Q&A Hero

Q: The phrase "relatively homogeneous collections of prospective buyers" is most descriptive of A. demographic clusters. B. organizational buyers. C. ultimate consumers. D. market segments. E. qualified prospects.

Q: To be identified as a market segment, members of the group must A. be similar in terms of their consumption behavior. B. represent a large share of the entire market and have buying power. C. have diverse needs and have potential for future growth. D. have diverse needs and be willing and able to purchase the product. E. have the potential for future growth and increased profit or ROI.

Q: A relatively homogenous group of prospective buyers that results from the market segmentation process is referred to as a(n) __________. A. market segment B. target market C. customer base D. ultimate consumer E. preferred customer

Q: Market segments refer to A. the relatively heterogeneous groups of prospective buyers that result from the market segmentation process. B. all buyers of a product or service who have previously purchased a particular firm's products or services and who intend to repeat that purchase sometime in the future. C. the smallest number of buyers that have similar needs but do not react similarly in a buying situation. D. the relatively homogenous groups of prospective buyers that result from the market segmentation process. E. all potential buyers of a product or service who intend to purchase a firm's products or services but who have not yet done so.

Q: New Balance makes the Minimus line of shoes with a Vibram outsole and REVlite cushioning for those who want to "feel the trail." Its 1260v2 shoe incorporates Stabilicore technology to "deliver a plush, smooth, and stable ride." And its Made in America, top of the line, 990v3 traditional running/walking shoe uses a "premium pigskin upper with mesh inserts for breathability, a stability-enhancing ABZORBu00e2u2020u2019 idsole, and ENCAP to promote a healthy gait." The strategy of appealing to different types of customers in this way is an example of A. mass customization. B. product definition. C. market segmentation. D. single chain marketing. E. market specific selection.

Q: Small athletic shoe manufacturers such as Vans have targeted niche markets and make shoes designed to satisfy the needs of different specific groups of customers. This strategy is an example of A. market segmentation. B. mass customization. C. customized manufacturing. D. single chain marketing. E. market specific selection.

Q: Market segmentation stresses __________ and relating them to specific marketing actions. A. aligning tasks to match competitor tactics B. grouping people according to similar needs C. dividing people within a market randomly into equally sized groups D. dividing people into the smallest groups possible E. identifying potential new buyers who are not yet familiar with a new product

Q: Market segmentation involves aggregating prospective buyers into groups that have common needs and will A. pay attention to marketing messages. B. respond similarly to a marketing action. C. be responsive to marketing research. D. use the same payment methods. E. comply with the organization's core values.

Q: Market segmentation involves aggregating prospective buyers into groups that __________ and will respond similarly to a marketing action. A. respond similarly to marketing messages B. have similar shopping styles C. will become loyal customers D. have common needs E. will become stakeholders of the organization

Q: A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can A. increase sales and profitability. B. stand up to legal scrutiny. C. be socially responsible. D. create sustainable demand. E. produce product differentiation.

Q: Market segmentation refers to A. the philosophy that to do a truly excellent job of marketing, a company should concentrate on only one customer segment at a time. B. sorting prospective buyers into groups that are willing to pay more than the cost of production for a good or service. C. disaggregating prospective buyers from groups into segments of one (individuals) and then creating specific products that will satisfy this person's unique needs. D. aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action. E. the belief that it is possible to satisfy every customer's needs if you can identify the correct segment within which they belong.

Q: Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as A. consumer differentiation. B. psychographics. C. market segmentation. D. market delineation. E. aggregation marketing.

Q: Building open and honest relationships with communication is an example of Zappos' __________. A. profile for its target market B. best practices being adapted from its new owner, Amazon.com C. ten core values for Zappos' culture D. qualities required of Zappos' suppliers E. qualities required of Zappos' retailers

Q: Tony Hsieh, CEO of Zappos, offers one month's salary to anyone who A. identifies a completely new market segment with a product to match it. B. finds a way of improving service to online customers. C. takes the customer loyalty training class and decides to quit anyway. D. finds a shoe-related product that Zappos does not already carry. E. creates a humorous theme for one of the monthly company meetings.

