Deck 7: Segmentation, Targeting, and Positioning

Question 1

Social media outlets like Facebook are not generally helpful in segmenting markets because of the wide variety of people who utilize this type of technology.

Answer 1

False

Question 2

Global segmentation usually results in market segments made up of young people, those that have money to spend, or those with access to the Internet.

Answer 2

True

Question 3

The two dimensions of the VALS framework, needs and wants, helps to explain why different consumer groups exhibit different behaviors, and why different consumer groups often exhibit the same behaviors for different reasons.

Answer 3

False

Question 4

Unique segmentation is used when the similarity in needs and wants only extends across the region or several countries.

Question 5

When marketers segment based on psychographics, the market is divided into groups according to the reason the consumer made the purchase.

Question 6

In order to reach Millennials, marketers should strive to develop campaigns that seem authentic and real, two qualities Millennials take pride in.

Question 7

Psychographic segmentation involves categorizing customers based on what they actually do with their goods and services.

Question 8

The four broad segmentation bases that marketers use to divide the market into segments are: substantial, measurable, differentiable, and accessible.

Question 9

Market size, customer lifestyles, and population shifts are all important geographic segmentation tools.

Question 10

One of the criteria for segmenting a market is that the market should be substantial, meaning that a firm should be reasonably certain that its marketing mix can inform consumers about the product, how it adds value to the consumer, and ultimately how to purchase it.

Question 11

The major advantage of a differentiated targeting strategy is the potential savings in developing and marketing the product.

Question 12

An undifferentiated targeting strategy, is a mass-marketing approach.

Question 13

As it relates to marketing, segmenting and positioning are essentially the same thing.

Question 14

The process of dividing a larger market into smaller groups based on meaningfully shared characteristics is called positioning.

Question 15

Consumers who have between $100,000 and $250,000 in investable assets are termed mass affluent and are one of the fastest growing segments in the United States.

Question 16

Market segmentation helps firms decide how to allocate their marketing resources in a way that maximizes profit.

Question 17

Regardless of what target marketing strategy firms use, they must keep in mind the growing ethical concerns around targeting some market segments, in particular children and older adults.

Question 18

Firms should consider three important factors during the targeting process: growth potential, level of competition and market share.

Question 19

Segmenting by geography allows marketers to capitalize on convenience to the customer.

Question 20

Behavioral segmentation is often the most difficult of the four segmentation bases to use.

Question 21

What are the two most commonly used demographic variables used by marketers?

A)age and gender
B)gender and income
C)education and family size
D)family size and age
E)age and income

Question 22

Demographic segmentation divides markets by

A)geographic location.
B)characteristics such as age, gender, and income.
C)characteristics such as loyalty and price sensitivity.
D)consumer attitudes.
E)psychological traits.

Question 23

Which of the following is not one of the broad segmentation bases outlined in your text that can be used to segment a market?

A)demand
B)demographic
C)behavioral
D)geographic
E)psychographic

Question 24

To be effective, market segmentation should create market segments that rate favorably on various criteria. Specifically, market segmentation should create market segments that are measurable, differentiable, accessible, actionable, and

A)specific.
B)variable.
C)isolated.
D)marketable.
E)substantial.

Question 25

Repositioning refers to resegmenting a target market that failed to produce enough buyers for a product.

A)mass marketing.
B)market segmentation.
C)market fragmentation.
D)concept testing.
E)positioning.

Question 26

An auto insurance company segmented its market by both gender and age and designed different marketing campaigns to appeal to both. In the end, both segments responded the same to the different marketing strategies, in part, because both segments are required to have auto insurance. This firm failed to understand the criteria of market segments needing to be

A)substantial.
B)accessible.
C)differentiable.
D)measurable.
E)actionable.

Question 27

A successful positioning statement should include the competitive advantages of the product.

Question 28

When a firm is reasonably certain that its marketing mix can inform consumers about the product, how it adds value to the consumer, and ultimately how to purchase it, then the firm rates favorably on which market segment criteria?

A)actionable
B)differentiable
C)substantial
D)measurable
E)accessible

Question 29

A defined in your text, market segmentation involves dividing a larger market into smaller market segments based on

A)shopping habits.
B)geographic region.
C)meaningfully shared characteristics.
D)potential interest in a product.
E)available sales force.

Question 30

A firm that uses a price-quality relationship to highlight its competitive advantage will negotiate discounts from wholesalers and keep distribution costs low so it can pass the savings on to its customers.

