Deck 6: Segmentation, Target Markets and Positioning

Question 1

Why do marketers rely heavily on demographic characteristics when segmenting consumer markets?

Answer 1

no answer

Question 2

How do business markets differ from consumer markets?

Answer 2

no answer

Question 3

What variables are used to segment business markets?

Answer 3

no answer

Question 4

What are the major steps of the target market selection process?

Question 5

Andrea makes frequent trips to Costco to make purchases for her catering business as well as her family.Andrea knows that she is considered as part of the business market when the items she buys are intended for resale, used directly in producing her food products or:

A)eaten by her family.
B)used in general daily operations for her catering business.
C)used in everyday cooking for her family and friends.
D)used as ingredients in making snacks for her employees.

Question 6

Identify the four major categories of segmentation variables for consumer products, and give three examples of each.

Question 7

In order to be considered a market, people do not have to have:

A)a need or desire for a particular product.
B)the ability to purchase the product.
C)discretionary income to purchase the product.
D)the willingness to use their buying power.
E)the authority to buy the specific products.

Question 8

John has just joined a company as the merchandise buyer for giftware.He has the authority to place orders of up to $100 000 for his new company.He wants to place an order with a new supplier for $250 000.In this case, John __________ part of the market for the giftware because __________.

A)is; he has very little buying power
B)is; has the need for the giftware
C)is not; he is willing to spend the company's money
D)is; he has the desire for the giftware
E)is not; he does not have the authority to purchase

Question 9

Markets fall into one of two categories.These categories are:

A)consumer and business.
B)consumer and customer.
C)organisational and business.
D)homogeneous and heterogeneous.
E)segments and mass markets.

Question 10

Which of the following is not a characteristic of a consumer market?

A)It consists of purchasers who intend to consume or benefit from the purchased products.
B)It is sometimes referred to as a B2C market.
C)Purchasing decisions are always made by one individual.
D)Everyone belongs to numerous markets of this type.

Question 11

Purchasers who intend to use or benefit from the purchased product and do not buy products to make profits are part of the:

A)consumer market.
B)end-use consumption group.
C)business market.
D)household purchasing group.
E)organisational market.

Question 12

Which of the following is not true about business markets?

A)A purchase may be made in order to resell the item.
B)A purchase is always made by more than one individual.
C)They are sometimes referred to as B2B markets.
D)The purchase may be made to use in production of another product.
E)They are also referred to as organisational markets.

Question 13

In evaluations of market segments, what are three major issues that should be considered?

Question 14

Compare and contrast the undifferentiated, concentrated and differentiated targeting strategies of market segmentation.Under what conditions is each most effective?

Question 15

What are the advantages of segmenting the market?

Question 16

Would a person's political views be an effective variable with which to segment a market for most products? Why or why not?

Question 17

Any group of people who, as individuals or as organisations, have needs for products in a product class and have the ability, willingness and authority to buy such products is a(n):

A)marketing mix.
B)aggregation.
C)reference group.
D)subculture.
E)market.

Question 18

What are the four criteria that constitute a market?

Question 19

The two primary categories of markets - consumer markets and business markets - are based on the characteristics of the individuals and groups that make up that market and:

A)their willingness to use their buying power.
B)the purposes for which they buy products.
C)the length of time until the product is consumed.
D)the level of need or desire for a specific product.
E)the particular product category involved.

Question 20

In business markets, individuals or groups purchase products for one of three purposes.These purposes are:

A)resale, wholesale and direct use.
B)wholesale, direct use and use in producing other products.
C)resale, wholesale and use in producing other products.
D)resale, direct use in producing other products and use in general daily operations.
E)use in general daily operations, wholesale and resale.

Question 21

A targeting strategy in which an organisation targets a single market segment using one marketing mix is called a(n) __________ targeting strategy.

