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)
