Q&A Hero

Q: Name and describe the three targeting strategies. For each strategy, name one advantage and one disadvantage of using the strategy.

Q: List, in correct order, the steps in segmenting a market.

Q: Name the four broad segments of the business market.

Q: What is usage-rate segmentation? What is the 80/20 principle, and how does it apply to usage-rate segmentation?

Q: What is benefit segmentation? For toothpaste, list six benefits that might be sought by consumers. For each benefit, give an existing brand name that best exemplifies segmentation according to that benefit.

Q: What is geodemographic segmentation? What is the result of geodemographic segmentation? Give one specific example that illustrates this type of segmentation.

Q: Describe psychographic segmentation and discuss why marketers use the basis for segmenting markets. List the four psychographic variables commonly used as segmentation bases.

Q: What is the family life cycle (FLC)? Using the following selected stages from the FLC, briefly describe the lifestyle and purchasing needs of consumers in that stage: (1) Young single, (2) Young married without children, (3) Young married with children, (4) Middle-aged married without children, and (5) Older unmarried.

Q: Marketers use demographic information to segment markets because it is widely available and often related to consumers' purchasing and consumption behavior. List five common bases used by marketers for demographic segmentation. For each base listed, give an example of a product specifically targeted to the needs and wants of the segment identified within the base.

Q: What is geographic segmentation? Name four reasons why a company would use a regional marketing approach. Then give a specific example of a company marketing its product(s) regionally.

Q: Discuss the advantages and disadvantages of single-variable segmentation and multiple-variable segmentation.

Q: What is a segmentation base (or segmentation variable)? Name the common segmentation bases used by marketers to segment consumer markets.

Q: To be useful, a segmentation scheme must produce segments that meet four basic criteria. Name and briefly describe each of these four criteria.

Q: What is a market segment? Define market segmentation and discuss why market segmentation is important to the well-being of most companies.

Q: You are given the following limited information about a market consisting of ten people. Describe all the possible ways to segment this market.Gender IncomeMale MediumFemale LowFemale LowMale HighFemale LowMale LowMale MediumMale HighFemale HighFemale High

Q: What are the four criteria that are necessary to define a market?

Q: NARRBEGIN: Mercedes-BenzMercedes-BenzDaimler AG, the maker of Mercedes-Benz automobiles, is planning to launch a new line of downsized luxury vehicles in the United States by 2012. Daimler has experienced a recent drop in global sales attributed to its product mix that focuses on larger luxury automobiles. With increasing fuel prices and stricter U.S. fuel-economy standards coming down the pipeline, Daimler doesn"t want to be left behind. Daimler is behind its competition, though. Its German rivals, Audi and BMW, have been relatively successful in the U.S. BMW"s Mini Cooper, demanding as much as $34,000, has already driven away with some of Daimler's potential sales. While Daimler already offers the Smart car in the U.S., the new offerings will not be going after the same consumers.NARRENDRefer to Mercedes-Benz. Which positioning base will Daimler be using if the company emphasizes the type of people who buy Mercedes-Benz automobiles in its promotional efforts?a. product userb. emotionc. price and qualityd. attributee. use or application

Q: NARRBEGIN: Mercedes-BenzMercedes-BenzDaimler AG, the maker of Mercedes-Benz automobiles, is planning to launch a new line of downsized luxury vehicles in the United States by 2012. Daimler has experienced a recent drop in global sales attributed to its product mix that focuses on larger luxury automobiles. With increasing fuel prices and stricter U.S. fuel-economy standards coming down the pipeline, Daimler doesn"t want to be left behind. Daimler is behind its competition, though. Its German rivals, Audi and BMW, have been relatively successful in the U.S. BMW"s Mini Cooper, demanding as much as $34,000, has already driven away with some of Daimler's potential sales. While Daimler already offers the Smart car in the U.S., the new offerings will not be going after the same consumers.NARRENDRefer to Mercedes-Benz. One potential problem is that some of the purchasers of Daimler's downsized luxury vehicles could be consumers who would have purchased a larger, higher-priced Mercedes-Benz. This situation is called:a. subjugationb. cannibalizationc. sabotaged. benefit transferencee. marginal sales

