Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Refer to the scenario below to answer the following question(s).
Ruben Delgado was making wooden pens and pencils, which had unique engravings, as a
hobby until Simon Yoder recognized Ruben's talent. Simon immediately ordered 250 pens and
pencils of various styles to be displayed in his shop's showcase. Within three months, the
wooden pencils were a hit with all students! Ruben Delgado had never thought of marketing his
talent, but Simon's enthusiasm and the recent sales were enough to change his mind.
With limited resources, Ruben contacted three additional specialty shops within 100 miles that
were situated near schools. He explained his manufacturing processes and engraving options to
each. All three shop owners placed a trial order. Within two months, just prior to the holiday
season, each shop owner placed an additional order. Ruben was ecstatic! "I figured business
would slow down after that," Ruben stated, "but in February I was contacted by Elmore
Distributors. At that point, I had to make a huge decision about how far I wanted to go with this
business."
Elmore Distributors provides products for school fundraisers in a seven-state area. Ruben was
offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Ruben
Delgado accepted the offer and, along with it, the responsibility to produce thousands of
wooden pens and pencils. "I had to get a grip on the magnitude of this project," Ruben added.
He decided to place his major focus on the large contract with Elmore. However, to avoid
placing his total emphasis with one customer, Ruben continued nurturing his four previously
established accounts without targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Ruben explained. "I had to
hire three full-time employees to work the line while I managed the customer orders and
purchased materials." Ruben paused. "But I can't take the Elmore project for granted. It might
not always be there. I'll have to have a good alternate plan if that day comes."
62) In the scenario, Ruben has segmented his market based on ________.
A) geography
B) benefits sought
C) occasion
D) degree of loyalty
E) demographics
63) Through market targeting, companies divide large, diverse markets into smaller segments
that can be reached more efficiently and effectively with products and services that match their
unique needs.
64) Geographic segmentation divides the market into segments based on variables such as age,
life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
65) Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines.
66) Psychographic segmentation divides buyers into different segments based on lifestyle or
personality characteristics.
67) Demographic segmentation divides buyers into segments based on their knowledge,
attitudes, uses, or responses concerning a product.
68) 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.
69) When segmenting by user status, markets are segmented into light, medium, and heavy
product users.
70) When segmenting by usage rate, markets can be segmented into nonusers, ex-users,
potential users, first-time users, and regular users of a product.
71) Marketers usually limit their segmentation analysis to only one major variable.
72) Intermarket segmentation refers to forming segments of consumers who have different
needs and buying behaviors in a given geographical region.
73) Briefly describe geographic segmentation.
74) Why are demographic factors the most popular bases for segmenting customer groups?
75) Why must marketers guard against stereotypes when using age and life-cycle
segmentation?
76) Define psychographic segmentation.
77) Briefly describe occasion segmentation.
78) How does loyalty status enhance a company's understanding of its consumers?
79) List three variables that are used in segmenting business markets.
80) Explain the different segmentation variables used in segmenting consumer markets.
81) Describe how marketers use multiple segmentation bases to their advantage.
82) Why do companies opt for market segmentation?
83) Why do international markets need to be segmented?
84) What are the primary requirements for effective market segmentation?
85) Market targeting is ________.
A) arranging for a market offering to occupy a clear, distinctive, and desirable place relative to
competing products in the minds of target consumers
B) dividing a market into distinct groups of buyers who have different needs and characteristics
C) evaluating segment attractiveness and deciding how many and which segment(s) to serve
D) marketing to buyers with separate marketing strategies or mixes
E) differentiating the firm's market offering to create customer value
86) Which of the following is LEAST relevant when a firm evaluates different market
segments?
A) segment size and growth
B) company resources
C) segment structural attractiveness
D) core competencies of competitors
E) company objectives
87) Which of the following is the reason a company may choose not to focus on the largest,
fastest-growing segments?
A) The smaller segments may be more profitable to the firm.
B) It may lack the skills to serve larger segments.
C) The right size and growth characteristics don't match its goals.
D) The segments may be too competitive.
E) It may lack the physical and financial resources to serve larger segments.
88) A segment is less attractive if it ________.
A) is difficult for new entrants to enter
B) is substantial
C) is actionable
D) already contains many strong and aggressive competitors
E) contains weak suppliers
89) Several structural factors affect long-run segment attractiveness. These include all of the
following EXCEPT ________.
A) easy entry by new competitors
B) the segment does not match the company's long-run objectives
C) strong and aggressive competitors
D) many substitute products
E) power of buyers
90) A ________ consists of a set of buyers who share common needs or characteristics that the
company decides to serve.
A) marketing channel
B) citizen-action group
C) distribution channel
D) customer franchise
E) target market
91) ________ refers to a market-coverage strategy in which a firm decides to ignore market
segment differences and go after the whole market with one offer.
A) Individual marketing
B) Local marketing
C) Niche marketing
D) Undifferentiated marketing
E) Segmented marketing
92) Sanguine Services is a small company that uses a marketing strategy in which its limited
resources are employed to target a large share of two small market segments. Sanguine most
likely uses which of the following marketing strategies?
A) individual marketing
B) one-to-one marketing
C) mass marketing
D) concentrated marketing
E) trigger-based marketing
93) A market-coverage strategy in which a firm decides to target several market segments and
designs separate offers for each is known as ________.
