51) A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each is known as __.
A) mass marketing
B) differentiated marketing
C) concentrated marketing
D) individual marketing
E) cross-marketing
52) Which of the following is a disadvantage of using a differentiated marketing strategy?
A) generates far lower sales compared to an undifferentiated marketing strategy
B) customer loyalty is negatively impacted and difficult to obtain
C) the costs of doing business increase
D) quality control problems increase
E) product safety decreases
53) With a(n) __ marketing strategy, a firm goes after a large share of one or a few smaller niches.
A) individual
B) mass
C) concentrated
D) differentiated
E) local
54) Which of the following is true about the concentrated marketing strategy?
A) Companies that rely on a few segments for all of their business will suffer if a segment turns sour.
B) Concentrated marketing is not profitable for most firms.
C) Niche marketing involves few risks for most firms.
D) Concentrated marketing involves going after a small share of a large market.
E) The Internet has limited the use and benefits of niche marketing.
55) __ is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.
A) Mass marketing
B) Trigger-based marketing
C) Differentiated marketing
D) Concentrated marketing
E) Micromarketing
56) __ tailors brands and promotions to the needs and wants of regional customer groups, such as cities, neighborhoods, and even specific stores.
A) Undifferentiated marketing
B) Differentiated marketing
C) Niche marketing
D) Local marketing
E) Individual marketing
57) Which of the following is a drawback of local marketing?
A) Local marketing increases manufacturing costs by reducing the economies of scale.
B) Local marketing requires specialization that is difficult to identify.
C) Local marketing is not profitable for most small firms.
D) Local marketing cannot accommodate the needs of modern buyers who are technology savvy.
E) Local marketing almost always results in brand dilution.
58) Andrew Levitt runs a retail store in Norristown. Andrew’s store stocks cold weather products as Norristown mostly has sub-zero temperatures. Which of the following is evident here?
A) local marketing
B) concentrated marketing
C) segmented marketing
D) mass marketing
E) direct marketing
59) A public relations firm tailors its advertising and promotional services according to the needs and preferences of specific customers. This exemplifies __.
A) trigger-based marketing
B) mass marketing
C) segmented marketing
D) individual marketing
E) concentrated marketing
60) When a company customizes its merchandise store by store to meet shopper needs, it is practicing __.
A) niche marketing
B) mass marketing
C) local marketing
D) segmented marketing
E) trigger-based marketing
The Correct Answer and Explanation is :
51) B) differentiated marketing
Explanation:
Differentiated marketing is a strategy where a firm targets several market segments and designs separate offers or marketing campaigns for each of them. It allows a company to address the unique needs and preferences of each segment. This approach is particularly effective when the market consists of diverse groups with distinct needs, enabling the company to cater to each group with a tailored product or service offering.
52) C) the costs of doing business increase
Explanation:
One disadvantage of differentiated marketing is that it typically increases the costs of doing business. This is because the company must create different products or marketing campaigns for each target segment. These increased costs can stem from developing separate advertisements, producing different product variations, and managing multiple marketing strategies. While differentiated marketing can lead to higher sales in the long run, the initial investment can be considerable.
53) C) concentrated marketing
Explanation:
Concentrated marketing is a strategy where a company focuses on one or a few niches in the market. By targeting a specific group, a company can better meet the needs of that segment. This approach can be more cost-effective compared to trying to serve a broad market, but it comes with the risk of relying heavily on one or a few target groups. If these segments do not perform well, the company can suffer significant losses.
54) A) Companies that rely on a few segments for all of their business will suffer if a segment turns sour.
Explanation:
A risk of concentrated marketing is that the company depends heavily on a small number of segments. If one of these segments experiences a downturn, such as a change in consumer preferences or an economic setback, the company’s overall performance can be significantly impacted. This lack of diversification can be risky, especially in uncertain markets.
55) E) Micromarketing
Explanation:
Micromarketing is a strategy where products and marketing efforts are tailored to meet the needs of specific individuals or small localities. It is often used in cases where personalization or a highly localized approach can create a competitive advantage. It can be seen in practices like personalized advertising, location-based promotions, or even custom-made products.
56) D) Local marketing
Explanation:
Local marketing involves tailoring marketing efforts to meet the needs of regional customer groups, such as specific cities, neighborhoods, or even individual stores. This strategy focuses on addressing local preferences, regional tastes, and specific consumer needs, making it highly relevant to customers in specific geographical locations.
57) A) Local marketing increases manufacturing costs by reducing the economies of scale.
Explanation:
A drawback of local marketing is that it can increase manufacturing costs by limiting the ability to benefit from economies of scale. When companies create products or marketing strategies that are specifically designed for smaller local markets, they often lose the efficiencies of mass production. As a result, costs per unit may rise, and the company might need to adjust its pricing structure to account for these increased costs.
58) A) local marketing
Explanation:
Andrew’s store stocking cold weather products that cater specifically to the needs of Norristown is an example of local marketing. By tailoring the inventory to the needs of a specific geographical area, the store can better serve its local customers. This strategy focuses on meeting the unique demands of a particular location.
59) D) individual marketing
Explanation:
The public relations firm that tailors its advertising and promotional services according to the needs and preferences of specific customers is practicing individual marketing. This approach focuses on customizing offerings for each individual, often through personalized messages or services that meet the specific requirements of a particular customer.
60) C) local marketing
Explanation:
When a company customizes its merchandise store by store to meet shopper needs, it is practicing local marketing. Each store is tailored to the specific needs of the customers in that location, taking into account local preferences, trends, and demands. Local marketing allows companies to be more responsive to the varying needs of consumers in different regions.