Q: NARRBEGIN: Mercedes-BenzMercedes-BenzDaimler AG, the maker of Mercedes-Benz automobiles, is planning to launch a new line of downsized luxury vehicles in the United States by 2012. Daimler has experienced a recent drop in global sales attributed to its product mix that focuses on larger luxury automobiles. With increasing fuel prices and stricter U.S. fuel-economy standards coming down the pipeline, Daimler doesn"t want to be left behind. Daimler is behind its competition, though. Its German rivals, Audi and BMW, have been relatively successful in the U.S. BMW"s Mini Cooper, demanding as much as $34,000, has already driven away with some of Daimler's potential sales. While Daimler already offers the Smart car in the U.S., the new offerings will not be going after the same consumers.NARRENDRefer to Mercedes-Benz. Daimler plans to introduce the downsized luxury vehicles in major U.S. cities, such as Los Angeles, New York, Miami, Atlanta, Dallas, and Chicago, because market research has shown that these metropolitan areas have the greatest potential with respect to the consumers able to purchase a $30,000+ smaller luxury vehicle. Which type of psychographic segmentation does this represent?a. geodemographicb. personalityc. benefitd. usage-ratee. demographic

Q: NARRBEGIN: Mercedes-BenzMercedes-BenzDaimler AG, the maker of Mercedes-Benz automobiles, is planning to launch a new line of downsized luxury vehicles in the United States by 2012. Daimler has experienced a recent drop in global sales attributed to its product mix that focuses on larger luxury automobiles. With increasing fuel prices and stricter U.S. fuel-economy standards coming down the pipeline, Daimler doesn"t want to be left behind. Daimler is behind its competition, though. Its German rivals, Audi and BMW, have been relatively successful in the U.S. BMW"s Mini Cooper, demanding as much as $34,000, has already driven away with some of Daimler's potential sales. While Daimler already offers the Smart car in the U.S., the new offerings will not be going after the same consumers.NARRENDRefer to Mercedes-Benz. Mercedes-Benz's Baby boomers are a useful segment because they meet certain criteria. Which of the following do the baby boomers meet?a. substantialityb. identifiability and measurabilityc. accessibilityd. responsivenesse. all of these

Q: NARRBEGIN: Mercedes-BenzMercedes-BenzDaimler AG, the maker of Mercedes-Benz automobiles, is planning to launch a new line of downsized luxury vehicles in the United States by 2012. Daimler has experienced a recent drop in global sales attributed to its product mix that focuses on larger luxury automobiles. With increasing fuel prices and stricter U.S. fuel-economy standards coming down the pipeline, Daimler doesn"t want to be left behind. Daimler is behind its competition, though. Its German rivals, Audi and BMW, have been relatively successful in the U.S. BMW"s Mini Cooper, demanding as much as $34,000, has already driven away with some of Daimler's potential sales. While Daimler already offers the Smart car in the U.S., the new offerings will not be going after the same consumers.NARRENDRefer to Mercedes-Benz. Baby boomers have money to burn and will be the primary target for the downsized, luxury vehicles offered by Mercedes. Many of them will want this type of car to feel young again. This group is considered a _____.a. consumer advocacy groupb. income ready groupc. marketd. populatione. market maven

Q: NARRBEGIN: Wrestling MerchandiseWrestling MerchandiseMarket research has shown that 6- to 17-year-old males, 18- to 24-year-old females, and 18- to 44-year-old males are most likely to watch a televised professional wrestling event or to attend a live match. Wrestling events are regularly broadcast in 120 different countries. Merchandise licensed by World Wrestling Entertainment (formerly known as the World Wrestling Federation) can be purchased at JCPenney and Wal-Mart. Clothes for adults are used to reach markets that may not buy action figures, video games, and novelty candy, but who are still proud to sport World Wrestling Entertainment (WWE) trademarks.NARRENDRefer to Wrestling Merchandise. Prior to the 1990s, professional wrestling tried to compete as a legitimate sport just like football and baseball. Now it uses the term "sports entertainment" when talking about what it is marketing to its fans. This is an example of the implementation of a(n) _____ strategy.a. multisegmentb. product differentiationc. undifferentiated marketingd. target markete. repositioning

