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Essentials of Marketing 16th Edition – Test Bank
Sample Questions
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Chapter 2 Marketing Strategy Planning
1) Planning, implementation, and control are basic jobs of all managers.
Answer: TRUE
Explanation: In the marketing management process, planning, implementation, and control are basic jobs of all marketing managers.
Difficulty: 1 Easy
Topic: The Management Job in Marketing
Learning Objective: 02-01 understand what a marketing manager does.
Bloom’s: Remember
AACSB: Analytical Thinking; Reflective Thinking
Accessibility: Keyboard Navigation
2) Controlling the marketing plan is the first step of the marketing management process.
Answer: FALSE
Explanation: 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.
Difficulty: 1 Easy
Topic: The Management Job in Marketing
Learning Objective: 02-01 understand what a marketing manager does.
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
3) The three basic jobs in the marketing management process are planning, implementation, and control.
Answer: TRUE
Explanation: The marketing management process is the process of (1) planning marketing activities, (2) directing the implementation of the plans, and (3) controlling these plans.
Difficulty: 1 Easy
Topic: The Management Job in Marketing
Learning Objective: 02-01 understand what a marketing manager does.
Bloom’s: Remember
AACSB: Analytical Thinking; Reflective Thinking
Accessibility: Keyboard Navigation
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
Explanation: The marketing management process is the process of (1) planning marketing activities, (2) directing the implementation of the plans, and (3) controlling these plans.
Difficulty: 1 Easy
Topic: The Management Job in Marketing
Learning Objective: 02-01 understand what a marketing manager does.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) Strategic planning is a top management job that includes planning only for marketing.
Answer: FALSE
Explanation: Strategic planning includes planning not only for marketing but also for production, finance, human resources, and other areas.
Difficulty: 1 Easy
Topic: The Management Job in Marketing
Learning Objective: 02-01 understand what a marketing manager does.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
6) Strategic planning is the managerial process of developing and maintaining a match between an organization’s resources and its market opportunities.
Answer: TRUE
Explanation: 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.
Difficulty: 1 Easy
Topic: The Management Job in Marketing
Learning Objective: 02-01 understand what a marketing manager does.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
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
Explanation: Strategic planning is the managerial process of developing and maintaining a match between an organization’s resources and its market opportunities.
Difficulty: 1 Easy
Topic: The Management Job in Marketing
Learning Objective: 02-01 understand what a marketing manager does.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
8) Finding attractive opportunities and developing profitable marketing strategies are tasks included in the marketing manager’s marketing strategy planning job.
Answer: TRUE
Explanation: The marketing manager’s marketing strategy planning job involves finding attractive opportunities and developing profitable marketing strategies.
Difficulty: 1 Easy
Topic: What is a Marketing Strategy?
Learning Objective: 02-02 know what marketing strategy planning is—and why it is the focus of this book.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
9) Marketing strategy planning is the process of deciding how best to sell the products the firm produces.
Answer: FALSE
Explanation: Marketing strategy planning means finding attractive opportunities and developing profitable marketing strategies.
Difficulty: 1 Easy
Topic: What is a Marketing Strategy?
Learning Objective: 02-02 know what marketing strategy planning is—and why it is the focus of this book.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
10) A marketing strategy specifies a target market and a related marketing mix.
Answer: TRUE
Explanation: 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.
Difficulty: 1 Easy
Topic: What is a Marketing Strategy?
Learning Objective: 02-02 know what marketing strategy planning is—and why it is the focus of this book.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
11) A marketing strategy is composed of two interrelated parts—a target market and a marketing mix.
Answer: TRUE
Explanation: The two interrelated parts that make up a marketing mix are (1) target market, and (2) marketing mix.
Difficulty: 1 Easy
Topic: What is a Marketing Strategy?
Learning Objective: 02-02 know what marketing strategy planning is—and why it is the focus of this book.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
12) A marketing strategy is composed of two interrelated parts—planning and implementation.
Answer: FALSE
Explanation: A marketing strategy is composed of two interrelated parts—a target market and a marketing mix.
Difficulty: 1 Easy
Topic: What is a Marketing Strategy?
Learning Objective: 02-02 know what marketing strategy planning is—and why it is the focus of this book.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
13) The two parts of a marketing strategy are an attractive opportunity and a target market.
Answer: FALSE
Explanation: A marketing strategy is composed of two interrelated parts—a target market and a marketing mix.
Difficulty: 1 Easy
Topic: What is a Marketing Strategy?
