Global Segmentation Marketing Quiz Questions
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Globalization refers to the process by which goods, services, capital, and ideas:
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Are onshored and offshored.
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Flow across national borders.
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Are intergraded through IMF facilitation.
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Form joint ventures.
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Can be purchased or paid with foreign currency.
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Explore key concepts in global market dynamics with this quiz on globalization, offshoring, trade policies, and economic indicators. Assess your understanding of how goods, services, and ideas cross borders and the economic implications of these movements.
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- 2.
Offshoring refers to:
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Globalization of production.
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Trading bloc outside agreements.
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Human development potential production.
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Cultural imperialism.
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Purchasing production parity.
Correct Answer
A. Globalization of production.Explanation
Offshoring refers to the practice of relocating business operations or production processes to another country, typically with lower labor costs. This allows companies to take advantage of global resources and access new markets. It is a key aspect of globalization, as it involves the internationalization of production activities. Offshoring can involve various industries, such as manufacturing, customer service, or software development. By moving production to countries with lower costs, companies can increase their competitiveness and potentially achieve higher profits. Therefore, the correct answer is "globalization of production."Rate this question:
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- 3.
The ________, agreed upon in 1948, was designed to lower trade barriers.
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World Bank
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European Union
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GATT
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WTO
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IMF
Correct Answer
A. GATTExplanation
The General Agreement on Tariffs and Trade (GATT), agreed upon in 1948, was designed to lower trade barriers. GATT aimed to promote international trade by reducing tariffs and other barriers to trade, such as quotas and subsidies. It provided a framework for negotiations and dispute resolution among member countries. GATT played a crucial role in expanding global trade and promoting economic growth. It was eventually replaced by the World Trade Organization (WTO) in 1995, which built upon the principles and rules established by GATT.Rate this question:
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- 4.
In general, the _______ the wealth of people in a country, _______ the opportunity a firm will have in that particular country.
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More stable; the better
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More diverse; the better
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More established and older; the worse
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More equal; the better
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Greater; the better
Correct Answer
A. Greater; the betterExplanation
The greater the wealth of people in a country, the better the opportunity a firm will have in that particular country. This is because wealthier individuals have more disposable income to spend on goods and services, creating a larger market for businesses. Additionally, higher levels of wealth often indicate a stronger economy and a more stable business environment, which can further benefit firms operating in that country.Rate this question:
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- 5.
Manufacturers would prefer to produce in a country with a trade__________, because it signals a greater opportunity to export products to more markets.
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Surplus
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Deficit
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Culture
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Bonus
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Balance
Correct Answer
A. SurplusExplanation
Manufacturers would prefer to produce in a country with a trade surplus because it indicates that the country is exporting more goods than it is importing. This suggests that there is a greater demand for products from that country in international markets, making it an attractive location for manufacturers. A trade surplus also implies that the country's economy is strong and stable, which can provide a favorable business environment for manufacturers.Rate this question:
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- 6.
GDP is defined as:
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The value of a country's exports minus its imports.
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Great Domestic Product.
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The market value of goods and services produced in a country in a year.
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National income minus national taxes.
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The gross purchasing power of domestic goods and services plus international income.
Correct Answer
A. The market value of goods and services produced in a country in a year.Explanation
The correct answer is "the market value of goods and services produced in a country in a year." GDP is a measure of the total value of all goods and services produced within a country's borders in a specific time period, typically a year. It includes the value of final goods and services produced for consumption, investment, government spending, and exports, but excludes the value of intermediate goods and services. GDP is an important indicator of a country's economic performance and is used to compare the economic growth of different countries.Rate this question:
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- 7.
When Darren assessed ___________ in Paraguay, he assessed the country's transportation, commerce, distribution channels, and communications capabilities.
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Economic foundations.
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Financial situations.
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Government core competencies.
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Socio-economic and cultural developments.
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Infrastructure conditions.
Correct Answer
A. Infrastructure conditions.Explanation
The correct answer is "infrastructure conditions." In the given question, Darren is assessing various aspects of Paraguay, including transportation, commerce, distribution channels, and communications capabilities. These aspects are all related to the infrastructure of the country, which refers to the basic physical and organizational structures and facilities needed for the operation of a society or enterprise. Therefore, it can be inferred that Darren is assessing the infrastructure conditions of Paraguay.Rate this question:
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- 8.
