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Essentials of Marketing 15th Edition by William Perreault Jr – Test Bank
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Chapter 02 Marketing Strategy Planning Answer Key
True / False Questions
| 1. | Planning, implementation, and control are basic jobs of all managers.
Answer: TRUE Feedback: In the marketing management process, planning, implementation, and control are basic jobs of all marketing managers. |
| AACSB: Analytical Thinking AACSB: Reflective Thinking Blooms: Remember Learning Objective: 2-1 Level of Difficulty: 1 Easy Topic: The Management Job in Marketing
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| 2. | Controlling the marketing plan is the first step of the marketing management process.
Answer: FALSE Feedback: Controlling marketing plans is the final step of the marketing management process. It involves measuring results and evaluating progress of plans after they have been devised and implemented. |
| AACSB: Reflective Thinking Blooms: Understand Learning Objective: 2-1 Level of Difficulty: 1 Easy Topic: The Management Job in Marketing |
| 3. | The three basic jobs in the marketing management process are planning, implementation, and control.
Answer: TRUE Feedback: The marketing management process is the process of (1) planning marketing activities, (2) directing the implementation of the plans, and (3) controlling these plans. |
| AACSB: Analytical Thinking AACSB: Reflective Thinking Blooms: Remember Learning Objective: 2-1 Level of Difficulty: 1 Easy Topic: The Management Job in Marketing |
| 4. | The marketing management process consists of (1) planning marketing activities, (2) directing the implementation of the plans, and (3) controlling these plans.
Answer: TRUE Feedback: The marketing management process is the process of (1) planning marketing activities, (2) directing the implementation of the plans, and (3) controlling these plans. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-1 Level of Difficulty: 1 Easy Topic: The Management Job in Marketing
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| 5. | Strategic planning is a top management job that includes planning only for marketing.
Answer: FALSE Feedback: Strategic planning includes planning not only for marketing but also for production, finance, human resources, and other areas. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-1 Level of Difficulty: 1 Easy Topic: The Management Job in Marketing |
| 6. | Strategic planning is the managerial process of developing and maintaining a match between an organization’s resources and its market opportunities.
Answer: TRUE Feedback: Strategic planning is the managerial process of developing and maintaining a match between an organization’s resources and its market opportunities. It includes planning not only for marketing but also for production, finance, human resources, and other areas. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-1 Level of Difficulty: 1 Easy Topic: The Management Job in Marketing
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| 7. | Strategic (management) planning is a managerial process of developing and maintaining a match between the resources of the production department and its product opportunities.
Answer: FALSE Feedback: Strategic planning is the managerial process of developing and maintaining a match between an organization’s resources and its market opportunities. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-1 Level of Difficulty: 1 Easy Topic: The Management Job in Marketing |
| 8. | Finding attractive opportunities and developing profitable marketing strategies are the tasks included in the marketing manager’s marketing strategy planning job.
Answer: TRUE Feedback: The marketing manager’s marketing strategy planning job involves finding attractive opportunities and developing profitable marketing strategies. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-2 Level of Difficulty: 1 Easy Topic: What is a Marketing Strategy? |
| 9. | Marketing strategy planning is the process of deciding how best to sell the products the firm produces.
Answer: FALSE Feedback: Marketing strategy planning means finding attractive opportunities and developing profitable marketing strategies. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-2 Level of Difficulty: 1 Easy Topic: What is a Marketing Strategy?
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| 10. | A marketing strategy specifies a target market and a related marketing mix.
Answer: TRUE Feedback: A marketing strategy specifies a target market and a related marketing mix. It is a broad view of what a firm will do in some market. |
| AACSB: Analytical Thinking
Blooms: Remember |
| 11. | A marketing strategy is composed of two interrelated parts-a target market and a marketing mix.
Answer: TRUE Feedback: The two interrelated parts that make up a marketing mix are (1) target market, and (2) marketing mix. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-2 Level of Difficulty: 1 Easy Topic: What is a Marketing Strategy? |
| 12. | A marketing strategy is composed of two interrelated parts-planning and implementation.