Question 31

When it comes to criteria for segmenting markets, it is important that the size and purchasing power of a market segment should be clearly identified. In other words, it should be

A)differentiable.
B)measurable.
C)accessible.
D)identifiable.
E)actionable.

Question 32

It has been Tara's dream to open a bakery, and while she has experience in making all types of baked goods, she always gets rave reviews for her hand-decorated cakes. So, rather than open a bakery that offers a wide variety of baked goods, Tara has decided to open a specialty cake shop to cater to that market only. This is an example of

A)market fragmentation.
B)repositioning.
C)market segmentation.
D)limited marketing.
E)mass marketing.

Question 33

Firms can choose to promote one or multiple competitive advantages, as long as they can clearly articulate those advantages to their target market.

Question 34

Market segmentation produces relatively homogenous groups of consumers called

A)consumer targets.
B)consumer segments.
C)market sectors.
D)market segments.
E)consumer clusters.

Question 35

Which market segment criteria refers to the fact that segments must be large enough for the firm to make a profit by serving them?

A)accessible
B)substantial
C)measurable
D)differentiable
E)actionable

Question 36

What does the criteria accessible mean regarding market segments?

A)Markets should be clearly identified with appropriate strategies developed for each.
B)Segments must be large enough for the firm to make a profit by serving them.
C)The size and purchasing power of the segment should be clearly identified.
D)Marketers must be able to reach and serve the segment.
E)Marketers should develop strategies that can attract a market to its products.

Question 37

Urban Fashions found that customers who live and work in big urban cities are more likely to buy its portfolio style backpack than consumers who live and work in the suburbs. Based on this information, the company spends more of its marketing budget advertising on city buses and in urban-related magazines since these outlets will be seen by customers living and working in the city. This exemplifies how market segmentation

A)helps firms decide how to allocate their marketing resources in a way that maximizes profit.
B)results in the creation of a single market that can be reached with a single marketing strategy.
C)results in identifying the relatively heterogenous groups of consumers to which a firm can market its products.
D)helps firms define the needs and wants of the customers who are most interested in buying the firm's products.
E)results in a one-size-fits-all marketing strategy.

Question 38

Market segmentation refers to

A)having regional sales forces that can market a product according to geographic area.
B)redesigning or repositioning a product so it meets the needs of a target market.
C)taking an overall marketing plan and dividing it into smaller campaigns based on each product.
D)marketing a product so that each and every consumer can get value from it.
E)dividing a larger market into smaller groups based on meaningfully shared characteristics.

Question 39

Market segments are

A)relatively heterogeneous groups of consumers that result from the segmentation process.
B)the different geographical areas in which a product must be marketed differently.
C)the various types of advertising and promotional campaigns used to sway consumer interest in a product.
D)the two buying groups: those that have never purchased a firm's product, and those that are potential repeat customers.
E)relatively homogenous groups of consumers that result from the segmentation process.

Question 40

A perceptual map is a competitive analysis tool that creates a visual picture of where products are located in consumer's minds.

Question 41

Segmentation based on where prospective consumers live, work, and spend their leisure time is referred to as

A)geographic segmentation.
B)proximity segmentation.
C)demographic segmentation.
D)residential segmentation.
E)regional segmentation.

Question 42

A psychographic segmentation variable that divides people into groups based on their opinion and the interests and activities they pursue is called

A)behavioral segmentation.
B)social segmentation.
C)psychological segmentation.
D)socioeconomic segmentation.
E)lifestyle segmentation.

Question 43

Free-standing areas with a core urban population of at least 50,000 are what the U.S. Census Bureau calls

A)major cities.
B)urban numerical areas.
C)metropolitan statistical areas.
D)metropolitan districts.
E)urban statistical areas.

Question 44

Psychographic segmentation refers to the science of segmenting markets based on

A)consumers' income, age and behavior.
B)psychology, demographics and personality traits.
C)consumers' opinions, interests and attitudes.
D)behavior and demographics.
E)psychology and geography.

Question 45

Which is considered to be a behavioral segmentation variable?

A)lifestyle
B)population shifts
C)family size
D)usage rate
E)customer convenience

Question 46

When marketers segment based on psychographics, the market is divided into groups according to

A)family size and marital status.
B)the reason why the consumer made the purchase.
C)how convenient the product is for the consumer.
D)how consumers act toward products.
E)a consumer's income and interest in the product.

Question 47

Considered to be one of the most important sources of demographic information for marketers, ________ provides free information on data such as how households are segmented by race, education, age, and occupation?

