Question 1

The method by which whole markets are subdivided into different segments to allocate marketing programme activity is referred to as:
A) the PESTLE process
B) the DAMP process
C) the SWOT process
D) the STP process

Accepted Answer

The STP process stands for Segmentation, Targeting, and Positioning, which is a strategy in marketing that involves dividing a broad market into subsets of consumers who have common needs and priorities, and then designing and implementing strategies to target them.

Question 2

Marketing segmentation is:
A) the process of dividing the total market into several heterogeneous groups.
B) the process of bringing several small, unreachable segments into a definable market segment.
C) an attempt to reach all consumers with a single marketing mix.
D) practised by both profit-oriented and not-for-profit organizations.

Accepted Answer

Marketing segmentation is used by both profit-oriented and not-for-profit organizations to target specific groups effectively.

Question 3

Whilst market segmentation is a useful process for organizations to divide customers into distinct groups for resource allocation purposes, it has been criticized for the following reasons except:
A) It is clear how valuable segmentation is to managers.
B) The process approximates offerings to the needs of customer groups, rather than individuals.
C) There is insufficient consideration of how market segmentation is linked to competitive advantage.
D) It is not clear how valuable segmentation is to managers.

Accepted Answer

Market segmentation is generally considered valuable to managers because it helps in targeting and positioning strategies, making it easier to tailor products and marketing efforts to specific groups. This is why the criticism that it is not clear how valuable segmentation is to managers (D) is not valid, making A the correct choice as it is presented as an exception to criticisms.

Question 4

An example of a segmented market would be:
A) Honda separating its potential customers into economy car buyers and luxury car buyers.
B) a garden nursery seeing residents of urban areas and rural areas as one market needing trees.
C) high-income and low-income consumers being treated the same at Marks and Spencer (M&S).
D) Phillips marketing its product to all residents of the European Union with one marketing mix based on the concept 'Sense and Sensibility'.

Accepted Answer

The answer of An example of a segmented market would...

Question 5

Using the family lifecycle concept, which of the following items would be least likely to be marketed to a young single working adult who is still living at home?
A) A recently released portable music device (e.g. Apple iPod).
B) The latest trends in fashion clothing.
C) A new top of the range seven-seater people carrier.
D) A high-end home entertainment centre.

Accepted Answer

A young single working adult still living at home is less likely to have a need for a seven-seater people carrier, which is typically marketed towards larger families or those with significant passenger transport needs. Portable music devices, fashion clothing, and home entertainment centers are more aligned with the interests and lifestyle of young single adults.

Question 6

Key variables concern age, sex/gender or gender identity, occupation, level of education, religion, social class, and income characteristics. This is _______ ___ segmentation criterion.
A) demographic
B) lifestage
C) psychographic
D) income

Accepted Answer

Demographic segmentation criteria include variables such as age, gender, occupation, education level, religion, social class, and income, which are used to categorize consumers for targeted marketing strategies.

Question 7

'Positioning is the means by which goods and services can be differentiated from one another and so give consumers a reason to buy'. Positioning encompasses:
A) the physical attributes and the functionality that a brand offers.
B) how customers perceive the brand relative to other competing brands in the market place.
C) the intangible attributes that a brand offers. For example, the reputation, prestige and allure that the brand generates.
D) all of the above options are correct.

Accepted Answer

Positioning involves differentiating a brand in the market through various means, including its physical attributes and functionality (A), how customers perceive it compared to competitors (B), and its intangible attributes like reputation and prestige (C). Therefore, all the options collectively describe aspects of positioning.

Question 8

____________ can be used to position brands either functionally or expressively.
A) Marketing communications
B) Marketing planning
C) Marketing research
D) Marketing orientation

Accepted Answer

Marketing communications include advertising, sales promotions, events and experiences, public relations, and direct marketing, all of which can be used to position brands either functionally (highlighting features, benefits, and performance) or expressively (focusing on the brand's image, values, and personality).

Question 9

Marketing communications can be used in one of two main ways to position brands, namely to position a brand either functionally or expressively (symbolically). Examples of expressive positioning strategies include:
A) positioning based on the product or brands price.
B) positioning based on the product or brands features.
C) positioning based on the use of products.
D) positioning based on the product or brand heritage.

