Test Bank For Advertising and Integrated Brand Promotion 6th Edition Oguinn

Test Bank for Advertising and Integrated Brand Promotion, 6th Edition: OGuinn
Test Bank for Advertising and Integrated Brand

Promotion, 6th Edition: OGuinn
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Chapter 6 - Market Segmentation, Positioning, and the Value Proposition
TRUE/FALSE
1. When a brand team defines the target market of consumers for their product, they may also identify
many smaller subsets of consumers within their broad market.
ANS: T DIF: Moderate REF: p. 211 OBJ: 6-1

NAT: AACSB Analytic | CB&C Model Customer TYP: Comprehension
2. In the world of advertising, markets are positioned, but products are segmented.
ANS: F DIF: Easy REF: p. 212 OBJ: 6-1

NAT: AACSB Analytic | CB&C Model Product TYP: Comprehension
3. STP marketing includes three factors—identifying, positioning, and informing.

NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
4. If General Mills decides to use the STP framework, it can divide its resources to reach a number of
separate and distinct market segments.
ANS: T DIF: Difficult REF: p. 212 OBJ: 6-1

NAT: AACSB Analytic | CB&C Model Promotion TYP: Application
5. The success seen from applying the STP framework is often long-term.
ANS: F DIF: Moderate REF: p. 213 OBJ: 6-1

NAT: AACSB Analytic | CB&C Model Promotion TYP: Comprehension
6. Companies can do well by spending advertising dollars to target nonusers over other user groups, since
they offer the highest level of opportunity.
ANS: F DIF: Easy REF: p. 214-215 OBJ: 6-2

7. Spending advertising dollars to get “switchers” to buy your brand may seem like a good idea, but it
often results in only one-time or random purchases.

8. Demographic segmentation is used in selecting target segments by focusing on consumers’ descriptors

such as their values, beliefs, philosophies, and opinions.

NAT: AACSB Communication | CB&C Model Customer TYP: Knowledge
9. Demographics are rarely used to describe or profile target segments that have already been identified
as prospects by other variables.
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10. Psychographic segmentation focuses on the inner mindset of consumers rather than outer aspects of
their lives such as activities, interests, and lifestyles.

NAT: AACSB Communication | CB&C Model Customer TYP: Application
11. Today, advertising tends to be used almost exclusively by businesses targeting consumer markets, and
only in very rare circumstances by businesses trying to sell products to other businesses.

12. If an advertiser sees a large potential segment being served by a competitor with a big budget, it might
consider identifying and targeting smaller groups within that large segment.

13. One drawback of niche marketing is that a company often has to reduce the price of its product due to
the smaller volume of sales it can expect.

NAT: AACSB Analytic | CB&C Model Pricing TYP: Application
14. Any meaningful positioning strategy needs to include several broad elements in its message—
including attention-getting, variety, flexibility, and complexity.

15. A gourmet ice cream franchise advertises itself as offering thick, creamy, gooey treats, calling them
delectable, desirous, and decadent—the richest and sweetest desserts found anywhere in America. The
owner of the local shop buys ads focusing on extended hours and friendly service. This is an example
of internal consistency.
ANS: F DIF: Difficult REF: p. 224 OBJ: 6-4

NAT: AACSB Reflective Thinking | CB&C Model Promotion TYP: Application
16. State Farm’s “Like a Good Neighbor” ad campaign is an example of consistent positioning over time.
ANS: T DIF: Easy REF: p. 225 OBJ: 6-4

NAT: AACSB Communication | CB&C Model Strategy TYP: Application
17. When formulating a positioning strategy, a multiple-benefits approach is strongly suggested to satisfy
many markets at the same time, because it alerts consumers to a wide array of diverse functions and
positive consequences related to the product.

18. Functional benefit positioning does not really give any brand an edge in many well-established product
categories, because they all offer the same or similar functional benefits.

19. When Tylenol's competitor, Excedrin, touted its benefit as providing pure headache relief unlike
Tylenol's flu and cold symptom relief, Excedrin implemented user positioning.

20. The ad for the Xootr adult motorized scooter is an example of choosing only one positioning
strategy—user positioning—to simplify the message.
ANS: F DIF: Difficult REF: p. 228-229 OBJ: 6-4

21. One waste of advertising dollars is seen when a firm attempts to revive an ailing brand or boost a poor
performance in a certain market by trying to reposition the brand in the consumer’s mind.

NAT: AACSB Analytic | CB&C Model Customer TYP: Application
22. A brand’s value proposition is a statement of the benefits of the brand that provide value to its target
consumers and includes functional, emotional, and self-expressive benefits.

23. When ad agency professionals are creating a campaign for a huge global retail firm with complex
value propositions, in all likelihood, no single ad can be expected to reflect all aspects of the brand’s
value.

