Deck 6: Segmentation, Targeting, and Positioning

Question 1

Geographic segmentation is

A) the process of categorizing different groups of customers in a market, based on customer differences.
B) the process of separating customer groups based on location.
C) the process of separating customer groups based on lifestyle.
D) the process of separating customers based on what they do.

Answer 1

the process of separating customer groups based on location.

Question 2

Psychographic segmentation is

A) the process of categorizing different groups of customers in a market, based on customer differences.
B) the process of separating customer groups based on location.
C) the process of separating customer groups based on lifestyle.
D) the process of separating customers based on what they do.

Answer 2

the process of separating customer groups based on lifestyle.

Question 3

Behavioral segmentation is

A) the process of categorizing different groups of customers in a market, based on customer differences.
B) the process of separating customer groups based on location.
C) the process of separating customer groups based on lifestyle.
D) the process of separating customers based on what they do.

Answer 3

the process of separating customers based on what they do.

Question 4

Vance, a marketing major, was helping his sister develop her retail shop. Her business was not thriving, and Vance quickly determined that trying to please everyone was pleasing no one. Together they worked out an approach where she would identify groups of customers who had similar needs, and then work with each group to meet their needs. This basic process in marketing is called

A) demographics.
B) needs response.
C) marketing segmentation.
D) market optimization.

Question 5

A mass market approach

A) assumes the market is just one big segment.
B) assumes every customer is their own segment.
C) is the process of separating customer groups based on location.
D) is the process of separating customer groups based on lifestyle.

Question 6

A micromarketing approach

A) assumes the market is just one big segment.
B) assumes every customer is their own segment.
C) is the process of separating customer groups based on location.
D) is the process of separating customer groups based on lifestyle.

Question 7

Generally speaking, how many steps are there in the segmentation process?

A) 5
B) 6
C) 7
D) 8

Question 8

Demographic segmentation is

A) the process of categorizing different groups of customers in a market based personal characteristics such as age, race, and so on.
B) the process of separating customer groups based on location.
C) the process of separating customer groups based on lifestyle.
D) the process of separating customers based on what they do.

Question 9

A key variable to demographic segmentation is

A) gender.
B) social class.
C) brand loyalty.
D) usage rate.

Question 10

Which of the following is NOT a criterion needed for a market segmentation approach to be effective?

A) Measurable
B) Substantial
C) Responsive
D) Marketable

Question 11

A target market is

A) the group of customers a company decides to focus its marketing efforts on.
B) the group of companies a given company must take customers away from.
C) a group of customers loyal to another company.
D) a group of customers a company doesn't want to market to because those customers are the least profitable.

Question 12

Positioning is

A) the act of categorizing different groups of customers in a market, based on customer differences.
B) is used externally to give customers a sense of the company's brand.
C) the act of creating a specific perception in the customer's mind relative to other options.
D) the act of strategically locating products with a given geographic area.

Question 13

How many steps are typically involved in developing a target market?

A) 5
B) 4
C) 2
D) 3

Question 14

What is the first step in developing a target market?

A) Selecting a variable within the base.
B) Narrowing the market.
C) Rank the segments in order of attractiveness.
D) Decide which segments to target.

Question 15

What is the third step in developing a target market?

A) Selecting a variable within the base.
B) Narrowing the market.
C) Rank the segments in order of attractiveness.
D) Decide which segments to target.

Question 16

Bragg Company is going through the market segmentation process. They divide customers into two groups: 1) those over 50, and 2) those under 50. This is an example of

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

Question 17

Riley Surf Company is going through the market segmentation process. They divide customers into two groups: 1) those who live in California, and 2) those who don't. This is an example of

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

Question 18

Shredville Company is going through the market segmentation process. They divide customers into two groups: 1) those who prefer snow skiing, and 2) those who prefer snowboarding. This is an example of

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

Question 19

Brag Company is going through the market segmentation process. They divide customers into two groups: 1) those who snow ski 0-4 times a year, and 2) those who snow ski more than 4 times a year. This is an example of

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

Question 20

Gnarly Company makes shoes designed for skateboarding. What is the most likely demographic variable Gnarly will segment the market on?

A) Climate
B) Physical location
C) Lifestyle
D) Age

Question 21

Ryder Company segmented the market based on the brand loyalty variable; what type of segmentation are they performing?

A) Psychographic
B) Lifestyle
C) Demographic
D) Behavioral

Question 22

Tide segmented the market based on customer lifestyles; what type of segmentation are they performing?