Q: According to Tony Hsieh, CEO of Zappos, the company devotes the greatest amount of time to A. seeking out new and unusual styles of shoes from all over the world. B. improving the website to make it faster, more interesting, and fun. C. seeking out new markets that will go beyond the Internet. D. finding the fastest and least expensive modes of delivery for its products. E. finding ways to improve customer-service levels.

Q: Which of the following statements about Zappos is most accurate?A. Zappos limits its inventory to a selection of high-end fashion footwear.B. Zappos carries more than 1,000 different brands.C. Zappos can guarantee overnight shipping to all its customers because they know ahead of time what they will be charged for express service.D. Zappos is so successful because it has chosen a single mission to "sell shoes and nothing else."E. Zappos offers a 30/60/90 return policy whereby refunds are based on how long you have had the shoes.

Q: The Zappos segmentation strategy is based on A. offering the best selection of shoes and the best service to online shoppers. B. designing shoes for every type of occasion. C. dividing all their customers into two distinct segments: people shopping for low price and people shopping for style. D. offering the best selection of shoes through multiple channels of distribution. E. maintaining the simplest method of price points to make the purchase process easy.

Q: The primary focus of Zappos' market segmentation strategy is to sell A. a wide selection of shoes, clothes, accessories, and housewares to people who will buy them online. B. a wide selection of leather shoes and boots to retailers. C. all types of shoes, accessories, and clothing to department stores. D. Spanish novelties and accessories to organizations. E. shoes in its own retail stores.

Q: The company name Zappos was chosen because it A. was the founder's family name. B. conveyed in Spanish the type of product sold. C. inferred how quickly you could purchase the product. D. contained letters from the names of the three founders. E. reflected the brand name of the first line of shoes they sold.

Q: What are the four steps to positioning a product with a perceptual map?

Q: What are the three types of data needed from consumers to develop a perceptual map?

Q: Define product positioning. What are two approaches to product positioning? Give an example of each approach.

Q: Explain the difference between marketing synergies and product synergies.

Q: What are the criteria used to select target markets?

Q: Explain what a market-product grid is and how it is used.

Q: What are the segmentation bases for U.S. organizational (business) markets?

Q: Explain the 80/20 rule.

Q: Assume you are manager of The Outback Steak House, 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.

Q: Describe the four general bases that are used to segment consumer markets.

Q: 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?

Q: A marketing manager should develop segments for a market that meet five principal criteria. List these important factors in forming market segments.

Q: 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.

Q: Explain the difference between mass customization and build-to-order.

Q: Why would an organization produce multiple products or services and then attempt to sell them to two or more market segments?

Q: Why would an organization produce a single product or service and then attempt to sell it to two or more market segments?

Q: Describe the market segmentation process.

Q: What is product differentiation? How does it relate to market segmentation? How does it potentially improve a firm's revenues?

Q: What is market segmentation and why is it important?

Q: The segmentation strategy used by Prince Sports today is A. geographic. B. behavioral. C. psychographic. D. socioeconomic. E. resource-based.

Q: 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

Q: 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.

Q: Figure 8-A Assume that the perceptual map in Figure 8-A 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.

