Upgrade to remove ads
Only $35.99/year

SMM - Chap 6

Terms in this set (21)

_____ is the process by which a market is divided into distinct subsets of customers with similar needs and characteristics that lead them to respond in similar ways to a particular product offering and marketing program.
A. Market capitalization
B. Market segmentation
C. Brand positioning
D. Marketing mix
B. Market segmentation
_____ entails designing product offerings and marketing programs that can establish an enduring competitive advantage in the target market by creating a unique brand image, or position, in the customer's mind.
A. Brand positioning
B. Market segmentation
C. Brand preference
D. Brand dilution
A. Brand positioning
3. Identify the scenario emphasizing the impact of income on consumer markets that are segmented demographically.
A. MobServ, a mobile service provider, focusing attention on the 65-plus segments to improve market penetration
B. CarsForWomen Inc. launching an online information service aimed at women to directly influence eight out of ten vehicle purchases
C. Cyan Mobiles launching a subsidiary to create an ultra-exclusive mobile telephone targeting customers who buy luxurious products
D. GloGarments creating needs for specialized goods and services due to increase in the number of men opting for neon clothing
C. Cyan Mobiles launching a subsidiary to create an ultra-exclusive mobile telephone targeting customers who buy luxurious products
Carol's Trio, an upscale retail chain, stocks and sells only Spanish, German, and French products. Trio is an example of segmenting a market by _____.
A. age
B. ethnic origin
C. education
D. income
B. ethnic origin
_____ divides the market according to the characteristics of the buying organization using attributes such as age of firm, firm size, and industry affiliation.
A. Microsegmentation
B. Geographic segmentation
C. Behavioral segmentation
D. Macrosegmentation
D. Macrosegmentation
In _____, customers are grouped by the characteristics of the individuals who influence the purchasing decision.
A. microsegmentation
B. geographic segmentation
C. demographic segmentation
D. macrosegmentation
A. microsegmentation
AdventureBikes targets wilderness enthusiasts and introduced special robust bikes for them. PowerDrink's target market comprises tennis players who need to replenish water and salts lost through perspiration. These are examples of _____ segmentation that is based on target consumers' activities.
A. demographic
B. geographical
C. geodemographic
D. behavioral
D. behavioral
When consumers evaluate product alternatives on the basis of desired characteristics and how valuable each characteristic is to them, it is referred to as _____.
A. benchmarking
B. productivity paradox
C. choice criteria
D. paradox of thrift
C. choice criteria
Which of the following statements is true of behavioral segmentation?
A. It is useful in assessing the size and market potential of a market segment defined by a particular trade area.
B. It identifies a common purchasing structure across all organizational markets.
C. It is based on who the target customers are and where they live.
D. It identifies new markets even among homogeneous demographic groups when segmented by lifestyle.
D. It identifies new markets even among homogeneous demographic groups when segmented by lifestyle.
Which of the following is true of principle-oriented consumers?
A. They are motivated by abstract and idealized criteria.
B. They shop for products that demonstrate the consumer's success. C. They are guided by the need for social or physical activity and variety.
D. They are motivated by risk-taking.
A. They are motivated by abstract and idealized criteria.
A(n) _____ consumer shops for products that demonstrate the consumer's success.
A. principle-oriented
B. action-oriented
C. resource-oriented
D. status-oriented
D. status-oriented
_____ is the degree to which buying activity is centralized and influences a buyer to consider all transactions with a given supplier on a global basis, to emphasize cost savings, and to minimize risk.
A. Brand parity
B. Purchasing structure
C. Choice criteria
D. Purchasing influence
B. Purchasing structure
A(n) _____ refers to a recurring buying situation handled on a routine basis.
A. straight rebuy
B. old rebuy
C. modified rebuy
D. new buy
A. straight rebuy
Which of the following buying situations occurs when some element, such as price or delivery schedules, has changed in a client-supplier relationship?
A. A straight rebuy
B. An old rebuy
C. A modified rebuy
D. A new buying situation
C. A modified rebuy
What is the first step in constructing a market attractiveness/competitive position matrix for evaluating potential target markets?
A. Selecting market attractiveness and competitive position factors
B. Choosing segments to target and allocate resources
C. Rating segments on each factor and plotting results on matrices
D. Projecting future position for each segment
A. Selecting market attractiveness and competitive position factors
In which of the following steps of evaluating potential target markets is the market-attractiveness/competitive-position matrix plotted?
A. Choosing segments to target and allocating resources
B. Projecting future position for each segment
C. Rating segments on each factor
D. Assigning numerical weights to the factors
C. Rating segments on each factor
Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is moderate and the competitive position is weak?
A. It should expand without high risk or minimize investment and focus on operations.
B. It should withdraw if indications of sustainable growth are lacking. C. It should emphasize profitability by increasing productivity.
D. It should seek ways to increase current earnings without speeding market's
A. It should expand without high risk or minimize investment and focus on operations.
Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is low and the competitive position is strong?
A. It should build selectively on strengths and invest to improve position only in areas where risk is low.
B. It should emphasize profitability by increasing productivity and build up ability to counter competition.
C. It should protect current strengths of the firm and seek ways to increase current earnings without speeding market's decline.
D. It should invest more to grow at a maximum rate and concentrate on maintaining strength.
C. It should protect current strengths of the firm and seek ways to increase current earnings without speeding market's decline.
Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is high and the competitive position is strong? A. It should protect existing strengths and invest to improve position only in areas where risk is low.
B. It should defend its current position and stop all further investments.
C. It should sell when possible to maximize cash value and cut fixed costs in the meantime.
D. It should invest more to grow at a maximum rate and concentrate on maintaining strengths.
D. It should invest more to grow at a maximum rate and concentrate on maintaining strengths.
Which of the following is true of a mass-market strategy?
A. It involves serving one or more segments with customers seeking somewhat specialized benefits from a product.
B. It works on the principle that an undifferentiated marketing strategy generates more sales than a differentiated strategy.
C. It involved using a differentiated marketing strategy to decrease manufacturing and promotion costs.
D. It involves designing a single product-and-marketing program that will appeal to the largest number of consumers.
D. It involves designing a single product-and-marketing program that will appeal to the largest number of consumers.
Which of the following market strategies is often favored by smaller companies to avoid direct confrontations with larger firms while building volume and share?
A. A niche-market strategy
B. A growth-market strategy
C. A resource-market strategy
D. A mass-market strategy
B. A growth-market strategy
Other sets by this creator