Deck 5: Market Segmentation and Positioning

Question 1

The method by which whole markets are subdivided into different segments is referred to as the STP process. STP stands for:

A) Segmentation, Testing, and Positioning.
B) Selectivity, Targeting, and Positioning.
C) Segmentation, Targeting, and Perception.
D) Segmentation, Targeting, and Positioning.

Answer 1

D

Question 2

The build-up method of market segmentation:

A) Considers a market to consist of customers that are all different, so here the task is to find similarities.
B) Adopts the view that the market is considered to consist of customers which are essentially the same, so the task is to identify groups which share particular differences.
C) Considers that the process of market segmentation requires high levels of financial and staff support to be effective.
D) Considers that market segmentation is a building process that takes an organization years to master and perfect.

Answer 2

A

Question 3

To segment consumer good and service markets we use market information we have collected classified as segmentation bases. These bases include profile, behavioural, and psychological criteria. Examples of profile criteria include:

A) Gender, age, occupation, life stage, and benefits sought criteria.
B) Media usage, transaction history, age, and geo-graphics.
C) Demographic, lifestage, geographic, and geo-demographic criteria.
D) Occupation, income, product usage, and lifestyle (psychographics).

Answer 3

C

Question 4

Ultimately, managerial discretion and judgment determine which markets are selected and targeted and which others are ignored. In order for market segmentation to be effective, all segments must be:

A) Distinct, accessible, measurable, and profitable.
B) Desperate, accessible, many, and profitable.
C) Distinct, artistic, measurable, and profitable.
D) Distinct, accessible, measurable, and popular.

Question 5

This targeting approach recognizes that there are several market segments to target, each being attractive to the marketing organization. To exploit them, a marketing strategy is developed for each segment. This approach is referred to as:

A) Undifferentiated targeting approach
B) Differentiated targeting approach
C) Concentrated targeting approach
D) Customized targeting approach

Question 6

Organizational characteristics concern the characteristics of buyers within the organizations that make up a business market.

Question 7

Psychographic approaches rely on the analysis of consumers' activities, interests, and opinions to understand consumers' individual lifestyles and patterns of behaviour.

Question 8

In order for market segmentation to be effective, all segments must be DAMP.

Question 9

A differentiated targeting strategy suits a firm selling items perceived by consumers as being relatively homogeneous.

Question 10

A perceptual map provides a valuable tool to help managers position products by graphically illustrating consumers' perceptions of products according to product attributes customers value.

Question 11

Heritage and tradition is an example of an expressive positioning strategy.

Question 12

Which of the following are the two main approaches to segmenting the market?

A) Positioning method and STP.
B) Profile and psychological segmentation.
C) Breakdown method and build-up method.
D) Firmo-graphics and buyer characteristics method.

Question 13

Once segments are identified, an organization selects its preferred approach to targeting. Where there are just a few market segments, this targeting approach is adopted by firms with limited resources to fund their marketing strategy. This approach is known as:___________.

A) Undifferentiated approach.
B) Customized targeting strategy.
C) Niche marketing strategy.
D) Differentiated targeting approach.

Question 14

Hewlett Packard has developed its product range and marketing strategy to target the following user segments of computing equipment: home office users; small and medium businesses; large businesses; and health, education, and government departments. Which targeting approach have they adopted?

A) Undifferentiated targeting approach.
B) Niche-marketing strategy.
C) Differentiated targeting approach.
D) Customized targeting strategy.

Question 15

In business to business markets, this segmentation approach is useful because it allows the drawing of sales territories around particular locations that salespersons can service easily (e.g. Scotland, Scandinavia, Western Europe etc.). This approach is known as:

A) SIC Codes
B) Organizational size
C) Geo-targeting
D) Choice criteria

Question 16

Sensodyne toothpaste enables users to drink hot and cold beverages without the pain associated with sensitive teeth and gums. This is a good example of _____________ positioning strategy.

A) product features
B) user
C) benefit
D) heritage