To be useful market segments must have as one of their characteristics the ability to be measured

Market Segmentation, Targeting, and Positioning For Competitive Advantage (Part 2)

Multiple Choice Questions

NOTE: The answers are boldly marked.

1. All of the following would be ways to segment within the category of behavioral variable segmentation

:

d.      lifestyle.

2. _______________ factors are the most popular bases for segmenting customer groups.

b.      Demographic

3. _________________ factors or variables are generally easier to measure than most of the other types of variables or factors.

b.      Demographic

4. Age is often a poor predictor of a person’s life-cycle, health, work, or family status.

Therefore, when using age and life-cycle segmentation, the marketer must guard against:

a.      stereotyping.

5. Proctor & Gamble joined a growing list of marketers who use __________ segmentation when they developed Secret, a brand specially formulated for a woman’s chemistry.

d.      gender

6. All of the following Web sites would be examples of sites wishing to make gender segmentation appeals as their primary marketing segmentation strategy

:

d.      www.neimanmarcus.com

7. ___________________ is the process of dividing a market into different groups based on social class, lifestyle, or personality characteristics.

b.   Behavioral segmentation

c.   Psychological segmentation

d.   Psychographic segmentation

8. Many marketers believe that ________________ are the best starting point for building market segments and programs.

a.      behavioral variables

d.      psychographic variables

9. “Coke in the morning” is an attempt to segment according to which of the following?

b.      psychographic segmentation

d.      occasion segmentation

10. The orange juice manufacturers know that orange juice is most often consumed in the mornings.  However, they would like to change this and make the drink acceptable for other time periods during the day.  Which form of segmentation would they need to work with to establish a strategy reflective of their desires?

c.       occasion segmentation

d.      age and life-cycle segmentation

11. When companies market products on the basis of what the product’s attributes will do for a given segment of consumers, they are using a powerful form of behavioral segmentation known as:

a.       occasion segmentation.

b.      benefit segmentation.

c.       user status segmentation.

d.      usage rate segmentation.

12. If people that take cruise ship vacations do so because of “gambling,” “fun,” or “for adventure or educational purposes,” then it is possible to segment this market based on what might be called:

a.       psychographic segmentation.

b.      benefit segmentation.

c.       demographic segmentation.

13. A marketing firm classifies customers as nonusers, ex-users, potential users, first-time users, and regular users. Which of the following classifications is the firm most likely using to segment its market and devise strategies for selling its products and services?

a.      user status

14. One of the most promising developments in multivariable segmentation is called _________________, where a host of demographic and socioeconomic factors are used.

a.   terragraphic segmentation

b.   fermagraphic segmentation

c.   geothermal segmentation

d.   geodemographic segmentation

15. All of the following are

that can be used to segment business markets

     EXCEPT:

a.       operating characteristics.

b.      psychographics.

16. ____________________ is forming segments of consumers who have similar needs and buying behavior even though they are located in different countries.

b.   International segmentation

c.   Intermarket segmentation

17. When Mercedes-Benz targets the world’s well-to-do, regardless of their country, they are most likely following a segmentation strategy called:

a.       external segmentation.

b.      international segmentation.

c.       enriched segmentation.

d.      intermarket segmentation.

18. Clearly, there are many ways to segment markets.  However, not all segmentations are effective or successful.  To be useful, market segments must have all the following characteristics

being:

b.      plausible.

19. It is a fact that there are 32.5 million left-handed people in the United States. However, most marketers do not attempt to appeal to or design products for this group because there is little in the way of census data about this group.  Therefore, this group fails in one of the requirements for effective segmentation.  Which of the following is most likely to apply in this case?

d.      measurable

20. Knowing the size, purchasing power, and profiles of a market segment are all part of which of the following characteristics?

b.      measurability

21. The ability to reach and serve a market segment defines the characteristic of:

c.       accessibility.

22. Married and unmarried women may use the same perfume, and might respond in a similar way to promotional sales of this fragrance.  It might, therefore, be difficult to consider that marital status designates separate segments in this case.  Which of the following requirements of effective segmentation would probably rule out segmentation based on marital status in this case?

c.       differentiable

23. Stephanie Cross has a small clothing store, and has identified seven separate categories of clothing buyers that form the general market for clothing stores in her city.  Her problem is that because of a limited advertising budget, she cannot effectively reach these various segments (especially since several of the segments are distant from her store). Which of the following requirements of effective segmentation would probably rule out segmentation based on Stephanie’s current segmentation classification scheme?

a.      actionable

24. In market targeting, a firm looks at all of the following factors

:

a.       segment size and growth.

b.      segment structural attractiveness.

c.       company objectives and resources.

d.      segment public relations value.

25. All of the following factors can affect the attractiveness of a market segment

a.       the presence of many strong and aggressive competitors.

b.      the likelihood of government monitoring.

c.       actual or potential substitute products.

d.      the power of buyers in the segment.

26. A(n) __________________ is a set of buyers sharing common needs or characteristics that the company decides to serve.

a.       undifferentiated market

c.       target market

27. A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer is called:

a.      undifferentiated marketing.

b.      differentiated marketing.

c.       concentrated marketing.

28. Deciding to target several market segments and design separate offers for each is called:

a.       undifferentiated marketing.

b.      differentiated marketing.

c.       concentrated marketing.

29. A growing number of firms have adopted differentiated marketing.  However, one drawback to this approach is that it:

a.       is hard for managers to understand.

b.      increases the costs of doing business.

c.       alerts competitors as to your strategy.

d.      is a poor strategy internationally.

30. The practice of going after a large share of a smaller market or subsets of a few markets is called:

a.       undifferentiated marketing.

b.      differentiated marketing.

c.       concentrated marketing.

What characteristics must market segments have in order to be useful?

What are 4 characteristics of effective market segmentation?

How do you measure market segments?

What are the 3 factors in evaluating the market segment?