Advertising and Integrated Brand Promotion, International Edition 5th Edition Thomas O'Guinn - Test Bank
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Advertising and Integrated Brand Promotion, International Edition 5th Edition Thomas O'Guinn - Test Bank

Advertising and Integrated Brand Promotion, International Edition 5th Edition Thomas O'Guinn - Test Bank   Instant Download - Complete Test Bank With Answers     Sample Questions Are Posted Below   Chapter 6 - Market Segmentation, Positioning, and the Value Proposition TRUE/FALSE 1.When a brand team defines who the target market of consumers is for …

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Advertising and Integrated Brand Promotion, International Edition 5th Edition Thomas O’Guinn – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

Chapter 6 – Market Segmentation, Positioning, and the Value Proposition
TRUE/FALSE
1.When a brand team defines who the target market of consumers is for their brand that means there is only one narrow group of consumers who they expect to buy it.
ANS: F DIF: Moderate REF: p. 199 OBJ: 6-1
TYP:Comprehension
2.STP marketing includes segmenting, targeting, and positioning.
ANS: T DIF: Easy REF: p. 200 OBJ: 6-1
TYP: Knowledge
3.If Kraft Foods decides to use the STP framework, it must put all of its resources into reaching a single, defined market segment.
ANS: F DIF: Difficult REF: p. 200 OBJ: 6-1
TYP: Application
4.Success from applying the STP framework is often short-lived.
ANS: T DIF: Moderate REF: p. 201 OBJ: 6-1
TYP:Comprehension
5.If advertisers can’t reach a particular market segment with information, it’s probably not a very useful segment.
ANS: T DIF: Easy REF: p. 202 OBJ: 6-2
TYP: Knowledge
6.Companies don’t want to spend advertising dollars to target nonusers over other user groups.
ANS: T DIF: Moderate REF: p. 203 OBJ: 6-2
TYP:Comprehension
7.Getting switchers to buy your brand ensures a new crop of loyal brand users.
ANS: F DIF: Moderate REF: p. 203 OBJ: 6-2
TYP:Comprehension
8.Demographic segmentation is widely used in selecting target segments and includes basic descriptors such as age, gender, race, and education.
ANS: T DIF: Easy REF: p. 204 OBJ: 6-2
TYP: Knowledge
9.Demographics are commonly used to describe or profile target segments that have already been identified as prospects with some other variable.
ANS: T DIF: Moderate REF: p. 204 OBJ: 6-2
TYP:Comprehension
10.Surprisingly, psychographic segmentation is refers not just to the inner mindset of consumers but also to their lifestyles.
ANS: T DIF: Moderate REF: p. 206 OBJ: 6-2
TYP: Application
11.Advertising is not only used for consumer markets; businesses who market to other businesses use it too.
ANS: T DIF: Moderate REF: p. 209 OBJ: 6-2
TYP:Comprehension
12.Once a company matches what it can offer with what a target segment wants, the task of segmenting has begun but is by not yet complete.
ANS: T DIF: Moderate REF: p. 208 OBJ: 6-2
TYP:Comprehension
13.If an advertiser sees a large potential segment being served by a competitor with a large budget, the advertiser has no choice but to look to another segment.
ANS: F DIF: Moderate REF: p. 210-211 OBJ: 6-3
TYP: Application
14.One reason to pursue niche marketing is that a company can often charge a premium price for its product.
ANS: T DIF: Moderate REF: p. 211 OBJ: 6-3
TYP: Application
15.Those who are part of a market niche are often willing to pay a premium price for a specific need.
ANS: T DIF: Easy REF: p. 211 OBJ: 6-3
TYP: Knowledge
16.While a company may use a variety of themes in establishing a position, it should communicate only a single theme within any one advertisement.
ANS: F DIF: Moderate REF: p. 213 OBJ: 6-4
TYP:Comprehension
17.A grocery store advertises itself as providing the best service of any grocery store in the area. It hires six high school students to carry customers’ groceries out to their cars. This is an example of a store that is striving for internal consistency.
ANS: T DIF: Moderate REF: p. 213 OBJ: 6-4
TYP: Application
18.When formulating a positioning strategy, a multiple benefits to satisfy the target segment should be considered.
ANS: F DIF: Difficult REF: p. 213 OBJ: 6-4
TYP: Application
19.State Farm’s “Like a good neighbor” ad campaign is an example of positioning consistency over the long run.
ANS: T DIF: Easy REF: p. 213 OBJ: 6-4
TYP: Application
20.In many well established product categories functional benefit positioning does not give any brand an edge because all offer the same or closely similar sets of functional benefits.
ANS: T DIF: Moderate REF: p. 215 OBJ: 6-4
TYP: Knowledge
21.One of the best ways to revive an ailing brand or fix a poor performance in a certain market is to reposition the brand in the consumer’s mind – create a revised STP.