Learning Objective: 02-02 know what marketing strategy planning is—and why it is the focus of this book.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
14) A target market consists of a group of consumers who are usually quite different.
Answer: FALSE
Explanation: A target market consists of a fairly homogeneous group of customers.
Difficulty: 1 Easy
Topic: What is a Marketing Strategy?
Learning Objective: 02-02 know what marketing strategy planning is—and why it is the focus of this book.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
15) A marketing mix consists of the uncontrollable variables that a company puts together to satisfy a target market.
Answer: FALSE
Explanation: A marketing mix is the set of controllable variables that a company puts together to satisfy a target group.
Difficulty: 1 Easy
Topic: What is a Marketing Strategy?
Learning Objective: 02-02 know what marketing strategy planning is—and why it is the focus of this book.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
16) Target marketing aims a marketing mix at some specific target customers.
Answer: TRUE
Explanation: Target marketing aims a marketing mix at some specific target customers.
Difficulty: 1 Easy
Topic: Selecting a Market-Oriented Strategy is Target Marketing
Learning Objective: 02-03 understand target marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
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
Explanation: 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.
Difficulty: 1 Easy
Topic: Selecting a Market-Oriented Strategy is Target Marketing
Learning Objective: 02-03 understand target marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
18) The mass marketing approach is more production-oriented than marketing-oriented.
Answer: TRUE
Explanation: Mass marketing is the typical production-oriented approach that vaguely aims at everyone with the same marketing mix.
Difficulty: 1 Easy
Topic: Selecting a Market-Oriented Strategy is Target Marketing
Learning Objective: 02-03 understand target marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
19) The terms mass marketing and mass marketers mean the same thing.
Answer: FALSE
Explanation: Mass marketing means trying to sell to everyone, whereas mass marketers aim at clearly defined target markets.
Difficulty: 2 Medium
Topic: Selecting a Market-Oriented Strategy is Target Marketing
Learning Objective: 02-03 understand target marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
20) “Mass marketers” like Target usually try to aim at clearly defined target markets.
Answer: TRUE
Explanation: Unlike mass marketing, which aims at trying to sell to everyone, mass marketers aim at clearly defined target markets.
Difficulty: 1 Easy
Topic: Selecting a Market-Oriented Strategy is Target Marketing
Learning Objective: 02-03 understand target marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
21) The problem with target marketing is that it limits the firm to small market segments.
Answer: FALSE
Explanation: Target marketing is not limited to small market segments, only to fairly homogeneous ones.
Difficulty: 1 Easy
Topic: Selecting a Market-Oriented Strategy is Target Marketing
Learning Objective: 02-03 understand target marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
22) Potential customers are all alike.
Answer: FALSE
Explanation: Mass marketing assumes that everyone is the same and considers everyone a potential customer.
Difficulty: 1 Easy
Topic: Selecting a Market-Oriented Strategy is Target Marketing; Marketing Strategy Planning Highlights Opportunities
Learning Objective: 02-03 understand target marketing.; 02-07 be familiar with the text’s framework for marketing strategy planning.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
23) The basic reason to focus on some specific target customers instead of all possible customers is so that managers can develop a marketing mix that satisfies those customers’ specific needs better than they are satisfied by some other firm.
Answer: TRUE
Explanation: Since everyone is different, marketers need to focus efforts on some specific target customers instead of all customers. Target marketing allows marketers to develop a marketing mix that satisfies the needs of select consumers.
Difficulty: 1 Easy
Topic: Selecting a Market-Oriented Strategy is Target Marketing
Learning Objective: 02-03 understand target marketing.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
24) The “Four Ps” are Product, Promotion, Price, and Personnel.
Answer: FALSE
Explanation: The “Four Ps” in a firm’s marketing mix are Product, Price, Place, and Promotion.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
25) The “Four Ps” of the marketing mix are Product, Position, Promotion, and Price.
Answer: FALSE
Explanation: The “Four Ps” in a firm’s marketing mix are Product, Price, Place, and Promotion.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
26) The “Four Ps” of the marketing mix are People, Products, Price, and Promotion.
Answer: FALSE
Explanation: The “Four Ps” in a firm’s marketing mix are Product, Price, Place, and Promotion.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
27) Product, Place, Promotion, and Price are the four major variables (decision areas) in a firm’s marketing mix.
