Marketing Chapter 7 United States True Income Affects Consumers Ability Buy Goods And Services And

103. _______ occurs when marketers evaluate each market segment and determine which segment or segments present the

most attractive opportunity to maximize sales.

104. The more intense the competition within a segment, the _______ attractive it is to marketers.

105. Marketers concerned about _____ _____ when selecting a target market may use a SWOT analysis to determine if the firm

will be successful targeting a specific segment.

106. The major advantage of a(n) _______ targeting strategy is the potential savings in developing and marketing the product.

107. A company that sells beef sandwiches across the country makes the sandwich with green chilies and jalapenos in the

Southwestern states, but makes it with green peppers in the Northeastern states. This is an example of a(n) _______ targeting

strategy.

108. Consumers of _______ marketing products typically have very specialized needs and will pay higher prices to meet those

needs.

109. The ethical implications of targeting some market segments can be seen when marketers at Abercrombie and Fitch began

marketing clothes with sexualized characteristics to _______.

110. _______ assumes that consumers compare goods and services on the basis of benefits.

07–36

Topic: Positioning

111. A _____ _____ is a competitive analysis tool that creates a visual picture of where products are located in consumers’

minds.

112. The second step in deciding how to best position a product is to clearly define the firm‘s _____ _____.

113. Consumer tastes for everything change from time to time, which is why it is important to evaluate customer _______ when

deciding how to best position a product.

114. A succinct description of the core target market to which a product is directed and a compelling picture of how the firm

wants that core market to view the product is referred to as a ______ statement.

07–37

Learning Objective: 07-07 Explain the three steps of effective market positioning and why firms may choose to use repositioning strategies.

Topic: Positioning

115. _______ typically involves changing one or more marketing mix elements, often product or promotion.

116. The process of dividing a larger market into smaller groups based on meaningfully shared characteristics is called

positioning.

117. Market segmentation helps firms decide how to allocate their marketing resources in a way that maximizes profit.

118. One of the criteria for segmenting a market is that the market should be actionable, meaning that a firm should be

reasonably certain that its marketing mix can inform consumers about the product, how it adds value to the consumer, and

ultimately how to purchase it.

07–38

Topic: Market Segmentation

119. The four broad segmentation bases that marketers use to divide the market into segments are: substantial, measurable,

differentiable, and accessible.

120. Marketers particularly target younger consumers because compared to the rest of the population, they typically have more

time and money.

121. Consumers who have between $100,000 and $250,000 in investable assets are termed mass affluent and are one of the

fastest growing segments in the United States.

122. Market size, customer lifestyles, and population shifts are all important geographic segmentation tools.

07–39

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-02 Describe the bases for segmenting both B2C and B2B markets.

Topic: Methods of Market Segmentation

123. The 2010 Census showed that the only southern state that lost seats in the House of Representatives was Louisiana.

124. When marketers segment based on psychographics, the market is divided into groups according to the reason the

consumer made the purchase.

125. The two dimensions of the VALS framework, needs and wants, helps to explain why different consumer groups exhibit

different behaviors, and why different consumer groups often exhibit the same behaviors for different reasons.

126. Psychographic segmentation involves categorizing customers based on what they actually do with their goods and

services.

07–40

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-02 Describe the bases for segmenting both B2C and B2B markets.

Topic: Methods of Market Segmentation

127. Behavioral segmentation is often the most difficult of the four segmentation bases to use.

128. Social media outlets like Facebook are not generally helpful in segmenting markets because of the wide variety of people

who utilize this type of technology.

129. Global segmentation usually results in market segments made up of young people, those that have money to spend, or

those with access to the Internet.

130. Unique segmentation is used when the similarity in needs and wants only extends across the region or several countries.

07–41

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-03 Discuss international segmentation bases and the effect of international market segments on the marketing mix.

Topic: International Market Segmentation

131. Firms should consider three important factors during the targeting process: growth potential, level of competition and

strategic fit.

132. In an undifferentiated targeting strategy, a firm can approach all consumers with the same product offering and marketing

mix.

133. The major advantage of a differentiated targeting strategy is the potential savings in developing and marketing the product.

134. Regardless of what target marketing strategy firms use, they must keep in mind the growing ethical concerns around

targeting some market segments, in particular children, non-native language speakers, and the elderly.

07–42

Difficulty: 1 Easy

Learning Objective: 07-06 Summarize the ethical issues in target marketing.

Topic: Ethical Issues in Target Marketing

135. As it relates to marketing, segmenting and positioning are essentially the same thing.

136. A perceptual map is a competitive analysis tool that creates a visual picture of where products are located in consumer’s

minds.

137. A firm that uses a price/quality relationship to highlight its competitive advantage will negotiate discounts from wholesalers

and keep distribution costs low so it can pass the savings on to its customers.

138. Firms can choose to promote one or multiple competitive advantages, as long as they can clearly articulate those

advantages to their target market.

07–43

Topic: Positioning

139. A successful positioning statement should include the competitive advantages of the product.

140. Repositioning refers to re-segmenting a target market that failed to produce enough buyers for a product.

141. Describe the four major bases of consumer segmentation.

142. How does a business know it has effectively segmented its markets?

07–44

Topic: Market Segmentation

143. Once a business has segmented its markets, what factors should it consider when choosing the market(s) it will target?

144. An expensive boutique hotel in your city offers valet parking, an extensive wine list, a Culinary Institute of America-trained

chef and hotel rooms starting at $400 (average hotel rate in your city is $145) per night. A salesperson from a local marketing

firm that offers a coupon (discount) book filled with two–for-one dinner deals from many local businesses has contacted the

manager of this hotel to see if she is interested in being promoted through this coupon book. Should the manager purchase

space in this book?

145. You have just started a carpet and upholstery cleaning service that only uses environmentally-friendly cleaning agents that

contain no chemicals. Compared to your competitors who use chemical cleaning agents, your prices are higher because your

cleaning supplies cost more and you have to spend more time treating stains and high-traffic areas. Due to high gas prices, you

plan to market to households that are within a 15– to 20-mile radius of your business location. What target marketing strategies

should you pursue?

07–45

146. You are a financial planner who uses demographic segmentation factors such as age, income, education and family status

to identify potential clients for your retirement investing services. You are also interested in investigating how to use

psychographic segmentation to identify potential clients. How can you use the concepts of psychographic segmentation to assist

you in identifying additional clients?

AACSB: Knowledge Application

Blooms: Apply

Difficulty: 2 Medium

Learning Objective: 07-02 Describe the bases for segmenting both B2C and B2B markets.

Topic: Market Segmentation

Chapter 07 Test Bank Summary