ANS: T DIF: Difficult REF: p. 217 OBJ: 6-4
TYP: Application
22.When benefit positioning is used, it is up to the consumer to decide what the emotional benefits of the product are.
ANS: F DIF: Moderate REF: p. 217 OBJ: 6-4
TYP:Comprehension
23.A brand’s value proposition is a statement of the benefits of the brand that provide value to its target consumers and includes functional, emotional, and self-expressive benefits.
ANS: F DIF: Difficult REF: p. 218 OBJ: 6-5
TYP: Application
24.When Tylenol’s competitor, Excedrin, touted its benefit as being a pure headache relief medicine explicitly unlike Tylenol’s flu and cold symptom relief, Excedrin was using competitive positioning.
ANS: T DIF: Moderate REF: p. 216 OBJ: 6-4
TYP: Application
25.In an ad for Xootr adult motorized scooter the picture compares it to a child’s scooter and the tagline is “Joy for toy.” This is an example of emotional, not functional benefit positioning.
ANS: T DIF: Moderate REF: p. 217 OBJ: 6-4
TYP:Comprehension
MULTIPLE CHOICE
1.The act of representing one’s product so it will occupy a distinct place in the consumer’s mind is known as ____.
a. positioning
b. targeting
c. segmentation
d. strategy
ANS: A DIF: Easy REF: p. 200 OBJ: 6-1
TYP: Knowledge
2.The STP approach is strongly recommended when markets are:
a. homogenous with respect to consumer characteristics
b. homogenous with respect to consumer needs
c. diverse with respect to consumer needs
d. not well understood by marketers
ANS: C DIF: Moderate REF: p. 199-201 OBJ: 6-1
TYP:Comprehension
3.The selection of key themes or concepts that the organization will feature when communicating with customers about their brand is known as ____.
a. market segmentation
b. positioning strategy
c. marketing mix strategy
d. STP marketing
ANS: B DIF: Moderate REF: p. 200 OBJ: 6-1
TYP:Comprehension
4.The purpose behind all efforts at market segmentation is to
a. ensure that every product is unique.
b. subdivide a large population into identical smaller segments
c. find the largest market segment that will constitute 90 percent of your market share
d. identify consumers that share common characteristics that will lead them as a group to respond distinctively and positively to the right marketing program
ANS: D DIF: Moderate REF: p. 202 OBJ: 6-2
TYP:Comprehension
5.The type of consumer that offers marketers an important opportunity to build future business are called
a. wealthy
b. brand loyal
c. emergent
d. emotional
ANS: C DIF: Difficult REF: p. 203 OBJ: 6-2
TYP: Application
6.The acronym STP stands for
a. sales, targeting, and product.
b. segmenting, targeting, and positioning.
c. selling to parents.
d. selling the product.
ANS: B DIF: Easy REF: p. 200 OBJ: 6-1
TYP: Knowledge
7.Breaking down diverse markets into manageable segments is
a. differentiation.
b. positioning.
c. segmenting.
d. targeting.
ANS: C DIF: Easy REF: p. 200 OBJ: 6-1
TYP: Knowledge
8.Choosing specific segments as the focal point for marketing efforts is
a. differentiation.
b. positioning.
c. segmenting.
d. targeting.
ANS: D DIF: Easy REF: p. 200 OBJ: 6-1
TYP: Knowledge
9.Aligning the marketing mix to yield distinctive approval for the target segment is
a. differentiation.
b. positioning.
c. segmenting.
d. targeting.
ANS: B DIF: Easy REF: p. 200 OBJ: 6-1
TYP: Knowledge
10.Folgers launched a new brand initiative called “Happy Mornings: the Revenge of the Yellow People.” Using STP, they changed their brand positioning as part of a strategy that
a. brings color to the brand reputation
b. addresses a new target group in terms that are relevant to their lifestyles
c. uses nostalgia for 1950’s monster movies to remind Boomers to drink their brand
d. none of these statements explain what Folgers is doing with their new campaign
ANS: B DIF: Difficult REF: p. 200 OBJ: 6-1
TYP: Application
11.Successful marketing strategies need to be modified or even reinvented because
a. new advertising cannot help old products.
b. the dynamic nature of markets and marketing
c. government does not allow long term strategies.
d. consumer preferences tend to shift.
ANS: B DIF: Moderate REF: p. 201 OBJ: 6-1
TYP: Application
12.Segmenting consumers on the basis of product usage means describing consumers as
a. nonusers vs. users
b. loyalists vs. switchers
c. light, medium and heavy users
d. all of these are ways to categorize segments by usage
ANS: D DIF: Moderate REF: p. 202-203 OBJ: 6-2
TYP: Application
13.Unless there are extenuating circumstances, you should avoid using advertising dollars to try to reach ____ when segmenting by usage patterns.
a. heavy users
b. nonusers
c. brand-loyal users
d. variety seekers
ANS: B DIF: Moderate REF: p. 203 OBJ: 6-2
TYP: Application
14.When segmenting markets based on consumers’ usage patterns, variety seekers as a segment are characterized by
a. the lowest level of opportunity for a firm to cultivate sales.
b. buying what is on sale or choosing brands that offer discount coupons.
c. a high level of repeat purchasing of the same brand.
d. extra-enthusiastic purchasing behavior.