Answer: TRUE
Explanation: Product, Place, Promotion, and Price are the four important variables in a firm’s marketing mix.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
28) The customer is a part of the marketing mix and should be the target of all marketing efforts.
Answer: FALSE
Explanation: The customer is the target of all marketing efforts and is not part of the marketing mix.
Difficulty: 2 Medium
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
29) Although the customer should be the target of all marketing efforts, customers are not part of a marketing mix.
Answer: TRUE
Explanation: The customer is not part of the marketing mix, but instead the focus of all marketing efforts.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
30) The customer should not be considered part of a “marketing mix.”
Answer: TRUE
Explanation: The customer is not part of the marketing mix, but instead the focus of all marketing efforts.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
31) The Product area is concerned with developing the right physical good, service, or blend of both for the target market.
Answer: TRUE
Explanation: 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.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
32) According to the text, a firm that sells a service rather than a physical good does not have a product.
Answer: FALSE
Explanation: The Product area is concerned with developing the right product, which may involve a physical good, a service, or both.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
33) The Product area of the marketing mix may involve a service and/or a physical good, which satisfies some customers’ needs.
Answer: TRUE
Explanation: The Product area is concerned with developing the right product, which may involve a physical good, a service, or both.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
34) The Place decisions are concerned with getting the right product to the target market at the right time.
Answer: TRUE
Explanation: 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.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
35) Any series of firms (or individuals) from producer to final user or consumer is a channel of distribution.
Answer: TRUE
Explanation: 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.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
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
Explanation: 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.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
37) A channel of distribution must include an intermediary.
Answer: FALSE
Explanation: 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.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking; Reflective Thinking
Accessibility: Keyboard Navigation
38) A channel of distribution must include several kinds of intermediaries and collaborators.
Answer: FALSE
Explanation: 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.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
39) Personal selling, mass selling, and sales promotion are all included in the Promotion area of the marketing mix.
Answer: TRUE
Explanation: Promotion includes personal selling, mass selling, and sales promotion. It is the marketing manager’s job to blend these methods of communication.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking; Reflective Thinking
Accessibility: Keyboard Navigation
40) Promotion is composed of personal selling, advertising, publicity, and sales promotion.
Answer: TRUE
Explanation: 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.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking; Reflective Thinking
Accessibility: Keyboard Navigation
41) Personal selling involves direct personal communication to get the sale, but personal attention is seldom required after the sale.
Answer: FALSE
Explanation: Personal selling involves direct spoken communication between sellers and potential customers. Such sales often require personal attention even after the sale is made.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking; Reflective Thinking
Accessibility: Keyboard Navigation
42) Customer service is needed when a customer wants the seller to resolve a problem with a purchase.
Answer: TRUE
Explanation: Customer service is personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
43) Advertising is any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor.
Answer: TRUE
Explanation: Advertising refers to any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
44) Sales promotion can involve point-of-purchase materials, store signs, contests, catalogs, and circulars.
Answer: TRUE
Explanation: 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.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
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
Explanation: 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.
Difficulty: 2 Medium
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking; Reflective Thinking
Accessibility: Keyboard Navigation
46) Personal selling and advertising are both forms of sales promotion.
Answer: FALSE
Explanation: 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.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
47) The “Four Ps” are used by marketing managers to deliver customer value to a target market.
Answer: TRUE
Explanation: Customer value increases when customers perceive more benefits or lower costs. Marketing managers use the “Four Ps” to deliver customer value to a target market.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
48) According to the text, Promotion is the most important of the “Four Ps.”
Answer: FALSE
Explanation: No single element of the marketing mix is more important another. All four are equally important.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
49) Price is the most important of the “Four Ps.”
Answer: FALSE
Explanation: No single element of the marketing mix is more important than another. All four are equally important.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
50) In general, no single element of the “Four Ps” is more important than the others.
Answer: TRUE
Explanation: No single element of the marketing mix is more important than the other. All four are equally important.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Create
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
51) The marketing mix should be set before the best target market is selected.
Answer: FALSE
Explanation: Selecting a target market and developing a marketing mix are interrelated. Both parts of a marketing strategy must be decided together.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
52) As in the Toddler University case, the needs of a target market virtually determine the nature of an appropriate marketing mix.
Answer: TRUE
Explanation: The Toddler University case shows how the needs of a target market, in this case the attentive parents target market, determine the nature of an appropriate marketing mix.
Difficulty: 1 Easy
Topic: Developing Marketing Mixes for Target Markets
Learning Objective: 02-04 be familiar with the Four Ps in a marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
53) Marketing plan and marketing strategy mean the same thing.