Answer: FALSE Feedback: A marketing strategy is composed of two interrelated parts-a target market and a marketing mix. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-2 Level of Difficulty: 1 Easy Topic: What is a Marketing Strategy? |
| 13. | The two parts of a marketing strategy are an attractive opportunity and a target market.
Answer: FALSE Feedback: A marketing strategy is composed of two interrelated parts-a target market and a marketing mix. |
| AACSB: Analytical Thinking
Blooms: Remember
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| 14. | A target market consists of a group of consumers who are usually quite different.
Answer: FALSE Feedback: A target market consists of a fairly homogeneous group of customers. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-2 Level of Difficulty: 1 Easy Topic: What is a Marketing Strategy? |
| 15. | A marketing mix consists of the uncontrollable variables which a company puts together to satisfy a target market.
Answer: FALSE Feedback: A marketing mix is the set of controllable variables that a company puts together to satisfy a target group. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-2 Level of Difficulty: 1 Easy Topic: What is a Marketing Strategy?
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| 16. | Target marketing aims a marketing mix at some specific target customers.
Answer: TRUE Feedback: Target marketing aims a marketing mix at some specific target customers. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-3 Level of Difficulty: 1 Easy Topic: Selecting a Market-Oriented Strategy is Target Marketing |
| 17. | Mass marketing means focusing on some specific customers, as opposed to assuming that everyone is the same and will want whatever the firm offers.
Answer: FALSE Feedback: Mass marketing vaguely aims at everyone with the same marketing mix. It assumes that everyone is the same—and it considers everyone a potential customer. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-3 Level of Difficulty: 1 Easy Topic: Selecting a Market-Oriented Strategy is Target Marketing
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| 18. | The mass marketing approach is more production-oriented than marketing-oriented.
Answer: TRUE Feedback: Mass marketing is the typical production-oriented approach that vaguely aims at everyone with the same marketing mix. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-3 Level of Difficulty: 1 Easy Topic: Selecting a Market-Oriented Strategy is Target Marketing |
| 19. | The terms mass marketing and mass marketers mean the same thing.
Answer: FALSE Feedback: Mass marketing means trying to sell to everyone, whereas mass marketers aim at clearly defined target markets. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-3 Level of Difficulty: 2 Medium Topic: Selecting a Market-Oriented Strategy is Target Marketing
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| 20. | “Mass marketers” like Target usually try to aim at clearly defined target markets.
Answer: TRUE Feedback: Unlike mass marketing, which aims at trying to sell to everyone, mass marketers aim at clearly defined target markets. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-3 Level of Difficulty: 1 Easy Topic: Selecting a Market-Oriented Strategy is Target Marketing
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| 21. | The problem with target marketing is that it limits the firm to small market segments.
Answer: FALSE Feedback: Target marketing is not limited to small market segments, only to fairly homogeneous ones. |
| AACSB: Analytical Thinking Blooms: Understand Learning Objective: 2-3 Level of Difficulty: 1 Easy Topic: Selecting a Market-Oriented Strategy is Target Marketing |
| 22. | Potential customers are all alike.
Answer: FALSE Feedback: Mass marketing assumes that everyone is the same and considers everyone a potential customer. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-3 Learning Objective: 2-7 Level of Difficulty: 1 Easy Topic: Marketing Strategy Planning Highlights Opportunities Topic: Selecting a Market-Oriented Strategy is Target Marketing
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| 24. | The four “Ps” are: Product, Promotion, Price, and Personnel.
Answer: FALSE Feedback: The four “Ps” in a firm’s marketing mix are: Product, Price, Place, and Promotion. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy |
| 25. | The “four Ps” of the marketing mix are: Product, Position, Promotion, and Price.
Answer: FALSE Feedback: The four “Ps” in a firm’s marketing mix are: Product, Price, Place, and Promotion. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets |
| 26. | The “four Ps” of the marketing mix are: People, Products, Price, and Promotion.
Answer: FALSE Feedback: The four “Ps” in a firm’s marketing mix are: Product, Price, Place, and Promotion. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets |
| 27. | Product, Place, Promotion, and Price are the four major variables (decision areas) in a firm’s marketing mix.
Answer: TRUE Feedback: Product, Place, Promotion, and Price are the four important variables in a firm’s marketing mix. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets |
| 28. | The customer is a part of the marketing mix and should be the target of all marketing efforts.
