Marketing An Introduction 13th Edition By Gary Armstrong – Test Bank

Marketing An Introduction 13th Edition By Gary Armstrong – Test Bank

Marketing: An Introduction, 13e (Armstrong)
Chapter 6 Customer-Driven Marketing Strategy: Creating Value for Target Customers

1) ________ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior.
A) Differentiation
B) Mass marketing
C) Market targeting
D) Market segmentation
E) Positioning
Answer: D
Diff: 1
LO: 6-1: Define the major steps in designing a customer value-driven marketing strategy: market segmentation, targeting, differentiation, and positioning.

2) Harry’s caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged men, and the other line targets younger, up-and-coming professionals. Harry’s most likely segments the consumer market based on ________ variables.
A) geographic
B) psychographic
C) universal
D) demographic
E) behavioral
Answer: D
Diff: 3
LO: 6-1: Define the major steps in designing a customer value-driven marketing strategy: market segmentation, targeting, differentiation, and positioning.
AACSB: Analytical thinking

3) ________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
A) Differentiation
B) Positioning
C) Market targeting
D) Market segmentation
E) Mass marketing
Answer: B
Diff: 1
LO: 6-1: Define the major steps in designing a customer value-driven marketing strategy: market segmentation, targeting, differentiation, and positioning.

4) Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy?
A) market segmentation, differentiation, positioning, and market targeting
B) positioning, market segmentation, mass marketing, and market targeting
C) market segmentation, market targeting, differentiation, and positioning
D) market alignment, market segmentation, differentiation, and market positioning
E) market recognition, market preference, market targeting, and market insistence
Answer: C
Diff: 1
LO: 6-1: Define the major steps in designing a customer value-driven marketing strategy: market segmentation, targeting, differentiation, and positioning.

5) Companies today are moving away from target marketing and toward mass marketing.
Answer: FALSE
Diff: 1
LO: 6-1: Define the major steps in designing a customer value-driven marketing strategy: market segmentation, targeting, differentiation, and positioning.

6) While designing a customer-driven marketing strategy, marketers are likely to divide the market into smaller segments.
Answer: TRUE
Diff: 1
LO: 6-1: Define the major steps in designing a customer value-driven marketing strategy: market segmentation, targeting, differentiation, and positioning.

7) Explain the four major steps in designing a customer-driven marketing strategy.
Answer: The four major steps in designing a customer-driven marketing strategy are market segmentation, market targeting, differentiation, and market positioning.

Market segmentation: Dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors, that might require separate marketing strategies or mixes. The company identifies different ways to segment the market and develops profiles of the resulting market segments. Market targeting: Evaluating each market segment’s attractiveness and selecting one or more of the market segments to enter. Differentiation: Actually differentiating the firm’s market offering to create a superior customer value. Market positioning: Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of consumers.
Diff: 2
LO: 6-1: Define the major steps in designing a customer value-driven marketing strategy: market segmentation, targeting, differentiation, and positioning.
AACSB: Analytical thinking

8) Lilly’s, a furniture retailer, sells low-end furniture and accent pieces that are targeted toward lower-income consumer groups. Lilly’s most likely segments the consumer market based on ________ variables.
A) demographic
B) psychographic
C) universal
D) geographic
E) behavioral
Answer: A
Diff: 2
LO: 6-2: List and discuss the major bases for segmenting consumer and business markets.
AACSB: Analytical thinking

9) Gulf Coast, a wholesale shrimp distributor, groups its customers by regions in the United States, such as Midwest, Northeast, and Southwest. For each region, Gulf Coast tailors a different set of advertisements and promotions. The supplier is segmenting its market according to ________.
A) behavioral factors
B) personality characteristics
C) geographic location
D) benefits sought
E) demographics
Answer: C
Diff: 2
LO: 6-2: List and discuss the major bases for segmenting consumer and business markets.
AACSB: Analytical thinking