MGT 103 FINAL EXAM UPDATED QUESTIONS AND VERIFIED
ANSWERS
Market segmentation involves aggregating prospective buyers into groups that have two key
characteristics, what are they? - CORRECT ANSWER✅✅✅common needs and similar response to
marketing action
in terms of market segments and products, what are the three market segmentation strategies? -
CORRECT ANSWER✅✅✅1 one product, multiple market segments
2 multiple products multiple segments
3 segments of one, aka mass customizaton
The process of segmenting and targeting markets is a bridge between which two marketing activities? -
CORRECT ANSWER✅✅✅identifying market needs and executing the marketing program
what is the difference between the demographic and behavioral bases of market segmentation -
CORRECT ANSWER✅✅✅demographic segmentation is based on some objective physical,
measurable, or other classification. Behavioral segmentation is based on some observable actions,
where they buy, what benefits they seek.
what factor is estimated or measured for each of the cells in a market-product grid - CORRECT
ANSWER✅✅✅each cell in the grid can show the estimated market size of a given product sold to a
specific market segmentation.
what are some criteria used to decide which segment to choose for targets? - CORRECT
ANSWER✅✅✅possible criteria include market size, expected growth, competitive position, etc
How are marketing and product synergies different in a market-product grid? - CORRECT
ANSWER✅✅✅marketing synergies run horizontally across a market product grid. each row
represents an oppourtunity for efficiency in the marketing efforts to a market segment.
what is the difference between product positioning and product repositioning - CORRECT
ANSWER✅✅✅product positions refers to the place a product occupies in consumers minds. product
,repositioning involves changing the place a product occupies in a customers mind relative to
competitors.
Why do marketers use perceptual maps in product positioning decisions? - CORRECT
ANSWER✅✅✅perceptual maps are a means of displaying in two dimensions the location of
products or brands in the minds of customers
80/20 rule - CORRECT ANSWER✅✅✅20% of users account for 80% of sales
Market Segmentation - CORRECT ANSWER✅✅✅the process of dividing a market into meaningful,
relatively similar, and identifiable segments or groups
usage rate - CORRECT ANSWER✅✅✅the quantity consumed or the number of store visits during a
specific period
what are the four main types of consumer products - CORRECT ANSWER✅✅✅They are: (1)
convenience products—items that the consumer purchases frequently, conveniently, and with a
minimum of shopping effort; (2) shopping products—items for which the consumer compares several
alternatives on criteria such as price, quality, or style; (3) specialty products—items that the consumer
makes a special effort to search out and buy; and (4) unsought products—items that the consumer does
not know about or knows about but does not initially want.
what is the difference between a product line and a product mix - CORRECT ANSWER✅✅✅a product
line is a group of products or service items that are closely related because they satisfy a class of needs,
are used together, etc. a product mix is all of the products lines offered by an organization
What kind of innovation would an improved electric toothbrush be? - CORRECT
ANSWER✅✅✅continuous innovation - no new learning required by consumers
Why can an "insignificant point of difference" lead to new-product failure? - CORRECT
ANSWER✅✅✅the product must have superior characteristics that deliver unique benefits to the
user compared to those of competitors that must be sufficient enough to motivate a change in
consumer behavior.
, what marketing metric might you use in a marketing dashboard to discover which states have weak
sales? - CORRECT ANSWER✅✅✅the marketing metric "annual percentage change in unit volume by
state" will help
what is the new product strategy development stage in the new product development process -
CORRECT ANSWER✅✅✅both SWOT analysis and environmental scanning to asses its strengths and
weaknesses
what are the main sources of new product ideas? - CORRECT ANSWER✅✅✅1:employee and
coworkers suggestions
2:customer and supplier suggestion
3:r&d labs
4:analysis of competitors products
5: smaller tech firms
What is a test market, and what are the three kinds? - CORRECT ANSWER✅✅✅test marketing
involves offering a product for sale on a limited basis in a defined area for a specific time period
1) standard
2)controlled
3)simulated
what is the commercialization of a new product? - CORRECT ANSWER✅✅✅Commercialization, the
most expensive stage for most new products, is the last stage of the new-product process that involves
positioning and launching a new product in full-scale production and sales.