Answer: FALSE Feedback: The customer is the target of all marketing efforts, and is not part of the marketing mix. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 2 Medium Topic: Developing Marketing Mixes for Target Markets
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| 29. | Although the customer should be the target of all marketing efforts, customers are not part of a marketing mix.
Answer: TRUE Feedback: The customer is not part of the marketing mix, but instead the focus of all marketing efforts. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets |
| 30. | The customer should not be considered part of a “marketing mix.”
Answer: TRUE Feedback: The customer is not part of the marketing mix, but instead the focus of all marketing efforts. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets |
| 31. | The Product area is concerned with developing the right physical good, service, or blend of both for the target market.
Answer: TRUE Feedback: The Product area is concerned with developing the right product for the target market. This offering may involve a physical good, a service, or a blend of both. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets
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| 32. | According to the text, a firm that sells a service rather than a physical good does not have a product.
Answer: FALSE Feedback: The Product area is concerned with developing the right product, which may involve a physical good, a service, or both. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets |
| 33. | The Product area of the marketing mix may involve a service and/or a physical good, which satisfies some customers’ needs.
Answer: TRUE Feedback: The Product area is concerned with developing the right product, which may involve a physical good, a service, or both. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets |
| 34. | The Place decisions are concerned with getting the right product to the target market at the right time.
Answer: TRUE Feedback: Place is concerned with all the decisions involved in getting the right product to the target market at the right time. A product isn’t much good to a customer if it isn’t available when and where it’s wanted. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets
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| 35. | Any series of firms (or individuals) from producer to final user or consumer is a channel of distribution.
Answer: TRUE Feedback: A channel of distribution is any series of firms (or individuals) that participate in the flow of products from producer to final user or consumer. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets |
| 36. | A channel of distribution is any series of firms or individuals that participate in the flow of products from producer to final user or consumer.
Answer: TRUE Feedback: A channel of distribution is any series of firms (or individuals) that participate in the flow of products from producer to final user or consumer. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets |
| 37. | A channel of distribution must include an intermediary.
Answer: FALSE Feedback: A channel of distribution is any series of firms (or individuals) that participate in the flow of products from producer to final user or consumer. It may or may not include an intermediary depending on the industry and type of products offered. |
| AACSB: Analytical Thinking AACSB: Reflective Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets |
| 38. | A channel of distribution must include several kinds of intermediaries and collaborators.
Answer: FALSE Feedback: A channel of distribution is any series of firms (or individuals) that participate in the flow of products from producer to final user or consumer. It may or may not include an intermediary depending on the industry and type of products offered. |
| AACSB: Analytical Thinking
Blooms: Remember |
| 39. | Personal selling, mass selling, and sales promotion are all included in the Promotion area of the marketing mix.
Answer: TRUE Feedback: Promotion includes personal selling, mass selling, and sales promotion. It is the marketing manager’s job to blend these methods of communication. |
| AACSB: Analytical Thinking AACSB: Reflective Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets |
| 40. | Promotion is composed of personal selling, advertising, publicity, and sales promotion.
Answer: TRUE Feedback: Promotion includes personal selling, mass selling (advertising, and publicity), and sales promotion. It is the marketing manager’s job to blend these methods of communication. |
| AACSB: Analytical Thinking AACSB: Reflective Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets |
| 41. | Personal selling involves direct personal communication to get the sale, but personal attention is seldom required after the sale.
Answer: FALSE Feedback: Personal selling involves direct spoken communication between sellers and potential customers. Such sales often require personal attention even after the sale is made. |
| AACSB: Analytical Thinking AACSB: Reflective Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets |
| 42. | Customer service is needed when a customer wants the seller to resolve a problem with a purchase.
Answer: TRUE Feedback: Customer service is personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets |
| 43. | Advertising is any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor.
Answer: TRUE Feedback: Advertising refers to any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor. |
| AACSB: Reflective ThinkingBlooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets |
| 44. | Sales promotion can involve point-of-purchase materials, store signs, contests, catalogs, and circulars.