A) Psychographic
B) Lifestyle
C) Demographic
D) Behavioral

Question 23

Apple segmented the market based on whether customers were millennials; what type of segmentation are they performing?

A) Psychographic
B) Lifestyle
C) Demographic
D) Behavioral

Question 24

Nike segmented the market based on whether customers considered themselves pessimistic; what type of segmentation are they performing?

A) Psychographic
B) Lifestyle
C) Demographic
D) Behavioral

Question 25

Vineyard Vines segmented the market by dividing customers between those who make over $100,000 and those who don't; what type of segmentation are they performing?

A) Psychographic
B) Lifestyle
C) Demographic
D) Behavioral

Question 26

In which step of the segmentation process would a SWOT analysis be most useful?

A) Define the broad market
B) Narrow the market
C) Select general variable category(ies) for segmentation
D) Choose specific segmentation variables within a selected category

Question 27

Adidas is currently trying to decide if segmentation based on demographics or psychographics makes the most sense. In which step of the segmentation process are they?

A) Define the broad market
B) Narrow the market
C) Select general variable category(ies) for segmentation
D) Choose specific segmentation variables within a selected category

Question 28

Microsoft has decided to that behavioral segmentation makes the most sense. Which step of the segmentation process is next?

A) Narrow the market
B) Select general variable category(ies) for segmentation
C) Define the broad market
D) Choose specific segmentation variables within a selected category

Question 29

Able Co. is a brand-new clothing company. They've decided they want to make clothes. Specifically, they want to make clothes for out-door recreation. Which steps of the segmentation process have they completed?

A) 1) Define the broad market
B) 1) Define the broad market, 2) Narrow the market
C) 1) Define the broad market, 2) Narrow the market, 3) Select general variable category(ies) for segmentation
D) 1) Define the broad market, 2) Narrow the market, 3) Select general variable category(ies) for segmentation, 4) Choose specific segmentation variables within a selected category

Question 30

Able Co. is a brand-new clothing company. They've decided they want to make clothes and divide the market between individuals who make more than $80,000 a year and those who make less. Which steps of the segmentation process have they completed?

A) 1) Define the broad market
B) 1) Define the broad market, 2) Narrow the market
C) 1) Define the broad market, 2) Narrow the market, 3) Select general variable category(ies) for segmentation
D) 1) Define the broad market, 2) Narrow the market, 3) Select general variable category(ies) for segmentation, 4) Choose specific segmentation variables within a selected category

Question 31

There are five criteria for effective marketing segmentation: 1) identifiable, 2) measurable, 3) substantial, 4) accessible, and 5) responsive. Which of the following segmentation variables best meets the "identifiable" criterion?

A) Customers who live somewhere with an average temperature of at least 60 degrees.
B) Customers who typically vote republican.
C) Customers who are socially responsible.
D) Customers who are pessimistic.

Question 32

There are five criteria for effective marketing segmentation: 1) identifiable, 2) measurable, 3) substantial, 4) accessible, and 5) responsive. Which of the following segmentation variables best meets the "substantial" criterion?

A) Members of the segment typically vote democrat.
B) The segment represents $100 million in potential revenue and requires a roughly $10 million investment into the marketing mix.
C) All members of the segment are active on popular social media.
D) The segment represents approximately 200 million people.

Question 33

There are five criteria for effective marketing segmentation: 1) identifiable, 2) measurable, 3) substantial, 4) accessible, and 5) responsive. Which of the following segmentation variables best meets the "measurable" criterion?

A) Members of the segment typically vote democrat.
B) All members of the segment use cellphones.
C) All members of the segment are active on popular social media.
D) The segment represents approximately 200 million people.

Question 34

There are five criteria for effective marketing segmentation: 1) identifiable, 2) measurable, 3) substantial, 4) accessible, and 5) responsive. Which of the following segmentation variables best meets the "accessible" criterion?

A) Members of the segment typically vote democrat.
B) The segment represents $100 million in potential revenue and requires a roughly $10 million investment into the marketing mix.
C) All members of the segment are active on popular social media and the Company primarily advertises on social media.
D) The segment represents approximately 200 million people.

Question 35

Marketing segments should be internally ________ and externally ________.

A) diverse; fragmented
B) accessible; consistent
C) fragmented; different
D) consistent; different

Question 36

What is the general rule for how many segments to focus on at a time?

A) Companies should focus on all segments for which the required return on investment can be made.
B) Companies should focus on the most attractive segment.
C) Companies should focus on the three most attractive segments.
D) Companies should eliminate half of the segments by focusing on the most attractive 50%.

