128. For years, fryer chickens sold in grocery stores were perceived to be a rather generic product—one
brand of chicken was much like another. Then Frank Perdue began an advertising campaign to tell
consumers his brand of chicken was more tender and a better choice. Perdue brought _____ to the
marketing of fryer chickens.
a.
perceptual mapping
b.
product differentiation
c.
psychographic targeting
d.
market innovation
e.
cannibalization
129. When the Sara Lee Bakery Group introduced Iron Kids Crustless bread (to save mothers the time and
effort of slicing the crusts off sandwiches), it was using:
a.
PRIZM segmentation
b.
geodemographic segmentation
c.
niche marketing strategy execution
d.
product differentiation
e.
a target market chart
130. Which of the following is a means of displaying or graphing, in two or more dimensions, the location
of products, brands, or groups of products in customers’ minds?
a.
perceptual mapping
b.
product positioning
c.
market segmentation
d.
product tracing
e.
laddering
131. A (n) _____ could help determine whether or not snacking consumers consider Kashi Tasty Little
Crackers healthy and tasty in comparison to other brands..
a.
predictive modeling
b.
perceptual map
c.
product positioning
d.
trend analysis
e.
internal marketing audit
132. The closer together two brands are on a perceptual map the:
a.
less perceptually alike they are
b.
closer their prices are
c.
more objectively alike they are
d.
more likely an undifferentiated marketing strategy is in effect
e.
more similarly perceived by consumers they are
133. All of the following are typical bases for positioning EXCEPT:
a.
attribute
b.
price and quality
c.
distribution
d.
emotion
e.
product user
134. In 2008, Apple, Inc. introduced Mobile Me, which keeps everything on a consumer’s Mac, PC, iPod or
iPhone on an online server Apple calls the “Cloud” so that it can be accessed at any time. Apple is
catering to on-the-go consumers who use multiple platforms. This positioning strategy is based on the
_____.
a.
product class
b.
price and quality
c.
use or application
d.
product user
e.
competitor
135. Ad campaigns by Aleve pain reliever emphasize the fact that to get the same relief offered by one
Aleve, you would need to take six aspirin or Tylenol and four Advil. These promotions are using the
positioning base of:
a.
product class
b.
competitor
c.
product user
d.
product merits
e.
price and quality
136. The advertisements for Kay Jewelers usually show a man presenting a woman with a ring or necklace
and receiving a kiss in return. The ad then shows the slogan “Every Kiss Begins with Kay.” This is an
example of _____ positioning.
a.
product class
b.
price and quality
c.
use or application
d.
attribute
e.
emotion
137. Changing consumers’ perceptions of a brand in relation to competing brands is known as:
a.
positioning
b.
repositioning
c.
reintermediation
d.
demarketing
e.
reengineering
138. The Southern Company is the largest provider of utilities in the southeastern United States. It has also
been accused of being the biggest source of industrial air pollution in the area. The Southern Company
is trying to change consumers’ perceptions of the company by sponsoring a series of television
programs on how to preserve our environment. The Southern Company is hoping the programming
will lead to:
a.
repositioning
b.
reengineering
c.
demarketing
d.
undifferentiated targeting
e.
one-to-one marketing
139. H&R Block launched a $100 million marketing campaign to parlay the company’s intimate knowledge
of 20 million customers’ finances into other services like mortgages and investment advice. Block has
great brand recognition, but consumers only care about it four months out of the year. H&R Block is
attempting to _____ itself to make people think of it as a company offering services year-round.
a.
reposition
b.
reengineer
c.
demarket
d.
undifferentiate
e.
niche
140. To be successful, most businesses focus on customer service. However, the cable industry has a
history of poor customer service. Cable companies are facing competition for TV customers who once
had no choice but cable if they wanted to see more than local programs. In the face of this competition
from direct broadcast satellites, cable companies are trying to use a _____ strategy to show that they
have become customer-oriented.
a.
segmentation
b.
product differentiation
c.
targeting
d.
repositioning
e.
demarketing
NARRBEGIN: Turkey Hunting Equip.
Turkey Hunting Equipment
Around the beginning of fall each year, about 2.7 million turkey hunters all over the United States start
looking at catalogs for the perfect item to guarantee that this year they will kill a wild turkey, the most
elusive game bird on the North American continent. The devoted turkey stalker can stock up on
everything from camouflaged turkey hunting socks, turkey license plate holders, vests with huge
pockets for toting dead birds, and hunting videos to turkey decoys, turkey earrings, and turkey callers.
