MGT301 Quiz 2 Theme 3

1. Your company wants to move away from mass marketing and engage in target marketing. The four steps to take, in order, are market segmentation, marketing positioning, differentiation, and targeting.

False

2. Bombay Gifts divides its markets into units of nations, regions, and cities. Bombay

True

3. Demographic segmentation uses different marketing approaches for different time periods of peoples’ lives and different family situations. False
4. Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

True

5. Shopping For The Rich and Famous is a buying service that helps wealthy clients find the best buys in exclusive clothing, high-end cars, travel, and financial services. This firm would use income segmentation. True
6. Your assignment at work is to divide buyers into different groups based on social class, lifestyle, and personality characteristics. After a planning session with the marketing and sales staff, you issue a memo to upper management recommending psychographic segmentation. You are right on target. True
7. Behavioral segmentation requires finding the major advantages or features people look for in the product class, the kinds of people who look for each advantage or feature, and the major brands that deliver each advantage or feature. False
8. LaGrange Florists segments markets into groups of nonusers, ex-users, potential users, first-time users, and regular users of its flowers and services. This firm uses usage rate as the segmentation approach.

False

9. Research about and planning for loyalty status as a segmentation approach is generally not useful or practical for most firms. False
10. For simplicity’s sake, most marketers generally limit their segmentation analysis to one or a few variables.

False

11. Clusters of marketable groups of customers with similar likes, dislikes, lifestyles, and purchase behaviors can be identified by multivariable segmentation systems that merge and analyze geographic, demographic, lifestyle, and behavioral data. True
12. Business and consumer marketers use the same set of variables to segment their markets.

False

13. A growing number of U.S.-based companies have developed the resources and the will to operate in many foreign companies.

False

14. There are many exceptions to the geographic segmentation assumption that consumers in nations close to one another will have many common behaviors and traits.

True

15. Because there is such variation among the economies of countries around the world, it is not practical to segment international markets on the basis of economic factors. False
16. Karyn Caudill, marketing director for a major hospital in Houston, Texas, sees the growing number of ethnic groups and subcultures in her area. She has discovered that for market segments to be useful they must be measurable, accessible, substantial, differentiable, and actionable. True
17. In evaluating different market segments, a firm must look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources.

True

18. At a recent marketing seminar, the featured speaker stated that a target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. This is a correct definition. True
19. Developing a stronger position within several segments creates more total sales than undifferentiated marketing across all segments. True
20. Because Cruise Ships International currently has limited financial and personnel resources, it should avoid concentrated or niche marketing until resources are again substantial.

False

21. Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies.

True

22. Though mass marketing has been widespread in the past 100 years, for centuries consumers were served as individuals where businesses practiced individual marketing.

True

23. Mass marketing is becoming a marketing principle for the 21st century. False

24. When a company faces choosing a target marketing strategy, its choices are influenced by factors related to company resources, the degree of product variability, and the product’s life-cycle stage.

False

25. Most marketing targeted at children, minorities, or other special segments provides benefits to targeted consumers.