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96) In marketing his wooden pens and pencils to specialty-shop customers, Herb was most likely
using ________ marketing.
A) mass
B) trigger-based
C) concentrated
D) segmented
E) individual
97) If Herb interacted one-to-one with his customers to design his products and services
according to individual needs, he would be practicing ________.
A) concentrated marketing
B) trigger-based marketing
C) undifferentiated marketing
D) mass customization
E) segmented marketing
98) Mass marketing involves identifying market segments, selecting one or more of them, and
developing products and marketing programs tailored to each.
99) The customer-driven marketing strategy involves four steps: market segmentation, market
targeting, positioning, and differentiation.
100) Geographic segmentation divides the market into segments based on variables such as age,
life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
101) Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines.
102) Psychographic segmentation divides buyers into different segments based on social class,
lifestyle, or personality characteristics.
103) Demographic segmentation divides buyers into segments based on their knowledge,
attitudes, uses, or responses concerning a product.
104) 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.
105) When segmenting by user status, markets are segmented into light, medium, and heavy
product users.
106) When segmenting by usage rate, markets can be segmented into nonusers, ex-users,
potential users, first-time users, and regular users of a product.
107) Marketers usually limit their segmentation analysis to only one major variable.
108) Intermarket segmentation refers to forming segments of consumers who have different
needs and buying behaviors in a given geographical region.
109) In evaluating different market segments, a firm should look at three factors: segment size
and growth, segment structural attractiveness, and company objectives and resources.
110) The relative power of buyers affects segment attractiveness.
111) A target market consists of a set of buyers who share common needs or characteristics that
the company decides to serve.
112) Using an undifferentiated marketing strategy, a firm decides to target several market
segments and designs separate offers for each.
113) Using a segmented marketing strategy, a firm might decide to ignore market segment
differences and target the whole market with one offer.
114) When using a niche marketing strategy, a firm goes after a large share of one or a few
smaller segments.
115) Niche marketing involves tailoring brands and promotions to the needs and wants of local
customer groups—cities, neighborhoods, and even specific stores.
116) Individual marketing is also known as one-to-one marketing, mass customization, and
markets-of-one marketing.
117) 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.
118) A product position is the way a product is defined by consumers on important attributes.
119) To the extent that a company can differentiate and position itself as providing superior
customer value, it gains competitive advantage.
120) Firms that practice product differentiation gain competitive advantage through the way they
design their channel's coverage, expertise, and performance.
121) Less-for-much-less positioning involves meeting consumers' lower performance or quality
requirements at a much lower price.
122) 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.
123) Explain the four major steps in designing a customer-driven marketing strategy.
124) Explain the different segmentation variables used in segmenting consumer markets.
125) Describe how marketers use multiple-segmenting bases to their advantage.
126) Why do companies opt for market segmentation?
127) Why do international markets need to be segmented?
128) What are the primary requirements for effective market segmentation?
129) How do companies identify attractive market segments? How do they choose a target
marketing strategy?
130) Distinguish between undifferentiated and differentiated marketing strategies.
131) Briefly explain local and individual marketing.
132) What is product position? What functions do perceptual positioning maps serve?
133) What is differentiation?
134) Briefly describe geographic segmentation.
135) Why are demographic factors the most popular bases for segmenting customer groups?
136) Why must marketers guard against stereotypes when using age and life-cycle segmentation?
137) Define psychographic segmentation.
138) Briefly describe occasion segmentation.
139) How does loyalty status enhance a company's understanding of its consumers?
140) List three variables that are used in segmenting business markets.
141) What are the major structural factors affecting long-run segment attractiveness?
142) What does a company focus on when using an undifferentiated marketing strategy?
143) What does a company focus on when using a concentrated marketing strategy?
144) Briefly explain mass customization.
145) List some important factors that companies need to consider when choosing a market-
targeting strategy.
146) Briefly describe competitive advantage.
147) How do firms practicing channel differentiation gain competitive advantage?