As part of their efforts to stimulate economic development in Africa, the Gates Foundation recently announced it would provide cellular phones to farmer cooperatives. The Gates Foundation recognized problems in ____________ exist in many African markets.
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Transportation
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Communication
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Distribution
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Commerce
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Population
Correct Answer
A. CommunicationExplanation
The Gates Foundation's decision to provide cellular phones to farmer cooperatives in Africa indicates that they recognized problems in communication exist in many African markets. By providing access to cellular phones, the foundation aims to improve communication channels for farmers, which can help stimulate economic development in the region.Rate this question:
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- 9.
If foreign companies try to gain market share in the U.S. by selling goods below what it costs to make them, the U.S. government can fine the companies and distribute the collected fines to affected U.S. companies. This foreign company's practice is known as:
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Countertrade.
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Reciprocal pricing.
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Quota dodging.
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Dumping.
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Unprincipled market penetration.
Correct Answer
A. Dumping.Explanation
Dumping refers to the practice of foreign companies selling goods in another country at a price below the cost of production or below the price charged in their home market. This is done to gain market share and drive out competition in the importing country. In this scenario, the foreign companies are selling goods below what it costs to make them in order to gain market share in the U.S. The U.S. government can fine these companies and distribute the collected fines to affected U.S. companies. Therefore, the foreign company's practice described in the question is known as dumping.Rate this question:
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- 10.
When Coca-Cola traded their soft drink for wine in Slovenia, the company was engaged in:
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Exchange control.
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Countertrade.
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Tariff trading.
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Quota trade.
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Global bargaining.
Correct Answer
A. Countertrade.Explanation
The correct answer is countertrade. Countertrade refers to the practice of exchanging goods or services instead of using money as a medium of exchange. In this case, Coca-Cola traded their soft drink for wine in Slovenia, which is an example of countertrade.Rate this question:
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- 11.
Marketers considering operations and trade with a specific country must consider whether the country is a trading bloc. A trading bloc is a group of countries:
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Which have established a formal agreement to manage trade activities.
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Using the same currency.
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Which have similar cultural shopping patterns.
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Located near each other.
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Which have similar political views.
Correct Answer
A. Which have established a formal agreement to manage trade activities.Explanation
The correct answer is "which have established a formal agreement to manage trade activities." This is because a trading bloc refers to a group of countries that have come together and formed a formal agreement to manage their trade activities. This agreement often includes measures such as reducing trade barriers, promoting economic cooperation, and facilitating the movement of goods and services between member countries. By considering whether a country is part of a trading bloc, marketers can assess the potential benefits and challenges of conducting business in that country, such as access to a larger market or potential trade restrictions.Rate this question:
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- 12.
The __________ represents the highest level of integration among participating nations, involving both economic and monetary agreements.
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NAFTA
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EU
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GNI
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ASEAN
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CAFTA
Correct Answer
A. EUExplanation
The EU represents the highest level of integration among participating nations, involving both economic and monetary agreements. The EU, or European Union, is a political and economic union of 27 member states located primarily in Europe. It has a common currency (the Euro) and a single market, allowing for the free movement of goods, services, capital, and people within its member states. The EU also has various institutions and policies that promote economic cooperation and coordination among its members, making it the most integrated regional organization in terms of economic and monetary agreements.Rate this question:
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- 13.
Culture affects:
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How consumers decide to make their purchase.
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What consumers decide to purchase.
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When consumers decide to make their purchases.
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Where consumers decide to make their purchases.
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Every aspect of a consumers purchase decision.
Correct Answer
A. Every aspect of a consumers purchase decision.Explanation
Culture refers to the beliefs, values, customs, and behaviors that are shared by a group of people. It plays a significant role in shaping consumer behavior. Culture influences how consumers decide to make their purchase by determining the decision-making process, such as whether to consult others or rely on personal preferences. It also influences what consumers decide to purchase by shaping their preferences, needs, and desires. Additionally, culture affects when consumers decide to make their purchases by influencing their perception of time, such as the importance of punctuality or the significance of certain holidays. Lastly, culture influences where consumers decide to make their purchases by determining their preferred shopping channels, such as online or physical stores. Overall, culture has a pervasive impact on every aspect of a consumer's purchase decision.Rate this question:
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- 14.
Generally, firms entering foreign markets begin with:
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Less risky strategies first.
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Direct investment.
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Importing.
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Decentralized production.
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Cultural output.
