Ch. 7 Marketing

Most people belong to several market segments.

• True

• False

Organizing customers into groups based on how frequently they use a product or service is an example of product usage segmentation.

• true

• false

Offering different soaps for consumers with dry skin, sensitive skin, and oily skin is an example of benefit segmentation.

• True

• False

The potential for tee-shirts sold in a tourist area during the summer season is $100,000. You plan to introduce a better line of tee-shirts at a comparable price and capture 20 percent of the market in your first season. Your planned market share in dollars is

• $10,000

• $100,000

• $20,000

• $200,000

Competition in a market with businesses that offer the same type of product or service is best described as ____________________.

• direct competition

• indirect competition

• nonprice competition

• market intelligence

An example of indirect competition would be competition between a movie and netflix.

• True

• False

Nonprice competition is INeffective when the market segment values something other than price.

Responses

• true

• false

Consumers do not benefit from competition.

• true

• false

In order to compete effectively, it is important to learn as much as possible about your competitors' marketing strategies.

• true

• false

When studying competitors, more effort is often focused on promotional efforts of the marketing mix than any of the others?

• true

• false