Q: NARRBEGIN: Wrestling MerchandiseWrestling MerchandiseMarket research has shown that 6- to 17-year-old males, 18- to 24-year-old females, and 18- to 44-year-old males are most likely to watch a televised professional wrestling event or to attend a live match. Wrestling events are regularly broadcast in 120 different countries. Merchandise licensed by World Wrestling Entertainment (formerly known as the World Wrestling Federation) can be purchased at JCPenney and Wal-Mart. Clothes for adults are used to reach markets that may not buy action figures, video games, and novelty candy, but who are still proud to sport World Wrestling Entertainment (WWE) trademarks.NARRENDRefer to Wrestling Merchandise. Since the WWE must use different methods to reach its three largest target markets, it must use:a. undifferentiated targetingb. concentrated or niche targetingc. multisegment targetingd. demarketinge. repositioning

Q: NARRBEGIN: Wrestling MerchandiseWrestling MerchandiseMarket research has shown that 6- to 17-year-old males, 18- to 24-year-old females, and 18- to 44-year-old males are most likely to watch a televised professional wrestling event or to attend a live match. Wrestling events are regularly broadcast in 120 different countries. Merchandise licensed by World Wrestling Entertainment (formerly known as the World Wrestling Federation) can be purchased at JCPenney and Wal-Mart. Clothes for adults are used to reach markets that may not buy action figures, video games, and novelty candy, but who are still proud to sport World Wrestling Entertainment (WWE) trademarks.NARRENDRefer to Wrestling Merchandise. The marketing research revealed that _____ segmentation can be used to identify the biggest fans of professional wrestling.a. benefitb. psychographicc. demographicd. geographice. geodemographic

Q: NARRBEGIN: Wrestling MerchandiseWrestling MerchandiseMarket research has shown that 6- to 17-year-old males, 18- to 24-year-old females, and 18- to 44-year-old males are most likely to watch a televised professional wrestling event or to attend a live match. Wrestling events are regularly broadcast in 120 different countries. Merchandise licensed by World Wrestling Entertainment (formerly known as the World Wrestling Federation) can be purchased at JCPenney and Wal-Mart. Clothes for adults are used to reach markets that may not buy action figures, video games, and novelty candy, but who are still proud to sport World Wrestling Entertainment (WWE) trademarks.NARRENDRefer to Wrestling Merchandise. Most Wrestling fans live in the southern United States. Based on this information, what segmentation base would be appropriate?a. geographicb. demographicc. psychographicd. product usee. benefit sought

Q: NARRBEGIN: Wrestling MerchandiseWrestling MerchandiseMarket research has shown that 6- to 17-year-old males, 18- to 24-year-old females, and 18- to 44-year-old males are most likely to watch a televised professional wrestling event or to attend a live match. Wrestling events are regularly broadcast in 120 different countries. Merchandise licensed by World Wrestling Entertainment (formerly known as the World Wrestling Federation) can be purchased at JCPenney and Wal-Mart. Clothes for adults are used to reach markets that may not buy action figures, video games, and novelty candy, but who are still proud to sport World Wrestling Entertainment (WWE) trademarks.NARRENDRefer to Wrestling Merchandise. The groups identified above as strong wrestling fans can be described as:a. market positionsb. market segmentsc. positioningsd. organizational buyerse. microsegments

Q: The Barter Company (TBC) located in Kennesaw, Georgia acts as a broker between companies that want to trade products or services. Companies must be a TBC member, and there is a one-time fee to join. The Barter Company charges a brokerage fee on each transaction facilitated. The Barter Company is an example of a (n): a. service integrator b. job source c. business service d. extended service e. component service

Q: A small retailer hired an accountant to run its payroll and pay its taxes. The accountant provided the retailer with: a. OEMs b. processed services c. business services d. accessory services e. service supplies