A) mass marketing
B) differentiated marketing
C) concentrated marketing
D) individual marketing
E) cross-marketing
94) Which of the following is a disadvantage of using a differentiated marketing strategy?
A) It generates far lower sales compared to an undifferentiated marketing strategy.
B) Customer loyalty is negatively impacted and difficult to obtain.
C) The costs of doing business increase.
D) Quality control problems increase.
E) Product safety decreases.
95) With a(n) ________ marketing strategy, a firm goes after a large share of one or a few
smaller niches.
A) individual
B) mass
C) concentrated
D) differentiated
E) local
96) Which of the following is true about the concentrated marketing strategy?
A) Companies that rely on a few segments for all of their business will suffer if a segment turns
sour.
B) Concentrated marketing is not profitable for most firms.
C) Niche marketing involves few risks for most firms.
D) Concentrated marketing involves going after a small share of a large market.
E) The Internet has limited the use and benefits of niche marketing.
97) ________ is the practice of tailoring products and marketing programs to suit the tastes of
specific individuals and locations.
A) Mass marketing
B) Trigger-based marketing
C) Differentiated marketing
D) Concentrated marketing
E) Micromarketing
98) ________ marketing tailors brands and promotions to the needs and wants of regional
customer groups, such as cities, neighborhoods, and even specific stores.
A) Undifferentiated
B) Differentiated
C) Niche
D) Local
E) Individual
99) Which of the following is a drawback of local marketing?
A) Local marketing increases manufacturing costs by reducing the economies of scale.
B) Local marketing requires specialization that is difficult to identify.
C) Local marketing is not profitable for most small firms.
D) Local marketing cannot accommodate the needs of modern buyers who are technology
savvy.
E) Local marketing almost always results in brand dilution.
100) Andrew Levitt runs a retail store in Norristown. Andrew's store stocks cold weather
products as Norristown mostly has sub-zero temperatures. Which of the following is evident
here?
A) local marketing
B) concentrated marketing
C) segmented marketing
D) mass marketing
E) direct marketing
101) A public relations firm tailors its advertising and promotional services according to the
needs and preferences of specific customers. This exemplifies ________.
A) trigger-based marketing
B) mass marketing
C) segmented marketing
D) individual marketing
E) concentrated marketing
102) When a company customizes its merchandise store by store to meet shopper needs, it is
practicing ________ marketing.
A) niche
B) mass
C) local
D) segmented
E) trigger-based
103) ________ is the process by which firms interact one-to-one with masses of customers to
design products and services tailor-made to individual needs.
A) Product diversification
B) Micromarketing
C) Mass customization
D) Differentiated marketing
E) Local marketing
104) When order requests come in, the designers of Titus Furniture often go to a client's
location to note their requirements, budget, and expected date of delivery. In this way, Titus
Furniture is successful in tailor-making products for its customers. This is an example of
________.
A) market diversification
B) undifferentiated marketing
C) mass customization
D) differentiated marketing
E) trigger-based marketing
105) Which of the following marketing strategies is most suitable for smaller firms with limited
resources?
A) mass marketing
B) undifferentiated marketing
C) niche marketing
D) differentiated marketing
E) one-to-one marketing
106) Rex Steelworks makes steel sheets which the firm markets and sells to companies all over
the world. Which of the following marketing strategies is most suitable for Rex Steelworks?
A) one-to-one marketing
B) undifferentiated marketing
C) individual marketing
D) local marketing
E) trigger-based marketing
107) GamaPix makes point-and-shoot cameras and handycams for amateur photographers and
hobbyists. It also has a separate line of cameras dedicated to professional photographers.
Additionally, it designs separate offers for each segment. Which of the following marketing
strategies does GamaPix most likely use in this instance?
A) mass marketing
B) differentiated marketing
C) individual marketing
D) local marketing
E) direct marketing
108) Jean Malone, a market researcher, recently found that most people in Bradburg County
purchase automobiles with predominantly functional designs and prefer darker colors. Which
of the following marketing strategies should Jean most likely recommend to an automobile
dealer interested in opening a dealership in Bradburg County?
A) one-to-one marketing
B) undifferentiated marketing
C) segmented marketing
D) individual marketing
E) direct marketing
109) Shine Enterprises mass produces an all-purpose floor cleaner that is aimed at the whole
market. This firm uses a(n) ________ marketing strategy.
A) segmented
B) undifferentiated
C) individual
D) niche
E) one-to-one
110) ________ marketing is more suited for uniform products, such as grapefruit or steel.
A) Niche
B) Undifferentiated
C) One-to-one
D) Trigger-based
E) Local
111) ________ marketing is more suited for products that vary in design.
A) Mass
B) Local
C) Direct
D) Differentiated
E) Individual
112) A catalog retailer in the United States has identified African American professionals
between the ages of 35 and 45 as a group of potential customers for its products. The retailer
plans to direct its marketing efforts toward this group of consumers. Which of the following
market segmentation variables did the catalog retailer most likely use?
A) demographic
B) psychographic
C) user status
D) loyalty status
E) usage rate
113) Market targeting can bring up concerns about privacy and abuse in all of the following
ways EXCEPT ________.
A) when marketing toward children
B) when entertainment and commercial content blend
C) when customers opt in to receive focused content
D) when deceptive messaging is used
E) when e-mails are personalized based on Internet searches by the customer
