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70 Cards in this Set
- Front
- Back
Which of the following is NOT a characteristic of a consumer market?
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their purchasing decisions are always made by only one individual
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Which of these statements is NOT true about business markets?
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the purchase is always made by more than one individual
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Which of the following is NOT a requirement or characteristic of a market?
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a large number of people or organization
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In order to be considered a market, people do NOT have to have
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discretionary income to purchase the product
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Consumers that do now own dogs are not likely to be in the market for dog food because
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they do not have the need or desire for dog food
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The ability to purchase a product is a function of
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buying power
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Adolescents are not considered part of the market for casinos because they
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have very little buying power
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Generally speaking, individuals who are unemployed would NOT be considered a target market for Mercedes or other luxury European import sedans because
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they would not have the ability to purchase such products
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Miller Brewing does not consider teenagers to be part of the beer market because they lack the
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authority to buy beer
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When marketing research shows that a group of people does not desire a particular product, the people in that group
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are not a market for the product
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The first step in the target market selection process is
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identifying an appropriate targeting strategy
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To find a target market, a firm can use the
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undifferentiated strategy, the concentrated strategy, and the differentiated strategy
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Pillsbury defines all purchasers of flour as its target market. What targeting strategy would be most appropriate?
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Undifferentiated
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When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using an
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undifferentiated strategy
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Why would a company use the undifferentiated strategy?
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the needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix
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When the needs of individual consumers in a target market for a specific product are similar and the organization can satisfy most customers with a single marketing mix, the best approach to use may be the
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undifferentiated strategy
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Which of the following statements about the undifferentiated targeting strategy is false?
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The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market.
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The ProMark Company manufactures and sells only one type of ballpoint pen at just one price. All its advertising is the same and is directed at the mass market. What type of targeting strategy is the ProMark Company using?
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undifferentiated
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Marketers for C&H Sugar believe that consumers have similar needs for the product. C&H will most likely use an
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Undifferentiated approach in defining a target market
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If Morton Salt saw all table salt customers are pretty much alike and this offered only one marketing mix, it would be using the
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undifferentiated strategy
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A market in which a large proportion of customers have similar needs for a product is called an
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homogeneous market
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The undifferentiated targeting strategy for finding a target market will most likely NOT be successful if
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people within the market have heterogeneous needs
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Most markets for products are made up of individuals or groups with diverse needs for products and are called
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heterogeneous markets
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Toyota has learned that some people want sports cars, while others want vans, trucks, sedans, and economy cars. In this instance, Toyota has found its markets to be
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heterogeneous
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Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as
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market segments
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Mattel views the toy market as composed of four age groupings, each with different needs and desires. Each of these groups are known as
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a market segment
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The purpose of market segmentation is to
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divide a total market to enable a marketer to develop a more precise marketing mix
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The process of dividing a total market into groups because people within each group have relatively similar product needs is called
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segmentation
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Several conditions must exist for market segmentation to be successful. These conditions include all of the following except
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customer's needs for the product must be homogeneous
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A business advantage of the concentrated targeting strategy for any company is that it
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allows a firm to develop a special marketing mix for a single market segment
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A targeting strategy in which an organization targets a single market segment using one marketing mix is called a
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concentrated strategy
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When markets re comprised of people with differing product needs, the marketing manager should use a
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concentrated or differentiated strategy
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A disadvantage of the concentrated targeting strategy is that
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the firm's financial condition is tied to a single and specialized marketing mix
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If Jaguar focused all its marketing efforts for the new Jaguar XKR on professionals earning more than $250,000 it would be using a
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concentrated strategy
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Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name. It uses the same marketing mix to reach this market. Tiffany's uses a
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concentrated targeting strategy
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Interior Designs Inc. sells expensive custom-made draperies, bedding, and accessories using a single marketing mix and is therefore most likely using a
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concentrated targeting strategy
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The primary advantage of a concentrated targeting strategy is
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it allows a firm to specialize to meet specific customer needs
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Procter and Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter and Gamble is using a
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differentiated targeting strategy for laundry detergents.
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Volkswagen markets its Routan to large families, its R32 race care to men, and its Jetta to young singles. What targeting approach is Volkswagen using?
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differentiated
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A targeting strategy in which an organization directs its marketing efforts at several segments is called a
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differentiated strategy
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If a company markets its products to several different countries, it is using a
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differentiated targeting strategy to segment the total market.
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After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is
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determining which segmentation variables to use
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Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called
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segmentation variables
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Age, rate of product use, location, and gender are all example of common
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segmentation variables
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Segmentation variables are usually grouped into four categories
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demographic, geographic, psychographic, and behavioristic
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Which of the following is not one of the major categories of consumer market segmentation variables?
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situational variables
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Occupation, family size, and family life cycle are all _____ variables for segmenting consumer markets
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demographic
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McDonald's uses a segmentation strategy for its sandwiches based on market characteristics such as age, gender, or income. Which of the following segmentation variables is McDonald's using?
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demographic
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With its Venus razor, Gillette was the first marketer to offer a triple blade razor specifically designed for women. This is an example of market segmentation using _____ variables.
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demographic
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Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle to upper class income. Kelley's Kids is using _____ variables to segment its market.
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demographic
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Cosmo magazine, secret deodorant, and Eve cigarettes are all products whose marketers have used segmentation based on
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gender
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A marketer that targets customers based on marital status and the presence and age of children is using
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family life cycle
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Which of the following products is most likely to have its market segment based on age?
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legos
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If Campbell were to offer single serving "Soup for One" packages to small household markets, it would be using segmentation based on
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family life cycle
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Which of the following products is least likely to be segmented according to stages in the family life cycle?
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Diet Coke
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Family life cycle is most typically based on
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marital status and age of children
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Population density and city size are _____ variables used for market segmentation.
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geographic
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Zerex markets its radiator liquid as a coolant in the South and an antifreeze in the North. Which of the following segmentation variable is Zerex using?
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geographic
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Many marketers are concerned about the number of potential customers within a certain area of land because of the differentiated requirements to serve dissimilar areas. What is this segmentation variables called?
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Market density
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Subaru is producing a new crossover van with all-wheel drive. Which of the following would be a likely variable for segmenting the market for this new model?
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geographic location
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Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about neighborhoods throughout the US. This information is used to aid
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geodemographic segmentation
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Justin Franklin's company is interested in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through
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geodemographic segmentation
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Micromarketing is
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a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets
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Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use of
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micromarketing
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Which of the following is the biggest drawback to using psychographic variables?
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they are difficult to measure
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The three most commonly used psychographic segmentation variables are
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personality, motives, and lifestyles.
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When research indicated that Bluetooth's products were not reaching the correct target market, marketers of Bluetooth decided to change from demographic segmentation to psychographic segmentation. Which group of new segmentation variables will Bluetooth now by using?
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personality characteristics, motives, and lifestyles
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When using personality characteristics as a market segmentation variable, marketers generally
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use a positively viewed characteristic they assume much of their markets has or would like to have
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When using personality characteristics as a market segmentation variable, marketers generally
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use a positively viewed characteristic they assume much of their target market has or would like to have
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The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is
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lifestyle
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