Deck 10: Segmenting, Targeting, and Positioning

Question 1

Your new employer has asked you, as a new marketing graduate, to identify a group of potential customers who might respond in a similar way to a given set of marketing efforts. You have been asked to identify a(n) ________.

A) target market
B) market segment
C) market
D) market strategy
E) undefined niche

Answer 1

B

Question 2

Which of the following is the most popular base for segmenting markets?

A) demographic
B) needs
C) psychographic
D) behavioral
E) values

Answer 2

A

Question 3

________ is communicating a product or service message to as broad a group of people as possible with the purpose of positively influencing sales.

A) Market targeting
B) Target marketing
C) Mass marketing
D) Positioning
E) Multisegment marketing

Answer 3

C

Question 4

The initial method of segmenting a population is usually ________.

A) lifestyle
B) needs
C) usage
D) loyalty
E) demographic

Question 5

The most basic forms of market segmentation involve ________ and ________ criteria.

A) psychographic; behavioral
B) psychographic; demographic
C) behavioral; needs
D) values; demographic
E) values; needs

Question 6

Examples of ________ segmentation variables include integrity, respect, and honesty.

A) behavioral
B) psychographic
C) values
D) loyalty
E) needs

Question 7

Which of the following criteria is it most important that a group meet in order to be considered a true segment?

A) be replicable over time
B) be diverse demographically
C) have similar loyalty rates
D) be a heterogeneous set
E) be underserved by competitors

Question 8

Consumers can show their allegiance to retail outlets or product or service brands. Marketers can use this information to segment consumers by ________.

A) life events
B) loyalty
C) values
D) perception
E) needs

Question 9

Demographic segmentation is so frequently used in market segmentation because it ________.

A) creates smaller segments than other methods do
B) creates more easily reached segments than other methods do
C) does not involve stereotypes
D) involves the easiest information to obtain
E) involves the fewest attributes

Question 10

Many firms make an effort to identify smaller, better-defined target groups by using ________.

A) user rates
B) loyalty segmentation
C) multiple segmentation bases
D) positioning
E) mass marketing

Question 11

The ________ is a group of characteristics that is used to assign segment members.

A) perceptual map
B) demographic base
C) segmentation base
D) USP
E) position statement

Question 12

The division of buyers into groups based on lifestyle, class, or personality characteristics is ________ segmentation.

A) behavioral
B) psychographic
C) values
D) demographic
E) needs

Question 13

Which of the following is the process of dividing a market into meaningful and distinct customer groups?

A) market targeting
B) segmentation
C) positioning
D) competitive advantage
E) differentiation

Question 14

The division of buyers into groups based on their current and desired level of interaction with a particular market category is ________ segmentation.

A) behavioral
B) psychographic
C) values
D) demographic
E) needs

Question 15

Which type of segmentation is most related to the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item?

A) behavioral
B) psychographic
C) needs
D) impulse
E) values

Question 16

The division of buyers into groups based on what they prefer and what motivates them to respond to marketing activities is ________ segmentation.

A) behavioral
B) psychographic
C) values
D) demographic
E) needs

Question 17

The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation.

A) behavioral
B) psychographic
C) values
D) demographic
E) needs

Question 18

Which of the following is NOT an example of a demographic segmentation variable?

A) lifestyle
B) income
C) ethnicity
D) gender
E) age

Question 19

Consumer and business marketers use many of the same variables to segment markets. Business marketers use all of the following EXCEPT ________.

A) operating characteristics
B) purchasing approaches
C) situational factors
D) personal characteristics
E) brand personalities

Question 20

Pendergraff Pet Supplies divides the pet market according to the owners' race, occupation, income, and family life cycle. What type of segmentation does Pendergraff use?

A) geographic
B) behavioral
C) needs
D) demographic
E) psychographic

Question 21

Mass marketers such as Target and Walmart often ignore market segment differences and target the whole market with one offer. What is this approach to targeting?

A) undifferentiated marketing
B) differentiated marketing
C) target marketing
D) concentrated marketing
E) niche marketing

Question 22

Multisegment marketing is likely to ________ and ________.

