Question 1

All of these are criteria used for forming market segments except which?
A) difference of needs of buyers among segments
B) potential for increased profit
C) cost of reaching the segment
D) potential of a marketing action to reach a segment
E) simplicity and cost-effectiveness of assigning potential buyers to segments

Accepted Answer

The answer of All of these are criteria used for...

Question 2

Criteria for forming segments involve both similarities and differences. Which of the following statements is most accurate?
A) Within a segment, the needs of potential buyers should be different; among segments, the needs of buyers should be similar.
B) Within a segment, the needs of potential buyers should be similar; among segments, the needs of buyers should be different.
C) The needs of buyers should be different, both between segments and within segments.
D) The needs of buyers should be the same, both between segments and within segments.
E) If there are any differences at all, you should forgo any segmentation.

Accepted Answer

Within a segment, the needs of potential buyers should be similar; among segments, the needs of buyers should be different.

Question 3

The first step in segmenting and targeting markets that links customer needs to marketing actions is to
A) group potential buyers into segments.
B) develop a market-product grid and estimate size of the overall market.
C) select target markets.
D) group products to be sold into categories.
E) take marketing actions to reach target markets.

Accepted Answer

The first step in segmenting and targeting markets is to group potential buyers into segments based on shared characteristics or needs. This helps in identifying distinct groups that can be targeted with specific marketing strategies.

Question 4

Which of the following is not a reason to segment a market?
A) The ability to assign buyers to a segment is simple and cost-effective.
B) It would cause an increase in market share or profit.
C) All the buyers in the entire market have similar wants and needs.
D) There is a potential marketing action to reach it.
E) There are different wants and needs of buyers in the entire market.

Accepted Answer

If all buyers have similar wants and needs, there is no need to segment the market, as segmentation is used to address diverse needs.

Question 5

About 3 percent of the population has some degree of allergic reaction, usually mild, to preservatives used in salad bars. Restaurants might consider people with these allergies as a separate segment. To implement this segmentation strategy, restaurants would have to prepare a regular salad bar and a special salad bar for the allergies segment. This multiple product, multiple markets segment strategy would have the greatest difficulty meeting which of the following criteria used to form market segments?
A) different needs of buyers among different segments
B) similarity of needs of potential buyers within a segment
C) simplicity and cost-effectiveness of assigning potential buyers to segments
D) potential for increased profit and ROI
E) potential of a marketing action to reach a segment

Accepted Answer

The answer of About 3 percent of the population has...

Question 6

Four general categories are used to segment consumer markets, one of which is
A) supplier segmentation.
B) demand segmentation.
C) regional segmentation.
D) demographic segmentation.
E) product segmentation.

Accepted Answer

Demographic segmentation is one of the four general categories used to segment consumer markets. It involves dividing the market into groups based on demographic characteristics such as age, gender, income, education, and occupation.

Question 7

The best segmentation approach for business firms is the one that
A) makes it easiest to reach the segment.
B) maximizes the opportunity for future profit and ROI.
C) that differs from the most common approach within the industry.
D) creates awareness among potential buyers within a segment.
E) is simplest and least costly in assigning potential buyers to segments.

Accepted Answer

The best segmentation approach for business firms is the one that maximizes the opportunity for future profit and ROI, as this aligns with the primary goal of most businesses, which is to achieve financial success and sustainability.

Question 8

Criteria for forming segments involve both similarities and differences. In terms of the needs of buyers, the similarities must be ________ a segment, and the differences must be ________ segments.
A) between; among
B) throughout; absent in
C) within; among
D) absent in; throughout
E) among; across

Accepted Answer

The similarities must be within a segment to ensure that the buyers in that segment have common needs. The differences must be among segments to distinguish one segment from another based on varying needs.

Question 9

Which of the following is not a criterion that would support forming market segments?
A) The ability to assign buyers to a segment is cost-effective and simple.
B) The result of segmenting will cause an increase in market share or profit.
C) There are significant similarities among buyers in the market segment.
D) There is a potential marketing action to reach the segment.
E) The cost to reach the segment exceeds the expected returns.

Accepted Answer

If the cost to reach the segment exceeds the expected returns, it is not a viable market segment as it would not be profitable.

Question 10

Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer which of these?
A) Is this product useful on a global scale?
B) Is it possible to reposition this product?
C) Is there too much competition for this product?
D) Is the market loyal to the product?
E) Would segmentation be worth doing and is it possible?

Accepted Answer

Segmentation should be worth doing and feasible, meaning it should provide actionable insights and be possible to implement effectively.

Question 11

The final step in segmenting and targeting markets that links customer needs to marketing actions is to
A) take marketing actions to reach target markets.
B) group potential buyers into segments.
C) select target markets.
D) group products to be sold into categories.
E) develop a market-product grid and estimate size of the overall market.

Accepted Answer

The final step in segmenting and targeting markets is to take marketing actions to reach target markets, as it involves implementing strategies to engage the identified segments.

Question 12

The purpose of the five key steps in segmenting and targeting markets is to
A) identify competitors that provide similar products that satisfy a firm's customers' needs.
B) provide guidance to reposition a firm's products.
C) generate new-product ideas for firms that are not growing in market share.
D) link market needs of customers to the organization's marketing program.
E) correlate directly to each of the five environmental forces.

