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138 Cards in this Set

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In class, we considered a variety of positioning errors that companies can make. Which of these involves failing to position the brand very well?




-Underpositioning


-Overpositioning


-Confused positioning


-Premium positioning


-rebel positioning

Underpositioning

In class, we looked at the strategy that the Gap, Inc. uses to satisfy consumers' needs, wants, and desires. Which of their brands target consumers who are interested in classic "American" style?




-The Gap


-Banana Republic


-Old Navy


-Piperlime


-Levis

The GAP

In class, we considered a variety of positioning errors that companies can make. Which of these involves giving buyers too narrow of a picture of the company and what it offers?




-Underpositioning


-Overpositioning


-Confused positioning


-Premium positioning


-rebel positioning

Overpositioning

According to class, which "traditional" target market strategy involves selecting one segment within the total market and using one marketing mix to target that defined group of consumers?




-Undifferentiated-Market strategy


-Product differentiation strategy


-Concentration strategy


-multiple-segment strategy


-a uni-dimensional strategy

A Concentration strategy

What type of marketing research method is MOST LIKELY being represented with observers behind a one-way mirror watching a discussion among people about topics of interest to marketers?




-individual interview


-questionnaire data


-social network


-information panel


-focus group

focus group

A good has tangible attributes that a consumer's __________ can perceive.




-cognitive intelligence


-knowledge of past experiences


-5 senses


-sixth sense


-emotional intelligence

5 senses

________ are revolutionizing not only the way people connect with each other but also the way today's products are advertised and sold.




-internet portals


-social media


-wikis


-virtual focus groups


-e-journals

Social Media

All the following in Figure 8-C represent __________ that serve as independent variables in marketing experiments.


- marketing dashboards
-environmental forces
-marketing drivers
-the market mix
-"what if" factors

All the following in Figure 8-C represent __________ that serve as independent variables in marketing experiments.




- marketing dashboards


-environmental forces


-marketing drivers


-the market mix


-"what if" factors

Marketing drivers

College dorm residents frequently want to keep and prepare their own food and snacks to save money or have a late night snack. However, their dorm rooms are often woefully short of space. MicroFridge understands this and markets a combination microwave, refrigerator, and freezer targeted to these students. MicroFridge is MOST LIKELY using which basis of segmentation?




-sociocultural segmentation


-psychographic segmentation


-geographic segmentation


-behavioral segmentation


-socioeconomic segmentation

behavioral segmentation

Figure 8-3 above shows the top ten prime-time broadcast TV shows during a recent May sweeps week. Advertisers like Sears use the Nielsen Television Ranking Index Report from Nielsen Media Research to identify the ratings of the top TV programs so ...

Figure 8-3 above shows the top ten prime-time broadcast TV shows during a recent May sweeps week. Advertisers like Sears use the Nielsen Television Ranking Index Report from Nielsen Media Research to identify the ratings of the top TV programs so they can make informed advertising media purchase decisions. For which TV program would you expect Sears to pay the most, presuming its demographics match those of its target audience?




-American Idol-Thursday


-The Big Bang Theory


-NCIS: Los Angeles


-NCIS


-Dancing with the stars

NCIS

In class we talked about primary data collection using mechanical observation. Which of the following is a good example of that approach?




-TIVO, which is a system that keeps a record of what television shows your watch and record


-Mystery Shoppers who record how the retailers are selling your products


-Ethnographic research, where interviews with the consumer are video taped and analyzed


-Asking consumers to bring in pictures of themselves using your product


-Recording of a focus group session

TIVO, which is a system that keeps a record of what television shows your watch and record




(Mechanical observations are those done of how people ACTUALLY behave.)

Mechanical observations are those done of how people ACTUALLY behave.

Based on the lecture, a marketer might use the information gained from an analysis of Claritas/PRIZM data:




-to decide on where to send direct-mail promotions


-to select locations for retails store outlets


-to determine the best mix of products to offer in a store


-to determine the best mix of brands to offer in a store


-The marketer could use PRIZM analysis for ALL of the above



The marketer could use PRIZM analysis for ALL of the above

In class we thought about the factors that marketers need to have information about in order to do their jobs effectively. Which of the following is NOT one of those factors?




-competition


-economic factors


-social factors


-technological factors


-a marketer would need to have information on ALL of those factors

a marketer would need to have information on ALL of those factors

In class we discussed the jeans market in the context of segmentation strategies. Which brand most likely targets those who want "the best' in high fashion and who are not concerned about the price tag?




-The Gap


-Banana Republic


-Armani Jeans


-Levi's


-Old Navy

Armani Jeans

The Belsen interview is a means of pretesting media surveys. It gathers facts and figures by asking people about their attitudes, beliefs, and awareness of various media. With this technique, a respondent is interviewed twice—first by an interviewer using the proposed survey and then by a different interviewer, who asks questions about the survey itself. The Belsen interview uses __________ data.




-questionnaire


-secondary


-intercept


-observational


-synergistic

-questionnaire

The Belsen interview gathers facts and figures obtained by asking people about their attitudes, beliefs, and awareness—a form of questionnaire data.

All of the following are geographic segmentation variables EXCEPT:




-density


-city size


-region


-VALS


-statistical area

VALS

Geographic segmentation is based on based on where prospective customers live or work. Geographic segmentation variables include region, city size, statistical area, and density, among others. VALS is a psychographic segmentation variable. See Figure 9-4 in the textbook.

Outdoor sign makers are trying hard to stay relevant as the era of targeted mobile advertising approaches, and their latest move is to add scent. In Morresville, NC, a billboard has been erected that, for parts of the day, emits the smell of grilling steak. The scent component of the sign operates during prime commute times. It was designed by ScentAir, whose spokesperson described the aroma as, "a blend of black pepper and kind of a charcoal grilling that smells like grilled meat with a nice pepper run on it." This is an example of




-extrapolation


-supposition


-implication


-neuromarketing


-conjecture

neuromarketing

Neuromarketing uses high-tech brain scanning instruments to record the brain's responses to various marketing stimuli (package designs, brand logos, fragrances, TV ads, and so on) via the five senses (sight, sound, smell, touch, and taste). This is the method used by ScentAir.


In
 the Apple market-product grid shown above for its personal computer 
line, the "iMac" is popular among all the segments Apple can target. 
This allows Apple to enjoy __________.



-segmentation synergies
-marketing synergies
-product ...

In the Apple market-product grid shown above for its personal computer line, the "iMac" is popular among all the segments Apple can target. This allows Apple to enjoy __________.




-segmentation synergies


-marketing synergies


-product synergies


-the 80/20 rule


-frequency marketing

product synergies

If Apple wanted to simplify its product line, reduce R&D and production expenses, and manufacture only one computer it might do well to focus on the iMac because each segment purchases it.

Segmentation based on what product features are important to different customers is known as




-demographic segmentation


-behavioral segmentation


-psychographic segmentation


-geographic segmentation


-socioeconomic segmentation

behavioral segmentation

Understanding what features are important to different customers (behavioral segmentation) is a useful way to segment markets because it can lead directly to specific marketing actions, such as a new product, an ad campaign, or a distribution system. See Figure 9-4 in the textbook.

Lands' End will custom fit a Marinac jacket and make it with additional features such as thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com. This is an example of




-family branding


-mass customization


-"Tiffany/Walmart" marketing


-market melding


-specialty customization

mass customization

Today's flexible manufacturing and marketing processes have made mass customization possible, tailoring products or services to the tastes of individuals on a high-volume scale.

In class we talked about probability and nonprobability sampling. What is the most important difference between the two?




-the amount of time it takes to do the sampling


-the cost difference


-the ability to make statistical inferences


-the ease of getting the sample


-the ability to analyze the data

The ability to make statistical inferences

In class, we thought about vacationing and found that many in the class wanted a restful vacation, while others want an activity filled vacation, and a few people wanted a vacation where they could take their pet. The students in our class appear to group together and to have different wants and preferences when it comes to vacations. This is a good example of:




-the marketing mix


-psychographic segmentation


-market segments


-demographic segmentation


-student segmentation

-market segments

Market Segments are groups of customers with different wants, buying preferences, or product-use behavior.