A) increase research costs; decrease shipping costs
B) decrease resale value; increase sales volume
C) increase sales potential; increase costs
D) increase sales potential, decrease costs
E) decrease sales potential; decrease costs

Question 23

Which of the following statements about segmenting international markets is true?

A) Countries in close physical proximity to each other have similar cultural, economic, and political environments.
B) Consumers in one country's market have more in common with each other than they do with consumers in other countries.
C) Segments that span national boundaries can be more valuable to companies than segments that exist within a single country.
D) The basis for grouping customers across country borders should be immigration.
E) Global marketing strategies that identify consumer needs and wants within national boundaries are the most successful.

Question 24

Which of the following is an example of a strategic question?

A) What type of marketing offer will most appeal to this segment?
B) Who are the consumers who are most interested in what my brand stands for?
C) How can I best reach identified consumer segments?
D) What is the potential profitability of this consumer segment?
E) What price is our target willing to pay for our product?

Question 25

Generational marketing involves grouping consumers by age and ________ factors.

A) behavioral
B) socioeconomic
C) lifestyle
D) values
E) psychographic

Question 26

Using concentrated marketing, the marketer goes after a ________ but ________ consumer segment.

A) small; undefined
B) small; well-defined
C) large; well-defined
D) large; undefined
E) medium-sized; local

Question 27

Which of the following is the process of evaluating and selecting the most viable market segment to enter?

A) segmentation
B) differentiation
C) targeting
D) market mixing
E) positioning

Question 28

The size and growth potential for a segment includes which of the following considerations?

A) the viability of the segment
B) brand objectives
C) the level of competition within the segment
D) the strategies used by competitors
E) company resources

Question 29

The business segmentation variable of ________ refers to customer desires such as service support, cutting-edge technology, or financing terms.

A) demographics
B) purchasing approaches
C) customer operating characteristics
D) personal characteristics
E) benefits sought

Question 30

The business segmentation variable of ________ refers to where power resides in an organization.

A) demographics
B) purchasing approaches
C) customer operating characteristics
D) personal characteristics
E) benefits sought

Question 31

To evaluate the different market segments your company serves, you would be LEAST likely to look at which of the following factors?

A) segment size
B) segment growth potential
C) segment attractiveness
D) segment history
E) brand resources

Question 32

Which of the following is a relatively recent development that optimizes the online advertising potential for products and services?

A) behavioral targeting
B) cohort marketing
C) concentrated marketing
D) usage-rate targeting
E) functional positioning

Question 33

In considering whether to select more than one customer segment as a target market, a company would be LEAST likely to consider which of the following?

A) its ability to meet the requirements of the customers
B) whether each segment has critical mass
C) the overall cost of meeting customer requirements
D) whether the segments share core similarities of attitude, behavior, and economics
E) the potential profitability of serving different customer groups

Question 34

When New Port Shipping uses segmented marketing, it targets several segments and offers a unique product tailored to each one. This approach is called ________ marketing.

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

Question 35

Which type of market coverage strategy requires a company to have the most detailed understanding of its target market?

A) mass marketing
B) behavioral targeting
C) niche marketing
D) undifferentiated marketing
E) multisegment marketing

Question 36

________ occurs when a business first identifies a market segment it wants to serve and then develops a product or service that is appropriate for that segment.

A) Niche targeting
B) Concentrated targeting
C) Market targeting
D) Target marketing
E) Behavioral targeting

Question 37

Which of the following best explains why a company might adopt an undifferentiated targeting strategy?

A) to more efficiently focus on its CRM strategy
B) to remove the need for clear positioning
C) to more easily appeal to global markets
D) to reduce production and advertising costs
E) to successfully compete in a market with many competitors

Question 38

________ involves looking at individuals with similar life experiences at different times in their history.

A) Behavioral targeting
B) Generational marketing
C) Cohort marketing
D) Target marketing
E) Concentrated marketing

Question 39

An undifferentiated marketing strategy is most likely to be successful in which of the following scenarios?

A) The market has many competitors.
B) The product or service has wide appeal.
C) The company has limited resources.
D) The market is slowly shrinking.
E) The market has a few strong competitors.

