Deck 9: Market Segmentation, Targeting and Positioning

Question 1

In terms of a segment's structural attractiveness, which of the following makes a segment less attractive?

A) a segment where there are many powerful buyers
B) a segment where many potential substitutes exist
C) a segment that has powerful suppliers
D) a segment that has aggressive competitors
E) all of the above

Answer 1

E

Question 2

People over 55 make up 21 per cent of the Australian population and control per cent of the nation's wealth.

A) 49
B) 45
C) 39
D) 60
E) 50

Answer 2

C

Question 3

Marketers of clothing, fashion accessories, cosmetics and magazines are MORE likely to use which segmentation variable?

A) social class
B) age
C) usage rates
D) gender
E) income

Answer 3

D

Question 4

The final step in the development of a positioning strategy is to:

A) determine which product benefits consumers consider most important.
B) communicate the position effectively to consumers.
C) choose the actual positioning strategy.
D) select the product benefit(s) to promote.
E) evaluate the positioning strategy against criteria aimed at determining the potential success of the strategy.

Question 5

The strategy of focusing on or gaining a large share of one or a few submarkets is called:

A) concentrated marketing.
B) mass marketing.
C) counter- segmented marketing.
D) differentiated marketing.
E) segmented marketing.

Question 6

An exercise equipment company produces exercise equipment designed for people with back injuries. Since this is a small market largely ignored by other exercise equipment makers, this equipment manufacturer is engaged in marketing.

A) local
B) aggregated
C) individual
D) derived
E) micro

Question 7

The Tasty Snacks Company has determined that consumers' taste preferences differ according to the region of the country in which they live. The firm has segmented its market on the basis of:

A) demographics.
B) psychographics.
C) geographics.
D) behaviouristics.
E) corporate variables.

Question 8

The first step in a customer- driven marketing strategy is market:

A) analysis.
B) targeting.
C) positioning.
D) probing.
E) segmentation.

Question 9

In parts of remote outback Australia, people live on vast cattle stations where the nearest town is often 500 kilometres away. Many of these people are unable to receive radio or TV signals, do not have access to broadband and often receive supplies by light aircraft on an infrequent basis when the weather permits. Even though these consumers may have clearly articulated needs and may be affluent, from a marketing standpoint, they are difficult to target because they are NOT:

A) profitable.
B) accessible.
C) actionable.
D) substantial.
E) measurable.

Question 10

When McDonalds restaurants develop different products for kids and adults and devises different advertising messages for each of its core market segments, it is practising which approach to segmentation?

A) differentiated marketing
B) mass marketing
C) concentrated marketing
D) undifferentiated marketing
E) local marketing

Question 11

Mini Case 9- 1
A group of investors are thinking of starting a for- profit institution to be called Heaven University. They have identified a small segment of society that is displeased with the high cost of HECS or upfront fees and is willing to forego all social and sporting extracurricular activities in order to get an inexpensive, quality education in three years. The university investors will advertise nationally. Its target audience is individuals between 18- 40 years of age, who have either never undertaken a University degree or who failed to complete a degree commenced within the last ten years. The investors want to attract students who are currently working at a job with which they are dissatisfied. Heaven will only offer three degree programmes, which cannot be modified to individual student needs. Research has shown that these are degrees that this market segment repeatedly seeks. Students can earn their degrees over the Internet and only have to attend a one- week seminar on campus twice a year.
Refer to Mini Case 9- 1. The investors have identified their market through the use of segmentation variables.

A) psychographic and behavioural
B) psychographic, behavioural, and geographic
C) geographic and demographic
D) demographic, psychographic, and behavioural
E) behavioural, geographic, and demographic

Question 12

A seller produces and distributes large quantities of a single product to all buyers in:

A) single product marketing.
B) niche marketing.
C) target marketing.
D) undifferentiated marketing.
E) multiple product marketing.

Question 13

If a marketing manager segments the market into culture- oriented, sports- oriented, or outdoor- oriented groups, he or she is segmenting on the basis of:

A) usage occasion.
B) psychographic lifestyle.
C) user status.
D) readiness stage.
E) loyalty status.

Question 14

Buyers are divided into groups based on their knowledge of, attitude toward, use of, or response to a product in segmentation that is:

A) lifestyle.
B) psychographic.
C) psychological.
D) behaviour.
E) social class.

Question 15

A technique that can be used to define important market segments more precisely and involves using more than one segmentation variable is known as:

A) principal components analysis.
B) recursive partitioning.
C) multi- dimensional scaling segmentation.
D) multivariate demographic segmentation.
E) cluster analysis.

