Customer Driven Marketing Strategy: Creating Value for Target Customers

Chapter 7 Customer-Driven Marketing Strategy: Creating Value for Target Customers

1) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________.
A) concentrated marketing
B) mass marketing
C) market targeting
D) segmenting
E) differentiation
Answer: C
Diff: 2 Page Ref: 191
Skill: Concept
Objective: 7-1

2) What are the four steps, in order, to designing a customer-driven marketing strategy?
A) market segmentation, differentiation, positioning, and targeting
B) positioning, market segmentation, mass marketing, and targeting
C) market segmentation, targeting, differentiation, and positioning
D) market alignment, market segmentation, differentiation, and market positioning
E) market recognition, market preference, market targeting, and market insistence
Answer: C
Diff: 2 Page Ref: 191
Skill: Concept
Objective: 7-1

3) Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more ________ with products and services that match their unique needs.
A) efficiently
B) effectively
C) intensely
D) indirectly
E) both A and B
Answer: E
Diff: 2 Page Ref: 192
Skill: Concept
Objective: 7-2

4) Even though several options are available at any one time, there ________ to segment a market.
A) is one single best way
B) is no single way
C) is a most effective way
D) are limited ways
E) are four ways
Answer: B
Diff: 2 Page Ref: 192
Skill: Concept
Objective: 7-2
5) Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be ________ segmentation.
A) geographic
B) benefit
C) end-use
D) customer
E) image
Answer: A
Diff: 1 Page Ref: 193
Skill: Concept
Objective: 7-2

6) Pendergraff Pet Supplies divides the pet market according to the owners' race, occupation, income, and family life cycle. What type of segmentation does Pendergraff