Chapter 4

Market Branding

1. When a brand team defines the target market of consumers for their product, they may also identify many smaller
subsets of consumers within their broad market.
a. True
b. False

ANSWER: True

2. In the world of advertising, markets are positioned, but products are segmented.
a. True
b. False

ANSWER: False
3. STP marketing includes three factorsidentifying, positioning, and informing.
a. True
b. False

ANSWER: False

4. If General Mills decides to use the STP framework, it can divide its resources to reach a number of separate and
distinct market segments.
a. True
b. False

ANSWER: True
5. Positioning means to cut your market into pieces and focus on the piece or pieces that make the most sense.
a. True
b. False

ANSWER: False

6. Companies can do well by spending advertising dollars to target nonusers over other user groups, since they offer the
highest level of opportunity.
a. True
b. False

ANSWER: False

7. Spending advertising dollars to get switchers to buy your brand may seem like a good idea, but it often results in
only one-time or random purchases.
a. True
b. False

ANSWER: True

8. Demographic segmentation is used in selecting target segments by focusing on consumers descriptors such as their
values, beliefs, philosophies, and opinions.
a. True
b. False

ANSWER: False
 9. Demographics are rarely used to describe or profile target segments that have already been identified as prospects
by other variables.
a. True
b. False

ANSWER: False

10. Psychographic segmentation focuses on the inner mindset of consumers rather than outer aspects of their lives such
as activities, interests, and lifestyles.
a. True
b. False

ANSWER: False
11. Today, advertising tends to be used almost exclusively by businesses targeting consumer markets, and only in very
rare circumstances by businesses trying to sell products to other businesses.
a. True
b. False

ANSWER: False

12. If an advertiser sees a large potential segment being served by a competitor with a big budget, it might consider
identifying and targeting smaller groups within that large segment.
a. True
b. False

ANSWER: True
13. One drawback of niche marketing is that a company often has to reduce the price of its product due to the smaller
volume of sales it can expect.
a. True
b. False

ANSWER: False

14. Any meaningful positioning strategy needs to include several broad elements in its messageincluding attention-
getting, variety, flexibility, and complexity.
a. True
b. False

ANSWER: False

15. A gourmet ice cream franchise advertises itself as offering thick, creamy, gooey treats, calling them delectable,
desirous, and decadentthe richest and sweetest desserts found anywhere in America. The owner of the local shop
buys ads focusing on extended hours and friendly service. This is an example of internal consistency.
a. True
b. False

ANSWER: False
16. Haley Inc. is a company that manufactures products for babies and toddlers. It's advertising campaigns have carried
various slogans over the years, but they have all revolved around the same thematic core. This is an example of
consistent positioning approach.
a. True
b. False

ANSWER: True

17. When formulating a positioning strategy, a multiple-benefits approach is strongly suggested to satisfy many markets
at the same time, because it alerts consumers to a wide array of diverse functions and positive consequences related
to the product.
a. True
b. False

ANSWER: False

18. The positioning model from Anne Bahr constitutes the overlapping of the proposition for the brand and persuasion
tools.
a. True
b. False

ANSWER: False
19. Bayt Caf is launching a new advertising campaign portraying its restaurant as having very fast service and a
cheerful staff to target a younger crowd. The campaign alone will be enough to gain the loyalty of the younger
segment.
a. True
b. False

ANSWER: False

20. LivTo Inc. is a company that manufactures cosmetic products for women. It claims to have the best customer care
services and is prompt to address the grievances of its customers. To be internally consistent, the company should
invest in a better Research and Development department and also create a new image for its products.
a. True
b. False

ANSWER: False

21. The basic premise of a positioning strategy must be simple and distinctive if it is to be communicated effectively to
the target segment.
a. True
b. False

ANSWER: True
22. A brands 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.
a. True
b. False

