Chapter 6 QuizBU270 PRINCIPLES OF MARKETING
Chapter 6—Segmenting and Targeting Markets
NAME:______SCORE:______DATE
SCENARIOS
Turkey Hunting Equipment
Around the beginning of fall each year, about 2.7 million turkey hunters all over the United States start looking at catalogs for the perfect item to guarantee that this year they will kill a wild turkey, the most elusive game bird on the North American continent. The devoted turkey stalker can stock up on everything from camouflaged turkey hunting socks, turkey license plate holders, vests with huge pockets for toting dead birds, and hunting videos to turkey decoys, turkey earrings, and turkey callers. Neil Cost is considered the best manufacturer of turkey callers in the world. That is his only product, and each is highly prized by turkey hunters. It is not unusual for a turkey hunter to pay $5,000 for one of Cost's callers.
1.Refer to Turkey Hunting Equipment. Wild turkey hunters would be defined as a:
a. / market segmentb. / market position
c. / segmentation base
d. / retail position
e. / consumer position
ANS:AREF:p. 186OBJ:1
A group of individuals sharing one or more characteristics (in this case love of wild turkey hunting) that cause them to have relatively similar product needs is called a market segment.
2.Refer to Turkey Hunting Equipment. Given that the wild turkey hunters number approximately 2.7 million, it meets the segmentation criterion of:
a. / substantialityb. / accessibility
c. / reliability
d. / responsiveness
e. / functionality
ANS:AREF:p. 187OBJ:3
The segment is large enough to warrant developing and maintaining it as a target market.
3.Refer to Turkey Hunting Equipment. Segmenting a market based on the fact that people who enjoy hunting typically exhibit a particular lifestyle is an example of _____ segmentation.
a. / benefitb. / psychographic
c. / geographic
d. / geodemographic
e. / demographic
ANS:BREF:p. 195OBJ:4
Psychographic segmentation is based on lifestyle as well as personality and motive.
4.Refer to Turkey Hunting Equipment. What kind of strategy does Neil Cost use to select his target market?
a. / concentrated targetingb. / multisegment
c. / mass marketing
d. / undifferentiated
e. / repositioned
ANS:AREF:p. 202OBJ:7
Cost targets one segment in the market.
5.Refer to Turkey Hunting Equipment. Primos Hunting Calls is another company that manufactures wild turkey callers. It claims that each of its callers is able to cluck, shriek, and kee-kee (three sounds that have been known to attract the wild turkey). If you buy one of Cost's callers, you are limited to one sound. In this way, Primos has implemented a(n) _____ strategy.
a. / multisegmentb. / product differentiation
c. / undifferentiated marketing
d. / target market
e. / repositioning
ANS:BREF:p. 210OBJ:11
Product differentiation is used to distinguish one company's products from another's.
Wrestling Merchandise
Market research has shown that 6- to 17-year-old males, 18- to 24-year-old females, and 18- to 44-year-old males are most likely to watch a televised professional wrestling event or to attend a live match. Wrestling events are regularly broadcast in 120 different countries. Merchandise licensed by World Wrestling Entertainment (formerly known as the World Wrestling Federation) can be purchased at JCPenney and Wal-Mart. Clothes for adults are used to reach markets that may not buy action figures, video games, and novelty candy, but who are still proud to sport World Wrestling Entertainment (WWE) trademarks.
6.Refer to Wrestling Merchandise. The groups identified above as strong wrestling fans can be described as:
a. / market positionsb. / market segments
c. / positionings
d. / organizational buyers
e. / microsegments
ANS:BREF:p. 186OBJ:1
A group of individuals sharing one or more characteristics that cause them to have relatively similar product needs is called a market segment.
7.Refer to Wrestling Merchandise. The marketing research revealed that _____ segmentation can be used to identify the biggest fans of professional wrestling.
a. / benefitb. / psychographic
c. / demographic
d. / geographic
e. / geodemographic
ANS:CREF:p. 189OBJ:4
Age is a demographic variable for segmentation.