Answer: FALSE
Explanation: A marketing strategy is a big picture of what a firm will do in some market. A marketing plan is a written statement of a marketing strategy.
Difficulty: 1 Easy
Topic: The Marketing Plan is a Guide to Implementation and Control
Learning Objective: 02-05 know the difference between a marketing strategy, a marketing plan, and a marketing program.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
54) A marketing strategy and all the time-related details for carrying out the strategy is a “marketing plan.”
Answer: TRUE
Explanation: A marketing plan is a written statement of a marketing strategy and the time-related details for carrying out the strategy.
Difficulty: 1 Easy
Topic: The Marketing Plan is a Guide to Implementation and Control
Learning Objective: 02-05 know the difference between a marketing strategy, a marketing plan, and a marketing program.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
55) A marketing plan is a written statement of a marketing strategy and the time-related details for carrying out the strategy.
Answer: TRUE
Explanation: A marketing plan is a written statement of a marketing strategy and the time-related details for carrying out the strategy.
Difficulty: 1 Easy
Topic: The Marketing Plan is a Guide to Implementation and Control
Learning Objective: 02-05 know the difference between a marketing strategy, a marketing plan, and a marketing program.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
56) Implementation means putting the marketing plan into operation.
Answer: TRUE
Explanation: Implementation refers to putting marketing plans into operation.
Difficulty: 1 Easy
Topic: The Marketing Plan is a Guide to Implementation and Control
Learning Objective: 02-05 know the difference between a marketing strategy, a marketing plan, and a marketing program.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
57) Short-run decisions that stay within the overall guidelines set during strategy planning are called implementation decisions.
Answer: FALSE
Explanation: Operational decisions refers to short-run decisions that stay within the guidelines set down during strategy planning made to help implement strategies.
Difficulty: 1 Easy
Topic: The Marketing Plan is a Guide to Implementation and Control
Learning Objective: 02-05 know the difference between a marketing strategy, a marketing plan, and a marketing program.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
58) Marketing strategy planning should specify all the operational decisions to implement the plan.
Answer: FALSE
Explanation: Operational decisions should stay within the guidelines set down during strategy planning, but operational decisions are made regularly, sometimes daily, and should not be confused with planning strategy.
Difficulty: 1 Easy
Topic: The Marketing Plan is a Guide to Implementation and Control
Learning Objective: 02-05 know the difference between a marketing strategy, a marketing plan, and a marketing program.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Essentials of Marketing, 16e (Perreault)
Chapter 4 Focusing Marketing Strategy with Segmentation and Positioning
1) A market is a group of two or more sellers who offer substitute ways of satisfying customer needs.
Answer: FALSE
Explanation: 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.
Difficulty: 1 Easy
Topic: Search for Opportunities can begin by Understanding Markets
Learning Objective: 04-01 define and describe generic markets and product-markets.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2) A market is a group of competitors selling similar products.
Answer: FALSE
Explanation: 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.
Difficulty: 1 Easy
Topic: Search for Opportunities can begin by Understanding Markets
Learning Objective: 04-01 define and describe generic markets and product-markets.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
3) The main difference between a “product-market” and a “generic market” is whether customer needs are similar or different.
Answer: FALSE
Explanation: 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.
Difficulty: 1 Easy
Topic: Search for Opportunities can begin by Understanding Markets
Learning Objective: 04-01 define and describe generic markets and product-markets.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
4) A generic market description looks at markets broadly and from a customer’s viewpoint.
Answer: TRUE
Explanation: A generic market description looks at markets broadly and from a customer’s viewpoint.
Difficulty: 1 Easy
Topic: Search for Opportunities can begin by Understanding Markets
Learning Objective: 04-01 define and describe generic markets and product-markets.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
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
Explanation: A generic market is a market with broadly similar needs—and sellers offering various, often diverse, ways of satisfying those needs.
Difficulty: 1 Easy
Topic: Search for Opportunities can begin by Understanding Markets
Learning Objective: 04-01 define and describe generic markets and product-markets.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
6) A product-market is a market with broadly similar needs and sellers offering various, often diverse, ways of satisfying those needs.
Answer: FALSE
Explanation: A product-market is a market with very similar needs and sellers offering various close substitute ways of satisfying those needs.
Difficulty: 1 Easy
Topic: Search for Opportunities can begin by Understanding Markets
Learning Objective: 04-01 define and describe generic markets and product-markets.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
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
Explanation: 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.