Product repositioning refers to




- the place a product offering occupies in consumers' minds on important attributes.


-using a market-product grid to place products in their appropriate places on that grid to identify potential untapped markets.


-changing the place an offering occupies in consumers' minds relative to competitive products.


-the practice of selling off a firm's least successful product line and redirecting that revenue into a totally new product.


-the competitive advantage of one product over another.

changing the place an offering occupies in consumers' minds relative to competitive products.

The type of question you are answering right now is an example of a(n) __________ question.




-Likert scale


-dichotomous


-open-ended


-fixed alternative


-semantic differential

fixed alternative

This question is an example of a fixed-alternative or closed-end question, which requires respondents to select one or more response options from a set of predetermined choices, such as a multiple-choice question.

Alamo, a car rental firm, targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year. Alamo likely segments its market by




-usage rate


-benefits offered


-demographics


-geography


-lifestyle



usage rate

In this case, rate of use is defined as "over 40 weeks per year." Therefore, Alamo uses behavioral segmentation as the basis and usage rate as the segmentation variable.

Facts and figures obtained by watching, either mechanically or in person, how people actually behave are referred to as __________ data.




-virtual


-hypothetical


-primary source


-observational


-statistical

observational

The O3 technology refers to an innovative tennis racquet Prince Sports developed that simultaneously delivers faster racquet speed and a bigger "sweet spot" in the middle of the frame. Prince Sports has implemented a __________ strategy with its O3 innovative tennis racquet technology.




-competitive segmentation


-head-to-head


-product differentiation


-usage segmentation


-market segmentation

product differentiation

Product differentiation involves a firm using different marketing mix activities, such as product features, to help consumers perceive the product as being different and better than competing products. By developing the O3 technology for the "Performance" segment, Prince Sports is focusing on a product feature that provides great feel, control, and spin, which both professional and amateur tennis players are willing to pay for.

When compared to a multiple products, multiple market segments strategy, a one product, multiple market segment strategy




- is a much more effective means of meeting consumers' individual needs.


-creates greater savings in production costs.


-is a more effective way of meeting organizational objectives.


-has significantly higher distribution costs.


-is more profitable since a firm can charge the new segments higher prices without changing the product.

creates greater savings in production costs.

When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids the extra cost of developing and producing additional versions of the product, which often entails higher expenses.

According to lecture, which "traditional" target market strategy offers the advantage of lower costs (through long production runs and minimal inventory costs)?




-market-aggregation


-product differentiation


-concentration


-multiple-segmentation


-niche

market-aggregation

Market-aggregation Strategy --Potential advantages include Lower costs (long production runs, minimal inventory costs) and Easy to manage.

In class, we looked at the website for Citibank credit cards. On this site, a customer can fill out a form with a variety of choice to determine the best credit card. What type of segmentation base does this use?




-demographic


-geographic


-psychographic


-occupation


-benefits sought

benefits sought

We viewed this as an example of the "ideal method" of segmentation, based on the benefits the consumer wants to obtain.

Dan Muller talked about the use of Marketing Research at Timken. He mentioned that they have marketing managers who need to research and understand their markets to find innovative products to offer. If you were one of these managers and decided to talk to your customers about problems they were having with competitive products, what kind of research would you be using?




-Secondary Data from an External Source


-Secondary Data from an Internal Source


-Primary Data by Observing Behavior


-Primary Data by Questioning Consumers


-Primary Data using Experiments

Primary Data by Questioning Consumers

Going out and talking to your consumers is pretty much the definition of Primary data collection by questioning consumers.

A(n) __________ scale is a five-point scale in which the opposite ends have one- or two-word adjectives that have opposite meanings.




-dichotomous


-open-ended


-likert


-attitudinal


-semantic differential



semantic differential

See Figure 8-4, Question 5 in the textbook.

Criteria for forming segments involve both similarities and differences. The similarities must be __________ a segment, and the differences must be __________ segments.




-between/among


-throughout/absent in


-within/among


-absent in/throughout


-among/across

-within/among

Two criteria used in forming segments answer this question: similarity of needs of potential buyers within a segment and difference of needs of buyers among segments.

Evaluating the results of a marketing decision involves




-asking prospective customers if they are likely to buy the product during a specified future time period.


-requesting the firm's salespeople to estimate sales during a coming period.


-collecting data from marketing experts about changes in the environment.


-collecting projections from all regional sales managers and making projections based on a region to region basis.


-monitoring the marketplace to determine if action is necessary in the future.

-monitoring the marketplace to determine if action is necessary in the future.

Hallmark placed its scrapbook supplies, photo albums, and related supplies into one product group because




-it was easier to forecast future sales since there were fewer market-product combinations.


-customers could buy in quantity and take advantage of quantity discounts.


-their suppliers provided free displays and shelving to highlight Hallmark's products.


-it helped buyers relate to the products and make decisions in a more meaningful way.


-it allowed customers to compare price and quality with competitors who displayed their products in a similar manner.

it helped buyers relate to the products and make decisions in a more meaningful way.

Finding a means of grouping the products a firm sells into meaningful categories is as important as forming customers into segments. If the firm has only one product or service, this isn't a problem. But when it has dozens or hundreds, these must be grouped in a way that buyers can relate to them.

Based on __________, the Campbell's Soup Company changed the labels of most of its soup cans.




-external secondary data—an article in the Journal of Consumer Behavior on ethnographic research


-social media Facebook comments and Twitter "tweets" analysis


-internal secondary data—sales reports on soup sales by flavor and package type (can or microwave bowl)


-neuromarketing studies


-online/e-mail questionnaires

neuromarketing studies

The Campbell's Soup Company changed the labels of most of its soup cans based on the results of neuromarketing studies.

Procter & Gamble (P&G) decided to skip a generation of consumers when it began to market Old Spice deodorant. The target market consists of men aged 18 to 34 years old (Generation Y) who don't remember the Old Spice brand sold to their grandfathers (pre baby boomer) many years ago. P&G is using which type of segmentation variable?




-behavioral


-demographic


-lifestyle


-geographic


-psychographic

demographic

Birth era (based on age) is a demographic segmentation variable. See Figure 9-4 in the textbook.

In class, we talked about the way in which Hewlett Packard successfully added PC users as a new segment to their printer market in the 1990's. To do this, they needed a different way to reach the segment. How did they reach the segment of PC users?




-They developed excellent telemarketing sales.


-They opened the first of their HP retail outlets.


-The used their salesforce to sell discount retailers on the idea of carrying HP printers.


-They used the internet to develop web-based marketing for their HP printers.


-They reduced the price of the HP brand of printers to make them accessible to PC users.

The used their salesforce to sell discount retailers on the idea of carrying HP printers.

HP used its salesforce to sell discount retailers on the idea of carrying HP printers.Retailers agreed to carry the printers because they were a good value, AND because HP’s publicity, sales promotions, and ads attracted customers who were ready to buy (an integrated marketing program).

In class, we heard from Dan Muller as he discussed segmentation at Timken. Which of the following types of segmentation did he indicate Timken was using?




-by geographic area


-by company size


-by order type


-by industry


-by raw material type

by industry

Dan indicated they were segmenting primarily by industry.

In class, we looked at two ads for Crest spinning toothbrush. One focused on the benefits of visiting a dentist twice a year and of having a "dentist-clean feeling" twice a day by using their spinning toothbrush. The other ad, for a very similar product, used a popular cartoon character, Dora, to advertise the Kid's SpinBrush. This is a good example of targeting based on:




-geographics


-demographics


-psychographics


-behavior


-actually, it was presented as a poor example of targeting

demographics

In the example, Crest is using demographic targeting (based on Age) to market two versions of the product.

