Deck 5: Market Segmentation, Targeting and Positioning

Question 1

Targeting children in advertising and communication is the subject of some criticism as it may encourage them to use _______ power to encourage their parents to buy products and services.

A)materialism
B)pressure
C)influence
D)pester

Answer 1

D

Question 2

A segment must be accessible. This means that the company must be able to formulate marketing programmes for the _______ that it identifies.

A)services
B)companies
C)brands
D)segments

Answer 2

D

Question 3

Those _______ of targeting children via marketing argue that children should be exposed to marketing communication as part of their education because we live in a consumer society and children need to understand marketing.

A)in favour
B)against
C)critics
D)controlling

Answer 3

A

Question 4

A good segment must be _______. This means that it must be possible to identify customers in the proposed segment and to understand their characteristics and behavioural patterns.

A)effective
B)measurable
C)clear
D)consistent

Question 5

Five criteria are considered important when determining whether a company has properly segmented its market i.e. are the segments actionable, accessible, profitable, measurable and _______.

A)efficient
B)considered
C)co-operative
D)effective

Question 6

Critics argue that marketers' targeting of children can lead to the perpetuation of _______ regarding appropriate behaviour, careers etc. for boys and girls.

A)stereotypes
B)behaviour
C)consequences
D)communication

Question 7

Which of the following characteristics do marketers use in evaluating the effectiveness of different segments?

A)Accessible; Interactivity; Sustainability; Measurability
B)Measurability; Accessibility; Actionability; Profitability
C)Interactivity; Effectiveness; Measurability; Predictability
D)Measurability; Addressability; Profitability; Monitorability

Question 8

Which of the following is a concern regarding marketing's targeting of children?

A)Creates materialism
B)Promotes pester power
C)Perpetuates stereotypes
D)All are concerns

Question 9

"The identification of individuals or organizations with _______characteristics that have significant implications for the determination of marketing strategy is called market segmentation". Which of the following words is missing from the above sentence?

A)similar
B)different
C)variable
D)physical

Question 10

To determine whether a company has properly segmented its markets, five criteria are usually considered - are the segments effective, measurable, accessible, actionable and _______.

A)addressable
B)manageable
C)personal
D)profitable

Question 11

Which of the following is a benefit of segmentation?

A)Enhanced profitability
B)Improved customer defection
C)More effective competitors
D)More effective targeting of conditions

Question 12

Marketing efforts to target children has been the subject of criticism as they employ the skills of child _______ to devise ways to reach inside their developing minds and implant brand preferences.

A)anthropologists
B)psychologists
C)communicators
D)physiologists

Question 13

Segments must be large enough to be _______ to serve. There must be a gap in the market that will allow the company to earn a return.

A)accessible
B)clear
C)profitable
D)consistent

Question 14

Effective segmentation requires that segments should consist of customers whose needs are relatively _______ within a segment, but significantly different from those in other segments.

A)homogeneous
B)heterogeneous
C)different
D)old

Question 15

Segmentation is effective when buyer needs in different segments are similar.

Question 16

Which of the following are the three broad groups of consumer segmentation criteria?

A)Behavioural, psychographic and profile variables
B)Behavioural, demographic and profile variables
C)Psychographic, demographic and behavioural variables
D)Psychographic, sociological and geographic variables

Question 17

Even though a company may identify a segment as a very attractive one, the company may decide that the segment is not _______ as they don't have the resources to exploit this opportunity.

A)actionable
B)accessible
C)effective
D)measurable

Question 18

Not all small segments in the marketplace are unprofitable to serve. Advances in production and distribution technologies mean that micro-segments can also be profitable.

Question 19

What is the purpose of segmentation?

A)To identify differences in behaviour that has implications for marketing decisions
B)To identify the most profitable consumer segments
C)To target segments that are not targeted by competitors
D)To target segments which match our product/ service attributes

Question 20

To implement the marketing concept and successfully satisfy customer needs, companies need to provide which of the following?

A)Products and services that are cheaper than their competitors' offering
B)Products and services which are unique and that are technologically superior to competitors' offerings
C)Different product and service offerings to the diverse customer groups that typically comprise a market
D)None of the above

Question 21

What is the major strength of geodemographics?

