
VALS segmentation system has evolved into an 8-part typology. List and briefly
describe any four categories of that 8-part typology.

108. If a
marketer were to segment a business market on the basis of demographics, what three subcategory segmentation
variables would probably be used to assist with this form of segmentation? What
questions would be asked in each of the three categories to advance the
segmentation effort?

109. To be
useful, market segments must rate favorably on five key criteria. What are
those criteria?

110.
The text describes five possible patterns for target market selection.
Describe the pattern called selective
specialization.