Correct Answer
A. Less risky strategies first.Explanation
When firms enter foreign markets, they often start with less risky strategies first. This allows them to test the waters and gain experience in the new market before committing to more substantial investments. Importing is a common entry strategy as it involves lower costs and risks compared to direct investment or decentralized production. Cultural output is not a typical entry strategy and does not align with the concept of starting with less risky strategies.Rate this question:
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- 15.
Global segmentation, targeting, and positioning (STP) is more complicated than local STP because:
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Consumers may view their role differently in different countries.
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There are fewer franchising opportunities in global markets.
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Consumer markets are almost totally homogenous in global markets, making segmentation difficult.
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Most governments have rules against targeting consumers.
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Positioning is limited to only locally-based businesses.
Correct Answer
A. Consumers may view their role differently in different countries.Explanation
Global segmentation, targeting, and positioning (STP) is more complicated than local STP because consumers may view their role differently in different countries. This means that consumer behavior, preferences, and needs can vary significantly across different cultures and countries. Therefore, companies need to adapt their marketing strategies and tailor their products or services to suit the specific needs and expectations of consumers in each country. This requires a deeper understanding of cultural differences, consumer behavior, and market dynamics, making global STP more complex and challenging compared to local STP.Rate this question:
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- 16.
Coca-Cola introduced Coke Zero to increase sales without taking away from its existing product sales. Which of the following is not true about this effort?
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Segmentation and targeting were of little use compared to developing appealing special advertising.
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The word "diet" was not used in promotion because the targeted segment of men did not react favorably to the "girly" connotations.
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A special fantasy football game was created to help promote the product to the targeted segment.
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Although Coke has more than 400 products, sales to carefully targeted segment could greatly increase total sales.
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Although the market for cola is mature, Coke plans to adapt the current productions and services to meet the needs of changing market climate using the segmentation ideas developed in the launch of Coke Zero.
Correct Answer
A. Segmentation and targeting were of little use compared to developing appealing special advertising.Explanation
The statement "Segmentation and targeting were of little use compared to developing appealing special advertising" is not true about Coca-Cola's effort to introduce Coke Zero. The passage mentions that Coke Zero was targeted towards a specific segment of men, and the word "diet" was not used in promotion to avoid negative connotations. Additionally, a special fantasy football game was created to help promote the product to the targeted segment. This indicates that segmentation and targeting were important factors in the marketing strategy for Coke Zero.Rate this question:
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- 17.
Sally is in the new marketing department of a mid-sized lawn and garden company. She is working on the first marketing plan the firm has ever used. She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to:
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Develop an advertising plan to promote the upcoming sales.
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Find marketing interns or hire new staff to help with implementation.
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Create pro forma financial statements to complete the package.
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Identify and evaluate opportunities by creating a segmentation, targeting and positioning analysis.
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Use the internet, catalogs and vendor information to draw up a list of new products.
Correct Answer
A. Identify and evaluate opportunities by creating a segmentation, targeting and positioning analysis.Explanation
The next step for Sally in developing the marketing plan is to identify and evaluate opportunities by creating a segmentation, targeting, and positioning analysis. This step involves analyzing the market to identify specific segments of customers, selecting target segments to focus on, and determining how to position the company's products or services to appeal to those target segments. This analysis will help Sally understand the market landscape and make informed decisions on how to effectively reach and engage potential customers.Rate this question:
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- 18.
____________ involves defining the firms marketing mix variables so that target consumers have a clear, distinctive, and desirable understanding of the firms offerings relative to competitors offerings.
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Processing
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Perceptualizing
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Positioning
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Proportioning
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Prospecting
Correct Answer
A. PositioningExplanation
Positioning involves defining the firm's marketing mix variables so that target consumers have a clear, distinctive, and desirable understanding of the firm's offerings relative to competitors' offerings. This process helps the firm to establish a unique and favorable position in the minds of consumers, enabling it to differentiate itself from competitors and attract the target market. By effectively positioning its products or services, a firm can communicate its value proposition and create a competitive advantage in the market.Rate this question:
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- 19.
A ___________ is often used to illustrate the position of a firm's products or brands in consumers minds.