Question 16

Shannons Insurance is a highly regarded, niche- market, service provider that specialises in providing car insurance for vintage and classic cars. Shannons' customers are defined as car enthusiasts of any age, who value the tailored insurance products offered by the company. Shannons has MOST likely segmented on which of the following?

A) psychographics
B) usage rate
C) benefits- sought
D) demographics
E) behavioural

Question 17

Which of the following is an example of a behavioural segmentation variable?

A) user status
B) social class
C) personality
D) generation
E) religion

Question 18

An approach to segmentation that identifies consumers with similar needs or purchasing habits even though they may be located in different countries is known as:

A) behavioural segmentation.
B) international segmentation.
C) geographic segmentation.
D) cross cultural segmentation.
E) intermarket segmentation.

Question 19

The Cyclops Corporation is attempting to determine which of several possible market segments to enter. The firm is involved in:

A) market positioning.
B) market probing.
C) mass marketing.
D) market segmentation.
E) market targeting.

Question 20

Red Tulip's "After Dinner Mints" brand is positioned in terms of:

A) benefit segmentation.
B) demographic segmentation.
C) behaviour segmentation.
D) occasion segmentation.
E) habit segmentation.

Question 21

Because consumer needs and wants change with age, to segment their market, companies may use:

A) age and life- cycle.
B) need/want relationships.
C) lifestyles.
D) psychographics.
E) income levels.

Question 22

Which of the following customer profiles uses psychographic descriptors exclusively?

A) Randall loves long weekends in the countryside to relieve the pressure of his medical practice.
B) Ben is self confident in his role as a park ranger.
C) Roger is a radiographer with an income of over $80 thousand per year.
D) Peter likes nothing better than to unwind with his mates, over a drink, at the football game.
E) Gail is 21, works as a secretary and loves riding a mountain bike in her spare time.

Question 23

In terms of its affect on the marketing process, differentiated marketing:

A) significantly decreases manufacturing costs.
B) reduces inventory costs.
C) keeps advertising costs low.
D) lowers total sales, which increases profits by increasing the margin on each sale.
E) increases administrative and production costs.

Question 24

A segmentation study of people who would be interested in subscribing to a cooking magazine discovered three distinct groups of potential subscribers: (1) those who wanted to cook the same foods their mothers cooked for them, (2) those who wanted to learn about the latest cooking trends and fads, and (3) those who were interested in learning about a variety of different international cuisines. This magazine discovered its market can be segmented using variables.

A) geographic
B) demographic
C) social class
D) generation
E) psychographic

Question 25

The Modern Group provides customers with a diverse range of home improvement products including, roofing, shutters, roller blinds, solar panels, pergolas and carports. A distinctive feature of all Modern products is that they include free delivery and installation. This is an example of:

A) brand differentiation.
B) image differentiation.
C) product differentiation.
D) service differentiation.
E) personnel differentiation.

Question 26

John runs a small bottle shop in inner- city Sydney. To avoid the big price discounters he has developed relationships with local residents and provides a free delivery and pickup service when they hold parties. He has also developed a relationship with local boaties who operate cruises around the harbour. Each of these groups of customers require a slightly different product range and pricing strategy. John is engaging in:

A) differentiated marketing.
B) entrepreneurship.
C) concentrated marketing.
D) undifferentiated marketing.
E) portfolio marketing.

Question 27

The final step in a customer- driven marketing strategy is market:

A) segmentation.
B) analysis.
C) targeting.
D) aggregation.
E) positioning.

Question 28

The full positioning of a brand; that is, the full mix of benefits on which a brand is differentiated and positioned is known as its:

A) core benefits statement.
B) positioning statement.
C) value proposition.
D) advertising tag line.
E) positioning map.

Question 29

The major benefit of following an undifferentiated approach is:

A) broad product lines.
B) less competition.
C) greater consumer satisfaction.
D) cost economies.
E) greater profit.

Question 30

The segmentation approach that divides markets into light- , medium- , and heavy- user groups is referred to as:

A) lifestyle segmentation.
B) benefit segmentation.
C) life cycle segmentation.
D) demographic segmentation.
E) usage segmentation.

Question 31

is the act of designing the company's offerings and image so they occupy a meaningful and distinct competitive position in the target customers' minds.

A) Maximarketing
B) Image differentiation
C) Positioning
D) Integrated marketing
E) Product and service differentiation

Question 32

The seller produces two or more products that have different features, styles, quality designed to appeal to different socioeconomic groups is MOST likely using:

A) micromarketing.
B) target marketing.
C) differentiated marketing.
D) concentrated marketing.
E) dual marketing.