Answer: TRUE Feedback: Sales promotion refers to those promotion activities that stimulate interest, trial, or purchase by final customers or others in the channel. This includes use of coupons, point-of-purchase materials, samples, signs, contests, events, catalogs, novelties, and circulars. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets
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| 45. | Sales promotion refers to those promotion activities-other than advertising, publicity, and personal selling-that stimulate interest, trial, or purchase by final customers or others in the channel.
Answer: TRUE Feedback: Sales promotion refers to those promotion activities other than advertising, publicity, and personal selling that stimulate interest, trial, or purchase by final customers or others in the channel. |
| AACSB: Analytical Thinking AACSB: Reflective Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 2 Medium Topic: Developing Marketing Mixes for Target Markets |
| 46. | Personal selling and advertising are both forms of sales promotion.
Answer: FALSE Feedback: Sales promotion refers to those promotion activities other than advertising, publicity, and personal selling those stimulate interest, trial, or purchase. Therefore, neither personal selling nor advertising is a form of sales promotion. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets
|
| 47. | According to the text, Promotion is the most important of the “four Ps.”
Answer: FALSE Feedback: No single element of the marketing mix is more important another. All four are equally important. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets |
| 48. | Price is the most important of the four Ps.
Answer: FALSE Feedback: No single element of the marketing mix is more important than another. All four are equally important. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets |
| 49. | In general, no single element of the “four Ps” is more important than the others.
Answer: TRUE Feedback: No single element of the marketing mix is more important than the other. All four are equally important. |
| AACSB: Analytical Thinking Blooms: Create Learning Objective: 2-4 Level of Difficulty: 1 Easy Topic: Developing Marketing Mixes for Target Markets |
Chapter 04 Focusing Marketing Strategy with Segmentation and Positioning Answer Key
True / False Questions
| 1. | A market is a group of two or more sellers who offer substitute ways of satisfying customer needs.
Answer: FALSE Feedback: A market is a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services—that is, ways of satisfying those needs. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 4-1 Level of Difficulty: 1 Easy Topic: Search for Opportunities can begin by Understanding Markets
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| 2. | A market is a group of competitors selling similar products.
Answer: FALSE Feedback: A market is a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 4-1 Level of Difficulty: 1 Easy |
| 3. | The main difference between a “product-market” and a “generic market” is whether customer needs are similar or different.
Answer: FALSE Feedback: A generic market is a market with broadly similar needs—and sellers offering various, often diverse, ways of satisfying those needs. In contrast, a product-market is a market with very similar needs and sellers offering various close substitute ways of satisfying those needs. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 4-1 Level of Difficulty: 1 Easy Topic: Search for Opportunities can begin by Understanding Markets |
| 4. | A generic market description looks at market broadly and from a customer’s viewpoint.
Answer: TRUE Feedback: A generic market description looks at markets broadly and from a customer’s viewpoint. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 4-1 Level of Difficulty: 1 Easy Topic: Search for Opportunities can begin by Understanding Markets |
| 5. | A “generic market” is a market in which sellers offer substitute products which are so similar that customers see them as “all the same.”
Answer: FALSE Feedback: A generic market is a market with broadly similar needs—and sellers offering various, often diverse, ways of satisfying those needs. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 4-1 Level of Difficulty: 1 Easy Topic: Search for Opportunities can begin by Understanding Markets |
| 6. | A product-market is a market with broadly similar needs-and sellers offering various, often diverse, ways of satisfying those needs.
Answer: FALSE Feedback: A product-market is a market with very similar needs and sellers offering various close substitute ways of satisfying those needs. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 4-1 Level of Difficulty: 1 Easy Topic: Search for Opportunities can begin by Understanding Markets |
| 7. | A firm’s “relevant market for finding opportunities” should be bigger than the present product-market but not so large that it couldn’t expand and still be an important competitor.
Answer: TRUE Feedback: The relevant market for finding opportunities should be bigger than the firm’s present product-market—but not so big that the firm couldn’t expand and be an important competitor. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 4-1 Level of Difficulty: 1 Easy Topic: Search for Opportunities can begin by Understanding Markets |
| 8. | Product type describes the goods and/or services that customers want.