Question 37

When a company is deciding on a target market, their first step is to rank the segments in order of ___________ based on attributes such as __________ and ____________.

A) attractiveness; size; growth
B) size; growth; attractiveness.
C) competition; size; ethics
D) growth; size; competition

Question 38

Carrie's Convenience offers the Cincinnati community premium groceries at discount prices with more convenience and friendlier service than large chain grocery stores. This is an example of

A) a targeting statement.
B) a value proposition.
C) a positioning statement.
D) a target market proposition.

Question 39

How many positioning statements does a company typically have?

A) None, since a "positioning statement" isn't a real thing.
B) Companies only have one positioning statement since its essentially a mission statement.
C) Companies typically have a positioning statement for each target market.
D) Companies usually have a positioning statement for their 3 primary sustainable markets.

Question 40

Cover Co. is a new company with two employees: the husband and wife that founded the company. Cover makes trash can covers that help keep outdoor trash cans secure. Which segmentation method would Cover be least likely to use and why?

A) Demographic segmentation because nearly every household utilizes trash cans.
B) Behavioral segmentation because behavioral variables have little effect on the use and need for a trash can cover.
C) Psychographic segmentation because the variables are difficult for marketers to measure
D) Geographic segmentation because the use of trash cans isn't dependent upon geography.

Question 41

Which of the following scenarios represents a market segment that likely does NOT meet the "substantial" criterion?

A) Members of the segment have agreeable personalities and the Company makes shoes.
B) Members of the segment generally don't use cell phones and the Company makes a cell phone app.
C) Members of the segment are below the poverty line and the Company makes jewelry.
D) Members of the segment buy grain and the Company sells grain.

Question 42

Which of the following scenarios represents a market segment that likely does NOT meet the "responsive" criterion?

A) Members of the segment have agreeable personalities and the Company makes shoes.
B) Members of the segment generally don't use cell phones and the Company makes a cell phone app.
C) Members of the segment are below the poverty line and the Company makes jewelry.
D) Members of the segment buy grain and the Company sells grain.

Question 43

Which response describes the problem with the following positioning statement? "Road Dog gas stations are committed to offering competitive prices and a unique customer experience at our locations."

A) The statement lacks the competitive component.
B) The statement lacks the key benefit.
C) The statement lacks the competitive component and the key benefit.
D) The statement lacks the competitive component and the target customer.

Question 44

Cover Co. is a new company with two employees: the husband and wife that founded the company. Cover makes trash can covers that help keep outdoor trash cans secure. You've been hired as a marketing consultant for the new company. Using your choice of two out of the four segmentation categories, pick a variable from each category that could be used to segment Cover Co.'s market, and explain why it could be used.

Question 45

If you were the Chief Marketing Officer of Apple, what might your positioning statement be or contain?

Question 46

Provide two real examples of a company repositioning a brand.

Question 47

Both segmentation and mass marketing are essential if a company is to succeed in its marketing efforts.

Question 48

Angela and Steve were expanding their business selling scooters that were ideal for an urban environment. This was their first attempt at segmentation, and they tried to look at the market in several ways. Which of the following is NOT one of the usual methods of geographic segmentation?

A) Density
B) Region
C) Size
D) State

Question 49

Mario had two kitchen appliance stores in a mid-sized town, and he used geographic segmentation, particularly focusing on the location of the stores. The results were disappointing. Why do you think this geographic segmentation didn't work?

A) The stores were likely too close to each other to enable geographic segmentation.
B) The business was too small to be able to use segmentation effectively.
C) Geographic segmentation does not account for the key variables in decision making.
D) There are so many factors such as competition and weather that it would be impossible to analyze the failure definitively.

Question 50

Demographics is an important part of looking at the environment. That same kind of information can be used to segment markets.

Question 51

Demographic information can be used in many ways. Marketers can even select music to accompany ads or play in stores based demographics.

Question 52

Marketers have a number of segmentation approaches they can use with customers that rely on where they live, what they have accomplished, what they want to do, and what they actually do. As businesses are not people, it is virtually impossible to segment businesses and they don't behave as people do.

Question 53

Characteristics such as gender, race, religion and national origin may be effective in segmentation if

A) local laws and regulations permit profiling.
B) the marketer does not explicitly mention or show the characteristics in promotions.
C) alternatives would be too expensive to pursue.
D) the characteristics can be used to identify purchasing behaviors.