Question 33

In the sale of expensive apparel and jewellery, the David Jones Department Store would probably use segmentation based on:

A) volumetrics.
B) age.
C) benefit.
D) income.
E) occupation.

Question 34

Marketers of cars, boats, fine dining, travel and jewellery are MORE likely to use which segmentation variable?

A) income
B) family life- cycle
C) age
D) usage rates
E) marital status

Question 35

Anastasia and her husband love to eat food cooked on the barbecue grill. Anastasia made her purchase decision for a barbecue based on the relative ease and speed with which it could be fixed if something went wrong. Arabella bought a particular brand and type of grill because of its:

A) trustworthiness.
B) performance quality.
C) repairability.
D) durability.
E) reliability.

Question 36

The base that is most commonly used in market segmentation is which of the following?

A) geographic
B) benefits- sought
C) behavioural
D) psychographic
E) demographic

Question 37

Which of the following customer profiles uses demographic descriptors exclusively?

A) Peter is an IT consultant earning $95,000 per year and loves reading science and technology magazines.
B) Bobby is at university, works part- time and has recently formed a punk rock band.
C) Marcia, aged 18 years, is studying for a Commerce degree and is a high achiever.
D) Cindy is enrolled at primary school and loves playing with her Barbie Doll.
E) Greg, aged 40 years, is divorced and has custody of his three dependent children.

Question 38

The seller identifies market segments, selects one or more of those segments, and develops products and marketing mixes tailored to each segment in:

A) micromarketing.
B) mass marketing.
C) product- variety marketing.
D) target marketing.
E) segment marketing.

Question 39

Marketers should be careful to guard against when using age and life cycle segmentation.

A) gender bias
B) underestimating
C) stereotyping
D) cultural bias
E) traditional marketing

Question 40

Which of the following positioning strategies is most likely to be difficult to sustain in the long term?

A) more- for- the- same
B) less- for- much- less
C) same- for- less
D) more- for- less
E) more- for- more

Question 41

The Melbourne International Comedy Festival (MICF) is the second largest dedicated comedy event globally. In an effort to expand the market, festival organisers developed a new product, The Comedy Roadshow, designed to take the festival on tour around Australia. MICF now has two major products: the main event which features approximately 400 performances staged over one month and which appeals to urban consumers aged under 35 years and the Roadshow which features 60 gigs and appeals to broader age groups living in regional districts. MICF's approach to segmentation is BEST described as:

A) differentiated marketing.
B) undifferentiated marketing.
C) local marketing.
D) mass marketing.
E) concentrated marketing.

Question 42

Which of the following customer profiles uses behavioural descriptors exclusively?

A) Mike, a regular visitor at the local café, describes himself as a heavy coffee drinker and enjoys socialising with friends over a good coffee.
B) Greg, an enthusiastic computer gamer, is ready to purchase a new game and is very loyal to the Sony brand.
C) Jan is a serious student who always completes her assignments on time and to a very high standard.
D) Alice is an enthusiastic cook and always bakes a home- made cake for her friends' birthdays and special occasions.
E) Marcia has just landed her first job as an IT consultant and has ambitions to make her first million dollars by age 40 years.

Question 43

The complex set of perceptions, impressions and feelings that consumers hold for the product compared with competing products is known as:

A) mapping.
B) unique selling proposition.
C) positioning.
D) placement.
E) all of the above

Question 44

The pattern known as double jeopardy refers to which of the following?

A) Consumers with high levels of brand loyalty also tend to be the least frequent purchasers of that brand.
B) The observation that most consumers are not 100 per cent loyal.
C) Consumers with high levels of brand loyalty also tend to be the least affluent segments.
D) Eight per cent of your customers are likely to be 20 per cent loyal.
E) Brands that enjoy high levels of consumer loyalty tend to be niche products or small, local services.

Question 45

The Alpha Corporation uses advertising which attempts to demonstrate the superiority of its product over named competitors on a feature by feature basis. The firm is positioning its product:

A) away from competitors.
B) against its competitors.
C) usage occasion.
D) as similar to its competitors.
E) for a product class.

Question 46

If the positioning strategy offers a difference not offered by others or is offered in a sufficiently different way from others, it meets the criterion of:

A) importance.
B) superiority.
C) profitability.
D) pre- emption.
E) distinctiveness.

Question 47

Dell Computers builds, markets, delivers and installs custom- configured computers for individual customers. This is best described as:

A) niche marketing.
B) mass customisation.
C) micromarketing.
D) hyper segmentation.
E) hyper marketing.

Question 48

The iconic Australian spread, Vegemite, has used the slogan "Puts a rose in every cheek" for many years. Which of the following strategies does this slogan most likely support?