In class, we considered buying a ring at Tiffany's. When asked, students indicated that a Tiffany ring probably cost tens of thousands of dollars or more. When we checked, we found that you can buy several Tiffany rings for less than $200. While Tiffany is certainly successful, this example suggests they may have:




-underpositioned their brand (why offer such cheap rings?)


-Overpositioned their brand (people may not think of Tiffany for lower priced rings)


-Confused positioning (what ARE they? High priced or inexpensive when it comes to rings).


-A Rebel positioning (going against the image of a high priced retailer)


-Not cone ANY positioning

Overpositioned their brand (people may not think of Tiffany for lower priced rings)

In class, we considered the Tiffany example as representing "overpositioning."

The process of segmenting a market and selecting specific segments as targets is the link between the various buyers' or market needs and




-industry standards


-government regulations


-top-level management


-controllable environmental factors


-the organization's marketing program

the organization's marketing program.

Figure 9-1 in the textbook illustrates how the process of segmenting and targeting markets links buyers' or market needs to an organization's marketing program.


Figure
 9-9 above shows the market-product grid for a Wendy's restaurant next 
to a large urban university campus. Assume a large market (shown by a 
"3") is three times the size of a small market (shown by a "1"). 
Similarly, assume a medi...

Figure 9-9 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus. Assume a large market (shown by a "3") is three times the size of a small market (shown by a "1"). Similarly, assume a medium market (shown by a "2") is twice the size of a small market. The meal occasion (product grouping) that comprises the LARGEST product grouping is




-breakfast


-lunch


-between-meal snack


-dinner


-after dinner snack

lunch

Totaling the meal columns vertically shows the "lunch" meal occasion to have the most "units" of sales (14) of the five product grouping columns. See Figure 9-9 in the textbook.

Marketing drivers are used with which of the four Ps?




-product, price, place only


-product, promotion, people only


-product features only


-product features and price only


-product, promotion, price, and place inclusively

-product, promotion, price, and place inclusively

In marketing experiments, the independent variables of interest—sometimes called marketing drivers—are often one or more of the marketing mix elements, such as a product's features, price, distribution, or promotion (such as advertising messages or coupons).

Nielsen Media Research collects national TV ratings by using a "people meter." This is a box that is attached to TV sets, VCRs, DVRs, cable boxes, and satellite dishes in about 20,000 households across the country. A viewer uses the remote to signal the people meter that he or she is watching a TV program. The box then transmits the viewing information to the Nielsen Company. The information Nielsen is collecting is referred to as __________.




-internal secondary data


-interactive industry data


-sensitivity data


-external secondary data


-observational data

observational data

Marketing researchers like Nielsen Media Research collect observational data by watching, either mechanically or in person, how people actually behave—in this case, their TV viewing behavior.

The Minnesota Twins, a professional baseball team, wanted to develop creative ways to boost sagging attendance at its ball games. The Twins hired a moderator who, after every home game during the month of July, led informal discussions with groups of 6 to 10 fans to find out what they did and did not like about the baseball team and their experience at the stadium. The discussions were videotaped so that researchers could review the data at a later date and in more detail. What are such informal research discussions called?




-experiments


-secondary data


-focus groups


-panels


-depth interviews

focus groups

In order to generate more specific research questions or to clarify a marketing problem, many marketers conduct focus groups. Focus groups are defined as informal sessions with 6 to 10 current, past, or potential customers in which a discussion leader, or moderator, asks their opinions about the firm's and its competitors' products or services, how they use these, and what special needs they have that these offerings don't address. Often video recorded and conducted in special interviewing rooms with a one-way mirror, these groups enable marketing researchers and managers to hear and watch consumer reactions.

In class, we looked at the case of Best Buy, where 20% of their customers generate a significant amount of profits by purchasing high margin items without bothering to use rebates. According to the lecture, what type of segmentation base is this?




-demographic segmentation


-psychographic segmentation


-behavioral segmentation


-usage rate segmentation


-market aggregation

usage rate segmentation

In class, we noted that the Gap, Inc. operates several brands in order to make it easy for people to express their personal style. Their brands include the Gap, Banana Republic, Old Navy, and Piperlime. What approach to segmentation is the Gap, Inc. using?




-concentrated marketing


-single-segment marketing


-multiple-segment marketing


-mass marketing


-fashion pricing line strategy

multiple-segment marketing

The Gap is using a Multiple-segment strategy. They have developed a different marketing mix for each of their brands and they target a different group of consumers with each brand.

All of the following would be a logical way to group the products Wendy's sells at its restaurants EXCEPT:




-dinner


-burgers


-breakfast


-between-meal snacks


-lunch

burgers

Finding a means of grouping the products a firm sells into meaningful categories is as important as forming customers into segments. If the firm has only one product or service, this isn't a problem. But when it has dozens or hundreds, these must be grouped in a way that buyers can relate to them. Wendy's customers really buy an eating experience, a meal occasion that satisfies a need at a particular time of day. So, the product grouping that makes the most marketing sense is by meal or time of day, which include breakfast, lunch, between-meal snacks, dinner, and after-dinner snacks. Burgers aren't necessarily the way consumers buy a meal at fast-food restaurants.

By dividing its tennis racquet market into three categories, which it labels Performance, Recreational, and Junior tennis players, Prince Sports is using a marketing strategy called




-product differentiation


-product innovation


-market delineation


-market segmentation


-product groupings

market segmentation

Market segmentation involves aggregating prospective buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action. Market segments are the relatively homogeneous groups of prospective buyers that result from the market segmentation process—which helps Prince Sports develop products with the features and at the prices that serve the different needs and skills of the three categories or segments tennis players.

A collection of databases, or __________, is where a firm's ocean of marketing data is stored.




-data vault


-data depot


-data warehouse


-data storehouse


-data stockroom

data warehouse

a researcher watches a young child play with his toys. This is an example of




-the use neuromarketing data to alter or improve a consumer's behavior.


-the use of secondary data to alter or improve a consumer's behavior.


-a researcher collecting observational data to use in future marketing actions.


-the use of personal interviews to collect subjective but essential information necessary to make informed marketing decisions.


-a researcher collecting psychographic information to use for potential changes in target markets.

a researcher collecting observational data to use in future marketing actions.

Observational data are facts and figures obtained by watching, either mechanically or in person, how people actually behave. In the photo, a Fisher-Price researcher watches a young child play to determine if and how various toys should be changed or improved.

All of the following are idea evaluation methods EXCEPT:




-a mail survey


-an online survey


-a focus group


-a telephone survey


-an e-mail survey

a focus group

Idea evaluation methods include personal, mail, telephone, fax, e-mail, online, and Internet surveys. Focus groups are an idea generation method.

The Apple II, Macintosh, iPod, iPhone, MacBook Air, iPad, and MacPro are all examples of Apple's commitment to __________.




-sustainable procurement


-social responsibility


-new product development


-using renewable resources


-respecting its workforce

new product development

The life of an organization depends on how it conceives, produces, and markets new products (goods, services, and ideas). The late Steve Jobs's innovations revolutionized six industries: personal computers, animated movies, music, phones, tablet computing, and digital publishing.

In Marketing in the News, we heard that it is easy to "waste money" on display ads. Which of the following types of consumers should we NOT target with display ads, because it will be a waste of our money?




-Those consumers who have not visited our company’s Web site


-Those consumers who have visited our Web site, but have not created an account


-Those visitors who had created an account


-Those who had made a purchase on the site


-Those consumers who have not ordered anything in 6 months



Those consumers who have visited our Web site, but have not created an account

The ads were wasted on the group who had visited the advertiser's site and hadn't bothered to create an account.

In class we talked about probability and nonprobability sampling. What is the most important difference between the two?




-the cost difference


-the amount of time it takes to do the sampling


-the ability to make statistical inferences


-the ease of getting the sample


-the ability to analyze the data

the ability to make statistical inferences

In class, we heard from Dan Muller as he discussed segmentation at Timken. What did he indicate was a "key challenge" for Timken?




