Deck 2: Market segmentation: segmenting, targeting and positioning for diverse

Question 1

With the increasing fragmentation of Australian mass markets into hundreds of micromarkets, each having a different lifestyle with different requirements, target marketing is increasingly taking the form of:

A) micromarketing.
B) target marketing.
C) specific subgroup targeting.
D) micromanaging.

Answer 1

micromarketing.

Question 2

Segmentation studies are designed in order to:

A) help serve customers better by finding the best product to suit all consumers.
B) discover the needs and wants of specific groups of consumers, so that specialised goods and services can be developed and promoted to satisfy their needs.
C) create a higher level of sales for the company through having satisfied customers.
D) assist marketers in satisfying the wants and needs of every individual customer with their product offerings.

Answer 2

discover the needs and wants of specific groups of consumers, so that specialised goods and services can be developed and promoted to satisfy their needs.

Question 3

Cadbury changing its Schweppes ginger ale brand from a mixer for alcoholic drinks to a soft drink by refocusing its product mix (with more emphasis on flavoured ginger ales, such as raspberry ginger ale), its advertising and its packaging, is an example of:

A) repositioning.
B) re-targeting.
C) rebranding.
D) market segmentation.

Answer 3

repositioning.

Question 4

Which of the following is not an example of a brand using market segmentation and targeting to benefit both participants in the market place?

A) Honda targeting its' larger car 'Odyssey' to families whilst targeting a smaller car the 'Jazz' to young singles.
B) New Balance athletic shoes targeting different groups who use shoes for either, walking, running, hiking, climbing or cross-training with different types of footwear.
C) Swatch introducing new sporty watches in addition to their existing products to target sporty people with outdoor life-styles.
D) Holden introduces a new car to target all Australian consumers.

Question 5

For which of the following examples could a mass marketing strategy work?

A) One standards size washing machine for all customers.
B) A basic agricultural product sold to manufacturers.
C) A new model of a car manufacturer.
D) Basic household product such as a vacuum cleaner.

Question 6

Which of the following statements is not true?

A) The strategy of market segmentation benefits both participants in the marketplace (i.e. firms and consumers).
B) Marketers also use segmentation research to identify the most appropriate media in which to place advertisements.
C) Marketers can create a positioning and marketing mix strategy to satisfy the needs of one single customer at a time.
D) A consumer-oriented approach to marketing requires developing product strategies based on known consumer needs.

Question 7

The necessary criteria for successful segmentation include all of the following except:

A) large enough population.
B) general affluence of population.
C) population with positive buying behaviours.
D) sufficient diversity to be capable of being partitioned.

Question 8

Offering the same product and in effect the same marketing mix to all consumers is called:

A) targeting.
B) hard-sell.
C) positioning.
D) mass marketing.

Question 9

As human beings, we all have the same biological needs, but we all acquire additional needs that are shaped by our environment. Some of these acquired needs are common to many people. The commonality of a need or interest constitutes a:

A) target market.
B) market segment.
C) consumption decision.
D) marketing mix.

Question 10

Which of the following information about consumers can help marketers make decisions about target marketing and advertising strategies?

A) The level of education of a consumer.
B) The occupation of a consumer.
C) Hobbies or activities of a consumer.
D) All of the above.

Question 11

_______ is the process of dividing a market into distinct subsets of consumers with common needs or characteristics and selecting one or more subsets to target with a distinct marketing strategy.

A) Market segmentation
B) Targeting
C) Positioning
D) None of the above

Question 12

_______is accomplished by changing the promotional appeal, the distribution strategy or the price, based on the characteristics of a new segment or changing characteristics of the existing segment.

A) Positioning
B) Market segmentation
C) Repositioning
D) Targeting

Question 13

Which of the following statements is most true according to a specific company?

A) There are usually more market segments than target markets.
B) There are usually more target markets than market segments.
C) Both are true.
D) None are true.

Question 14

Which of the following is a way in which marketers obtain information about the sufficiency of people in their proposed market segments?

A) Secondary data from the Australian Bureau of Statistics website.
B) Undertake a probability survey from which the findings can be projected on to the entire market.
C) Both answers (a) and (b) are true.
D) Only answer (a) is true.

Question 15

The division of the total potential markets into smaller, homogeneous segments is:

A) segmentation.
B) lifestyle analysis.
C) positioning.
D) market diversification.