ANS: C DIF: Moderate REF: p. 203 OBJ: 6-2
TYP:Comprehension
15.Descriptors such as age, gender, race, and marital status are widely used in
a. demographic segmentation.
b. psychographic segmentation.
c. soci-segmentation.
d. geo-segmentation.
ANS: A DIF: Easy REF: p. 204 OBJ: 6-2
TYP: Knowledge
16.One benefit of using demographic segmentation is that it
a. incorporates the strengths of all the different segmentation methods.
b. makes the process of selecting media vehicles easier.
c. highlights the lifestyles of potential users.
d. gives you insight into the motivations behind the use of the product.
ANS: B DIF: Moderate REF: p. 204 OBJ: 6-2
TYP:Comprehension
17.Segmentation used in selecting target markets that includes basic descriptors such as age, gender, and income is known as ____ segmentation.
a. psychographic
b. behavioral
c. geographic
d. demographic
ANS: D DIF: Easy REF: p. 204 OBJ: 6-2
TYP: Knowledge
18.A well known approach to categorizing consumers is on the basis of where they live because places are often correlated with other characteristics like income and lifestyle. This combination is called ____ segmentation.
a. psychographic
b. behavioral
c. geographic
d. geodemographic
ANS: D DIF: Easy REF: p. 205 OBJ: 6-2
TYP: Knowledge
19.VALS is a well-known system of lifestyle segmentation based on organizing segments in terms of ____ and ____.
a. education; income
b. resources; personal orientation to life
c. product usage rates; variety seeking behaviors
d. demographics; geographics
ANS: B DIF: Moderate REF: p. 208 OBJ: 6-2
TYP:Comprehension
20.A market niche is
a. a competitive position that has little profitability for a firm.
b. a relatively small group of consumers who have a unique set of needs and who typically are willing to pay a premium price to a firm that specializes in meeting those needs.
c. a market segment that a firm stole from a key competitor.
d. a market strategy that positions the firm’s brand as close to the market leader as possible.
ANS: B DIF: Easy REF: p. 211 OBJ: 6-2
TYP: Knowledge
21.Segmenting a consumer market with PRIZM data and segmenting a business market with SIC information share one important characteristic. Both
a. are based on psychographic data.
b. are no longer used by marketers.
c. provide data that allows a company to pinpoint the geographic location(s) of its market.
d. engage in an extensive interviewing process of potential customers to provide consumer motivation information.
ANS: C DIF: Moderate REF: p. 209 OBJ: 6-2
TYP:Comprehension
22.As marketing manager for a large company that publishes magazines, you have been put in charge of positioning a new magazine for “woopies,” or well-off older people. You research the market and make a recommendation to segment on the basis of some VALS information that you collected. You are about to use
a. usage pattern segmentation.
b. demographic segmentation.
c. geodemographic segmentation.
d. psychographic segmentation.
ANS: D DIF: Difficult REF: p. 206-208 OBJ: 6-2
TYP: Application
23.“Careful cooks,” “down-home stokers,” and “functional feeders” are all examples of
a. geopsychographic segmentation
b. lifestyle segmentation
c. psychousage segmentation
d. benefit segmentation
ANS: B DIF: Moderate REF: p. 206-207 OBJ: 6-2
TYP:Comprehension
24.____ are those whose brand preferences are still under development and are likely to offer future potential success for the brand.
a. emergent consumers
b. brand loyal users
c. heavy users
d. variety seekers
ANS: A DIF: Moderate REF: p. 203 OBJ: 6-2
TYP:Comprehension
25.The two most fundamental questions an advertiser must ask when trying to determine which market segment to go after are “What do members of the segment want in a product?” and
a. “How much are they willing to pay for it?”
b. “Can my company provide it?”
c. “What are they willing to settle for?”
d. “Is the segment currently growing?”
ANS: B DIF: Moderate REF: p. 210 OBJ: 6-3
TYP: Application
26.A package delivery company decides it wants to get into the flower delivery business. However, it knows that FTD has a huge share of the market and can offer service worldwide. It decides to look for a market niche. Which of the following is not an advantage of this strategy?
a. The company may be able to charge more for its product.
b. It may not be profitable for FTD to compete in the niche.
c. The company’s market may be larger than FTD’s market.
d. The company can still attempt to serve other segments.