A)Groups customers into segments
B)Links buyer behaviour to customer groups
C)Pinpoints potential interested customers
D)Breaks down a country into smaller segments

Question 22

Social class is used for which of the following?

A)Wealth determination
B)Media readership and viewership profiles
C)Advertising effectiveness
D)New product testing

Question 23

Which of the following is an example of a method used to gather "biographic" data?

A)Advertising
B)Supermarket loyalty cards
C)Government census
D)Internet advertising

Question 24

The combination of demographic and geographic variables is called which of the following?

A)Geodemographics
B)Psychosomatics
C)Behavioural variables
D)Geomarketing

Question 25

In the UK, social class is usually measured according to which of the following?

A)Occupation
B)Wealth
C)Background
D)Education

Question 26

Which type of company is likely to claim to be able to deploy customized marketing?

A)Industrial manufacturer
B)Online retailer
C)Offline wholesaler
D)All of the above

Question 27

Why is segmentation important for organizational markets?

A)So that a more effective marketing mix can be designed for these segments
B)So that companies adopt an effective pricing strategy
C)So that companies can target the more profitable segments of the marketplace
D)So that a more effective new product development process can be employed for a company's targeted segments

Question 28

A company who develops a single marketing mix for the whole market and doesn't segment the market uses which of the following marketing strategies?

A)Differentiated marketing
B)Undifferentiated marketing
C)Customized marketing
D)Focused marketing

Question 29

How may a large organization differ from a medium and small organization?

A)May have greater order potential
B)May have more formalized buying and management processes
C)May have increased specialization of function
D)All of the above are reasons why an organization may differ

Question 30

Which of the following is a useful base for segmenting organizational markets?

A)Behavioural factors
B)Organizational psychographics
C)Organizational size
D)Organizational marketing

Question 31

When a company evaluates each segment and decides on which one to serve, this is called which of the following?

A)Segment marketing
B)Segmentation marketing
C)Target marketing
D)Choice marketing

Question 32

Variables that are used when researchers believe that purchasing behaviour is correlated with the personality or lifestyle of consumers are called which of the following?

A)Sociological
B)Demographic
C)Psychographic
D)Behavioural

Question 33

Which of the following is an example of a behavioural segmentation variable?

A)Lifestyle
B)Personality
C)Purchase occasion
D)Demographics

Question 34

Which form of segmentation attempts to group people according to their way of living, as reflected in their activities, interests and opinions?

A)Personality
B)Lifestyle
C)Attitudinal
D)Peer

Question 35

Usage, a consumer segmentation variable, segments consumers according to which of the following?

A)Who the purchase is bought for (e.g. self-buy or gift)
B)A person's buying patterns (e.g. impulse purchase or consciously planned purchase)
C)The degree of brand loyalty towards a particular brand in a product category
D)Heavy users, light users and non-users of a product category

Question 36

Which of the following is an example of key choice criteria that could be used by organizational buyers when evaluating supplier offerings?

A)Service
B)Product performance
C)Price
D)All of the above are examples of choice criteria

Question 37

Which of the following is not a useful base for segmenting organizational markets?

A)By industry
B)By geographic location
C)By individuals within a DMU
D)By purchasing organization

Question 38

ACORN, a segmentation analysis technique, stands for which of the following?

A)A Corresponding Official Residential Notation
B)A Classification of Reported Nationals
C)A Classification of Residential Neighbourhoods
D)A Countrywide Official Resources Navigation

Question 39

Benefit segmentation provides an understanding of which of the following?

A)The benefits of certain marketing strategies
B)When people buy in a market
C)The level of people's usage of certain products and services
D)Why people buy in a market

Question 40

Beanz Meanz Heinz is a classic advertising slogan which helps increase clarity of the brand _______.

A)positioning
B)segmentation
C)targeting
D)customization

Question 41

Which of the following is a useful tool for determining the position of a brand in the marketplace?

A)Perceptual map
B)Mind map
C)Promotional map
D)Segmentation map

Question 42

A single target segment is sometimes called which of the following?

