Question 1

Most markets for products are made up of individuals or groups with diverse needs for products and are called ____ markets.
A) undifferentiated
B) concentrated
C) homogenous
D) differentiated
E) heterogeneous

Accepted Answer

Heterogeneous markets are made up of individuals or groups with diverse needs for products. Undifferentiated markets have similar needs and preferences, concentrated markets are focused on one specific segment, homogenous markets have such similar needs that one product will satisfy all customers, and differentiated markets have a few segments with different needs.

Question 2

Explore the link between market segmentation and customer relationship management (CRM)?

Accepted Answer

Segmentation is part of a wider process of understanding the wants and needs of customers. Analyzing customers to identify a market segment is useful but it is more useful to look at ways to maintain a relationship with those customers and continually adjust and modify the market segmentation variables according to their needs and wants. CRM is a term used to describe this process of managing relationships, allowing companies to continually improve their profiles of purchasing behaviours and regularly communicating with selected customers.

Question 3

When marketing research shows that a group of people does not desire a particular product, the people in that group:
A) are a market.
B) do not have the ability to purchase the product.
C) do not have the authority to purchase the product.
D) are not a market for the product.
E) are a market but will not purchase the product.

Accepted Answer

If marketing research shows that a group of people does not desire a particular product, it means they do not have the need or want for it. Therefore, they are not a market for the product.

Question 4

Which of the following is not a characteristic of a consumer market?
A) it consists of purchasers who intend to consume or benefit from the purchased products
B) they do not buy products for the main purpose of making a profit
C) they are sometimes referred to as B2C markets
D) their purchasing decisions are always made by only one individual
E) each of us belongs to numerous markets of this type

Accepted Answer

The statement "their purchasing decisions are always made by only one individual" is not true for all consumer markets. In some cases, purchasing decisions may be made by a family unit or a group of individuals. Therefore, D is the correct answer as it does not fit the description of a consumer market.

Question 5

Why is it important for marketers to assess competitors before entering a market?

Accepted Answer

The answer of Why is it important for marketers to...

Question 6

What are the conditions under which an undifferentiated targeting strategy is effective? Why are these conditions essential?

Accepted Answer

The answer of What are the conditions under which an...

Question 7

Compare and contrast the concentrated and differentiated targeting strategies of market segmentation.

Accepted Answer

The answer of Compare and contrast the concentrated and differentiated...

Question 8

Using Figure 6.1, identify at least three market segments for a company that you're familiar with.

Accepted Answer

The answer of Using Figure 6.1, identify at least three...

Question 9

Critically look at why marketers rely heavily on demographic characteristics when segmenting consumer markets.

Accepted Answer

The answer of Critically look at why marketers rely heavily...

Question 10

How do business market segments differ from consumer markets?

Accepted Answer

The answer of How do business market segments differ from...

Question 11

Which of these statements is not true about business markets?
A) the purchase may be made to resell the item
B) the purchase is always made by more than one individual
C) the purchase may be made to use in general daily operations
D) the purchase may be made to use in production of another product
E) they can also be referred to as organizational markets

Accepted Answer

Business purchases can be made by one individual or a group within the organization.

Question 12

A market in which a large proportion of customers have similar needs for a product is called a(n) ____ market.
A) undifferentiated
B) heterogeneous
C) homogenous
D) differentiated
E) concentrated

Accepted Answer

A homogenous market is one in which a large proportion of customers have similar needs for a product. This means that they are likely to respond similarly to marketing strategies and product offerings, making it easier for companies to develop targeted marketing and product development strategies.

Question 13

Any group of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to buy such products is a(n):
A) business market.
B) market.
C) undifferentiated market
D) segmented market
E) market variable

Accepted Answer

A market is defined as any group of people or organizations that have needs for product classes and possess the ability, willingness, and authority to purchase such products. This encompasses a broad range of potential buyers, not limited to specific types of markets like business or segmented markets, making option B the correct answer.