ANS: C DIF: Difficult REF: p. 211 OBJ: 6-3
TYP: Application
27.When Mobil positioned itself as the “Friendly Serve” station, it had a number of good reasons for the selection of its target market. Which one of the following is not one of them?
a. The segment spent the largest amount of money at service stations.
b. Mobil had the resources to provide the service that it promised.
c. The segment was growing.
d. The segment had the greatest number of people in it.
ANS: D DIF: Moderate REF: p. 211 OBJ: 6-3
TYP: Application
28.Effective positioning is based on:
a. meaningful commitment of organizational resources
b. focus on providing substantive value for the intended target
c. simple and internally consistent over time
d. all of these statements are part of a sound basis for positioning
ANS: D DIF: Moderate REF: p. 212 OBJ: 6-4
TYP:Comprehension
29.When a company undergoes a repositioning, it depends on its advertising effort to
a. make sure the position has substance.
b. make sure consumers understand the theme behind its repositioning.
c. reduce the size of the competitive field.
d. select a target market.
ANS: B DIF: Moderate REF: p. 212 OBJ: 6-4
TYP:Comprehension
30.A fast-food restaurant is trying to take the position of being the best choice when you’re in a hurry because it tries to serve all customers within 60 seconds. Which of the following is not internally consistent with the company position?
a. Adding extra drive-up windows
b. Switching to the highest quality beef
c. Hiring more order-takers
d. Putting a big clock with a sweeping second hand behind the counter
ANS: B DIF: Difficult REF: p. 213 OBJ: 6-4
TYP: Application
31.When a product position remains consistent over time, like State Farm’s Good Neighbor campaign
a. it can create a high degree of internal consistency.
b. copy in the advertisements should also not change at all.
c. there is less need for the company to create substantive value for its customers.
d. it increases the chance the advertising message will break through advertising clutter.
ANS: D DIF: Moderate REF: p. 213 OBJ: 6-4
TYP:Comprehension
32.Which one of the following is not an essential characteristic of an effective positioning strategy?
a. It should be aggressive.
b. It should be simple.
c. It should be consistent.
d. It should be substantive.
ANS: A DIF: Easy REF: p. 212-213 OBJ: 6-4
TYP: Knowledge
33.The three fundamental positioning themes are
a. demographic, psychographic, user.
b. benefit, functional, emotional.
c. heavy user, light user, emergent user.
d. benefit, user, competitive.
ANS: D DIF: Moderate REF: p. 214-215 OBJ: 6-4
TYP: Knowledge
34.The American Pork Producers association is running a campaign with the position “Pork. The other white meat.” This is an example of
a. lifestyle segmentation.
b. competitive positioning.
c. benefit positioning.
d. demographic segmentation.
ANS: B DIF: Difficult REF: p. 216 OBJ: 6-4
TYP: Application
35.The goal of benefit positioning is to
a. identify a small segment of consumers that will prefer the firm’s brand.
b. discover new uses for a brand.
c. build a distinctive customer benefit that is featured.
d. revitalize a brand that has lost identity in the market.
ANS: C DIF: Moderate REF: p. 214 OBJ: 6-4
TYP:Comprehension
36.Benefit positioning often refers to the functional benefits the brand offers.  What else can it refer to?
a. there are no other kind of benefits
b. powerful emotional benefits that differentiate the brand in situations where all the competitors offer comparable functional benefits
c. the perceived utilities set with which consumers interpret the brand’s messages
d. insignificant benefits such as peace of mind or prestige benefits
ANS: B DIF: Difficult REF: p. 215 OBJ: 6-5
TYP: Application
37.Self expressive benefits can be the basis for effective positioning. With this approach the purpose is
a. to create distinctive images or personality traits for the brand and then invite the consumer into the brand’s community
b. on benefit, user and competitive positioning, rather than emotional differentiation.
c. on making a product that doesn’t compete directly with the competition.
d. on identifying groups of customers that can be served in a specifically utilitarian way.
ANS: A DIF: Moderate REF: p. 216 OBJ: 6-5
TYP:Comprehension
38.A powerful value proposition in most situations today
a. emphasizes only tangible product benefits
b. includes functional, emotional and self-expressive benefits, though not all must be advertised at one time
c. functional, emotional and self-expressive benefits, all of which must be included in a given advertising campaign
d. excludes children because their decision making is controlled by parents
ANS: B DIF: Difficult REF: p. 219 OBJ: 6-5
TYP: Application
39.One gains tremendous leverage from the process of STP marketing because:
a. it introduces complex products.
b. new products can enter the marketplace.
c. mature product categories can be eliminated.
d. it organizes client and agency efforts together toward servicing the customers’ needs and wants.
ANS: D DIF: Moderate REF: p. 220 OBJ: 6-5
TYP:Comprehension
40.A value proposition fosters the most effective IBP strategies because it
a. conveys knowledge of the target segment in an explicit statement of functional, emotional and self-expressive benefits that client and agency can refer to
b. articulates a distinctive personality for a brand
c. links a brand with status or prestige
d. identifies a brand with a social cause such as literacy
ANS: A DIF: Difficult REF: p. 220 OBJ: 6-5
TYP: Application
Scenario 6-1
Headquartered in Boston, The Gillette Company is the world leader in male grooming, a category that includes blades, razors and shaving preparations. The Gillette Company announced the upcoming launch of two new high-performance women’s razors, broadening the portfolio of the top-selling Venus brand, the world’s most successful franchise in female shaving. The two new razors are Venus Vibrance™, the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporate technological and design enhancements to better address the specific shaving needs of women.
(http://www.gillette.com/women/product_news/gillette_introduces_two_new_razors.htm)
41.(Scenario 6-1) This effort by Gillette to capture the female market
a. fits all the criteria of an STP effort.
b. may or may not be an STP effort. To determine this, it is necessary to know whether Ford has created sub-segments of these segments.
c. May or may not be an STP effort. To determine this, it is necessary to know if all possible segments are being targeted.
d. cannot be considered an STP effort because Ford is targeting multiple segments.
ANS: A DIF: Moderate REF: p. 200 OBJ: 6-1
TYP:Comprehension
42.(Scenario 6-1) According to the information provided here, Gillette has identified market segments along ____ lines.
a. benefit
b. usage pattern
c. geographic
d. demographic
ANS: D DIF: Difficult REF: p. 204 OBJ: 6-2
TYP: Application
43.(Scenario 6-1) It appears that the management at Gillette has performed the fundamental task behind effective segmentation. Gillette has matched what members of different segments want with
a. a distinct demographic profile.
b. an advertising message they will understand.
c. a single appeal.
d. the company’s ability to provide it.
ANS: D DIF: Difficult REF: p. 210 OBJ: 6-3
TYP: Application
44.(Scenario 6-1) The position for any one segment should
a. also hold an appeal for those outside the segment.
b. be easily communicated to consumers.
c. change occasionally to break through advertising clutter.
d. be the same position selected for any other segments.
ANS: B DIF: Moderate REF: p. 212 OBJ: 6-4
TYP:Comprehension
45.(Scenario 6-1) The philosophy behind Gillette’s efforts is based on
a. benefit positioning.
b. market niche positioning.
c. user positioning.
d. competitive positioning.
ANS: C DIF: Moderate REF: p. 216 OBJ: 6-4
TYP:Comprehension
Scenario 6-2
Stronger income growth among upscale shoppers is fueling sales at the high end, while slow job growth and higher energy costs are prompting more moderate-income consumers to search of bigger bargains. No retail sector is more squeezed from both sides than the department-store chains, most of which continue to lose sales to other retailers. That has opened the door for financier Edward S. Lampert, 42, whose plans to merge Kmart Holdings and Sears could result in Sears vacating 200 to 300 of its 871 mall-based stores Overriding all this jostling is the biggest question in retail: whether the planned merger of Kmart and Sears will work. The deal would accelerate Sears’ strategy to move off the mall by taking some Kmart sites. The retailers believe, too, that they would benefit from cross-selling some of their proprietary brands, like Kenmore appliances.
(Robert Berner, “Retail’s Unhappy Middle Ground,” Business Week Online, December 24, 2004.)
46.(Scenario 6-2) Sears promotes its Kenmore line with the phrase “The innovative side of Sears.” This phrase should be a clear reflection of its
a. target segment.
b. AIO and VALS.
c. market niche.
d. positioning strategy.
ANS: D DIF: Difficult REF: p. 200 OBJ: 6-1
TYP: Application
47.(Scenario 6-2) New home buyers and home remodelers can be considered part of the same target segment if they
a. respond to the marketing program the same way.
b. share the same demographics.
c. have the same usage pattern.
d. seek the same benefits.
ANS: A DIF: Moderate REF: p. 202 OBJ: 6-2
TYP:Comprehension
48.(Scenario 6-2) Kenmore previously appealed to penny-conscious consumers who were in a position to buy major appliances for the first time. When studying usage patterns, the members of this group are referred to as
a. emergent consumers.
b. novices.
c. nonusers.
d. neophytes.
ANS: A DIF: Moderate REF: p. 203 OBJ: 6-2
TYP: Application
49.(Scenario 6-2) In designing the new line of Kenmore appliances, the new models are to appeal to a more upscale user. If Sears chose to advertise an emotional benefit for the product,the most likely reason would be that
a. appliances are a mature product category, and thus it would be hard to differentiate the product based on functionality.
b. consumers don’t usually consider functional benefits when choosing appliances.
c. the competition is also using emotional benefits.
d. consumers more readily accept emotional benefits.