NAT: AACSB Reflective Thinking | CB&C Model International Perspective
TYP: Application
24. The strategic planning triangle suggested by Thorson and Moore features as its three main aspects the
campaign’s segments, its value proposition, and its persuasion tools.
ANS: T DIF: Moderate REF: p. 231-232 OBJ: 6-5

MULTIPLE CHOICE
1. Folgers launched a new brand initiative called “Happy Mornings: The Revenge of the Yellow People.”
Using STP, the company changed its brand positioning as part of a strategy that
a. addresses members of a new target group in terms that are relevant to their lifestyles.
b. focuses on the happiness of the mornings by reinventing its traditional slogan.
c. uses nostalgia from 1950s monster movies to remind boomers to drink their brand.
d. brings color to the brand reputation.
ANS: A DIF: Moderate REF: p. 210-211 OBJ: 6-Intro
2. The Folgers brand team looked at the diverse market of all coffee drinkers, then broke it down by age.
When the team chose to focus on just-graduated-20-somethings, it was
a. benefit positioning.
b. positioning.
c. targeting.
d. segmenting.
ANS: C DIF: Easy REF: p. 211-212 OBJ: 6-1
NAT: AACSB Diversity | CB&C Model Customer TYP: Application
3. Overall, _____ marketing has been very effective for many firms and agencies because it leads to
decisions about who to attract, what to propose to them, and how to reach them.
a. business-to-business
b. point-of-entry
c. STP
d. consumer
ANS: C DIF: Easy REF: p. 212 OBJ: 6-1
NAT: AACSB Analytic | CB&C Model Promotion TYP: Knowledge
4. What is the first step in STP marketing, as demonstrated in the Folgers campaign and explained in
detail later in the chapter?
a. market segmentation
b. position strategy
c. benefit positioning
d. target marketing
ANS: A DIF: Easy REF: p. 212| p. 214
OBJ: 6-1 NAT: AACSB Analytic | CB&C Model Promotion
TYP: Knowledge
5. The Folgers team aligned its marketing mix in a design that would represent a particular identity,
showcasing certain themes and values, shaped to gain distinctive approval from the just-graduated-
20-somethings. This demonstrates
a. differentiating.
b. targeting.
c. segmenting.
d. positioning.
ANS: D DIF: Moderate REF: p. 212 OBJ: 6-1
6. What does the acronym STP mean?

a. Sales, Target, Product
b. Sell To People
c. Segmenting, Targeting, Positioning
d. Sell The Product
7. The selection of key themes or concepts that the organization will feature when communicating with
customers about their brand is known as
a. market segmentation.
b. marketing mix.
c. positioning strategy.
d. STP marketing.
8. The STP approach is highly recommended when markets are characterized by strong elements of
a. diversity.
b. brand loyalty.
c. a single demographic.
d. habitual purchasing.
ANS: A DIF: Moderate REF: p. 212 OBJ: 6-1
9. Even successful marketing strategies for well-known products need to be modified or reinvented
because
a. new advertising cannot sell old products.
b. consumers are not influenced by messages heard over long periods of time.
c. government regulation does not allow long-term strategies.
d. changes are always occurring in dynamic and competitive markets.
10. The purpose behind all efforts at market segmentation is to identify the
a. unique aspects of the product being offered.
b. consumers with common characteristics that will lead to a positive response.
c. largest market that might possibly be interested in the product.
d. demographics of individuals already buying competitors’ products.
ANS: B DIF: Moderate REF: p. 214 OBJ: 6-2
11. For most products and services, the category of ____ accounts for the majority of product sales and for
this reason becomes the preferred target segment among all potential consumers.
a. switchers
b. niche buyers
c. heavy users
d. variety seekers
ANS: C DIF: Moderate REF: p. 214 OBJ: 6-2
NAT: AACSB Communication | CB&C Model Customer TYP: Comprehension
12. As a segment, variety seekers tend to