ANSWER: True
23. When ad agency professionals are creating a campaign for a huge global retail firm with complex value propositions,
in all likelihood, no single ad can be expected to reflect all aspects of the brands value.
a. True
b. False

ANSWER: True

24. The strategic planning triangle suggested by Thorson and Moore features as its three main aspects the campaigns
segments, its value proposition, and its persuasion tools.
a. True
b. False

ANSWER: True

25. The process of cutting a market into pieces and focusing on the piece or pieces that make the most sense is termed
a. segmentation
b. integration
c. rationalization
d. differentiation

ANSWER: a
26. The Folgers brand team looked at the diverse market of all coffee drinkers, then broke it down by age. When the
team chose to focus on just-graduated-20-somethings, it was
a. benefit positioning.
b. positioning.
c. targeting.
d. segmenting.

ANSWER: d

27. What does T stand for in the term STP marketing?

a. Tangible
b. Technology
c. Target
d. Territory

ANSWER: c
28. What is the first step in STP marketing?
a. market segmentation
b. position strategy
c. benefit positioning
d. target marketing

ANSWER: a
29. The Folgers team aligned its marketing mix in a design that would represent a particular identity, showcasing certain
themes and values, shaped to gain distinctive approval from the just-graduated-20-somethings. This demonstrates
the process of
a. switching.
b. commoditization.
c. segmenting.
d. singularization.

ANSWER: c

30. What does the acronym STP mean?

a. Sales, Target, Product
b. Sell To People
c. Segmenting, Targeting, Positioning
d. Sell The Product

ANSWER: c

31. In STP marketing, the term refers to an attempt to give a brand a certain meaning relative to its competitors.
a. segmentation
b. redistribution
c. positioning
d. targeting

ANSWER: c
32. For most products and services, some users will purchase much more, and more frequently, than others. These
consumers are called .
a. lead users
b. switchers
c. emergent consumers
d. variety seekers

ANSWER: a

33. are consumers who are so committed to a brand that their consumer behavior toward it borders on the
pathological.
a. Emergent consumers
b. Variety seekers
c. Switchers
d. Brand-freaks

ANSWER: d

34. What is a downside to adopting a heavy-user-focused segmentation plan?

a. Heavy users usually form less than one percent of users by volume.
b. Heavy users may differ significantly from average or infrequent users in terms of their motivations to
consume, their approach to the brand, or their image of the brand.
c. Heavy users are a costly target segment and much can be spent in getting their business merely to have it
disappear just as quickly as it was won.
d. Heavy users have little knowledge of the brand and negligible social influence.

ANSWER: b
35. The consumers termed turn out to be a costly target segment; much can be spent in getting their business

merely to have it disappear just as quickly as it was won.

a. brand freaks
b. lead users
c. switchers
d. heavy users

ANSWER: c

36. As a segment, variety seekers tend to

a. be extremely committed to a brand.
b. buy brands based on sales, discount coupons, or other incentives.
c. need little encouragement to continue purchasing a brand.
d. be unusually enthusiastic and often excessive in their purchasing activities.

ANSWER: b

37. Which segment specifically offers marketers an important opportunity to build future business by luring first-time
buyers?
a. switchers
b. brand-freaks
c. lead users
d. emergent consumers

ANSWER: d
38. The one key characteristic that all types of share is that their brand preferences are still under development.
a. variety seekers
b. brand-freaks
c. heavy users
d. emergent consumers

ANSWER: d
39. Ultima Inc., a manufacturer of high-end cell phones and laptops, has designed a campaign that specifically targets a
group of emergent consumers and aims to persuade them to try its products. This campaign is an example of:
a. ambush marketing.
b. guerilla marketing.
c. heavy-user-focused marketing.
d. point-of-entry marketing.