Accepted Answer

The answer of Marketing communications can be used in one...

Question 10

A customized targeting strategy predominates in B2B markets (e.g. marketing research or advertising services) or consumer markets with high-value, highly customized products (e.g. purchase of a custom-made car).

Accepted Answer

In B2B markets and consumer markets with high-value, highly customized products, a customized targeting strategy is more effective because it allows businesses to address the specific needs, preferences, and challenges of individual customers or client organizations, leading to more successful marketing outcomes.

Question 11

Standard Industrial Classification (SIC) codes are used to designate similar industrial markets.

Accepted Answer

The answer of Standard Industrial Classification (SIC) codes are used...

Question 12

The method by which whole markets are subdivided into different segments is referred to as the STP process. This stands for Segmenting, Testing and Positioning.

Accepted Answer

STP stands for Segmenting, Targeting, and Positioning, not Testing.

Question 13

To segment consumer markets, markets can be classified according to behavioural, psychological and profile criteria. Demographic data is an example of psychological criteria for segmentation.

Accepted Answer

Demographic data is an example of profile criteria, not psychological criteria, for market segmentation.

Question 14

The benefits sought approach is based on the principle that we should provide customers with exactly what they want, based on the benefits derived from using a particular proposition.

Accepted Answer

The benefits sought approach focuses on understanding and delivering the specific benefits that customers seek from a product or service, aligning offerings with customer desires and needs.

Question 15

Organizational characteristics, such as organizational size and location, are sometimes referred to as firmographics.

Accepted Answer

Firmographics are attributes used to categorize organizations, similar to demographics for individuals, and include factors like size and location.

Question 16

A concentrated marketing strategy (or niche marketing strategy) is used where there are only a few market segments.

Accepted Answer

A concentrated marketing strategy focuses on targeting a specific, well-defined segment of the market, often when there are only a few segments to choose from.

Question 17

Perceptual mapping data reveal strengths and weaknesses that can help management to make strategic decisions about how to differentiate based on the attributes that matter the most to customers.

Accepted Answer

Perceptual mapping visually displays the perceptions of customers, helping management identify areas of strength and weakness relative to competitors, which can inform strategic differentiation decisions.

Question 18

Mainstream brands tend to spring to mind when consumers think of the category.

Accepted Answer

Mainstream brands are often more recognizable and have greater market presence, making them more likely to be top-of-mind for consumers when thinking of a product category.

Question 19

This is the division of a market into different groups of customers with distinctly similar needs and offering requirements.
A) Targeting
B) Segregation
C) Segmentation
D) Breakdown

Accepted Answer

Market segmentation is the process of dividing a market into distinct groups of customers with similar needs and characteristics.

Question 20

The ________ is customer-oriented, seeking to determine common customer needs and to identify market segments between which identifiable differences exist-segment heterogeneity-but within which similarities exist between members-member homogeneity.
A) market segmentation
B) breakdown method.
C) build-up method.
D) business markets.

Accepted Answer

The build-up method is customer-oriented, focusing on identifying market segments with internal similarities and external differences.

Quiz 8: Market Segmentation and Positioning

The method by which whole markets are subdivided into different segments to allocate marketing programme activity is referred to as:

Marketing segmentation is:

Whilst market segmentation is a useful process for organizations to divide customers into distinct groups for resource allocation purposes, it has been criticized for the following reasons except:

An example of a segmented market would be:

Using the family lifecycle concept, which of the following items would be least likely to be marketed to a young single working adult who is still living at home?

Key variables concern age, sex/gender or gender identity, occupation, level of education, religion, social class, and income characteristics. This is _____ _ segmentation criterion.

'Positioning is the means by which goods and services can be differentiated from one another and so give consumers a reason to buy'. Positioning encompasses:

____________ can be used to position brands either functionally or expressively.

Marketing communications can be used in one of two main ways to position brands, namely to position a brand either functionally or expressively (symbolically) . Examples of expressive positioning strategies include: