Deck 7: Segmentation, Targeting, and Positioning

Question 1

When it comes to criteria for segmenting markets,it is important that the size and purchasing power of a market segment should be clearly identified.In other words,it should be

A)differentiable.
B)actionable.
C)measurable.
D)identifiable.
E)accessiblE.

Answer 1

C

Question 2

One of the most important sources of demographic information for marketers,which of the following provides free information on data such as how households are segmented by race,education,age,and occupation?

A)ACNielsen Company
B)the Social Security Administration
C)Consumer Reports
D)the U.S.Bureau of Labor Statistics
E)the U.S.Census Bureau

Answer 2

E

Question 3

Marketers particularly target older Americans because

A)they tend to pay more attention to advertisements than other consumers.
B)they tend to be more educated than other consumers.
C)they purchase products not only for themselves,but also for their family members.
D)they tend to have more time and money than younger consumers.
E)there are more products available to that age group.

Answer 3

D

Question 4

A defined in your text,market segmentation involves dividing a larger market into smaller market segments based on

A)meaningfully shared characteristics.
B)geographic region.
C)available sales force.
D)potential interest in a product.
E)shopping habits.

Question 5

To be effective,segmentation should create market segments that rate favorably on various criteria.Which of the following is not one of the criteria outlined in your text?

A)substantial
B)actionable
C)variable
D)measurable
E)accessible

Question 6

Which market segment criteria refers to the fact that segments must be large enough for the firm to make a profit by serving them?

A)measurable
B)substantial
C)differentiable
D)actionable
E)accessible

Question 7

An auto insurance company segmented its market by both gender and age,and designed different marketing campaigns to appeal to both.In the end,both segments responded the same to the different marketing strategies,in part,because both segments are required to have auto insurance.This firm failed to understand the criteria of market segments needing to be

A)accessible.
B)actionable.
C)differentiable.
D)measurable.
E)substantial.

Question 8

Market segments are

A)the two buying groups: those that have never purchased a firm's product,and those that are potential repeat customers.
B)the different geographical areas in which a product must be marketed differently.
C)relatively homogenous groups of consumers that result from the segmentation process.
D)relatively heterogeneous groups of consumers that result from the segmentation process.
E)the various types of advertising and promotional campaigns used to sway consumer interest in a product.

Question 9

When a firm is reasonably certain that its marketing mix can inform consumers about the product,how it adds value to the consumer,and ultimately how to purchase it,then the firm rates favorably on which market segment criteria?

A)differentiable
B)actionable
C)substantial
D)accessible
E)measurable

Question 10

Read the following statements to select the choice that is not true of market segmentation.

A)Market segmentation helps firms design specific marketing strategies for the characteristics of specific segments.
B)Market segmentation identifies which products will be profitable and which ones are not worth pursuing.
C)Market segmentation results in identifying the relatively homogenous groups of consumers to which a firm can market its products.
D)Market segmentation helps firms decide how to allocate their marketing resources in a way that maximizes profit.
E)Market segmentation helps firms define the needs and wants of the customers who are most interested in buying the firm's products.

Question 11

Which of the following is a demographic segmentation variable?

A)gender
B)market size
C)population shifts
D)motivation
E)lifestyle

Question 12

The process of dividing a larger market into smaller groups based on meaningfully shared characteristics is referred to as

A)mass marketing.
B)concept testing.
C)market segmentation.
D)positioning.
E)market fragmentation.

Question 13

Clif Bar & Company,makers of energy and nutrition bars,expanded their product line to include Clif Kid Z Bars.These bars are specifically designed to provide the right kind of nutrition for growing children.For this product,Clif Bar & Company is segmenting the market based on

A)lifestyle.
B)customer convenience.
C)gender.
D)age.
E)motivation.

Question 14

Demographic segmentation divides markets by

A)characteristics such as loyalty and price sensitivity.
B)geographic location.
C)psychological traits.
D)consumer attitudes.
E)characteristics such as age,gender,and incomE.

Question 15

What are the two most commonly used demographic variables used by marketers?

A)age and income
B)education and family size
C)family size and age
D)age and gender
E)gender and income

Question 16

It has been Shelly's dream to open a bakery,and while she has experience in making all types of baked goods,she always gets rave reviews for her hand-decorated cupcakes.So,rather than open a bakery that offers a wide variety of baked goods,Shelly has decided to open a specialty cupcake shop to cater to that market only.This is an example of

A)repositioning.
B)market fragmentation.
C)mass marketing.
D)market segmentation.
E)limited marketing.

