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158) A positioning approach that involves seeking a less competitive, smaller market niche in
which to locate a brand is referred to as
A) competitive repositioning.
B) head-to-head positioning.
C) differentiation positioning.
D) downsize positioning.
E) product repositioning.
159) Differentiation positioning requires a product to
A) emphasize unique product attributes to compete directly with competitors.
B) compete directly with competitors on similar product attributes in the same target market.
C) compete with competitors on similar product attributes but in a different market.
D) seek a less-competitive, smaller market niche in which to locate a brand.
E) develop marketing actions to move a product or brand to an ideal position.
160) In the sneaker business, Heelys practiced ________ positioning when it introduced a line of
Heelys sneakers that came with an imbedded, detachable wheel in the shoe's heel marketed to
young teens.
A) head-to-head
B) parallel market
C) reflexive
D) revised
E) differentiation
161) While many energy drinks target teen and young adult males with extreme sports themes, 5-
hour Energy frequently advertises toward adults needing a quick and easy way to get through a
busy workday. The strategy for 5-hour Energy would be described as ________ positioning.
A) alternate
B) head-to-head
C) lateral
D) differentiation
E) revised
162) Some Timex wristwatches can be purchased for less than $30 while Rolex wristwatches
may carry a price tag of several thousand dollars. In general, consumers view Timex watches as
being dependable, relatively accurate, and inexpensive timepieces that can be purchased in
drugstores, discount stores, and department stores. The Rolex brand is perceived as an expensive
status symbol distributed in fine jewelry stores or specialty shops. By using distinctly different
pricing and distribution strategies, the marketers of Rolex watches
A) compete for the same segment through different channels of distribution.
B) develop similar products as Timex but under different names.
C) use a differentiation positioning strategy.
D) compete for the same customers through similar retail outlets.
E) create cognitive dissonance in consumers who purchased Timex wristwatches.
163) All of the following are included in an ideal positioning statement except which?
A) the product category in which the offering competes
B) the needs satisfied by the product
C) the offering's unique benefits or attributes
D) the anticipated or actual retail price of the product
E) an identification of the target market
164) "For upscale American families who desire a carefree driving experience, Volvo is a
premium-priced automobile that offers the utmost in safety and dependability" is a ________
statement for Volvo in North America.
A) perception
B) positioning
C) market-product
D) vision
E) differentiation
165) "For World Wide Web users who enjoy books, Amazon.com is a retail bookseller that
provides instant access to over 1.1 million books as well as a combination of extraordinary
convenience and low prices" is a ________ statement for Amazon.com in North America.
A) perception
B) positioning
C) market-product
D) vision
E) differentiation
166) A means of displaying in two dimensions the location of its own and competing products or
brands in the minds of consumers is referred to as a(n)
A) awareness matrix.
B) growth-share matrix.
C) market-product grid.
D) perceptual map.
E) product differentiation chart.
167) A perceptual map is
A) a framework used to compare one firm's product offerings with another firm's offerings in
relationship to their relative market share.
B) a framework used to demonstrate the growth or decline of specific market segments within an
industry.
C) a means of displaying in two dimensions the location of its own and competing products or
brands in the minds of consumers.
D) a framework to relate the market segments of potential buyers to the products offered or
potential marketing actions by an organization.
E) the place a product occupies in a single consumer's mind on unimportant attributes relative to
competitive product
168) Marketers use perceptual maps as a means to display in two dimensions the location of
products or brands
A) against large market segments in a market-product grid.
B) against small market segments in a market-product grid.
C) in virtual space that represents the business or product's time in existence and growth.
D) in the minds of consumers.
E) against the revenues generated by other products or brands within the company.
169) A perceptual map enables a manager to see how ________ perceive competing products or
brands, as well as the firm's own product or brand.
A) stakeholders
B) competitors
C) independent rating organizations such as Consumer Reports
D) consumers
E) the CEO of the firm
170) The axes on a perceptual map are
A) sales and profitability.
B) two important product attributes, ranging from high to low on that attribute.
C) market share and market growth rate.
D) product variety and profitability.
E) customer perceptions of the firm's product versus the brand of the firm's principal competitor.
171) Which of these is collected from consumers to develop a product's perceptual map?
A) consumer judgments about the important attributes for a product or brand class
B) a listing of all prospective brands and products
C) managerial judgments about how consumers perceive products
D) rank order of the ratings of an existing brand's preference relative to its competitors
E) detailed explanations of why consumers make the choices they do
172) To effectively position a product or brand, companies take four steps, including which of
these?
