Herb Marks was making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase.

Herb Marks was making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the writing utensils were a hit! Herb Marks had never thought of marketing his talent, but Mel's enthusiasm and the recent sales were enough to change his mind.

With limited resources, Herb contacted three additional specialty shops within 100 miles. He explained his manufacturing processes and engraving options to each. All three shops' owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic!

"I figured business would slow down after that," Herb 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. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks 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," Herb added. "I couldn't grow out of control. I was already working to capacity."

Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb 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," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb 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."

98) In the scenario, how does Herb segment his market?

A) loyalty status

B) usage rate

C) income

D) geographically

E) demographically

Answer:  B

Diff: 2        Page Ref: 197

AACSB:  Analytic Skills

Skill:  Application

Objective:  7-2

99) In marketing his writing utensils to his four specialty-shop customers, Herb is using ________ marketing.

A) mass

B) undifferentiated

C) niche

D) mass customization

E) individual

Answer:  C

Diff: 2        Page Ref: 202

AACSB:  Analytic Skills

Skill:  Application

Objective:  7-3

100) If Herb produced a variety of styles of pens and pencils with various wood types and engravings that he tailored specifically to each individual's order, he would be practicing ________.

A) concentrated marketing

B) local marketing

C) undifferentiated marketing

D) mass customization

E) micromarketing

Answer:  D

Diff: 2        Page Ref: 205

AACSB:  Analytic Skills

Skill:  Application

Objective:  7-3