Barney Hopkins has compiled a list of things that make segments more attractive. Which one of the following items should NOT be on the list?

31) Barney Hopkins has compiled a list of things that make segments more attractive. Which one of the following items should NOT be on the list?

A) relative power of buyers

B) lack of powerful suppliers to control prices

C) few substitute products

D) competition with superior resources

E) financial resources

Answer:  D

Diff: 2        Page Ref: 201

Skill:  Concept

Objective:  7-3

32) Which of the following is NOT one of the reasons a segment would be less attractive to a company?

A) strong competitors

B) substitute products

C) concentrated market

D) power of buyers

E) power of suppliers

Answer:  C

Diff: 2        Page Ref: 201

Skill:  Concept

Objective:  7-3

33) In general, a company should enter only segments in which it can ________ and ________.

A) offer lower prices; ship faster

B) offer superior value; gain advantages over competitors

C) offer superior value; ship faster

D) gain advantages over competitors; mass market its products

E) offer lower prices; develop customer loyalty

Answer:  B

Diff: 3        Page Ref: 201

Skill:  Concept

Objective:  7-3

34) Mass marketers, such as Target and Venture Stores, often ignore market segment differences and target the whole market with one offer. What is their approach to segmenting?

A) undifferentiated marketing

B) differentiated marketing

C) target marketing

D) concentrated marketing

E) micromarketing

Answer:  A

Diff: 1        Page Ref: 201

Skill:  Concept

Objective:  7-3

35) The 55-year-old baby boomers share common needs in music and performers. When a music company decides to serve this group, the group is called a(n) ________.

A) market segment

B) target market

C) niche market

D) micro market

E) undifferentiated market

Answer:  B

Diff: 2        Page Ref: 201

Skill:  Concept

Objective:  7-3

36) When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing.

A) undifferentiated

B) differentiated

C) target

D) individual

E) niche

Answer:  B

Diff: 2        Page Ref: 202

Skill:  Concept

Objective:  7-3

37) Developing a strong position within several segments creates more total sales than ________ marketing across all segments.

A) undifferentiated

B) differentiated

C) niche

D) target

E) individual

Answer:  A

Diff: 3        Page Ref: 202

Skill:  Concept

Objective:  7-3

38) ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________ against ________ when selecting this strategy.

A) extra research; costs

B) sales analysis; sales

C) increased sales; increased costs

D) geographic segmentation; demographic segmentation

E) attitudes; perceptions

Answer:  C

Diff: 2        Page Ref: 202

Skill:  Concept

Objective:  7-3

39) P&G sells six brands of laundry detergent in the United States, each designed for one of six laundry segments P&G has identified. Together, these six brands take 62% of market share. Which of the following is a disadvantage of P&G's differentiated marketing strategy?

A) lost sales that would have been made with an undifferentiated marketing strategy across all segments

B) lost customer loyalty due to lack of brand loyalty

C) increased costs for separate marketing plans for each brand

D) other suppliers controlling pricing

E) lack of resources to succeed in an attractive segment

Answer:  C

Diff: 2        Page Ref: 202

Skill:  Concept

Objective:  7-3

40) Successful niche marketing is most dependent on a firm's ________ and its ________.

A) promotions strategy; services

B) individual relationships with customers; positioning

C) superior products; value network partners

D) greater knowledge of customers' needs; special reputation

E) competitive advantage in comparison to mass-market companies; affordable pricing

Answer:  D

Diff: 2        Page Ref: 203

Skill:  Concept

Objective:  7-3

41) Using concentrated marketing, the marketer goes after a ________ share of ________.

A) small; a small market

B) small; a large market

C) large; one or a few niches

D) large; the mass market

E) moderate; local

Answer:  C

Diff: 2        Page Ref: 202-203

Skill:  Concept

Objective:  7-3

42) Today, the low cost of setting up shop ________ makes it even more profitable to serve very small niches.

A) in malls in major cities

B) in central business districts

C) on the Internet

D) near major competitors

E) far from competitors

Answer:  C

Diff: 2        Page Ref: 203

AACSB:  Use of Information Technology

Skill:  Concept

Objective:  7-3

43) Which of the segmenting strategies carries higher-than-average risks in consumer markets?

A) concentrated

B) mass

C) differentiated

D) undifferentiated

E) multiple-segment

Answer:  A

Diff: 3        Page Ref: 204

Skill:  Concept

Objective:  7-3

44) As You Like It, Inc. customizes its offers to each individual consumer. This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________ marketing.

A) niche

B) mass

C) differentiated

D) undifferentiated

E) micro

Answer:  E

Diff: 1        Page Ref: 204

Skill:  Concept

Objective:  7-3

45) ________ tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores.

A) Undifferentiated

B) Differentiated marketing

C) Niche marketing

D) Local marketing

E) Individual marketing

Answer:  D

Diff: 1        Page Ref: 204

Skill:  Concept

Objective:  7-3