ANSWER: d

40. Characteristics and traits such as age, gender, race, marital status, income, education, and occupation are widely
used in segmentation.
a. geographic
b. psychographic
c. competitive
d. demographic

ANSWER: d

DIFFICULTY:
LEARNING OBJECTIVES:
NATIONAL STANDARDS:
STATE STANDARDS:
KEYWORDS:
Easy
AIBP.OGUI.15.6-2
United States - BUSPROG: Reflective Thinking
United States - Ohio - DISC: Customer
Bloom's: Knowledge
41. Which of the following is true about the demographic group known as "woopies"?
a. They are identified as free spirits in their 20s and 30s who have yet to commit to long-term careers,
relationships, lifestyles, or even geographic locations.
b. They represent the youngest demographic segment in the U.S.
c. They are identified as consumers over 50 years of age.
d. They consist of pre-teens and early adolescents, who will have great buying power within a few years.

ANSWER: c
42. Climate, topography, community size, and national region have been found to make dramatic differences in
consumption, including habits involving eating and food preparation, entertainment, and recreation.This is the basis of
segmentation.
a. psychographic
b. commitment-level-based
c. geographic
d. demographic

ANSWER: c

43. Which system has identified 62 market segments based on zip codes and the personal characteristics of their
residents, creating a well-known tool for geodemographic segmentation?
a. Thorson and Moores model
b. PRIZM
c. SIC Codes
d. VALS

ANSWER: b
44. is a term that advertisers created in the mid-1960s to refer to a form of research that emphasizes the
understanding of consumers activities, interests, and opinions.
a. Demographics
b. Geodemographics
c. Psychographics
d. Micrographics

ANSWER: c

45. Why are systems such as PRIZM used widely by advertisers for segmentation?
a. because they provide deep segment description
b. because they allow for segmentation on the basis of frequency of usage
c. because they provide deep insights into consumers' motivations
d. because they emphasize the understanding of consumers activities, interests, and opinions

ANSWER: a

46. Which company was highlighted in the text because it interviewed 3,000 consumers and created five distinct
segments that it could then target in different ways, customizing lifestyle segmentation with a particular focus?
a. Este Lauder
b. Folgers
c. Mobil
d. Pillsbury

ANSWER: d

DIFFICULTY: Easy
LEARNING OBJECTIVES: AIBP.OGUI.15.6-2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
STATE STANDARDS: United States - Ohio - DISC: Customer
KEYWORDS: Bloom's: Knowledge
47. As highlighted in the text, Careful Cooks, DownHome Stokers, and Functional Feeders are all segments
identified by Pillsbury based on segmentation.
a. geopsychographic
b. niche
c. repositioned
d. lifestyle

ANSWER: d

48. In recent years skillful marketers have merged information on where people live with the U.S. Census Bureaus
demographic data to produce a form of market segmentation known as segmentation.
a. demographic
b. micrographic
c. reprographic
d. geodemographic

ANSWER: d

49. A firm hires an agency to persuade hairdressers, spas, and hair salons to purchase its line of hair care products,
grooming equipment, and professional tools. In this case, the agency is specifically involved in:
a. psychographic research.
b. business-to-business marketing.
c. the competitive field
d. lifestyle segmentation.

ANSWER: b
50. Perhaps the most fundamental criterion in segment selection revolves around what the members of the segment
want versus:
a. how much they are willing to pay for it.
b. whether the segment is currently growing.
c. how much they are willing to settle for.
d. the organizations ability to provide it.

ANSWER: d

51. A major criterion to consider during segment selection is the , or the companies that are vying for that
segments business.
a. ad clutter
b. business market
c. competitive field
d. target market

ANSWER: c

52. What is a market niche?

a. A small group of consumers with unique needs and who typically are willing to pay a premium to have those
needs met
b. A large group of heavy users who are loyal to a brand because it provides value at a relatively low price
c. A market segment that is served by many firms and is characterized by high levels of competition
d. A market segment that is characterized by high sales volumes and low prices

ANSWER: a
53. In Mobils positioning as the "Friendly Serve" station, it had many good reasons to select the particular target market
that it did. But one issue that was NOT a factor was that the segment
a. spent the largest amount of money at service stations.
b. had the greatest number of consumers in sheer numbers.
c. had potential for growth.
d. bought extras besides just gas.

