Question 1

Targeting children in advertising and communication is the subject of some criticism as it may encourage them to use _______ power to encourage their parents to buy products and services.

Accepted Answer

The use of the word "pester" suggests that children may use persistent and annoying tactics to convince their parents to buy products or services, which can be a negative consequence of targeting them in advertising and communication. The other options are also potentially negative outcomes, but are not specifically suggested by the use of the word "pester."

Question 2

A segment must be accessible. This means that the company must be able to formulate marketing programmes for the _______ that it identifies.

Accepted Answer

The sentence states that the company must be able to formulate marketing programmes for the "segments" that it identifies. Therefore, the correct choice is D - segments. A, B, and C are not applicable in this context.

Question 3

Those _______ of targeting children via marketing argue that children should be exposed to marketing communication as part of their education because we live in a consumer society and children need to understand marketing.

Accepted Answer

The sentence presents an argument in favor of targeting children via marketing, implying that the blank requires a phrase or a word that conveys support for this idea. "In favor" best fits this description.

Question 4

A good segment must be _______. This means that it must be possible to identify customers in the proposed segment and to understand their characteristics and behavioural patterns.

Accepted Answer

A good segment must be measurable, meaning it must be possible to identify customers in the proposed segment and understand their characteristics and behavioral patterns. Effectiveness, clarity, and consistency may also be important factors, but they are not directly related to the measurability of a segment.

Question 5

Five criteria are considered important when determining whether a company has properly segmented its market i.e. are the segments actionable, accessible, profitable, measurable and _______.

Accepted Answer

The missing criterion is "effective", which means that the segments should be substantial, reachable, and responsive to marketing efforts. The other criteria (actionable, accessible, profitable, and measurable) are also important for successful segmentation, but "effective" is the missing term in the list. Therefore, option D is the correct answer.

Question 6

Critics argue that marketers' targeting of children can lead to the perpetuation of _______ regarding appropriate behaviour, careers etc. for boys and girls.

Accepted Answer

Critics argue that marketing targeting children can perpetuate gender stereotypes, which can limit children's perceptions of appropriate behavior and career choices for boys and girls.

Question 7

Which of the following characteristics do marketers use in evaluating the effectiveness of different segments?

Accepted Answer

Measurability is essential to evaluate the effectiveness of different segments. Accessibility refers to the ease of reaching the segment with marketing efforts. Actionability refers to the feasibility of developing tailored marketing strategies for the segment. Profitability refers to the potential profitability of the segment for the business. So, options A, C, and D are incorrect.

Question 8

Which of the following is a concern regarding marketing's targeting of children?

Accepted Answer

All of the options are valid concerns regarding marketing's targeting of children. The promotion of materialism and the perpetuation of stereotypes can have negative effects on children's development, while the use of pester power tactics can put pressure on parents to purchase products their children may not need or want.

Question 9

"The identification of individuals or organizations with _______characteristics that have significant implications for the determination of marketing strategy is called market segmentation". Which of the following words is missing from the above sentence?

Accepted Answer

Market segmentation involves grouping individuals or organizations based on similar characteristics that are relevant for marketing strategies, allowing for targeted marketing efforts.

Question 10

To determine whether a company has properly segmented its markets, five criteria are usually considered - are the segments effective, measurable, accessible, actionable and _______.

Accepted Answer

The five criteria for effective market segmentation are: effectiveness, measurability, accessibility, actionability, and profitability. The last criterion is profitability, which means that the segments must be economically viable and generate sufficient revenues to justify the cost of serving them. Therefore, the best choice is D) profitable.

Question 11

Which of the following is a benefit of segmentation?

Accepted Answer

Segmentation allows for customized marketing approaches that are more effective in attracting and retaining customers. By better understanding customer needs and preferences, businesses can tailor their products, services, and messaging to specific segments. This results in a higher likelihood of conversion and repeat business, leading to enhanced profitability.

Question 12

Marketing efforts to target children has been the subject of criticism as they employ the skills of child _______ to devise ways to reach inside their developing minds and implant brand preferences.

Accepted Answer

Psychologists study the human mind and behavior, including the development of children's minds, making them the best choice for devising marketing strategies aimed at children.

Question 13

Segments must be large enough to be _______ to serve. There must be a gap in the market that will allow the company to earn a return.

Accepted Answer

For a company to select a segment, it is important that the segment is profitable enough to serve, meaning that the company can earn a return. Therefore, the best choice is C - profitable.

Question 14

Effective segmentation requires that segments should consist of customers whose needs are relatively _______ within a segment, but significantly different from those in other segments.

Accepted Answer

Effective segmentation requires customers within a segment to have relatively homogeneous needs, which means they are more similar to each other than to customers in other segments. This helps companies tailor their marketing messages and strategies to meet the specific needs of a particular segment, resulting in better customer satisfaction and increased revenue. Heterogeneous needs within a segment would make it difficult to develop targeted marketing approaches. Option C and D do not accurately describe the concept of effective segmentation.

Question 15

Segmentation is effective when buyer needs in different segments are similar.

Accepted Answer

Segmentation is effective when buyer needs in different segments are distinct and different from each other. If the needs are similar, then targeting different segments may not result in significant benefits.

Question 16

Which of the following are the three broad groups of consumer segmentation criteria?

Accepted Answer

Behavioural, psychographic and profile variables are the three broad groups of consumer segmentation criteria.

Question 17

Even though a company may identify a segment as a very attractive one, the company may decide that the segment is not _______ as they don't have the resources to exploit this opportunity.

Accepted Answer

A segment is considered actionable if the company has the resources and capability to effectively target and serve it. If a company lacks these resources, the segment is not actionable for them.

Question 18

Not all small segments in the marketplace are unprofitable to serve. Advances in production and distribution technologies mean that micro-segments can also be profitable.

Accepted Answer

With advancements in technology and the ability to reach niche markets through targeted advertising and e-commerce, even small segments can be profitable to serve. Companies can leverage economies of scale to produce customized products at a low cost, making it possible to cater to micro-segments without sacrificing profitability.

Question 19

What is the purpose of segmentation?

Accepted Answer

The purpose of segmentation is to group consumers based on their characteristics and behaviors so that marketers can tailor their marketing mix to each group. By identifying the differences in behavior between the segments, marketers can make informed decisions about how to reach and persuade each segment. This leads to more effective marketing strategies and ultimately, increased profitability. Options B, C, and D are all part of the overall goal of segmentation but do not fully capture its purpose.

Question 20

To implement the marketing concept and successfully satisfy customer needs, companies need to provide which of the following?

Accepted Answer

The marketing concept is about identifying and meeting the needs and wants of customers. Therefore, providing different product and service offerings to the diverse customer groups that typically comprise a market is the best way to satisfy customer needs. Cheaper prices or technologically superior offerings may be beneficial, but they are not the primary focus of the marketing concept.

Quiz 5: Market Segmentation, Targeting and Positioning