a. offer the smallest opportunity for a firm seeking regular buyers.
b. buy brands based on sales, discount coupons, or other incentives.
c. fall into certain predictable demographic patterns.
d. be unusually enthusiastic and often excessive in their purchasing activities.
13. Which segment type of consumer specifically offers marketers an important opportunity to build future
business by luring first-time buyers?
a. switcher
b. brand-loyal
c. variety seeker
d. emergent
14. The one key characteristic that all types of _____ share is that their brand preferences are still under
development.
a. variety seekers
b. brand-loyal users
c. heavy users
d. emergent consumers
ANS: D DIF: Easy REF: p. 215 OBJ: 6-2
15. A campaign is specifically designed to identify those who are emerging in its product market, for
many reasons and under many circumstances, and then win them over as first-time users. This
campaign is making use of
a. competitive fields.
b. geographic statistics.
c. geographic segmentation.
d. point-of-entry marketing.
NAT: AACSB Communication | CB&C Model Promotion TYP: Application
16. Characteristics and traits such as age, gender, race, marital status, income, education, and occupation
are widely used in ____ segmentation.
a. geographic
b. psychographic
c. competitive
d. demographic
NAT: AACSB Diversity | CB&C Model Customer TYP: Knowledge
17. Though advertisers cannot predict the future, what is one key element that may influence their
decisions in years to come concerning the demographic group called "woopies"?
a. They are identified by free spirits in their 20s and 30s who have yet to commit to long-
term careers, relationships, lifestyles, or even geographic locations.
b. They represent the youngest demographic segment in the U.S., based on babies born in the
past five years.
c. They will make up one-third of the U.S. population by 2025, those age 50 and older.
d. They consist of pre-teens and early adolescents, who will have great buying power within
a few years.
ANS: C DIF: Difficult REF: p. 216 OBJ: 6-2
18. Climate, topography, community size, and national region have been found to make dramatic
differences in consumption, including habits involving eating and food preparation, entertainment, and
recreation.This is an example of ____ segmentation.
a. psychographic
b. behavioral
c. geographic
d. geodemographic
19. Which system has identified 62 market segments based on zip codes and the personal characteristics of
their residents, creating a well-known tool for geodemographic segmentation?
a. Thorson and Moore’s model
b. PRIZM
c. SIC Codes
d. VALS
ANS: B DIF: Easy REF: p. 217 OBJ: 6-2
20. Psychographics emerged in the 1960s as a new research method, one that would better understand
consumer’s
a. PRIZMs.
b. SICs.
c. AIOs.
d. STPs.
21. An ad agency marketing a line of office products segments a consumer market using PRIZM data and
then segments a business market using SIC data. These two systems have one thing in common, in that
they both involve
a. geographic locations of markets.
b. target markets already categorized by gender and age.
c. psychographic data.
d. extensive consumer interviews.
ANS: A DIF: Moderate REF: p. 217| p. 220
OBJ: 6-2 NAT: AACSB Analytic | CB&C Model Promotion
TYP: Comprehension
22. Which company was highlighted in the text because it interviewed 3,000 consumers and created five
distinct segments that it could then target in different ways, customizing lifestyle segmentation with a
particular focus?
a. Estée Lauder
b. Folgers
c. Mobil
d. Pillsbury
NAT: AACSB Analytic | CB&C Model Customer TYP: Knowledge
23. “Careful Cooks,” “Down-Home Stokers,” and “Functional Feeders” are all segments identified by a
major food company based on ____ segmentation.
a. geopsychographic
b. niche
c. repositioned
d. lifestyle
24. One well-known research classification system is VALS, which has identified a number of segments
a. based on entirely different traits beyond standard demographics.
b. created largely by geographic location.
c. to identify groups of consumers with different product usage rates.
d. with no particular category as a focus.
25. A firm hires an agency to attract barbers, spas, and hair salons with its line of hair care products,
grooming equipment, and professional tools. The agency will be specifically involved in
a. psychographic research.
b. business-to-business marketing.
c. the competitive field
d. lifestyle segmentation.
26. Two fundamental questions must be asked by an advertiser when trying to determine which market
segment to target. They are "What do members of the segment want in a product?" and
a. "How much are they willing to pay for it?"
b. "Is the segment currently growing?"
c. "What are they willing to settle for?"
d. "Can my company provide it?"
27. A major criterion to consider during segment selection involves the companies that are vying for that
segment’s business. What term is used to define this concept?
a. ad clutter
b. business market
c. competitive field
d. target market
28. What is a market niche?

a. A small group of consumers with unique needs and who typically are willing to pay a
premium to have those needs met.
b. A small segment that a firm tries to dominate but ultimately shares with many other
competitors.
c. A competitive position that has cost a firm in time and money but has shown little
profitability.
d. Astrategy that positions the firm's brand as close to the market leader as possible.
ANS: A DIF: Easy REF: p. 222 OBJ: 6-3
29. In Mobil’s positioning as the "Friendly Serve" station, it had many good reasons to select the particular
target market that it did. But one issue that was NOT a factor was that the segment
a. spent the largest amount of money at service stations.
b. had the greatest number of consumers in sheer numbers.
c. had potential for growth.
d. bought little extras besides just gas.
30. A fast-food restaurant is attempting to position itself as the best choice when you're in a hurry because
it serves all customers within 90 seconds. To maintain internal consistency, the firm might take all of
the following steps below, EXCEPT for which one?
a. expanding on its menu
b. adding extra drive-up windows
c. hiring more order-takers
d. hanging up digital timers behind the counter
31. Several essential characteristics have been found to be necessary to build an effective positioning
strategy. In a nutshell, it should be
a. bold, aggressive, and unique.
b. broad, universal, and all-encompassing.
c. meaningful, consistent, and simple.
d. substantive, familiar, and flexible.
32. One big plus from a product position that stays consistent over time, like State Farm's “Good
Neighbor” campaign, is that it
a. is more likely to break through advertising clutter.
b. successfully reaches nonusers.
c. doesn’t need to target a particular segment.
d. is easily repositioned.
33. Which firm did the text highlight as one with a long-term, successful campaign that epitomizes
“simplicity” in defining its distinctiveness, a critical ingredient in a good positioning strategy?
a. Exedrin
b. Jack Daniels
c. Nike
d. Tylenol
34. Benefit positioning is demonstrated in product campaigns that
a. feature distinctive reasons for its purchase.
b. announce new features and functions.
c. build a customer base of new purchasers.
d. revitalize an identity that has been lost in the market.
NAT: AACSB Communication | CB&C Model Promotion TYP: Comprehension
35. Why is benefit positioning often used by a firm when its competitors offer comparable products that
basically do the same thing?
a. to point out emotional benefits that differentiate its product from others
b. to send new messages about its product’s identity
c. to spell out functional benefits that its product offers
d. to suggest new uses for its product
ANS: A DIF: Difficult REF: p. 226 OBJ: 6-4
36. The text mentions Avon Products as one of many corporations that has successfully added emotional
benefits to its positioning, creating intense feelings regarding its products, by linking its brand to
a. a celebrity endorsement.
b. an important social cause.
c. a YouTube video.
d. a viral Internet promotion.
37. “Micro-sponsorships” have become popular ways for firms with restricted budgets to attract socially
conscious consumers because they connect their products to
a. political causes.
b. green efforts.
c. healthy lifestyles.
d. smaller charities.
38. What are the three fundamental options that advertisers have when choosing a positioning theme?
a. demographic, psychographic, or geographic
b. benefit, user, or competitive
c. STP, VALS, or SIC
d. functional, emotional, or psychological
ANS: B DIF: Easy REF: p. 226-227 OBJ: 6-4
39. Self-expressive benefits are promoted in ads to

a. define a product that doesn't compete directly with any competitor.
b. focus on benefit, user, and competitive positioning, rather than emotional differentiation.
c. create distinctive images or personality traits and invite people into the brand community.
d. identify groups of customers that share certain characteristics.
40. The American Pork Producers has been running a long-term campaign with the tagline "Pork. The
other white meat." This is an example of
a. lifestyle segmentation.
b. demographic segmentation.
c. benefit positioning.
d. competitive positioning.
ANS: D DIF: Moderate REF: p. 227-228 OBJ: 6-4
41. What types of brands are commonly repositioned?

a. those that are in a tightly competitive market
b. those that are bought on a regular or habitual basis
c. those that are big-ticket items
d. those that are popular with one generation but fade with the next
42. To simplify a somewhat complex concept, a value proposition is of great importance to a company’s
advertising success because it puts all its emphasis on one simple premise—
a. who belongs in the target market.
b. what the company should sell.
c. how the customer benefits.
d. why the brand is different from others.
43. A powerful value proposition in most situations today includes functional, emotional, and self-
expressive benefits,
a. though only tangible product benefits are truly emphasized.
b. though no single ad can reflect all three aspects.
c. all of which must be included in a given advertising campaign.
d. though children are excluded because their decision making is controlled by parents.
ANS: B DIF: Difficult REF: p. 230 OBJ: 6-5
44. A firm finds that it has gained tremendous leverage by using STP marketing, largely because it
combines
a. client and agency efforts to fulfill customer needs.
b. functional and emotional benefits as products enter the marketplace.
c. mature and new product categories.
d. user and competitive aspects of positioning.
45. The model designed by Esther Thorson and Jeri Moore features which element as the starting point to
strategic advertising, located at its paramount apex?
a. brand identity
b. positioning theme
c. marketing approach
d. target segment
Scenario 6-1
Headquartered in Boston, The Gillette Company is the world leader in male grooming, a category that
includes blades, razors, and shaving preparations. Several years ago, Gillette announced the launch of
two new high-performance women's razors, broadening the portfolio of the top-selling Venus brand,
the world's most successful franchise in female shaving. The two new razors were Venus Vibrance the
first power wet shaving system for women, and Venus Disposable, a premium-performing disposable
razor. Both razors incorporated technological and design enhancements to better address the specific
shaving needs of women, and will build on current market segments. More recently the company has
launched Venus Embrace, the first five-blade women’s razor, with the tagline, “Reveal the Goddess in
You.” According to its website, nearly 40 million women now use Venus products.
(http://www.gillettevenus.com/en_US/products/index.jsp)
46. (Scenario 6-1) The position for any one market segment should
a. also hold an appeal for those outside the segment.
b. be identical to positions selected for other segments.
c. change occasionally to break through advertising clutter.
d. be easily communicated to consumers.
47. (Scenario 6-1) The original plan to sell new products to the female market
a. could be considered an STP effort because Gillette is targeting multiple segments.
b. may or may not have been an STP effort, depending on whether Gillette has created sub-
segments of these large segments.
c. may or may not have been an STP effort, depending on whether all possible segments are
being targeted by Gillette.
d. fit all the criteria of an STP effort by Gillette.
48. (Scenario 6-1) According to the information provided here, Gillette has identified market segments
along _____ lines.
a. benefit
b. demographic
c. geographic
d. usage pattern
49. (Scenario 6-1) It appears that the management at Gillette has performed the fundamental task behind
effective segmentation. Gillette has matched what members of different segments want with
a. the company's ability to provide it.
b. a single appeal.
c. an advertising message they will understand.
d. a distinct demographic profile.
50. (Scenario 6-1) The philosophy behind Gillette's efforts is based on