A)selective
B)focused
C)differentiated
D)concentrated
E)undifferentiated

Question 22

A disadvantage of the concentrated targeting strategy is that:

A)the firm's financial condition is tied to a single and specialised marketing mix.
B)large sales volumes cannot be generated.
C)production costs may be higher than with other strategies.
D)marketing personnel may become dissatisfied with the limited opportunities provided by this approach.
E)marketing costs are often higher than for other strategies.

Question 23

Byford Flour Mills defines all individual consumers who are purchasers of flour as its target market.It also defines all businesses that purchase flour as its target market.What targeting strategy would be most appropriate in this case?

A)Concentrated
B)Undifferentiated
C)Wide appeal
D)Differentiated
E)Clustered

Question 24

Kmart sells numerous products including clothing, toys and some packaged foodstuffs.It focuses itself as a store with everyday low prices.Kmart's advertising appears to use a(n) __________strategy to market that is __________.

A)undifferentiated; homogeneous
B)undifferentiated; heterogeneous
C)differentiated; homogeneous
D)homogeneous; differentiated
E)heterogeneous; undifferentiated

Question 25

Individuals, groups or organisations with one or more similar characteristics that cause them to have similar product needs are classified as:

A)market segments.
B)heterogeneous markets.
C)concentrated markets.
D)demographic segments.
E)strategic segments.

Question 26

Several conditions must exist for market segmentation to be successful.These conditions include all of the following except:

A)the total market should be divided so that segments can be compared on sales potential, costs and profits.
B)customers' needs for a product must be homogeneous.
C)a company must be able to reach the chosen segment with a particular marketing mix.
D)segments must be identifiable and divisible.
E)at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment.

Question 27

The process of dividing a total market into market groups containing people with relatively similar product needs is called:

A)segmentation.
B)diversification.
C)target marketing.
D)concentration.
E)customisation.

Question 28

When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) __________ strategy.

A)concentrated targeting
B)differentiated
C)heterogeneous market
D)undifferentiated
E)single mix

Question 29

To find a target market, a firm can use the:

A)total market strategy and the undifferentiated strategy.
B)product differentiation strategy and the customer differentiation strategy.
C)demographic strategy and the psychographic strategy.
D)socioeconomic strategy and the psychological strategy.
E)undifferentiated strategy, the concentrated strategy and the differentiated strategy.

Question 30

Mattel views the toy market as composed of four age groupings, each with different needs and desires.Each of these groups is known as:

A)an undifferentiated market.
B)heterogeneous.
C)a market segment.
D)a marketing mix.
E)a concentrated market.

Question 31

If the Jaguar division of Tata Motors focused all its marketing efforts on professionals earning more than $250 000, it would be using a(n) __________ strategy.

A)homogeneous
B)undifferentiated
C)multi-segmented
D)concentrated
E)stratified

Question 32

A business advantage of the concentrated targeting strategy for any company is that it:

A)requires less market research and information.
B)requires less intensive analysis of customers' characteristics and needs.
C)allows a firm to use all of its production capacity.
D)maintains the firm's flexibility in moving into other market segments.
E)allows a firm to develop a special marketing mix for a single market segment.

Question 33

Interior Workroom sells expensive custom-made draperies, bedding and accessories using a single marketing mix.It is therefore most likely using a(n) __________ targeting strategy.

A)concentrated
B)differentiated
C)exclusive
D)focused
E)undifferentiated

Question 34

Tiffany & Co.markets its exclusive jewellery and gifts to high-income individuals interested in high-quality products and a well-known brand name.It uses the same marketing mix to reach this market.Tiffany & Co.uses a(n) __________ strategy.

A)undifferentiated
B)differentiated targeting
C)exclusive targeting
D)heterogeneous
E)concentrated targeting

Question 35

When markets are comprised of people with differing product needs, the marketing manager should use a(n) __________ strategy.

