Question 1

Population distribution by age can be used to create approximate market segments for all products.

Accepted Answer

Population distribution by age is a useful starting point for market segmentation, but it is not sufficient for creating approximate market segments for all products, as other factors like income, interests, location, and lifestyle also significantly influence consumer behavior and preferences.

Question 2

Because some of the variables on which markets can be segmented are intangible, it is not necessary for a marketer to be able to measure how many customers are in a market segment for it to be a legitimate segment.

Accepted Answer

A legitimate market segment must be measurable, meaning the marketer should be able to quantify the number of customers within it, even if some variables are intangible.

Question 3

Micromarketing is not a marketing strategy used in the business market.

Accepted Answer

Micromarketing is indeed a marketing strategy used in the business market, focusing on tailoring products, services, and marketing efforts to suit the needs and preferences of specific niche markets or individual customers.

Question 4

By tailoring marketing programs to individual market segments, management can make more efficient use of its marketing resources.

Accepted Answer

Tailoring marketing programs to individual market segments allows for more targeted and effective marketing strategies, leading to better use of resources and potentially higher returns on investment.

Question 5

A market aggregation strategy is also known as a mass-market strategy or an undifferentiated- market strategy.

Accepted Answer

A market aggregation strategy, also known as a mass-market strategy or an undifferentiated-market strategy, involves targeting the entire market with one offer or product, ignoring segment differences.

Question 6

Demographic variables include education, occupation, life-style, personality, age, and gender.

Accepted Answer

Demographic variables typically include education, occupation, age, and gender, but lifestyle and personality are considered psychographic variables, not demographic.

Question 7

The ad for a Whirlpool stove said that it could be cleaned faster than any other stove currently on the market. This product feature would be an excellent tool for implementing a single- segment strategy.

Accepted Answer

The answer of The ad for a Whirlpool stove said...

Question 8

Unlike market potentials and sales potentials, which are estimates based on general facts and market assumptions, sales forecasts are based on a specific product's marketing plan.

Accepted Answer

Sales forecasts are indeed based on a specific product's marketing plan, incorporating detailed strategies, objectives, and actions planned for the product, making them more precise and tailored compared to market potentials and sales potentials which are broader estimates.

Question 9

Like other marketers, the marketers of pine-scented room deodorizers are most interested in reaching the segment containing nonusers.

Accepted Answer

The answer of Like other marketers, the marketers of pine-scented...

Question 10

The market for cereal could be segmented on the basis of the different benefits desired by customers, such as taste, vitamin-content, low-fat, and how it interacts with milk.

Accepted Answer

Market segmentation can be based on various factors including the benefits sought by customers, which means categorizing the market based on specific desires like taste, vitamin content, low-fat options, and how the cereal interacts with milk.

Question 11

A computer wholesale company that has some salespeople who regularly sell to small retailers and another sales force that sells to colleges and universities could be said to have segmented its market according to customer type.

Accepted Answer

Market segmentation according to customer type involves dividing the market based on the characteristics of customers, in this case, small retailers versus colleges and universities, allowing for targeted sales strategies.

Question 12

When marketers use life-style segmentation, they are looking at consumers' activities, interests, and opinions.

Accepted Answer

The answer of When marketers use life-style segmentation, they are...

Question 13

Products like sugar, heating oil, and vinyl siding are more likely to be marketed using a market aggregation strategy than are breakfast cereals, toothpaste, and automobiles.

Accepted Answer

Market aggregation strategy, also known as mass marketing, treats the entire market as a single segment, offering one product or product line and using a single marketing strategy. Products like sugar, heating oil, and vinyl siding are more homogeneous and have a broad appeal, making them suitable for this strategy. In contrast, breakfast cereals, toothpaste, and automobiles are differentiated products that cater to specific preferences and needs, making them more likely to be marketed using a market segmentation strategy, which identifies and targets distinct groups within the market.

Question 14

A market factor is simply a market index expressed as a percentage.

Accepted Answer

A market factor refers to any one of the numerous variables that can affect the performance of stocks in the stock market, not just a market index expressed as a percentage. It includes elements like economic indicators, company earnings, political events, and more.

Question 15

A multiple-segment strategy is unlikely to be used by a company that manufactures products that have seasonal demand.

Accepted Answer

A multiple-segment strategy can be beneficial for companies with seasonal products as it allows them to target different market segments at different times of the year, maximizing sales opportunities throughout the year.

Question 16

Most companies use personality segmentation because they realize compulsive people have different buying patterns than cautious ones.

Accepted Answer

The answer of Most companies use personality segmentation because they...

Question 17

The market aggregation strategy is sometimes referred to as a "shotgun"
approach to marketing because it uses one marketing mix to reach the total market.

Accepted Answer

The market aggregation strategy, also known as a mass marketing strategy, treats the entire market as a single segment, using one marketing mix (product, price, place, promotion) for the whole market, similar to a "shotgun" approach that aims to cover a wide area without focusing on specific targets.

Question 18

The advent of television has made regional segmentation obsolete.

Accepted Answer

Television has actually facilitated regional segmentation by allowing advertisers and content creators to target specific geographic areas with tailored content, thus enhancing the relevance and effectiveness of their messaging.

Question 19

Geodemographic clustering is used primarily by international marketers.

Accepted Answer

Geodemographic clustering is used by a wide range of sectors including retail, healthcare, financial services, and local government, not just by international marketers. It involves grouping people based on where they live and demographic information, and is used for targeted marketing, planning services, and resource allocation among other applications.

Question 20

A company can forecast sales by using either an internal or an external approach.

Accepted Answer

The answer of A company can forecast sales by using...

Quiz 6: Market Segmentation Targeting and Positioning