Second year CH7

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 the
greatest 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. 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

4. 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

5. 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

6. ________ is the science of using psychology and demographics to better understand consumers.
a. Psychographics
b. Segmentation
c. Clustering
d. Demographics
e. Social psychology

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7. With respect to occasion segmentation, Christmas, Valentine’s Day, and ________ account
for just over half of gifters’ budgets.
a. Halloween
b. Mother’s Day
c. Thanksgiving
d. Independence Day

8. If a marketer is seeking to segment a business market, which of the following variables is

generally felt to be important enough by marketers to place it first among the list of other
variables that can be used in segmentation process?
a. Personal characteristics
b. Demographic
c. Situational factors
d. Operating variables
e. Purchasing approaches

9. 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

10. 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

11. 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

12. 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

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True/False

13. Markets are almost always homogeneous.

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

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

16. Local marketing reflects a growing trend called macromarketing.

17. 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

18. ________________ is the process of dividing a market into smaller groups of buyer with
distinct needs, characteristics, or behaviors who might require separate products or
marketing mixes.
a. Mass marketing
b. Market segmentation
c. Target marketing
d. Market positioning

19. __________________ is the process of evaluating each market segment’s attractiveness

and selecting one or more segments to enter.
a. Mass marketing
b. Market segmentation
c. Market targeting
d. Market positioning

20. During one of the steps in the marketing segmentation, targeting, and positioning process,
the marketer develops measures of segment attractiveness. This procedure
belongs in the category of:
a. market segmentation.
b. market targeting.
c. market massing.
d. market positioning.

21. When companies divide large, heterogeneous markets into smaller segments that can be
reached more efficiently with products and services that match their unique needs, they
are conducting a ___________________ process.
a. marketing aggregation
b. marketing positioning
c. marketing target
d. marketing segmentation

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22. Market segmentation can be carried out at several different levels. Which of the following
WOULD NOT BE among these levels?
a. micromarketing
b. segment marketing
c. competition marketing
d. niche marketing

23. Another word for complete segmentation is:

a. macromarketing.
b. micromarketing.
c. niche marketing.
d. mass marketing

24. Isolating broad segments that make up a market and adapting the marketing to match the
needs of one or more segments is called _________________.
a. niche marketing
b. mass marketing
c. segment marketing
d. micromarketing

25. When General Motors designs specific models for different income and age groups, it is
practicing which of the following marketing formats?
a. micromarketing
b. macromarketing
c. mass marketing
d. segment marketing

26. Segment marketing offers several benefits over mass marketing. All of the following
would be among those benefits EXCEPT:
a. the company can market more efficiently and target its programs toward only those
consumers that it can serve best.
b. the company can fine-tune its programs to meet the needs of carefully defined segments.
c. the company can reduce costs because of the ability to sell to customers one-on-one.
d. the company may face fewer competitors if fewer competitors are focusing on the
company’s chosen market segment.

27. A company is practicing ________________ if it focuses on subsegments with distinctive

traits that may seek a special combination of benefits.
a. micromarketing
b. niche marketing
c. mass marketing
d. segment marketing

28. As an example of _______________, a company could build sport utility vehicles and
direct marketing efforts towards the luxury SUV market (as does Lexus).
a. micromarketing
b. niche marketing
c. mass marketing
d. segment marketing

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29. _________________ is the practice of tailoring products and marketing programs to suit
the tastes of specific individuals and locations.
a. Niche marketing
b. Micromarketing
c. Segment marketing
d. Mass marketing

30. Micromarketing includes:

a. segment marketing and niche marketing.
b. mass marketing and demographic marketing.
c. local marketing and individual marketing.
d. individual marketing and self-marketing.

31. ______________ involves tailoring brands and promotions to the needs and wants of
specific small groups such as cities, neighborhoods, and even specific stores.
a. Niche marketing
b. Local marketing
c. Detail marketing
d. Individual marketing

32. ________________ is tailoring products and marketing programs to the needs and
preferences of individual customers.
a. Niche marketing
b. Local marketing
c. Self-marketing marketing
d. Individual marketing

33. Individual marketing is known by a variety of names. All of the following would
appropriately be called individual marketing EXCEPT:
a. mono-marketing.
b. one-to-one marketing.
c. customized marketing.
d. markets-of-one marketing.

34. All of the following are considered to be major variables for segmenting markets
EXCEPT:
a. geographic variables.
b. trait variables.
c. demographic variables.
d. psychographic variables.

35. If a marketer attempts segmentation of a market by dividing the market into different
units based on nations, regions, states, counties, cities, or even neighborhoods, then the
marketer is practicing ____________ segmentation.
a. demographic
b. geographic
c. political
d. cartographic

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36. All of the following would be ways to segment within the category of psychographic
segmentation EXCEPT:
a. social class.
b. occupation.
c. lifestyle.
d. personality.

37. All of the following would be ways to segment within the category of behavioral variable
segmentation EXCEPT:
a. occasions.
b. user status.
c. loyalty status.
d. lifestyle.

38. _________________ factors or variables are generally easier to measure than most of the
other types of variables or factors.
a. Geographic
b. Demographic
c. Psychographic
d. Behavioral

39. Proctor & Gamble joined a growing list of marketers who use __________ segmentation
when they developed Secret, a brand specially formulated for a woman’s chemistry.
a. geographic
b. income
c. benefit
d. gender

40. ___________________ is the process of dividing a market into different groups based on
social class, lifestyle, or personality characteristics.
a. Gender segmentation
b. Behavioral segmentation
c. Psychological segmentation
d. Psychographic segmentation

41. Many marketers believe that ________________ are the best starting point for building
market segments and programs.
a. behavioral variables
b. geographic variables
c. demographic variables
d. psychographic variables

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42. When companies market products on the basis of what the product’s attributes will do for
a given segment of consumers, they are using a powerful form of behavioral segmentation
known as:
a. occasion segmentation.
b. benefit segmentation.
c. user status segmentation.
d. usage rate segmentation.