Answer: TRUE Feedback: Product type describes the goods and/or services that customers want. Sometimes the product type is strictly a physical good or strictly a service. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 4-1 Level of Difficulty: 1 Easy |
| 9. | The definition of a product-market includes a product type while the definition of a generic market does not include a product type.
Answer: TRUE Feedback: Product-market definition includes product type that describes the goods and/or services that customers want whereas a generic market definition doesn’t include any product-type terms. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 4-1 Level of Difficulty: 1 Easy Topic: Naming Product-Markets and Generic Markets |
| 10. | A generic market description includes customer needs and product-type terms.
Answer: FALSE Feedback: A generic market description doesn’t include any product-type terms. It consists of only three parts of the product-market definition—without the product type. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 4-1 Level of Difficulty: 2 Medium |
| 11. | Effective market segmentation is a two-step process that starts with naming broad product-markets and then goes on to segmenting these broad product-markets into more homogeneous submarkets.
Answer: TRUE Feedback: Market segmentation is a two-step process of (1) naming broad product-markets and (2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes. |
| AACSB: Analytical Thinking AACSB: Reflective Thinking Blooms: Remember Learning Objective: 4-2 Level of Difficulty: 1 Easy Topic: Market Segmentation Defines Possible Target Markets |
| 12. | Market segmentation is a two-step process that involves naming broad product-markets and segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.
Answer: TRUE Feedback: Market segmentation is a two-step process of (1) naming broad product-markets and (2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-2 Level of Difficulty: 1 Easy |
| 13. | Using one or two demographic dimensions to describe market segments usually does not provide enough detail for planning a marketing strategy.
Answer: TRUE Feedback: Market segmentation is usually too complex to be explained in terms of just one or two demographic characteristics. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-2 Level of Difficulty: 1 Easy Topic: Market Segmentation Defines Possible Target Markets |
| 14. | Market segmentation says that target marketers should develop one good marketing mix aimed at a fairly large market.
Answer: FALSE Feedback: Market segmentation deals with segmenting broad product-markets in order to select target markets and develop suitable marketing mixes. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 4-2 Level of Difficulty: 1 Easy Topic: Market Segmentation Defines Possible Target Markets |
| 15. | Marketing-oriented managers think of segmenting as a disaggregating process.
Answer: FALSE Feedback: Marketing-oriented managers think of segmenting as an aggregating process. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-2 Level of Difficulty: 2 Medium |
| 16. | Marketing-oriented managers see segmenting as a process of aggregating people with similar needs into a group.
Answer: TRUE Feedback: Marketing-oriented managers think of segmenting as an aggregating process—clustering people with similar needs into a “market segment.” |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 4-2 Level of Difficulty: 1 Easy Topic: Market Segmentation Defines Possible Target Markets |
| 17. | Ideally, segmenters should start with the idea that each person is “one of a kind” and can be described by a special set of dimensions that may be used to aggregate similar customers together.
Answer: TRUE Feedback: Segmenters start with the idea that each person is one of a kind but that it may be possible to aggregate some similar people into a product-market. Segmenters see each of these one-of-a-kind people as having a unique set of dimensions. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-2 Level of Difficulty: 1 Easy Topic: Market Segmentation Defines Possible Target Markets |
| 18. | One of the difficult things about segmenting is that not every customer will neatly fit into some market segment.
Answer: TRUE Feedback: The difficulty with segmenting is that some potential customers just don’t fit neatly into market segments. Forcing them into one of the groups would make these segments more heterogeneous and harder to please. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-2 Level of Difficulty: 1 Easy Topic: Market Segmentation Defines Possible Target Markets |
| 19. | The correct number of submarkets in a broad product-market is usually obvious, so the likelihood of managerial error is small.
Answer: FALSE Feedback: Under broad product-market, a segmenter may aggregate submarkets into arbitrary numbers which are relatively homogeneous. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-2 Level of Difficulty: 1 Easy |
| 20. | A “good” market segment should be composed of people who are as homogeneous as possible with respect to their likely responses to marketing mix variables.
Answer: TRUE Feedback: The customers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions. |
| AACSB: Reflective Thinking
Blooms: Remember |
| 21. | “Homogeneous within” means that the customers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions.