Question 17

What does the criteria accessible mean regarding market segments?

A)Marketers should develop strategies that can attract a market to its products.
B)Markets should be clearly identified with appropriate strategies developed for each.
C)Marketers must be able to reach and serve the segment.
D)The size and purchasing power of the segment should be clearly identifieD.
E)Segments must be large enough for the firm to make a profit by serving them.

Question 18

Which of the following is not one of the broad segmentation bases outlined in your text that can be used to segment a market?

A)demand
B)demographic
C)behavioral
D)geographic
E)psychographic

Question 19

Market segmentation refers to

A)dividing a larger market into smaller groups based on meaningfully shared characteristics.
B)marketing a product so that each and every consumer can get value from it.
C)redesigning or repositioning a product so it meets the needs of a target market.
D)having regional sales forces that can market a product according to geographic area.
E)taking an overall marketing plan and dividing it into smaller campaigns based on each product.

Question 20

Market segmentation produces relatively homogenous groups of consumers called

A)consumer segments.
B)market segments.
C)consumer clusters.
D)market sectors.
E)consumer targets.

Question 21

What type of business-to-business segmentation allows B2B marketers to segment based on purchasing patterns,supplier requirements,and technological orientation?

A)psychographic
B)demographic
C)geographic
D)lifestyle
E)behavioral

Question 22

Free-standing areas with a core urban population of at least 50,000 are what the U.S.Census Bureau calls

A)metropolitan districts.
B)metropolitan statistical areas.
C)urban statistical areas.
D)major cities.
E)urban numerical areas.

Question 23

Segmentation based on where prospective consumers live,work,and spend their leisure time is referred to as

A)regional segmentation.
B)proximity segmentation.
C)geographic segmentation.
D)demographic segmentation.
E)residential segmentation.

Question 24

The VALS framework classifies adults into eight psychographic groups: Innovators,Thinkers,Believers,Achievers,Strivers,Experiencers,Makers,and

A)Skeptics.
B)Survivors.
C)Seekers.
D)Creators.
E)Fighters.

Question 25

According to the 2010 U.S.Census,which is the only southern state that lost seats in the House of Representatives due to population shifts out of the state?

A)Texas
B)Louisiana
C)Arizona
D)Florida
E)South Carolina

Question 26

When marketers segment based on psychographics,the market is divided into groups according to

A)a consumer's income and interest in the product.
B)family size and marital status.
C)how convenient the product is for the consumer.
D)the reason why the consumer made the purchase.
E)how consumers act toward products.

Question 27

American households that have between $100,000 and $250,000 in investable assets are one of the fastest growing segments in the United States and are referred to as

A)the well-to-dos.
B)ultra-prosperous.
C)ultra-rich.
D)the massively wealthy.
E)mass affluent.

Question 28

Stores like Cabela's,REI,and Bass Pro Shops that cater to outdoor enthusiasts' most likely use what type of segmentation strategy?

A)socioeconomic segmentation
B)psychographic segmentation
C)demographic segmentation
D)behavioral segmentation
E)geographic segmentation

Question 29

Contractors that advertise the ability to turn home attics or the space above a garage into living areas are most likely targeting their market based on the demographic variable of

A)neighborhoods.
B)family size.
C)gender.
D)usage rate.
E)incomE.

Question 30

A psychographic segmentation variable that divides people into groups based on their opinion and the interests and activities they pursue is called

A)psychological segmentation.
B)lifestyle segmentation.
C)socioeconomic segmentation.
D)behavioral segmentation.
E)social segmentation.

Question 31

Quentin is a realtor selling high-end homes priced over $750,000.Before showing a property to prospective clients,Quentin makes sure they are pre-qualified for a home loan commensurate with the price of the house.This pre-qualification is based mainly on the client's income,which is what type of segmentation variable?

A)psychographic
B)financial
C)geographic
D)behavioral
E)demographic

Question 32

Business-to-business firms generally segment their markets according to what three variables?

A)profit potential,price sensitivity,and demand
B)demographic,geographic,and behavioral
C)market size,customer convenience,and usage rate
D)price sensitivity,usage rate,and region
E)demographic,geographic,and psychographic

Question 33

The fact that you see a Starbucks on practically every corner would indicate that Starbucks is most likely geographically segmenting based on

A)market size.
B)customer convenience.
C)income.
D)population shifts.
E)lifestylE.

Question 34

Behavioral segmentation divides consumers according to

A)how motivated and how many resources a consumer has.
B)how consumers behave with or act towards products.
C)customer convenience and market size.
D)consumers' opinion and interests.
E)the various lifestyles of the consumer.

Question 35

According to your text,the segmentation base that is often the most difficult to use is

A)geographic segmentation.
B)demographic segmentation.
C)lifestyle segmentation.
D)psychographic segmentation.
E)behavioral segmentation.

Question 36

Psychographic segmentation refers to the science of segmenting markets based on

A)consumers' opinions,interests and attitudes.
B)behavior and demographics.
C)consumers' income,age and behavior.
D)psychology,demographics and personaltiy.
E)psychology and geography.

Question 37

Which of the following is a behavioral segmentation variable?

A)family size
B)usage rate
C)population shifts
D)customer convenience
E)lifestyle

Question 38

The 80/20 rule is a theory that suggests that

A)80 percent of a firm's profits is generated from 20 percent of its product line.
B)20 percent of the total demand for products comes from 80 percent of the target market.
C)20 percent of heavy users account for 80 percent of the total demand.
D)20 percent of a firm's products are never marketed to 80 percent of consumers.
E)80 percent of a firm's products are marketed to only 20 percent of the population.

Question 39

Read the following statements to select which one is accurate regarding the use of social media in market segmentation.

A)By segmenting the market by those who are active on social media,companies can connect with a larger and more diverse consumer base.
B)As compared to traditional segmenting techniques,it is easier to know exactly how to engage consumers on social networking sites.
C)Social media is not very helpful in segmenting markets,but it can be a useful tool for marketers once the market has already been segmented.
D)As of yet,social media has not been proven to be an effective tool for segmenting markets.
E)Social media is most helpful in reaching out to older Americans and senior citizens.

Question 40

According to the VALS framework,why different consumer groups exhibit different behaviors or why different consumer groups exhibit the same behaviors for different reasons is based on

A)lifestyle and income.
B)motivation and desire.
C)opinion and resources.
D)motivation and resources.
E)opinion and interests.

Question 41

When a company evaluates each market segment to determine which segment or segments present the most attractive opportunity to maximize sales,it is engaged in

A)segmenting.
B)targeting.
C)repositioning.
D)situation analysis.
E)positioning.

Question 42

Which of the following is not characteristic of gathering the information needed to engage in international market segmentation?

A)Social media sites and the Internet have made it possible to collect all the information needed to segment international markets.
B)The information needed to segment international markets may be hard to come by.
C)Obtaining the information required to segment international markets is both costly and difficult.
D)Not all countries collect or classify their data in the same way.
E)It is practically impossible to compare the data received across nations in order to form a segment.

Question 43

What factor of the targeting process is at work when a marketer ensures that the target market is appropriate for what the organization is and wants to be as defined in its mission statement?

A)organizational fit
B)strategic fit
C)growth potential
D)segment harmony
E)cultural awareness

Question 44

As it pertains to international segmentation,global segmentation refers to identifying

A)products that will have a global appeal.
B)products that can be marketed in the same way across the globe.
C)a group of consumers with common needs and wants that spans the entire globe.
D)similar patterns in cultures that can be used to segment a market.
E)markets that will be favorable for exporting products internationally.

Question 45

What type of targeting strategy works with uniform products for which the firm can develop a single marketing mix that satisfies the needs of all customers?

A)a concentrated marketing strategy
B)a geographic targeting strategy
C)a niche marketing strategy
D)a differentiated targeting strategy
E)an undifferentiated targeting strategy

Question 46

Rico's firm manufactures homemade salsa.His product is sold around the country,but he adds extra jalapenos to his product sold in Texas,New Mexico,and Arizona because those customers prefer the extra heat and spice.Rico also markets the product differently based on the region of the country where it is sold.This represents what type of targeting strategy?

A)undifferentiated
B)niche
C)concentrated
D)differentiated
E)geographic

Question 47

According to your text,when selecting a target market,firms should consider three important factors: growth potential,level of competition,and

A)cultural factors.
B)economic conditions.
C)strategic fit.
D)proximity to the market.
E)profitability timeframE.

Question 48

A firm marketing its product in the United States and abroad may have to tweak the product for its international customers and as such may have to market it differently.What type of targeting strategy would work best for this situation?

A)undifferentiated
B)differentiated
C)geographic
D)niche
E)concentrated

Question 49

Firms that market the same product to multiple regions with different preferences may need to tweak the product to ensure that it meets a need unique to each segment.This represents what type of targeting strategy?

A)a differentiated marketing strategy
B)a geographic targeting strategy
C)a concentrated targeting strategy
D)an undifferentiated targeting strategy
E)a niche marketing strategy

Question 50

Undifferentiated targeting is a strategy that

A)markets the same product to multiple regions.
B)approaches the marketplace as one large segment.
C)involves pursuing a large share of a small market.
D)uses a different marketing strategy for each segment.
E)simultaneously pursues several different market segments with a different strategy for each.

Question 51

According to your text,what tool provides an excellent framework to determine if a firm will be successful targeting a specific segment?

A)a segmentation analysis
B)Maslow's hierarchy of needs
C)a SWOT analysis
D)a perceptual map
E)a positioning map

Question 52

What can be said of the level of competition when selecting a target market?

A)The more intense the competition within a segment,the more attractive it is to marketers.
B)The more competitors there are within a segment,the less of a chance there is for price wars.
C)The more competitors there are,the more a firm will have to invest in promotion to increase market share.
D)A market segment is less attractive to marketers if there are only a few competitors for that segment.
E)The more competitors there are within a segment,the less a company will have to spend to reach out to consumers.

Question 53

Which international segmentation base usually results in market segments made up of young people,those that have more money to spend,or those with access to the Internet?

A)unique
B)global
C)national
D)cultural
E)regional

Question 54

Firms typically segment international markets using three general bases: global,regional,and

A)unique.
B)national.
C)economiC.
D)political.
E)cultural.

Question 55

Carson has opened up a new sports bar/restaurant in town.He has determined that his market segments are (1)students from the nearby college campus, (2)families with small children,and (3)young adult males.Carson now has to determine which of these segments will provide him with the best opportunity to maximize sales.The process of doing this is referred to as

A)marketing.
B)positioning.
C)repositioning.
D)targeting.
E)segmenting.

Question 56

Which of the following represents the three basic strategies for targeting markets?

A)undifferentiated targeting,differentiated targeting,and niche marketing
B)demographic targeting,geographic targeting,and psychographic targeting
C)primary targeting,secondary targeting,and specialized marketing
D)targeting by product,targeting by price,and targeting by customer
E)print advertising,sales promotion,and public relations

Question 57

As it pertains to international segmentation,unique segmentation is used when

A)a firm can identify a group of consumers with common needs and wants that spans the entire globe.
B)the similarity in needs and wants only extends across the region or several countries.
C)a product offering has market appeal only in English-speaking regions.
D)the similarity in needs and wants exists within one country.
E)a product offering has market appeal in several countries.

Question 58

The potential savings in developing and marketing the product is the major advantage of

A)a niche marketing strategy.
B)an undifferentiated targeting strategy.
C)a geographic targeting strategy.
D)a specialized marketing strategy.
E)a differentiated targeting strategy.

Question 59

After Carson opened up his new sports bar/restaurant,he determined that students from the nearby college campus will provide him with the best opportunity to maximize sales,so he is concentrating his marketing efforts on this group which will be his

A)marketing segment.
B)target sector.
C)target market.
D)primary market.
E)primary segment.

Question 60

The group of customers toward which an organization has decided to direct its marketing efforts is called its

A)target market.
B)marketing segment.
C)primary market.
D)target sector.
E)primary segment.

Question 61

Read the following and select which one best represents a growing ethical concern in targeting certain market segments.

A)Lane Bryant targeting clothing for plus-sized women
B)Skype.com targeting older Americans as a way to connect with their grandchildren
C)Abercrombie and Fitch targeting tweens with sexualized clothing
D)Sears giving discounts to military,fire,and police personnel
E)Miller Brewing Company targeting its beer product line to sporting fans

Question 62

Today's health conscious society has caused cereal manufacturers to rethink their products.Now many cereals such as Frosted Flakes are being marketed as being healthier because they are made with whole grains and have less sugar.This is an example of

A)retargeting.
B)repositioning.
C)remarketing.
D)resegmenting.
E)remanufacturing.

Question 63

If a market segment is _______,a firm should be reasonably certain that its marketing mix can inform consumers about the product,how it adds value to the consumer,and ultimately how to purchase it.

Question 64

A targeting strategy that involves pursuing a large share of a small market segment is referred to as

A)lifestyle marketing.
B)geographic targeting.
C)undifferentiated targeting.
D)differentiated targeting.
E)niche marketing.

Question 65

Regarding positioning a product,when is competitive analysis most important?

A)when a product is unique compared to what other firms are offering
B)when competitors all appear to offer a similar good or service
C)when competitors all appear to offer lower priced options
D)when determining how to segment the market
E)when selecting a target market for a product

Question 66

The competitive analysis tool that creates a visual picture of where products are located in consumers' minds is called a

A)competitive map.
B)conceptual map.
C)marketing map.
D)perceptual map.
E)positioning map.

Question 67

Market ______ are the relatively homogenous groups of consumers that result from the segmentation process.

Question 68

According to your text,what step in deciding how to position a product should be done on a continual basis since consumer tastes change for almost every product?

A)define the product's competitive advantage
B)evaluate feedback
C)undergo market segmentation
D)review the perceptual map
E)analyze competitors positions

Question 69

When highlighting a product's competitive advantage based on attributes,a firm will

A)concentrate on the unique aspects of the product that sets it apart from the competition.
B)show how its product is priced lower than the competition.
C)develop a relationship with the target market that will enhance the product's brand.
D)remind customers the value of the product received in comparison to its price.
E)show how its product use can be advantageous to the customer.

Question 70

College Prep Tutors is a business that tutors high-school students who are preparing to take the ACT test as part of their college entrance requirements.Because it possesses a unique offering that is desirable to a specific market,College Prep Tutors would most likely use what type of target market strategy?

A)niche marketing
B)differentiated targeting
C)mass marketing
D)lifestyle marketing
E)undifferentiated targeting

Question 71

An advantage to using a perceptual map is that it

A)shows the firms strengths,weaknesses,opportunities and threats.
B)can highlight potential market positions that might be underserved.
C)shows how other companies are marketing their products.
D)shows which products of a firm are most profitable.
E)it is the quickest way to determine market segments.

Question 72

A succinct description of the core target market to which a product is directed and a compelling picture of how the firm wants that core market to view the product is called a

A)positioning statement.
B)marketing plan.
C)mission statement.
D)vision statement.
E)business plan.

Question 73

The market segment criteria stating that market segments must be large enough for the firm to make a profit by serving them is _______.

Question 74

The second step in deciding how best to position a product is to

A)evaluate consumer feedback.
B)analyze competitors' positions.
C)clearly define the product's competitive advantage.
D)conduct test marketing on the product.
E)assess the product's profit potential.

Question 75

Both Sam's Club and Costco have positioned themselves as providing a variety of items to shoppers at prices lower than retail stores.These stores have positioned themselves based on

A)application.
B)price/quality relationship.
C)product knowledge.
D)personalized sales support.
E)attributes.

Question 76

The first step marketers should take when deciding how best to position their product is to

A)analyze competitors' positions.
B)define the product attributes that make it unique.
C)evaluate consumer feedback.
D)determine what market segments will be interested in the product.
E)clearly define its competitive advantagE.

Question 77

Market segmentation helps firms in three ways: by helping to define the needs and wants of the customers most interested in buying the firm's products,by helping to design the specific marketing strategies for the specific segments,and by helping firms decide to allocate their marketing resources in a way that maximizes ______.

Question 78

Dividing a larger market into smaller groups based on meaningful shared characteristics is a process referred to as ______ ______.

Question 79

The activities a firm undertakes to create a certain perception of its product in the eyes of the target market is referred to as

A)targeting.
B)positioning.
C)conceptualizing.
D)segmenting.
E)categorizing.

Question 80

According to your text,positioning assumes that consumers

A)will make up their own minds about a product,regardless of how it is marketed.
B)are followers and will only buy products that appeal to their friends as well.
C)are innovators and will always want the latest and most innovative products.
D)will compare goods and services on the basis of benefits.
E)will always want to pay the lowest price possible for a product.