Question 1

Scenario 4-2
Stronger income growth among upscale shoppers is fueling sales at the high end, while slow job growth and higher energy costs are prompting more moderate-income consumers to search of bigger bargains. No retail sector is more squeezed from both sides than the department-store chains, most of which continue to lose sales to other retailers. That has opened the door for financier Edward S. Lampert, 42, whose plans to merge Kmart Holdings and Sears could result in Sears vacating 200 to 300 of its 871 mall-based stores Overriding all this jostling is the biggest question in retail: whether the planned merger of Kmart and Sears will work. The deal would accelerate Sears' strategy to move off the mall by taking some Kmart sites. The retailers believe, too, that they would benefit from cross-selling some of their proprietary brands, like Kenmore appliances. (Robert Berner, "Retail's Unhappy Middle Ground," Business Week Online, December 24, 2004.)
-(Scenario 4-2) In designing the new line of Kenmore appliances, the new models are to appeal to a more upscale user. If Sears chose to advertise an emotional benefit for the product,the most likely reason would be that

Accepted Answer

A)  appliances are a mature product category, and thus it would be hard to differentiate the product based on functionality. 
B)  consumers don't usually consider functional benefits when choosing appliances. 
C)  the competition is also using emotional benefits. 
D)  consumers more readily accept emotional benefits.

Question 2

"Careful cooks," "down-home stokers," and "functional feeders" are all examples of

Accepted Answer

A)  geopsychographic segmentation 
B)  lifestyle segmentation 
C)  psychousage segmentation 
D)  benefit segmentation

Question 3

The act of representing one's product so it will occupy a distinct place in the consumer's mind is known as ____.

Accepted Answer

A)  positioning 
B)  targeting 
C)  segmentation 
D)  strategy

Question 4

Scenario 4-5
Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and accessories called The Plantatarium. Their initial feeling when they went into business was that virtually everyone was a potential customer for house plants. Subsequent market research conducted for them painted a different picture. This research identified three particularly strong market segments. The first was college students ages 18-24. The next segment was retired seniors ages 65-80. The third segment was professional offices for doctors, accountants, and lawyers. The college students liked houseplants because they dressed up their living spaces. The senior liked them because they became the focus of a hobby. The professionals did not buy them for any other reason than décor.
-(Scenario 4-5) The Plantatarium promotes itself in different media using the phrase "An out of this world selection of unique plants." This phrase is a reflection of the firm's ____.

Accepted Answer

A)  target market 
B)  positioning strategy 
C)  VALS profile 
D)  demographics

Question 5

Scenario 4-2
Stronger income growth among upscale shoppers is fueling sales at the high end, while slow job growth and higher energy costs are prompting more moderate-income consumers to search of bigger bargains. No retail sector is more squeezed from both sides than the department-store chains, most of which continue to lose sales to other retailers. That has opened the door for financier Edward S. Lampert, 42, whose plans to merge Kmart Holdings and Sears could result in Sears vacating 200 to 300 of its 871 mall-based stores Overriding all this jostling is the biggest question in retail: whether the planned merger of Kmart and Sears will work. The deal would accelerate Sears' strategy to move off the mall by taking some Kmart sites. The retailers believe, too, that they would benefit from cross-selling some of their proprietary brands, like Kenmore appliances. (Robert Berner, "Retail's Unhappy Middle Ground," Business Week Online, December 24, 2004.)
-(Scenario 4-2) One of Sears's goals in the redesign of the Kenmore line is that it wants to change the way consumers think about appliances. This statement suggests that Sears is following a(n) ____ strategy.

Accepted Answer

A)  STP 
B)  benefits sought 
C)  supplemental 
D)  product differentiation

Question 6

Scenario 4-1
Headquartered in Boston, The Gillette Company is the world leader in male grooming, a category that includes blades, razors and shaving preparations. The Gillette Company announced the upcoming launch of two new high-performance women's razors, broadening the portfolio of the top-selling Venus brand, the world's most successful franchise in female shaving. The two new razors are Venus Vibrance™, the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporate technological and design enhancements to better address the specific shaving needs of women. (http://www.gillette.com/women/product_news/gillette_introduces_two_new_razors.htm)
-(Scenario 4-1) The position for any one segment should

Accepted Answer

A)  also hold an appeal for those outside the segment. 
B)  be easily communicated to consumers. 
C)  change occasionally to break through advertising clutter. 
D)  be the same position selected for any other segments.