8.Refer to Wrestling Merchandise. Since the WWE must use different methods to reach its three largest target markets, it must use:
a. / undifferentiated targetingb. / concentrated or niche targeting
c. / multisegment targeting
d. / demarketing
e. / repositioning
ANS:CREF:p. 203OBJ:7
A firm that chooses to serve two or more well-defined market segments and develops distinct marketing mixes for each is practicing multisegment targeting.
9.Refer to Wrestling Merchandise. Prior to the 1990s, professional wrestling tried to compete as a legitimate sport just like football and baseball. Now it uses the term “sports entertainment” when talking about what it is marketing to its fans. This is an example of the implementation of a _____ strategy.
a. / multisegmentb. / product differentiation
c. / undifferentiated marketing
d. / target market
e. / repositioning
ANS:EREF:p. 212OBJ:11
Repositioning is the changing of consumers' perceptions in relation to the competition.
Better World Travelers Club
For many years, if car owners wanted to make sure that they would not be stranded if their car were to break down, they became members of the American Automobile Association (AAA). It members also received discounts at AAA-affiliated motels as well as access to maps and a trip planning service. Recently, a new company offering the same services as AAA has come on the market. Better World Travelers Club (BWTC) is competing against AAA by offering the same roadside assistance as AAA and at the same time pitching a go-green philosophy. The company is diligently courting the environmentally-conscious traveler. BWTC has agreed to donate one percent of club revenues to environmental organizations that seek to reduce the use of fossil fuel and fight global warning. In addition, its members receive discounts on travel to remote wilderness retreats, world-class eco-resorts, and “green” hotels (ones that utilize energy efficient practices).
10.Refer to Better World Travelers Club. BWTC’s _____ is environmentally conscious travelers.
a. / market segmentb. / organizational basis
c. / aggregated market
d. / undifferentiated market
e. / market sample
ANS:AREF:p. 186OBJ:1
A group of individuals sharing one or more characteristics that cause them to have relatively similar product needs is called a market segment.
11.Refer to Better World Travelers Club. In deciding to target the environmentally conscious traveler, BWTC hoped that this group met the criterion of _____. In other words, it had to be sure that this group would react to its marketing mix differently from other groups.
a. / reliabilityb. / accessibility
c. / identifiability and measurability
d. / responsiveness
e. / substantiality
ANS:DREF:p. 187OBJ:3
12.Refer to Better World Travelers Club. BWTC’s design of travel packages that would appeal to people who liked hiking and camping and packages that appealed to those who liked resorts would indicate the company was using a _____ base.
a. / benefit segmentationb. / demographic
c. / psychographic
d. / geodemographics
e. / usage rate segmentation
ANS:CREF:p. 195OBJ:4
13.Refer to Better World Travelers Club. BWTC’s appeal to those who want to help preserve the environment indicates that the company was using a _____ base.
a. / benefit segmentationb. / demographic
c. / socioeconomic
d. / geodemographic
e. / cultural segmentation
ANS:AREF:p. 196OBJ:4
Its target market is expected to use the product because it benefits the environment.
14.Refer to Better World Travelers Club. Because BWTC has chosen to concentrate its efforts on environmentally conscious travelers, it can be said to:
a. / have found a market nicheb. / be targeting everyone who owns a car
c. / be targeting everyone who drives
d. / be targeting everyone who drives
e. / have adopted a market aggregation strategy
ANS:AREF:p. 202OBJ:7
BWTC is using a concentrated targeting strategy.
15.Refer to Better World Travelers Club. BWTC’s donation to organizations that seek to reduce the use of fossil fuel is a strategy for:
a. / mass marketingb. / reengineering
c. / repositioning
d. / multisegmentation
e. / product differentiation
ANS:EREF:p. 210OBJ:11
Its donations will differentiate BWTC's service from the service offered by AAA.
16.Refer to Better World Travelers Club. What base has BWTC selected for its positioning strategy?
a. / price and qualityb. / product class
c. / attribute
d. / product use
e. / product life cycle
ANS:CREF:p. 211OBJ:11
BWTC wants consumers to associate the organization with saving the environment (a benefit).
Business Division –CIS ProgramCOM-FSM National Campus