Q: Business services: a. are capital items b. are never outsourced c. are not used in reciprocity arrangements d. typically become part of the finished product e. are expense items

Q: At an accounting firm, the secretary orders printer cartridges, cases of paper, paper clips, and other small items. These items would be classified as: a. replacement parts b. provisions c. OEM parts d. accessory equipment e. supplies

Q: Another name for business supplies like pens, paper, and file folders is: a. processing goods b. components c. OEM parts d. MRO items e. accessories

Q: _____ are consumable, inexpensive, and often standardized items that do not become part of the final product. a. Processed materials b. Supplies c. Provisions d. Accessory equipment e. Replacement parts

Q: Metalcrafter Enterprise manufactures stamped brass door plates, brass numbers, and other decorative brass trim for homes. Every month Metalcrafter purchases sheets of brass, which are classified as: a. processed materials b. fabricating supplies c. raw materials d. component parts e. replacement parts

Q: A dog food manufacturer purchases processed meat by-products that it uses in the manufacture of a dry dog food. These processed meat by-products are examples of: a. raw materials b. OEM products c. processed materials d. component parts e. replacement parts

Q: No-Glut is a small company that manufactures several gluten-free products for consumers who cannot digest this substance. For this manufacturer, rice flour, which will be used in its manufacturing process, is a(n) a. accessory equipment b. fabricating material c. component part d. integrated material e. processed material

Q: Products that have had some processing, are used directly in the production of other products, and do not retain their identity in the final product are called: a. raw materials b. supplies c. processed materials d. component parts e. replacement parts

Q: PAS Systems has developed an unobtrusive flashlight-alcohol detector. The flashlight readings are inadmissible in court but are used by police officers to decide whether to hold someone for a sobriety test. Each one costs $600. The manufacturer assembles a breathalyzer from one supplier with a slightly modified flashlight case from another supplier to make the new product. The breathalyzer and the flashlight case are examples of: a. major equipment b. component parts c. processed materials d. integrated parts e. accessory equipment

Q: Within the business market, roller belts that are purchased by vacuum manufacturers are examples of: a. supplies b. raw materials c. accessory equipment d. processed materials e. component parts

Q: Finished items ready for assembly or products that need very little processing before they become a part of some other product are called: a. supplies b. raw materials c. accessory equipment d. processed materials e. component parts

Q: Farmer Pat Stein provides local restaurants with organic fruits and vegetables that have been grown without the use of pesticides or chemical fertilizers. Pat Stein is a supplier of: a. accessory parts b. supplies c. raw materials d. unprocessed extractive products e. processed materials

Q: One brand of tomato sauce advertises that the tomatoes it uses are processed within 24 hours of being picked to ensure product freshness. The fresh tomatoes it buys from growers are examples of: a. OEM parts b. raw materials c. component parts d. processed materials e. supplies

Q: Unprocessed extractive or agricultural products, such as copper, peanuts, soybean, bauxite, fruits, ore, etc., that become part of finished products are examples of: a. supplies b. OEM parts c. component parts d. processed materials e. raw materials

Q: Which of the following is the BEST example of accessory equipment? a. a parking lot b. a store display rack c. accounting services d. a river barge e. light bulbs

Q: For a police department, firearms, computers, printers, fax machines, and patrol vehicles are all examples of _____ because they are shown as expenses on the yearly accounting statements. a. mobile installation b. component part c. processed material d. supply e. accessory equipment

Q: Copying machines, personal computers, and fax machines are typically classified as _____ because they are not expensive, have short useful lives, and are frequently purchased from local distributors. a. accessory equipment b. mobile equipment c. component parts d. processed materials e. supplies

Q: Which type of business product represents goods, such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment? a. accessory equipment b. component parts c. processed goods d. supplies e. intermediate goods

Q: Southeastern Concrete Company has 15 concrete trucks. The company's accountant depreciated the value of the vehicles over several years. What type of business product is the concrete truck? a. major equipment b. component part c. processed material d. fabricating item e. accessory equipment