A)concentrated or differentiated targeting
B)market-intensive
C)integrated
D)product-oriented
E)undifferentiated

Question 36

When the needs of individual consumers in a target market for a specific product are similar and the organisation can satisfy most customers with a single marketing mix, the best approach to use may be the __________ strategy.

A)undifferentiated
B)differentiated
C)segmented
D)concentrated
E)heterogeneous

Question 37

A market in which a large proportion of customers have similar needs for a product is called a(n) __________ market.

A)undifferentiated
B)heterogeneous
C)homogeneous
D)differentiated
E)concentrated

Question 38

The first step in the target market selection process is:

A)determining which segmentation variables to use.
B)selecting specific target markets.
C)identifying an appropriate targeting strategy.
D)evaluating relevant market segments.
E)developing market segment profiles.

Question 39

The purpose of market segmentation is to:

A)differentiate products.
B)divide a total market to enable a marketer to develop a more precise marketing mix.
C)reduce the overall cost of marketing activities.
D)identify a single marketing mix that will be satisfactory for the general market.
E)meet the needs of homogeneous markets.

Question 40

Imagine Bic manufactures and sells only one type of ballpoint pen at just one price.All its advertising is the same and is directed at the mass market.What type of targeting strategy is Bic using?

A)Undifferentiated
B)Differentiated
C)Segmented
D)Concentrated
E)Heterogeneous

Question 41

Unilever markets Omo Blackwash liquid to singles and Omo Sensitive liquid to families.Unilever is using a(n) __________ targeting strategy for laundry detergents.

A)multi-use
B)differentiated
C)stratified
D)undifferentiated
E)concentrated

Question 42

Imagine Designer Kidz is a home-based business that sells high-quality children's clothing at reasonable prices using in-home parties.These in-home parties typically cater to families with small children and middle- to upper-middle-class income.Designer Kidz is using __________ variables to segment its market.

A)demographic
B)psychographic
C)sociographic
D)behaviouristic
E)geographic

Question 43

Micromarketing involves:

A)a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets.
B)developing a very small marketing mix that will effectively meet the needs of only a small segment of the market.
C)marketing efforts that are tightly controlled by high-level executives in the organisation.
D)segmenting the market to meet the needs of individuals with the same motives and personality attributes.
E)creating advertising that is so specific to a certain type of individual that few people outside that micromarket will respond to the message.

Question 44

Which of the following is not one of the major categories of consumer market segmentation variables?

A)Demographic characteristics
B)Geographic variables
C)Psychographic dimensions
D)Situational variables
E)Behaviouristic characteristics

Question 45

Which of the following is true with respect to segmenting markets?

A)Segmentation variables should be selected on a random basis.
B)A company's resources and capabilities should have little effect on how markets are segmented.
C)The best way to segment markets is by using demographic variables.
D)There is no ideal way to segment markets.
E)Lifestyle variables provide the best means of segmenting a market.

Question 46

Segmentation variables are usually grouped into four categories:

A)demographic, geographic, religion and income.
B)geopolitical, income, behaviouristic and psychographic.
C)attitudes, lifestyles, behaviours and gender.
D)geographic, demographic, psychographic and attitudes.
E)demographic, geographic, psychographic and behaviouristic.

Question 47

Subaru is marketing a new crossover vehicle with all-wheel drive.Which of the following would be a likely variable for segmenting the market for this new model?

A)Religion
B)Geographic location
C)Income
D)Political views
E)Ethnicity

Question 48

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is:

A)to determine the demographic variables of the target market.
B)to develop market segment profiles.
C)to determine which segmentation variables to use.
D)to select specific target markets.
E)to evaluate relevant market segments.

Question 49

A targeting strategy in which an organisation directs its marketing efforts at several segments is called a(n) __________ targeting strategy.

A)differentiated
B)total market
C)concentrated
D)undifferentiated
E)integrated

Question 50

Characteristics of individuals, groups or organisations that are used for dividing a total market into smaller homogeneous groups are called __________ variables.