Difficulty: 1 Easy
Topic: Search for Opportunities can begin by Understanding Markets
Learning Objective: 04-01 define and describe generic markets and product-markets.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
8) Product type describes the goods and/or services that customers want.
Answer: TRUE
Explanation: Product type describes the goods and/or services that customers want. Sometimes the product type is strictly a physical good or strictly a service.
Difficulty: 1 Easy
Topic: Naming Product-Markets and Generic Markets
Learning Objective: 04-01 define and describe generic markets and product-markets.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
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
Explanation: A product-market definition includes a product type that describes the goods and/or services that customers want, whereas a generic market definition doesn’t include any product-type terms.
Difficulty: 1 Easy
Topic: Naming Product-Markets and Generic Markets
Learning Objective: 04-01 define and describe generic markets and product-markets.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
10) A generic market description includes customer needs and product-type terms.
Answer: FALSE
Explanation: 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.
Difficulty: 2 Medium
Topic: Naming Product-Markets and Generic Markets
Learning Objective: 04-01 define and describe generic markets and product-markets.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
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
Explanation: 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.
Difficulty: 1 Easy
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-02 know what market segmentation is and how to segment product-markets into submarkets.
Bloom’s: Remember
AACSB: Reflective Thinking; Analytical Thinking
Accessibility: Keyboard Navigation
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
Explanation: 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.
Difficulty: 1 Easy
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-02 know what market segmentation is and how to segment product-markets into submarkets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
13) Market segmentation says that target marketers should develop one good marketing mix aimed at a fairly large market.
Answer: FALSE
Explanation: Market segmentation deals with segmenting broad product-markets in order to select target markets and develop suitable marketing mixes.
Difficulty: 1 Easy
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-02 know what market segmentation is and how to segment product-markets into submarkets.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
14) Marketing-oriented managers think of segmenting as a disaggregating process.
Answer: FALSE
Explanation: Marketing-oriented managers think of segmenting as an aggregating process.
Difficulty: 2 Medium
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-02 know what market segmentation is and how to segment product-markets into submarkets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
15) Marketing-oriented managers see segmenting as a process of aggregating people with similar needs into a group.
Answer: TRUE
Explanation: Marketing-oriented managers think of segmenting as an aggregating process—clustering people with similar needs into a “market segment.”
Difficulty: 1 Easy
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-02 know what market segmentation is and how to segment product-markets into submarkets.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
16) 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
Explanation: 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.
Difficulty: 1 Easy
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-02 know what market segmentation is and how to segment product-markets into submarkets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
17) One of the difficult things about segmenting is that not every customer will neatly fit into some market segment.
Answer: TRUE
Explanation: 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.
Difficulty: 1 Easy
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-02 know what market segmentation is and how to segment product-markets into submarkets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
18) The correct number of submarkets in a broad product-market is usually obvious, so the likelihood of managerial error is small.
Answer: FALSE
Explanation: Under broad product-market, a segmenter may aggregate submarkets into arbitrary numbers that are relatively homogeneous.
Difficulty: 1 Easy
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-02 know what market segmentation is and how to segment product-markets into submarkets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
19) 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
Explanation: 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.
Difficulty: 1 Easy
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-02 know what market segmentation is and how to segment product-markets into submarkets.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
20) “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
Explanation: 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.
Difficulty: 1 Easy
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-02 know what market segmentation is and how to segment product-markets into submarkets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
21) “Good” market segments should be homogeneous (similar) within, heterogeneous (different) between, substantial, and operational.
Answer: TRUE
Explanation: “Good” market segments meet the following criteria: homogeneous (similar) within; heterogeneous (different) between; substantial; and operational.
Difficulty: 1 Easy
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-02 know what market segmentation is and how to segment product-markets into submarkets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
22) “Good” market segments should be heterogeneous within and homogeneous between.
Answer: FALSE
Explanation: “Good” market segments meet the following criteria: homogeneous (similar) within; heterogeneous (different) between; substantial, and operational.
Difficulty: 1 Easy
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-02 know what market segmentation is and how to segment product-markets into submarkets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
23) If a product-market segment is “homogeneous within,” it is called a “substantial” target market.
Answer: FALSE
Explanation: “Good” market segments meet the following criteria: (1) homogenous within; (2) heterogenous between; (3) substantial; and (4) operational. “Substantial” means that the segment is big enough to be profitable.