Q: Claas is Europe's largest manufacturer of combine harvesters. As farming becomes more professional and more intensive, farmers are buying more sophisticated machines, which Claas can supply. The expensive machines sold by Claas would be examples of: a. installations b. component parts c. accessory equipment d. processed materials e. minor equipment

Q: Products such as parking garages, mainframe computers, privately owned office buildings, and street-cleaning equipment are depreciated over time rather than expensed in the year they are purchased. These are classified as: a. processed materials b. accessory equipment c. major equipment d. supplies e. component parts

Q: Which of the following is the BEST example of an installation? a. a baseball stadium b. a checkout counter c. a lifeguard stand d. a file cabinet e. original artwork

Q: Major equipment goods, such as machines, mainframe computers, and buildings are also referred to as: a. investment goods b. necessity goods c. capital components d. strategic goods e. installations

Q: Which type of business product includes such capital goods as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings? a. major equipment b. raw materials c. component parts d. accessory equipment e. investment goods

Q: All of the following are considered types of business products EXCEPT: a. raw materials. b. convenience goods c. major equipment d. accessory equipment e. component parts

Q: Personal selling is pervasive in organizational markets because: a. most of the situations involve fairly low cost items b. there are few avenues for effective advertising of organizational goods c. organizational salespeople seldom speak the language of their customers d. it is the most inexpensive method of promotion e. many organizational products are complex and require expertise on the salesperson's part

Q: _____ is the primary promotional method for the sale of all business products. a. Direct mail b. Advertising c. Personal selling d. Public relations e. Trade promotions

Q: Which of the following statements does NOT describe the business market? a. Organizational buying decisions are usually made independently by a purchasing agent while consumer buying decisions are made jointly. b. Business customers tend to be more geographically concentrated, and customers in consumer markets tend to be more geographically dispersed. c. The channel of distribution is more often direct for business markets than for consumer markets. d. Purchasing by businesses is a more formal process than it is in consumer markets. e. Business marketers tend to have far fewer customers than consumer marketers.

Q: _____ occurs when a deli decides to buy its office supplies from a company that regularly buys sandwiches for its employees. a. Reciprocity b. Joint demand c. Elastic demand d. Derived demand e. Bidding conformity

Q: A industrial cleaning products distributor needed to hire a janitorial service to keep his establishment clean so he chose one of his customers for the job. This is an example of _____. a. nested demand b. derived demand c. reciprocity d. elastic demand e. circular buying

Q: If a business needs a particular good or service and decides to look among its own customers for a provider of that good or service, the business is: a. working to create purchase arbitration b. opening itself up to prosecution for illegal activities c. acting unethically d. trying to eliminate derived demand barriers e. practicing reciprocity

Q: _____ is the bargaining between buyers and sellers on product specifications, delivery dates, payment terms, and other pricing matters and is commonplace in business marketing. a. Negotiation b. Need mediation c. Customerization d. Purchase arbitration e. Disintermediation

Q: The distribution structure in business marketing typically: a. includes at least one wholesaler b. is direct c. is complex and multistage d. uses a three-step channel e. uses retail distributors

Q: Buyers in the business market tend to _____ than buyers in the consumer market. a. use reciprocity less b. purchase in much smaller quantities c. buy more products that have a reduced probability of being affected by derived demand d. generate more stable demand trends e. be much more geographically concentrated

Q: Jif is the best-selling brand of peanut butter in the country. The manufacturer purchases large quantities of peanuts every year to manufacturer its product. This order size is an example of _____ and would give Jif an advantage over other buyers of peanuts. a. purchase volume b. joint demand c. fluctuating demand d. sales volume e. multiplier effect

Q: Electric cars will increase the demand for electricity, which will then dramatically increase demand for the equipment needed to provide consumers with the electricity. This dramatic increase is due to the: a. demand fluctuator principle b. joint demand principle or division effect c. inelastic demand effect d. circumlocution effect e. accelerator principle

Q: As a result of the _____, a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to manufacture the consumer product. a. demand fluctuation principle b. joint demand principle or division effect c. inelastic demand effect d. multiplier effect e. derived force effect