A) market specialisation
B) differentiated marketing
C) product specialisation
D) single- segment concentration
E) undifferentiated marketing

Question 49

When an effective programme can be designed to attract and serve the market, this is known as:

A) actionable.
B) differentiable.
C) measurable.
D) accessible.
E) substantial.

Question 50

To be useful, market segments should rate favourably on a number of key criteria. Which of the following is NOT one of these criteria?

A) Segments should be accessible in terms of reach and access.
B) Segments should be actionable.
C) Segments should be substantial enough to be profitable.
D) Segments should be reliable.
E) Segments should be measurable.

Question 51

Which of the following statements BEST describes the difference between age and life- cycle segmentation and generational segmentation?

A) Age and life- cycle segmentation is a relatively straightforward segmentation strategy while generational segmentation is much harder to implement.
B) Age and life- cycle segmentation assumes the effect of time, and generational segmentation is based on the effects of economic and social status.
C) There are no differences between age and life- cycle segmentation and generational segmentation.
D) Age and life- cycle segmentation assumes people are influenced by where they are in life, and generational segmentation assumes they are influenced by what they grew up with.
E) Age and life- cycle segmentation is rigid and unchanging over time while generational segmentation changes with each decade.

Question 52

A food magazine carried out a segmentation study of people who would be interested in subscribing and discovered three distinct groups of potential subscribers: (1) people who wanted to cook the same foods their mothers cooked, (2) people who wanted to learn about the latest cooking trends and fads, and (3) people who were interested in learning about a variety of different international cuisines and exotic ingredients. This magazine is using variables for the segmentation study.

A) social class
B) demographic
C) geographic
D) generation
E) psychographic

Question 53

Which of the following statements is MOST correct about segmenting by usage?

A) It rarely happens because of cost.
B) It involves giving a discount to those who buy small amounts often.
C) It is a strategy to improve purchase frequency.
D) It is an example of benefits desired segmentation.
E) It is an example of behavioural segmentation.

Question 54

When a market segment can be reached in terms of advertising and distribution, this is known as:

A) actionable.
B) differentiable.
C) measurable.
D) accessible.
E) substantial.

Question 55

If a marketer decides to segment a market based on neighbourhoods, the marketer will have chosen the method of segmentation.

A) geographic
B) behavioural
C) cultural
D) psychographic
E) demographic

Question 56

A life insurance company offers prospects a toll- free number to call and promises not to ask complex health questions is using as its services differentiation strategy.

A) customer training
B) distribution
C) ordering ease
D) delivery
E) installation

Question 57

One of the legendary pioneers of television advertising, Rosser Reeves, believed that firms should develop a USP for each brand and stick to it. What does USP stand for?

A) universal strategic practice
B) universal sales product
C) unique sales pitch
D) unique services practice
E) unique selling proposition

Question 58

A form of segmentation that is especially useful when marketers want to develop new product concepts is:

A) psychographic.
B) geographic.
C) behavioural.
D) benefits- sought.
E) demographic.

Question 59

Market positioning is BEST described by which of the following statements?

A) Selecting distribution channels that will provide the best possible access to target markets.
B) Arranging for a market offering to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers.
C) Negotiating with retailers to have a product or brand occupy a prominent place on retail shelves or retail displays.
D) Offering home delivery to customers.
E) none of the above

Question 60

is a poor predictor of a person's lifestyle

A) Gender
B) Nationality
C) Occupation
D) Marital status
E) Age

Question 61

A manufacturer of toothpaste has segmented the market and developed distinct product offerings designed to appeal to the three different segments. One product offers all day protection from tooth decay; a second product offers whiter, brighter teeth; the third product offers all day mouth freshness and yet another product offers protection for sensitive teeth. Which approach to segmentation is the company MOST likely to have used?

A) usage occasion
B) demographic segmentation
C) psychographic segmentation
D) behavioural segmentation
E) benefits- sought segmentation

Question 62

Which of the following is an example of a psychographic segmentation variable?

A) education level
B) usage rate
C) purchase readiness
D) lifestyle
E) occupation

Question 63

A firm targets one or more segments and designs separate offers for each under the marketing technique called:

A) universal marketing.
B) concentrated marketing.
C) undifferentiated marketing.
D) distinctive marketing.
E) differentiated marketing.

Question 64

Consumers can show their allegiance to a product or retail outlet through repeat patronage or positive word- of- mouth recommendations. Marketers can use this information to segment customers on the basis of:

A) store type.
B) brand preference.
C) loyalty.
D) user status.
E) usage rate.

Question 65

Even though demographic bases are the most commonly used in segmentation, many marketers believe that variables are the best starting point for building market segments.