-Figuring out what bases to use for segmentation


-Determining what companies are in each segment.


-Doing the micro segmentation necessary to target specific customers groups.


-To discover each segment's needs and then to create a marketing mix for each.


-He indicated that these are all "key challenges" for Timken in doing segmentation

to discover each segment's needs and then to create a marketing mix for each

It is a challenge to discover the segment’s needs and to create a mix for each

Which of the following is NOT a disadvantage of online surveys?




- e-mail surveys may be viewed as "junk"


- the cost


-some potential respondents have a "pop-up blocker" that prohibits a browser from opening a separate window that contains the survey


-unless a researcher uses Survey Monkey, respondents can complete the survey multiple times, creating a significant bias in the results


-some potential respondents may employ spam blockers

the cost

The advantages of online surveys are that the cost is relatively minimal and the turnaround time from data collection to report presentation is much quicker than the traditional methods discussed earlier. However, online surveys have serious drawbacks: some consumers may view e-mail surveys as "junk" or "spam" and may either choose to not receive them (if they have a "spam blocker") or purposely or inadvertently delete them, unopened. For Internet surveys, some consumers have a "pop-up blocker" that prohibits a browser from opening a separate window that contains the survey; thus, they may not be able to participate in the research. For both e-mail and Internet surveys, consumers can complete the survey multiple times, creating a significant bias in the results. This is especially true for online panels.

A collection of databases that store, organize, and manage data sources is called a __________.




-data vault


-data depot


-data storehouse


-data warehouse


-data stockroom

data warehouse

Airlines have developed frequent-flier programs to encourage passengers to use the same airline repeatedly. This marketing strategy is based on




-geographic segmentation


-behavioral segmentation


-psychographic segmentation


-demographic segmentation


-buying condition segmentation



behavioral segmentation

Airlines have developed frequent-flier programs to encourage passengers to use the same airline repeatedly to create loyal customers. This technique, sometimes called frequency marketing, is a strategy that focuses on usage rate, a type of behavioral segmentation

Which of the following is a criterion used for selecting a target segment?




-potential for increased profit


-similarity of needs of potential buyers within a segment


-difference of needs of buyers among segments


-potential of a marketing action to reach a segment


-compatibility with the organization's objectives and resources

compatibility with the organization's objectives and resources




(The five criteria used for selecting a target segment include: (1) market size; (2) expected growth; (3) competitive position; (4) cost of reaching the segment; and (5) compatibility with the organization's objectives and resources.)

The five criteria used for selecting a target segment include: (1) market size; (2) expected growth; (3) competitive position; (4) cost of reaching the segment; and (5) compatibility with the organization's objectives and resources.

All of the following are criterion used for selecting target market segments EXCEPT:




-compatibility with the organization's objectives and resources.


-market size


- simplicity and cost of assigning potential buyers to segments.


-competitive position.


-cost of reaching the segment.

simplicity and cost of assigning potential buyers to segments.

The five criteria used for selecting a target segment include: (1) market size; (2) expected growth; (3) competitive position; (4) cost of reaching the segment; and (5) compatibility with the organization's objectives and resources. Simplicity and cost of assigning potential buyers is a criterion used in forming market segments.

From what we heard in lecture, which of the following is not a basic step in product positioning.




- Select the Positioning Concept, based on what is important to the target consumers.


-Design the features that convey the product positioning.


-Coordinate all elements of the marketing mix to convey the product positioning.


-Select the correct medium to communicate the product positioning.


-Actually, these are ALL key steps in the positioning process.

Select the correct medium to communicate the product positioning.




(Three Steps in Product Positioning:Select the Positioning Concept, based on what is important to the target consumers.Design the feature(s) that CONVEY that positionCoordinate ALL elements of the Marketing Mix to Convey that Position)

Three Steps in Product Positioning:Select the Positioning Concept, based on what is important to the target consumers.Design the feature(s) that CONVEY that positionCoordinate ALL elements of the Marketing Mix to Convey that Position

In class, we looked at various "traditional" target market strategies. Which strategy uses a single marketing strategy in an attempt to appeal to "everyone?"




-market-aggregation


-product differentiation


-concentration


-multiple-segmentation


-niche

market-aggregation

Market-aggregation Strategy uses a Single Marketing Strategy for everyone

In Marketing in the News, we heard that Apple has reversed its decision to withhold royalty payments for songs played on Apple Music during its three-month free trail. The motivation for this change was primarily:




-complaints from consumers that this would not be fair to artists.


- a social media Tumbler post by a top artist.


-input from their legal department about problems in failure to pay.


-concern that consumers don't care about free access to music.


-

a social media Tumbler post by a top artist.

Apple’s about-face on its decision to withhold royalty payments for songs played on Apple Music during its three-month free trail — mostly thanks to Taylor Swift’s reverent but disapproving Tumbler post Sunday morning

Market segmentation refers to




-the philosophy that to do a truly excellent job of marketing, a company should concentrate on only one customer segment at a time


-sorting prospective buyers into groups that are willing to pay more than the cost of production for a good or service


-disaggregating prospective buyers from groups into segments of one (individuals) and then creating specific products that will satisfy this person's unique needs.


-aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action


-the belief that it is possible to satisfy every customer's needs if you can identify the correct segment within which they belong.

aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action

After establishing the market segments and product groupings on a market-product grid, the next step is to




-fill in the appropriate cells with precise statistical data from primary and/or secondary sources.


-estimate, with intelligent "guesstimates" as necessary, the market size for each cell using a simple scale from zero to three (3 is the largest market).


-total the vertical columns to identify the greatest marketing synergies and efficiencies.


-total the horizontal rows to identify greatest operations/production synergies and efficiencies.


-identify a marketing action for every product-market combination in the grid.

estimate, with intelligent "guesstimates" as necessary, the market size for each cell using a simple scale from zero to three (3 is the largest market).

Developing a market-product grid means identifying and labeling the markets (or horizontal rows) and product groupings (vertical columns). The next step is to estimate the market size of each cell. The market size estimates in Figure 9-9 vary from a large market ("3") to no market at all ("0") for each cell in the market-product grid.

All of the following are psychographic segmentation variables EXCEPT:




-lifestyle


-needs


-birth era


-VALS


-personality

birth era

Psychographic segmentation is based on some subjective mental or emotional attributes (personality), aspirations (lifestyle), or needs of prospective customers. Birth era is a demographic segmentation variable. See Figure 9-4 in the textbook.


Figure
 9-10 above shows the market-product grid for a Wendy's restaurant next 
to a large urban university campus after you've chosen the market 
segments to target and the product groupings to offer based on the 
market size estimates. Th...

Figure 9-10 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus after you've chosen the market segments to target and the product groupings to offer based on the market size estimates. The next step is to develop a simple marketing action to reach a target market. Sending out coupons for "10 percent off all purchases between 2:00 P.M. and 4:30 P.M." during the winter quarter would target potential




-dormitory customers


-night commuter customers


-between meal snack customers


-after dinner snack customers


-apartment customers

between meal snack customers

The target here is potential between-meal snack customers, who might be reached by this coupon that is intended to increase sales during the 2:00 P.M. and 4:30 P.M. time period. This is a product grouping or "meal" in the market-product grid, a vertical column in Figure 9-10.

Figure 9-9 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus. Operations and production synergies and efficiencies run __________.


-horizontally across the rows
-vertically down the columns
-bet...

Figure 9-9 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus. Operations and production synergies and efficiencies run __________.




-horizontally across the rows


-vertically down the columns


-between full meals and snacks


-diagonally from top-left to bottom-right of a market-product grid


-both horizontally and vertically depending upon the marketing action

-vertically down the columns

Operations/production synergies and efficiencies run vertically because there is only one product grouping to be produced and marketed. See Figure 9-9 in the textbook.