Question 40

A marketer of exclusive products would be most likely to use ________ marketing.

A) mass
B) undifferentiated
C) differentiated
D) niche
E) universal

Question 41

At one time Miller Beer was known as the "champagne of bottled beer." Unfortunately, Miller drinkers did not drink much beer. To increase sales, Miller was repositioned to attract the members of the middle working class. This segmentation approach is ________.

A) user loyalty
B) usage rate
C) needs
D) behavioral
E) psychographic

Question 42

Recognizing that some people eat cereal because of its nutritional value, some people eat cereal because it is easy to prepare, and some eat cereal because it tastes good is part of the ________ process.

A) perceptual map
B) segmentation
C) customerization
D) differentiation
E) positioning

Question 43

Which type of positioning is based on the attributes of products or services and their corresponding benefits?

A) unique
B) symbolic
C) functional
D) experiential
E) optimized

Question 44

For Hyundai Corporation, customers who care about the price of a car and its operating economy make up one ________.

A) market position
B) value network
C) market segment
D) customer extension
E) value chain

Question 45

Which group determines a product's position relative to competing products?

A) manufacturers
B) wholesalers
C) retailers
D) consumers
E) suppliers

Question 46

You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand is differentiated and positioned. This full positioning of the brand is called ________.

A) its value proposition
B) target marketing
C) brand optimization
D) its value profile
E) differentiated marketing

Question 47

Jolene Enterprises mass produces an all-purpose floor cleaner, mass distributes it, and mass promotes it. This firm uses ________ marketing.

A) segmented
B) undifferentiated
C) focused
D) differentiated
E) concentrated

Question 48

When Burger King targets children, teens, adults, and seniors with different ads in different media, it is practicing ________ segmentation.

A) demographic
B) values
C) psychographic
D) behavioral
E) usage

Question 49

The critical element of effective search engine optimization is the selection of ________.

A) consumer segments
B) positioning
C) key words
D) target markets
E) segmentation bases

Question 50

Favorite Memories is a small company that specializes in serving women over the age of 50 who are special occasion gift shoppers overlooked by major competitors. Which of the following best describes Favorite Memories' market coverage strategy?

A) undifferentiated marketing
B) mass marketing
C) differentiated marketing
D) niche marketing
E) multisegment marketing

Question 51

When marketers at Procter & Gamble selected the Millennials, a demographic that includes college students, as an untapped group of potential customers for the company's Febreze line of products, they were executing which of the following?

A) market segmenting
B) mass marketing
C) differentiation
D) targeting
E) positioning

Question 52

Which of the following is the placement of a product or service offering in the minds of consumer targets?

A) positioning
B) placement
C) segmentation
D) targeting
E) product promotion

Question 53

Which type of positioning is based on characteristics of the brand that enhance the self-esteem of customers?

A) unique
B) symbolic
C) functional
D) experiential
E) optimized

Question 54

Communication of a USP can provide a good foundation for successful positioning. What does USP stand for?

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

Question 55

Shampoo marketers rate buyers as light, medium, or heavy product users. This is ________ segmentation.

A) needs
B) demographic
C) behavioral
D) psychographic
E) values

Question 56

Superior Auto Sales, a chain of high-end used car dealerships, wants to sum up its company positioning and value proposition in a formal statement to serve as a guide for marketing communication development. Superior's management would use a ________.

A) mission statement
B) vision statement
C) competitive statement
D) brand position statement
E) company statement

Question 57

Which type of positioning is based on characteristics of the brand that stimulate sensory or emotional connections with customers?

A) unique
B) symbolic
C) functional
D) experiential
E) optimized

Question 58

A magazine targeted to readers who love to in-line skate primarily uses ________ segmentation.

A) demographic
B) ethnographic
C) values
D) needs
E) psychographic

Question 59

The only time many people entertain is during November and December when their homes are decorated for the season's holidays. The increase in advertisements for prepared trays of food to be served at these functions is most directly related to ________ segmentation.

A) psychographic
B) values
C) geographic
D) demographic
E) behavioral

Question 60

A perceptual map is used to ________.