Neil Cost is considered the best manufacturer of turkey callers in the world. It is his only product, and
each is highly prized by turkey hunters. It is not unusual for a turkey hunter to pay $5,000 for one of
Cost’s callers.
NARREND
141. Refer to Turkey Hunting Equipment. Wild turkey hunters would be defined as a:
a.
market segment
b.
market position
c.
segmentation base
d.
retail position
e.
consumer position
142. Refer to Turkey Hunting Equipment. Given that the wild turkey hunters number approximately 2.7
million, it meets the segmentation criterion of:
a.
substantiality
b.
accessibility
c.
reliability
d.
responsiveness
e.
functionality
143. Refer to Turkey Hunting Equipment. Segmenting a market based on the fact that people who enjoy
hunting typically exhibit a particular lifestyle is an example of _____ segmentation.
a.
benefit
b.
psychographic
c.
geographic
d.
geodemographic
e.
demographic
144. Refer to Turkey Hunting Equipment. What kind of strategy does Neil Cost use to select his target
market?
a.
concentrated targeting
b.
multisegment
c.
mass marketing
d.
undifferentiated
e.
repositioned
145. Refer to Turkey Hunting Equipment. Primos Hunting Calls is another company that manufactures wild
turkey callers. It claims each of its callers is able to cluck, shriek, and kee-kee (three sounds that have
been known to attract the wild turkey). If you buy one of Cost’s callers, you are limited to one sound.
In this way, Primos has implemented a(n) _____ strategy.
a.
multisegment
b.
product differentiation
c.
undifferentiated marketing
d.
target market
e.
repositioning
NARRBEGIN: Wrestling Merchandise
Wrestling Merchandise
Market research has shown that 6- to 17-year-old males, 18- to 24-year-old females, and 18- to 44-
year-old males are most likely to watch a televised professional wrestling event or to attend a live
match. Wrestling events are regularly broadcast in 120 different countries. Merchandise licensed by
World Wrestling Entertainment (formerly known as the World Wrestling Federation) can be purchased
at JCPenney and Wal-Mart. Clothes for adults are used to reach markets that may not buy action
figures, video games, and novelty candy, but who are still proud to sport World Wrestling
Entertainment (WWE) trademarks.
NARREND
146. Refer to Wrestling Merchandise. The groups identified above as strong wrestling fans can be described
as:
a.
market positions
b.
market segments
c.
positionings
d.
organizational buyers
e.
microsegments
147. Refer to Wrestling Merchandise. Most Wrestling fans live in the southern United States. Based on
this information, what segmentation base would be appropriate?
a.
geographic
b.
demographic
c.
psychographic
d.
product use
e.
benefit sought
148. Refer to Wrestling Merchandise. The marketing research revealed that _____ segmentation can be
used to identify the biggest fans of professional wrestling.
a.
benefit
b.
psychographic
c.
demographic
d.
geographic
e.
geodemographic
149. Refer to Wrestling Merchandise. Since the WWE must use different methods to reach its three largest
target markets, it must use:
a.
undifferentiated targeting
b.
concentrated or niche targeting
c.
multisegment targeting
d.
demarketing
e.
repositioning
150. Refer to Wrestling Merchandise. Prior to the 1990s, professional wrestling tried to compete as a
legitimate sport just like football and baseball. Now it uses the term “sports entertainment” when
talking about what it is marketing to its fans. This is an example of the implementation of a(n) _____
strategy.
a.
multisegment
b.
product differentiation
c.
undifferentiated marketing
d.
target market
e.
repositioning
NARRBEGIN: Mercedes-Benz
Mercedes-Benz
Daimler AG, the maker of Mercedes-Benz automobiles, is planning to launch a new line of downsized
luxury vehicles in the United States by 2012. Daimler has experienced a recent drop in global sales
attributed to its product mix that focuses on larger luxury automobiles. With increasing fuel prices and
stricter U.S. fuel-economy standards coming down the pipeline, Daimler doesn’t want to be left
behind. Daimler is behind its competition, though. Its German rivals, Audi and BMW, have been
relatively successful in the U.S. BMW”s Mini Cooper, demanding as much as $34,000, has already
driven away with some of Daimler’s potential sales. While Daimler already offers the Smart car in the
U.S., the new offerings will not be going after the same consumers.