Question 7

Scenario 4-6
Madison State University has a reputation for having a powerful intercollegiate coed bowling team. Seating in the campus bowling alley only allows for 400 fans to attend any of their matches. Long lines for seats have formed in the past with many fans leaving disappointed because they could not get a ticket. As a result, the school's administrators decided to institute a "priority seating" plan where fans would be given access to advance tickets based on the following schedule:
• "Lanemaster Club" - $10,000 annual donation to the bowling program - guaranteed free box seats to any match (100 seats total)
• "Strike Club" - $1,000 annual donation to the bowling program - guaranteed free bleacher seats to any match (100 seats total)
• "Kingpin Club" - participants in local recreation bowling leagues - guaranteed bleacher seats for $10.00 to any match (100 seats total)
• "Pinhead Club" - students who have maintained a 3.9 GPA or better - guaranteed bleacher seats for $1.00 to any match (100 seats total)
-(Scenario 4-6) Each summer, the MSU Athletic Director chooses certain high income neighborhoods to walk through and knock on doors to encourage those people to join the Lanemaster Club. This is an example of a ____ segmentation strategy.

Accepted Answer

A)  psychographic 
B)  geodemographic 
C)  demographic 
D)  geographic

Question 8

One of the best ways to revive an ailing brand or fix a poor performance in a certain market is to reposition the brand in the consumer's mind - create a revised STP.

Accepted Answer

A) True 
 B)False

Question 9

For Kraft, the South Beach deal seems an admission that the diet - - linked with celebrity dieters such as Bill Clinton, Bette Midler and Nicole Kidman -- may be a bigger consumer draw currently than the Kraft name. The South Beach Diet book, by cardiologist Arthur Agatston, has sold more than 8 million copies. Among Kraft products that will carry the South Beach diet seal of approval is Jello. (Bruce Horvitz, "Kraft gets South Beach diet's seal of approval; New labels part of deal to keep waist watchers buying," USAToday.com, September 27, 2004.)
To maximize Jell-O's chances for success, describe the general characteristics its new position should possess.

Accepted Answer

The answer of For Kraft, the South Beach deal seems...

Question 10

Segmenting consumers on the basis of product usage means describing consumers as

Accepted Answer

A)  nonusers vs. users 
B)  loyalists vs. switchers 
C)  light, medium and heavy users 
D)  all of these are ways to categorize segments by usage

Question 11

Scenario 4-6
Madison State University has a reputation for having a powerful intercollegiate coed bowling team. Seating in the campus bowling alley only allows for 400 fans to attend any of their matches. Long lines for seats have formed in the past with many fans leaving disappointed because they could not get a ticket. As a result, the school's administrators decided to institute a "priority seating" plan where fans would be given access to advance tickets based on the following schedule:
• "Lanemaster Club" - $10,000 annual donation to the bowling program - guaranteed free box seats to any match (100 seats total)
• "Strike Club" - $1,000 annual donation to the bowling program - guaranteed free bleacher seats to any match (100 seats total)
• "Kingpin Club" - participants in local recreation bowling leagues - guaranteed bleacher seats for $10.00 to any match (100 seats total)
• "Pinhead Club" - students who have maintained a 3.9 GPA or better - guaranteed bleacher seats for $1.00 to any match (100 seats total)
-(Scenario 4-6) In marketing material that is used by the team to attract fans, the slogan "Two hours of down-home, wholesome fun" is used to attract ticket-buyers. This philosophy is an example of ____ segmentation.

Accepted Answer

A)  benefit 
B)  demographic 
C)  geodemographic 
D)  niche

Question 12

Self expressive benefits can be the basis for effective positioning. With this approach the purpose is

Accepted Answer

A)  to create distinctive images or personality traits for the brand and then invite the consumer into the brand's community 
B)  on benefit, user and competitive positioning, rather than emotional differentiation. 
C)  on making a product that doesn't compete directly with the competition. 
D)  on identifying groups of customers that can be served in a specifically utilitarian way.