a. user positioning.
b. market niche positioning.
c. benefit positioning.
d. competitive positioning.
Scenario 6-2
El Sol sunglasses were designed by an avant-garde artist. She said there were no sunglasses out there
that she would wear, so she had to design her own. Her sunglasses were worn by a whacked-out bad
guy in a blockbuster movie and, because of this, have acquired a cult following among young teens.
Print advertisements are visually sparse—nothing more than a still shot from the movie and a logo for
the brand.
Eyewake sunglasses were designed by an optician after he realized that conventional sunglasses
allowed in certain types of light that promoted eye fatigue. He made 1,000 of his sunglasses and gave
100 of them away to friends and acquaintances. After trying them out for awhile, several of them told
him that they really liked them when they had to drive for extended lengths of time. He placed an ad in
the back of a tourism magazine, extolling the safety benefit of driving with eyes that weren't fatigued.
He promptly sold all of his remaining glasses.
Kushyspecs sunglasses were developed after research revealed that a small group of people didn't like
wearing sunglasses because most sunglasses left pinch marks on their noses. The company that
performed the research developed sunglasses with a soft, cushiony nose piece. Advertisements for
Kushyspecs feature the headline "The mark of a good pair of sunglasses is no mark at all."
51. (Scenario 6-2) Which of these brands of sunglasses was positioned through a product differentiation
strategy?
a. El Sol
b. Eyewake and Kushyspecs
c. El Sol and Kushyspecs
d. Eyewake and El Sol
ANS: B DIF: Difficult REF: p. 213 OBJ: 6-1
NAT: AACSB Analytic | CB&C Model Product TYP: Application
52. (Scenario 6-2) Which of these brands attempts to reach a market segment through product placement?
a. El Sol and Eyewake
b. Eyewake and Kushyspecs
c. Kushyspecs
d. El Sol
NAT: AACSB Analytic | CB&C Model Product TYP: Application
53. (Scenario 6-2) One element that all three of these ad campaigns have in common is that they are all
a. employing repositioning.
b. using geographic segmentation.
c. relying on emotional differentiation.
d. targeting a market niche.
ANS: D DIF: Difficult REF: p. 222 OBJ: 6-3
54. (Scenario 6-2) Which of these brands of sunglasses uses benefit positioning in its advertisements?
a. all three—El Sol, Eyewake, and Kushyspecs
b. El Sol and Kushyspecs
c. Kushyspecs
d. Eyewake
Scenario 6-3
Keds has been trying to turn around a long-term slide in its shoe business. For years, it had depended
on its image as the women's no-frills summer shoe to keep sales moving. But over time, competition
from Sam & Libby and Easy Spirit brands have been nipping at the heels of Keds. As part of its effort
to revitalize the brand several years ago, Keds's advertising agency developed a campaign that focuses
on the warm, close relationships between mothers and daughters. According to an issue of Brandweek
magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother
saying, "She was my first, I could never tell her how to dress," with the daughter saying, "She made
me feel pretty even when I had braces."
55. (Scenario 6-3) Instead of “mothers and daughters,” why didn’t Keds define its target segment simply
as “women”?
a. This concept already has a number of established companies targeting it.
b. This is not based on a realistic approach to segmentation.
c. This is based on demographic criteria for which media is difficult to define.
d. This is poorly defined and provides no clear orientation or identity.
ANS: D DIF: Moderate REF: p. 211| p. 214
OBJ: 6-1 NAT: AACSB Reflective Thinking | CB&C Model Customer
TYP: Application
56. (Scenario 6-3) Which of these segmentation techniques would provide the most insight for Keds's
advertising agency in the creation of its advertisements?
a. emergent
b. lifestyle
c. geographic
d. usage pattern
ANS: B DIF: Moderate REF: p. 217-218 OBJ: 6-2
57. (Scenario 6-3) The copy for this campaign features moms and daughters commenting on their close
relationships, and Brandweek magazine said that the new Keds ads "really go for the heart." This
points to the campaign’s focus on
a. identifying emotional benefits.
b. delivering its promise.
c. targeting nonusers.
d. using VALS data.
ANS: A DIF: Moderate REF: p. 226| p. 230
OBJ: 6-4 NAT: AACSB Analytic | CB&C Model Customer
TYP: Application
58. (Scenario 6-3) The information provided says that Keds was trying to “turn around a long-term slide”
in its shoe business, and that “for years, it had depended on its image as the women's no-frills summer
shoe.” Obviously, things had changed. And what Keds needed was a change in its once-successful
strategy and identity to meet new market conditions, called
a. internal consistency.
b. self-expressive marketing.
c. repositioning.
d. business-to-business marketing
Scenario 6-4
Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and
accessories, which they named The Plantatarium. Their initial feeling when they went into business
was that virtually everyone was a potential customer for house plants. Subsequent market research
conducted for them painted a different picture. This research identified three particularly strong market
segments. The first was college students ages 18-24. The next segment was retired seniors ages 65-80.
The third segment was professional offices for doctors, accountants, and lawyers. The college students
liked houseplants because they dressed up their living spaces. The senior liked them because they
became the focus of a hobby. The professionals did not buy them for any reason other than décor.
59. (Scenario 6-4) To attract the ____ in the market, the Plantatarium offers a punch card that rewards
