Segmentation

A ________ consists of a group of customers who share a similar set of needs and wants.

• vertical marketing system

• market basket

• market share

• market segment

• market level

The process of selecting one or more market segments to enter is called market ________.

• targeting

• dominance

• positioning

• segmentation

• research

Establishing and communicating the distinctive benefit(s) of the company's market offering for each target segment is called ________.

• market research

• market positioning

• marketing effectiveness

• market segmentation

• market dominance

If a marketer decides to segment a market based on neighborhoods, the marketer will have chosen the ________ method of segmentation.

• demographic

• psychographic

• geographic

• cultural

• behavioral

If a marketing manager segments the market into culture-, sports-, or outdoor-oriented groups, he or she is segmenting the market on the basis of ________.

• loyalty status

• behavioral occasions

• user status

• psychographic lifestyle

• readiness stage

Newlyweds in the United States buy more in the first six months than an established household does in five years. Newlyweds are an example of a(n) ________ segment.

• life stage

• age

• behavior

• user status

• income

In ________ marketing, the firm ignores segment differences and goes after the whole market with one offer.

• niche

• mass

• guerrilla

• segmented

• differentiated

In ________ marketing, the firm operates in several market segments and designs different products for each segment.

• individual

• undifferentiated

• differentiated

• concentrated

• niche

All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment's needs, a strong market presence, operating economies through specializing in production, distribution, and promotion.

• single-segment concentration

• selective specialization

• product specialization

• market specialization

• full market coverage

Which of the following best represents the chief advantage of pursuing a selective specialization multisegment strategy?

• It makes the company almost bulletproof to competitors' actions.

• It diversifies the firm's risk.

• It creates synergy between markets.

• It is a low-cost strategy.

• It treats all buyers the same and, therefore, lowers promotion costs.