Chapter 8: Identifying Market Segments and Targets

GENERAL CONCEPT QUESTIONS

Multiple Choice

1. Instead of scattering their marketing effort (a “shotgun” approach), many companies are now embracing target marketing where the focus is on those consumers that they have thegreatest chance of satisfying (a ________ approach) with their products and services.

a. “rifle”

b. “focused”

c. “niche”

d. “macro”

e. “micro”

2. In ________ marketing, the seller engages in the mass production, mass distribution, and mass promotion of one product for all buyers.

a. group

b. mass

c. general

d. segmented

e. differentiated

3. The argument for ________ marketing is that it creates the largest potential market, which leads to the lowest costs, which in turn can lead to lower prices or higher margins.

a. niche

b. micro

c. macro

d. differentiated

e. mass

4. A ________ consists of a group of customers who share a similar set of needs and wants.

a. market target

b. market group

c. market slice

d. market segment

e. market level

5. A ________ consists of two parts: a naked solution and discretionary options.

a. differentiated market offering

b. flexible market offering

c. rigid market offering

d. vertical market offering

e. horizontal market offering

6. If a marketing manager observes that his or her market shows no natural segments and consumers seem to have roughly the same preferences, the marketing manager will most likely be faced with a ________ preferences pattern.

a. homogeneous

b. heterogeneous

c. diffused

d. clustered

e. scattered

7. Procter & Gamble has many soap brands. One reason for this is that soap users tend to group together in terms of preferences such as bleaching action, softness, stain-removal, et cetera. Which of the following preferences pattern would most likely apply to P&G’s method of response to market needs?

a. Homogeneous preferences.

b. Diffused preferences.

c. Clustered preferences.

d. Psychological preferences.

e. Cultural preferences.

8. Marketers usually identify niches by ________.

a. dividing a segment into subsegments

b. conducting VALS tests

c. allowing consumers to gravitate toward product brands

d. examining the demographics section of The Handbook of Marketing

e. producing products that can be used in a variety of ways

9. A niche is characterized as being all of the following EXCEPT ________.

a. the customers in the niche have a distinct set of needs

b. the customers will pay a premium to the firm that satisfies their needs

c. the niche is not likely to attract other competitors

d. the customers generally have smaller amounts of income

e. the nicher gains certain economies through specialization

10. Which of the following has greatly facilitated niche marketing?

a. The Internet

b. Globalization

c. Industrialization

d. Recession

e. Excessive demand

11. When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats?

a. Differentiated marketing

b. Consumer marketing

c. Instructional marketing

d. Partner marketing

e. Grassroots marketing

12. According to thoughts expressed by Pine and Gilmore about a new economic era that is rapidly approaching, if you charge for the time customers spend with you, then and only then are you in the ________ business.

a. niche

b. grassroots

c. experience

d. service

e. goods

13. Through customer experience management (CEM), brands can create five different types of experiences: sense, feel, think, relate, and ________.

a. remembering

b. forgetting

c. simulation

d. act

e. bargain

14. ________ combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product service offering of their choice.

a. Consumptionization

b. Viral marketing

c. Virtual marketing

d. Regionalization

e. Customerization

15. Two broad groups of variables are used to segment consumer markets. One method uses descriptive characteristics such as geography. The other method is to form segments by looking at ________ considerations.

a. gender

b. income

c. cultural

d. interest

e. behavioral

16. If a marketer decides that segmenting a market based on neighborhoods, the marketer will have chosen the ________ method of segmentation.

a. demographic

b. psychographic

c. geographic

d. cultural

e. social class

17. According to established methods of segmenting markets, all of the following would an appropriate segment category if the family life cycle was the segmentation base ACCEPT ________.

a. young, single

b. male, female

c. young, married

d. older, married, no children under 18

e. young, married, youngest child 6 or over

18. A marketing manager is considering several options to market to market segments identified as being either culture-oriented, sports-oriented, or outdoor-oriented. This manager has selected the ________ format for segmenting markets.

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