Q: Figure 8-A The perceptual map in Figure 8-A above 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

Q: Figure 8-A Figure 8-A above 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

Q: To effectively positioning a product or brand, companies take four steps: (1) identify the important attributes for the product or brand class; (2) discover how target customers rate competing products or brands with respect to these attributes; (3) ___________; and (4) reposition the company's product or brand in the minds of potential customers. A. discover where the company's product or brand is on these attributes in the minds of potential customers B. decide whether to keep or delete the market segment that your product offering targets C. identify the competitors' brands that make up the consideration set D. create a marketing plan based on customers' perceptions E. identify market niches that were not selected during the market segmentation process

Q: To effectively positioning a product or brand, companies take four steps: (1) identify the important attributes for the product or brand class; (2)__________; (3) discover where the company's product or brand is on these attributes in the minds of potential customers; and (4) reposition the company's product or brand in the minds of potential customers. A. decide whether to keep or delete the market segment that your product offering targets B. identify the competitors' brands that make up the consideration set C. identify market niches that were not selected during the market segmentation process D. discover how target customers rate competing products or brands with respect to these attributes E. create a marketing plan based on customers' perceptions

Q: To effectively positioning a product or brand, companies take four steps: (1) __________; (2) discover how target customers rate competing products or brands with respect to critical attributes; (3) discover where the company's product or brand is on these attributes in the minds of potential customers; and (4) reposition the company's product or brand in the minds of potential customers. A. decide whether to keep or delete the market segment that your product offering targets B. identify the competitors' brands that make up the consideration set C. identify the important attributes for the product or brand class D. create a marketing plan based on customers' perceptions E. identify market niches that were not selected during the market segmentation process

Q: 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

Q: The axes on a perceptual map are A. sales and profitability. B. two 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.

Q: 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

Q: Marketers use perceptual maps as a means to display or graph 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.

Q: A graph displaying consumers' perceptions of product attributes in two dimensions is referred to as a A. perceptual map. B. perception matrix. C. growth-share matrix. D. market-product grid. E. product differentiation chart.

Q: A perceptual map refers to 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 or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand. 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 products.

Q: A means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand, is referred to as a A. perception matrix. B. growth-share matrix. C. market-product grid. D. perceptual map. E. product differentiation chart.

Q: "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

Q: 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 drug stores, 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.

Q: 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. lateral D. repositioning E. differentiation

Q: 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.

Q: 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

Q: In the athletic shoe market, Reebok and Nike practice __________ positioning since both manufacturers vie for the same customers with technologically advanced products. A. psychological B. perceptual C. differentiation D. head-to-head E. market

Q: Head-to-head positioning requires a product to A. compete with products from competitors of the same size and country of origin. B. compete with competitors on similar product attributes but in a different market. C. compete with competitors on similar product attributes in the same market. D. compete against very similar products from its own company. E. compete against a single competitor with an identical offering.

Q: One approach to positioning a new product in a market is __________ positioning, which involves competing directly with competitors on similar product attributes in the same target market. A. perceptual B. head-to-head C. psychological D. differentiation E. market

Q: Positioning that involves competing directly with competitors on similar product attributes in the same target market is referred to as __________. A. competitive repositioning B. position downsizing C. differentiation positioning D. head-to-head positioning E. product distinction positioning

Q: Mott's used an advertising campaign to change the way consumers thought about its applesauce from a dinnertime side dish to a replacement for cooking oil in baking. The advertising message was that using applesauce in baking cuts calories and makes the resulting baked good healthier. Mott's used a __________ strategy. A. product repositioning B. perceptual mapping C. product positioning D. product differentiation E. psychographic

Q: Recently, U.S. dairies, struggling to increase milk sales, tried to change the way adults thought about chocolate milk. The dairies wanted to __________ chocolate milk in the minds of adult consumers. A. segment B. differentiate C. explain D. promote E. reposition

Q: Product repositioning refers to A. the place a product offering occupies in consumers' minds on important attributes. B. using a market-product grid to place products in their appropriate places on that grid to identify potential untapped markets. C. changing the place an offering occupies in consumers' minds relative to competitive products. D. the practice of selling off a firm's least successful product line and redirecting that revenue into a totally new product. E. the competitive advantage of one product over another.

Q: Changing the place an offering occupies in consumers' minds relative to competitive products is referred to as A. product placement. B. perceptual mapping. C. product positioning. D. product repositioning. E. product differentiation.

