Deck 6: Markets: Segmentation, Targeting and Positioning

Question 1

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

A) A group of customers with heterogeneous needs and wants.
B) A group of customers with homogenous needs and wants.
C) The business-to-consumer market.
D) The business-to- business market.
E) None of the options listed.

Answer 1

A group of customers with heterogeneous needs and wants.

Question 2

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

A) network.
B) consumer market.
C) producer market.
D) market.

Answer 2

market.

Question 3

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

A) users do not intend to make a profit.
B) users purchase for private consumption.
C) similar to a business market.
D) none of the above.
E) option a and b only.

Answer 3

option a and b only.

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.

A) grow, understand, benefit, total
B) identify, understand, value, target
C) identify, grow, value, total
D) identify, understand, value, total

Question 5

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

A) The marketing mix.
B) Market research.
C) Creating, communicating and delivering an offering of value.
D) Both a and b.
E) Both a and c.

Question 6

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

A) market, creating, value
B) customer, creating, benefit
C) market, advertising, benefit
D) customer, creating, 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:

A) identifying smaller, more targetable market segments, then tailoring the marketing mix to best appeal to those segments.
B) identifying business-to-consumer markets, then tailoring the marketing mix to best appeal to those markets.
C) identifying business-to-business markets, then tailoring the marketing mix to best appeal to those markets.
D) developing a marketing mix for the market.
E) none of the options listed.

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:

A) product specialisation.
B) market specialisation.
C) product-market specialisation.
D) differentiated target marketing.

Question 9

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

A) mass marketing.
B) one-to-one marketing.
C) target marketing.
D) target marketing based on segments.
E) product specialisation.

Question 10

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

A) one-to-one marketing.
B) an undifferentiated offer.
C) customised marketing.
D) a differentiated offer.

Question 11

Which of the following statements is correct?

A) Mass marketing is best suited to situations where buyers have common wants, needs and demands.
B) Target marketing is best suited to situations where subgroups in the market can be identified that have similar characteristics.
C) One-to-one marketing is best suited to situations where buyers have unique wants, needs and demands.
D) All of the options listed.
E) Only b and c are correct.

Question 12

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

A) Individual buyers or groups of buyers can be identified.
B) Sellers understand the needs of buyers.
C) Sellers will seek to shape their offer to meet the needs of target buyers.
D) All of the options listed.

Question 13

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

A) Positive word-of-mouth customer referrals.
B) Building close relationships with a customer.
C) Customer loyalty.
D) Potential repeat purchases from the customer.
E) All of the options listed are potential advantages.

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:

A) product specialisation.
B) product-market specialisation.
C) market specialisation.
D) market-product specialisation.

Question 15

Which of the following statements is/are correct?

A) A market segment has distinctive needs, but the members of the segment have similar needs.
B) A market segment has similar needs, but the members of the segment have distinctive needs.
C) An architect designing a couple's 'dream' home is an example of customised marketing.
D) Both a and c.
E) Both b and c.

Question 16

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

A) product.
B) consume.
C) producer.
D) niche.

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:

A) homogenous.
B) heterogeneous.
C) target markets.
D) mass markets.
E) niche markets.

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.

A) market segmentation
B) market research
C) market intelligence
D) marketing strategy
E) the marketing mix

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?

A) An organisation following the target marketing concept should target all market segments.
B) Different target markets may require a different positioning strategy.
C) Market segments should be selected for targeting after an evaluation process.
D) Markets can be segmented many different ways using different segmentation variables.
E) Different market segments may require different marketing mixes.

Question 20

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

A) one-to-one marketing.
B) mass marketing.
C) product specialisation.
D) market specialisation.
E) product-market specialisation.

Question 21

Which strategy would most accurately describe the marketing efforts of a major car manufacturer such as Toyota?

A) Mass marketing.
B) Customised.
C) Differentiated targeting.
D) Production-oriented.
E) Undifferentiated targeting.

Question 22

A credit union that provides a wide range of financial services to members who are employed in particular industries would be best described as having:

A) a market specialisation.
B) a product specialisation.
C) a service specialisation.
D) a product-market specialisation.
E) None of the options listed.

Question 23

'Camera House' takes a product specialisation approach, specialising in the sale of cameras. The product specialisation approach (or alternatively a market specialisation approach) will only be a beneficial marketing strategy for Camera House while:

A) clear market segments or product categories exist or can potentially exist in the market.
B) the market is characterised by a wide range of needs and product preferences.
C) individual market segments or product categories are sufficiently large to represent an opportunity for the organisation to achieve profitable sales volume.
D) Options a, b and c.
E) Only a and b.

Question 24

There are two steps in the market segmentation phase: _____________ that can be used to define meaningful market segments; and _____________the market segments so they can be assessed in the second stage of the target marketing process.

