Question 1

Identify and explain the five criteria for effective targeting of market segments.
-1. Identification 
2. Sufficiency
3. Stability
4. Accessibility
5. Congruent with the company's objectives and resources

Accepted Answer

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Question 2

User-related segmentation is a popular and effective form of segmentation that categorises consumers in terms of their personality traits and characteristics.

Accepted Answer

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Question 3

It is unlikely in hybrid segmentation for marketers to combine the use of demographic segmentation with psychographic segmentation.

Accepted Answer

In hybrid segmentation, marketers often combine different segmentation methods, including demographic and psychographic segmentation, to better understand and target their audience.

Question 4

Benefit (or needs-based) segmentation requires finding the major benefits people look for in the product class, the kinds of people who look for each benefit and the brands that deliver each benefit.

Accepted Answer

Benefit segmentation focuses on identifying the major benefits consumers seek from a product class, the types of consumers who value each benefit, and the brands that deliver those benefits. Therefore, the statement is true.

Question 5

Sociocultural segmentation studies employ a battery of statements designed to identify relevant aspects of a consumer's personality, buying motives, interests, attitudes, beliefs and values.

Accepted Answer

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Question 6

If a company is new and has not had many financial successes yet, a differentiation strategy would be better.

Accepted Answer

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Question 7

Segmenting a market based on social class is not logical as consumers from different social classes never vary in terms of values, product preferences and buying habits.

Accepted Answer

Social class can be a relevant factor in segmenting a market as consumers from different social classes may have distinct values, aspirations, buying behaviors and preferences for certain products or brands. Such differences can be important for marketers to consider when developing and communicating their marketing strategies. However, it is important to note that other criteria such as age, gender, income, lifestyle, and psychographics may also be useful in segmenting a market, and that individuals within the same social class may have varying needs and preferences.

Question 8

Concentrated marketing is also appropriate for the latter stages of the product life cycle when the product is being purchased by increasingly smaller numbers of consumers and is being phased out.

Accepted Answer

Concentrated marketing focuses on a specific segment of consumers, which can be appropriate in the latter stages of the product life cycle when the product is being purchased by a smaller number of consumers. This strategy can help a company maximize its resources and target the remaining potential customers.

Question 9

Segmentation based on income alone is sufficient because marketers feel it is a strong indicator of the ability (or inability) to pay for a product (or brand) or a specific model of a product.

Accepted Answer

Segmentation based on income alone is not sufficient as there are other factors such as lifestyle, demographics, behavior, and psychographics that also play a significant role in determining a person's ability and willingness to pay for a product or brand. Therefore, a more comprehensive approach to segmentation is required.

Question 10

Within the VALS framework, the segment of achievement includes consumers who desire social or physical activity, variety or risk.

Accepted Answer

The VALS framework's Achievers segment is characterized by consumers who are goal-oriented and deeply value consistency and stability, rather than seeking social or physical activity, variety, or risk.

Question 11

Behavioural targeting is likely to be employed by businesses who are taking a countersegmentation strategy.

Accepted Answer

Behavioral targeting is a strategy used to segment consumers based on their behavior online, such as past purchases or websites visited, which is the opposite of a countersegmentation strategy that involves combining market segments to offer a single product or service to a larger audience.

Question 12

In some cases, businesses are in a position where they need to discover and seek a more generic consumer need and therefore adopt a countersegmentation strategy.

Accepted Answer

Countersegmentation strategy involves targeting a broader and more generic consumer base instead of focusing on niche segments. This may be necessary for businesses that are unable to find profitable niches or wish to expand their customer base.

Question 13

Geodemographic segmentation is most useful when advertisers' best prospects (in terms of affluence, available time, goals and interests) can be isolated in terms of where they live.

Accepted Answer

Geodemographic segmentation is a marketing strategy that involves dividing a population based on where they live and their demographic characteristics. This method is useful when advertisers want to identify potential customers who are most likely to be interested in their product or service based on their income, lifestyle, and other social factors. By analyzing data about a particular region or community, advertisers can target their marketing campaigns to reach the most receptive audience. Therefore, geodemographic segmentation is most effective when advertisers can accurately identify their best prospects based on their location and other demographic information.

Question 14

As a basis for segmentation, social class is determined by the three variables of income, education and suburb.

Accepted Answer

Social class is typically determined by income, education, and occupation, not suburb.

Question 15

What is market segmentation, how is it different from mass marketing and why is market segmentation important?

Accepted Answer

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Question 16

Many providers of microtargeting claim to have developed 'formulas' (or propriety algorithms) that assign consumers into groups in a way that enables marketers to predict the impact of the messages sent.

Accepted Answer

Many providers of microtargeting do indeed claim to have developed proprietary algorithms that assign consumers into groups and enable marketers to predict the impact of their messages.

Question 17

Concentrated marketing and differentiated marketing are two terms which describe the same strategy.

Accepted Answer

Concentrated marketing focuses on a single market segment, while differentiated marketing targets multiple segments with different marketing strategies tailored to each. Therefore, they are not the same strategy.

Question 18

VALS is a framework which helps marketers measure demographic information which includes variables such as a consumer's gender, age or occupation.

Accepted Answer

VALS is a framework which helps marketers identify psychographic information about consumers such as their values, beliefs, and lifestyle. It does not focus on demographic information like gender or age.

Question 19

Segmenting consumers based on their motivations, personality, perceptions, learning, level of involvement or attitudes is part of psychological segmentation.

Accepted Answer

Psychological segmentation involves segmenting consumers based on their psychological characteristics such as motivations, personality, perceptions, learning, level of involvement, or attitudes.

Question 20

Psychographic segmentation has lost popularity among marketers as it does not provide marketers with enough detail about the market segment they wish to target.

Accepted Answer

This statement is not entirely true as psychographic segmentation can provide in-depth details about the attitudes, values, interests, and lifestyles of a market segment. However, it may not always be the best approach for all marketing strategies, and some marketers may utilize other segmentation methods depending on their specific goals and target audience.

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

Identify and explain the five criteria for effective targeting of market segments. -1. Identification 2. Sufficiency 3. Stability 4. Accessibility 5. Congruent with the company's objectives and resources