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| 1 | |
Market segmentation involves aggregating prospective buyers into groups that will respond similarly to a marketing action and __________. |
| | A) | will pay attention to marketing messages |
| | B) | have common needs |
| | C) | be responsive to marketing research |
| | D) | use the same payment methods |
| | E) | go shopping on a regular basis |
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| 2 | |
Which strategy involves a firm's using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different and better than competing products? |
| | A) | Dual distribution |
| | B) | Market differentiation |
| | C) | Product differentiation |
| | D) | Market penetration |
| | E) | Full coverage marketing |
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| 3 | |
KFC has modified its product to satisfy different market segments. In Holland the mashed potatoes are replaced with a potato-and-onion croquette and in Thailand, a customer gets fresh rice with soy or sweet chili sauce with his or her chicken. These examples best illustrate __________. |
| | A) | product positioning |
| | B) | market sectioning |
| | C) | product differentiation |
| | D) | market segmentation |
| | E) | product base development |
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| 4 | |
Reebok’s segmentation strategy is based on __________. |
| | A) | expanding both the markets it targets and the products it develops |
| | B) | designing shoes for every type of occasion |
| | C) | having a well-educated customer base |
| | D) | supplier geography |
| | E) | its pricing strategy |
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| 5 | |
A different market segment usually requires a different marketing action that in turn means greater costs. If increased revenues don't offset extra costs, a marketer should __________ to reduce the number of marketing actions. |
| | A) | increase the advertising budget |
| | B) | try direct mail instead of broadcast advertising |
| | C) | cancel current activities |
| | D) | combine segments |
| | E) | discontinue offering the good or service |
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| 6 | |
Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer the question |
| | A) | "Is this product useful on a global scale"? |
| | B) | "Would segmentation be worth doing and is it possible"? |
| | C) | "Is it possible to reposition this product"? |
| | D) | "Is there too much competition for this product"? |
| | E) | "Is the market loyal to the product"? |
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| 7 | |
The five key steps in segmenting and targeting markets __________. |
| | A) | help identify market needs |
| | B) | provide guidance to reposition products |
| | C) | help create ideas for new products |
| | D) | link market needs of customers to the organization's marketing program |
| | E) | are required by law |
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| 8 | |
Which of the following statements demonstrates the formation of a segment based on region? |
| | A) | In China KFC sells a much spicier chicken the farther away its restaurants are from the coastal areas |
| | B) | GE built a downsized microwave oven to hang under kitchen cabinets |
| | C) | Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners |
| | D) | A fast food hamburger restaurant is open for breakfast on Sunday mornings but not on weekdays |
| | E) | A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area |
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| 9 | |
When a telemarketer calls to sell a consumer life insurance, the first question the telemarketer asks is whether the person answering the phone has a family. Whether the prospect has a family indicates the use of which type of consumer segmentation variable by the telemarketer? |
| | A) | Usage |
| | B) | Behavior |
| | C) | Demographic |
| | D) | Buying situation |
| | E) | Psychographic |
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| 10 | |
Toyota makes two types of hybrid automobiles, a small sedan, the Prius and an SUV, the Highlander. Both provide high mileage for the automobile class. Toyota is using which type of segmentation variable to market these cars? |
| | A) | Geographic |
| | B) | Socioeconomic |
| | C) | Behavioral |
| | D) | Psychographic |
| | E) | Demographic |
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| 11 | |
Todd Harris and Associates, a New York sales promotion agency, discovered from analysis of its files that one-fifth of its clients accounted for more than three-quarters of its fees and commissions. This is an example of what classic concept? |
| | A) | The law of inverse proportions |
| | B) | The 80/20 rule |
| | C) | The survival of the fittest |
| | D) | The law of eminent domain |
| | E) | The primogeniture rule |
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| 12 | |
Which of the following is a criterion used for selecting a target segment? |
| | A) | Size of the market |
| | B) | Expected growth |
| | C) | Cost of reaching the segment |
| | D) | Compatibility with the organization's objectives and resources |
| | E) | All of the above are criteria used for selecting a target market |
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| 13 | |
In developing a marketing strategy for the recently released Nike Air Jordan XVII with a price tag of $200, Nike decided to concentrate on affluent teens rather than members of high school basketball teams. This is an example of __________. |
| | A) | selecting target market segments to reach |
| | B) | forming products to be sold into groups |
| | C) | developing a market-product grid and estimating size of markets |
| | D) | taking marketing actions to reach target markets |
| | E) | forming prospective buyers into segments |
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| 14 | |
A choice to take advantage of marketing synergies can often come at the expense of production ones because a single customer segment will likely require a variety of products, each of which will have to be designed and manufactured. The company saves money on __________ but spends more on __________. |
| | A) | competition; marketing |
| | B) | production; marketing |
| | C) | marketing research; marketing |
| | D) | marketing; production |
| | E) | marketing; competition |
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| 15 | |
When McDonald's introduced its low-fat McLean Deluxe hamburger it used __________ positioning to avoid direct competition with Wendy's and Burger King. |
| | A) | head-to-head positioning |
| | B) | lateral positioning |
| | C) | differentiation |
| | D) | consumer positioning |
| | E) | cognitive positioning |
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| 16 | |
In the sneaker market, Reebok and Nike practice __________ positioning since both manufacturers compete in the same target market with similar product attributes. |
| | A) | parallel market |
| | B) | distinction |
| | C) | consumer |
| | D) | differentiation |
| | E) | head-to-head |
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| 17 | |
Which of the following data are collected from consumers to develop a perceptual map for a particular product? |
| | A) | A listing of all prospective brands and products |
| | B) | Managerial judgments about how consumers perceive products |
| | C) | Ratings of an "ideal" product's or brand's attributes |
| | D) | Rank order of the ratings of a existing brand's preference relative to its competitors |
| | E) | All of the above data are collected from consumers |
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| 18 | |
Which of the following is one of the main sales forecasting techniques? |
| | A) | Judgments of the decision maker |
| | B) | Surveys of competitors |
| | C) | Judgments of trade associations |
| | D) | Technological methods |
| | E) | Government document survey analysis |
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| 19 | |
Deluxe Cleaners uses last year's sales as a starting point to estimate next year's sales and then looks at positive and negative influences that may affect sales. This is an example of a __________. |
| | A) | linear trend extrapolation |
| | B) | statistical inference |
| | C) | experimental estimation |
| | D) | lost-horse forecast |
| | E) | survey of buyers' intentions forecast |
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| 20 | |
The CEO says to her marketing manager, "The sales for 2007 were 1000 units higher than 2006 and the sales for 2008 were 1000 units higher than 2007. I'd say we're safe in forecasting 2009 sales as 1000 units greater than 2008". The CEO was most likely using a __________ forecast. |
| | A) | Delphi |
| | B) | jury of executive opinion |
| | C) | direct |
| | D) | linear trend extrapolation |
| | E) | buildup |
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