UNT MKTG 3650 (Chapters 7-10) EXAM 2 COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW!!

UNT MKTG 3650 (Chapters 7-10) EXAM 2 COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW!! Mass marketing (as contrasted with market segmentation) is most likely to be a viable strategy when: - Answer- The product is in the introductory stage of the life cycle. Few competitors exist, the product is rather undifferentiated, and consumers' wants & needs are rather basic or simple with respect to the product in question. When using the product-based approach to Hierarchical Structures analysis for segmenting markets managers usually start by identifying the overall product-market in which the firm competes and then working down to: - Answer- The branded product-market in which the firm competes The requirement that market segments be "actionable" means that there exist proper distribution channels to move products into the hands of consumers in targeted segments. - Answer- True With respect to segmenting consumer markets by consumption rates, it is usually assumed that: - Answer- A small proportion of consumers (e.g. 20%) will be heavy users and account for the majority of the product's consumption Consumers in some European countries prefer to buy top-loading clothes washers, while consumers in other Europeon countries prefer front-loaders. In developing its strategy for marketing to these nations, LG had to implement a psychographic segmentation to make sure that its washers suited the tastes of the consumers in each of the European countries. - Answer- False: This would be an example of geographic segmentation. Bayer Aspirin promotes its Bayer PM brand as "the only night-time aspirin that relieves pain and gently helps you sleep." Bayer is positioning its brand using: - Answer- Usage occasion With respect to usage rate segmentation schemes, the heavy consumption segment is normally called the "heavy users." - Answer- False: The heavy consumption segment is referred to as the heavy half. To reverse a downward trend in sales, Mazda introduced its MPV minivan. Mazda positioned its van as a cross between a standard minivan and a sport utility vehicle. Mazda knew that it needed to use a market segmentation strategy to correctly target the MPV. The first thing Mazda had to do when it segmented the automobile-buyer market was to identify the current and potential needs of the market (assuming that a benefit segmentation base was desirable). - Answer- True Which of the following least justifies the claim that demographic segmentation bases are the most widely employed of segmentation bases? - Answer- Few differences exist across different geographic areas for the relationships between key demographic traits and consumption behaviors. "Mass marketing" is most consistent with the production concept. - Answer- True Colorado Rocky Mountain Winery bottles a line of wines sold at a number of price points, based on the quality of the wine. Based on studies of its customer base, the winery knows that customers prefer different qualities of wines depending on when they are consumed. Its cheaper wines are targeted to casual consumption situations, while the more expensive wines are expected to be consumed in special situations. Colorado Rocky Mountain Winery is apparently segmenting its customers based on usage occasion. - Answer- True Consider the overall market for beverages in the US. This market consists of both alcoholic and non-alcoholic drinks. Within the alcoholic portion of the market there are a large range on different types of alcoholic drinks, including wines, beers, hard liquors, etc. In addition, each of these later alcoholic lines of beverages can be further subdivided. For example, beers can be, as a minimum, divided into ales and lagers, with many subcategories within these broader groups. If one is seeking to enter the beer brewing business and is conducting an MOA, within the category of ales exists the subcategory of English ales which might be considered: - Answer- A micro-segment or niche Which of the following is true of "niches" as market segments? - Answer- All of the above. Consider the overall market for beverages in the US. This market consists of both alcoholic and non-alcoholic drinks. Within the alcoholic portion of the market there are a large range on different types of alcoholic drinks, including wines, beers, hard liquors, etc. In addition, each of these later alcoholic lines of beverages can be further subdivided. For example, beers can be, as a minimum, divided into ales and lagers, with many subcategories within these broader groups. If one is seeking to enter the beer brewing business and is conducting an MOA, they might define the entire beer market as: - Answer- The mass market or total product-market Inventories of AIO-related questions on surveys are employed to identify groups of consumers with common AIO profiles. These groups typically can be treated by marketers as market segments. - Answer- True The firm's primary purpose for segmenting larger markets into more homogeneous submarkets in which members share common consumption, demographic, psychographic, and attitudinal characteristics is that members of such segments tend to prefer similar products possessing similar product features, attributes, and benefits. - Answer- True Insufficient sales and changing demographics in a brands currently targeted market may suggest the brand needs to be repositioned. Which of the following brands were repositioned as a result of these critical market changes? - Answer- All of the above were repositioned. Because data are easily collected, readily available in secondary sources, and often are highly correlated with consumer wants and needs, demographic segmentation is the most commonly employed segmentation base used in marketing applications. - Answer- True Mediagraphics is not a category of variables commonly used to profile market segments once these segments are created. - Answer- False: Mediagraphics is a category of variables used. The need to reposition a brand arises in all of the following situation except: - Answer- -Perceptual mapping shows that the brand is not sufficiently differentiated from competing brands -Census data suggests that the brand's existing customer demographic is declining in size With respect to requirements for effectively segmenting markets, homogeneous within means that consumers within markets are similar to one another on key consumption-related characteristics. - Answer- True The young married couples with no children stage in the family lifecycle is associated with consumers who prefer sports cars, recreational products, entertainment, and fashion clothing? This is also the first stage in the lifecycle. - Answer- False: Young singles fits this description. As market segments, niches tend to attract less competition than other types of market segments. - Answer- True Which of the following is not one of the three steps in the market segmentation process described in the text? - Answer- Estimate demand in segments that have been identified. The step in the market segmentation process in which marketers employ a combination of demographic traits, mediagraphics, psychographics, and attitudes to characterize segment members is the ____________ stage. - Answer- Profiling market segments Some firms find it attractive to target "niches" because the number of potential customers is largest. - Answer- False: Niches tend to be smaller market segments. Consider the overall market for beverages in the US. This market consists of both alcoholic and non-alcoholic drinks. Within the alcoholic portion of the market there is a large number of different types of alcoholic drinks, including wines, beers, hard liquors, etc. In addition, each of these later alcoholic lines of beverages can be further subdivided. For example, beers can be, as a minimum, divided into ales and lagers, with many subcategories within these broader groups. If one is seeking to enter the beer brewing business and is conducting an MOA, within the category of ales exists the subcategory of English ales which might be considered a simple market segment. - Answer- False: English ales would be considered a micro-segment or niche Consider the overall market for beverages in the US. This market consists of both alcoholic and non-alcoholic drinks. Within the alcoholic portion of the market there is a large number of different types of alcoholic drinks, including wines, beers, hard liquors, etc. In addition, each of these later alcoholic lines of beverages can be further subdivided. For example, beers can be, as a minimum, divided into ales and lagers, with many subcategories within these broader groups. If one is seeking to enter the beer brewing business and is conducting an MOA, they might define the category of ales to be a macro-segment. - Answer- True AquaWorld is a full service dive shop based at the Park Royal in Cozumel. Dive shop management knows that its clientele possess a diverse range of experience (or lack thereof) in diving. Some clients need a lot of hand-holding, prefer to follow a guide while under water, and usually rent their equipment. In contrast the more experienced divers tend to prefer to venture out on their own and generally use their own equipment. AquaWorld has effectively created packages with appropriate pricing for both types of customer. Apparently, AquaWorld is using a ______________ strategy. - Answer- Differentiated targeting With respect to market segmentation, the 80-20 principle has been applied to segmenting markets based on usage rates. - Answer- True