Deck 13: Differentiation, Segmentation, and Target Marketing

Question 1

A customer likes playing golf. This is a basis for segmentation.

A) Geographic
B) Demographic
C) Monetary
D) Psychographic

Answer 1

D

Question 2

Differentiation forms the basis of strategy.

A) Positioning
B) Marketing
C) Sales
D) Branding

Answer 2

A

Question 3

Product differentiation can be defined as:

A) Perceived difference in a product
B) Tangible difference in a product
C) Intangible difference in a product
D) A product being superior to the competition

Answer 3

A

Question 4

When a product reaches commodity status:

A) The product should be differentiated by marketing
B) Amenities should be added to achieve differentiation
C) The product should be scrapped for a new one
D) The organization should work on turning the product into a tangible product

Question 5

Differentiation is mainly about perceptions of your product.

Question 6

A customer's annual income is considered a variable.

A) Demographic
B) Psychographic
C) Monetary
D) Geographic

Question 7

Differentiation helps create customer awareness.

Question 8

A market segment is a group of people that are alike in some way.

Question 9

An important factor to consider when selecting target markets is:

A) That they are homogeneous groups
B) If they are compatible with each other
C) They come from the surrounding area of the organization
D) They share the same psychographic characteristics

Question 10

Differentiation:

A) Helps the organization gain a competitive advantage
B) Should be customized to each target market
C) Is based on perceptions of the product
D) All of the above

Question 11

A segmentation category that is not included under "usage segmentation" is:

A) Purpose of purchase
B) Family life cycle
C) Purchase occasion
D) RFM analysis

Question 12

Differentiation comes before segmentation.

Question 13

An email merge, or a personalized, computer generated email to past guests of a resort property is an example of:

A) Demographic segmentation
B) Differentiation
C) Mass customization
D) Target marketing

Question 14

The best example of a basis for differentiation in the hotel market is:

A) A W hotel's boutique hotel design scheme
B) A Colorado ski resort offering chairlifts
C) A Holiday Inn offering shampoo and conditioner amenities in the bathroom
D) A hotel in Florida that has a pool

Question 15

Benefit segmentation helps to predict:

A) The customer's RFM analysis
B) A customer's future behavior
C) Whether or not they will purchase your product or service
D) How many customers an organization will gain from that segment

Question 16

Market segmentation refers to the of an organization.

A) Positioning strategy
B) Customers
C) Products
D) Differentiation strategy

Question 17

The purpose of demand analysis is to:

A) Customize the product to a customer's unique needs
B) Project needs, wants and willingness to pay into their current customer base
C) Conduct current market research for the company
D) Project needs, wants and willingness to pay into a potential market

Question 18

Differentiation is most effective when other competitors copy your product, but your organization has the best overall product.

Question 19

Target marketing is a direct derivative from a firm performing .

A) Product differentiation
B) Demand analysis
C) Market segmentation
D) Product positioning

Question 20

The most basic assumption of market segmentation is that:

A) The organization would customize the product to the customer
B) Customers have different needs and wants
C) Different markets require one product
D) Customers want certain benefits out of the product

Question 21

Segmenting the market based on age is a good example of psychographic segmentation.

Question 22

The foundation of any segmentation strategy is behavioral differences in customers.

Question 23

One of the three strategies for selecting a target market is to determine potential profitability from that segment.

Question 24

A customer with an RFM score of 111 is a much more valuable customer than one with a score of 555.

Question 25

A benefit bundle is all of the benefits a customer derives from buying a service.