Q: Product positioning refers to A. an outdated concept that assigns product value by association with social class. B. the place a product offering occupies in consumers' minds on important attributes. C. the competitive advantage of one product over another. D. changing the place a product occupies in a consumer's mind relative to competitive products. E. using a market-product grid to place products in their appropriate places on that grid to identify potential untapped markets.

Q: The place a product occupies in consumers' minds on important attributes relative to competitive products is referred to as A. product repositioning. B. relative positioning. C. competitive positioning. D. product positioning. E. selective perception.

Q: __________ often come at the expense of __________ because a single customer segment will likely require a variety of products, each of which will have to designed and manufactured. A. Product synergies; marketing synergies B. Marketing synergies; product synergies C. Supplier synergies; consumer synergies D. Distributor synergies; supplier synergies E. Marketing synergies; finance synergies

Q: Marketing synergies often come at the expense of product synergies because A. product synergies are more effective for penetrating a market rather than creating one. B. multiple market segments usually require multiple products. C. it is easier to change a product than to completely develop a new marketing plan. D. a single customer segment will likely require a variety of products. E. no company can afford to do both at the same time.

Q: Two key types of synergies are __________. A. supplier and distributor synergies B. market and product synergies C. industry-dominated and consumer-dominated D. product and production synergies E. consumer and market synergies

Q: Apple Market-Product Grid According to the Apple market-product grid above, Apple would most likely get the LEAST product synergies from the A. Mac Pro and MacBook Pro. B. Mac Pro and iMac. C. Mac Pro and MacBook Air. D. Mac Pro and Mac Mini. E. iMac and Mac Mini.

Q: Apple Market-Product Grid In the Apple market-product grid shown above for its personal computer line, the iMac is popular among all the segments Apple can target. This allows Apple to enjoy __________. A. segmentation synergies B. marketing synergies C. product synergies D. the 80/20 rule E. frequency marketing

Q: Apple Market-Product Grid According to the Apple market-product grid above, Apple would most likely get the LEAST market synergies from A. teachers and college staff. B. individuals and small home office users. C. medium/large businesses and college faculty. D. students, teachers, and college faculty. E. creative professionals.

Q: Apple Market-Product Grid In the Apple market-product grid shown above for its personal computer line, the professional segment of medium/large businesses seems willing to purchase all of the items in Apple's product line. This allows Apple to enjoy cost savings due to __________. A. segment differentiation B. marketing synergies C. product synergies D. segment repositioning E. product differentiation

Q: In the early 1980s, Apple, Inc. was often called "Camp Runamok" because A. every employee was encouraged to do his or her own thing. B. it was concentrating on laptops while everyone else was concentrating on personal computers. C. all the employees were so young, so they often played more than they worked. D. there were no coherent product lines targeted at identifiable market segments. E. its personal computers were running amok with viruses, spyware, and other problems.

Q: When considering the quick-service restaurant competition, it will be most important for Wendy's to consider not only the offerings of Burger King, McDonald's, Five Guys Burgers, and other hamburger chains but also theA. meals at golf and country clubs.B. dormitory meal plans at surrounding colleges and universities.C. items for sale at gas stations and convenience stores.D. local farmer's markets that sell produce.E. nearly every food item sold at local grocery stores.

Q: Which of the following competitors mentioned in the textbook should the owner of a Wendy's restaurant monitor closely due to its explosive growth in the number of current and proposed locations - one that is or may soon be near this Wendy's? A. Burger King B. In-N-Out Burger C. McDonald's D. Five Guys Burgers E. Smashburger

Q: Figure 8-7 Figure 8-7 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus with chosen market segments and product groupings. The next step is to develop a simple marketing action to reach a target market. Sending out coupons for 10 percent off all purchases between 2:00 p.m. and 4:30 p.m. during the winter quarter would target potential A. dormitory customers. B. night commuter customers. C. between-meal snack customers. D. after-dinner snack customers. E. apartment customers.