A)A focus
B)A niche
C)A division
D)An area

Question 43

If a male shopper, when wanting to buy a new suit, was able to choose the type of material and the colour for the new suit, which marketing strategy would the company be pursuing?

A)Undifferentiated
B)Focused
C)Differentiated
D)Customized

Question 44

Which of the following types of businesses are likely to adopt a customized marketing strategy?

A)A pharmaceutical company
B)A fast moving consumer goods company
C)An advertising agency
D)A consumer electronics company

Question 45

Which of the following is a determinant of successful positioning:

A)Conviction
B)Control
C)Clarity
D)Classification

Question 46

When market segmentation reveals several potential targets, and specific marketing mixes are be developed to appeal to all or some of the segments, this is called which of the following?

A)Differentiated marketing
B)Undifferentiated marketing
C)Customized marketing
D)Focused marketing

Question 47

Which of the following is a potential disadvantage of differentiated marketing compared to undifferentiated marketing?

A)Loss of cost economies
B)Too few segments to concentrate on
C)Less targeted marketing strategies are employed
D)All of the above are potential disadvantages

Question 48

Which of the following is a major advantage of an undifferentiated marketing strategy?

A)Less distribution channels needed
B)Less advertising is needed, thereby reducing costs incurred
C)Companies only have to develop a single product offering, thereby making it convenient
D)Company does not have to continually invest in new product development

Question 49

If The Royal Mail develops a single marketing mix for the whole market, which of the following target marketing strategies is it pursuing?

A)Undifferentiated marketing
B)Differentiated marketing
C)Customized marketing
D)Focused marketing

Question 50

A differentiated target marketing strategy exploits which of the following?

A)Exploits the differences between marketing segments
B)Exploits the differences between competitors' prices
C)Exploits the apathy of consumers
D)Exploits the new trends, fads and fashion

Question 51

A market coverage strategy where a company decides to target one target market (niche) with a single marketing mix is known as:

A)Undifferentiated marketing
B)Differentiated marketing
C)Customized marketing
D)None of the above

Question 52

When a company develops a single marketing mix aimed at one target (niche) market, it is practising which of the following?

A)Differentiated marketing
B)Undifferentiated marketing
C)Customized marketing
D)Focused marketing

Question 53

The objective of positioning is which of the following?

A)To create and maintain a distinctive place in the market for a company and/ or its products
B)To secure the most effective and efficient placement for one's products on retailers' shelf space
C)To create brand value
D)None of the above

Question 54

Deciding what position to occupy in the market involves a consideration of which of the following variables?

A)Customers
B)Competitors
C)The company
D)All of the above

Question 55

When a company designs a separate marketing mix for each customer, this is called which of the following?

A)Differentiated marketing
B)Undifferentiated marketing
C)Customized marketing
D)Focused marketing

Question 56

A market coverage strategy where a company decides to target the entire market with a single marketing mix is known as:

A)Undifferentiated
B)Differentiated
C)Focused
D)Customized

Question 57

The "clarity" positioning idea refers to which of the following?

A)The positioning idea must be a truly unique idea in the marketplace
B)The positioning idea must consist of ideas that can be understood by potential consumers
C)The positioning idea must be clear in terms of both target market and differential advantage
D)None of the above

Question 58

Which of the following are the four key elements to a successful positioning strategy?

A)Credibility, Combination, Collaboration and Competitiveness
B)Credibility, Clarity, Consistency and Competitiveness
C)Combination, Clarity, Charming and Concise
D)Clear, Consistency, Central and Customs

Question 59

When Bang and Olufsen targets its music systems at up-market consumers, which type of target market strategy is it pursuing?

A)Undifferentiated
B)Differentiated
C)Focused
D)Customized

Question 60

Which type of the following companies is suited to employ a focused marketing strategy?

A)Companies with large marketing resources at their disposable
B)Companies with limited resources
C)Companies experiencing fast growth rates
D)Companies possessing strategic business units

Question 61

A "perceptual map" usually contains how many dimensions?

A)1 dimension
B)2 dimensions
C)3 dimensions
D)Contains no dimensions

Question 62

The technique that is used by marketers to get a hold on the diverse nature of markets is called which of the following?