A) identify psychographic segments across broad geographic regions
B) translate a SWOT analysis into a visual medium
C) analyze the benefits and disadvantages of different targeting strategies
D) define the market based on consumer perceptions of competing products
E) identify at which stage of the marketing strategy process the marketer should be

Question 61

Unlike a product's USP, a product's value proposition is intended to be specifically relevant to the target.

Question 62

Saturn is "a different kind of company, different kind of a car"; the Hummer is "like nothing else." These statements indicate a firm's ________.

A) product portfolio
B) target market
C) positioning
D) strategy
E) niche

Question 63

Segmenting business markets requires a much greater level of complexity than segmenting consumer markets.

Question 64

A perceptual map is a tool for identifying the positions of brands in consumers' minds.

Question 65

Refer to the scenario below to answer the following questions.
Herb Marks was making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the writing utensils were a hit! Herb Marks had never thought of marketing his talent, but Mel's enthusiasm and the recent sales were enough to change his mind.
With limited resources, Herb contacted three additional specialty shops within 100 miles. He explained his manufacturing processes and engraving options to each. All three shops' owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic!
"I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provided products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils.
"I had to get a grip on the magnitude of this project!" Herb added. "I couldn't grow out of control. I was already working to capacity."
Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes."
Herb promises to provide his customers with "pens and pencils that are both professional and personal." This is Herb's ________.

A) USP
B) target market
C) vision statement
D) brand positioning statement
E) product proposition

Question 66

There are many exceptions to the assumption that consumers in nations close to one another will have many common behaviors and traits.

Question 67

Search engine optimization is a marketing tool that can be used to assist in the positioning of a product during a customer's online shopping process.

Question 68

Using an undifferentiated marketing strategy, a company will create a distinctive marketing plan for each segment.

Question 69

People within the same demographic group typically also share psychographic characteristics.

Question 70

Refer to the scenario below to answer the following questions.
Herb Marks was making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the writing utensils were a hit! Herb Marks had never thought of marketing his talent, but Mel's enthusiasm and the recent sales were enough to change his mind.
With limited resources, Herb contacted three additional specialty shops within 100 miles. He explained his manufacturing processes and engraving options to each. All three shops' owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic!
"I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provided products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils.
"I had to get a grip on the magnitude of this project!" Herb added. "I couldn't grow out of control. I was already working to capacity."
Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes."
In the scenario, how does Herb segment his market?

A) values
B) usage rate
C) income
D) geographically
E) demographically

Question 71

Consumers seldom make purchase decisions based solely on psychographics.

Question 72

In evaluating different market segments, a firm should look at three factors: segment size and growth potential, attractiveness, and brand objectives and resources.

Question 73

For simplicity's sake, most marketers generally limit their segmentation analysis to one or a few variables.

Question 74

Refer to the scenario below to answer the following questions.
Herb Marks was making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the writing utensils were a hit! Herb Marks had never thought of marketing his talent, but Mel's enthusiasm and the recent sales were enough to change his mind.
With limited resources, Herb contacted three additional specialty shops within 100 miles. He explained his manufacturing processes and engraving options to each. All three shops' owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic!
"I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provided products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils.
"I had to get a grip on the magnitude of this project!" Herb added. "I couldn't grow out of control. I was already working to capacity."
Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes."
In marketing his writing utensils to his four specialty-shop customers, Herb is using ________ marketing.

A) mass
B) undifferentiated
C) niche
D) multisegment
E) individual

Question 75

Today, most companies have moved back toward mass marketing and are being choosier about the customers with whom they wish to build relationships.

Question 76

Like consumer markets, business markets can be segmented by demographics and loyalty.

Question 77

Differentiated marketing is also known as multisegment marketing.

Question 78

A company operating in the business market may find it useful to segment possible customers based on their level of risk aversion.

Question 79

A company in the process of targeting customer groups to serve should address tactical challenges instead of strategic challenges.

Question 80

What is the following an example of? "To busy, mobile professionals who need to always be in the loop, BlackBerry is a wireless connectivity solution that gives you an easier, more reliable way to stay connected to data, people, and resources while on the go."

A) brand position statement
B) service differentiation
C) a perceptual map
D) brand optimization
E) niche marketing