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Mass marketing analysis
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VALS summary
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Perceptual map
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Loyalty timeline
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Globe
Correct Answer
A. Perceptual mapExplanation
A perceptual map is often used to illustrate the position of a firm's products or brands in consumers' minds. It is a visual representation that helps to understand how consumers perceive different products or brands in relation to each other. It shows the relative positioning of products based on specific attributes or characteristics that are important to consumers. By using a perceptual map, firms can identify their competitive advantage, understand consumer preferences, and make strategic decisions to differentiate their products or brands in the market.Rate this question:
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- 20.
If a marketer feels the need to abandon the current configuration of the marketing mix for any number of reasons to revitalize the product or service, one preferred option is ________________.
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Lifestyle symbolization utilization
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Strategic target concentration
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Self-value determination
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Ideal point perception planning
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Repositioning
Correct Answer
A. RepositioningExplanation
Repositioning is the preferred option when a marketer wants to abandon the current marketing mix configuration to revitalize the product or service. Repositioning involves changing the perception and positioning of the product or service in the minds of consumers. It may involve targeting a different market segment, changing the product's features or benefits, or altering the marketing strategy. By repositioning, the marketer aims to breathe new life into the product or service and attract a larger or different customer base.Rate this question:
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- 21.
Adidas Group owns Reebok, Rockport, and Greg Norman brands. Adidas uses the different brands to pursue a(n)_______________ strategy.
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Concentrated segmentation.
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Micromarketing segmentation.
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Benefit segmentation.
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Differentiated segmentation.
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Undifferentiated segmentation.
Correct Answer
A. Differentiated segmentation.Explanation
The correct answer is differentiated segmentation. This is because Adidas Group owns multiple brands, such as Reebok, Rockport, and Greg Norman, and each brand targets a different segment of the market. By using different brands to pursue different segments, Adidas is employing a differentiated segmentation strategy. This allows them to cater to the specific needs and preferences of each segment, rather than adopting a one-size-fits-all approach.Rate this question:
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- 22.
When Penguin Catering Services first opened, the owner decided to target only events a nearby resorts. Penguin Catering was using a ______________ segmentation strategy.
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Concentrated
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Micromarketing
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Benefit
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Differentiated
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Undifferentiated
Correct Answer
A. ConcentratedExplanation
The correct answer is concentrated. This is because Penguin Catering Services decided to target only events at nearby resorts, indicating a focused approach towards a specific market segment. A concentrated segmentation strategy involves targeting a single, specific market segment with specialized products or services.Rate this question:
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- 23.
For products like pencils and paperclips which provide the same benefit for all consumers, marketers should probably use an:
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Concentrated segmentation strategy.
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Lifestyle segmentation strategy.
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Benefit segmentation strategy.
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Undifferentiated segmentation strategy.
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Concentrated segmentation strategy.
Correct Answer
A. Undifferentiated segmentation strategy.Explanation
An undifferentiated segmentation strategy is the most suitable for products like pencils and paperclips because these products provide the same benefit for all consumers. With an undifferentiated strategy, marketers treat the entire market as a single segment and develop a single marketing mix to target all consumers. This approach is cost-effective and efficient for products that do not require customization or targeting specific consumer groups. It allows marketers to focus on mass production and distribution, maximizing economies of scale and reaching a larger customer base.Rate this question:
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- 24.
While a differentiated marketing strategy can allow a firm to obtain a bigger share of the overall market, one problem is it can also be:
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Ideal.
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Synthetic.
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Cheap.
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Expensive.
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Invaluable.
Correct Answer
A. Expensive.Explanation
A differentiated marketing strategy involves targeting different segments of the market with unique products or marketing messages. While this approach can help a firm gain a larger market share, it can also be expensive. Developing and promoting multiple products or messages requires additional resources and investment. This can include costs associated with research and development, production, marketing campaigns, and distribution. Therefore, implementing a differentiated marketing strategy can be costly for a firm.Rate this question:
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- 25.
______________ is an extreme form of a segmentation strategy.
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Macromarketing
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Micromarketing
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Benefit marketing
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Differentiated segmentation
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Undifferentiated segmentation
Correct Answer
A. MicromarketingExplanation
Micromarketing is an extreme form of a segmentation strategy because it focuses on targeting very specific and niche market segments. Unlike other segmentation strategies that may target broader groups of consumers, micromarketing aims to tailor marketing efforts to the individual needs, preferences, and characteristics of a small and specific segment of the market. This approach allows for highly personalized and targeted marketing messages and campaigns, which can result in higher levels of customer satisfaction and engagement.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
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May 03, 2012Quiz Created by
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