Answer: TRUE Feedback: The customers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-2 Level of Difficulty: 1 Easy Topic: Market Segmentation Defines Possible Target Markets |
| 22. | “Good” market segments should be homogeneous (similar) within, heterogeneous (different) between, substantial, and operational.
Answer: TRUE Feedback: “Good” market segments meet the following criteria: Homogeneous (similar) within, Heterogeneous (different) between, Substantial, and Operational. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-2 Level of Difficulty: 1 Easy Topic: Market Segmentation Defines Possible Target Markets |
| 23. | “Good” market segments should be heterogeneous within and homogeneous between.
Answer: FALSE Feedback: “Good” market segments meet the following criteria: Homogeneous (similar) within, Heterogeneous (different) between, Substantial, and Operational. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-2 Level of Difficulty: 1 Easy |
| 24. | If a product-market segment is “homogeneous within,” it is called a “substantial” target market.
Answer: FALSE Feedback: If a product-market segment is “homogeneous within,” it is called a “Good” market segment. “Substantial” means that the segment is big enough to be profitable. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-2 Level of Difficulty: 1 Easy Topic: Market Segmentation Defines Possible Target Markets |
| 25. | A “substantial” market segment is one which is big enough to be profitable.
Answer: TRUE Feedback: A Substantial market segment is one which should be big enough to be profitable. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-2 Level of Difficulty: 1 Easy |
| 26. | Saying that a market segment is “substantial” means that it contains customers from a variety of demographic variables.
Answer: FALSE Feedback: A Substantial market segment is one which should be big enough to be profitable. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-2 Level of Difficulty: 1 Easy |
| 27. | Planning Place and Promotion elements of a marketing mix is especially difficult if the dimensions of a product-market are not operational.
Answer: TRUE Feedback: Operational segment dimensions should be useful for identifying customers and deciding on marketing mix variables like place and promotion. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-2 Level of Difficulty: 1 Easy Topic: Market Segmentation Defines Possible Target Markets |
| 28. | A product-market segment is “operational” if it is big enough to be profitable to the firm.
Answer: FALSE Feedback: A product-market segment is “substantial” if it is big enough to be profitable to the firm. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-2 Level of Difficulty: 1 Easy |
| 29. | A personality trait like moodiness is a good example of an “operational” segmenting dimension.
Answer: FALSE Feedback: Moodiness might be related in some way to purchases, but it would not be a useful dimension for segmenting. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-2 Level of Difficulty: 1 Easy Topic: Market Segmentation Defines Possible Target Markets |
| 30. | With the “multiple target market approach” the marketer combines two or more homogeneous submarkets into one larger target market as a basis for one strategy.
Answer: FALSE Feedback: The multiple target market approach deals with segmenting the market and choosing two or more segments, and then treating each as a separate target market needing a different marketing mix. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-3 Level of Difficulty: 1 Easy Topic: Market Segmentation Defines Possible Target Markets |
| 31. | The combined target market approach involves segmenting the market and choosing two or more segments, then treating each as a separate target market needing a different marketing mix.
Answer: FALSE Feedback: The combined target market approach involves combining two or more submarkets into one larger target market as a basis for one strategy. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-3 Level of Difficulty: 2 Medium Topic: Market Segmentation Defines Possible Target Markets |
| 32. | A manager who aggregates all potential customers into a single product-market segment is likely to find that the segment is not homogeneous.
Answer: TRUE Feedback: Aggregating all potential customers into a single product-market segment is dangerous because the more aggregating the less homogeneous the customers in the single segment. Generally, it is safer for a firm to try to provide a smaller segment that is very homogeneous with superior value and thus satisfy it better. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-3 Level of Difficulty: 1 Easy Topic: Target Marketers Aim at Specific Markets |
| 33. | The more heterogeneous a firm’s target market becomes, the more likely the firm will see competition from an innovative segmenter.
Answer: TRUE Feedback: A segmenter wants to aggregate individual customers into some workable number of homogeneous (not heterogeneous) target markets so it can target them more successfully and avoid competition. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 4-3 Level of Difficulty: 1 Easy Topic: Target Marketers Aim at Specific Markets |
| 34. | A segmenter is more likely than a combiner to really satisfy a target market and build such a close relationship with customers that it faces no real competition.