Difficulty: 1 Easy
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-02 know what market segmentation is and how to segment product-markets into submarkets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
24) A “substantial” market segment is one that is big enough to be profitable.
Answer: TRUE
Explanation: A substantial market segment is one that should be big enough to be profitable.
Difficulty: 1 Easy
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-02 know what market segmentation is and how to segment product-markets into submarkets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
25) Saying that a market segment is “substantial” means that it contains customers from a variety of demographic variables.
Answer: FALSE
Explanation: A substantial market segment is one that should be big enough to be profitable.
Difficulty: 1 Easy
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-02 know what market segmentation is and how to segment product-markets into submarkets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
26) Planning the Place and Promotion elements of a marketing mix is especially difficult if the dimensions of a product-market are not operational.
Answer: TRUE
Explanation: Operational segment dimensions should be useful for identifying customers and deciding on marketing mix variables like Place and Promotion.
Difficulty: 1 Easy
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-02 know what market segmentation is and how to segment product-markets into submarkets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
27) A product-market segment is “operational” if it is big enough to be profitable to the firm.
Answer: FALSE
Explanation: A product-market segment is “substantial” if it is big enough to be profitable to the firm.
Difficulty: 1 Easy
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-02 know what market segmentation is and how to segment product-markets into submarkets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
28) A personality trait like moodiness is a good example of an “operational” segmenting dimension.
Answer: FALSE
Explanation: Moodiness might be related in some way to purchases, but it would not be a useful dimension for segmenting.
Difficulty: 1 Easy
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-02 know what market segmentation is and how to segment product-markets into submarkets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
29) 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
Explanation: 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.
Difficulty: 1 Easy
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-03 know three approaches to market-oriented strategy planning.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
30) 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
Explanation: The combined target market approach involves combining two or more submarkets into one larger target market as a basis for one strategy.
Difficulty: 2 Medium
Topic: Market Segmentation Defines Possible Target Markets
Learning Objective: 04-03 know three approaches to market-oriented strategy planning.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
31) 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
Explanation: 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.
Difficulty: 1 Easy
Topic: Target Marketers Aim at Specific Markets
Learning Objective: 04-03 know three approaches to market-oriented strategy planning.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
32) The more heterogeneous a firm’s target market becomes, the more likely the firm will see competition from an innovative segmenter.
Answer: TRUE
Explanation: A segmenter wants to aggregate individual customers into some workable number of homogeneous (not heterogeneous) target markets so that it can target them more successfully and avoid competition.
Difficulty: 1 Easy
Topic: Target Marketers Aim at Specific Markets
Learning Objective: 04-03 know three approaches to market-oriented strategy planning.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
33) 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
Explanation: A segmenter that really satisfies the target market can often build such a close relationship with customers that it faces no real competition.
Difficulty: 2 Medium
Topic: Target Marketers Aim at Specific Markets
Learning Objective: 04-03 know three approaches to market-oriented strategy planning.
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
34) 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
Explanation: 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).
Difficulty: 1 Easy
Topic: Target Marketers Aim at Specific Markets
Learning Objective: 04-03 know three approaches to market-oriented strategy planning.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
35) 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
Explanation: 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.
Difficulty: 2 Medium
Topic: Target Marketers Aim at Specific Markets
Learning Objective: 04-03 know three approaches to market-oriented strategy planning.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
36) Cost considerations usually favor more aggregating and larger market segments, but smaller segments may be required to satisfy needs more exactly.
Answer: TRUE
Explanation: 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.
Difficulty: 1 Easy
Topic: Target Marketers Aim at Specific Markets
Learning Objective: 04-03 know three approaches to market-oriented strategy planning.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
37) 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
Explanation: Potential target market dimensions include (1) behavioral needs and attitudes, and how present and potential goods and services fit into customers’ consumption patterns; (2) urgency to get needs and desires satisfied and willingness to seek information, compare, and shop; and (3) geographic location and other demographic characteristics.
Difficulty: 1 Easy
Topic: What Dimensions are Used to Segment Markets?
Learning Objective: 04-04 know dimensions that may be useful for segmenting markets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
38) 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
Explanation: Behavioral needs are important. Potential target market dimensions include (1) behavioral needs and attitudes, and how present and potential goods and services fit into customers’ consumption patterns; (2) urgency to get needs and desires satisfied and willingness to seek information, compare, and shop; and (3) geographic location and other demographic characteristics.
