Principles Of Marketing Ist Edition By Mcgrahill Education – Test Bank

Chapter 11 Targeting

1) Carson has opened up a new sports bar/restaurant in town. He has determined that his market segments are (1) students from the nearby college campus, (2) families with small children, and (3) young adult males. Carson now has to determine which of these segments will provide him with the best opportunity to maximize sales. The process of doing this is referred to as
A) targeting.
B) positioning.
C) segmenting.
D) marketing.
E) repositioning.

Answer: A
Explanation: Targeting is the act of evaluating each market segment to determine which segment or segments present the most attractive opportunity to maximize sales.
Difficulty: 2 Medium
Topic: Defining Target Marketing
Learning Objective: Define target marketing and its importance in establishing a firm’s target marketing strategies.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

2) The group of customers toward which an organization has decided to direct its marketing efforts is called its
A) marketing segment.
B) primary segment.
C) primary market.
D) target market.
E) target sector.

Answer: D
Explanation: A target market is the group of customers toward which an organization has decided to direct its marketing efforts.
Difficulty: 1 Easy
Topic: Defining Target Marketing
Learning Objective: Define target marketing and its importance in establishing a firm’s target marketing strategies.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

3) After Carson opened up his new sports bar/restaurant, he determined that students from the nearby college campus will provide him with the best opportunity to maximize sales, so he is concentrating his marketing efforts on this group, which will be his
A) marketing segment.
B) primary segment.
C) primary market.
D) target market.
E) target sector.

Answer: D
Explanation: A target market is the group of customers toward which an organization has decided to direct its marketing efforts.
Difficulty: 2 Medium
Topic: Defining Target Marketing
Learning Objective: Define target marketing and its importance in establishing a firm’s target marketing strategies.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

4) According to your text, when selecting a target market, firms should consider three important factors: growth potential, level of competition, and
A) proximity to the market.
B) strategic fit.
C) profitability timeframe.
D) cultural factors.
E) economic conditions.

Answer: B
Explanation: Firms should consider three important factors during the targeting process: growth potential, level of competition, and strategic fit.
Difficulty: 2 Medium
Topic: Targeting Consumer Groups
Learning Objective: Describe how a firm chooses which consumer group(s) to pursue with its marketing efforts.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

5) What can be said of the level of competition when selecting a target market?
A) The more intense the competition within a segment, the more attractive it is to marketers.
B) The more competitors there are within a segment, the less of a chance there is for price wars.
C) The more competitors there are within a segment, the less a company will have to spend to reach out to consumers.
D) A market segment is less attractive to marketers if there are only a few competitors for that segment.
E) The more competitors there are, the more a firm will have to invest in promotion to increase market share.

Answer: E
Explanation: The more intense the competition within a segment, the less attractive it is to marketers.
Difficulty: 2 Medium
Topic: Targeting Consumer Groups
Learning Objective: Describe how a firm chooses which consumer group(s) to pursue with its marketing efforts.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

6) What factor of the targeting process is at work when a marketer ensures that the target market is appropriate for what the organization is and wants to be as defined in its mission statement?
A) growth potential
B) strategic fit
C) cultural awareness
D) organizational fit
E) segment harmony

Answer: B
Explanation: Marketers should work to ensure that the target markets selected fit with what the organization is and wants to be as defined in its mission statement.
Difficulty: 1 Easy
Topic: Targeting Consumer Groups
Learning Objective: Describe how a firm chooses which consumer group(s) to pursue with its marketing efforts.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

7) Which of the following represents the three basic strategies for targeting markets?
A) primary targeting, secondary targeting, and specialized marketing
B) targeting by product, targeting by price, and targeting by customer
C) demographic targeting, geographic targeting, and psychographic targeting
D) undifferentiated targeting, differentiated targeting, and niche marketing
E) print advertising, sales promotion, and public relations

Answer: D
Explanation: The three basic strategies for targeting markets include: undifferentiated targeting, differentiated targeting, and niche marketing.
Difficulty: 1 Easy
Topic: Target Marketing Strategies
Learning Objective: Differentiate among the key strategies for targeting a market.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

8) Undifferentiated targeting is a strategy that
A) approaches the marketplace as one large segment.
B) simultaneously pursues several different market segments with a different strategy for each.
C) involves pursuing a large share of a small market.
D) uses a different marketing strategy for each segment.
E) markets the same product to multiple regions.

Answer: A
Explanation: An undifferentiated targeting strategy approaches the marketplace as one large segment.
Difficulty: 1 Easy
Topic: Target Marketing Strategies
Learning Objective: Differentiate among the key strategies for targeting a market.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

9) The potential savings in developing and marketing the product is the major advantage of
A) a differentiated targeting strategy.
B) a geographic targeting strategy.
C) a niche marketing strategy.
D) a specialized marketing strategy.
E) an undifferentiated targeting strategy.

Answer: E
Explanation: An undifferentiated targeting strategy approaches the marketplace as one large segment. Its major advantage is the potential savings in developing and marketing the product.
Difficulty: 2 Medium
Topic: Target Marketing Strategies
Learning Objective: Differentiate among the key strategies for targeting a market.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

10) What type of targeting strategy works with uniform products for which the firm can develop a single marketing mix that satisfies the needs of all customers?
A) an undifferentiated targeting strategy
B) a geographic targeting strategy
C) a niche marketing strategy
D) a concentrated marketing strategy
E) a differentiated targeting strategy

Answer: A
Explanation: An undifferentiated targeting strategy approaches the marketplace as one large segment. It works best with uniform products, such as salt or bananas, for which the firm can develop a single marketing mix that satisfies the needs of all customers.
Difficulty: 2 Medium
Topic: Target Marketing Strategies
Learning Objective: Differentiate among the key strategies for targeting a market.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation