Question 1

Which of the following best describes the broad concept of a market?

Accepted Answer

explain the broad concept of a 'market'. A market is a group of buyers who have the opportunity, willingness and ability to purchase a product or products. A group of customers with heterogeneous needs and wants.

Question 2

A group of customers with heterogeneous needs and wants is known as a:

Accepted Answer

explain the broad concept of a 'market'. A market is a group of customers with heterogeneous needs and wants.

Question 3

A defining characteristic/s of a consumer market is/are:

Accepted Answer

explain the broad concept of a 'market'. Consumer markets consist of households and individuals that buy products for private consumption. We are all members of consumer markets for an almost unlimited range of products that we use in our daily lives.

Question 4

When the marketer seeks to _________and ___________those parts of the total market that it can offer the most__________, the approach is known as the ___________ marketing concept.

Accepted Answer

explain the broad concept of a 'market'. When the marketer seeks to identify and understand those parts of the total market that can offer the most value, the approach is known as the target marketing concept.

Question 5

Which of the following processes is most likely to assist with identifying target markets?

Accepted Answer

explain the broad concept of a 'market'. Market research helps the organisation identify target markets. Market research plays a crucial role in the process of understanding the link between segmentation variables and consumers' purchasing behaviour. The key task of the organisation, then, is to develop marketing programs to reach those market segments that have been identified.

Question 6

Understanding the ___________is a fundamental prerequisite for effective marketing. Understanding target market segments is crucial to ___________, communicating and delivering product offerings of ________.

Accepted Answer

explain the broad concept of a 'market'. Understanding the market is a fundamental prerequisite for effective marketing. Understanding target market segments is crucial to creating, communicating and delivering product offerings of value.

Question 7

Emma decides that after establishing a successful business using a mass marketing approach, she wants to expand by differentiating her product range. Emma decides she will use a target marketing approach, which can best be described as:

Accepted Answer

explain the broad concept of a 'market'. The target marketing concept involves identifying smaller, more targetable market segments, then tailoring the marketing mix to best appeal to those segments.

Question 8

You open a liquor store, selling only boutique wines (produced in smaller quantities and as such not sold through major retailers) from the Hunter Valley in NSW. Your specialised approach to the target market is:

Accepted Answer

understand the target marketing concept. Product-market specialisation is a target marketing strategy in which efforts are concentrated on offering a single product to a single market segment.

Question 9

Hairdressers offering each customer a unique or customised haircut could be best described as:

Accepted Answer

understand the target marketing concept. The one-to-one marketer seeks to appeal to each customer by providing a unique, customised offering that will meet their individual needs.

Question 10

When a marketer makes one product and offers it to the market as a whole, this form of marketing is known as:

Accepted Answer

understand the target marketing concept. The marketer can make an undifferentiated offer to the market as a whole (mass marketing). The marketer can make a differentiated offer to each individual buyer (one-to-one or customised marketing).

Question 11

Which of the following statements is correct?

Accepted Answer

understand the target marketing concept. The choice of marketing strategy typically involves a degree of compromise between the necessity to respond to the particular desires of potential customers and the objective of achieving the lowest possible production costs. So long as all consumers have homogeneous needs, the model of mass marketing is extremely successful and profitable. Target marketing is based on the premises that (1) individual buyers or groups of buyers can be identified, (2) sellers understand the needs of buyers, and (3) sellers will seek to shape their offer to meet the needs of target buyers. The marketer may decide to make a differentiated offer to each individual buyer - one-to-one or customised marketing - in cases in which customers have unique wants, needs and demands.

Question 12

Which of these of these underlies the concept of target marketing?

Accepted Answer

understand the target marketing concept. Target marketing is based on three premises: 1. individual buyers or groups of buyers can be identified, 2. sellers understand the needs of buyers, and 3. sellers will seek to shape their offer to meet the needs of target buyers.

Question 13

Which of the following would be an advantage of a one-to-one marketing strategy?

Accepted Answer

understand the target marketing concept. With a one-to-one marketing strategy, the seller seeks to build a very close relationship with the customer. They do this in the expectation that the customer, in turn, will reward them with loyalty and repeat purchasing, as well as positive word-of-mouth to friends and colleagues.

Question 14

A target marketing strategy in which all marketing efforts are focused on meeting a wide range of needs within a particular market segment is called:

Accepted Answer

understand the target marketing concept. Market specialisation is a specialised approach to target marketing in which all efforts are concentrated on meeting a wide range of needs within a single market segment.

Question 15

Which of the following statements is/are correct?

Accepted Answer

understand the target marketing concept. A market segment is a subgroup within the total market that is relatively heterogeneous, but also homogeneous in regards to certain characteristics. The one-to-one marketer seeks to appeal to each customer by providing a unique, customised offering that will meet their individual needs. As such, an architect designing a couple's dream home is an example of customised marketing.

Question 16

Organisations that pursue a specialisation strategy seek to establish a dominant position in their chosen ___________ market.

Accepted Answer

understand the target marketing concept. Organisations that pursue a specialisation strategy seek to establish a dominant position in their chosen niche market.

Question 17

Woolworths understands that their market is made up of buyers with diverse needs; their customers have unique wants, needs and demands. The market that Woolworths sells to is said to be:

Accepted Answer

understand the target marketing concept. Heterogeneous markets comprise buyers with unique wants, needs and demands.

Question 18

Emma has decided to switch from a mass marketing approach, to a target marketing approach. She understands that target marketing is a process and ____________________ forms the basis of the process.

Accepted Answer

understand the target marketing concept. Market segmentation enables the organisation to form a strategy for a group or segment that has common features, rather than try to market to everyone. The organisation makes use of its knowledge of these market segments to develop the most effective marketing mix for each. This approach forms the basis of target marketing.

Question 19

Toyota uses a target marketing approach to selling cars. Toyota offers a range of cars to the market. Considering this, which of the following statements is incorrect?

Accepted Answer

understand the target marketing concept. An organisation cannot market to all potential customers, unless it is a market leader with virtually limitless market coverage and marketing resources. Of course this is rare, and so market segmentation and target marketing typically involve organisations making difficult choices about which target markets to select (and which market segments to ignore).

Question 20

Elders provides a comprehensive range of goods and services to farmers. This specialised approach to target marketing is an example of:

Accepted Answer

understand the target marketing concept. Market specialisation is a specialised approach in which all efforts are concentrated on meeting a wide range of needs within a single market segment.

Quiz 6: Markets: Segmentation, Targeting and Positioning