Marketing Online Assignment

Market Segmentation, Targeting, and Positioning For Competitive Advantage (Part 3)

Multiple Choice Questions


Note: The answers are boldly marked.

1. All of the following would be among the chief factors to consider when choosing a market-coverage strategy EXCEPT:
a.       organizational culture.
b.      product variability.
c.       product’s life-cycle.
d.      market variability.

2. The way the product is defined by consumers on important attributes is called ________________.
a.       market segmentation
b.      image psychology
c.       product position
d.      market targeting

3. The positioning task consists of three steps.  Which of the following does not belong?
a.       Identifying a set of possible competitive advantages upon which to build a position.
b.      Choosing the right competitive advantages.
c.       Comparing the position with ethical and legal guidelines established by the trade.
d.      Selecting an overall positioning strategy.

4. The key to winning and keeping customers is to understand their needs and buying processes better than competitors do and:
a.       advertise constantly to let customers know about changes in products and services.
b.      hire the best sales people.
c.       have an updated Web presence.
d.      to deliver more value.

5. Product differentiation can be along all of the following lines EXCEPT:
a.       consistency.
b.      durability.
c.       reliability.
d.      competitive parity.

6. Gaining competitive advantage through speedy or careful delivery is an example of which type of differentiation?
a.       product
b.      services
c.       personnel
d.      image

7. The strategy of choosing one attribute to excel at to create competitive advantage is known as (the):
a.      unique selling proposition.
b.      under positioning.
c.       over positioning.
d.      confused positioning.
8. In general, a company needs to avoid three major positioning errors. Which of the following is NOT one of those errors?
a.       Under positioning
b.      repositioning
c.       over positioning
d.      confused positioning

9. In determining which differences to promote, focusing on a difference that delivers a highly valued benefit to target buyers would mean selecting the difference that is most:
a.      important.
b.      distinctive.
c.       superior.
d.      communicable.

10. Choosing a product difference that competitors cannot easily copy would be which kind of differentiation criterion?
a.       important
b.      distinctive
c.       superior
d.      preemptive

11. A brand’s _____________ is the full positioning of the brand—the full mix of benefits upon which it is positioned.
a.       distinctive proposition
b.      preemptive proposition
c.       value proposition
d.      superior proposition

12. The text describes a series of value propositions.  Of these propositions, Southwest Airlines has chosen to adopt the:
a.       more for less proposition.
b.      less for much less proposition.
c.       same for less proposition.
d.      more for more proposition.


True/False Questions

13. Companies today realize that they can appeal to all buyers in the marketplace by using concentrated marketing.
Answer:   (False)

14. Because of profit pressures and the threat of the Internet, most companies have now moved away from market segmentation and targeting and toward mass marketing.
Answer: (False) 

15. With respect to markets, the “shotgun” approach in marketing efforts seems to be better than the “rifle” approach.
Answer: (False)

16. Market segmentation is the process of taking a market and dividing the buyers into distinct groups for which marketing mixes can be constructed.
Answer:  (True)

17. Today, most companies are rushing toward mass marketing because of the changing nature of the marketplace.
Answer: (False)

18. A good illustration of the niche marketing approach was when Henry Ford said (with respect to cars) “they can have any color they want as long as it’s black.”
Answer:  (False)    

19. Micromarketing is focusing on sub segments or niches with distinctive traits that may seek a special combination of benefits.
Answer:  (False)

20. If a marketer were to tailor products and marketing programs to the needs and wants of specific individuals and local customer groups, the marketer would be practicing micromarketing.
Answer:  (True) 

31. One of the drawbacks for adopting a policy of local marketing is that it can drive up manufacturing and marketing costs by reducing economies of scale.
Answer: (True) 

32. Because buyers have unique needs and wants, each buyer is potentially a separate market.
Answer:  (True)

33. Customized marketing is often called individual marketing.
Answer:   (True) 

34. An example of a firm that practices individual marketing is Mattel, with it’s my design page of its Barbie Web site.
Answer:  (True)

35. The move toward individual marketing mirrors the trend in consumer concentration strategy.
Answer:  (False)

36. The most popular base for segmenting markets and customer groups is geographic segmentation.
Answer:  (False) 

37. Demographic variables are easier to measure than most other types of variables with respect to segmentation.
Answer:   (True)

38. Income segmentation is used not only with the affluent, but also with the consumers with lower spending power.
Answer:  (True)

39. Psychographic segmentation occurs when a market is divided into different groups based on social class, lifestyle, or personality characteristics.
Answer:   (True)  

40. One of the forms of behavioral segmentation would be lifestyle segmentation.
Answer:  (False)

41. If a marketer were to link U.S. Census data with lifestyle patterns to better segment markets, this would be an example of geodemographic segmentation.
Answer: (True)

42. A common way to segment a business market would be to segment based on operating characteristics and situational factors.
Answer:  (True)

43. Segmenting international markets on the basis of geographic, economic, political,cultural, and other factors is called international psychographics.
Answer:   (False)

44. To be useful, a market segment must be substantial.
Answer:  (True)

45. To be useful, a market segment must be conspicuous.
Answer:  (False)

46. A market segment is a set of buyers sharing common needs or characteristics that the company decides to serve.
Answer:  (False)

47. Concentrated marketing is a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.
Answer: (False)

48. If a firm decides to go after a large share of one or a few segments or niches, then
     the firm will probably be following a concentrated marketing strategy.
Answer: (True)

49. In market targeting, the issue is not how and for what, but who is targeted.

Answer:  (False)

50. A product’s position is the way the product is defined by consumers on important attributes.

Answer:  (True)

51. One of the major positioning errors that a company needs to avoid is that of confused positioning.
Answer:  (True)

52. A difference is worth establishing to the extent that it satisfies the criterion of cultural imperative.
Answer:   (False)

53. According to the nine cell matrix that describes possible value propositions, the cell that produces a higher price for reduced benefits should be pursued by the marketer.
Answer:   (False)

54. According to the value proposition presented by Southwest Airlines, the customer gets “less for much less.”
Answer:  (True)