Question 16

_______ is developing a distinct image for the product in the mind of the consumer.

A) Targeting
B) Positioning
C) Placement
D) Promotion

Question 17

The benefits of segmentation, targeting and positioning are:

A) consumers will perceive the product as better fulfilling their specific needs.
B) it enables organisations to avoid head-on competition in the marketplace.
C) it is more profitable than mass marketing.
D) all of the above.

Question 18

The following segmentation variables are all easy to identify and measure except:

A) geographical location.
B) consumer's age or gender.
C) consumer's level of education.
D) consumer's preference of colours.

Question 19

The challenge marketers face is to select one or more segments to target with an appropriate marketing mix. To be an effective target, a market segment should be:

A) identifiable, growing, reachable and congruent with ethnic and cultural groups in society.
B) identifiable, sizeable, stable or growing, accessible and congruent with the marketer's objectives and resources.
C) sizeable, stable or growing, accessible and congruent with ethnic and cultural groups in society.
D) identifiable, sizeable, accessible and congruent with the marketer's objectives and resources.

Question 20

_______ is developing a distinct image for the product or service in the mind of the consumer that will differentiate the offering from competing ones.

A) Segmentation
B) Targeting
C) Positioning
D) None of the above

Question 21

Which of the following represents an example of the changing role of genders?

A) Many women are now purchasing repair tools themselves.
B) Women have become less accessible to marketers and advertisers as many are now combining motherhood with working and are too busy to engage in, and watch traditional media such as television.
C) Many modern advertisements reflect the expanding child-nurturing roles of young fathers.
D) All of the above represent the changing role of genders.

Question 22

Within the psychographic profile of a consumer segment, AIO stands for:

A) accomplishments, investments and opportunities.
B) accomplishments, interests and opportunities.
C) activities, interests and opinions.
D) activities, investments and opinions.

Question 23

Selecting a market segment of single females, aged between 18-34 years, who have minimally completed high school is a form of what basis for segmentation?

A) Geographic.
B) Psychographic.
C) Psychological.
D) Demographic.

Question 24

Defining market segments in strictly chronological terms can sometimes be stereotypical and misleading because:

A) not every consumer is the same.
B) many consumers have a perceived age (i.e. cognitive age) 10-15 years younger than their chronological age.
C) many consumers have a perceived age (i.e. cognitive age) 5-10 years older than their chronological age.
D) cultural and lifestyle differences among consumers are more important than their age.

Question 25

Since the emergence and growth of the Internet, it has become ______ for marketers to reach their customers and their customers have become more ______ to them.

A) easier; detached
B) harder; detached
C) easier; accessible
D) easier; friendly

Question 26

Which of the following is an example of hybrid segmentation?

A) Married males, working in a white-collar occupation aged between 18-34 years.
B) Married females aged between 35-44 years who are extroverted, from a non-English speaking background and who live in New South Wales.
C) Singles aged between 18-34 years with an annual income between $40 001 - $60 000 and who live in Sydney.
D) Married, English-speaking couples living in Melbourne, with blue-collar occupations who have a combined income between $70 001 - 80 000.

Question 27

Which of the following markets has proven to generally not be very stable in terms of needs and demographic and psychological factors?

A) The teenage market due to their quick adoption, and subsequent quick desertion of fads and trends.
B) Young adult females due to their tendency to be indecisive.
C) Middle-aged males because they are generally not the decision makers of purchases in their household.
D) Young parents due to their preference for convenient product offerings.

Question 28

When marketing household furniture, distinguishing between smaller households of consumers who are inner-city dwellers and families in larger houses in the outer suburbs of those cities, is a form of what basis of segmentation?

A) Demographic segmentation.
B) Geographic segmentation.
C) Psychographic segmentation.
D) User-related segmentation.

Question 29

Groups of individuals born during the same period of time who grow and travel through life together, experiencing similar events as they grow up are called:

A) consumer cohorts.
B) baby boomers.
C) market segments.
D) none of the above.

Question 30

The four groupings of bases for market segmentation can be described through two different criteria:

A) facts vs. cognitions, and; company-rooted vs. company-specific.
B) facts vs. cognitions, and; consumer rooted vs. consumption-specific.
C) thoughts vs. actions, and; consumer-rooted vs. consumption-specific.
D) thoughts vs. actions and; company-rooted vs. company-specific.

Question 31

One's social class is defined by computing an index based on three quantifiable variables including all of the following except:

A) income.
B) social status.
C) education.
D) occupation.

Question 32

Personality traits and lifestyle of a consumer are:

A) factual, consumer-rooted variables.
B) cognitive, consumption specific variables.
C) cognitive, consumer-rooted variables.
D) factual, consumption-specific variables.

