Coca-Cola launched Coke Zero to avoid cannibalizing current sales and to attract new customers in a
segment they might not get with Diet Coke.
When a marketer adjusts the marketing mix to give customers a clear, distinctive understanding of what
the product does, the marketer is engaging in psychographic segmentation.
For products like pencils and paperclips, marketers should probably use an undifferentiated targeting
When deciding how to promote his new medical oncology center, Dr. Jones decided that he did not need
to throw a large grand opening reception. Instead, he promoted the center to the internal medicine doctors
in the area, who were the doctors most likely to refer patients to the center. Dr. Jones was engaged in a
concentrated targeting strategy.
It would be logical for bathing suit marketers to use geographic segmentation.
NASCAR redirected its marketing efforts when a survey indicated that almost fifty percent of its fans
were female. This is an example of psychographic segmentation.
The Value and Lifestyle Survey (VALS) conducted by SRI Consulting Business Intelligence is a widely
used tool for geographic segmentation.
Giant Food Stores in suburban Washington, D.C., adjusts its ethnic food aisle offerings based on the
ethnic groups living near each store. Giant Foods is using geodemographic segmentation.
Positioning strategies generally focus either on how the product benefits the consumer or on how it is
better than competitors' products.
10. A self-values map displays the position of products or brands in the consumer's mind.
11. Perceptual maps include positions of current brands as well as ideal points where a segment would want a
product to be.
12. The STP process is made up of strategy, targeting and promotion.
13. The first step in the STP process is to establish a strategy.
14. Automobile manufacturers do not manufacture cars specially designed for very tall people, as this
segment is not substantial.
15. A complex product that is best described in writing will be difficult to explain to consumers who are
unable to read. For this reason, a segment in which many consumers could not read would be considered
unattractive because the consumers would not be responsive.
16. A company that sells only multi-grain, low calorie bread should use an undifferentiated targeting
17. 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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