Selling a product to a different market segment usually requires a different marketing action that in turn means greater costs. If increased revenues don't offset extra costs of this action, a marketer should __________.




-increase the advertising budget


-prune the product offerings


-family brand their products


-combine segments


-group products into categories

combine segments

If the needs of the various segments aren't very different, combine them into fewer segments. A different segment usually requires a different marketing action that, in turn, means greater costs. If increased sales don't offset extra costs, combine segments to reduce the number and total costs of marketing actions.

In Marketing in the News, we heard that General Mills announced that it is committed to removing artificial flavors and colors from all of its cereals with the next two years. A key concern for the company is:




-how to get a return on this investment.


- assuring that all existing product colors can be duplicated.


-whether they can get good supplies of the fruit and vegetable juices replacing the artificial ingredients.


-finding replacements that can achieve the same tastes.


-whether consumers will care about these product changes.



finding replacements that can achieve the same tastes.

General Mills has been working on other brands' formulations for about two years so as to achieve the same tastes without the artificial ingredients.

According to lecture, which "traditional" target market strategy offers the advantage of lower costs (through long production runs and minimal inventory costs)?




-market-aggregation


-product differentiation


-concentration


-multiple-segmentation


-niche

market-aggregation

In Marketing in the News, we heard about the new campaign from Panera Bread. The tag line is “Food As It Should Be.” The television ad creative focuses on:




- farmers growing healthy foods.


-the government ratings for good food.


-people having fun, while enjoying Panera's.


-the competitors who still use artificial colors, flavors, sweeteners and preservatives.


-the "good value" for their food.

people having fun, while enjoying Panera's.

The television ad creative — like a growing number of campaigns across categories uses vignettes of families, friends and couples having a great time in seemingly spontaneous scenarios … although they are all, of course, enjoying some sort of food or beverage from Panera.

Manufacturing a product only when there is an order from a customer is referred to as




- order customization.


-a one product one market segment strategy.


-synergistic marketing.


-build-to-order.


-specialty customization.

build-to-order.

Organizational synergy is the increased customer value achieved through




-performing organizational functions more efficiently.


-more discounts or larger rebates at the point of sale.


-involvement of the ultimate consumer in product design.


-an increase in the knowledge of competitors.


-shared ownership of the organization through publicly traded stock.

performing organizational functions more efficiently.

Brand guru Martin Lindstrom believes that traditional marketing research is wasted because




-consumers usually lie to researchers out of embarrassment.


-often competitors provide information that will purposefully throw off results.


-marketers almost always fail to follow proper statistics procedures.


-different researchers report different conclusions when analyzing the same data.


-much of a consumer's feelings toward products and brands resides in the subconscious part of the brain.

much of a consumer's feelings toward products and brands resides in the subconscious part of the brain.

Lindstrom used neuroscience—the study of the brain—and merged it with marketing. He believes that many consumers' thoughts, feelings, or preferences toward products, brands, and advertisements reside deep within the subconscious part of the brain.

Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as




-consumer differentiation


-psychographics


-market segmentation


-market delineation


-aggregation marketing

market segmentation

Market segments refer to




-the relatively heterogeneous groups of prospective buyers that result from the market segmentation process.


-all buyers of a product or service who have previously purchased a particular firm's products or services and who intend to repeat that purchase sometime in the future.


-the smallest number of buyers that have similar needs but do not react similarly in a buying situation.


-the relatively homogeneous groups of prospective buyers that result from the market segmentation process.


-all potential buyers of a product or service who intend to purchase a firm's products or services but who have not yet done so.

the relatively homogeneous groups of prospective buyers that result from the market segmentation process.

In Marketing in the News, we heard about a time when the pen brand Parker entered the market in Mexico. Their tag line was "It won’t leak in your pocket and embarrass you." From what we heard, what problem did they run into?




-They mistranslated the tag line, creating the wrong message.


-They did not provide adequate support on their website for Spanish speakers.


-They failed to consider the ways in which the weather would affect the ink.


-They used an ethnocentric approach and did not translate their communications into Spanish


-They could not get their product shipped into Mexico.



They mistranslated the tag line, creating the wrong message.

When Parker launched in Mexico it ran an advertisement that was supposed to carry the line ‘It won’t leak in your pocket and embarrass you’. However, the brand’s translation wrongly used the Spanish word ‘embarazar’, which means ‘impregnate’ rather than ‘embarrass’.

In class we heard about Sensodyne toothpaste, which uses a name, flavor, and ads that helped to:


-reduce manufacturing costs and so prices for the consumer.


-align the product with others in the company's product mix.


-increase the width of the company's product mix.


-increase the depth of the company's product mix.


-position the product in the consumers' minds.

position the product in the consumers' minds.

These all helped with the product's positioning...to indicate it is not an ordinary toothpaste.

In class, we noted several guidelines for selecting a target market. Which of the following was NOT one of those guidelines?


-Be sure that the target market is compatible with the company's goals.


-Be sure that the market opportunity matches with the company's resources


-Be sure that the profit potential justifies the investment


-Be sure that there are few competitors for this target market (or that the competition is relatively weak).


-Actually, ALL of the above are guidelines we discussed.

Actually, ALL of the above are guidelines we discussed.

When selecting a target market, we need to be sure the market is compatible with the company's goals, that the opportunity matches the resources we have, that the profit potential justifies the investment we will need to make, and that there are no competitors (or that the competition is weak in this target market).

A method of presenting and analyzing data involving two or more variables to discover relationships in the data is referred to as




-data mining


-statistical inference


-cross tabulation


-sampling


-an experiment

cross tabulation

When Procter & Gamble introduced Crest toothpaste, the first fluoride toothpaste, it was intended for use by children and was therefore given a child-appealing bubblegum flavor. Sometime later, the same basic formula was given a fresh, minty flavor to appeal to adults. What marketing strategy did P&G use in this example?




-product differentiation


-product segmentation


-market expansion


-usage segmentation


-psychographic segmentation

product differentiation

Product differentiation involves a firm's using different marketing mix actions, such as product features and advertising, to help consumers perceive the product as being different and better than competing products. In the case of Crest, the change of flavor (a product feature) helped consumers to perceive the product as different as and better than competing products.

Market segmentation helps business firms to respond more effectively to the wants of groups of potential buyers in order to




-maintain market share


-increase sales and profits


-assume social responsibility


-use the firm's resources most efficiently


-provide the best quality products on the market

increase sales and profits

A business firm goes to the trouble and expense of segmenting its markets when it expects that this will increase its sales, profit, and return on investment. When expenses are greater than the potentially increased sales from segmentation, a firm should not attempt to segment its market.

Usage rate refers to




-the percentage of total possible users divided by the total number of consumers who actually use a product or service.


-the average number of times a customer uses a product or service.


-quantity consumed or patronage (store visits) during a specific period.


-the maximum number of times a customer uses a product or service.


-the profits a firm earns from customers who consume a particular product or service.

quantity consumed or patronage (store visits) during a specific period.

.


Consider
 Figure 8-6A above. Suppose you are an owner of a local Wendy's 
restaurant near a large urban college or university. You hired a 
marketing research firm to conduct a survey among a sample of 
respondents in your area to find out ...

Consider Figure 8-6A above. Suppose you are an owner of a local Wendy's restaurant near a large urban college or university. You hired a marketing research firm to conduct a survey among a sample of respondents in your area to find out their patronage of fast-food restaurants. Four weeks after the firm conducted the survey, it presented the following results to you. Which age group seems to patronize fast-food restaurants the MOST?




-45 and older


-once a week or more


-25 to 44


-once a month or less


-under 25

under 25

Figure 8-6A shows that there are three response options for "age of head of household (years)," which are depicted horizontally in the rows of the cross tabulation. The largest discrete or absolute frequency is the cell represented by the "under 25" head of householder who patronizes a fast-food restaurant "once a week or more." This cell in the cross tabulation has the largest number of respondents at 144 respondents out of the 586 total who responded to the survey.

