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Ch4
According to the LEGO case, which of the following is among the keys to LEGO’s success?
Developing different products specific to different demographic groups
A(n) _____
consists of potential customers with similar needs who are willing to exchange something of value with sellers in order to receive a good or service.
Market
Which of the following do production-oriented managers do? (Check all that apply.)
They focus on the products they sell.
They miss opportunities by ignoring the market.
What type of market is one in which potential customers have similar, but not identical, needs and are offered various and diverse ways to satisfy those needs?
Generic
A(n) ______
market consists of customers with very similar needs and sellers offering a number of closely related ways of satisfying those needs.
product
After recently surveying almost 7,000 parents and children, on which traits did LEGO decide to primarily base segmentation?
Age
Geographic location
A group of people can be considered a market if which of the following are true?
they have similar needs
they are willing to exchange something of value to satisfy their needs
What is the primary disadvantage of the production-oriented marketing approach?
It leads to missed opportunities by ignoring customers.
A market consists of customers with broadly similar needs and many different options for satisfying them.
Generic
Beverage enthusiasts might purchase a wine club membership, buy an espresso machine, or book a trip to Japan to tour green tea plantations. This is an example of a(n) _____
market. Generic
A group of potential customers with similar requirements who are choosing between a number of closely related products are part of a ______-market.
Product
When a marketing manager thinks about the needs customers want satisfied, rather than how one product beats another, this marketing manager is looking more broadly at the
Blank
______
market.
Generic
Terms such as generic market and product-market are examples of ______
market definitions that can be useful to firms searching for opportunities.
Broad
Exercise enthusiasts are a broadly defined market who might purchase an exercise bike, health club membership, or workout apparel to satisfy their needs. This is an an example of what kind of market?
Generic
Jenna's company exports tea to various markets around the world. In the past six months, the company has
focused on developing new flavors and was surprised to learn that a competitor gained market share by expanding into four new foreign countries. Which part of a product-market did Jenna's company fail to take into account?
Geographic area
According to the product-market definition, a customer type refers to ______.
the expected end user of a product, regardless of who purchases the product
Within a generic market, sellers must focus on______.
the needs of customers
Which of the following are true of a successful product-market? (Check all that apply.)
It is defined as the scope of the market in which a firm will compete.
It helps focus and sharpen a firm's marketing strategy.
The
relevant
market that a firm has for finding opportunities should be _____
the firm's present product-
market.
Bigger
Which of the following is
not
part of a complete product-market definition?
Organization type
Market definitions for both a product market and a generic market have which of the following in common?
Customer needs, customer type, and geographic area
Infant formula and diapers provide
Blank
______
benefits and satisfy a customer need.
functional
Explicitly stating that a firm will market to business customers rather than unaffiliated consumers is an important aspect of a manager's ______
since this clearly establishes the markets in which the firm will compete.
market definition
With regard to the target market, which of the following must marketing-oriented managers do?
They must focus on specific target markets.
The market segmentation process consists of which of the following? (Check all that apply.)
Segmenting broad product markets into select target markets
Naming broad product markets
A market description that does
not
include any product-type terms is a(n) ______.
generic market description
If a firm decides that it will offer its products in the North American market, it has defined the ______
of its marketing strategy.
geographic area
The first step in effective market segmentation should be to name a broad product-market of interest to the firm.
True
How many steps are there in the market segmentation process?
2
A market ______
is a group of customers with similar needs who will have a similar response to a marketing mix.
Segment
Generic markets focus primarily on product type.
False
Market segmentation is different from the naming process in that it focuses on_____
rather than _____
in customer needs.
similarities; differences
To achieve effective market segmentation, markets should first disaggregate the needs of customers. This means the company should
_____.
break apart all possible needs into some generic markets
A "good" market segment should be ______
in that the segmenting dimensions should be useful for identifying customers and deciding on marketing mix variables
operational
A marketing manager attempting to segment a market using two demographic characteristics is likely to fail because ______.
customer behavior cannot be explained using such narrow segmenting criteria
Customers in different market segments are considered ______
when there are significant differences between their segmenting dimensions and responses to marketing mix variables.
heterogeneous
A group of customers with shared characteristics who are expected to have a similar response to a marketing mix is known as a
market segment.
Since broad product-markets can have many submarkets, target marketers have ______.
a choice among many possible target markets
The segmentation process begins with the idea that ______.
people with certain shared characteristics can be grouped together into a single product-market
Selecting one homogeneous market segment as the firm's target market is called the target market approach.
Single
Which of the following are qualities of "good" market segments? (Check all that apply.)
Customers in different market segments have significant differences in characteristics and responses to marketing mix variables.
The dimensions used to define the marketing segment help identify potential customers and effective marketing mix variables.
Customers within a market segment have similar characteristics and responses to marketing mix variables.
The market segment is broad enough to be profitable for the firm.
When customers in different segments differ in their response to marketing mix variables, the segments are
______.
heterogeneous
the target market approach requires choosing two or more marketing segments and applying a different marketing mix to each.
Multiple
Within a broad product-market, there is only one way to develop market-oriented strategies.
False
The single target market approach involves ______.
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