Question 1

Refer to the scenario below to answer the following question(s).
Ruben Delgado was making wooden pens and pencils, which had unique engravings, as a hobby until Simon Yoder recognized Ruben's talent. Simon immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the wooden pencils were a hit with all students! Ruben Delgado had never thought of marketing his talent, but Simon's enthusiasm and the recent sales were enough to change his mind.
With limited resources, Ruben contacted three additional specialty shops within 100 miles that were situated near schools. He explained his manufacturing processes and engraving options to each. All three shop owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Ruben was ecstatic! "I figured business would slow down after that," Ruben stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven-state area. Ruben was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Ruben Delgado accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project," Ruben added. He decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Ruben continued nurturing his four previously established accounts without targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Ruben explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Ruben paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes."
-If Ruben interacted one-to-one with his customers to design his products and services according to individual needs, he would be practicing ________.

Accepted Answer

A)  concentrated marketing 
B)  trigger-based marketing 
C)  undifferentiated marketing 
D)  mass customization 
E)  segmented marketing

Question 2

________ refers to a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

Accepted Answer

A)  Individual marketing 
B)  Local marketing 
C)  Niche marketing 
D)  Undifferentiated marketing 
E)  Segmented marketing

Question 3

________ segmentation assumes that nations close to one another will have many common traits and behaviors.

Accepted Answer

A)  Geographic 
B)  Occasion 
C)  Psychographic 
D)  Benefit 
E)  Demographic

Question 4

Which of the following states the product's membership in a category and then shows its point of difference from other members of the category?

Accepted Answer

A)  a mission statement 
B)  a vision statement 
C)  a general need description 
D)  a positioning statement 
E)  an order-routine specification

Question 5

Kinger Auto specializes in selling low-quality used vehicles that are priced a good deal lower than other used cars. Which of the following value propositions is evident here?

Accepted Answer

A)  more for the same 
B)  more for less 
C)  same for less 
D)  less for much less 
E)  more for more

Question 6

Bailey's Burgers promotes the Bailey's Jumbo Burger as a fun snack for teens and young adults. In this instance, Bailey's Burgers is practicing ________ segmentation.

Accepted Answer

A)  benefit 
B)  age and life-cycle 
C)  psychographic 
D)  geographic 
E)  gender

Question 7

In the context of behavioral segmentation, markets segmented by ________ can be categorized into light, medium, and heavy product users.

Accepted Answer

A)  benefits sought 
B)  loyalty status 
C)  usage rate 
D)  user status 
E)  occasion

Question 8

With a(n) ________ marketing strategy, a firm goes after a large share of one or a few smaller niches.

Accepted Answer

A)  individual 
B)  mass 
C)  concentrated 
D)  differentiated 
E)  local

Question 9

________ involves actually distinguishing the firm's market offering to create superior customer value.

Accepted Answer

A)  Mass customization 
B)  Differentiation 
C)  Market segmentation 
D)  Diversifying 
E)  Targeting

Question 10

________ requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it.

Accepted Answer

A)  Gender segmentation 
B)  Psychographic segmentation 
C)  Benefit segmentation 
D)  Geographic segmentation 
E)  Age and life-cycle segmentation

Question 11

Mass marketing involves identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.

Accepted Answer

A) True 
 B)False

Question 12

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

Accepted Answer

A)  Mass customization 
B)  Market targeting 
C)  Market segmentation 
D)  Differentiation 
E)  Positioning

Question 13

When a company customizes its merchandise store by store to meet shopper needs, it is practicing ________ marketing.

Accepted Answer

A)  niche 
B)  mass 
C)  local 
D)  segmented 
E)  trigger-based

Question 14

Harvey's Bookstore is a popular online bookstore that has differentiated itself through smooth-functioning delivery networks. This is an example of ________ differentiation.

Accepted Answer

A)  product 
B)  image 
C)  price 
D)  channel 
E)  people

Question 15

Malcolm Sanders, a graduate student from Boston, makes customized snowboards for local snowboarding enthusiasts. The demand for snowboards peaks during the winter months, a busy time for Malcolm. He advertises more aggressively and sells most of his snowboards around this time. Which market segmentation approach does Malcolm most likely use?

Accepted Answer

A)  gender segmentation 
B)  psychographic segmentation 
C)  occasion segmentation 
D)  geographic segmentation 
E)  age and life-cycle segmentation

Question 16

A catalog retailer in the United States has identified African American professionals between the ages of 35 and 45 as a group of potential customers for its products. The retailer plans to direct its marketing efforts toward this group of consumers. Which of the following market segmentation variables did the catalog retailer most likely use?

Accepted Answer

A)  demographic 
B)  psychographic 
C)  user status 
D)  loyalty status 
E)  usage rate

Question 17

Symbols such as the McDonald's golden arches, the colorful Google logo, the Nike swoosh, or Apple's "bite mark" logo provide strong company or brand recognition and are indicative of ________ differentiation.

Accepted Answer

A)  people 
B)  image 
C)  channel 
D)  services 
E)  product

Question 18

Briefly explain local and individual marketing.

Accepted Answer

The answer of Briefly explain local and individual marketing....

Question 19

Andrew Levitt runs a retail store in Norristown. Andrew's store stocks cold weather products as Norristown mostly has sub-zero temperatures. Which of the following is evident here?

Accepted Answer

A)  local marketing 
B)  concentrated marketing 
C)  segmented marketing 
D)  mass marketing 
E)  direct marketing

Question 20

Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies?

Accepted Answer

A)  individual marketing 
B)  one-to-one marketing 
C)  mass marketing 
D)  concentrated marketing 
E)  trigger-based marketing

Exam 7: Customer-Driven Marketing Strategy: Creating Value for Target Customers