Accepted Answer

The five key steps in segmenting and targeting markets are designed to align the needs and preferences of customers with the marketing strategies and programs of an organization, ensuring that the products and services offered meet the specific demands of different market segments.

Question 13

Region and city size are both variables used to employ ________ segmentation.
A) geographic
B) behavioral
C) district
D) psychographic
E) demographic

Accepted Answer

Geographic segmentation involves dividing a market based on different geographical units such as regions, city size, climate, and population density.

Question 14

Selling a product to a different market segment usually requires a different marketing action that, in turn, means greater costs. If increased revenues don't offset extra costs of this action, a marketer should
A) increase the advertising budget.
B) prune the product offerings.
C) family brand the products.
D) combine segments.
E) group products into categories.

Accepted Answer

Combining segments can help reduce costs by targeting a broader audience with a single marketing strategy, potentially increasing efficiency and effectiveness without incurring the additional costs of separate marketing actions for each segment.

Question 15

You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50. Or you can buy a Hallmark card from its new $0.99 line of greeting cards, made with lesser-quality materials but just as sentimental, sold at Barnes & Noble bookstores. This is an example of
A) mass customization.
B) organizational synergy.
C) one product and multiple market segments.
D) price discrimination.
E) a Tiffany/Walmart strategy.

Accepted Answer

This is an example of a Tiffany/Walmart strategy, where a company offers products at different price points to target different market segments.

Question 16

Which of the following is a criterion used in forming market segments?
A) similarity of segments to competitors' segments
B) differences between potential suppliers or distributors
C) differences of needs of buyers within a segment
D) market size of the segment
E) simplicity and cost-effectiveness of assigning potential buyers to segments

Accepted Answer

The answer of Which of the following is a criterion...

Question 17

The Walt Disney Co. carefully markets two distinct Winnie-the-Poohs; one is the original line-drawn figure on fine china sold at Nordstrom and the other is a cartoon-like Pooh on polyester bed sheets sold at Target. This is an example of
A) mass customization.
B) a Tiffany/Walmart strategy.
C) one product and multiple market segments.
D) price discrimination.
E) psychographic market segmentation.

Accepted Answer

The Tiffany/Walmart strategy involves offering different versions of a product to appeal to different market segments, similar to how Disney markets two distinct versions of Winnie-the-Pooh to different retail environments.

Question 18

Segmentation based on where prospective customers live or work is referred to as
A) zip code segmentation.
B) geographic segmentation.
C) trade area segmentation.
D) district segmentation.
E) NAICS code segmentation.

Accepted Answer

Geographic segmentation is a marketing strategy that divides a market into different geographic areas, such as countries, states, regions, or cities. This type of segmentation is based on the idea that consumers who live in the same geographic area are likely to have similar needs and wants.

Question 19

A marketing manager goes through several steps to put a market segmentation plan into effect. This includes forming market segments and then ________ without encountering excessive costs.
A) eliminating potential nonbuyers
B) identifying segmentation variables
C) selecting the market segments to target
D) redirecting their purchase behaviors
E) ignoring any and all similarities

Accepted Answer

After forming market segments, the next step is to select the market segments to target, ensuring that the chosen segments are viable and can be effectively reached without incurring excessive costs.

Question 20

There are five steps involved in segmenting and targeting markets. What should a marketer do after he or she has grouped products to be sold into categories?
A) Create product groupings.
B) Identify market needs.
C) Take marketing actions to reach target markets.
D) Develop a market-product grid and estimate size of markets.
E) Form prospective buyers into market segments.

Accepted Answer

After grouping products into categories, the next step is to develop a market-product grid and estimate the size of markets to understand the potential market segments and their viability.

Quiz 9: Market Segmentation, Targeting, and Positioning

All of these are criteria used for forming market segments except which?

Criteria for forming segments involve both similarities and differences. Which of the following statements is most accurate?

The first step in segmenting and targeting markets that links customer needs to marketing actions is to

Which of the following is not a reason to segment a market?

Four general categories are used to segment consumer markets, one of which is

The best segmentation approach for business firms is the one that

Criteria for forming segments involve both similarities and differences. In terms of the needs of buyers, the similarities must be a segment, and the differences must be segments.

Which of the following is not a criterion that would support forming market segments?

Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer which of these?

The final step in segmenting and targeting markets that links customer needs to marketing actions is to

The purpose of the five key steps in segmenting and targeting markets is to

Region and city size are both variables used to employ ________ segmentation.

Selling a product to a different market segment usually requires a different marketing action that, in turn, means greater costs. If increased revenues don't offset extra costs of this action, a marketer should

You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50. Or you can buy a Hallmark card from its new $0.99 line of greeting cards, made with lesser-quality materials but just as sentimental, sold at Barnes & Noble bookstores. This is an example of

Which of the following is a criterion used in forming market segments?

The Walt Disney Co. carefully markets two distinct Winnie-the-Poohs; one is the original line-drawn figure on fine china sold at Nordstrom and the other is a cartoon-like Pooh on polyester bed sheets sold at Target. This is an example of

Segmentation based on where prospective customers live or work is referred to as

A marketing manager goes through several steps to put a market segmentation plan into effect. This includes forming market segments and then ________ without encountering excessive costs.

There are five steps involved in segmenting and targeting markets. What should a marketer do after he or she has grouped products to be sold into categories?