Answer: TRUE Feedback: A segmenter that really satisfies the target market can often build such a close relationship with customers that it faces no real competition. |
| AACSB: Reflective Thinking Blooms: Understand Learning Objective: 4-3 Level of Difficulty: 2 Medium |
| 35. | A profit-oriented firm will usually want to continue aggregating potential customers into larger submarkets until every consumer fits neatly into some segment.
Answer: FALSE Feedback: Some people are simply too unique to be catered to and may have to be ignored. A profit-oriented firm will continue aggregating potential customers until the segment is substantial (that is, the segment is big enough to be profitable). |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 4-3 Level of Difficulty: 1 Easy Topic: Target Marketers Aim at Specific Markets |
| 36. | Making a very specific marketing mix for a particular group is always less profitable than a more general marketing mix that appeals to a larger segment.
Answer: FALSE Feedback: A segmenter that offers a marketing mix precisely matched to the needs of the target market can often charge a higher price that produces higher profits. Customers are willing to pay a higher price because the whole marketing mix provides better customer value. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 4-3 Level of Difficulty: 2 Medium Topic: Target Marketers Aim at Specific Markets |
| 37. | Cost considerations usually favor more aggregating and larger market segments, but smaller segments may be required to satisfy needs more exactly.
Answer: TRUE Feedback: Cost considerations usually encourage more aggregating and favor combining as costs often drop due to economies of scale. On the other hand, many customers prefer to have their needs satisfied more exactly—and will be more satisfied by a segmenter that develops a marketing mix that more closely matches their needs. |
| AACSB: Reflective Thinking Blooms: Remember Learning Objective: 4-3 Level of Difficulty: 1 Easy Topic: Target Marketers Aim at Specific Markets |
| 38. | Dimensions that should be considered when segmenting consumer markets are: geographic location and other demographic characteristics, behavioral needs, urgency to get needs satisfied, and willingness to compare and shop.
Answer: TRUE Feedback: Potential Target Market Dimensions include: (1) Behavioral needs and attitudes; (2) Urgency to get needs and desires satisfied and willingness to seek information, compare, and shop; and (3) Geographic location and other demographic characteristics. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-4 Level of Difficulty: 1 Easy Topic: What Dimensions are Used to Segment Markets? |
| 39. | When segmenting markets, one should look at geographic location and demographic characteristics as well as customers’ desire and willingness to compare and shop, but behavioral needs aren’t important for this purpose.
Answer: FALSE Feedback: Behavioral needs are important. Potential Target Market Dimensions include: (1) Behavioral needs and attitudes; (2) Urgency to get needs and desires satisfied and willingness to seek information, compare, and shop; and (3) Geographic location and other demographic characteristics. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-4 Level of Difficulty: 1 Easy |
| 40. | Segmenting a broad product-market usually requires using several segmenting dimensions at the same time.
Answer: TRUE Feedback: Regardless of whether customers are final consumers or organizations, segmenting a broad product-market usually requires using several different dimensions at the same time. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-4 Level of Difficulty: 1 Easy |
| 41. | Market segmentation applies only to consumer goods and services; it cannot be applied to business products.
Answer: FALSE Feedback: Market segmentation can be applied to business products. Exhibit 4-9 shows the dimensions for segments markets when the customers are businesses, government agencies, or other types of organizations. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-4 Level of Difficulty: 1 Easy Topic: What Dimensions are Used to Segment Markets? |
| 42. | Qualifying dimensions are those that actually affect the customer’s purchase of a specific brand in a product-market. Answer: FALSE Feedback: Qualifying dimensions are those relevant to including a customer type in a product-market. |
| AACSB: Analytical Thinking Blooms: Remember Learning Objective: 4-4 Level of Difficulty: 2 Medium Topic: What Dimensions are Used to Segment Markets? |
| 43. | A determining dimension for segmenting markets actually affects the purchase of a specific brand in a product-market.
Answer: TRUE Feedback: Determining dimensions are those that actually affect the customer’s purchase of a specific product or brand in a product-market. |
| AACSB: Analytical Thinking
Blooms: Remember |
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