buyers with a $10 discount each time they have purchased $150 worth of plants and other goods from
the store.
a. emergent consumers
b. demographic segment
c. variety seekers
d. heavy users
60. (Scenario 6-4) The Plantatarium sends out direct mail offers to consumers in a nearby zip code area
who have household incomes of greater than $40,000 a year. This is an illustration of a _____ strategy.
a. geographic segmentation
b. demographic segmentation
c. psychographic segmentation
d. geodemographic segmentation
61. (Scenario 6-4) The owners of this business have decided to carry a great deal of plants that flower
throughout the year because most consumers have said they like them for the cheerful feeling they
give. This suggests that The Plantatarium is focusing on what different consumers want from its
offerings, that is, _____ segmentation.
a. business-to-business
b. psychographic
c. benefit
d. repositioning
NAT: AACSB Reflective Thinking | CB&C Model Customer TYP: Application
62. (Scenario 6-4) Several customers have mentioned that they would like to browse through several
varieties of cactus, so the Garretts decided to devote a small corner exclusively to cacti. These
customers constitute an example of
a. market niche.
b. psychographic segmentation.
c. brand loyalty.
d. demographic segmentation.
63. (Scenario 6-4) The Plantatarium promotes itself in different media using the phrase "An out-of-this-
world selection of unique plants." This phrase is a reflection of the firm's
a. positioning strategy.
b. VALS profile.
c. target market.
d. demographics.
Scenario 6-5
Madison State University has a reputation for having a powerful intercollegiate coed bowling team.
Seating in the campus bowling alley only allows for 400 fans to attend their matches. Long lines for
seats have formed in the past, with many fans leaving disappointed because they could not get a ticket.
As a result, the school's administrators decided to institute a "priority seating" plan in which fans
would be given access to advance tickets based on the following schedule:
• "Lanemaster Club" - $10,000 annual donation to the bowling program - guaranteed free box seats
to any match (100 seats total)
• "Strike Club" - $1,000 annual donation to the bowling program - guaranteed free bleacher seats
to any match (100 seats total)
• "Kingpin Club" - participants in local recreation bowling leagues - guaranteed bleacher seats for
$10.00 to any match (100 seats total)
• "Alleycat Club" - students who have maintained a 3.9 GPA or better - guaranteed bleacher seats
for $1.00 to any match (100 seats total)
64. (Scenario 6-5) Based on the planned schedule described here, students who have maintained a 3.9
GPA would be described as one of the bowling team's
a. nonuser groups.
b. positioning strategies.
c. target segments.
d. diverse markets.
65. (Scenario 6-5) A group of about 30 students who are roommates and friends of the team members --
many are casual bowlers themselves -- have attended every match for nearly three years. These
students would best be described as
a. competitive users.
b. emergent consumers.
c. heavy users.
d. variety seekers.
66. (Scenario 6-5) Each summer, the MSU Athletic Director looks at the city map, chooses a different
local neighborhood, and knocks on doors, encouraging residents to join one of the supporting clubs.
He then keeps track of which neighborhoods are the strongest supporters, and which may need more
prompting in the future. In this way he is using a ____ segmentation strategy.
a. psychographic
b. geodemographic
c. geographic
d. demographic
67. (Scenario 6-5) With the new plan, the bowling team is attempting to encourage local bowlers and other
bowling aficionados to come watch the team in action. This is an example of ____ segmentation.
a. emergent
b. geographic
c. lifestyle
d. demographic
68. (Scenario 6-5) In marketing materials created to target fans, the slogan "Two hours of wholesome fun
for all ages" is used to attract ticket-buyers. This philosophy is an example of ____ segmentation.
a. niche
b. demographic
c. geodemographic
d. benefit
ESSAY
1. Think about a product that you have used in the past week. Using this as an example, explain the
differences between segmenting, targeting, and positioning in the STP approach to marketing.
ANS:
Student examples will vary. Depending on the product, their approach to marketing will vary also.
Segmenting involves breaking down large, heterogeneous, and diverse markets into manageable
submarkets, or customer segments. For segmenting to be useful, a marketer must be able to reach these
resulting submarkets with its message. One of the most common ways to approach this task is by
analyzing consumption patterns and commitment levels (heavy users, nonusers, brand-loyal users,
variety seekers or switchers, emergent consumers). Other methods that are used include demographic,
geographic, geodemographic, psychographic, and benefit segmentation.
Targeting involves choosing the specific subgroup—the target segment—as the focal point of the
marketing efforts. Often, the largest segment is not chosen as the target, but rather, it is the particular
segment made up of certain individuals with similar interests, needs, or lifestyles that may have a
certain need or desire for the product.
Positioning involves designing and representing a product so it will occupy a distinct and valuable
space in the marketplace. Positioning strategy is created when a company selects key themes and
concepts to feature regarding the product when communicating its distinctive qualities.
Overall, markets are segmented, while products are positioned.
DIF: Moderate REF: p. 211-220 OBJ: 6-1|6-2

2. Brownsworth Brothers Coffee is a mail-order business run by two brothers directly from their
Hawaiian plantation. They have targeted heavy users in the past, but they’re considering a new focus
on college students. They are considering switching target segments even though this group is
comprised largely of people who don’t drink coffee, or have just started to drink coffee and don't
consume anywhere near as much as the heavy users. What are the disadvantages of the heavy-user
strategy? What term is used to describe the college students the company is considering targeting?
What are the advantages of targeting this new segment?
ANS:
Heavy users of Brownsworth Brothers Coffee may need no encouragement at all to keep consuming.
A heavy-user focus by an advertiser takes attention and resources away from those who do need
encouragement to purchase the marketer's brand. Perhaps most importantly, various heavy users may
be significantly different in terms of their motivation to consume, their approach to the product, or
their image of the product.
The college students who may try Brownsworth Brothers Coffee are considered emergent consumers.
Their preferences are still under development. This target audience may produce minimal profits in the
short term. However, there is the strong opportunity for gains in the long-term if they begin their initial
coffee drinking with this brand, like it, and get hooked on it. They may ultimately demonstrate brand
preference, or possibly even brand loyalty, for Brownsworth.
DIF: Difficult REF: p. 214-215 OBJ: 6-2

NAT: AACSB Reflective Thinking | CB&C Model Customer TYP: Application
3. What is the difference between a consumer market and a business market? Give an example of each.
Then describe how business markets are segmented, and use your example to explain your answer.
ANS:
Consumer markets are basically made up of individuals, or households—those markets for products
and services that are purchased by people or their families and housemates to fulfill various personal
needs.
Business markets are made up of institutional and industrial buyers who purchase items, parts,
equipment, supplies, or other materials to be used in the production of other goods and services, which
are then resold to other businesses or directly to households.
Business markets can be segmented in some ways similar to the methods used for consumer markets,
such as analyzing their usage rates and geographic locations. But some methods used for consumers—
such as psychographic or lifestyle segmentation—normally do not translate well to business buyers.
Instead, simple sales-related methods are often used, such as identifying business markets based on
their stage in the purchase process. In this way, potential prospects, first-time buyers, or those new to
the market or industry can be targeted differently than long-standing business customers, and can be
specifically addressed by the company’s advertisements and promotions.
DIF: Moderate REF: p. 220 OBJ: 6-2

4. Describe the principle known as niche marketing. What are the competitive advantages of marketing to
a niche?
ANS:
Niche marketing is based on the premise that smaller is often better when selecting target segments.
By definition, large segments are usually established segments that many companies have identified
and targeted previously. However, these large segments may be poorly defined. Niche marketing
involves identifying and serving a relatively small group of consumers who have a unique set of needs.
Typically, these consumers are willing to pay a premium price to the firm that specializes in meeting
those needs. The small size of a market niche often means it would not be profitable for more than one
organization to serve it. Thus, when a firm identifies and develops products for market niches, the
threat of competitors developing imitative products to attack the niches is reduced.
DIF: Moderate REF: p. 222 OBJ: 6-3