ANS: A DIF: Moderate REF: p. 217-218 OBJ: 6-5
TYP:Comprehension
50.(Scenario 6-2) One of Sears’s goals in the redesign of the Kenmore line is that it wants to change the way consumers think about appliances. This statement suggests that Sears is following a(n) ____ strategy.
a. STP
b. benefits sought
c. supplemental
d. product differentiation
ANS: D DIF: Moderate REF: p. 201 OBJ: 6-1
TYP:Comprehension
Scenario 6-3
El Sol sunglasses were designed by an avant-garde artist. She said there were no sunglasses out there that she would wear, so she had to design her own. Her sunglasses were worn by a whacked-out bad guy in a blockbuster movie and, because of this, have acquired a cult following among young teens. Print advertisements are visually sparse–nothing more than a still shot from the movie and a logo for the brand.
Eyewake sunglasses were designed by an optician after he realized that conventional sunglasses allowed in certain types of light that promoted eye fatigue. He made 1,000 of his sunglasses and gave 100 of them away to friends and acquaintances. After trying them out for awhile, several of them told him that they really liked them when they had to drive for extended lengths of time. He placed an ad in the back of a tourism magazine, extolling the safety benefit of driving with eyes that weren’t fatigued. He promptly sold all of his remaining glasses.
Kushyspecs sunglasses were developed after research revealed that there was a small group of people who didn’t like wearing sunglasses because most sunglasses left pinch marks on their noses. The company that performed the research developed sunglasses with a soft, cushiony nose piece. Advertisements for Kushyspecs feature the headline “The mark of a good pair of sunglasses is no mark at all.”
51.(Scenario 6-3) Which of these brands of sunglasses was positioned through a product differentiation strategy?
a. El Sol
b. El Sol and Eyewake
c. El Sol and Kushyspecs
d. Eyewake, and Kushyspecs
ANS: D DIF: Difficult REF: p. 201 OBJ: 6-1
TYP: Application
52.(Scenario 6-3) Which of these brands of sunglasses has a target audience selected on the basis of usage patterns and commitment levels?
a. El Sol
b. Eyewake
c. Kushyspecs
d. None of the brands
ANS: D DIF: Difficult REF: p. 202-203 OBJ: 6-2
TYP: Application
53.(Scenario 6-3) Which of these brands of sunglasses uses benefit positioning in its advertisements?
a. El Sol and Eyewake
b. Eyewake
c. Kushyspecs
d. El Sol, Eyewake, and Kushyspecs
ANS: D DIF: Difficult REF: p. 214 OBJ: 6-4
TYP: Application
54.(Scenario 6-3) Which of these brands of sunglasses uses competitive positioning in its advertising?
a. El Sol
b. Eyewake
c. Kushyspecs
d. None of the brands
ANS: D DIF: Difficult REF: p. 216 OBJ: 6-4
TYP: Application
55.(Scenario 6-3) Which of these brands of sunglasses relies on emotional differentiation?
a. El Sol
b. Eyewake
c. Kushyspecs
d. El Sol and Eyewake
ANS: A DIF: Difficult REF: p. 218-219 OBJ: 6-5
TYP: Application
Scenario 6-4
Keds is trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women’s no-frills summer shoe to keep sales moving. However, as of late, competition from Sam & Libby and Easy Spirit brands have been nipping at the heels of Keds. As part of its effort to revitalize the brand, Keds’ advertising agency has developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to Brandweek magazine, “The new ads really go for the heart.” Copy on the first ad includes, “She was my first, I could never tell her how to dress,” with the daughter saying, “She made me feel pretty even when I had braces.”
56.(Scenario 6-4) Why should Keds not define its target segment simply as “women” instead of “mothers and daughters?”
a. It is poorly defined and gives no indication about their orientations as consumers.
b. It is not a niche.
c. Typically, media cannot be selected on demographic criteria.
d. Other companies are established in this segment.
ANS: A DIF: Moderate REF: p. 202 OBJ: 6-2
TYP:Comprehension
57.(Scenario 6-4) Which segmentation technique would provide the most insight for Keds’s advertising agency in the creation of its advertisements?
a. Demographic
b. Usage pattern
c. Geographic
d. Lifestyle
ANS: D DIF: Moderate REF: p. 204 OBJ: 6-2
TYP:Comprehension
58.(Scenario 6-4) For Keds’s positioning to have the best chance at success, it
a. should be targeted at the segment that spends the most on its product.
b. must be internally and externally consistent.
c. must communicate a promise the company can truly deliver on
d. cannot suggest too many different compelling benefits to the user.
ANS: C DIF: Moderate REF: p. 212 OBJ: 6-3
TYP:Comprehension
59.(Scenario 6-4) The theme of the advertisements that Keds is running uses
a. competitive positioning.
b. niche positioning.
c. benefit positioning.
d. user positioning.