Question 54

Jesse discovered a wealth of demographic information by looking at the U.S. Census data, and he wanted to use the information for demographic segmentation. What would be your best advice to him about demographic segmentation?

A) Find the one characteristic that makes the most sense and focus on that with laser-like precision.
B) Use no more than two variables to make segmentation more reliable and testable.
C) Use multiple segments to accommodate the purchasing behaviors of his customers.
D) Use as many characteristics as he could manipulate in his computer programs.

Question 55

Stephanie could not find a significant pattern in looking at the demographic characteristic of her current customers. She had tried age, gender, income, national origin, and more but was not satisfied. She knew she needed to segment her market and was considering whether it might be possible to use another characteristic such as personality. What kind of segmentation approach would you recommend to her?

A) Psychographics
B) Complex demographics
C) Geodemographics
D) Insight segmentation

Question 56

Lawrence was monitoring the results of his demographic segmentation campaign for his mid-sized firm, and while it was doing okay, it felt it could be better. He was reluctant to go to psychographics as a basis for his segmentation effort because

A) he felt customers would feel this was an invasion of their privacy.
B) no one in the marketing area had a degree in psychology to support the segmentation.
C) psychographics works well with services but is not generally applicable to products.
D) he knew psychographics required sophisticated research to develop, which was beyond the capacity of his firm.

Question 57

Marketers have many choices on how to segment markets. What is the main advantage to using the behavioral segmentation approach? Behavioral segmentation

A) relies on external census data as in demographics.
B) accounts for people might be moving in and out of a geographic area.
C) focuses on the lifestyles of customers and potential customers.
D) is based on what customers do, not what they say they would do.

Question 58

Which of the following is NOT one of the variables used in behavioral segmentation?

A) Education attained
B) Brand loyalty
C) Benefits sought
D) Buyer readiness

Question 59

Assume you are in the marketing area of a small firm selling office equipment to a range of business. You know segmentation would be better than mass marketing, and with limited resources, you want to use demographic segmentation. For consumers you might use family life cycle stage, and the equivalent demographic approach for business segmentation would be

A) number of employees.
B) stages in business partnership cycle.
C) depth of product lines.
D) years in business.

Question 60

Judith has invented a cellphone battery that lasts for two weeks without needing to be recharged. Some of her friends think she should just announce it to the world, and marketing isn't necessary. Other friends are recommending Judith look at segmenting the market which would help her to

A) keep within a reasonable marketing budget.
B) develop protection from competitive pressures.
C) ensure she will be able to patent the battery without letting the entire market know.
D) focus on those potential customers with the greatest need.

Question 61

Which of the following is NOT one of the steps in the Segmentation Process?

A) Research the market dimensions
B) Narrow the market
C) Select general variables within a selected category
D) Develop a profile for each segment

Question 62

Matt had a passion for antique tools and decided to turn that passion into a brick and mortar store. He defined the broad market then narrowed it, but then he was stuck. He discussed his problem with his aunt what had years of experience in marketing positions in a large retailing firm. How could his aunt help him to take the next steps as he did know what to do next?

A) To be successful, an entrepreneur should get advice from someone of the opposite gender.
B) To make tough decisions about which kind of segmentation to use is often a judgment by someone with extensive experience.
C) To be able to determine the next steps, it's best for a small business to discuss segmentation only with people one can trust.
D) To help start-up firms, larger companies will develop mentorship programs to help the entrepreneur.

Question 63

It is important to identify which consumers are NOT interested in your product when segmenting a market.

Question 64

Selecting a segmentation approach is a tough decision, but that's not the last of the tough decisions. Assume you've chosen a geographic segmentation approach for pickup trucks. What are some of the variables you might select?

Question 65

Alicia had taken a marketing position in a small company which had never had a marketing function or individual before. She explained segmentation to the owner of the firm, and the owner asked Alicia to come up with as many segment variables as possible using behavioral segmentation. Alicia argued for fewer segment variable as it makes the process less complicated and is generally preferred as long as the fewer variables allow for accurate and meaningful categorization and

A) no other segmentation approaches are used.
B) competitors and industry standards use fewer variables.
C) there are clear distinctions among different customer groups.
D) adequate research can support the choices.

Question 66

Justin has a bookstore, both online and a physical store. He had not been using any sort of segmentation, but you have worked with him to identify the market for his book selections, and after brainstorming the two of you have decided on a behavioral approach to maximize his marketing efforts. What is your next move?

A) Narrow the market further
B) Decide which behavioral variables are significant for customer distinctions
C) Examine his merchandise to see if there are sufficient books and merchandise to meet the demands of the segments
D) Rank order the segmentation approaches within the behavioral approach.