NARREND
151. Refer to Mercedes-Benz. Baby boomers have money to burn and will be the primary target for the
downsized, luxury vehicles offered by Mercedes. Many of them will want this type of car to feel
young again. This group is considered a _____.
a.
consumer advocacy group
b.
income ready group
c.
market
d.
population
e.
market maven
152. Refer to Mercedes-Benz. Mercedes-Benz’s Baby boomers are a useful segment because they meet
certain criteria. Which of the following do the baby boomers meet?
a.
substantiality
b.
identifiability and measurability
c.
accessibility
d.
responsiveness
e.
all of these
153. Refer to Mercedes-Benz. Daimler plans to introduce the downsized luxury vehicles in major U.S.
cities, such as Los Angeles, New York, Miami, Atlanta, Dallas, and Chicago, because market research
has shown that these metropolitan areas have the greatest potential with respect to the consumers able
to purchase a $30,000+ smaller luxury vehicle. Which type of psychographic segmentation does this
represent?
a.
geodemographic
b.
personality
c.
benefit
d.
usage-rate
e.
demographic
154. Refer to Mercedes-Benz. One potential problem is that some of the purchasers of Daimler’s
downsized luxury vehicles could be consumers who would have purchased a larger, higher-priced
Mercedes-Benz. This situation is called:
a.
subjugation
b.
cannibalization
c.
sabotage
d.
benefit transference
e.
marginal sales
155. Refer to Mercedes-Benz. Which positioning base will Daimler be using if the company emphasizes
the type of people who buy Mercedes-Benz automobiles in its promotional efforts?
a.
product user
b.
emotion
c.
price and quality
d.
attribute
e.
use or application
ESSAY
1. What are the four criteria that are necessary to define a market?
2. You are given the following limited information about a market consisting of ten people. Describe all
the possible ways to segment this market.
Gender
Income
Male
Medium
Female
Low
Female
Low
Male
High
Female
Low
Male
Low
Male
Medium
Male
High
Female
High
Female
High
3. What is a market segment? Define market segmentation and discuss why market segmentation is
important to the well-being of most companies.
resources.
4. To be useful, a segmentation scheme must produce segments that meet four basic criteria. Name and
briefly describe each of these four criteria.
5. What is a segmentation base (or segmentation variable)? Name the common segmentation bases used
by marketers to segment consumer markets.
6. Discuss the advantages and disadvantages of single-variable segmentation and multiple-variable
segmentation.
7. What is geographic segmentation? Name four reasons why a company would use a regional marketing
approach. Then give a specific example of a company marketing its product(s) regionally.
8. Marketers use demographic information to segment markets because it is widely available and often
related to consumers’ purchasing and consumption behavior. List five common bases used by
marketers for demographic segmentation. For each base listed, give an example of a product
specifically targeted to the needs and wants of the segment identified within the base.
9. What is the family life cycle (FLC)? Using the following selected stages from the FLC, briefly
describe the lifestyle and purchasing needs of consumers in that stage: (1) Young single, (2) Young
married without children, (3) Young married with children, (4) Middle-aged married without children,
and (5) Older unmarried.
10. Describe psychographic segmentation and discuss why marketers use the basis for segmenting
markets. List the four psychographic variables commonly used as segmentation bases.
•
11. What is geodemographic segmentation? What is the result of geodemographic segmentation? Give one
specific example that illustrates this type of segmentation.
12. What is benefit segmentation? For toothpaste, list six benefits that might be sought by consumers. For
each benefit, give an existing brand name that best exemplifies segmentation according to that benefit.
13. What is usage-rate segmentation? What is the 80/20 principle, and how does it apply to usage-rate
segmentation?
14. Name the four broad segments of the business market.
15. List, in correct order, the steps in segmenting a market.
16. Name and describe the three targeting strategies. For each strategy, name one advantage and one
disadvantage of using the strategy.
17. Define multisegment targeting and discuss the advantages and disadvantages of this targeting strategy.
18. Define cannibalization. Is it always bad? Explain.
19. Compare and contrast traditional mass marketing and one-to-one marketing. What is the primary goal
for companies that adopt the one-to–one marketing approach?
20. Discuss the four trends that have resulted in the continuing growth of one-to-one marketing.
21. Explain what is meant by positioning and describe the bases marketers use to position products and
services.
22. What is product differentiation and how can it be achieved?
23. You are the marketing manager for a food products firm. Your firm would like to introduce a new
beverage to the marketplace. You have determined that two important dimensions for positioning a
product are (1) nutritional value and (2) age orientation. Place the following beverages on the
perceptual map provided: Coffee, Orange Juice, Diet Cola, Apple Cider, Mineral Water, Milk, Herbal
Tea, Liquor, Tomato Juice. Assuming the listed beverages comprise all competitive beverages, what
position should your firm’s new beverage have? Describe the new beverage.
