Deck 8: Market Segmentation and Positioning

Question 1

The method by which whole markets are subdivided into different segments to allocate marketing programme activity is referred to as:

A) the PESTLE process
B) the DAMP process
C) the SWOT process
D) the STP process

Answer 1

D

Question 2

Marketing segmentation is:

A) the process of dividing the total market into several heterogeneous groups.
B) the process of bringing several small, unreachable segments into a definable market segment.
C) an attempt to reach all consumers with a single marketing mix.
D) practised by both profit-oriented and not-for-profit organizations.

Answer 2

D

Question 3

Whilst market segmentation is a useful process for organizations to divide customers into distinct groups for resource allocation purposes, it has been criticized for the following reasons except:

A) It is clear how valuable segmentation is to managers.
B) The process approximates offerings to the needs of customer groups, rather than individuals.
C) There is insufficient consideration of how market segmentation is linked to competitive advantage.
D) It is not clear how valuable segmentation is to managers.

Answer 3

A

Question 4

An example of a segmented market would be:

A) Honda separating its potential customers into economy car buyers and luxury car buyers.
B) a garden nursery seeing residents of urban areas and rural areas as one market needing trees.
C) high-income and low-income consumers being treated the same at Marks and Spencer (M&S).
D) Phillips marketing its product to all residents of the European Union with one marketing mix based on the concept 'Sense and Sensibility'.

Question 5

Using the family lifecycle concept, which of the following items would be least likely to be marketed to a young single working adult who is still living at home?

A) A recently released portable music device (e.g. Apple iPod).
B) The latest trends in fashion clothing.
C) A new top of the range seven-seater people carrier.
D) A high-end home entertainment centre.

Question 6

Key variables concern age, sex/gender or gender identity, occupation, level of education, religion, social class, and income characteristics. This is _______ ___ segmentation criterion.

A) demographic
B) lifestage
C) psychographic
D) income

Question 7

'Positioning is the means by which goods and services can be differentiated from one another and so give consumers a reason to buy'. Positioning encompasses:

A) the physical attributes and the functionality that a brand offers.
B) how customers perceive the brand relative to other competing brands in the market place.
C) the intangible attributes that a brand offers. For example, the reputation, prestige and allure that the brand generates.
D) all of the above options are correct.

Question 8

____________ can be used to position brands either functionally or expressively.

A) Marketing communications
B) Marketing planning
C) Marketing research
D) Marketing orientation

Question 9

Marketing communications can be used in one of two main ways to position brands, namely to position a brand either functionally or expressively (symbolically). Examples of expressive positioning strategies include:

A) positioning based on the product or brands price.
B) positioning based on the product or brands features.
C) positioning based on the use of products.
D) positioning based on the product or brand heritage.

Question 10

A customized targeting strategy predominates in B2B markets (e.g. marketing research or advertising services) or consumer markets with high-value, highly customized products (e.g. purchase of a custom-made car).

Question 11

Standard Industrial Classification (SIC) codes are used to designate similar industrial markets.

Question 12

The method by which whole markets are subdivided into different segments is referred to as the STP process. This stands for Segmenting, Testing and Positioning.

Question 13

To segment consumer markets, markets can be classified according to behavioural, psychological and profile criteria. Demographic data is an example of psychological criteria for segmentation.

Question 14

The benefits sought approach is based on the principle that we should provide customers with exactly what they want, based on the benefits derived from using a particular proposition.

Question 15

Organizational characteristics, such as organizational size and location, are sometimes referred to as firmographics.

Question 16

A concentrated marketing strategy (or niche marketing strategy) is used where there are only a few market segments.

Question 17

Perceptual mapping data reveal strengths and weaknesses that can help management to make strategic decisions about how to differentiate based on the attributes that matter the most to customers.

Question 18

Mainstream brands tend to spring to mind when consumers think of the category.

Question 19

This is the division of a market into different groups of customers with distinctly similar needs and offering requirements.

A) Targeting
B) Segregation
C) Segmentation
D) Breakdown

Question 20

The ________ is customer-oriented, seeking to determine common customer needs and to identify market segments between which identifiable differences exist-segment heterogeneity-but within which similarities exist between members-member homogeneity.

A) market segmentation
B) breakdown method.
C) build-up method.
D) business markets.

Question 21

Understanding the complexity associated with the different attributes and brands can be made easier by developing a visual representation of each market known as:

A) Mind mapping
B) Marketing mapping
C) Perceptual mapping
D) Geographic mapping

Question 22

In business to business markets, businesses may fail to overcome barriers encountered when implementing their segmentation plans. What are the identified barriers?

A) Process issues, lack of sales force, and lack of evaluation mechanism.
B) Infrastructure barriers, lack of market research, and lack of evaluation mechanism.
C) Infrastructure barriers, process issues, and implementation barriers.
D) Implementation barrier, lack of commitment from managers, and lack of positioning approach.

Question 23

ACORN breaks people into groups based on the postcodes within which they live, based on the following categories, except:

A) Affluent Achievers
B) Comfortable Communities
C) Rural Adversity
D) Not Private Households

Question 24

For market segmentation to be effective, the elements can be applied (Kotler, 1984), comprising the following four criteria:
Distinct, Accessible, Measurable, Assurance.