Difficulty: 1 Easy
Topic: What Dimensions are Used to Segment Markets?
Learning Objective: 04-04 know dimensions that may be useful for segmenting markets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
39) Segmenting a broad product-market usually requires using several segmenting dimensions at the same time.
Answer: TRUE
Explanation: Regardless of whether customers are final consumers or organizations, segmenting a broad product-market usually requires using several different dimensions at the same time.
Difficulty: 1 Easy
Topic: What Dimensions are Used to Segment Markets?
Learning Objective: 04-04 know dimensions that may be useful for segmenting markets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
40) Market segmentation applies only to consumer goods and services; it cannot be applied to business products.
Answer: FALSE
Explanation: 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.
Difficulty: 1 Easy
Topic: What Dimensions are Used to Segment Markets?
Learning Objective: 04-04 know dimensions that may be useful for segmenting markets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
41) Qualifying dimensions are those that actually affect the customer’s purchase of a specific brand in a product-market.
Answer: FALSE
Explanation: Qualifying dimensions are those relevant to including a customer type in a product-market.
Difficulty: 2 Medium
Topic: What Dimensions are Used to Segment Markets?
Learning Objective: 04-04 know dimensions that may be useful for segmenting markets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
42) A determining dimension for segmenting markets actually affects the purchase of a specific brand in a product-market.
Answer: TRUE
Explanation: Determining dimensions are those that actually affect the customer’s purchase of a specific product or brand in a product-market.
Difficulty: 1 Easy
Topic: What Dimensions are Used to Segment Markets?
Learning Objective: 04-04 know dimensions that may be useful for segmenting markets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
43) A marketing manager who is able to use qualifying dimensions in forming market segments will not need to worry about determining dimensions.
Answer: FALSE
Explanation: The more specific you want to be, the more particular the determining dimensions may be. The determining dimensions may seem minor. However, they are important.
Difficulty: 1 Easy
Topic: What Dimensions are Used to Segment Markets?
Learning Objective: 04-04 know dimensions that may be useful for segmenting markets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
44) The qualifying dimensions help identify the “core benefits” that must be offered to everyone in a product-market.
Answer: TRUE
Explanation: The qualifying dimensions help identify the “core benefits” that must be offered to everyone in a product-market.
Difficulty: 1 Easy
Topic: What Dimensions are Used to Segment Markets?
Learning Objective: 04-04 know dimensions that may be useful for segmenting markets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
45) International marketing typically requires less segmenting than domestic markets.
Answer: FALSE
Explanation: Success in international marketing requires even more attention to segmenting. There are over 192 nations with their own unique cultures, and they differ greatly in language, customs, beliefs, religions, race, and income distribution patterns.
Difficulty: 1 Easy
Topic: What Dimensions are Used to Segment Markets?
Learning Objective: 04-04 know dimensions that may be useful for segmenting markets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
46) A firm involved in international marketing should pay even more attention to segmenting than a firm that sells only in the United States.
Answer: TRUE
Explanation: Success in international marketing requires even more attention to segmenting. There are over 192 nations with their own unique cultures, and they differ greatly in language, customs, beliefs, religions, race, and income distribution patterns.
Difficulty: 1 Easy
Topic: What Dimensions are Used to Segment Markets?
Learning Objective: 04-04 know dimensions that may be useful for segmenting markets.
Bloom’s: Remember
AACSB: Reflective Thinking; Analytical Thinking
Accessibility: Keyboard Navigation
47) The first step in segmenting international markets is to group countries that are close to each other into “common markets.”
Answer: FALSE
Explanation: Segmenting international markets may require more dimensions. First, marketers segment by country or region—looking at demographic, cultural, and other characteristics, including stage of economic development. This may help them find regional or national submarkets that are similar.
Difficulty: 1 Easy
Topic: What Dimensions are Used to Segment Markets?
Learning Objective: 04-04 know dimensions that may be useful for segmenting markets.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
48) Clustering techniques try to find similar patterns within sets of data.
Answer: TRUE
Explanation: Clustering techniques try to find similar patterns within sets of data. Clustering groups customers who are similar on their segmenting dimensions into homogeneous segments.
Difficulty: 1 Easy
Topic: More Sophisticated Techniques May Help in Segmenting
Learning Objective: 04-05 recognize how some computer-aided methods are used in segmenting
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
49) Clustering is a technique that divides a large group of people into smaller groups, so that each small group is as diverse as the large group from which it was formed.