A) decide whether to keep or delete the market segment that your product offering targets
B) identify the key differentiators for competitors' brands
C) discover how target customers rate a company's product or brand on important attributes
D) create a marketing plan based on customers' perceptions
E) identify market niches that were not selected during the market segmentation process
Figure 8-8
173) Figure 8-8 shows is a depiction of a ________ for beverages in the minds of adults.
A) hierarchy of needs
B) perceptual map
C) marketing matrix
D) growth-share matrix
E) perception matrix
174) The perceptual map in Figure 8-8 shows adult perceptions for beverages. Suppose a
marketer is introducing a new beverage that is higher-than-average in nutrition and is intended
for adults. It will probably be most useful to promote the drink as similar to what?
A) tea
B) fruit-flavored drinks
C) sugared soft drinks
D) regular milk
E) coffee
175) Assume that the perceptual map in Figure 8-8 is an accurate representation for adult
consumers. A heavy consumer of mineral water is likely to think that mineral water is
A) more nutritious than tea.
B) more nutritious and a more adult-oriented beverage than milk shakes.
C) a more adult-oriented beverage than nutritionally designed diet drinks.
D) less nutritious and a more adult-oriented beverage than fruit-flavored drinks.
E) a more adult-oriented beverage than sports drinks.
176) By dividing its tennis racquet market into three categories, which it labels Performance,
Recreational, and Junior tennis players, Prince Sports is using a marketing strategy called
A) product differentiation.
B) product innovation.
C) market delineation.
D) market segmentation.
E) product groupings.
177) The O3 technology refers to an innovative tennis racquet Prince Sports developed that
simultaneously delivers faster racquet speed and a bigger sweet spot in the middle of the frame.
Prince Sports has implemented a ________ strategy with its O3 innovative tennis racquet
technology.
A) competitive segmentation
B) head-to-head
C) product differentiation
D) usage segmentation
E) market segmentation
178) The segmentation strategy used by Prince Sports today is
A) geographic.
B) behavioral.
C) psychographic.
D) socioeconomic.
E) resource-based.
179) What is market segmentation and why is it important?
180) What is product differentiation? How does it relate to market segmentation? How does it
potentially improve a firm's revenues?
181) Describe the market segmentation process.
182) Why would an organization produce a single product or service and then attempt to sell it to
two or more market segments?
183) Why would an organization produce multiple products or services and then attempt to sell
them to two or more market segments?
184) Explain the difference between mass customization and build-to-order.
185) There are five key steps in segmenting and targeting markets, which link market needs of
customers to the organization's marketing program. List these five key steps.
186) A marketing manager should develop segments for a market that meet five principal
criteria. List these important factors in forming market segments.
187) A nonprofit food bank was handing out food to anyone who requested it on a weekly basis.
It now wants to give free food only to people who go hungry on a daily basis. This will be the
market segment it targets. How does the formation of its market segments differ from the
strategy used for a retail store?
188) Describe the four general bases that are used to segment consumer markets.
96
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based on where prospective customers live or work (region, city size); (2) demographic
segmentation, which is based on some objective physical (gender, race), measurable (age,
income), or other classification attribute (birth era, occupation) of prospective customers; (3)
psychographic segmentation, which is based on some subjective mental or emotional attributes
(personality), aspirations (lifestyle), or needs of prospective customers; and (4) behavioral
segmentation, which is based on some observable actions or attitudes by prospective customers,
such as where they buy, what benefits they seek, how frequently they buy, and why they buy.
Difficulty: 2 Medium
Topic: Methods of Market Segmentation
Learning Objective: 08-03 Recognize the bases used to segment consumer and organizational
(business) markets.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
189) Assume you are manager of the Outback Steakhouse, a franchised restaurant that has
opened at new location in St. Louis. Describe which segmentation base(s) and possible
segmentation variable(s) you would use to segment its market and explain why each supports the
appropriate market segmentation strategy.
190) Explain the 80/20 rule.
191) What are the segmentation bases for U.S. organizational (business) markets?
192) Explain what a market-product grid is and how it is used.
193) What are the criteria used to select target markets?
194) Explain the difference between marketing synergies and product synergies.
195) Define product positioning. What are two approaches to product positioning? Give an
example of each approach.
196) What are the three types of data needed from consumers to develop a perceptual map?
197) What are the four steps to positioning a product with a perceptual map?