Question 13

Scenario 4-3
El Sol sunglasses were designed by an avant-garde artist. She said there were no sunglasses out there that she would wear, so she had to design her own. Her sunglasses were worn by a whacked-out bad guy in a blockbuster movie and, because of this, have acquired a cult following among young teens. Print advertisements are visually sparse--nothing more than a still shot from the movie and a logo for the brand.
Eyewake sunglasses were designed by an optician after he realized that conventional sunglasses allowed in certain types of light that promoted eye fatigue. He made 1,000 of his sunglasses and gave 100 of them away to friends and acquaintances. After trying them out for awhile, several of them told him that they really liked them when they had to drive for extended lengths of time. He placed an ad in the back of a tourism magazine, extolling the safety benefit of driving with eyes that weren't fatigued. He promptly sold all of his remaining glasses.
Kushyspecs sunglasses were developed after research revealed that there was a small group of people who didn't like wearing sunglasses because most sunglasses left pinch marks on their noses. The company that performed the research developed sunglasses with a soft, cushiony nose piece. Advertisements for Kushyspecs feature the headline "The mark of a good pair of sunglasses is no mark at all."
-(Scenario 4-3) Which of these brands of sunglasses relies on emotional differentiation?

Accepted Answer

A)  El Sol 
B)  Eyewake 
C)  Kushyspecs 
D)  El Sol and Eyewake

Question 14

One benefit of using demographic segmentation is that it

Accepted Answer

A)  incorporates the strengths of all the different segmentation methods. 
B)  makes the process of selecting media vehicles easier. 
C)  highlights the lifestyles of potential users. 
D)  gives you insight into the motivations behind the use of the product.

Question 15

A brand's value proposition is a statement of the benefits of the brand that provide value to its target consumers and includes functional, emotional, and self-expressive benefits.

Accepted Answer

A) True 
 B)False

Question 16

Scenario 4-1
Headquartered in Boston, The Gillette Company is the world leader in male grooming, a category that includes blades, razors and shaving preparations. The Gillette Company announced the upcoming launch of two new high-performance women's razors, broadening the portfolio of the top-selling Venus brand, the world's most successful franchise in female shaving. The two new razors are Venus Vibrance™, the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporate technological and design enhancements to better address the specific shaving needs of women. (http://www.gillette.com/women/product_news/gillette_introduces_two_new_razors.htm)
-(Scenario 4-1) According to the information provided here, Gillette has identified market segments along ____ lines.

Accepted Answer

A)  benefit 
B)  usage pattern 
C)  geographic 
D)  demographic

Question 17

Advertising is not only used for consumer markets; businesses who market to other businesses use it too.

Accepted Answer

A) True 
 B)False

Question 18

When formulating a positioning strategy, a multiple benefits to satisfy the target segment should be considered.

Accepted Answer

A) True 
 B)False

Question 19

Folgers launched a new brand initiative called "Happy Mornings: the Revenge of the Yellow People." Using STP, they changed their brand positioning as part of a strategy that

Accepted Answer

A)  brings color to the brand reputation 
B)  addresses a new target group in terms that are relevant to their lifestyles 
C)  uses nostalgia for 1950's monster movies to remind Boomers to drink their brand 
D)  none of these statements explain what Folgers is doing with their new campaign

Question 20

Describe the principle known as niche marketing. What are the competitive advantages of marketing to a niche?

Accepted Answer

The answer of Describe the principle known as niche marketing....

Exam 4: Understanding the Marketing Environment: Segmentation, Targeting, and Positioning

"Careful cooks," "down-home stokers," and "functional feeders" are all examples of

The act of representing one's product so it will occupy a distinct place in the consumer's mind is known as ____.

One of the best ways to revive an ailing brand or fix a poor performance in a certain market is to reposition the brand in the consumer's mind - create a revised STP.

Segmenting consumers on the basis of product usage means describing consumers as

Self expressive benefits can be the basis for effective positioning. With this approach the purpose is

One benefit of using demographic segmentation is that it

A brand's value proposition is a statement of the benefits of the brand that provide value to its target consumers and includes functional, emotional, and self-expressive benefits.

Advertising is not only used for consumer markets; businesses who market to other businesses use it too.

When formulating a positioning strategy, a multiple benefits to satisfy the target segment should be considered.

Folgers launched a new brand initiative called "Happy Mornings: the Revenge of the Yellow People." Using STP, they changed their brand positioning as part of a strategy that

Describe the principle known as niche marketing. What are the competitive advantages of marketing to a niche?