Dan Muller talked about the use of Marketing Research at Timken. He mentioned that they have marketing managers who need to research and understand their markets to find innovative products to offer. If you were one of these managers and decided to talk to your customers about problems they were having with competitive products, what kind of research would you be using?




-Secondary Data from an Internal Source


-Secondary Data from an External Source


-Primary Data by Observing Behavior


-Primary Data by Questioning Consumers


-Primary Data using Experiments

Primary Data by Questioning Consumers




(Going out and talking to your consumers is pretty much the definition of Primary data collection by questioning consumers.)

Going out and talking to your consumers is pretty much the definition of Primary data collection by questioning consumers.

Dan Muller talked with us about how Timken uses Marketing Research. In one situation they encountered, the wanted to understand the emerging wind energy market. They wanted to understand the global trends in this new market to determine where Timken might be positioned. Given this situation, how did they approach the research?




-Timken assigned the research to their Marketing Managers, who have responsibility for knowing their markets.


-Timken reviewed their internal records, including customers letters and research reports to get a handle on this trend.


-Timken hired an outside marketing research firm, as this is a very large project, which an outside firm can do faster and better.


-Timken sent to the government for Manufacturing and Census data to inform their decisions.


-Timken worked with the WTO to establish its position in the global market.

Timken hired an outside marketing research firm, as this is a very large project, which an outside firm can do faster and better.

As Dan noted, while Timken uses both internal and external sources for marketing research, when it comes to a really big job, outside firms can do the job faster and cover the global market more effectively than Timken can do internally.

In class, we heard about the segmentation approach used by Bayer Consumer Products. We learned that Bayer has actually targeted two segments WITHIN the Aspirin market. These segments are:




-Aspirin Regimen to Reduce Recurrent Heart Attacks and Strokes and Aspirin for Pain Relief


-Aspirin for Pain Relief and Dermatological Aspirin


-Aspirin Regimen to Reduce Recurrent Heart Attacks and Strokes and Aspirin for Coughs and Colds


-Aspirin for Pain Relief and Multivitamin Aspirin


-Bayer for women and Bayer for men.



Aspirin Regimen to Reduce Recurrent Heart Attacks and Strokes and Aspirin for Pain Relief

two major segments WITHIN Aspirin Aspirin Regimen andAspirin for Pain Relief

Marketing synergies often come at the expense of product synergies because




-product synergies are more effective for penetrating a market rather than creating one.


-multiple market segments usually require multiple products.


-it is easier to change a product than to completely develop a new marketing plan.


-a single customer segment will likely require a variety of products.


-no company can afford to do both at the same time.



a single customer segment will likely require a variety of products.

Marketing synergies often come at the expense of product synergies because a single customer segment will likely require a variety of products, each of which will have to be designed and manufactured.

As the owner of your Wendy's restaurant located near an urban university, which of the following competitors mentioned in the textbook should you monitor closely due to its explosive growth in the number of current and proposed locations—one that may or will be near your restaurant?




-McDonald's


-Burger King


-In-N-Out Burger


-Five Guys Burgers


-Smashburger

Five Guys Burgers

From 2003 to 2012, Five Guys Burgers exploded, with more than 1,000 locations nationwide and 1,500 new restaurants planned.

The Minnesota Twins, a professional baseball team, wanted to develop creative ways to boost sagging attendance at its ball games. The Twins hired a moderator who, after every home game during the month of July, led informal discussions with groups of 6 to 10 fans to find out what they did and did not like about the baseball team and their experience at the stadium. The discussions were videotaped so that researchers could review the data at a later date and in more detail. What are such informal research discussions called?




-experiments


-secondary data


-focus groups


-panels


-depth interviews

focus groups

In order to generate more specific research questions or to clarify a marketing problem, many marketers conduct focus groups. Focus groups are defined as informal sessions with 6 to 10 current, past, or potential customers in which a discussion leader, or moderator, asks their opinions about the firm's and its competitors' products or services, how they use these, and what special needs they have that these offerings don't address. Often video recorded and conducted in special interviewing rooms with a one-way mirror, these groups enable marketing researchers and managers to hear and watch consumer reactions.

Which of the following is a criterion used in forming market segments?




- similarity of segments to competitors' segments


-differences between potential suppliers or distributors


-differences of needs of buyers within a segment


-market size of the segment


-simplicity and cost-effectiveness of assigning potential buyers to segments

simplicity and cost-effectiveness of assigning potential buyers to segments

The five criteria to be used in forming segments include: (1) simplicity and cost-effectiveness of assigning potential buyers to segments; (2) potential for increased profit; (3) similarity of needs of potential buyers within a segment; (4) difference of needs of buyers among segments; and (5) potential of a marketing action to reach a segment.

Product differentiation refers to




-a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs.


- the unique combination of product benefits received by targeted buyers.


-those characteristics of a product that make it superior to competitive substitutes.


-a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products.


-the legal requirement that requires a specified degree of distinction between products to ensure an organization's intellectual property rights.

a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products.

When a telemarketer calls to sell a consumer life insurance, the last questions asked is what category does the person's household income falls into (less than $50,000; $50,000 to $99,999; and $100,000 and over). When the telemarketer asks about household income, this indicates the use of which type of consumer variable the firm is using to segment its market?




-usage


-behavior


-demographic


-buying situation


-psychographic

demographic

Household income is a demographic variable. See Figure 9-4 in the textbook.

In class, we talked about Hewlett Packard's success. We noted that HP has been successful by finding ____________________ and targeting them with appropriate products and services!




-new suppliers


-new businesses


-new innovations


-new market segments


-new employees

new market segments

As we noted in class, HP has been successful by finding new market segments and targeting them with appropriate products and services!!

In Figure 9-1 above, "A" represents which stage of the market segmentation process?




-link needs to actions


-identify market needs


-establish a marketing protocol


-execute marketing program actions


-segment and select the target markets

identify market needs




(Market segmentation links market needs to an organization's marketing program—specific marketing mix actions to satisfy those needs. The stages in the market segmentation process are: ("A") identify market needs; ("B") link needs to actions; and ("C") execute marketing program actions. )

Market segmentation links market needs to an organization's marketing program—specific marketing mix actions to satisfy those needs. The stages in the market segmentation process are: ("A") identify market needs; ("B") link needs to actions; and ("C") execute marketing program actions.

Small athletic shoe manufacturers such as Vans have targeted niche markets and make shoes designed to satisfy the needs of different specific groups of customers. This strategy is an example of




-market segmentation


-mass customization


-customized manufacturing


-single chain marketing


-market specific selection

market segmentation

Market segmentation links market needs to an organization's marketing program—specific marketing mix actions that satisfy customers' needs.

The fifth step in segmenting and targeting markets that link customer needs to marketing actions is to __________.




- take marketing actions to reach target markets


-group potential buyers into segments


-select target markets


-group products to be sold into categories


-develop a market-product grid and estimate size of the overall market

take marketing actions to reach target markets




(The steps in segmenting and targeting markets that link customer needs to marketing actions are: (1) group potential buyers into segments; (2) group products to be sold into categories; (3) develop a market-product grid and estimate size of markets; (4) select target markets; and (5) take marketing actions to reach target markets. See Figure 9-3 in the textbook.)

The steps in segmenting and targeting markets that link customer needs to marketing actions are: (1) group potential buyers into segments; (2) group products to be sold into categories; (3) develop a market-product grid and estimate size of markets; (4) select target markets; and (5) take marketing actions to reach target markets. See Figure 9-3 in the textbook.

Which of the following is a consumer demographic segmentation variable?




-personality


-gender


-usage rate


-needs


-region

gender




(Demographic segmentation is based on some objective physical (gender, race), measurable (age, income), or other classification attribute (birth era, occupation) of prospective customers. See Figure 9-4 in the textbook.)

Demographic segmentation is based on some objective physical (gender, race), measurable (age, income), or other classification attribute (birth era, occupation) of prospective customers. See Figure 9-4 in the textbook.