ANSWER: b

54. A fast-food restaurant is attempting to position itself as the best choice when you're in a hurry because it serves all
customers within 90 seconds. To maintain internal consistency, the firm might take all of the following steps below,
EXCEPT for which one?
a. expanding on its menu
b. adding extra drive-up windows
c. hiring more order-takers
d. hanging up digital timers behind the counter

ANSWER: a

55. The model shows that a brands best opportunity for success involves the overlapping of four important

factors: current relevance to the consumer, credibility or consumer belief in the brand, differentiation or a recognition
of uniqueness, and stretch or the potential for consumer relevance over time.
a. SWOT analysis
b. PEST analysis
c. Symantec brand opportunity
d. Porter's four corners

ANSWER: c
56. One big plus from a product position that stays consistent over time, like State Farm's Good Neighbor campaign, is
that it
a. is more likely to break through advertising clutter.
b. successfully reaches nonusers.
c. doesnt need to target a particular segment.
d. is easily repositioned.

ANSWER: a

57. Which firm did the text highlight as one with a long-term, successful campaign that epitomizes simplicity in defining
its distinctiveness, a critical ingredient in a good positioning strategy?
a. Exedrin
b. Jack Daniels
c. Nike
d. Tylenol

ANSWER: b

58. Which of the following forms the final apex of the strategic planning triangle proposed by Esther Thorson and Jeri
Moore?
a. selection of a mix of persuasion tools
b. identification of the target segment
c. specification of the brands value proposition
d. division of a market into segments

ANSWER: a
59. A potential downside of a heavy-user-focused segmentation plan is that:
a. it can take resources away from those that require persuasion.
b. heavy users usually require constant encouragement to keep consuming a product.
c. heavy users do not differ significantly from infrequent users in terms of their motivations to consume.
d. it shifts focus to emergent consumers who need to be convinced to purchase the product.

ANSWER: a

60. Thorson and Moore place as the paramount apex in their model.
a. specification of the brands value proposition
b. identification and specification of the target segment
c. identification of the various persuasion tools that may be deployed as part of the campaigns
d. specification of niche segments within larger segments

ANSWER: b

61. A is a core idea that frames an ambition or aspiration for a brand that will be relevant to target audiences

over time.
a. brand extension
b. brand orientation
c. brand initial
d. brand platform

ANSWER: d
62. What are the three fundamental options that advertisers have when choosing a positioning theme?
a. demographic, psychographic, or geographic
b. benefit, user, or competitive
c. STP, VALS, or SIC
d. functional, emotional, or psychological

ANSWER: b

63. The second important apex in Thorson and Moore's strategic planning triangle entails:
a. identification and specification of the target segment.
b. identification of the various persuasion tools that may be deployed as part of a campaign.
c. specification of the brands value proposition.
d. specification of niche markets within a large segment

ANSWER: c

64. The American Pork Producers has been running a long-term campaign with the tagline "Pork. The other white
meat." This is an example of
a. lifestyle segmentation.
b. demographic segmentation.
c. benefit positioning.
d. competitive positioning.

ANSWER: d
65. Which of the following is true of segment selection?
a. The number of heavy users in a segment is usually very large.
b. It is enough to assess the size of a segment to select it as a companys target segment.
c. Growth potentials for all segments are generally very low.
d. Marketers are inclined to devote resources to segments projected for dramatic growth.

ANSWER: d

66. A brands is a statement of the functional, emotional, and/or self-expressive benefits delivered by the brand.
a. universal product code
b. memorandum of understanding
c. value proposition
d. warranty

ANSWER: c

67. A powerful value proposition in most situations today includes functional, emotional, and self-expressive benefits,
a. though only tangible product benefits are truly emphasized.
b. though no single ad can reflect all three aspects.
c. all of which must be included in a given advertising campaign.
d. though children are excluded because their decision making is controlled by parents.

