Question 1

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.

Accepted Answer

identify market segmentation variables for consumer and business markets, and develop market segment profiles. To ensure that segmentation is effective, segments should be checked against the following criteria: measurability, accessibility, substantiality and practicability. More abstract variables, such as personality (a psychological trait that is identified with psychographic segmentation), and motives, are particularly difficult to measure. It can be more challenging for marketers to obtain accurate data on such variables than on other, more easily measured variables (such as demographic and geographic variables).

Question 2

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.

Accepted Answer

identify market segmentation variables for consumer and business markets, and develop market segment profiles. A market segment profile describes the typical potential customers in the market segment, and how they differ between market segments.

Question 3

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.

Accepted Answer

identify market segmentation variables for consumer and business markets, and develop market segment profiles. Behavioural segmentation is based on actual purchase and/or consumption behaviours, typically towards particular products. An organisation that segments its market by offering rewards based on the amount of points accumulated on its loyalty card is rewarding brand loyalty, a behavioural variable that can be the basis of segmentation.

Question 4

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

Accepted Answer

select specific target markets based on evaluation of potential market segments. Market targeting involves a systematic examination of the range of possible market segments, their potential sales volume and revenues, and the relative ability of the organisation to satisfy the expectations of members of these market segments.

Question 5

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.

Accepted Answer

select specific target markets based on evaluation of potential market segments. Market potential is 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.

Question 6

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

Accepted Answer

select specific target markets based on evaluation of potential market segments. The targeting phase involves a systematic examination of the range of possible market segment.

Question 7

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.

Accepted Answer

select specific target markets based on evaluation of potential market segments. Market potential is 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.

Question 8

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.

Accepted Answer

select specific target markets based on evaluation of potential market segments. The choice of appropriate targeting strategy ultimately depends on an understanding of the size and attractiveness of market segments, and organisational ability to compete for chosen market segments. The market potential - the total 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 a factor that organisations take into account in evaluating market segments. Additionally, the competitive situation, costs, and resources and capabilities are all important considerations that organisations need to take into account with market segmentation and targeting.

Question 9

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.

Accepted Answer

select specific target markets based on evaluation of potential market segments. Market share refers to the proportion of the total market held by an organisation. Market potential is the total 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. The level of industry marketing activity will generally influence the market potential of a product category.

Question 10

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.

Accepted Answer

select specific target markets based on evaluation of potential market segments. The conditions in the marketing environment, an organisation's current market share in a segment and knowledge of competitors' activities are all useful in forecasting sales potential.

Question 11

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

Accepted Answer

select specific target markets based on evaluation of potential market segments. Having identified a range of potential target market segments, the organisation needs to undertake a rigorous analysis to choose between the range of possible segments. Assuming that several segments offer sufficient revenue opportunities, the organisation must decide which and how many of these segments to target. This decision will be based on the revenue opportunities identified in the previous step, together with an understanding of the organisation's resources and capabilities and the likely response of competitors.

Question 12

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.

Accepted Answer

understand how to effectively position an offering to a target market in relation to competitors, and develop an appropriate marketing mix. Positioning describes how target markets perceive the organisation's offer relative to competing offers. It is how customers distinguish the organisation, its products and its brands from competitors when they are selecting from among the available alternatives.

Question 13

___________ 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

Accepted Answer

understand how to effectively position an offering to a target market in relation to competitors, and develop an appropriate marketing mix. Perceptual mapping 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 already familiar with the brand and its competitors and are able to subjectively or objectively compare them on attributes that they believe to be important.

Question 14

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.

Accepted Answer

understand how to effectively position an offering to a target market in relation to competitors, and develop an appropriate marketing mix. The first step in determining the current positioning of a brand is to identify those product attributes that consumers use to distinguish between competing products or brands.

Question 15

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.

Accepted Answer

understand how to effectively position an offering to a target market in relation to competitors, and develop an appropriate marketing mix. In familiar product categories, familiar brands occupy clear and strong positions, which is paradoxically both a strength and a limitation. Existing consumers are in no doubt about the benefits and features of the product. At the same time, such a strong position is difficult to change, and new brands are better able to establish new positions based on new benefits as consumers develop awareness of new issues.

Question 16

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.

Accepted Answer

understand how to effectively position an offering to a target market in relation to competitors, and develop an appropriate marketing mix. Positioning describes how target markets perceive the organisation's offer relative to competing brands. It is how customers distinguish the organisation's products from those of its competitors when they are selecting from among the available brands.

Question 17

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.

Accepted Answer

understand how to effectively position an offering to a target market in relation to competitors, and develop an appropriate marketing mix. Communicating a product's attributes through advertising and other promotional campaigns is crucial in establishing an initial market position in the minds of target customers. Once customers have sampled the brand, the brand's positioning will subsequently depend very largely on the customer's experience of the brand. Product features and price can also influence market positioning.

Question 18

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.

Accepted Answer

understand how to effectively position an offering to a target market in relation to competitors, and develop an appropriate marketing mix. Perceptual mapping produces two-dimensional maps showing how each of the competing brands relate to each other in terms of a range of product attributes.

Question 19

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.

Accepted Answer

understand how to effectively position an offering to a target market in relation to competitors, and develop an appropriate marketing mix. Once established, a competitive position should be protected and nurtured for the long term. This involves communicating a consistent message and delivering a consistent product over the long term. In this sense, positions should not be chopped and changed, but rather should be created, nurtured and consistently reinforced.

Question 20

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.

Accepted Answer

understand how to effectively position an offering to a target market in relation to competitors, and develop an appropriate marketing mix. The first step in determining the current positioning of a brand is to identify those product attributes that consumers use to distinguish between competing products or brands.

Quiz 6: Markets: Segmentation, Targeting and Positioning

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

A market segment profile describes:

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:

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.

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:

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

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

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

Which of the following statements is/are correct?

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

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

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

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

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

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

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

A common technique used to determine market positioning is:

Which of the following statements is false?

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