idea generation - CORRECT ANSWER✅✅✅the systematic search for new product ideas
convenience products - CORRECT ANSWER✅✅✅items that the consumer purchases frequently,
conveniently, and with a minimum of shopping effort
shopping products - CORRECT ANSWER✅✅✅items for which the consumer compares several
alternatives on criteria such as price, quality, or style
ANSWERS
Market segmentation involves aggregating prospective buyers into groups that have two key
characteristics, what are they? - CORRECT ANSWER✅✅✅common needs and similar response to
marketing action
in terms of market segments and products, what are the three market segmentation strategies? -
CORRECT ANSWER✅✅✅1 one product, multiple market segments
2 multiple products multiple segments
3 segments of one, aka mass customizaton
The process of segmenting and targeting markets is a bridge between which two marketing activities? -
CORRECT ANSWER✅✅✅identifying market needs and executing the marketing program
what is the difference between the demographic and behavioral bases of market segmentation -
CORRECT ANSWER✅✅✅demographic segmentation is based on some objective physical,
measurable, or other classification. Behavioral segmentation is based on some observable actions,
where they buy, what benefits they seek.
what factor is estimated or measured for each of the cells in a market-product grid - CORRECT
ANSWER✅✅✅each cell in the grid can show the estimated market size of a given product sold to a
specific market segmentation.
what are some criteria used to decide which segment to choose for targets? - CORRECT
ANSWER✅✅✅possible criteria include market size, expected growth, competitive position, etc
How are marketing and product synergies different in a market-product grid? - CORRECT
ANSWER✅✅✅marketing synergies run horizontally across a market product grid. each row
represents an oppourtunity for efficiency in the marketing efforts to a market segment.
what is the difference between product positioning and product repositioning - CORRECT
ANSWER✅✅✅product positions refers to the place a product occupies in consumers minds. product
,repositioning involves changing the place a product occupies in a customers mind relative to
competitors.
Why do marketers use perceptual maps in product positioning decisions? - CORRECT
ANSWER✅✅✅perceptual maps are a means of displaying in two dimensions the location of
products or brands in the minds of customers
80/20 rule - CORRECT ANSWER✅✅✅20% of users account for 80% of sales
Market Segmentation - CORRECT ANSWER✅✅✅the process of dividing a market into meaningful,
relatively similar, and identifiable segments or groups
usage rate - CORRECT ANSWER✅✅✅the quantity consumed or the number of store visits during a
specific period
what are the four main types of consumer products - CORRECT ANSWER✅✅✅They are: (1)
convenience products—items that the consumer purchases frequently, conveniently, and with a
minimum of shopping effort; (2) shopping products—items for which the consumer compares several
alternatives on criteria such as price, quality, or style; (3) specialty products—items that the consumer
makes a special effort to search out and buy; and (4) unsought products—items that the consumer does
not know about or knows about but does not initially want.
what is the difference between a product line and a product mix - CORRECT ANSWER✅✅✅a product
line is a group of products or service items that are closely related because they satisfy a class of needs,
are used together, etc. a product mix is all of the products lines offered by an organization
What kind of innovation would an improved electric toothbrush be? - CORRECT
ANSWER✅✅✅continuous innovation - no new learning required by consumers
Why can an "insignificant point of difference" lead to new-product failure? - CORRECT
ANSWER✅✅✅the product must have superior characteristics that deliver unique benefits to the
user compared to those of competitors that must be sufficient enough to motivate a change in
consumer behavior.
, what marketing metric might you use in a marketing dashboard to discover which states have weak
sales? - CORRECT ANSWER✅✅✅the marketing metric "annual percentage change in unit volume by
state" will help
what is the new product strategy development stage in the new product development process -
CORRECT ANSWER✅✅✅both SWOT analysis and environmental scanning to asses its strengths and
weaknesses
what are the main sources of new product ideas? - CORRECT ANSWER✅✅✅1:employee and
coworkers suggestions
2:customer and supplier suggestion
3:r&d labs
4:analysis of competitors products
5: smaller tech firms
What is a test market, and what are the three kinds? - CORRECT ANSWER✅✅✅test marketing
involves offering a product for sale on a limited basis in a defined area for a specific time period
1) standard
2)controlled
3)simulated
what is the commercialization of a new product? - CORRECT ANSWER✅✅✅Commercialization, the
most expensive stage for most new products, is the last stage of the new-product process that involves
positioning and launching a new product in full-scale production and sales.
idea generation - CORRECT ANSWER✅✅✅the systematic search for new product ideas
convenience products - CORRECT ANSWER✅✅✅items that the consumer purchases frequently,
conveniently, and with a minimum of shopping effort
shopping products - CORRECT ANSWER✅✅✅items for which the consumer compares several
alternatives on criteria such as price, quality, or style