Q: Although the price of a chemical added to paint to protect surfaces from mold and mildew has almost doubled, the price of paint only rose an average of 5 percent, and the demand for both paint and the chemical that eliminates mold and mildew remained stable. The demand for this chemical is: a. elastic b. derived c. bundled d. inelastic e. change-resistant

Q: During the first years of this century, the number of packages arriving at households has more than doubled. An increase in the price of the cardboard boxes in which these packages are shipped will have little effect on the amount of shipping done; the demand for the boxes will continue to increase. Therefore, you know the demand for the cardboard boxes is: a. resistant b. inelastic c. derived d. elastic e. bundled

Q: Due to rapidly rising overhead costs and increases in raw material prices, Framarx Corporation was forced to raise the price of its waxed and coated paper by 35 percent. (The paper is used between frozen hamburger patties to keep the patties from freezing together.) Framarx is the leading manufacturer in this industry, and its competitors will follow suit. While the sales force for Framarx believes the price increase will result in a drop in sales, its marketing manager disagrees because the demand for the waxed and coated paper is more than likely: a. resistant b. inelastic c. derived d. elastic e. bundled

Q: Lanover Manufacturing supplies windshield wiper blades to General Motors and Ford. A sudden jump in the price of rubber and its substitutes has forced Lanover and other wiper blades manufacturers to double the price of the wiper blades. This increase in price has not affected sales volume for wiper blades. The price change did not change demand for windshield wiper blades because demand for this product by business customers is: a. inelastic b. secure c. bundled d. elastic e. resistant

Q: An acute shortage of heavy-duty tires is threatening to disrupt operations in mining and construction sites around the world. According to one mine operator, "I've got the coal and market, and I have the trucks to haul the coal, but I don't have the tires. I"d be willing to pay double the price if I could get the tires I need." The demand for heavy-duty tires is: a. joint b. inelastic c. elastic d. congruent e. derived

Q: When demand for a product is _____, an increase or decrease in the price of the product will not significantly affect demand for the product. a. responsive b. elastic c. inelastic d. derived e. bundled

Q: A decline in the availability of bicycle handle bars will decrease Huffy Bicycle Company's production of bicycles. Decreased production in turn reduces Huffy's demand for bicycle seats. This is because the products in this situation have _____ demand. a. inelastic b. joint c. elastic d. congruent e. derived

Q: Apple iTunes has sold over five billion downloads. Without iTunes the demand for the Apple iPod line of products would be small. Without the musicians there would be no iTunes. A condition of _____ demand exists. a. bundled b. incremental c. functional d. developmental e. joint

Q: When two or more items are used in combination to produce a final product, they are said to have _____ demand. a. derived b. inelastic c. joint d. fluctuating e. elastic

Q: Bbolina Tetra is a Hungarian company that has genetically created a chicken that is guaranteed to produce uniform brown eggs with strong shells. It breeds and sells young chicks to farmers all over Europe who want to sell eggs in local markets. When consumers began to worry about cholesterol content and stopped eating as many eggs, the demand for the Tetra hen also declined. This would be an example of _____ demand. a. derived b. elastic c. multiplying d. bundled e. inelastic

Q: When the demand for packaged beer fell by 8 percent in one year, the demand for aluminum beer cans and glass beer bottles fell also because the demand for beer containers is an example of a(n) _____ demand. a. joint b. inelastic c. elastic d. fluctuating e. derived

Q: Inland Eastex manufactures a heavy paper stock that is used for printing covers for many different types and sizes of consumer magazines. Consumer magazine sales determine how much paper Inland Eastex sells. This is an example of: a. joint demand b. inelastic demand c. elastic demand d. congruent demand e. derived demand

Q: The demand for consumer goods often affects the demand for business products. This characteristic of business markets is called _____ demand. a. elastic b. inelastic c. fluctuating d. derived e. joint

Q: All of the following are demand characteristics of business markets EXCEPT: a. inelastic demand b. fluctuating demand c. joint demand d. stable demand e. derived demand

Q: Managers can use the NAICS data to: a. create a more focused mission statement b. eliminate risk c. classify consumer behavior d. identify potential new customers e. determine purchase motives