IMANET IMANET Certifications IMANET-CMA Questions & Answers

• Question 1131:

  Differentiated marketing covers the market by

  A. Mass distribution and advertising of one offering.

  B. Selling different versions of a product to multiple segments.

  C. Offering different products in different segments.

  D. Leveraging a communalist across multiple segments.

  Correct Answer: C

  Pull market coverage may be achieved by differentiated or undifferentiated marketing. Differentiated marketing covers the market by offering different products in different segments. Sales are higher than under undifferentiated marketing, but costs (product modification1 inventory, manufacturing1 administration1 and promotion) are higher.

• Question 1132:

  Which lye of target market selection occurs when multiple products are sold to one customer group?

  A. Market specialization.

  B. Full market coverage.

  C. Product specialization

  D. Selective specialization

  Correct Answer: A

  Market specialization entails selling multiple products to one customer group. Hence, the risk is that the group will suffer a loss of purchasing power. The advantage is that the firm may develop considerable customer equity among the members of the targeted group. The market specialist may then be able to leverage that equity to sell other products to the group.

• Question 1133:

  Which form of business market segmentation may be determined by customer technology?

  A. Demographic

  B. Purchasing

  C. Operational

  D. Situational

  Correct Answer: C

  Operational segmentation is determined by the element(s) of customer technology that the firm wants to emphasize, the degree of customer usage (for example, from nonusers to heavy users), or customers' service (from few to many).

• Question 1134:

  Which form of consumer market segmentation may be determined by the status of users?

  A. Geographic.

  B. Behavioral.

  C. Demographic.

  D. Psychographic.

  Correct Answer: B

  Behavioral segmentation is by regular or special occasions (e.g., holidays, critical life events, transitions, business activities, or holidays), benefits wanted (e.g., price, speed of delivery, quality, or service), status of users (e.g., nonusers and former, potential, or regular users), rate of usage, degree of loyally (e.g., hardcore to switchers), readiness to buy (e.g., from unaware of the product to intending to purchase), or attitude (e.g., from hostile toward the product to enthusiastic).

• Question 1135:

  Which pattern of segmentation by preferences indicates a great variety of preferences?

  A. Diffuse.

  B. Clustered.

  C. Homogeneous.

  D. Geographic.

  Correct Answer: A

  Diffuse preferences signify a great variety of preferences. The first firm in the market will position itself to satisfy average preferences and thus the most customers.

• Question 1136:

  A large firm that seeks specialization advantages by focusing marketing efforts on a sub segment of a marketing segment is engaged in

  A. Local marketing.

  B. Niche marketing.

  C. Mass marketing.

  D. Individual customer marketing.

  Correct Answer: B

  Niche marketing is a specialized strategy that directs marketing efforts toward customers in a market segment who want a unique set of benefits. Niche marketing typically appeals to smaller firms with limited resources, but larger firms also engage in niche marketing. It is attractive to these firms due to its cost effectiveness, the result of focusing marketing funds on a targeted group. Niche customers have unique wants and will pay higher prices for their satisfaction. Moreover, an ideal niche attracts little if any competition, has growth and profit potential, and confers production and marketing advantages that derive from specialization (e.g., knowledge of customers). The Internet is especially conducive to niche (and microfiche) marketing because websites may be established cheaply.

• Question 1137:

  What form of marketing assumes most people in the same demographic will react similarly to one marketing message?

  A. Direct marketing.

  B. Proactive marketing.

  C. Services marketing.

  D. Mass marketing.

  Correct Answer: D

  Mass marketing group's people into large categories based solely on their demographic traits, e.g., age, income, gender, or education level. It assumes most people in the same category will react similarly to one marketing message. Mass marketers rely primarily on mass media (television and print) to reach their targets in large numbers.

• Question 1138:

  Which statement regarding direct marketing is not true?

  A. Comparative shopping using catalogs is a form of direct marketing.

  B. Direct marketing has declined as a result of market degasification.

  C. Customers benefit because selection is expanded and ordering is simplified.

  D. Voice mail is a form of direct marketing.

  Correct Answer: B

  Direct marketing has grown as a result of market degasification. This fragmentation of markets into many niches reduces the effectiveness of mass marketing. Market degasification has preceded 1鏰use of the growth of diverse promotional media and distribution channels.

• Question 1139:

  What is the oldest and most basic form of direct marketing?

  A. Personal selling.

  B. Electronic mail.

  C. Customer-relationship marketing.

  D. Negotiating.

  Correct Answer: A

  Personal selling is the most basic (and the oldest) form of direct marketing. The great majority of industrial firms use a professional sales force or hire manufacturers' representative or other agents to perform the in person task of selling. Also, consumer firms (such as Avon) may engage in direct sales.

• Question 1140:

  Evaluation of sales promotion is done using

  I. Customer surveys.

  II. Scanner sales data. Ill. Supplier surveys.

  IV. Experimental results.

  A. I and IV only.

  B. II and Ill only.

  C. I, II, and IV only.

  D. II, Ill, and IV only.

  Correct Answer: C

  Evaluation of sales promotion is done using scanner sales data (e.g., Nielsen television ratings) to determine the kinds of customers reached their pre-promotion purchases, and their post-promotion behavior. Customer surveys provide additional data, such as how many remember the promotion and their attitudes toward it. Experimental results are determined by changing a promotional variable for different groups, such as the media used to distribute incentives. However, sales promotions are not directed toward a firm's suppliers.