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CHAPTER 6 CRS Questions & Answers SEGMENTATION, TARGETING, AND POSITIONING: Building the Right Relationships with the Right Customers Which of the following is NOT a typical basis for segmenting consumer markets? 1. 2. 3. 4. Geography Politics Psychographics Behavior Copyright 2007, Prentice-Hall Inc. 6-2 Which of the following is NOT a typical basis for segmenting consumer markets? 1. 2. 3. 4. Geography Politics Psychographics Behavior Politics, or political affiliation is not a typical basis for market segmentation, but is rather one of many lifestyle or psychographic variables which may be used to describe a target market. Copyright 2007, Prentice-Hall Inc. 6-3 A company that manufactures and markets sporting yachts would most likely segment the market using the demographic variable of: 1. 2. 3. 4. Age Income Gender Stage in family life cycle Copyright 2007, Prentice-Hall Inc. 6-4 A company that manufactures and markets sporting yachts would most likely segment the market using the demographic variable of: 1. 2. 3. 4. Age Income Gender Stage in family life cycle Yachts are extremely costly; thus income is a key segmentation variable which separates those who are potential purchasers from those who are not. Copyright 2007, Prentice-Hall Inc. 6-5 If the sporting yacht manufacturer defined its target market as those earning $500,000+ who live on/near the coast, and love sailing the sea, it is safe to say that the company used: 1. 2. 3. 4. Price-based marketing Intermarket segmentation Multiple segmentation bases Occasion segmentation Copyright 2007, Prentice-Hall Inc. 6-6 If the sporting yacht manufacturer defined its target market as those earning $500,000+ who live on/near the coast and love sailing the sea, it is safe to say that the company used: 1. 2. 3. 4. Price-based marketing Intermarket segmentation Multiple segmentation bases Occasion segmentation Multiple segmentation bases – such as the demographic, geographic, and lifestyle factors noted above – better define target markets. Copyright 2007, Prentice-Hall Inc. 6-7 Business buyers can be segmented by all of the following factors except: 1. 2. 3. 4. Geography Demographics Benefits sought Psychographics Copyright 2007, Prentice-Hall Inc. 6-8 Business buyers can be segmented by all of the following factors except: 1. 2. 3. 4. Geography Demographics Benefits sought Psychographics Psychographics refers to the activities, interests, and opinions of individuals. Business markets are segmented using factors that describe a firm. Copyright 2007, Prentice-Hall Inc. 6-9 While evaluating market segments, marketers need to examine various structural forces that affect a segment’s long-term attractiveness, including all EXCEPT which of the following: 1. Aggressiveness of competition 2. Threat of substitute products 3. Stock market price of competitors 4. Relative power of suppliers Copyright 2007, Prentice-Hall Inc. 6-10 While evaluating market segments, marketers need to examine various structural forces that affect a segment’s long-term attractiveness, including all EXCEPT which of the following: 1. Aggressiveness of competition 2. Threat of substitute products 3. Stock market price of competitors 4. Relative power of suppliers The power of buyers is also an important consideration when examining segment attractiveness. Copyright 2007, Prentice-Hall Inc. 6-11 If a company doing business in Europe and Asia groups together customers from each country that share similar needs and buying behavior, it is using: 1. Psychographic segmentation 2. Intermarket segmentation 3. Concentrated marketing 4. Mass customization Copyright 2007, Prentice-Hall Inc. 6-12 If a company doing business in Europe and Asia groups together customers from each country that share similar needs and buying behavior, it is using: 1. Psychographic segmentation 2. Intermarket segmentation 3. Concentrated marketing 4. Mass customization Intermarket segmentation was used successfully by MTV in targeting teenagers worldwide. Copyright 2007, Prentice-Hall Inc. 6-13 Which of the following target market strategies is least likely to succeed when marketing a good or service in the United States? 1. Micromarketing 2. Concentrated marketing 3. Differentiated marketing 4. Undifferentiated marketing Copyright 2007, Prentice-Hall Inc. 6-14 Which of the following target market strategies is least likely to succeed when marketing a good or service in the United States? 1. Micromarketing 2. Concentrated marketing 3. Differentiated marketing 4. Undifferentiated marketing Diverse consumer needs and the large number of brands found in the U.S. make it highly unlikely that a firm will be able to develop a single product capable of satisfying every consumer. Copyright 2007, Prentice-Hall Inc. 6-15 Companies that rely heavily on mass media to promote their goods or services are in danger of losing influence over consumers due to the trend of: 1. Consumer self-marketing 2. Socially responsible target marketing 3. Benefit segmentation 4. Local marketing Copyright 2007, Prentice-Hall Inc. 6-16 Companies that rely heavily on mass media to promote their goods or services are in danger of losing influence over consumers due to the trend of: 1. Consumer self-marketing 2. Socially responsible target marketing 3. Benefit segmentation 4. Local marketing To assist buyers in practicing self-marketing, firms need to find ways to involve customers in all phases of the product development and buying process. Copyright 2007, Prentice-Hall Inc. 6-17 A moving company’s ads stress the loving care taken when packing, loading, and unloading the client’s possessions. The competitive advantage being promoted is based on: 1. Image differentiation 2. Product differentiation 3. Services differentiation 4. Channel differentiation Copyright 2007, Prentice-Hall Inc. 6-18 A moving company’s ads stress the loving care taken when packing, loading, and unloading the client’s possessions. The competitive advantage being promoted is based on: 1. Image differentiation 2. Product differentiation 3. Services differentiation 4. Channel differentiation Services differentiation can be gained through speedy, convenient, or careful delivery. Copyright 2007, Prentice-Hall Inc. 6-19 Which of the following value propositions reflects status and a lofty lifestyle? 1. More for more 2. Less for more 3. More for same 4. Same for less Copyright 2007, Prentice-Hall Inc. 6-20 Which of the following value propositions reflects status and a lofty lifestyle? 1. More for more 2. Less for more 3. More for same 4. Same for less The “More for more” value proposition is used for upscale products and services that charge higher prices, give buyers prestige and status, and reflect a lofty lifestyle. Copyright 2007, Prentice-Hall Inc. 6-21