Question 1

Fill in the blank: The foundation for segmentation is a factor that varies among the groups of a certain market, but is ___________within each group.&#10;A)Consistent&#10;B)Steady&#10;C)Dependable&#10;D)All of the above.&#10;

Accepted Answer

The foundation for segmentation is a factor that varies among the groups of a definite market, but is consistent within each group. Entity markets can be broken down in different ways, and although many of the bases used to segment a consumer market can also be applied to businesses and organizations, the absolute nature of these eventually leads to other specific segmentation bases.

Question 2

Segmentation can be seen as being derived from an underlying ___________&#10;A)Social rationale&#10;B)Economic rationale&#10;C)Physiological rationale&#10;D)Psychological rationale&#10;

Accepted Answer

Segmentation can be seen as being derived from an underlying economic rationale, which is based around price elasticities from a micro perspective or, from a macro perspective, using the concept of industry groups to discuss how increasing levels of sophistication can be achieved in the segmentation of industrial markets as more variables are introduced.

Question 3

Segmentation may be difficult for the practicing manager to achieve because it is _________ and therefore has generalized and prescriptive guidelines which may be inappropriate in specific circumstances and conditions.

A)Speech dependent
B)Context dependent
C)Advertisement dependent
D)All of the above.

Context dependent

Accepted Answer

In practice, segmentation is a challenging and difficult task for the practicing manager to undertake because it is context-dependent and therefore has generalized and prescriptive guidelines which may be inappropriate in specific circumstances and conditions. Simply adding more criteria to reflect the complexity observed does not simplify the task for the manager.

Question 4

Segmentation, although superficially seen as a__________, is a critically important issue for business-to-business organizations.&#10;A)Consumer technique&#10;B)Market technique&#10;C)Demand technique&#10;D)Supplier technique&#10;

Accepted Answer

Segmentation, although superficially seen as a consumer technique, is a critically important issue for business-to-business organizations. There are numerous conceptions of segmentation and many suggestions as to the criteria and approaches that can be used to segment markets. However, its actual implementation has many critical challenges.

Question 5

For the implementation process, one must know that there is interaction between the __________________and the feasibility of what can be achieved.&#10;A)Customer base&#10;B)Marketplace&#10;C)Product range&#10;D)All of the above.&#10;

Accepted Answer

A practicing manager must know that segmentation is context dependent. There is interaction between the customer base, the marketplace, the product range, and the feasibility of what can be achieved. It is a difficult and demanding process and managers often have little direct knowledge and expertise in segmentation.

Question 6

In market segmentation there are rigorous analytic techniques used to organize consumers into groups with related _____________.&#10;A)Needs&#10;B)Wants&#10;C)Attitudes&#10;D)All of the above.&#10;

Accepted Answer

There are rigorous analytic techniques used to organize consumers into groups with related wants, needs, and attitudes. With these, the potential and size market of each segment can be determined, along with the positioning and the appeal that will be used to cover it. For example, a S-Means Cluster Analysis attempts to identify relatively similar groups of interviewees based on selected characteristics using an algorithm capable of handling large amounts of people. Basically, this method tries to separate n observations into S clusters, and each statement belongs to the cluster with the closest mean.

Question 7

Market segmentation can also help a business learn how to reinforce existing _____________.&#10;A)Consumer force&#10;B)Demand market&#10;C)Customer loyalty&#10;D)All of the above.&#10;

Accepted Answer

Along with playing a major role in developing new marketing efforts to attract new customers, market segmentation can also help a business learn how to reinforce existing customer loyalty. For example, a firm may request some kind of feedback through questions specifically addressed to a certain group with the purpose of obtaining practical suggestions on how to make a product better. The customer will then identify that the company is truly aware and the bonds between them will grow stronger.

Question 8

One of the benefits of segmentation is that it can lead to _______ marketing&#10;A)Product&#10;B)Target&#10;C)Niche&#10;D)Demand&#10;

Accepted Answer

A benefit of segmentation is that it can lead to niche marketing, where the company can meet the needs of customers in that niche segment, This can result in segment domination, something which is often not possible in target markets

Question 9

The segmentation process and its implementation has which of the following stages?&#10;A)Segmentation&#10;B)Targeting&#10;C)Positioning&#10;D)All of the above.&#10;

Accepted Answer

The segmentation process and its implementation is done through three stages: targeting, segmentation, and positioning. Segmentation considers different variables for segmenting the market from those presently used. Targeting decides on a targeting strategy, its priorities, and who should be targeted. Positioning understands the perceptions of consumer and positions the product in the mind of consumer and retailer within the targeted segment.

Question 10

Through segmentation, ____________is achieved, which allows companies to increase their percentage of sales in existing markets by taking sales from competitors.&#10;A)Product positioning&#10;B)Product segmentation&#10;C)Targeting&#10;D)Market penetration&#10;

Accepted Answer

Through segmentation, market penetration is achieved, which allows companies to increase their percentage of sales in existing markets by taking sales from competitors. This can be achieved by an aggressive and well-targeted promotional campaign. For example, a soft drinks manufacturer may seek to extend sales of diet drinks through combined advertising and sales promotional drive.

Question 11

__________centers on the decisions and activities used to create and maintain a firms product concept in the customers mind&#10;A)Product positioning&#10;B)Product segmentation&#10;C)Targeting&#10;D)Market positioning&#10;

Accepted Answer

The answer of __________centers on the decisions and activities used...

Deck 11: Market Segments