A) benefits- sought
B) psychographic
C) geographic
D) behavioural
E) demographic

Question 66

Market targeting is BEST described by which of the following statements?

A) Researching and preparing detailed profiles of distinct groups of buyers within the marketplace.
B) Dividing a market into smaller segments of buyers with distinct characteristics that might require separate marketing strategies.
C) Evaluating the attractiveness of distinct groups of buyers and selecting one or more groups for special attention.
D) Dividing a population into smaller segments of buyers with distinct characteristics that might require separate marketing strategies.
E) Dividing a target market into smaller segments that are likely to purchase a given brand.

Question 67

Which of the following approaches to segmentation would NOT normally be associated with business markets?

A) demographic characteristics
B) operating characteristics
C) situational factors
D) psychographics
E) personal characteristics

Question 68

Dividing a market into distinct groups of buyers who might call for separate products or marketing mixes is referred to as market:

A) aggregation.
B) positioning.
C) segmentation.
D) targeting.
E) division.

Question 69

A product's position is defined by:

A) the company.
B) the industry.
C) the competition.
D) the consumer.
E) the marketer.

Question 70

Which statement BEST explains the transition from segmentation to target marketing?

A) It involves evaluating the various segments and choosing a segment or segments to focus marketing activities.
B) It is a process which transcends the understanding of needs and wants.
C) It is always about quickly to capitalise on opportunities.
D) A marketing organisation will make each segment interested in their product.
E) They are the same thing.

Question 71

The process by which firms interact one- to- one with masses of customers to design products and services tailor- made to individual customers' specifications is known as:

A) hyper segmentation.
B) mass marketing.
C) mass customisation.
D) differentiated marketing.
E) intermarket segmentation.

Question 72

Dove beauty soap has used a consistent message in its advertising for many years. "Dove is not a soap," consumers are informed, "it's a moisturiser." Which of the following BEST describe Dove's positioning strategy?

A) positioning by market segment or user group
B) positioning against a competitor
C) positioning for a product class
D) positioning by usage occasion
E) positioning by benefits- sought

Question 73

The Accor Hotel Group operates five distinct hotel brands, each positioned at a different segment of the market. Sofitel is the luxury brand appealing to affluent travellers. Novotel is the mid- price, three- star hotel group appealing to both corporate market and independent travellers. Ibis is the two- star hotel division for the price- conscious. Formula One is positioned at the budget price end of the market; offering limited services it appeals to backpackers and families on very tight budgets. Finally, the Hotelia chain caters for extended hotel stays and appeals to the seniors market. The Accor group is using which approach to segmentation?

A) niche
B) individual
C) undifferentiated
D) target
E) differentiated

Question 74

A firm that seeks the lowest costs and prices in order to create the largest potential market would probably use:

A) target marketing.
B) product variety marketing.
C) micromarketing.
D) chain marketing.
E) undifferentiated marketing.

Question 75

When a company is seeking to determine which point or points of difference to promote, it should look at several key critera. Which of the following is NOT one of the criteria for an effective point of difference?

A) For customers, it should deliver more for less.
B) It should be valuable to target buyers.
C) Buyers should be able to afford to pay for the point of difference.
D) It should be distinctive among competitors.
E) It should be difficult for competitors to copy.

Question 76

Emma and Sarah operate an old- time coffee shop straight out of the 1950s with thick chocolate shakes, poodle- skirted waitresses, and a jukebox that contains 45 RPM records by such artists as the Drifters and the Platters. Emma and Sarah are using to create image differentiation.

A) form
B) service
C) style
D) atmosphere
E) personnel

Question 77

When prospective customers give their express or implied consent for a company to communicate with them, this is known as which of the following?

A) customer acquiescence
B) prospecting
C) relationship marketing
D) permission marketing
E) none of the above

Question 78

The place a product occupies in the mind of consumers relative to competing brands is called:

A) attribute.
B) position.
C) segment.
D) image.
E) mind map.

Question 79

The Beta Corporation is preparing the strategy it will use in marketing its product against the competition it will face in its selected market segments. The firm is engaged in:

A) market promotion.
B) target marketing.
C) marketing planning.
D) market segmentation.
E) market positioning.

Question 80

Online behavioural advertising is BEST described as which of the following?

A) Targeting consumers who are heavy users of Internet and social media.
B) Targeting ads to people who have behaved online in a way that indicates they are interested, or might be interested, in a product.
C) An advertising campaign that uses ads placed in traditional media such as TV and magazines merely as a means of driving consumers onto relevant websites where they can place an order or find out more product information.
D) Using data mining and online sources of information to segment the market and build rich consumer profiles.
E) none of the above