A)Positioning
B)Market segmentation
C)Psychographics
D)Targeting

Question 63

Why are "perceptual maps" used?

A)To assess how a consumer processes information
B)To assess positioning strategies within retail stores
C)To assess creative adverts
D)To assess strategic moves for a brand

Question 64

Which of the following is a classic example of repositioning?

A)British Midland
B)Complan
C)Lucozade
D)All of the above are examples of repositioning

Question 65

Which of the following statements is true?

A)Repositioning may be necessary as market opportunities and threats develop
B)Repositioning may not be necessary when you have a well established brand
C)Repositioning requires you to change your product
D)Repositioning requires good sales staff getting the most optimal shelf space for their brands

Question 66

Repositioning involves which of the following?

A)Changing the location of where a product is stocked in a store
B)Changing advertising strategy
C)Changing the target markets, the differential advantage or both
D)Changing the price of a product or service (e.g. offering discounts)

Question 67

The "competitiveness" positioning idea refers to which of the following?

A)The positioning idea must possess a differential advantage, something which the competition is failing to supply
B)Companies must offer cheaper prices than their competitors
C)Companies must offer superior services over their competitors
D)The positioning idea must clearly show the technological superiority of a brand over their competitors

Question 68

When a company keeps both product and target market the same, but changes the image of the product, it is practising which of the following?

A)Tangible repositioning
B)Intangible repositioning
C)Image repositioning
D)Promotional repositioning

Question 69

When a company retains the product but changes the market segment that they are aiming for, then a company is practising which of the following?

A)Tangible repositioning
B)Intangible repositioning
C)Targeted repositioning
D)Untargeted repositioning

Question 70

Which of the following companies typically do not employ customized marketing?

A)Advertising Agency
B)Architect
C)Solicitor
D)Butcher

Question 71

Analysis of biographic data allows supermarkets to do which of the following?

A)To stock products in each of their stores more relevant to their customers' age, lifestyle and expenditure.
B)To make pricing adjustments
C)To analyse competitors' marketing strategies
D)To adjust their advertising, pricing and promotional strategy in order to compete against rival supermarkets

Question 72

Which of the following is a major reason why companies segment their markets?

A)It allows companies an opportunity to enhance their image
B)Companies identify which segments they might most effectively compete in and develop strategies suited for that segment
C)It allows companies to change their marketing strategies as consumers' tastes and preferences change
D)Through segmenting markets, companies can attract distributors

Question 73

Which of the following is a variable used in segmentation of consumer markets?

A)Behavioural
B)Psychographic
C)Profile
D)All are consumer segmentation variables

Question 74

BMW has been using the slogan 'The ultimate driving machine' for decades to ensure the _____________ of the brand's positioning?

A)clarity
B)consistency
C)credibility
D)competitiveness

Question 75

When both product and target market are changed a company is practising which of the following?

A)Tangible repositioning
B)Intangible repositioning
C)Targeted repositioning
D)Untargeted repositioning

Question 76

Why, in some cases, is repositioning required?

A)Due to poor advertising campaigns
B)Due to poor and ineffective product placement within stores
C)Because of changing customer tastes or poor sales performance
D)Because consumers feel that the product or service is overpriced

Question 77

A "perceptual map" is which of the following?

A)A visual representation of consumer perceptions of the brand and its competitors using attributes (dimensions) that are important to consumers
B)A visual representation of distributors' perceptions of how a consumer's decision making process works
C)A layout of how a consumer processes advertising, used in the creative planning of advertisements
D)A layout of an effective supermarket store, used in retailing, to assist in the positioning of products

Question 78

Why is market segmentation carried out?

A)To break down large markets into smaller markets
B)Provides an opportunity to surpass competitors
C)By grouping together customers with similar needs, it provides a commercially viable method of serving these customers
D)Allows the achievement of greater market share

Question 79

When a company's product is changed but the target market remains the same, then this is an example of a company practising which of the following?

A)Tangible repositioning
B)Technological repositioning
C)Product repositioning
D)Promotional repositioning

Question 80

A _______ statement is a memorable, image-enhancing, written summation of the product's desired stature.

A)tactical
B)segmentation
C)targeting
D)positioning