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
Business marketers use all of the following EXCEPT ________.
A) operating characteristics
B) purchasing approaches
C) situational factors
D) personal characteristics
E) brand personalities
Answer: E
Diff: 3 Page Ref: 198
Skill: Concept
Objective: 7-2

20) As in consumer segmentation, many marketers believe that ________ and ________ segmentation provide the best basis for segmenting business markets.
A) geographic; demographic
B) user status; user loyalty
C) benefits; buying behavior
D) age and life-cycle; psychographic
E) income; usage rate
Answer: C
Diff: 2 Page Ref: 199
Skill: Concept
Objective: 7-2
21) International Drilling Company segments its foreign markets by their overall level of economic development. This firm segments on what basis?
A) political factors
B) legal factors
C) geographic factors
D) economic factors
E) cultural factors
Answer: D
Diff: 1 Page Ref: 199
Skill: Concept
Objective: 7-2

22) Lexus targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________.
A) intermarket segmentation
B) loyalty segmentation
C) life-cycle segmentation
D) targeting segmentation
E) psychographic segmentation