ANSWER: b
68. Veda Inc., a manufacturer of cosmetics, offers two product lines, each catering to a distinct segment. Its most
popular brand, Alo, targets women who want makeup that will last at least ten hours after application. With its brand
Amo the company targets a niche market of women who are looking for makeup with anti-ageing properties. What
type of segmentation is Veda Inc. using?
a. Benefit segmentation
b. Heavy-user-focused segmentation
c. Lifestyle segmentation
d. Geographic segmentation

ANSWER: a

69. The use of psychographics to focus on differences in consumers activities, interests, and opinions usually results in
segmentation.
a. heavy-user-focused
b. benefit
c. geographic
d. lifestyle

ANSWER: d
 Scenario 6-1
Headquartered in Boston, The Gillette Company is the world leader in male grooming, a category that includes
blades, razors, and shaving preparations. Several years ago, Gillette announced the 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 were Venus Vibrance the first power wet shaving system for
women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporated technological and
design enhancements to better address the specific shaving needs of women, and will build on current market
segments. More recently the company has launched Venus Embrace, the first five-blade womens razor, with the
tagline, Reveal the Goddess in You. According to its website, nearly 40 million women now use Venus products.

(http://www.gillettevenus.com/en_US/products/index.jsp)
70. (Scenario 6-1) The position for any one market segment should
a. also hold an appeal for those outside the segment.
b. be identical to positions selected for other segments.
c. change occasionally to break through advertising clutter.
d. be easily communicated to consumers.

ANSWER: d

71. (Scenario 6-1) The original plan to sell new products to the female market
a. cannot be considered an STP effort because Gillette is targeting multiple segments.
b. may or may not have been an STP effort, depending on whether Gillette has created sub-segments of these
large segments.
c. may or may not have been an STP effort, depending on whether all possible segments are being targeted by
Gillette.
d. fit all the criteria of an STP effort by Gillette.

ANSWER: d
72. (Scenario 6-1) According to the information provided here, Gillette has identified market segments along
lines.
a. benefit
b. demographic
c. geographic
d. usage pattern

ANSWER: b

73. (Scenario 6-1) It appears that the management at Gillette has performed the fundamental task behind effective
segmentation. Gillette has matched what members of different segments want with
a. the company's ability to provide it.
b. a single appeal.
c. a heavy-user-focused campaign.
d. a distinct geographic profile.

ANSWER: a

74. (Scenario 6-1) is a tool more likely employed by Gillette to supplement the use of demographic data by

providing information about consumers activities, interests, and opinions.

a. Psychographics
b. PRIZM
c. STP
d. Bass diffusion

ANSWER: a
 Scenario 6-2

Sunshine Meals Inc. is a company that sells breakfast foods such as cereals, pancake mixes, etc. The company
conducts a study to segment its consumers.
It finds that segment A consists of a small group of individuals who purchase four boxes of the brands cereal every
week. The average user consumes one box every week. It targets segment A by providing them with samples of
other Sunshine products with the purchase of one box.
Segment B consists of a large number of college students and individuals who have recently begun living on their
own, and require readymade mixes as their breakfast solution. It targets these consumers by providing more variety
with pancakes and waffle mixes.
Segment C consists of consumers who are not consistent buyers and targeting these consumers could prove a loss
for the company.
75. (Scenario 6-2) The consumers of segment A can be classified as .
a. fickle users
b. heavy users
c. variety users
d. competitive users

ANSWER: b

76. (Scenario 6-2) Which of the following marketing strategies is more likely to have been used by the company to target
segment B users?
a. Niche marketing
b. Geographic segmentation marketing
c. Ambush marketing
d. Point-of-entry marketing

ANSWER: d
77. (Scenario 6-2) Segment C consumers are more likely to be .
a. emergent consumers
b. brand freaks
c. lead users
d. variety seekers

