Question 1

Explain the major steps in the target marketing process.

Accepted Answer

The first step is market segmentation: dividing a market into smaller groups based on one or more meaningfully shared characteristics. Each group might require separate products or marketing mixes. The second step is targeting: evaluating each market segment's attractiveness and selecting one or more of the market segments to enter. The third step is positioning: developing a marketing strategy to influence how a target market segment perceives a good or service in comparison to the competition.

Question 2

Which of the following is NOT part of a target marketing strategy?
A) dividing the market into segments based on customer characteristics
B) identifying a market that is likely to buy a product
C) selecting one or more segments as target markets
D) developing a product to meet the needs of a specific market segment
E) positioning a product

Accepted Answer

B

Question 3

Why do marketers segment the market and use a target marketing strategy?

Accepted Answer

Marketers divide heterogeneous markets into smaller groups that can be reached more efficiently with products and services that match their unique tastes; firms focus on buyers they can serve best and most profitably.

Question 4

Marketers must balance the ________ of mass marketing with the ________ of offering each individual customer exactly what he wants.
A) efficiency; effectiveness
B) effectiveness; efficiency
C) investment; cost
D) cost; investment
E) positioning; scale

Accepted Answer

The answer of Marketers must balance the ________ of mass...

Question 5

Technological and cultural advances contribute to market fragmentation.

Accepted Answer

With advances in technology and changes in culture, consumers have more options and preferences leading to a wider array of products and services available in the market, leading to fragmentation.

Question 6

Which of the following best defines demographics?
A) statistics that can be used to segment populations on the basis of what people do with a product
B) statistics that can be used to segment populations on the basis of when people use a product
C) qualitative data that can be used to explain why seemingly homogeneous consumer groups do not share core characteristics
D) statistics that can be used to segment populations on the basis of shared attitudes, opinions, and interests
E) statistics that measure observable aspects of a population

Accepted Answer

Demographics refer to observable characteristics or statistical data of a population, such as age, gender, income, education level, occupation, etc.

Question 7

What are the steps, in order, of the target marketing process?
A) segmentation, positioning, and targeting
B) segmentation, targeting, and positioning
C) targeting, segmentation, and positioning
D) targeting, positioning, and segmentation
E) positioning, segmentation, and targeting

Accepted Answer

The correct order of the target marketing process is segmentation, targeting, and positioning. This involves dividing the market into smaller segments, selecting the most suitable segments to target, and then developing a marketing mix to meet the needs and preferences of the chosen target segment.

Question 8

Age, gender, place of residence, and income are all examples of ________.
A) segmentation variables
B) positioning strategies
C) market fragment strategies
D) psychographics
E) targeting strategies

Accepted Answer

Age, gender, place of residence, and income are all examples of segmentation variables, which are used to divide a market into smaller groups of consumers with similar needs or characteristics. This allows companies to create better targeted marketing strategies and messaging for each segment.

Question 9

Which of the following is the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics?
A) acculturation
B) segmentation
C) market fragmentation
D) targeting
E) positioning

Accepted Answer

Segmentation is the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics. Acculturation refers to the process of adapting to a new culture. Market fragmentation refers to the phenomenon where markets become increasingly specialized and diverse over time, making it more difficult to identify homogeneous groups of consumers. Targeting is the process of selecting which segments to focus on with marketing efforts. Positioning refers to how a brand is perceived in the minds of consumers relative to its competitors.

Question 10

Which of the following best describes the market segment referred to as the bottom of the pyramid (BOP)?
A) a national segment of lower income consumers
B) a national segment of non-native language speakers
C) a national segment of individuals with a high-school only education
D) a global segment of consumers who earn less than $2 per day
E) a global segment of children in lower income families

Accepted Answer

The bottom of the pyramid (BOP) refers to a global segment of consumers who earn less than $2 per day. This segment comprises the poorest people in the world, mainly in developing countries. They have very limited purchasing power and are often overlooked by traditional marketers.

Question 11

Which of the following is NOT an example of a demographic segmentation variable?
A) lifestyle
B) income
C) ethnic group
D) gender
E) age

Accepted Answer

Lifestyle is not a demographic segmentation variable. Demographic segmentation variables are factors such as age, gender, income, ethnicity, education, and occupation that are used to divide a population into smaller groups based on shared characteristics. Lifestyle is a psychographic segmentation variable, which involves dividing a market based on personality, values, interests, and attitudes.

Question 12

Marketers often use generational marketing because members of a generation tend to share the same ________.
A) lifestyle
B) income and social class
C) outlook and priorities
D) psychographics and usage patterns
E) geodemographics

Accepted Answer

Generational marketing is based on the idea that members of the same generation tend to share similar outlooks, values, and priorities. This means that marketers can tailor their messaging and offerings to appeal to the specific interests and needs of a particular generation. While factors such as income, lifestyle, and usage patterns may also be important for targeting specific groups, generational marketing is primarily focused on understanding and appealing to the unique characteristics of each generation.

