Q&A Hero

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.

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. Placing flyers under windshield wipers of cars parked in student parking lots on weekdays between 7:00 a.m. and 4:00 p.m. that offer a $2 off coupon on lunch meal would be especially targeted at potential A. faculty customers. B. staff customers. C. day commuter customers. D. night commuter customers. E. nonstudent customers.

Q: Doris Lewis owns Lewis Edibles, Inc., a company that makes Tongue Tinglin' BBQ Sauce. She wants to target local people who like the special blend of flavors found only in North Carolina barbecue sauce. In developing a marketing strategy to sell the sauce, Lewis decided to join Goodness Grows in North Carolina, a specialty food association that advertises local products and distributes them to local supermarkets and gourmet shops. Lewis has just A. formed a market segment using critical product features. B. formed products to be sold into groups. C. developed a market-product grid and estimating size of markets. D. taken a marketing action to reach a target market segment. E. formed prospective buyers into segments.

Q: During its market segmentation process for the Nike LeBron X basketball shoe, which sells for $200+ a pair, 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.

Q: A rehabilitation center wants to target women in their 20s who have received some permanent disability as the result of a skiing accident. In terms of the criteria used for selecting a target segment, this market would A. have no expected growth. B. not be compatible with the company's current resources. C. not be worth doing since its market size is very small. D. not be readily accessible to the firm's marketing programs. E. be relatively expensive to reach.

Q: Best Foods Company is considering expanding beyond the regional market segments now served by its Hellmann's mayonnaise. One criterion management wants to use to evaluate potential new geographic market segments is whether additional real estate must be purchased or leased to serve new segments. This is an example of which criterion used to select target market segments? A. Best Foods' competitive position in the segment B. Best Foods' product groupings C. expected growth of the market segment D. size of the market segment E. cost of reaching the segment

Q: It is not recommended that a firm select a target segment that A. would require entry in a global marketplace. B. requires more than one marketing action. C. has few competitors that target this same segment. D. is incompatible with its company's goals or objectives. E. has a growth potential that would require increasing the current workforce.

Q: Five general criteria are often used to select target segments. They include: (1) the size of the market; (2) expected growth of the market; (3) competitive position of the firm with respect to the market; (4) cost of reaching the segment; and __________. A. compatibility with the organization's objectives and resources B. potential of a marketing action to reach a segment C. similarity of needs of potential buyers within a segment D. difference of needs of buyers among segments E. potential for increased profit

Q: Which of the following is a criterion used for selecting a target segment? A. potential for increased profit B. similarity of needs of potential buyers within a segment C. cost of reaching the segment D. difference of needs of buyers among segments E. potential of a marketing action to reach a segment

Q: Which of the following is a criterion used for selecting a target segment? A. potential for increased profit B. competitive position C. similarity of needs of potential buyers within a segment D. difference of needs of buyers among segments E. potential of a marketing action to reach a segment

Q: Which of the following is a criterion used for selecting a target market? A. similarity of needs of potential buyers within a segment B. difference of needs of buyers between segments C. expected growth of a segment D. feasibility of a marketing action to reach a segment E. simplicity and cost of assigning potential buyers to segments

Q: Which of the following is a criterion used for selecting a target market? A. similarity of needs of potential buyers within a segment B. difference of needs of sellers between segments C. feasibility of a marketing action to reach a segment D. market size E. simplicity and cost of assigning potential buyers to segments

Q: All of the following are criterion used for selecting target market segments EXCEPT: A. compatibility with the organization's objectives and resources. B. market size. C. simplicity and cost of assigning potential buyers to segments. D. competitive position. E. cost of reaching the segment.

Q: Figure 8-6 Figure 8-6 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus. Assume a large market (shown by a 3) is three times the size of a small market (shown by a 1) and a medium market (shown by a 2) is twice the size of a small market. The largest potential market segment consists of A. students that live in a dormitory. B. students that live in an apartment. C. students that are day commuters. D. students that are night commuters. E. faculty or staff members.

Q: Figure 8-6 Figure 8-6 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus. Assume a large market (shown by a 3) is three times the size of a small market (shown by a 1) and a medium market (shown by a 2) is twice the size of a small market. The meal occasion (product grouping) that comprises the largest product grouping is A. breakfast. B. lunch. C. between-meal snack. D. dinner. E. after-dinner snack.

Q: Figure 8-6 Figure 8-6 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus. The best way to describe how the student market is segmented is A. whether the student is a faculty or staff member. B. whether the student lives near the campus or far away. C. whether the student has the disposable income to eat at Wendy's. D. combining the factors of where the student lives and when (s)he is on campus. E. the meals eaten at the Wendy's restaurant.

Q: Determining the size of specific markets within a market-product grid is helpful in determining which target market segments to select and A. how to implement the 80-20 rule. B. which products to group into meaningful categories. C. how to implement a harvesting strategy. D. which product groupings to offer. E. which products to reposition.

Q: One advantage of a market-product grid is that it can be used to A. make cost-cutting decisions under conditions of uncertainty. B. screen many new product ideas in order to select the one with the best long-run market potential. C. determine which target market segments to select and which product groupings to offer. D. select representative samples of consumers for marketing research studies. E. relate the product life cycle to consumer demand.

Q: After establishing the market segments and product groupings on a market-product grid, the next step is to A. fill in the appropriate cells with precise statistical data from primary and/or secondary sources. B. estimate, with intelligent guesstimates as necessary, the market size for each cell using a simple scale, such as from zero to three. C. total the vertical columns to identify the greatest marketing synergies and efficiencies. D. total the horizontal rows to identify greatest operations/production synergies and efficiencies. E. identify a marketing action for every product-market combination in the grid.

Q: Each cell of the complete market-product grid shows the __________. A. relative market share B. estimated market size C. investment required to reach the market D. market growth rate E. estimated profit

Q: A market-product grid is a framework to relate the market segments of potential buyers to A. estimated expenses for products sold. B. products offered or potential marketing actions by an organization. C. total anticipated revenue. D. total anticipated profit. E. market share of the closest competitor.

Q: A market-product grid is a framework to relate the __________ to products offered or potential marketing actions by an organization. A. market segments of potential buyers B. marketing objectives of potential products C. total anticipated revenue D. total anticipated profit E. market share of the closest competitor

Q: A market-product grid is a framework to relate A. total estimated expenses for each product sold to each market segment. B. total anticipated revenue for each product-market segment combination. C. total anticipated profit for each product sold to each market segment. D. the market segments of current buyers to relative market share compared to the largest competitor. E. the market segments of potential buyers to products offered or potential marketing actions by an organization.

Q: Hallmark placed its scrapbook supplies, photo albums, and related supplies into one product group because A. it was easier to forecast future sales since there were fewer market-product combinations. B. customers could buy in quantity and take advantage of quantity discounts. C. their suppliers provided free displays and shelving to highlight Hallmark's products. D. it helped buyers relate to the products and make decisions in a more meaningful way. E. it allowed customers to compare price and quality with competitors who displayed their products in a similar manner.

Q: Grocery retailer Safeway displays the thousands of items it sells in aisles containing related items or product groupings. Examples would be the pet food aisle or the soft drink aisle. Why would Safeway display and sell product groupings in this manner?A. The groupings increase the number of market-product combinations on the market-product grid, which makes it a more manageable framework for subsequent analysis.B. This form of product groupings makes it easier for customers to get in and out of the store more quickly, creating time utility.C. The products are grouped so people can relate to them in a more meaningful way when they shop.D. Product groupings can be generated quantitatively to show which adhere to the 80/20 rule.E. Suppliers get preferential treatment based upon the number of different UPCs they provide.