The major steps marketers follow to create a customer value-driven market strategy

Question 1

The major steps marketers follow to create a customer value-driven market strategy include ________.

segmentation, targeting, differentiation, and positioning

segmentation, separation, positioning, and placement

separation, positioning, placement, and pricing

segmentation, targeting, positioning, and pricing

Question 2

Segmenting buyers in any market entails ________.

dividing large, diverse markets into smaller segments that can be reached more efficiently and effectively

selecting the segment or segments to serve

dividing large, diverse markets into smaller segments that can be reached more efficiently and effectively and better meeting the unique needs of defined groups of buyers

better meeting the unique needs of defined groups of buyers

Question 3

Market segmentation strategies can include ________.

geographic

psychographic

All of the options are correct.

demographic

Question 4

Behavioral segmentation strategies ________.

can include occasions, benefits, user status, and/or usage rate

are used to segment a market based on knowledge, attitudes, or product uses and can include occasions, benefits, user status, and/or usage rate

are used to segment a market based on knowledge, attitudes, or product uses

are based on gender, age, and income

All of the options are correct.

Question 5

Income, ethnic background, gender, and age are all examples of ____________ segmentation bases.

geodemographic

organizational

demographic

psychographic

All of the options are correct.

Question 8

In market segmentation, a series of stages determined by a three-part combination of age, marital status, and the presence or absence of children is known as the ________.

demographic phase

segmentation cycle

family life cycle

maturation process

generation gap

Question 7

When selecting market segments to serve, which of the following should the marketer consider to focus on the most useful segment(s)?

Differentiability—segments respond differently to different marketing mix elements and programs

Size and purchasing power of the segment

All of the options are correct.

Accessibility of the market (that is, whether it can be reached easily)

Question 8

All efforts at market segmentation are meant to ________.

subdivide a large population into identical, smaller segments

identify consumers that share common characteristics that will lead them as a group to respond distinctively and positively to the right marketing program

find the market segment that will establish more than 50 percent of your market share

ensure that every product is unique

communicate with consumers in a way that consolidates market share to greater than 25%

Question 9

Creating an appropriate marketing mix for each of phase of the product life cycle—from development and introduction to the market through growth, maturity, and decline—requires a slightly different strategy. Which of the following statements is TRUE?

Appropriately managing the maturity stage of the product life cycle requires managing the marketing mix well.

All of the options are correct.

In a product’s maturity stage, when product sales growth increases, marketers worry most about out-spending the competition.

In a product’s growth stage, when sales are climbing quickly, promotion costs are spread over a larger production volume.

Question 10

Marketing objectives during the maturity phase of the product life cycle include ________.

maximizing market share

creating product engagement

maximizing profit

reducing expenditures

All of the options are correct.

Question 11

Pricing is an important part of the marketing mix. Broadly speaking, firms can follow which three main strategies when pricing goods and services?

Customer value-based, cost-based, and competition-based pricing

Fixed-cost pricing, variable-cost pricing, and total cost

Branding, perception, and consumer preference

Customer-perception based, profitability ratio, and supplier-based pricing

Competition-centered pricing, market price, and supplier price

Question 12

When setting a pricing strategy, marketers should ________.

consider all related products in the company’s product mix when setting pricing for an individual product

consider all related products in the company’s product mix when setting pricing for an individual product and consider what a consumer is willing to give up to acquire a good or service

All of the options are correct.

consider what a consumer is willing to give up to acquire a good or service

not consider variable or fixed costs

Question 13

New product pricing strategies are especially challenging; marketers must choose between which of the following broad strategies?

Market-pricing to base prices on what the market will bear and market skimming to “skim” off highly profitable segments

Product mix pricing and product line pricing

Market-skimming to “skim” off highly profitable segments and market-penetration to gain market share quickly

Cost-based pricing and value-based pricing

Values-based pricing and market penetration pricing

Question 14

Which of the following are reasons marketing managers choose to avoid a pricing strategy based on costs?

All of the options are correct.

If the price is too low, firms may unnecessarily sacrifice additional revenue.

Cost-based pricing ignores demand.

Prices determined strictly based on costs may be too high for the target market, thereby reducing or eliminating sales.

Question 15

Factors that affect price elasticity, or how responsive demand will be to a change in price, include all of the following except ________.

the availability of substitutes

market-skimming pricing strategy

the price relative to the consumer’s purchasing power

product durability or quality

the state of the economy

Question 16

Marketing managers setting pricing for a product line should take into account which of the following?

Cost differences between products in the line

Differences in consumer preference between products in the line

The availability of optional or captive products to be used with products in the line

All of the options are correct.

Question 17

Keurig, whose K-Cups account for over 75 percent of total sales, is following a ________ product pricing strategy with its K-Cups.

capstone

captive

affiliate

complementary

by-products

Question 18

Companies like McDonald’s are following ________ pricing strategies by offering value meals and Happy Meals.

by-products

segmented

product bundle

captive

price adjustment

Question 19

One of the ethical and legal issues that marketers must consider includes pricing. Which of the following represents a potential legal and/or ethical breach?

Lowering prices to a degree that “punishes” competitors

All of the options are correct.

Advertising product-pricing comparisons for products with wildly dissimilar benefits or features unknown to the consumer

Requiring dealers to charge a specified price for its product

Raising prices significantly very quickly without changing the product

Question 20

Marketers in some marketplaces have initiated electronic dynamic pricing systems that can change product pricing based on a range of market factors that affect supply and demand. Marketers can use this type of system because ________.

pricing changes can be coordinated on multiple levels, such as by product, by product line, by store location, or by type of store

sellers can optimize their profits more easily than with traditional pricing change methods

they want to combat the tendency of shoppers to use “showrooming” to check prices in-store and then buy online

pricing can be changed on millions of products in a matter of minutes

All of the options are correct.