ANSWER: d

78. (Scenario 6-2) If Sunshine Meals Inc. begins producing a range of sugar free marmalades to target a small segment
of health conscious consumers who would be willing to pay a premium price for products appropriate for their diets,
this would be an example of
a. niche marketing
b. geographic segmentation
c. point-of-entry marketing
d. geodemographic segmentation

ANSWER: a
 Scenario 6-3
Keds has been trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as
the women's no-frills summer shoe to keep sales moving. But over time, competition from Sam & Libby and Easy
Spirit brands have been nipping at the heels of Keds. As part of its effort to revitalize the brand several years ago,
Keds's advertising agency developed a campaign that focuses on the warm, close relationships between mothers and
daughters. According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy
on the first ad included the mother saying, "She was my first, I could never tell her how to dress," with the daughter
saying, "She made me feel pretty even when I had braces."
79. (Scenario 6-3) Instead of mothers and daughters, why didnt Keds define its target segment simply as women?
a. This concept already has a number of established companies targeting it.
b. This is not based on a realistic approach to segmentation.
c. This is based on demographic criteria for which media is difficult to define.
d. This is poorly defined and provides no clear orientation or identity.

ANSWER: d

80. (Scenario 6-3) Which of these segmentation techniques would provide the most insight for Keds's advertising agency
in the creation of its advertisements?
a. Emergent
b. Lifestyle
c. Geographic
d. Usage pattern

ANSWER: b
81. (Scenario 6-3) The copy for this campaign features moms and daughters commenting on their close relationships,
and Brandweek magazine said that the new Keds ads "really go for the heart." This points to the campaigns focus
on
a. identifying emotional benefits.
b. delivering its promise.
c. targeting nonusers.
d. using VALS data.

ANSWER: a

82. (Scenario 6-3) The information provided says that Keds was trying to turn around a long-term slide in its shoe
business, and that for years, it had depended on its image as the women's no-frills summer shoe. Obviously, things
had changed and what Keds needed was a change in its once-successful strategy and identity to meet new market
conditions. This change in strategy is called:
a. internal consistency.
b. self-expressive marketing.
c. repositioning.
d. business-to-business marketing

ANSWER: c
 Scenario 6-4
Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and accessories,
which they named 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
seniors liked them because they became the focus of a hobby. The professionals did not buy them for any reason
other than dcor.
83. (Scenario 6-4) To attract the in the market, the Plantatarium offers a punch card that rewards buyers with a

$10 discount each time they purchase $150 worth of plants and other goods from the store.
a. emergent consumers
b. demographic segment
c. variety seekers
d. heavy users

ANSWER: d

84. (Scenario 6-4) The Plantatarium sends out direct mail offers to consumers in a nearby zip code area who have
household incomes of greater than $40,000 a year. This is an illustration of a strategy.
a. geographic segmentation
b. demographic segmentation
c. psychographic segmentation
d. geodemographic segmentation

ANSWER: d
85. (Scenario 6-4) The owners of this business have decided to carry a great deal of plants that flower throughout the
year because most consumers have said they like them for the cheerful feeling they give. This suggests that The
Plantatarium is focusing on what different consumers want from its offerings, that is, segmentation.
a. business-to-business
b. psychographic
c. benefit
d. repositioning

ANSWER: c

86. (Scenario 6-4) A small group of customers have mentioned that they would like to browse through several varieties
of cactus, so the Garretts have decided to devote a small corner exclusively to rare cacti. These customers
constitute an example of
a. market niche.
b. psychographic segmentation.
c. geographic segmentation.
d. demographic segmentation.

ANSWER: a

87. (Scenario 6-4) 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
a. positioning strategy.
b. VALS profile.
c. target market.
d. demographics.