Carma Laboratories, Inc. the maker of Carmex lip balm, used __________ to conduct marketing research to understand the nature of online conversations about lip balm.




-ethnographic research


-depth interviews


-focus groups


-social media


-telephone surveys

social media

Carma Laboratories, Inc., the maker of Carmex lip balm, used social media to conduct marketing research to understand the nature of online lip balm conversations.

In class, we heard about the segmentation approach used by Bayer Consumer Products. From what we heard, how many major consumer care segments does Bayer have?




2


3


4


5


6

5

In Marketing in the News, we heard about research into the most "Patriotic Brands" in the US. What brand was at the top?




-Coors


-Apple


-Gillette


-Harley-Davidson


-Jeep

Jeep

New Balance makes the Minimus line of shoes with a Vibram outsole and REVlite cushioning for those who want to "feel the trail." Its 1260v2 shoe incorporates Stabilicore technology to "deliver a plush, smooth, and stable ride." And its Made in America, top of the line, 990v3 traditional running/walking shoe uses a "premium pigskin upper with mesh inserts for breathability, a stability-enhancing ABZORB® midsole, and ENCAP to promote a healthy gait." This strategy is an example of




-mass customization


-product segmentation


-market segmentation


-single chain marketing


-market specific selection

market segmentation

Market segmentation links market needs to an organization's marketing program—specific marketing mix actions to satisfy those needs. New Balance targets the specific needs of particular segments of runners with its different types of shoes.

During its market segmentation process for the Nike LeBron X basketball shoe, which sells for $200+ a pair, Nike decided to concentrate on affluent teens rather than members of high school basketball teams. This is an example of




-selecting target market segments to reach.


- forming products to be sold into groups.


-developing a market-product grid and estimating size of markets.


-taking marketing actions to reach target markets.


-forming prospective buyers into segments.


-

selecting target market segments to reach.

A decision to concentrate on affluent teenagers is the selection of a target market segment.

Apple's iPhone has a feature known as Siri that lets you use your voice to send messages, make calls, set reminders, and ask questions. This feature sets the smartphone apart from its competitors and thus provides




-product segmentation


-market expansion


-product differentiation


-usage segmentation


-psychographic segmentation

product differentiation

Product differentiation involves a firm's using different marketing mix actions, such as product features and advertising, to help consumers perceive the product as being different and better than competing products. In the case of Apple, Siri helps consumers to perceive the iPhone as being different from and better than competing products from Samsung, Blackberry, etc.


Figure
 9-10 above shows the market-product grid for a Wendy's restaurant next 
to a large urban university campus after you've chosen the market 
segments to target and the product groupings to offer based on the 
market size estimates. Th...

Figure 9-10 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus after you've chosen the market segments to target and the product groupings to offer based on the market size estimates. The next step is to develop a simple marketing action to reach a target market. Assume students who live in dormitories or apartments on or near the campus cannot use commuter student parking lots. Placing flyers under windshield wipers of cars parked in student parking lots on weekdays between 7:00 A.M. and 4:00 P.M. that offer a $2 off coupon on any meal during the fall quarter would be especially targeted at potential

day commuter customers

All of the following are downsides to data mining EXCEPT:




-much of the information found on the Internet is factually incorrect.


-personal, private data on most Americans is available on the Internet.


-it is easy for almost anyone to find out your personal information through both online and offline sources.


-you can also use the Internet to find out which companies are obtaining your personal data


-many firms obtain personal, private data by placing "cookies" on a person's computer or use tracking "apps" to forward location information from a user's mobile phone.

you can also use the Internet to find out which companies are obtaining your personal data

Data mining is the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions.

In class, we looked at a variety of possible positioning platforms that you might use for your brand. We looked at the example of a Lamborghini automobile. Which basic positioning platform does that car company use?




-premium positioning


-value for money


-family values


-a problem solver


-anti-establishment/rebel

premium positioning

In class, what did we say that STP stands for in the field of Marketing?




-Suntech Power Holding, Co.


-STP Fuel & Oil Additives


-Stone Temple Pilots


-Segmentation, Targeting, and Positioning


-Simple Theorem Prover

Segmentation, Targeting, and Positioning

Facts and figures obtained by watching, either mechanically or in person, how people actually behave are referred to as __________ data.

observational

A(n) __________ question requires respondents to select one or more response options from a set of predetermined choices.




-depth interview


-open ended


-fixed-alternative


-attitudinal


-semantic differential

fixed alternative


In
 the Apple market-product grid shown above for its personal computer 
line, the "medium/large business" professional segment seems willing to 
purchase all of the items in Apple's product line. This allows Apple to 
enjoy cost savings du...

In the Apple market-product grid shown above for its personal computer line, the "medium/large business" professional segment seems willing to purchase all of the items in Apple's product line. This allows Apple to enjoy cost savings due to __________.




-segment differentiation


-marketing synergies


-product synergies


-segment repositioning


-product differentiation

marketing synergies

Running horizontally across the grid, each row represents an opportunity for efficiency in terms of a market segment. Were Apple to focus on just one group of customers, such as the professional medium/large business segment, its marketing efforts could be streamlined. Apple could probably create a single ad to reach this target segment.

Marketers are increasingly using online surveys to collect primary data. One advantage is that




- response rates are higher because consumers are anonymous.


-the quality of responses is better with online surveys than they are with personal interview surveys.


-turnaround time from data collection to report is much quicker than with traditional methods.


-consumers value e-mail surveys and feel highly regarded when receiving them.

turnaround time from data collection to report is much quicker than with traditional methods.

Variables such as location, the North American Industry Classification System (NAICS) code, and type of buy are all examples of ways to




-differentiate products


-forecast sales to a consumer market


-segment an organizational market


-segment a consumer market


-promote NAFTA

segment an organizational market

In class, we looked at a variety of possible positioning platforms that you might use for your brand. Which of the following is NOT a positioning platform that we thought about?




-role model


-technological leader


-ethnic pride


-a problem solver


-anti-establishment/rebel



ethnic pride

In class, we noted several guidelines for selecting a target market. Which of the following was NOT one of those guidelines?




-Be sure that the target market is compatible with the company's goals.


-Be sure that the market opportunity matches with the company's resources


-Be sure that the profit potential justifies the investment


-Be sure that there are few competitors for this target market (or that the competition is relatively weak).


-Actually, ALL of the above are guidelines we discussed.

Actually, ALL of the above are guidelines we discussed.




(When selecting a target market, we need to be sure the market is compatible with the company's goals, that the opportunity matches the resources we have, that the profit potential justifies the investment we will need to make, and that there are no competitors (or that the competition is weak in this target market).)

A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as a __________.




-payoff table


-cross-tabulation


-market-product grid


-growth-share matrix


-product differentiation table

market-product grid

Two important disadvantages of secondary data are __________ and __________.




-inexpensive; up-to-date


-not up-to-date; not specific enough for the project


-low cost; saves time


-tailor-made to specifications; out of date


-cost; time-consuming to collect the data

not up-to-date; not specific enough for the project

Three important disadvantages of secondary data are: (1) Secondary data may be out of date, especially if they are U.S. Census data collected only every 5 or 10 years. (2) The definitions or categories might not be quite right for a researcher's project. For example, the age groupings or product categories might be wrong for the project. (3) Because the data are collected for another purpose, they may not be specific enough for the project. In such cases it may be necessary to collect primary data. Alternative "cost; time-consuming to collect the data" are disadvantages of primary data.

To the owner of a Wendy's fast-food restaurant, the information in Figure 9-6 above suggests




-new menu items or promotional strategies may be needed to convert prospects into users.


-most of the respondents think of Wendy's as their primary fast food restaurant.


-McDonald's has fewer "exclusively loyal" customers than does Wendy's


-Burger King is closing in on your market share.


-a need to devise a marketing program to change the minds of nonprospects.

new menu items or promotional strategies may be needed to convert prospects into users.