43. All of the following are major variables that can be used to segment business markets
EXCEPT:
a. operating characteristics.
b. psychographics.
c. demographics.
d. situational factors.

44. ____________________ is forming segments of consumers who have similar needs and
buying behavior even though they are located in different countries.
a. External segmentation
b. International segmentation
c. Intermarket segmentation
d. Enriched segmentation

45. When Mercedes-Benz targets the world’s well-to-do, regardless of their country, they are
most likely following a segmentation strategy called:
a. external segmentation.
b. international segmentation.
c. enriched segmentation.
d. intermarket segmentation.

46. Clearly, there are many ways to segment markets. However, not all segmentations are
effective or successful. To be useful, market segments must have all the following
characteristics EXCEPT being:
a. measurable.
b. plausible.
c. accessible.
d. actionable.

47. It is a fact that there are 32.5 million left-handed people in the United States. However,
most marketers do not attempt to appeal to or design products for this group because
there is little in the way of census (‫ )احصاء رسمي للسكان‬data about this group. Therefore, this
group fails in one of the requirements for effective segmentation. Which of the following is
most likely to apply in this case?
a. actionable
b. substantial
c. differentiable
d. measurable

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48. Knowing the size, purchasing power, and profiles of a market segment are all part of
which of the following characteristics?
a. substantiality
b. measurability
c. actionability
d. accessibility

49. The ability to reach and serve a market segment defines the characteristic of:
a. measurability.
b. actionability.
c. accessibility.
d. substantiality.

50. Married and unmarried women may use the same perfume, and might respond in a
similar way to promotional sales of this fragrance. It might, therefore, be difficult to
consider that marital status designates separate segments in this case. Which of the
following requirements of effective segmentation would probably rule out segmentation
based on marital status in this case?
a. actionable
b. substantial
c. differentiable
d. measurable

51. In market targeting, a firm looks at all of the following factors EXCEPT:
a. segment size and growth.
b. segment structural attractiveness.
c. company objectives and resources.
d. segment public relations value.

52. All of the following factors can affect the attractiveness of a market segment EXCEPT:
a. the presence of many strong and aggressive competitors.
b. the likelihood of government monitoring.
c. actual or potential substitute products.
d. the power of buyers in the segment.

53. A(n) __________________ is a set of buyers sharing common needs or characteristics that
the company decides to serve.
a. undifferentiated market
b. market segment
c. target market
d. differentiated market

54. A market-coverage strategy in which a firm decides to ignore market segment differences
and go after the whole market with one offer is called:
a. undifferentiated marketing.
b. differentiated marketing.
c. concentrated marketing.
d. turbo marketing.

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55. Deciding to target several market segments and design separate offers for each is called:
a. undifferentiated marketing.
b. differentiated marketing.
c. concentrated marketing.
d. turbo marketing.

56. The practice of going after a large share of a smaller market or subsets of a few markets is
called:
a. undifferentiated marketing.
b. differentiated marketing.
c. concentrated marketing.
d. turbo marketing.

57. 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

58. 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.

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

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

TRUE/FALSE QUESTIONS

61. Companies today realize that they can appeal to all buyers in the marketplace by using
concentrated marketing.

62. 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.

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63. With respect to markets, the “shotgun” approach in marketing efforts seems to be better
than the “rifle” approach.

64. Market segmentation is the process of taking a market and dividing the buyers into
distinct groups for which marketing mixes can be constructed.

65. Today, most companies are rushing toward mass marketing because of the changing
nature of the marketplace.

66. Micromarketing is focusing on subsegments or niches with distinctive traits that may seek
a special combination of benefits.

67. 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.

68. Customized marketing is often called individual marketing.

69. The move toward individual marketing mirrors the trend in consumer concentration
strategy.

70. The most popular base for segmenting markets and customer groups is geographic
segmentation.

71. Demographic variables are easier to measure than most other types of variables with
respect to segmentation.

72. Income segmentation is used not only with the affluent, but also with the consumers with
lower spending power.

73. Psychographic segmentation occurs when a market is divided into different groups based
on social class, lifestyle, or personality characteristics.

74. One of the forms of behavioral segmentation would be lifestyle segmentation.

75. A common way to segment a business market would be to segment based on operating
characteristics and situational factors.

76. Segmenting international markets on the basis of geographic, economic, political, cultural,
and other factors is called international psychographics.

77. To be useful, a market segment must be substantial.

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78. To be useful, a market segment must be conspicuous.

79. A market segment is a set of buyers sharing common needs or characteristics that the
company decides to serve.

80. 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.

81. 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.

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

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Answer for ch 7

1) a 2) b
3) a 4) e
5) c 6) a
7) b 8) b
9) c 10) a
11) c 12) e
13) t 14) t
15) t 16) f
17) t 18) b
19) c 20) b
21) d 22) c
23) b 24) c
25) d 26) c
27) b 28) b
29) b 30) c
31) b 32) d
33) a 34) b
35) b 36) b
37) d 38) b
39) d 40) d
41) a 42) b
43) b 44) c
45) d 46) b
47) d 48) b
49) c 50) c
51) d 52) b
53) c 54) a
55) b 56) c
57) c 58) c
59) d 60) b
61) f 62) f
63) f 64) t
65) f 66) f
67) t 68) t
69) f 70) f
71) t 72) t
73) t 74) f
75) t 76) f
77) t 78) f
79) f 80) f
81) t 82) t

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