A)marketing
B)classification
C)segmentation
D)stratification
E)dividing

Question 51

The primary advantage of a concentrated strategy is that:

A)it meets the needs of a wide range of consumers.
B)it allows a firm to specialise to meet specific customer needs.
C)it is more flexible than any other approach.
D)it is the least risky targeting approach.
E)its customers are the most willing to repurchase the same brands.

Question 52

Castrol markets its radiator liquid as a coolant in the summer and in the northern parts of Australia, and as an antifreeze in the southern part of Australia for use in winter.Which of the following segmentation variables is Castrol using?

A)Demographic
B)Psychographic
C)Life cycle
D)Geographic
E)Product use

Question 53

Volkswagen markets the Caravelle to large families, the Scirocco R to men, and the up! to young singles.What targeting approach is Volkswagen using?

A)Concentrated
B)Strategic
C)Differentiated
D)Undifferentiated
E)Multi-segmented

Question 54

McDonald's uses a segmentation strategy for its fast-food meals based on market characteristics such as age, gender and income.Which segmentation variable is McDonald's using?

A)Demographic
B)Geographic
C)Psychographic
D)Product-related
E)Education

Question 55

Lawnmowers, pool accessories, shrubs and swimsuits are all products likely to be segmented by which of the following variables?

A)Volume usage
B)Lifestyles
C)Market density
D)Occupation
E)Climate

Question 56

Age, rate of product use, location and gender are all examples of common:

A)demographic variables.
B)geographic characteristics.
C)targeting strategies.
D)psychographic variables.
E)segmentation variables.

Question 57

With its Venus razor, Gillette was the first marketer to offer a triple-blade razor designed specifically for women.This is an example of market segmentation using __________ variables.

A)demographic
B)psychographic
C)geographic
D)family life cycle
E)product use

Question 58

Occupation, family size and family life cycle are all __________ variables for segmenting consumer markets.

A)behaviouristic
B)demographic
C)geographic
D)psychographic
E)usage

Question 59

Retail site-location analyses, unique product offerings and special advertising campaigns are all examples of the use of:

A)market density.
B)demographic segmentation.
C)behaviouristic segmentation.
D)environmental segmentation.
E)micromarketing.

Question 60

The practice of focusing a firm's marketing efforts on very small markets is known as micromarketing.Which segmentation variable is used to engage in micromarketing?

A)Behaviouristic
B)Demographic
C)Psychographic
D)Geographic
E)Geodemographic

Question 61

Val and Norman are looking at information about how their organisation's products could fit potential customers' needs.This information deals with demographic characteristics, product benefits sought, lifestyles, geographic factors, brand preferences and usage rates.They are most likely looking at:

A)the sales force survey results.
B)the results of sales forecasting.
C)a market trend analysis.
D)a market segmentation discrimination analysis.
E)a market segment profile.

Question 62

Which of the following variables would most likely be used to segment a business market?

A)An attitude of the company's CEO
B)The geographic location of the company
C)The lifestyle of the company's buying agent
D)Net income generated by the company
E)Common opinions of the company's employees

Question 63

Philips calculates that the total number of light bulbs sold to consumers in the next year by all light bulb producers, given their anticipated marketing efforts, will be one billion.This figure represents the industry's:

A)sales potential.
B)market potential.
C)target growth rate.
D)sales forecast.
E)sales objective.

Question 64

XXXX beer may choose to segment its market based on heavy, moderate and light drinkers of its beverages.This is an example of market segmentation based on:

A)behaviouristic variables.
B)benefits.
C)lifestyles.
D)psychographic variables.
E)demographic variables.

Question 65

By marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on:

A)customer size.
B)psychographics.
C)demographics.
D)use of product.
E)geographic location

Question 66

Which of the following is an example of a behaviouristic segmentation variable?

