Chapter 06 – Market Targeting and Strategic Positioning
Chapter 06
Market Targeting and Strategic Positioning
1. Segment targeting is used more extensively than product differentiation in marketing.
2. Product specialization involves offering buyers a product differentiated from competitors’
products.
3. Product-markets that experience rapid growth are referred to as emerging market.
4. Growing product-markets are shifting from growth to maturity, as indicated by the product
life cycles of the products.
5. The total sales and profits of a product will decline after it reaches the maturity stage.
6. New entrants in an emerging market can use disruptive technologies to attract buyers away
from incumbent firms.
7. Large, well-established companies are more likely to enter a new product-market than are
new enterprises.
8. An experiential positioning concept applies to products that solve consumption-related
problems for externally generated consumption needs.
Chapter 06 – Market Targeting and Strategic Positioning
9. Positioning shows how the company or brand is differentiated from its competitors.
10. Doubtful positioning occurs when frequent changes and contradictory messages confuse
customers regarding the positioning of the brand.
11. Naturo-All Foods Inc. provides products that appeal to middle-class buyers who have
strong value preferences for natural foods and are willing to pay premium prices for the
products that are often not available from other grocery retailers. This segment of customers is
Naturo-All Foods Inc.’s _____.
A. focus group
B. affiliate network
C. mass market
D. market target
12. The _____ decision identifies the people or organizations in a product-market toward
which a firm directs its positioning strategy.
A. market targeting
B. employer branding
C. domain selecting
D. strategic sifting
13. Product-markets that are newly formed are categorized as _____ and are created by
factors such as a new technology or the identification of unmet needs by suppliers.
A. growing
B. emerging
C. mature
D. declining
14. A(n)_____ is a life product life cycle stage where the product-market is actually fading
away instead of experiencing a temporary fall or cyclical changes.
Chapter 06 – Market Targeting and Strategic Positioning
A. emerging product-market
B. maturing product-market
C. declining product-market
D. growing product-market
15.Which of the following is true about the life cycle of a typical product?
A. Profits are highest in the emerging phase of the product-market.
B. Total profits increase after the product reaches the maturity stage.
C. Sales are highest during the growth period.
D. Profits fall off before sales as the product reaches maturity.
16. The number of competitors in a(n) _____ market initially consists of the first market
entrant and one or two other firms.
A. emerging
B. maturing
C. declining
D. growing
17. Which of the following market targeting approaches best fits extensive targeting in a
clearly defined market segment?
A. Product variety
B. Target selected niches
C. Target multiple segments
D. Product specialization
18. Which of the following market targeting approaches best fits selective targeting in a
segment not clearly defined?
A. Product variety
B. Target selected niches
C. Target multiple segments
D. Product specialization
Chapter 06 – Market Targeting and Strategic Positioning
19. The global market strategy of _____ considers the extent to which standardized products
and other strategy elements can be designed to compete on a global basis, and buyers are
targeted without regard to national boundaries and regional preferences.
A. segmentation
B. buffering
C. local responsiveness
D. integration
20. Which of the following is a characteristic of emerging markets?
A. Sales are highest in this stage of the product life cycle.
B. Factors that drive market growth are clearly defined at this stage.
C. Market segments are most defined at this stage.
D. Profits are not obtained at this stage of the product life cycle.
21. The positioning _____ indicates management’s desired positioning of the product (brand)
in the eyes and minds of the targeted buyers.
A. strategy
B. concept
C. effectiveness
D. location
22. The positioning _____ is the positioning initiative which combines marketing program
(mix) policies used to portray the positioning desired by management to the targeted buyers. It
includes the product (good or service), supporting services, distribution channels, price, and
promotion actions taken by the organization.
A. effectiveness
B. concept
C. strategy
D. location
23. A(n) _____ positioning concept applies to products that solve consumption-related
Chapter 06 – Market Targeting and Strategic Positioning
problems for externally generated consumption needs.
A. functional
B. lateral
C. symbolic
D. experiential
24. _____ positioning applies to products that relate to the buyer’s internally generated need
for self-enhancement, role position, group membership, or ego-identification.
A. Iconic
B. Symbolic
C. Functional
D. Experiential
25. The _____ positioning concept is used to position products that provide sensory pleasure,
variety, and/or cognitive stimulation.
A. material
B. functional
C. experiential
D. symbolic
26. Which of the following positioning concepts is most commonly utilized by luxury brands?
A. Functional positioning
B. Experiential positioning
C. Expedient positioning
D. Symbolic positioning
27. Bruckners and Co. is a fine writing instruments company that manufactures different
products like pencils, pens, oil pastels, and other writing accessories. A recent study
conducted by Bruckners on their product positioning revealed that most customers were only
aware of Bruckners’ Artisan line of pencils, which were particularly marketed for sketch
artists. Which of the following positioning errors is affecting the Artisan brand?
A. Overpositioning
B. Underpositioning
C. Confused positioning
Chapter 06 – Market Targeting and Strategic Positioning
D. Doubtful positioning
28. Lambasta is a burger joint that claims to specialize in lamb burgers. Over the past year,
Lambasta has experimented in different products wherein they stopped making some of their
flagship lamb burgers and replaced them with chicken burgers. The Lambasta website, which
claims Lambasta to be “the only legitimate lamb burger joint in town,” increasingly provides
special offers on their chicken burgers. Their core customer base and profits have steadily
declined ever since. Which of the following types of positioning errors is affecting Lambasta?
A. Underpositioning
B. Overpositioning
C. Symbolic positioning
D. Confused positioning
29. Which of the following describes doubtful positioning?
A. When frequent changes and contradictory messages confuse customers regarding the
positioning of the brand
B. When the claims made for the product or brand are not regarded as credible by the
customer
C. When customers have too narrow an understanding of the company, product, or brand
D. When customers have only vague ideas about the company and its products and do not
perceive anything distinctive about them
30. _____ occurs when customers have only vague ideas about the company and its products
and do not perceive anything distinctive about them.
A. Doubtful positioning
B. Overpositioning
C. Underpositioning
D. Confused positioning
31. Briefly explain the four life cycle stages of the product-market environment.
Chapter 06 – Market Targeting and Strategic Positioning
32. Identify and discuss the three possible targeting strategies in growth markets.
33. Explain the consumer behavior of buyers in mature markets affecting brand management.
34. Elaborate on the scope of using positioning strategies.
Chapter 06 – Market Targeting and Strategic Positioning
35. Explain how test marketing can help assess positioning effectiveness.