Answer: FALSE
Explanation: Clustering techniques try to find similar patterns within sets of data. Clustering groups customers who are similar on their segmenting dimensions into homogeneous segments.
Difficulty: 1 Easy
Topic: More Sophisticated Techniques May Help in Segmenting
Learning Objective: 04-05 recognize how some computer-aided methods are used in segmenting
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
50) Clustering techniques can be used in segmenting to help find similar patterns within sets of data to identify homogeneous groups of people.
Answer: TRUE
Explanation: Clustering techniques try to find similar patterns within sets of data. Clustering groups customers who are similar on their segmenting dimensions into homogeneous segments.
Difficulty: 1 Easy
Topic: More Sophisticated Techniques May Help in Segmenting
Learning Objective: 04-05 recognize how some computer-aided methods are used in segmenting
Bloom’s: Remember
AACSB: Analytical Thinking; Technology
Accessibility: Keyboard Navigation
51) Computer-aided segmenting approaches eliminate the need for managerial judgment and intuition in selecting segmenting dimensions.
Answer: FALSE
Explanation: Clustering approaches use computers to search all the data for homogeneous groups of people, but when the computer finds them, marketers then study the dimensions of the people in the groups to determine why the computer clustered them together. This involves managerial judgment and intuition.
Difficulty: 1 Easy
Topic: More Sophisticated Techniques May Help in Segmenting
Learning Objective: 04-05 recognize how some computer-aided methods are used in segmenting
Bloom’s: Remember
AACSB: Analytical Thinking; Technology
Accessibility: Keyboard Navigation
52) A firm is most likely to rely on customer relationship management (CRM) approaches when it does not have a database of information on individual customers.
Answer: FALSE
Explanation: With customer relationship management (CRM), the seller fine-tunes the marketing effort with information from a detailed customer database. This usually includes data on a customer’s past purchases as well as other segmenting information.
Difficulty: 1 Easy
Topic: More Sophisticated Techniques May Help in Segmenting
Learning Objective: 04-05 recognize how some computer-aided methods are used in segmenting
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
53) CRM is a variation of the positioning approach.
Answer: FALSE
Explanation: A variation of the clustering approach is based on customer relationship management methods.
Difficulty: 1 Easy
Topic: More Sophisticated Techniques May Help in Segmenting
Learning Objective: 04-05 recognize how some computer-aided methods are used in segmenting
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
54) CRM approaches are based on information from detailed customer databases.
Answer: TRUE
Explanation: With customer relationship management (CRM), the seller fine-tunes the marketing effort with information from a detailed customer database. This usually includes data on a customer’s past purchases as well as other segmenting information.
Difficulty: 1 Easy
Topic: More Sophisticated Techniques May Help in Segmenting
Learning Objective: 04-05 recognize how some computer-aided methods are used in segmenting
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
55) Firms that operate on the Internet are at a disadvantage when it comes to using approaches like CRM.
Answer: FALSE
Explanation: Firms that operate on the Internet are able to communicate with customers via a website or e-mail, which means that the whole effort is not only targeted but also very inexpensive. Further, it’s fast and easy for a customer to reply.
Difficulty: 1 Easy
Topic: More Sophisticated Techniques May Help in Segmenting
Learning Objective: 04-05 recognize how some computer-aided methods are used in segmenting
Bloom’s: Remember
AACSB: Analytical Thinking; Technology
Accessibility: Keyboard Navigation
56) By differentiating the marketing mix to do a better job meeting customers’ needs, the firm builds a competitive advantage.
Answer: TRUE
Explanation: By differentiating the marketing mix to do a better job meeting customers’ needs, the firm builds a competitive advantage. When this happens, target customers view the firm’s position in the market as uniquely suited to their preferences and needs.
Difficulty: 1 Easy
Topic: Differentiation and Positioning Take the Customer Point of View
Learning Objective: 04-06 know what positioning is and why it is useful.
Bloom’s: Remember
AACSB: Reflective Thinking; Analytical Thinking
Accessibility: Keyboard Navigation
57) “Positioning” shows how proposed and/or present brands are located in a market as seen by customers.
Answer: TRUE
Explanation: Positioning refers to how customers think about proposed or present brands in a market. Without a realistic view of how customers think about offerings in the market, it’s hard for the marketing manager to differentiate.
Difficulty: 1 Easy
Topic: Differentiation and Positioning Take the Customer Point of View
Learning Objective: 04-06 know what positioning is and why it is useful.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
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