Question 67

Stephanie has been segmenting the market to help her grow her catering business. She is now at final stage in the segmentation process, and she will develop profiles for the customer groups. Why is this important?

A) Profiles will indicate why the group is unique, so a marketing mix can address that group specifically.
B) Profiles are the key to developing a customer relationship management system that will help in future data collection and monitoring.
C) Profiles help marketers develop communications and promotion plans to reach that specific customer group.
D) Profiles will help limit the number of groups being considered as each profile will tell a clear story.

Question 68

Once the segments have been identified using all of the selected variables, it is important to describe each one in detail to understand the market.

Question 69

Alejandro has created a line of small and intense chocolates. He has found a way to give the user the satisfaction of a regular chocolate candy but with its small size, there are far fewer calories. He feels there are many potential customers. Would micromarketing would work well for his business? Why or why not?

A) Yes. Micromarketing is ideal for miniaturized products.
B) No. Micromarketing is for highly customized products with small segments.
C) Yes. Until the business can grow, micromarketing works until large scale is required.
D) No. Micromarketing is no longer practiced for consumer goods.

Question 70

Differentiated marketing is also known as

A) micromarketing.
B) variable marketing.
C) multisegment marketing.
D) niche marketing.

Question 71

Carly and Diane had worked out a thoughtful behavioral segmentation approach for their consulting business, and when they were looking at the specific individuals in the segments, they found a significant group of customers that appeared in more than one segment. They should

A) concentrate on these potential customers as their needs are highly relevant in several areas.
B) revise the segment variables to eliminate the overlap.
C) ignore the overlap unless it represents more than 20% of a segment.
D) go back to the data to ensure the segments were done accurately.

Question 72

Which of the following is NOT one of the criteria for effective marketing segmentation?

A) Identifiable
B) Measurable
C) Accessible
D) Affordable

Question 73

Stuart is the owner of a small furniture refinishing and rebuilding firm. He has been skeptical but agreed to hear your proposal for behavioral segmentation. When you described a segment, he asked, "How am I supposed to know who these people are?" Intuitively he has addressed which of the criteria for marketing segmentation?

A) Responsive
B) Accessible
C) Measurable
D) Differentiable

Question 74

If a market segment meets only four of the five criteria, would it be a good idea to go ahead? Why? Make sure your response demonstrates your understanding of the five criteria.

Question 75

You and a friend are studying for a Marketing midterm, and she says, "I don't get why measurable is a separate criterion for marketing segments. I don't see any difference between "measurable" and "substantial." How should you explain the difference so she that can respond if this is a question asked in the exam?

A) They are related concepts, but since each of the five criteria correspond to the 5 Ps, the criteria are phrased differently.
B) Measurable is concerned with size of segments, and substantial deals with issues such as how many customers are in a segment.
C) Measurable is more objective, counting things for example, and substantial is variable, such as size of the company which would be different for small and large firms.
D) Measurable is active, derived from the verb measure, but substantial is a more passive description.

Question 76

The segments a firm develops will be the same as other competitors as the firms are operating in the same market with the same customers.

Question 77

A firm creates a number of segments based on research and applies the five criteria to determine the segments are viable. Then, it will not use some of them.

Question 78

Alison had developed a dozen segments for her firm's new product, but she felt she needed to check the company's code of ethics before targeting one of the segments. Alison's action was

A) inconsistent with good marketing practice in identifying segments with strong potential.
B) consistent with good marketing practice that suggests all actions must be reviewed to ensure they are consistent with the firm's code of ethics.
C) inappropriate as she was reflecting her own biases.
D) appropriate as some firms may want to exclude some segments on moral or ethical grounds.

Question 79

Jim needed to reduce the number of segments he had identified as his firm had limited resources and wanted to concentrate its efforts. In addition to looking at how attractive a segment appeared to be, he also needed to consider whether the segment was

A) consistent with the firm's goals and objectives.
B) supported by quantitative research.
C) consistent with the firm's communications plan to reach them.
D) being dominated by a competitor.

Question 80

Kim had launched her new enterprise-a health maintenance service for pets. Working with a marketing consultant, she identified five segments of pet owners who would be thrilled to subscribe to her new service. Her marketing consultant cautioned against tackling all five at once, suggesting that focusing on one would allow her to develop her expertise and

A) capture the next four as soon as possible.
B) concentrate her marketing resources.
C) become a strong niche player.
D) avoid attracting competitors.