ANS: D DIF: Difficult REF: p. 216 OBJ: 6-4
TYP: Application
60.(Scenario 6-4) The term used when a once-viable strategy must be changed to meet new market conditions is
a. progressive STP.
b. repositioning.
c. evolutionary marketing.
d. reconstruction.
ANS: B DIF: Easy REF: p. 217 OBJ: 6-4
TYP: Knowledge
Scenario 6-5
Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and accessories called The Plantatarium. Their initial feeling when they went into business was that virtually everyone was a potential customer for house plants. Subsequent market research conducted for them painted a different picture. This research identified three particularly strong market segments. The first was college students ages 18-24. The next segment was retired seniors ages 65-80. The third segment was professional offices for doctors, accountants, and lawyers. The college students liked houseplants because they dressed up their living spaces. The senior liked them because they became the focus of a hobby. The professionals did not buy them for any other reason than décor.
61.(Scenario 6-5) The Plantatarium promotes itself in different media using the phrase “An out of this world selection of unique plants.” This phrase is a reflection of the firm’s ____.
a. target market
b. positioning strategy
c. VALS profile
d. demographics
ANS: B DIF: Difficult REF: p. 200 OBJ: 6-1
TYP: Application
62.(Scenario 6-5) The owners of this business have decided to carry a great deal of plants that flower throughout the year because most consumers have said they like them for the cheerful feeling they give. This suggests that The Plantatarium is following a ____ strategy.
a. STP
b. benefit segmentation
c. psychographic segmentation
d. positioning
ANS: B DIF: Difficult REF: p. 208 OBJ: 6-2
TYP: Application
63.(Scenario 6-5) The Plantatarium has sent out direct mail offers to consumers in a nearby zip code area who have household incomes of greater than $40,000 a year. This is an illustration of a ____ strategy.
a. geodemographic segmentation
b. demographic segmentation
c. geographic segmentation
d. psychographic segmentation
ANS: A DIF: Moderate REF: p. 205 OBJ: 6-2
TYP: Application
64.(Scenario 6-5) A few customers told the owners of the Plantatarium that they would like to see them carry a few varieties of cactus. The Garretts decided to devote a small corner of their store exclusively to cacti. These customers constitute an example of a ____.
a. demographic segmentation
b. psychographic segmentation
c. market niche
d. positioning
ANS: C DIF: Moderate REF: p. 211 OBJ: 6-3
TYP: Application
65.(Scenario 6-5) In order to capture the ____ in the market, the Plantatarium offers a punch card that rewards buyers with a $10.00 discount each time they have purchased over $150.00 of plants from the store.
a. emergent consumers
b. heavy users
c. variety seekers
d. market niches
ANS: B DIF: Moderate REF: p. 203 OBJ: 6-3
TYP: Application
Scenario 6-6
Madison State University has a reputation for having a powerful intercollegiate coed bowling team. Seating in the campus bowling alley only allows for 400 fans to attend any of their matches. Long lines for seats have formed in the past with many fans leaving disappointed because they could not get a ticket. As a result, the school’s administrators decided to institute a “priority seating” plan where fans would be given access to advance tickets based on the following schedule:
• “Lanemaster Club” – $10,000 annual donation to the bowling program – guaranteed free box seats to any match (100 seats total)
• “Strike Club” – $1,000 annual donation to the bowling program – guaranteed free bleacher seats to any match (100 seats total)
• “Kingpin Club” – participants in local recreation bowling leagues – guaranteed bleacher seats for $10.00 to any match (100 seats total)
• “Pinhead Club” – students who have maintained a 3.9 GPA or better – guaranteed bleacher seats for $1.00 to any match (100 seats total)
66.(Scenario 6-6) Students who have maintained a 3.9 GPA would be described as one of the bowling team’s ____.
a. target segments
b. positioning strategies
c. STPs
d. emergent consumers
ANS: A DIF: Moderate REF: p. 202 OBJ: 6-2
TYP: Application
67.(Scenario 6-6) In marketing material that is used by the team to attract fans, the slogan “Two hours of down-home, wholesome fun” is used to attract ticket-buyers. This philosophy is an example of ____ segmentation.
a. benefit
b. demographic
c. geodemographic
d. niche
ANS: A DIF: Moderate REF: p. 208 OBJ: 6-2
TYP: Application
68.(Scenario 6-6) Each summer, the MSU Athletic Director chooses certain high income neighborhoods to walk through and knock on doors to encourage those people to join the Lanemaster Club. This is an example of a ____ segmentation strategy.
a. psychographic
b. geodemographic
c. demographic
d. geographic
ANS: D DIF: Moderate REF: p. 205 OBJ: 6-2
TYP: Application
69.(Scenario 6-6) There is a group of 30 students that have earned 3.9 GPA or better that have attended every match for nearly four years. These students would best be described as ____.
a. nonusers
b. emergent consumers
c. switchers
d. heavy users
ANS: D DIF: Moderate REF: p. 202 OBJ: 6-2
TYP: Application
70.(Scenario 6-6) With the “priority seating” plan, the bowling team is attempting to encourage bowling aficionados to come watch the team in action. This is an example of ____ segmentation.
a. lifestyle
b. geographic
c. usage
d. demographic
ANS: A DIF: Difficult REF: p. 206 OBJ: 6-3
TYP: Application
ESSAY
1.Using a product that you have used in the past week as an example, explain the difference between segmenting and targeting in the STP approach to marketing.
