Question 1

Marketing-oriented managers see segmenting as a process of aggregating people with similar needs into a group.

Accepted Answer

Marketing-oriented managers think of segmenting as an aggregating process-clustering people with similar needs into a "market segment."

Question 2

Market segmentation is a two-step process that involves naming broad product-markets and segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.

Accepted Answer

Market segmentation is a two-step process of (1) naming broad product-markets and (2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.

Question 3

The correct number of submarkets in a broad product-market is usually obvious, so the likelihood of managerial error is small.

Accepted Answer

Under broad product-market, a segmenter may aggregate submarkets into arbitrary numbers which are relatively homogeneous.

Question 4

Market segmentation says that target marketers should develop one good marketing mix aimed at a fairly large market.

Accepted Answer

Market segmentation deals with segmenting broad product-markets in order to select target markets and develop suitable marketing mixes.

Question 5

Using one or two demographic dimensions to describe market segments usually does not provide enough detail for planning a marketing strategy.

Accepted Answer

Market segmentation is usually too complex to be explained in terms of just one or two demographic characteristics.

Question 6

A firm's "relevant market for finding opportunities" should be bigger than the present product-market but not so large that it couldn't expand and still be an important competitor.

Accepted Answer

The relevant market for finding opportunities should be bigger than the firm's present product-market-but not so big that the firm couldn't expand and be an important competitor.

Question 7

A product-market is a market with broadly similar needs-and sellers offering various, often diverse, ways of satisfying those needs.

Accepted Answer

A product-market is a market with very similar needs and sellers offering various close substitute ways of satisfying those needs.

Question 8

A generic market description includes customer needs and product-type terms.

Accepted Answer

A generic market description doesn't include any product-type terms. It consists of only three parts of the product-market definition-without the product type.

Question 9

A "generic market" is a market in which sellers offer substitute products which are so similar that customers see them as "all the same."

Accepted Answer

A generic market is a market with broadly similar needs-and sellers offering various, often diverse, ways of satisfying those needs.

Question 10

One of the difficult things about segmenting is that not every customer will neatly fit into some market segment.

Accepted Answer

The difficulty with segmenting is that some potential customers just don't fit neatly into market segments. Forcing them into one of the groups would make these segments more heterogeneous and harder to please.

Question 11

A market is a group of competitors selling similar products.

Accepted Answer

A market is a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services.

Question 12

Marketing-oriented managers think of segmenting as a disaggregating process.

Accepted Answer

Marketing-oriented managers think of segmenting as an aggregating process.

Question 13

A market is a group of two or more sellers who offer substitute ways of satisfying customer needs.

Accepted Answer

A market is a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services-that is, ways of satisfying those needs.

Question 14

Effective market segmentation is a two-step process that starts with naming broad product-markets and then goes on to segmenting these broad product-markets into more homogeneous submarkets.

Accepted Answer

Market segmentation is a two-step process of (1) naming broad product-markets and (2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.

Question 15

Product type describes the goods and/or services that customers want.

Accepted Answer

Product type describes the goods and/or services that customers want. Sometimes the product type is strictly a physical good or strictly a service.

Question 16

The main difference between a "product-market" and a "generic market" is whether customer needs are similar or different.

Accepted Answer

A generic market is a market with broadly similar needs-and sellers offering various, often diverse, ways of satisfying those needs. In contrast, a product-market is a market with very similar needs and sellers offering various close substitute ways of satisfying those needs.

Question 17

A "good" market segment should be composed of people who are as homogeneous as possible with respect to their likely responses to marketing mix variables.

Accepted Answer

The customers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions.

Question 18

Ideally, segmenters should start with the idea that each person is "one of a kind" and can be described by a special set of dimensions that may be used to aggregate similar customers together.

Accepted Answer

Segmenters start with the idea that each person is one of a kind but that it may be possible to aggregate some similar people into a product-market. Segmenters see each of these one-of-a-kind people as having a unique set of dimensions.

Question 19

A generic market description looks at market broadly and from a customer's viewpoint.

Accepted Answer

A generic market description looks at markets broadly and from a customer's viewpoint.

Question 20

The definition of a product-market includes a product type while the definition of a generic market does not include a product type.

Accepted Answer

Product-market definition includes product type that describes the goods and/or services that customers want whereas a generic market definition doesn't include any product-type terms.

Quiz 4: Focusing Marketing Strategy With Segmentation and Positioning