A)the Social Security Administration
B)the ACNielsen Company
C)the U.S. Census Bureau
D)Consumer Reports
E)the U.S. Bureau of Labor Statistics

Question 48

According to the 2010 U.S. Census, which is the only Southern state that lost seats in the House of Representatives due to population shifts out of the state?

A)Arizona
B)Texas
C)Louisiana
D)Florida
E)South Carolina

Question 49

Manufacturers who package toilet paper in large multi-packs, such as those found in warehouse clubs like Costco, are most likely targeting their market based on the demographic variable of

A)income.
B)age.
C)family size.
D)neighborhoods.
E)gender.

Question 50

Behavioral segmentation divides consumers according to

A)customer convenience and market size.
B)consumers' opinion and interests.
C)the various lifestyles of the consumer.
D)how motivated and how many resources a consumer has.
E)how consumers behave with or act towards products.

Question 51

Stores like Cabela's, REI, and Bass Pro Shops that cater to the interests of outdoor enthusiasts' most likely use what type of segmentation strategy?

A)behavioral segmentation
B)geographic segmentation
C)psychographic segmentation
D)socioeconomic segmentation
E)demographic segmentation

Question 52

The fact that you see a McDonald's on practically every highway exit sign listing restaurant choices would indicate that McDonald's is most likely geographically segmenting based on

A)lifestyle.
B)population shifts.
C)income.
D)customer convenience.
E)market size.

Question 53

Which factor is a demographic segmentation variable?

A)lifestyle
B)population shifts
C)gender
D)market size
E)motivation

Question 54

Claritin, makers of allergy tablets, expanded its product line to include a chewable, fruit flavored allergy tablet, specifically designed to be easy for children to take. For this product, Claritin is segmenting the market based on

A)lifestyle.
B)age.
C)customer convenience.
D)motivation.
E)gender.

Question 55

Marketers target older Americans because

A)they tend to be more educated than other consumers.
B)they tend to have more time and money than younger consumers.
C)there are more products available to that age group.
D)they tend to pay more attention to advertisements than other consumers.
E)they purchase products not only for themselves, but also for their family members.

Question 56

According to the VALS framework, why different consumer groups exhibit different behaviors or why different consumer groups exhibit the same behaviors for different reasons is based on

A)lifestyle and income.
B)motivation and desire.
C)opinion and interests.
D)motivation and resources.
E)opinion and resources.

Question 57

Kaden is a realtor selling high-end homes priced over $750,000. Before showing a property to prospective clients, Kaden makes sure they are prequalified for a home loan commensurate with the price of the house. This pre-qualification is based mainly on the client's income, which is what type of segmentation variable?

A)behavioral
B)geographic
C)financial
D)demographic
E)psychographic

Question 58

American households that have between $100,000 and $250,000 in investable assets are one of the fastest growing segments in the United States and are referred to as

A)ultra-rich.
B)ultra-prosperous.
C)the massively wealthy.
D)the well-to-dos.
E)mass affluent.

Question 59

The 80/20 rule is a theory that suggests that

A)20 percent of the total demand for products comes from 80 percent of the target market.
B)80 percent of a firm's profits is generated from 20 percent of its product line.
C)80 percent of a firm's products are marketed to only 20 percent of the population.
D)20 percent of heavy users account for 80 percent of the total demand.
E)20 percent of a firm's products are never marketed to 80 percent of consumers.

Question 60

The VALS framework classifies adults into eight psychographic groups: Innovators, Thinkers, Believers, Achievers, Strivers, Experiencers, Makers, and

A)Creators.
B)Survivors.
C)Seekers.
D)Fighters.
E)Skeptics.

Question 61

What factor of the targeting process is at work when a marketer ensures that the target market is appropriate for what the organization is and wants to be as defined in its mission statement?

A)organizational fit
B)growth potential
C)segment harmony
D)cultural awareness
E)strategic fit

Question 62

Business-to-business firms generally segment their markets according to what three variables?

A)demographic, geographic, and behavioral
B)price sensitivity, usage rate, and region
C)market size, customer convenience, and usage rate
D)demographic, geographic, and psychographic
E)profit potential, price sensitivity, and demand

Question 63

According to your text, what tool provides an excellent framework to determine if a firm will be successful targeting a specific segment?

A)a perceptual map
B)a positioning map
C)a SWOT analysis
D)a segmentation analysis
E)Maslow's hierarchy of needs

Question 64

According to your text, when selecting a target market, firms should consider three important factors: growth potential, level of competition, and

A)proximity to the market.
B)cultural factors.
C)economic conditions.
D)profitability timeframe.
E)strategic fit.

Question 65

When a company evaluates each market segment to determine which segment or segments present the most attractive opportunity to maximize sales, it is engaged in

A)repositioning.
B)positioning.
C)targeting.
D)segmenting.
E)situation analysis.

Question 66

The group of customers toward which an organization has decided to direct its marketing efforts is called its

A)primary market.
B)primary segment.
C)target market.
D)target sector.
E)marketing segment.

Question 67

As it pertains to international segmentation, unique segmentation is used when

A)the similarity in needs and wants exists within one country.
B)a product offering has market appeal only in English-speaking regions.
C)a product offering has market appeal in several countries.
D)the similarity in needs and wants only extends across the region or several countries.
E)a firm can identify a group of consumers with common needs and wants that spans the entire globe.

Question 68

After Colin opened up his new sports bar/restaurant, he determined that students from the nearby college campus will provide him with the best opportunity to maximize sales, so he is concentrating his marketing efforts on this group which will be his

A)marketing segment.
B)primary segment.
C)primary market.
D)target market.
E)target sector.

Question 69

The potential savings in developing and marketing the product is the major advantage of

A)a geographic targeting strategy.
B)a differentiated targeting strategy.
C)a specialized marketing strategy.
D)a niche marketing strategy.
E)an undifferentiated targeting strategy.

Question 70

According to your text, the segmentation base that is often the most difficult to use is

A)lifestyle segmentation.
B)psychographic segmentation.
C)behavioral segmentation.
D)demographic segmentation.
E)geographic segmentation.

Question 71

Which international segmentation base usually results in market segments made up of young people, those that have more money to spend, or those with access to the Internet?

A)global
B)national
C)regional
D)unique
E)cultural

Question 72

What can be said of the level of competition when selecting a target market?

A)The more competitors there are within a segment, the less of a chance there is for price wars.
B)A market segment is less attractive to marketers if there are only a few competitors for that segment.
C)The more competitors there are within a segment, the less a company will have to spend to reach out to consumers.
D)The more intense the competition within a segment, the more attractive it is to marketers.
E)The more competitors there are, the more a firm will have to invest in promotion to increase market share.

Question 73

What type of business-to-business segmentation allows B₂B marketers to segment based on purchasing patterns, supplier requirements, and technological orientation?

A)geographic
B)behavioral
C)psychographic
D)demographic
E)lifestyle

Question 74

Colin has opened up a new sports bar/restaurant in town. He has determined that his market segments are (1)students from the nearby college campus, (2)families with small children, and (3)young adult males. Colin now has to determine which of these segments will provide him with the best opportunity to maximize sales. The process of doing this is referred to as

A)segmenting.
B)marketing.
C)targeting.
D)repositioning.
E)positioning.

Question 75

Which statement best characterizes international market segmentation?

A)It is a challenging process to complete.
B)It is a relatively inexpensive process.
C)It typically does not provide any useful data.
D)It is easier to conduct than domestic market segmentation.
E)It makes it easy to compare characteristics across nations.

Question 76

As it pertains to international segmentation, global segmentation refers to identifying

A)similar patterns in cultures that can be used to segment a market.
B)a group of consumers with common needs and wants that spans the entire globe.
C)products that will have a global appeal.
D)markets that will be favorable for exporting products internationally.
E)products that can be marketed in the same way across the globe.

Question 77

What are the three basic strategies for targeting markets?

A)print advertising, sales promotion, and public relations
B)undifferentiated targeting, differentiated targeting, and niche marketing
C)primary targeting, secondary targeting, and specialized marketing
D)targeting by product, targeting by price, and targeting by customer
E)demographic targeting, geographic targeting, and psychographic targeting

Question 78

Firms typically segment international markets using three general bases: global, regional, and

A)unique.
B)economic.
C)political.
D)national.
E)cultural.

Question 79

Read the following statements to select which one is accurate regarding the use of social media in market segmentation.

A)Social media is not very helpful in segmenting markets, but it can be a useful tool for marketers once the market has already been segmented.
B)As of yet, social media has not been proven to be an effective tool for segmenting markets.
C)As compared to traditional segmenting techniques, it is easier to know exactly how to engage consumers on social networking sites.
D)By segmenting the market by those who are active on social media, companies can connect with a larger and more diverse consumer base.
E)Social media is most helpful in reaching out to older Americans and senior citizens.

Question 80

Undifferentiated targeting is a strategy that

A)simultaneously pursues several different market segments with a different strategy for each.
B)approaches the marketplace as one large segment.
C)involves pursuing a large share of a small market.
D)uses a different marketing strategy for each segment.
E)markets the same product to multiple regions.