SMM Unit 6 PDF

lOMoARcPSD|7648752 Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies 2. _____ entails designing product offerings and marketing programs that can establish an enduring compe...

lOMoARcPSD|7648752 Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies 2. _____ entails designing product offerings and marketing programs that can establish an enduring competitive advantage in the target market by creating a unique brand image, or position, in the customer’s mind. A. Brand positioning B. Market segmentation C. Brand preference D. Brand dilution Answer: a Level of Difficulty: Easy Page: 141 3. Identify the scenario emphasizing the impact of income on consumer markets that are segmented demographically. A. MobServ, a mobile service provider, focusing attention on the 65-plus segments to improve market penetration B. CarsForWomen Inc. launching an online information service aimed at women to directly influence eight out of ten vehicle purchases C. Cyan Mobiles launching a subsidiary to create an ultra-exclusive mobile telephone targeting customers who buy luxurious products D. GloGarments creating needs for specialized goods and services due to increase in the number of men opting for neon clothing Answer: c Level of Difficulty: Hard Page: 145 4. Carol’s Trio, an upscale retail chain, stocks and sells only Spanish, German, and French products. Trio is an example of segmenting a market by _____. A. age B. ethnic origin C. education D. income Answer: b Level of Difficulty: Easy Page: 145 5. _____ divides the market according to the characteristics of the buying organization using attributes such as age of firm, firm size, and industry affiliation. A. Microsegmentation B. Geographic segmentation C. Behavioral segmentation D. Macrosegmentation Answer: d Level of Difficulty: Easy Page: 146 1-31 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Downloaded by Bích Kha Ngô ([email protected])  lOMoARcPSD|7648752 Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies 6. In _____, customers are grouped by the characteristics of the individuals who influence the purchasing decision. A. microsegmentation B. geographic segmentation C. demographic segmentation D. macrosegmentation Answer: a Level of Difficulty: Easy Page: 146 7. AdventureBikes targets wilderness enthusiasts and introduced special robust bikes for them. PowerDrink’s target market comprises tennis players who need to replenish water and salts lost through perspiration. These are examples of _____ segmentation that is based on target consumers’ activities. A. demographic B. geographical C. geodemographic D. behavioral Answer: d Level of Difficulty: Medium Page: 147 8. When consumers evaluate product alternatives on the basis of desired characteristics and how valuable each characteristic is to them, it is referred to as _____. A. benchmarking B. productivity paradox C. choice criteria D. paradox of thrift Answer: c Level of Difficulty: Easy Page: 147 9. Which of the following statements is true of behavioral segmentation? A. It is useful in assessing the size and market potential of a market segment defined by a particular trade area. B. It identifies a common purchasing structure across all organizational markets. C. It is based on who the target customers are and where they live. D. It identifies new markets even among homogeneous demographic groups when segmented by lifestyle. Answer: d Level of Difficulty: Medium Page: 148 10. Which of the following is true of principle-oriented consumers? A. They are motivated by abstract and idealized criteria. 1-32 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Downloaded by Bích Kha Ngô ([email protected])  lOMoARcPSD|7648752 Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies B. They shop for products that demonstrate the consumer's success. C. They are guided by the need for social or physical activity and variety. D. They are motivated by risk-taking. Answer: a Level of Difficulty: Medium Page: 149 11. A(n) _____ consumer shops for products that demonstrate the consumer’s success. A. principle-oriented B. action-oriented C. resource-oriented D. status-oriented Answer: d Level of Difficulty: Easy Page: 149 12. _____ is the degree to which buying activity is centralized and influences a buyer to consider all transactions with a given supplier on a global basis, to emphasize cost savings, and to minimize risk. A. Brand parity B. Purchasing structure C. Choice criteria D. Purchasing influence Answer: b Level of Difficulty: Easy Page: 149 13. A(n) _____ refers to a recurring buying situation handled on a routine basis. A. straight rebuy B. old rebuy C. modified rebuy D. new buy Answer: a Level of Difficulty: Easy Page: 150 14. Which of the following buying situations occurs when some element, such as price or delivery schedules, has changed in a client–supplier relationship? A. A straight rebuy B. An old rebuy C. A modified rebuy D. A new buying situation Answer: c Level of Difficulty: Easy Page: 150 1-33 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Downloaded by Bích Kha Ngô ([email protected])  lOMoARcPSD|7648752 Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies 15. What is the first step in constructing a market attractiveness/competitive position matrix for evaluating potential target markets? A. Selecting market attractiveness and competitive position factors B. Choosing segments to target and allocate resources C. Rating segments on each factor and plotting results on matrices D. Projecting future position for each segment Answer: a Level of Difficulty: Easy Page: 152 16. In which of the following steps of evaluating potential target markets is the market- attractiveness/competitive-position matrix plotted? A. Choosing segments to target and allocating resources B. Projecting future position for each segment C. Rating segments on each factor D. Assigning numerical weights to the factors Answer: c Level of Difficulty: Medium Page: 154-155 17. Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is moderate and the competitive position is weak? A. It should expand without high risk or minimize investment and focus on operations. B. It should withdraw if indications of sustainable growth are lacking. C. It should emphasize profitability by increasing productivity. D. It should seek ways to increase current earnings without speeding market's decline. Answer: a Level of Difficulty: Hard Page: 157 18. Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is low and the competitive position is strong? A. It should build selectively on strengths and invest to improve position only in areas where risk is low. B. It should emphasize profitability by increasing productivity and build up ability to counter competition. C. It should protect current strengths of the firm and seek ways to increase current earnings without speeding market’s decline. D. It should invest more to grow at a maximum rate and concentrate on maintaining strength. Answer: c Level of Difficulty: Easy Page: 157 1-34 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Downloaded by Bích Kha Ngô ([email protected])  lOMoARcPSD|7648752 Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies 19. Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is high and the competitive position is strong? A. It should protect existing strengths and invest to improve position only in areas where risk is low. B. It should defend its current position and stop all further investments. C. It should sell when possible to maximize cash value and cut fixed costs in the meantime. D. It should invest more to grow at a maximum rate and concentrate on maintaining strengths. Answer: d Level of Difficulty: Easy Page: 157 20. Which of the following is true of a mass-market strategy? A. It involves serving one or more segments with customers seeking somewhat-specialized benefits from a product. B. It works on the principle that an undifferentiated marketing strategy generates more sales than a differentiated strategy. C. It involved using a differentiated marketing strategy to decrease manufacturing and promotion costs. D. It involves designing a single product-and-marketing program that will appeal to the largest number of consumers. Answer: d Level of Difficulty: Medium Page: 157 21. Which of the following market strategies is often favored by smaller companies to avoid direct confrontations with larger firms while building volume and share? A. A niche-market strategy B. A growth-market strategy C. A resource-market strategy D. A mass-market strategy Answer: b Level of Difficulty: Medium Page: 158 Essay Questions 22. What are the steps in a market segmentation process? Answer: There are three important steps in the market segmentation process: 1) Identify a homogeneous segment that differs from other segments: The process should identify one or more relatively homogeneous groups of prospective buyers with regard to their wants and needs and/or their likely responses to differences in the elements of the marketing mix. 2) Specify criteria that define the segment: The segmentation criteria should measure or 1-35 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Downloaded by Bích Kha Ngô ([email protected])