general business data bank

1. Business buyers seek different bundles based on their stage in the purchase decision process. ________ are customers who are starting their purchasing relationship and they want easy-to-read manuals, hot lines, high levels of training, and knowledgeable sales reps.

a. First-time prospects

b. Sophisticates

c. Global partners

d. Trend-setters

e. Novices

2. If your marketing department established a priority in reaching solution-oriented customers (e.g., those that want value through more benefits and advice), ________ would be the best means for connecting with these customers.

a. transaction selling

b. consultative selling

c. enterprise selling

d. dual selling

e. psychological selling

3. During which step of the segmentation process would the marketer group customers into segments based on similar needs and benefits sought by the customer in solving a particular consumption problem?

a. Step 2—segment identification

b. Step 3—segment attractiveness

c. Step 6—segment “acid test”

d. Step 1—needs-based segmentation

e. Step 7—marketing-mix strategy

4. If an organization’s marketing department wished to create “segment storyboards” to test the attractiveness of each segment’s positioning strategy, this action would most likely occur in the ________ step of the segmentation process.

a. needs-based segmentation

b. segment identification

c. segment profitability

d. segment “acid test”

e. marketing-mix strategy

5. To be useful, market segments must rate favorably on five key criteria. In the ________ criterion, effective programs can be formulated for attracting and serving the segments.

a. measurable

b. substantial

c. accessible

d. differentiable

e. actionable

6. In evaluating different market segments, the firm must look at two factors: the segment’s overall attractiveness and ________.

a. company’s objectives and resources

b. the product to be sold

c. the purchasing process

d. competition’s strategies

e. the global nature of the product

7. Volkswagen concentrates on the small-car market and Porsche on the sports car market. These would be examples of what is called ________.

a. single-segment concentration

b. selective specialization

c. product specialization

d. market specialization

e. full market coverage

8. All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment’s needs, a strong market presence, operating economies through specializing in production, distribution, and promotion.

a. single-segment concentration

b. selective specialization

c. product specialization

d. market specialization

e. full market coverage

9. When a symphony orchestra targets people who have broad cultural interests, rather than only those who regularly attend concerts, the orchestra is targeting what are called ________.

a. market mavens

b. strategic segments

c. supersegments

d. occasion segments

e. psychodemographic segments

10. Which of the following best represents the chief advantage of pursuing a multisegment strategy?

a. It makes the company almost bullet proof to competitors’ actions.

b. It diversifies the firm’s risk.

c. It creates synergy between markets.

d. It is a low cost strategy.

e. It treats all buyers the same and, therefore, lowers promotion costs.

11. The chief disadvantage to a firm that decides to follow a product specialization strategy in selecting target markets is that ________.

a. no synergy exists

b. logistics can become a nightmare

c. the product may be supplanted by an entirely new technology

d. competitors can easily copy any new product introductions

e. e-commerce becomes difficult for the company

12. With ________ as a target market strategy, the firm concentrates on serving many needs of a particular customer group.

a. single-segment concentration

b. selective specialization

c. product specialization

d. market specialization

e. full market coverage

13. The two ways that large firms can cover a whole market (e.g., full market coverage strategy) are through ________ and differentiated marketing.

a. undifferentiated

b. logistical

c. psychological

d. niche

e. macromarketing

14. In ________ marketing, the firm operates in several market segments and designs different products for each segment.

a. segmented

b. undifferentiated

c. differentiated

d. geodemographic

e. niche

15. The best way to manage multiple segments is to appoint ________ with sufficient authority and responsibility for building the segment’s business.

a. a product champion

b. segment managers

c. promotion managers

d. strategic managers

e. mid-level managers

16. All of the following costs are likely to be higher if a marketer pursues a differentiated marketing approach EXCEPT ________.

a. product modification costs

b. manufacturing costs

c. administrative costs

d. inventory costs

e. pricing costs

17. ________ is the strategic coordination of economic, psychological, political, and public relations skills, to gain the cooperation of a number of parties in order to enter or operate in a given market.

a. Metamarketing

b. Macromarketing

c. Micromarketing

d. Megamarketing

e. Modular marketing

18. One way to discover new market segments is to investigate the hierarchy of attributes consumers examine in choosing a brand if they use phased decision strategies. This process is called ________.

a. market partitioning

b. market positioning

c. market segmentation

d. strategic marketing

e. brand marketing

Answer: a

19. Not all attempts to target children, minorities, or other special segments draw criticism. Which of the following is the best illustration of a company (or industry) that seems to be marketing to the above in a correct and ethical way?

a. McDonald’s marketing to inner-city youth.

b. R. J. Reynolds marketing of the Kool brand.

c. Colgate-Palmolive’s Colgate Junior toothpaste.

d. The cereal industry’s approaches to children.

e. G. Heileman Brewing’s approach to Colt 45 malt liquor.

20. Markets are almost always homogeneous.

21. To compete more effectively, many companies are now embracing target marketing.

63. Effective target marketing requires that marketers use market segmentation, market targeting, and market positioning to achieve success in the marketplace.

64. Henry Ford epitomized the market segmentation strategy when he offered the Model-T Ford.

65. A market segment consists of a group of consumers who share a similar set of needs and wants.

66. With respect to market offerings, if a marketer emphasizes a naked solution, he or she is emphasizing the product and service elements that all segment members value.

67. A marketer glances at this month’s market-preference pattern diagram and notices that all of the customers are grouped in the middle of the diagram; therefore, customers are exhibiting clustered preferences.

68. An attractive niche is characterized as having a distinct set of needs.

69. Local marketing reflects a growing trend called macromarketing.

70. Grassroots marketing done at the local level is associated with experiential marketing where experiences are more important than products or services.

71. If you charge for the time customers spend with you, then and only then are you in the servicebusiness.

72. When Nike and Gillette advertise and associate their products with the Boston Marathon, the two companies are engaged in a form of experiential marketing called co-branding.

73. The ultimate level of segmentation leads to “segments of one,” “customized marketing,” or “one-to-one marketing.”

74. Two broad groups of variables are used to segment consumer markets: geographic and demographic variables.

75. Typical groupings (segments) that might be designated using the geographic method of segmentation might be density, climate, or city/metro size.

76. Illustrations of personality segmentation would include culture-oriented, sports-centered, or outdoor-oriented subsegments.

77. According to a new PRIZM cluster configuration, the Cosmopolitan tends to locate in cities such as Las Vegas, Miami, or Albuquerque.

78. A local service company has decided to segment its market based on occupation; therefore, it has chosen a form of demographic segmentation for its approach.

79. Life stage defines a person’s age.

80. Men and women have different attitudinal and behavioral orientations caused mainly by their genetic makeup.