A)Family size
B)Climate
C)Age
D)Usage rate
E)Personality characteristics

Question 67

After an organisation has determined which of the many segmentation variables it will use, the next step in the target market selection process is:

A)evaluating each of the relevant market segments.
B)selecting the specific target markets.
C)reviewing the appropriate marketing strategy.
D)analysing the interaction between segmentation variables.
E)developing market segment profiles.

Question 68

Earth Choice is a company that produces products that reduce their impact on the environment.Its product line includes laundry liquid that is safe to use in greywater systems.The company is now considering expanding its range to include toilet paper, paper towels and tissue paper made from recycled materials.Their research shows that they should use psychographic segmentation in their marketing strategy.Which group of segmentation variables should they be using?

A)Geographic location
B)Age, sex and socioeconomic characteristics
C)Social class variables
D)Personality characteristics, motives and lifestyles
E)Family life cycle, social class and religion

Question 69

The division of a market based on what benefits consumers want from the product is called __________ segmentation.

A)behaviouristic
B)product usage
C)benefit
D)end-purpose
E)advantage

Question 70

Uniqlo has recently arrived in Australia.It closely competes with designer brands in its athletic wear, but at half the price.Uniqlo plan to use price sensitivity, brand loyalty and end use as variables to segment its market.These are all __________ variables for market segmentation.

A)psychographic
B)usage
C)demographic
D)lifecycle
E)behaviouristic

Question 71

__________ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments.

A)Market segmentation variables
B)Market segment profiles
C)Segmentation grids
D)Market differentiation indexes
E)Market concentrations

Question 72

Which of the following is the biggest drawback to using psychographic variables?

A)They are not strongly reflective of consumer behaviour.
B)They are difficult to measure.
C)They give poor information about consumer needs.
D)They do not reflect socioeconomic characteristics of consumers.
E)The resulting segments are difficult to reach

Question 73

The three most commonly used psychographic segmentation variables are:

A)personality, perception and learning.
B)personality, perception and behaviour.
C)motives, attitudes and lifestyles.
D)attitudes, personality and perception.
E)personality, motives and lifestyles.

Question 74

If Baskin-Robbins calculates that it could sell up to 25 per cent of all ice-cream cones sold in the Australia, this percentage would represent the ice cream marketer's:

A)target growth rate.
B)sales forecast.
C)sales objective.
D)company sales potential.
E)market potential.

Question 75

Slim Secrets segments its snack bars based on those who have morning cravings, those who crave something extra in the afternoon slump time and those looking for a healthier snack at any time of the day.This is an example of market segmentation based on variables of:

A)demographics.
B)lifestyles.
C)psychographics.
D)behaviour.
E)personality characteristics.

Question 76

When research indicated that Bluetooth's products were not reaching the correct target market, marketers of Bluetooth decided to change from demographic segmentation to psychographic segmentation.Which group of new segmentation variables will Bluetooth now be using?

A)Geographic location of customers
B)Age, sex and socioeconomic characteristics
C)Social class variables
D)Personality characteristics, motives and lifestyles
E)Family life cycle, social class and religion

Question 77

BlueScope Steel provides steel for a variety of uses to its various customers in Australia and around the world.Customers have different needs for the steel, and thus BlueScope has to prepare the raw steel differently depending on how customers will use it in their production processes.The primary business segmentation variable in this example is:

A)geographic location.
B)customer size.
C)product use.
D)customer importance.
E)organisation classification.

Question 78

__________ the total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified period at a given level of industry-wide marketing activity.

A)Competitor sales potential is
B)Sales objective is
C)Company sales potential is
D)Market potential is

Question 79

End use, price sensitivity and brand loyalty are all __________ variables that can be used in market segmentation.

A)psychographic
B)usage
C)demographic
D)geodemographic
E)behaviouristic

Question 80

Variables such as geographic location, type of organisation, customer size and type of product usage are used to segment __________ markets.

A)consumer
B)business
C)government
D)international
E)most target