ANS:
Segmenting is the breaking down of diverse markets into manageable segments. Common ways to approach this are through demographic and geographic segmentation, psychographic and lifestyle segmentation, and benefit segmentation.
Targeting is choosing the specific segments for the focal point of marketing efforts. Often, the largest segment is not chosen as the target.
DIF: Moderate REF: p. 200 OBJ: 6-1 TYP: Application
2.Imus Brothers Coffee, distributed by Fred and his radio disc jockey brother Don Imus’ mail order company, makes ground coffee and has targeted heavy users in the past. However, it is considering switching to college students. It is considering switching target segments even though this group is comprised largely of people who have just started to drink coffee and don’t consume anywhere near as much as the heavy users. What are the disadvantages of the heavy-user strategy? What is the term used to describe the college students the company is considering targeting? What are the advantages of targeting this college student segment?
ANS:
Heavy users may need no encouragement at all to keep consuming. A heavy-user focus takes attention and resources away from those who do need encouragement to purchase the marketer’s brand. Perhaps most importantly, various heavy users may be significantly different in terms of their motivations to consume, their approach to the product, or their image of the product.
The college students are considered emergent consumers. Their preferences are still under development. This target may produce minimal profits in the short term, but there is the opportunity for the long-term gains that accompany brand loyalty.
DIF: Difficult REF: p. 202 OBJ: 6-2 TYP: Application
3.Describe the principle known as niche marketing. What are the competitive advantages of marketing to a niche?
ANS:
Niche marketing is based on the premise that smaller is often better when selecting target segments. By definition, large segments are usually established segments that many companies have identified and targeted previously. However, these large segments may be poorly defined. Niche marketing is the identification and serving of a relatively small group of consumers who have a unique set of needs. Typically, these consumers are willing to pay a premium price to the firm that specializes in meeting those needs. The small size of a market niche often means it would not be profitable for more than one organization to serve it. Thus, when a firm identifies and develops products for market niches, the threat of competitors developing imitative products to attack the niches is reduced.
DIF: Difficult REF: p. 211 OBJ: 6-3 TYP: Comprehension
4.For Kraft, the South Beach deal seems an admission that the diet – – linked with celebrity dieters such as Bill Clinton, Bette Midler and Nicole Kidman — may be a bigger consumer draw currently than the Kraft name. The South Beach Diet book, by cardiologist Arthur Agatston, has sold more than 8 million copies. Among Kraft products that will carry the South Beach diet seal of approval is Jello.
(Bruce Horvitz, “Kraft gets South Beach diet’s seal of approval ; New labels part of deal to keep waist watchers buying,” USAToday.com, September 27, 2004.)
To maximize Jell-O’s chances for success, describe the general characteristics its new position should possess.
ANS:
Effective positioning begins with substance. Jell-O must be able to deliver whatever the position promises. The positioning strategy must be consistent internally. Everything must work in combination to reinforce a distinct perception in the consumer’s mind about what a brand stands for. The position should remain consistent over time. This gives the brand an opportunity to break through advertising clutter and establish what it stands for. Finally, the position must be simple and distinctive. No matter how much substance has been built into a product, it will fail if the consumer doesn’t perceive what the product can do.
DIF: Difficult REF: p. 212-213 OBJ: 6-4 TYP: Application
5.Under what circumstances should a smart marketer turn to a strategy driven by product differentiation as opposed to market segmentation. What is the difference between the two strategies? Which strategy or strategies would support functional differentiation? Which strategy or strategies would support emotional differentiation?
ANS:
In mature markets with established brands, the STP framework may be applied over and over to the point where all relevant market segments are well known and hotly contested by several competitors. In this case, a company should pursue a product differentiation strategy.
Product differentiation takes the offerings of established competitors as its focal point and emphasizes the creation of differences to distinguish a firm’s brand from competitors’ brands. The focus is on making a product unique to avoid head-to-head competition. By contrast, in market segmentation, the focus is on the identification of groups of consumers that may be served in some specific way.
Regardless of whether a strategy is driven by market segmentation principles or product differentiation principles, both functional and emotional differentiation can be used effectively.
DIF: Moderate REF: p. 220 OBJ: 6-5 TYP: Comprehension

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