Question 33

What is the major disadvantage of demographic market segmentation?

A) Demographic information is not easy to obtain.
B) Consumers often do not want to disclose this type of information.
C) It tends to be one-dimensional and does not differentiate between brands.
D) It is not very useful to companies with a distinguished brand.

Question 34

What is the major problem with segmenting the market on the basis of income alone?

A) Income indicates only the presence (or absence) of the ability to pay for a product, whereas the actual choice may be based on the consumer's lifestyle, taste and values.
B) Marketers do not know the actual or total income of their customers.
C) Income does not indicate how much a consumer will actually spend on a particular product or service.
D) The market segments from segmenting this way will not be accessible and sizeable.

Question 35

A form of segmentation commonly referred to 'lifestyle analysis' which includes looking at consumers' personalities and attitudes is called:

A) psychological segmentation.
B) psychographic segmentation.
C) sociocultural segmentation.
D) demographic segmentation.

Question 36

Segmentation based on one variable is rarely used and nearly all segmentation plans are in the form of:

A) dual variable segmentation.
B) hybrid segmentation.
C) complex segmentation.
D) triple variable segmentation.

Question 37

Usage and purchase behaviours such as usage rate and usage situation are:

A) factual, consumption-specific variables.
B) factual, consumer-rooted variables.
C) cognitive, company-specific variables.
D) cognitive, consumption-specific variables.

Question 38

A heightened interest in leisure travel that often occurs when people (single and married) reach their late 50s or early 60s, and an interest in learning to play golf are examples of:

A) the cohort effect.
B) ageing.
C) the conforming effect.
D) the age effect.

Question 39

Demographics such as a person's age, gender, ethnicity and income are objective and empirical, can be easily determined through questioning (some can even be observed) and are therefore ______, consumer-rooted variables.

A) cognitive
B) identifiable
C) real
D) factual

Question 40

A consumer's geographic location and postcode are measurable and objective factors. On the other hand, _________ consist of activities, interests and opinions, which are mostly attitudes (or cognitions) towards various issues, and cannot be classified according to standardised definitions.

A) psychographics
B) psychological characteristics
C) demographics
D) sociographics

Question 41

Much of the change in sex roles has come about because of the continued growth in the number of dual-income households and the number of single-parent families.

Question 42

Targeting can help marketers to find their marketing opportunities more efficiently.

Question 43

If a market segment meets the criteria of being identifiable, sizeable (sufficient), stable and accessible, the marketer will inevitably be interested in that segment.

Question 44

An airline distinguishing between travellers who use Economy Class, Business Class and First Class is an example of what type of sociocultural segmentation?

A) Family life cycle segments.
B) Social class segments.
C) Core cultural values.
D) Subcultural membership.

Question 45

When segmenting their customers based on usage, which of the following action should marketers undertake for low current share, high consumption customers (LowHighs)?

A) Chase.
B) Tickle.
C) Stroke.
D) Starve.

Question 46

________ is aggregating individual consumers into relatively small groups, based on data available about them from many different databases, and targeting them with tailor-made messages.

A) Microtargeting
B) Behavioural targeting
C) Hybrid targeting
D) Geodemographic targeting

Question 47

The following are all ways in which marketers can segment based on usage, except:

A) actual rate of usage.
B) brand attitude.
C) awareness level.
D) degree of brand loyalty.

Question 48

Prior to the widespread adoption of the marketing concept, mass marketing was the prevailing way of doing business with customers. The reason why the marketing concept has not been successful is due to mass marketing being a more logical strategy than market segmentation.

Question 49

Because segmentation strategies benefit both marketers and consumers, they have received wide support from both sides of the marketplace.

Question 50

Which of the following is not one of the three primary motivations in the VALS framework?

A) Ideals.
B) Achievement.
C) Self-expression.
D) Morals.

Question 51

'When I'm away on business, I stay at a Hilton Hotel; when I travel with my family, I stay at a Flag Inn.' This statement outlines why marketers use which kind of segmentation?

A) Sociocultural segmentation.
B) User-related segmentation.
C) User-situation segmentation.
D) Benefit segmentation.

Question 52

Differentiated marketing is a highly appropriate segmentation strategy for which of the following examples?

A) A small, local start-up business in the hospitality industry.
B) A large international company that provides a distinguished service without much competition.
C) An international, financially successful airline that operates in markets where it faces a lot of direct competition.
D) An online company providing a service which targets specialised computer scientists.

Question 53

Targeting Australian males aged between 18-34 years is a combination of demographic and psychographic segmentation.

Question 54

Hasbro, the makers of the popular board game Monopoly brought out a Russian version of the game including Russian street references and adding Russian bear tokens is an example of Hasbro successfully:

A) understanding the Russian market.
B) differentiating between Russians and Americans.
C) using psychographic personality and lifestyle basis of segmentation.
D) using sociocultural and cross-cultural affiliation basis for segmentation.

Question 55

Which of the following statements about the VALS framework is not true?

A) There are eight segments which divide consumers in terms of their primary motivations and level of resources.
B) VALS explains why different types of consumers often exhibit the same behaviours for different reasons.
C) The three primary motivations are taken from Freudians consumer theory.
D) 'Resources' (High to Low) refers to the range of psychological, physical, emotional, demographic and socioeconomic means and capacities that consumers have to draw upon.

Question 56

Market segmentation is the process of dividing a market into distinct subsets of consumers with common needs or characteristics and selecting one or more segments to target with a distinct marketing strategy.

Question 57

Geodemographic segmentation is most useful when advertisers' best prospects (in terms of affluence, available time, goals and interests) can be isolated in terms of:

A) highest to lowest income.
B) where they live.
C) what type of house they live in.
D) where they are from.

Question 58

The following are all examples of bases for sociocultural segmentation except:

A) family life cycle.
B) social class.
C) income.
D) core cultural values.

Question 59

Which of the following statements about microtargeting is not true?

A) It uses a very large number of sources of diverse origins to classify people.
B) It cross-tabulates large amounts of very detailed behavioural data consisting of very specific information on purchases, right down to a narrow product category or even a particular brand purchased.
C) Some models include peoples' online surfing patterns and purchases.
D) Microtargeting earned its name because it often employs very specified computer-generated models and algorithms created by micro-computing.

Question 60

Consumer cohorts are individuals born during the same period of time who grow and travel through life together, experiencing similar events as they grow up. Baby boomers in Australia are a special sort of such cohort.

Question 61

Identify and explain the five criteria for effective targeting of market segments.

Question 62

User-related segmentation is a popular and effective form of segmentation that categorises consumers in terms of their personality traits and characteristics.

Question 63

It is unlikely in hybrid segmentation for marketers to combine the use of demographic segmentation with psychographic segmentation.

Question 64

Benefit (or needs-based) segmentation requires finding the major benefits people look for in the product class, the kinds of people who look for each benefit and the brands that deliver each benefit.

Question 65

Sociocultural segmentation studies employ a battery of statements designed to identify relevant aspects of a consumer's personality, buying motives, interests, attitudes, beliefs and values.

Question 66

If a company is new and has not had many financial successes yet, a differentiation strategy would be better.

Question 67

Segmenting a market based on social class is not logical as consumers from different social classes never vary in terms of values, product preferences and buying habits.

Question 68

Concentrated marketing is also appropriate for the latter stages of the product life cycle when the product is being purchased by increasingly smaller numbers of consumers and is being phased out.

Question 69

Segmentation based on income alone is sufficient because marketers feel it is a strong indicator of the ability (or inability) to pay for a product (or brand) or a specific model of a product.

Question 70

Within the VALS framework, the segment of achievement includes consumers who desire social or physical activity, variety or risk.

Question 71

Behavioural targeting is likely to be employed by businesses who are taking a countersegmentation strategy.

Question 72

In some cases, businesses are in a position where they need to discover and seek a more generic consumer need and therefore adopt a countersegmentation strategy.

Question 73

Geodemographic segmentation is most useful when advertisers' best prospects (in terms of affluence, available time, goals and interests) can be isolated in terms of where they live.

Question 74

As a basis for segmentation, social class is determined by the three variables of income, education and suburb.

Question 75

What is market segmentation, how is it different from mass marketing and why is market segmentation important?

Question 76

Many providers of microtargeting claim to have developed 'formulas' (or propriety algorithms) that assign consumers into groups in a way that enables marketers to predict the impact of the messages sent.

Question 77

Concentrated marketing and differentiated marketing are two terms which describe the same strategy.

Question 78

VALS is a framework which helps marketers measure demographic information which includes variables such as a consumer's gender, age or occupation.

Question 79

Segmenting consumers based on their motivations, personality, perceptions, learning, level of involvement or attitudes is part of psychological segmentation.

Question 80

Psychographic segmentation has lost popularity among marketers as it does not provide marketers with enough detail about the market segment they wish to target.