ANSWER: a
DIFFICULTY: Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.6-4

NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion
KEYWORDS: Bloom's: Application
 Scenario 6-5
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 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 in which 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)
"Alleycat Club" - students who have maintained a 3.9 GPA or better - guaranteed bleacher seats for $1.00 to any
match (100 seats total)
88. (Scenario 6-5) Based on the planned schedule described here, students who have maintained a 3.9 GPA would be
described as one of the bowling team's
a. nonuser groups.
b. positioning strategies.
c. target segments.
d. diverse markets.

ANSWER: c

89. (Scenario 6-5) A group of about 30 students who are roommates and friends of the team members -- many are
casual bowlers themselves -- have attended every match for nearly three years. These students would best be
described as
a. competitive users.
b. emergent consumers.
c. heavy users.
d. variety seekers.

ANSWER: c
90. (Scenario 6-5) Each summer, the MSU Athletic Director looks at the city map, chooses a different local
neighborhood, and knocks on doors, encouraging residents to join one of the supporting clubs. He then keeps track of
which neighborhoods are the strongest supporters, and which may need more prompting in the future. In this way he
is using a segmentation strategy.
a. psychographic
b. heavy-user-focused
c. geographic
d. demographic

ANSWER: c

91. (Scenario 6-5) With the new plan, the bowling team is attempting to encourage local bowlers and other bowling
aficionados to come watch the team in action. This is an example of segmentation.
a. emergent
b. geographic
c. lifestyle
d. demographic

ANSWER: c

92. (Scenario 6-5) In marketing materials created to target fans, the slogan "Two hours of wholesome fun for all ages" is
used to attract ticket-buyers. This philosophy is an example of segmentation.
a. niche
b. demographic
c. geodemographic
d. benefit

ANSWER: d
DIFFICULTY: Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.6-2

NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion
KEYWORDS: Bloom's: Application
93. Think about a product that you have used in the past week. Using this as an example, explain the differences
between segmenting, targeting, and positioning in the STP approach to marketing.

ANSWER: Student examples will vary. Depending on the product, their approach to marketing will
vary also.
Segmenting involves breaking down large, heterogeneous, and diverse markets into
manageable submarkets, or customer segments. For segmenting to be useful, a
marketer must be able to reach these resulting submarkets with its message. One of
the most common ways to approach this task is by analyzing consumption patterns and
commitment levels (heavy users, nonusers, brand-loyal users, variety seekers or
switchers, emergent consumers). Other methods that are used include demographic,
geographic, geodemographic, psychographic, and benefit segmentation.
Targeting involves choosing the specific subgroupthe target segmentas the focal
point of the marketing efforts. Often, the largest segment is not chosen as the target,
but rather, it is the particular segment made up of certain individuals with similar
interests, needs, or lifestyles that may have a certain need or desire for the product.
Positioning involves designing and representing a product so it will occupy a distinct and
valuable space in the marketplace. Positioning strategy is created when a company
selects key themes and concepts to feature regarding the product when communicating
its distinctive qualities.
Overall, markets are segmented, while products are positioned.

94. Brownsworth Brothers Coffee is a mail-order business run by two brothers directly from their Hawaiian plantation.
They have targeted heavy users in the past, but theyre considering a new focus on college students. They are
considering switching target segments even though this group is comprised largely of people who dont drink coffee,
or have just started to drink coffee and don't consume anywhere near as much as the heavy users. What are the
disadvantages of the heavy-user strategy? What term is used to describe the college students the company is
considering targeting? What are the advantages of targeting this new segment?

ANSWER:
- DISC: Customer KEYWORDS:
Heavy users of Brownsworth Brothers Coffee may need no encouragement at all to
keep consuming. A heavy-user focus by an advertiser takes attention and resources
away from those who do need encouragement to purchase the marketer's brand.
Perhaps most importantly, various heavy users may be significantly different in terms
of their motivation to consume, their approach to the product, or their image of the
product.
The college students who may try Brownsworth Brothers Coffee are considered
emergent consumers. Their preferences are still under development. This target
audience may produce minimal profits in the short term. However, there is the strong
opportunity for gains in the long-term if they begin their initial coffee drinking with this
brand, like it, and get hooked on it. They may ultimately demonstrate brand preference,
or possibly even brand loyalty, for Brownsworth.
Bloom's: Application
95. What is the difference between a consumer market and a business market? Give an example of each. Then describe
how business markets are segmented, and use your example to explain your answer.