5. What is a positioning strategy? What are the three main types of fundamental positioning themes?
Also, what is repositioning?
ANS:
A positioning strategy involves the selection of key themes or concepts that the organization decides to
feature to communicate the distinctiveness of its product. It helps the consumer understand what the
product does. It must be simple and distinctive. Once the firm has segmented the market and selected
its targets, the positioning strategy should come naturally.
It can involve several themes:
Benefit positioning. The focus is on a single functional, emotional, or self-expressive benefit to the
customer. Firms often start with functional benefits, simply explaining what a product does for a
consumer. In product categories where various brands are almost similar, firms focus on emotional or
self-expressive benefits instead, often by linking the brand with aesthetic concepts or important causes
that bring on intense feelings.
User positioning. The focus is on a specific profile of the target user rather than any particular aspect
of the brand, speaking to clearly identifiable user segments.
Competitive positioning. The focus is on a specific competitor to compare and precisely define what a
product can do, particularly in well-established categories with a lot of competition. This method is
often used by smaller brands to carve out a space in a crowded marketplace.
Repositioning. The focus is on a new identity or new way of looking at a product, a way to get current
consumers to see it in a fresh light or to attract new target markets. Sometimes it attempts to maintain
older and often loyal users while getting the attention of younger consumers who may not be familiar
with the brand. This can take tremendous effort, however.
Test Bank for Advertising and Integrated Brand Promotion, 6th Edition: OGuinn
DIF: Moderate REF: p. 212| p. 224-228 OBJ: 6-1| 6-4

6. What is a value proposition? Explain why it is useful—even critical—to an organization, to its brand,
to its team, and to its target audience.
ANS:
A value proposition is a statement of the functional, emotional, and self-expressive benefits offered by
the brand. It acts as the basis for brand choice and customer loyalty, which is critical to the ongoing
success of a firm.
The value proposition offers a way to capture the full record of a brand and all of its characteristics and
benefits. It also provides a foundation and structure that will maintain this information as new
members join the team and work on new promotional efforts for the brand. It is basically a way to
capture the brand strategy on paper. It makes things crystal clear about what is believed and known
about the brand. That way, everyone on the team can share this clear set of values, benefits, and other
pieces of information related to the brand.
But more important, the value proposition is what keeps the brand consistent in the eyes of the target
market. It consolidates all the customer benefits offered by a product, and reminds consumers of these
benefits.
Over time, different aspects can be built into the value proposition. Well-established benefits reinforce
one another, and new benefits are added to current ones. Some brands -- national brands, and
especially global brands -- are very involved and complex, with long histories and decades of
marketing efforts. They may now involve branded entertainment, product placement, mobile
marketing, online advertising, or other relatively new promotional formats. The value proposition for
these products is even more important in order to keep all brand information clear and consistent
throughout all promotional efforts.
DIF: Moderate REF: p. 229-231 OBJ: 6-5

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ANS: T DIF: Moderate REF: p. 211 OBJ: 6-1

ANS: F DIF: Easy REF: p. 212 OBJ: 6-1

3. STP marketing includes three factors—identifying, positioning, and informing.

ANS: F DIF: Easy REF: p. 212 OBJ: 6-1

ANS: T DIF: Difficult REF: p. 212 OBJ: 6-1

ANS: F DIF: Moderate REF: p. 213 OBJ: 6-1

ANS: F DIF: Easy REF: p. 214-215 OBJ: 6-2

ANS: T DIF: Moderate REF: p. 215 OBJ: 6-2

8. Demographic segmentation is used in selecting target segments by focusing on consumers’ descriptors

ANS: F DIF: Easy REF: p. 216 OBJ: 6-2

ANS: F DIF: Easy REF: p. 217 OBJ: 6-2

ANS: F DIF: Moderate REF: p. 220 OBJ: 6-2

ANS: T DIF: Moderate REF: p. 221 OBJ: 6-3

ANS: F DIF: Moderate REF: p. 222 OBJ: 6-3

ANS: F DIF: Moderate REF: p. 224 OBJ: 6-4

ANS: F DIF: Difficult REF: p. 224 OBJ: 6-4

ANS: T DIF: Easy REF: p. 225 OBJ: 6-4

ANS: F DIF: Difficult REF: p. 226 OBJ: 6-4

ANS: T DIF: Moderate REF: p. 226 OBJ: 6-4

ANS: F DIF: Moderate REF: p. 227 OBJ: 6-4

ANS: F DIF: Difficult REF: p. 228-229 OBJ: 6-4

ANS: F DIF: Difficult REF: p. 229 OBJ: 6-4

ANS: T DIF: Moderate REF: p. 230 OBJ: 6-5

ANS: T DIF: Moderate REF: p. 230 OBJ: 6-5

ANS: T DIF: Moderate REF: p. 231-232 OBJ: 6-5

6. What does the acronym STP mean?

12. As a segment, variety seekers tend to

28. What is a market niche?

39. Self-expressive benefits are promoted in ads to

41. What types of brands are commonly repositioned?

50. (Scenario 6-1) The philosophy behind Gillette's efforts is based on

Overall, markets are segmented, while products are positioned.

DIF: Moderate REF: p. 211-220 OBJ: 6-1|6-2

DIF: Difficult REF: p. 214-215 OBJ: 6-2

DIF: Moderate REF: p. 220 OBJ: 6-2

DIF: Moderate REF: p. 222 OBJ: 6-3

DIF: Moderate REF: p. 212| p. 224-228 OBJ: 6-1| 6-4

DIF: Moderate REF: p. 229-231 OBJ: 6-5

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