Question 13

The direct cause of market fragmentation is the large number of new technological products introduced annually.

Accepted Answer

Market fragmentation is primarily caused by the diversity of consumer preferences and needs, not solely by the introduction of new technological products.

Question 14

People's diverse interests and backgrounds divide them into numerous groups with distinct needs and wants, a condition most accurately described as ________.
A) market aggregation
B) market positioning
C) economic aggregation
D) differentiation
E) market fragmentation

Accepted Answer

Market fragmentation refers to the division of the market into smaller groups with distinct needs and wants based on people's diverse interests and backgrounds. It creates challenges and opportunities for businesses to cater to specific target markets and offer personalized products and services. Market aggregation (A) refers to combining similar market segments into a larger group for marketing purposes. Market positioning (B) is the process of establishing a distinctive image and reputation for a brand in the minds of consumers. Economic aggregation (C) is a concept in economics that refers to combining economic data for a region or country to analyze its performance. Differentiation (D) is a marketing strategy that involves creating a unique value proposition for a product or service to stand out from competitors.

Question 15

Some people want healthy cereal that will help them lose weight or possibly prevent certain kinds of cancer. Some want presweetened cereal. Some want fruits and nuts in their cereal. Some people want whole wheat cereal while others want rice cereal. There are some who like hot cereal and others who like to eat their cereal right out of the box. The diversity of consumers for cereal is an example of ________.
A) geodemography
B) target marketing
C) cultural diversity
D) psychographics
E) market fragmentation

Accepted Answer

The diversity of consumers for cereal is an example of market fragmentation, where the market is divided into subgroups with distinct and specific needs and preferences. This indicates that the cereal market is not homogeneous, and therefore requires different product offerings to satisfy the different segments.

Question 16

A mass marketing approach involves more advertising costs than a target marketing approach does.

Accepted Answer

The answer of A mass marketing approach involves more advertising...

Question 17

What is market fragmentation? Why is market fragmentation of concern to marketers?

Accepted Answer

The answer of What is market fragmentation? Why is market...

Question 18

The group of American consumers born after 1994 is often called ________.
A) Millennials
B) Generation Y
C) Generation X
D) busters
E) Generation Z

Accepted Answer

This group is commonly referred to as Generation Z, born between 1995 and 2010, following Generation Y or the Millennials who were born between 1981 and 1994. The term "busters" is not commonly used to refer to any generational group. Generation X refers to those born between 1965 and 1980.

Question 19

Which of the following groups are referred to as Digital Natives and grew up during the "Great Recession"?
A) Millennials
B) Generation Y
C) Generation X
D) busters
E) Generation Z

Accepted Answer

Generation Z is the group referred to as Digital Natives and grew up during the "Great Recession." They were born between the mid-1990s to the mid-2000s, making them the youngest generation currently in the workforce.

Question 20

Which of the following statements about the steps in the target marketing process is true?
A) The first step in the target marketing process is setting marketing objectives.
B) There are four steps in the target marketing process.
C) The second step in the target marketing process is the identification of all segmentation variables.
D) The final step in the target marketing process is positioning.
E) The target marketing process is not related to positioning.

Accepted Answer

The final step in the target marketing process is positioning, which involves developing a unique marketing mix to influence potential customers' perceptions of a brand or product compared to competitors. The other steps in the process include segmentation, targeting, and differentiation.

Quiz 7: Segmentation, Target Marketing, and Positioning

Explain the major steps in the target marketing process.

Which of the following is NOT part of a target marketing strategy?

Why do marketers segment the market and use a target marketing strategy?

Marketers must balance the of mass marketing with the of offering each individual customer exactly what he wants.

Technological and cultural advances contribute to market fragmentation.

Which of the following best defines demographics?

What are the steps, in order, of the target marketing process?

Age, gender, place of residence, and income are all examples of ________.

Which of the following is the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics?

Which of the following best describes the market segment referred to as the bottom of the pyramid (BOP) ?

Which of the following is NOT an example of a demographic segmentation variable?

Marketers often use generational marketing because members of a generation tend to share the same ________.

The direct cause of market fragmentation is the large number of new technological products introduced annually.

People's diverse interests and backgrounds divide them into numerous groups with distinct needs and wants, a condition most accurately described as ________.

A mass marketing approach involves more advertising costs than a target marketing approach does.

What is market fragmentation? Why is market fragmentation of concern to marketers?

The group of American consumers born after 1994 is often called ________.

Which of the following groups are referred to as Digital Natives and grew up during the "Great Recession"?

Which of the following statements about the steps in the target marketing process is true?