A) market research, surveying
B) market research, profiling
C) identifying variables, profiling
D) identifying variables, surveying

Question 25

Market segmentation based on variables, which are the vital and social characteristics of populations, such as age, education and income, is known as:

A) demographic segmentation.
B) geographic segmentation.
C) psychographic segmentation.
D) behavioural segmentation.

Question 26

Behavioural segmentation differs from geographic, demographic and psychographic segmentation because it:

A) is based on 'consumer characteristics'.
B) is relatively unchanging over time.
C) cannot provide evidence of emerging trends.
D) is based on actual purchase and/or consumption behaviours.

Question 27

As a marketer for a major wine company, you implement a marketing program based on occasion-based segmentation. You market some products as 'gifts', others as 'celebratory' and others for 'cellaring'. You action is an example of:

A) geographic segmentation.
B) psychographic segmentation.
C) behavioural segmentation.
D) demographic segmentation.

Question 28

As an importer of surfing accessories, your company focuses its marketing operations in the warmer coastal regions of Australia. This action is an example of:

A) geographic segmentation.
B) psychographic segmentation.
C) behavioural segmentation.
D) demographic segmentation.

Question 29

Market segmentation variables should always:

A) require a lot of market research to obtain.
B) be linked closely to the purchase of the product in question.
C) segment a market geographically.
D) be based on demographics.
E) include a psychographic component.

Question 30

The Australian car market can potentially be segmented in a number of different ways. When segmenting any market, the market segmentation variables should always:

A) require a lot of market research to obtain.
B) be linked closely to the purchase of the product in question.
C) segment a market geographically.
D) be based on demographics.
E) include a psychographic component.

Question 31

When brands like Ford, Holden and Land Rover advertise in Australia, they often showcase the ruggedness of the Australian landscape. These include off-road locations, desert terrain and harsh weather. This method of market segmentation could best be described as:

A) geographic.
B) demographic.
C) psychographic.
D) behavioural.
E) geo-psychographic.

Question 32

The broad market segments of 'Baby Boomers', 'Generation X', 'Generation Y' and Generation Z' have been created primarily based upon:

A) psychographic variables.
B) behavioural variables.
C) demographic variables.
D) geo-demographic variables.
E) None of the options listed.

Question 33

Emma decides that after establishing a successful business using a mass marketing approach, she wants to expand by differentiating her product range. Emma wants to segment her market based on demographic variables. Which of the following is not a demographic variable?

A) Age.
B) Ethnicity.
C) Household composition.
D) Income.
E) All of the options listed are demographic variables.

Question 34

Emma decides that after establishing a successful business using a mass marketing approach, she wants to expand by differentiating her product range. Emma conducts market research investigating the psychographic characteristics of her market. Emma understands that:

A) psychographic segmentation variables include consumer personality attributes.
B) psychographic segmentation variables include consumer lifestyles.
C) psychographic segmentation variables include consumer motives.
D) both a and b are correct.
E) Options a, b and c are correct.

Question 35

The Roy Morgan Values Segments and VALS are two examples of:

A) psychographic segmentation models.
B) demographic segmentation models.
C) behavioural segmentation models.
D) geo-demographic segmentation models.
E) None of the options listed.

Question 36

Which of the following statements is correct?

A) Psychographic segmentation variables include consumer personality attributes.
B) Psychographic segmentation variables include consumer lifestyles.
C) Psychographic segmentation variables include consumer motives.
D) Both a and b are correct.
E) Options a, b and c are correct.

Question 37

Fervor is a local Australian hospitality provider that specialises in pop-up dining experiences across Australia. They focus on showcasing local native ingredients and partner with local businesses to make each degustation unique and no meal the same. Consumers who would be interested in this service, would likely be segmented by:

A) demographic segmentation.
B) psychographic segmentation.
C) geographic segmentation.
D) geo-demographic segmentation.
E) None of the options listed.

Question 38

Which of the following is not a behavioural segmentation variable?

A) Consumer's benefit expectations of a product.
B) The occasion for which a product may be purchased by a consumer.
C) Heavy, medium or light users of a product.
D) Brand loyal consumers.
E) All of the options listed are behavioural segmentation variables.

Question 39

Luxury manufacturer Rolex understands the additional 'expected benefits' that its products offer consumers. Market segmentation based on expected benefits is an example of:

A) geographic.
B) demographic.
C) psychographic.
D) behavioural.
E) geo-psychographic.

Question 40

Which of the following is not a variable an organisation could use to segment business markets?

A) Organisational size.
B) Type of industry.
C) Product use.
D) Geographic.
E) All of the options listed are potential business market segmentation variables.

Question 41

For which of the following segmentation variables is it more likely to be difficult to measure and obtain accurate data?

A) Demographic variables.
B) Organisational size.
C) Psychographic variables.
D) Geographic variables.
E) All of the options listed are difficult to measure.

Question 42

A market segment profile describes:

A) common features shared by members of market segments and how they differ from other market segments.
B) qualitative characteristics of a particular market segment.
C) quantitative characteristics of a particular market segment.
D) the marketing mix that will be targeted at a particular market segment.
E) None of the options listed.

Question 43

An organisation that segments its market by offering rewards based on the amount of points accumulated on its loyalty card would be best described as utilising:

A) demographic segmentation.
B) psychographic segmentation.
C) behavioural segmentation.
D) geo-demographic segmentation.
E) None of the options listed.

Question 44

Market ___________ involves a systematic examination of the range of possible market segments, their potential ___________ and revenues, and the relative ability of the organisation to satisfy the expectations of members of these market segments.

A) segmentation, profits
B) targeting, sales volume
C) segmentation, sales volume
D) targeting, profits

Question 45

The total volume of sales of a product category that all organisations in an industry are expected to sell in a specified period of time, assuming a specific level of marketing activity is known as:

A) market potential.
B) sales revenue.
C) market share.
D) return on investment.

Question 46

During the targeting phase, the main goal is to evaluate potential segments and select segments prior to positioning.

Question 47

Australia sells around one million cars a year. This figure represents the:

A) market potential.
B) sales revenue.
C) market share.
D) return on investment.

Question 48

Which of the following would be a consideration for an organisation in evaluating market segments and deciding which to target?

A) The ability of the organisation to satisfy the needs and expectations of different market segments.
B) The potential sales volume and revenues of different market segments.
C) An understanding and/or analysis of competitors and how their offerings are seen by potential target market segments.
D) The cost to the organisation of targeting that market segment.
E) All of the options listed would be considerations.

Question 49

Which of the following statements is/are correct?

A) Market potential refers to the minimum possible sales in the total market for a product category, by all organisations.
B) Market share refers to the proportion of the total market held by an organisation.
C) The level of industry marketing activity will generally influence the market potential of a product category.
D) All of the options listed.
E) Only options b and c are correct.

Question 50

Which of the following would be useful for an organisation in forecasting the sales potential for a market segment?

A) A knowledge of the conditions in its marketing environment.
B) A knowledge of its current market share in that segment.
C) A knowledge of the activities of competitors.
D) All of the options listed.
E) Only a and b would be useful.

Question 51

Evaluating and selecting market segments is part of the ______________ stage of the target marketing process.

A) segmentation
B) positioning
C) targeting
D) final
E) first

Question 52

As a marketing manager, you undertake research to understand how potential buyers see your brand. Your research is aiming to identify your brand's:

A) position.
B) value.
C) benefit.
D) potential.

Question 53

___________ produces two-dimensional maps showing how competing brands relate to each other in terms of a range of product attributes. This, of course, assumes that consumers in the target segment are ___________ with the brand and its competitors and are able to subjectively or objectively compare them on attributes that they believe to be important.

A) Perceptual mapping, unfamiliar
B) Behavioural mapping, already familiar
C) Perceptual mapping, already familiar
D) Behavioural mapping, unfamiliar

Question 54

The first step in determining the current positioning of a brand is:

A) to devise some concept of the ideal position of the organisation's product or brand.
B) to identify product attributes that consumers use to distinguish between competing products or brands.
C) to develop a plan to move to the desired position.
D) to move towards a position related to peer status.

Question 55

Familiar brands such as Arnott's Biscuits generally occupy clear and strong positions (as perceived by the market). This leads to:

A) a strength because consumers know the product benefits and features.
B) a weakness because this position is difficult to change short term.
C) a limitation because new brands in the market can establish positions based on new benefits.
D) all of the options listed.

Question 56

Which of the following statements provides the best description of the marketing concept of positioning?

A) The methods followed by an organisation when promoting its products in the market.
B) How target markets perceive an organisation, its products and brands in relation to competitors.
C) An organisation's market share in relation to competitors.
D) An organisation developing an appropriate marketing mix for a target market segment.
E) An organisation identifying target markets for its products.

Question 57

Which of the following can influence the market position of an organisation, its products, or its brands in the minds of target consumers?

A) Advertising and other promotional efforts.
B) The customer's experience of the organisation, product, or brand.
C) The price of the organisation's product.
D) The features of the organisation's product.
E) All of the options listed.

Question 58

A common technique used to determine market positioning is:

A) perceptual mapping.
B) the marketing mix.
C) market targeting.
D) market promotion.
E) environmental analysis.

Question 59

Which of the following statements is false?

A) A product, organisation or brand may be able to be repositioned.
B) The positioning of an organisation, its product/s and brand/s should be consistently reinforced.
C) The positioning of an organisation, its product/s and brand/s should be changed regularly.
D) Positioning is based on customer perceptions as well as reality.
E) How an organisation wishes to position its product offering to a target market should influence the development of its marketing mix for that target market.

Question 60

The first step in determining the current positioning of a brand is:

A) to evaluate the price of competing products or brands.
B) to develop a marketing mix.
C) to evaluate the promotional campaigns of competitors.
D) to identify the product attributes that target consumers use to distinguish between competing products or brands.
E) None of the options listed.