The nonusers part of the Wendy's bar in text Figure 9-6 also provides ideas. It shows that 14.6 percent of adult Americans don't go to fast-food restaurants in a typical month and are really nonprospects—unlikely to ever patronize your restaurant. But the 57.0 percent of the Wendy's bar shown as prospects may be worth some in-depth thought. These adults use the product category (fast food) but do not yet go to Wendy's. New menu items or promotional strategies may succeed in converting these prospects into users that patronize Wendy's. See Figure 9-6 in the textbook.

When Procter & Gamble acquired the Old Spice brand, it decided to reposition the brand by using a different advertising message to see whether its sales would increase. The new advertising message is the __________ in this marketing experiment.




-dependent variable


-extraneous variable


-constraint


-independent variable


-error variable

independent variable


Figure
 8-5 above shows how marketing researchers and managers use information 
technology to turn information into marketing actions. What does "E" 
represent?



-external data sources
-results
-data warehouse
-internal data sources
-buy...

Figure 8-5 above shows how marketing researchers and managers use information technology to turn information into marketing actions. What does "E" represent?




-external data sources


-results


-data warehouse


-internal data sources


-buying queries

results


(Figure 8-5 shows how marketers use information technology, data, models, and queries to obtain results that lead to marketing actions. At the top of Figure 8-5, marketers use information technology that consists of computers linked together through sophisticated communication networks to access and retrieve data from internal ("A") and external ("C") sources. These data sources are stored, organized, and managed in databases that collectively form a data warehouse ("B"). At the bottom of Figure 8-5, marketers use computers to query the databases in the data warehouse with marketing questions ("D"). These questions go through statistical models that organize and manipulate the data to analyze and identify the relationships that exist. The results are then presented using tables and graphics for easier interpretation ("E"). See Figure 8-5 in the textbook. )

Figure 8-5 shows how marketers use information technology, data, models, and queries to obtain results that lead to marketing actions. At the top of Figure 8-5, marketers use information technology that consists of computers linked together through sophisticated communication networks to access and retrieve data from internal ("A") and external ("C") sources. These data sources are stored, organized, and managed in databases that collectively form a data warehouse ("B"). At the bottom of Figure 8-5, marketers use computers to query the databases in the data warehouse with marketing questions ("D"). These questions go through statistical models that organize and manipulate the data to analyze and identify the relationships that exist. The results are then presented using tables and graphics for easier interpretation ("E"). See Figure 8-5 in the textbook.

A disadvantage of a __________ is that the marketing research firm needs to recruit new members continually to replace those who drop out.




-representative group


-mall intercept interviews


-focus group


-survey of experts


-panel

panel

In class, we looked at the case of Best Buy, where 20% of their customers generate a significant amount of profits by purchasing high margin items without bothering to use rebates. According to the lecture, what did Best Buy call these consumers?




-essential


-special


-cash cows


-angels


-devils

angels

Which of the following statements regarding segmentation bases is MOST ACCURATE?




-The identification of demographic variables is more objective than the identification of psychographic variables, which is more subjective.


-Marketers should use segmentation bases in this order to reduce potential costs: behavioral, demographic, psychographic, and geographic.


-The identification of psychographic variables is more objective than the identification of demographic variables, which is more subjective.


-Behavioral segmentation is based primarily on personality.


- Psychographic segmentation is based primarily on product features.

The identification of demographic variables is more objective than the identification of psychographic variables, which is more subjective.

A market-product grid is a framework to relate the market segments of potential buyers to




-estimated expenses for products sold.


-products offered or potential marketing actions by an organization.


-total anticipated revenue.


-total anticipated profit.


-market share of the closest competitor.

products offered or potential marketing actions by an organization.

A market-product grid is a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.

The increased customer value achieved through performing organizational functions like marketing or manufacturing more efficiently is referred to as __________.




-aggregation


-organizational synergy


-segmentation


-amalgamation


-valuation

organizational synergy

The process of segmenting a market and selecting specific segments as targets is the link between the various buyers' or market needs and




-industry standards


-government regulations


-top-level management


-controllable environmental factors


-the organization's marketing program

the organization's marketing program

Researchers for Frito-Lay discovered that matte beige bags of potato chips picturing potatoes and other "healthy" ingredients in the snack don't trigger activity in the anterior cingulate cortex, an area of the brain associated with feelings of guilt, as much as shiny bags with pictures of chips. Frito-Lay then switched out of shiny packaging in the United States shortly thereafter. This is an example of using




-extrapolation


-supposition


-implication


-neuromarketing


-conjecture

neuromarketing

In class, we looked at Oldsmobile, a brand that is no longer around as it could not adapt to changes in the marketplace. This was presented as a danger of which type of target market strategy?




-market aggregation


-mass marketing


-undifferentiated marketing


-single-segment strategy


-multiple segment strategy

single-segment strategy

Based on the lecture, which of the following is a good example of collecting primary data using personal observation?




-syndicated services, like ProductScan


-online databases, like LexisNexis


-Devices like TIVO that record what television shows people watch.


-Hiring researchers as mystery shoppers and having them see how retailers are selling our product in their stores


-Getting people into small interview groups to discuss the product in Focus Group research

Hiring researchers as mystery shoppers and having them see how retailers are selling our product in their stores

In class, we heard about the segmentation approach used by Bayer Consumer Products. Which of the following is not a major consumer care segment for Bayer?




-analgesics


-gastrointestinal


-dermatological


-cough and cold remedies


-actually, all of these are major consumer care segments for Bayer

actually, all of these are major consumer care segments for Bayer

Consider Figure 8-4: Question 6 above, which was part of a Wendy's survey that assessed fast-food restaurant preferences among present and prospective consumers. Question 6 illustrates which type of question format?




-dichotomous


-open-ended


-likert


-attitudinal


-semantic differential

likert

A marketing manager must be able to put a market segmentation plan into effect. This means being able to form market segments and then __________ without encountering excessive costs.




-eliminate potential non-buyers


-identify segmentation variables


-select the market segment(s) to target


-redirect their purchase behaviors


- ignore any and all similarities

select the market segment(s) to target




(Marketers must be able to form and then select market segments to put a market segmentation plan into effect. The five criteria to be used in forming segments include: (1) simplicity and cost-effectiveness of assigning potential buyers to segments; (2) potential for increased profit; (3) similarity of needs of potential buyers within a segment; (4) difference of needs of buyers among segments; and (5) potential of a marketing action to reach a segment. The five criteria used for selecting a target segment include: (1) market size; (2) expected growth; (3) competitive position; (4) cost of reaching the segment; and (5) compatibility with the organization's objectives and resources.)

Marketers must be able to form and then select market segments to put a market segmentation plan into effect. The five criteria to be used in forming segments include: (1) simplicity and cost-effectiveness of assigning potential buyers to segments; (2) potential for increased profit; (3) similarity of needs of potential buyers within a segment; (4) difference of needs of buyers among segments; and (5) potential of a marketing action to reach a segment. The five criteria used for selecting a target segment include: (1) market size; (2) expected growth; (3) competitive position; (4) cost of reaching the segment; and (5) compatibility with the organization's objectives and resources.

When Ann Taylor, a well-known retailer of sophisticated women's clothing, started losing sales to its own LOFT outlets that feature moderately priced casual clothes, Ann Taylor was dealing with the marketing phenomenon known as __________.

cannibalization

Market segmentation involves aggregating prospective buyers into groups that (1) will respond similarly to a marketing action and (2)




- respond similarly to marketing messages.


-have similar shopping styles.


-will become loyal customers.


-will become stakeholders of the organization.


-have common needs.

have common needs.




(Market segmentation involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.)

Market segmentation involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

Airline programs that encourage passengers to repeatedly use the same airline focus on usage rate and employ a __________ strategy.




- rate of recurrence


- product utilization


- incidence


- frequency marketing


-consumption index

frequency marketing