ANSWER: Consumer markets are basically made up of individuals, or householdsthose markets

for products and services that are purchased by people or their families and
housemates to fulfill various personal needs.
Business markets are made up of institutional and industrial buyers who purchase
items, parts, equipment, supplies, or other materials to be used in the production of
other goods and services, which are then resold to other businesses or directly to
households.
Business markets can be segmented in some ways similar to the methods used for
consumer markets, such as analyzing their usage rates and geographic locations. But
some methods used for consumerssuch as psychographic or lifestyle segmentation
normally do not translate well to business buyers. Instead, simple sales-related methods
are often used, such as identifying business markets based on their stage in the
purchase process. In this way, potential prospects, first-time buyers, or those new to
the market or industry can be targeted differently than long-standing business
customers, and can be specifically addressed by the companys advertisements and
promotions.

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

ANSWER: Niche marketing is based on the premise that smaller is often better when selecting
target segments. By definition, large segments are usually established segments that
many companies have identified and targeted previously. However, these large
segments may be poorly defined. Niche marketing involves identifying and serving a
relatively small group of consumers who have a unique set of needs. Typically, these
consumers are willing to pay a premium price to the firm that specializes in meeting
those needs. The small size of a market niche often means it would not be profitable
for more than one organization to serve it. Thus, when a firm identifies and develops
products for market niches, the threat of competitors developing imitative products to
attack the niches is reduced.
97. What is a positioning strategy? Explain the the BahrInterBrand positioning opportunity method.

ANSWER: A positioning strategy involves the selection of key themes or concepts that the
organization decides to feature to communicate the distinctiveness of its product. It
helps the consumer understand what the product does. It must be simple and
distinctive. Once the firm has segmented the market and selected its targets, the
positioning strategy should come naturally.
It can involve several themes:

One of the best positioning strategies comes from Anne Bahr, the former CEO of
InterBrand.This model shows that a brands best opportunity for success involves the
overlapping of four important factors: current relevance to the consumer, credibility or
consumer belief in the brand, differentiation or a recognition of uniqueness, and
stretch or the potential for consumer relevance over time.The point at which these
four meet is considered the best opportunity, the brands best position.
98. What is a value proposition? Explain why it is usefuleven criticalto an organization, to its brand, to its team, and
to its target audience.

ANSWER: A value proposition is a statement of the functional, emotional, and self-expressive

benefits offered by the brand. It acts as the basis for brand choice and customer
loyalty, which is critical to the ongoing success of a firm.
The value proposition offers a way to capture the full record of a brand and all of its
characteristics and benefits. It also provides a foundation and structure that will
maintain this information as new members join the team and work on new promotional
efforts for the brand. It is basically a way to capture the brand strategy on paper. It
makes things crystal clear about what is believed and known about the brand. That
way, everyone on the team can share this clear set of values, benefits, and other pieces
of information related to the brand.
But more important, the value proposition is what keeps the brand consistent in the
eyes of the target market. It consolidates all the customer benefits offered by a
product, and reminds consumers of these benefits.
Over time, different aspects can be built into the value proposition. Well-established
benefits reinforce one another, and new benefits are added to current ones. Some
brands -- national brands, and especially global brands -- are very involved and
complex, with long histories and decades of marketing efforts. They may now involve
branded entertainment, product placement, mobile marketing, online advertising, or
other relatively new promotional formats. The value proposition for these products is
even more important in order to keep all brand information clear and consistent
throughout all promotional efforts.