Question 14

When the needs of individual consumers in a target market for a specific product are similar and the organization can satisfy most customers with a single marketing mix, the best approach to use may be the ____ strategy.
A) undifferentiated
B) differentiated
C) segmented
D) concentrated
E) heterogeneous

Accepted Answer

The undifferentiated strategy is best when the needs of individual consumers in a target market for a specific product are similar and the organization can satisfy most customers with a single marketing mix. This strategy involves offering the same marketing mix to all consumers in a particular market regardless of their individual differences. This approach is often used for products that have universal appeal, such as basic food items, household products, or low-cost items that are frequently purchased.

Question 15

Using an example compare and contrast the undifferentiated and differentiated approach to the market segmentation.

Accepted Answer

The answer of Using an example compare and contrast the...

Question 16

Several conditions must exist for market segmentation to be successful. These conditions include all of the following except:
A) the total market should be divided so that segments can be compared on sales potential, costs, and profits.
B) customers' needs for the product must be homogeneous.
C) the company must be able to reach the chosen segment with a particular marketing mix.
D) segments must be identifiable and divisible.
E) at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment.

Accepted Answer

Customers' needs for the product do not have to be homogeneous for market segmentation to be successful. In fact, market segmentation is often used to target varied needs of different customer segments. The other conditions listed are all necessary for successful market segmentation.

Question 17

The process of dividing a total market into market groups because people within each group have relatively similar product needs is called:
A) segmentation.
B) diversification.
C) target marketing.
D) concentration.
E) customization.

Accepted Answer

Segmentation is the process of dividing a total market into market groups because people within each group have relatively similar product needs. Therefore, option A is the correct answer. Diversification refers to offering a variety of products or services to different markets. Target marketing is the process of selecting and focusing on specific segments identified through the segmentation process. Concentration refers to focusing on a single market segment. Customization is the process of tailoring products or services to meet the specific needs of individual customers.

Question 18

The ability to purchase a product is a function of ______
A) buying power.
B) desire.
C) willingness.
D) authority.
E) needs.

Accepted Answer

The ability to purchase a product is dependent on the buyer's buying power, which refers to the financial resources available to them. While desire, willingness, authority, and needs may all influence the decision to buy a product, they do not necessarily guarantee the ability to make a purchase.

Question 19

To find a target market, a firm can use the:
A) total market strategy and the undifferentiated strategy.
B) product differentiation strategy and the customer differentiation strategy.
C) demographic strategy and the psychographic strategy.
D) socioeconomic strategy and the psychological strategy.
E) undifferentiated strategy, the concentrated strategy, and the differentiated strategy.

Accepted Answer

The answer of To find a target market, a firm...

Question 20

In order to be considered a market, people do not have to have:
A) a need or desire for a particular product.
B) the ability to purchase the product.
C) discretionary income to purchase the product.
D) the willingness to use their buying power.
E) the authority to buy the specific products.

Accepted Answer

The answer of In order to be considered a market,...

Quiz 6: Segmenting, Targeting and Positioning

Most markets for products are made up of individuals or groups with diverse needs for products and are called ____ markets.

Explore the link between market segmentation and customer relationship management (CRM)?

When marketing research shows that a group of people does not desire a particular product, the people in that group:

Which of the following is not a characteristic of a consumer market?

Why is it important for marketers to assess competitors before entering a market?

What are the conditions under which an undifferentiated targeting strategy is effective? Why are these conditions essential?

Compare and contrast the concentrated and differentiated targeting strategies of market segmentation.

Using Figure 6.1, identify at least three market segments for a company that you're familiar with.

Critically look at why marketers rely heavily on demographic characteristics when segmenting consumer markets.

How do business market segments differ from consumer markets?

Which of these statements is not true about business markets?

A market in which a large proportion of customers have similar needs for a product is called a(n) ____ market.

Any group of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to buy such products is a(n) :

When the needs of individual consumers in a target market for a specific product are similar and the organization can satisfy most customers with a single marketing mix, the best approach to use may be the ____ strategy.

Using an example compare and contrast the undifferentiated and differentiated approach to the market segmentation.

Several conditions must exist for market segmentation to be successful. These conditions include all of the following except:

The process of dividing a total market into market groups because people within each group have relatively similar product needs is called:

The ability to purchase a product is a function of ______

To find a target market, a firm can use the:

In order to be considered a market, people do not have to have: