Question 1

With the increasing fragmentation of Australian mass markets into hundreds of micromarkets, each having a different lifestyle with different requirements, target marketing is increasingly taking the form of:

Accepted Answer

As the question suggests, with the increasing fragmentation of Australian mass markets, target marketing is taking the form of micromarketing. Micromarketing is a strategy of targeting small or niche markets with specialized products or services that meet their specific needs and requirements. Therefore, option A is the correct answer. Option B (target marketing) is incorrect because the question already mentions target marketing as the broader concept, whereas the question is asking for the specific form it takes. Option C (specific subgroup targeting) is similar to micromarketing, but it doesn't fully encapsulate the idea of targeting smaller markets with niche products or services. Option D (micromanaging) is unrelated to marketing and doesn't make sense in this context.

Question 2

Segmentation studies are designed in order to:

Accepted Answer

Segmentation studies are designed to discover the specific needs and wants of different groups of consumers, so that companies can develop and promote specialized goods and services to satisfy those needs. This approach recognizes that not all customers have the same wants and needs, and that a one-size-fits-all marketing approach is not the most effective way to reach and satisfy customers. By understanding the characteristics and preferences of different customer segments, companies can develop targeted marketing campaigns and product strategies that are more likely to resonate with those customers and lead to increased sales and customer satisfaction.

Question 3

Cadbury changing its Schweppes ginger ale brand from a mixer for alcoholic drinks to a soft drink by refocusing its product mix (with more emphasis on flavoured ginger ales, such as raspberry ginger ale), its advertising and its packaging, is an example of:

Accepted Answer

Repositioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. Cadbury's shift in focus for its Schweppes ginger ale brand from being a mixer for alcoholic drinks to a standalone soft drink, along with changes in product mix, advertising, and packaging, exemplifies repositioning.

Question 4

Which of the following is not an example of a brand using market segmentation and targeting to benefit both participants in the market place?

Accepted Answer

Holden introducing a new car to target all Australian consumers is not an example of market segmentation and targeting, as it does not differentiate between different groups of consumers with specific needs or preferences.

Question 5

For which of the following examples could a mass marketing strategy work?

Accepted Answer

Mass marketing can work for a basic agricultural product sold to manufacturers because these products are often standardized and have a broad appeal without the need for customization.

Question 6

Which of the following statements is not true?

Accepted Answer

Marketers cannot create a positioning and marketing mix strategy to satisfy the needs of one single customer at a time. Market segmentation involves grouping customers with similar needs and characteristics together, but it does not involve creating a customized strategy for each individual customer.

Question 7

The necessary criteria for successful segmentation include all of the following except:

Accepted Answer

The answer of The necessary criteria for successful segmentation include...

Question 8

Offering the same product and in effect the same marketing mix to all consumers is called:

Accepted Answer

Mass marketing refers to the strategy of offering the same product and marketing mix to all consumers, without segmenting the market or tailoring the offering to specific customer groups. This approach assumes that all consumers have similar needs, preferences, and behavior patterns, and that a single, standardized product can satisfy them all. Mass marketing is often used for basic, staple products with widespread appeal, such as food, beverages, household items, and personal care products. However, this strategy carries the risk of overlooking the diversity of the market and failing to meet the specific needs of different customer segments, which can lead to low customer loyalty, brand switching, and sales decline in the long run.

Question 9

As human beings, we all have the same biological needs, but we all acquire additional needs that are shaped by our environment. Some of these acquired needs are common to many people. The commonality of a need or interest constitutes a:

Accepted Answer

Market segments refer to groups of consumers who share common needs or interests. Therefore, the commonality of a need or interest would constitute a market segment, not a target market, consumption decision, or marketing mix.

Question 10

Which of the following information about consumers can help marketers make decisions about target marketing and advertising strategies?

Accepted Answer

All of the above information can be helpful for marketers in making decisions about target marketing and advertising strategies. Level of education can give insight into the consumer's interests and potential buying power. Occupation can indicate their income level and potential purchasing behavior. And hobbies/activities can provide information on their lifestyle and interests, which can be used to tailor marketing campaigns to their specific desires and needs.

Question 11

_______ is the process of dividing a market into distinct subsets of consumers with common needs or characteristics and selecting one or more subsets to target with a distinct marketing strategy.

Accepted Answer

The process described in the statement is market segmentation, which involves dividing a larger market into smaller subgroups with similar needs and characteristics. Once the segments are identified, a business can then target one or more particular segments with a distinct marketing strategy, which is known as targeting. Positioning refers to the process of creating a unique image or identity for a product or brand in the minds of consumers.

Question 12

_______is accomplished by changing the promotional appeal, the distribution strategy or the price, based on the characteristics of a new segment or changing characteristics of the existing segment.

Accepted Answer

This statement describes the process of repositioning, which involves adjusting the marketing mix (promotional appeal, distribution strategy, or price) to better target a particular segment. This is typically done in response to changes in the market, such as new competitors or shifting consumer preferences, rather than as part of the initial segmentation or targeting process.

Question 13

Which of the following statements is most true according to a specific company?

Accepted Answer

Market segments are the broad groups of potential customers divided by various characteristics, while target markets are the specific segments a company chooses to focus on. Therefore, there are usually more market segments than target markets, as companies select a subset of all available segments to target.

Question 14

Which of the following is a way in which marketers obtain information about the sufficiency of people in their proposed market segments?

Accepted Answer

Marketers can obtain information about the sufficiency of people in their proposed market segments through both secondary data obtained from sources such as the Australian Bureau of Statistics website, as well as probability surveys. By combining the insights gained from these two methods, marketers can make more informed decisions about the feasibility and potential profitability of targeting specific market segments.

Question 15

The division of the total potential markets into smaller, homogeneous segments is:

Accepted Answer

This process is commonly known as market segmentation, where the total potential market is divided into smaller, homogeneous segments based on various characteristics such as demographics, psychographics, behavior, etc.

Question 16

_______ is developing a distinct image for the product in the mind of the consumer.

Accepted Answer

Positioning refers to the process of creating a unique image for the product in the consumer's mind, differentiating it from its competitors. It involves identifying the product's key attributes and benefits and positioning it in a way that appeals to the target audience. Targeting is the process of selecting the specific group of consumers to whom the product is marketed. Placement refers to the distribution channels through which the product is made available to the target audience. Promotion refers to the various marketing activities used to create awareness and interest in the product.

Question 17

The benefits of segmentation, targeting and positioning are:

Accepted Answer

All of the benefits listed (consumers perceiving the product as better fulfilling their specific needs, avoiding head-on competition, and being more profitable) are advantages of segmentation, targeting, and positioning strategies.

Question 18

The following segmentation variables are all easy to identify and measure except:

Accepted Answer

Consumer's preference of colours is subjective and difficult to measure objectively. It may vary based on personal experiences, cultural backgrounds, or emotional associations, making it a less reliable and actionable segmentation variable compared to others.

Question 19

The challenge marketers face is to select one or more segments to target with an appropriate marketing mix. To be an effective target, a market segment should be:

Accepted Answer

The most effective target market segment should be identifiable, sizeable, stable or growing, accessible, and congruent with the marketer's objectives and resources. Identifiable means that the segment can be distinguished from others, sizeable means the segment is large enough to be profitable, stable or growing means the segment will continue to exist or grow, accessible means the segment can be reached effectively, and congruent means the segment fits with the marketer's objectives and resources. Option B covers all of these criteria.

Question 20

_______ is developing a distinct image for the product or service in the mind of the consumer that will differentiate the offering from competing ones.

Accepted Answer

Positioning involves creating a unique identity or image for a product or service in the consumer's mind, distinguishing it from its competitors. Segmentation and targeting are important steps in identifying the consumer group to serve, but positioning is the step that differentiates the product or service from others in the market. Therefore, choice C is the correct option.

Quiz 2: Market segmentation: segmenting, targeting and positioning for diverse