Question 1

John runs a small bottle shop in inner- city Sydney. To avoid the big price discounters he has developed relationships with local residents and provides a free delivery and pickup service when they hold parties. He has also developed a relationship with local boaties who operate cruises around the harbour. Each of these groups of customers require a slightly different product range and pricing strategy. John is engaging in:

Accepted Answer

A)  differentiated marketing. 
B)  entrepreneurship. 
C)  concentrated marketing. 
D)  undifferentiated marketing. 
E)  portfolio marketing.

Question 2

The Modern Group provides customers with a diverse range of home improvement products including, roofing, shutters, roller blinds, solar panels, pergolas and carports. A distinctive feature of all Modern products is that they include free delivery and installation. This is an example of:

Accepted Answer

A)  brand differentiation. 
B)  image differentiation. 
C)  product differentiation. 
D)  service differentiation. 
E)  personnel differentiation.

Question 3

Virgin Galactic plans to conquer outer space as the new tourist frontier by taking travellers on a four hour flight some 110 km above the earth where they will be able to experience weightlessness and see the curvature of the earth's surface. Virgin intends to charge $200,000 per flight for this experience. Virgin has identified the market for space tourism as high net worth individuals living in Scandinavia, Europe, North America and Oceania. This is an example of which type of segmentation?

Accepted Answer

A)  geographic segmentation 
B)  a combination of demographic and geographic segmentation 
C)  multi- variate demographic segmentation 
D)  demographic segmentation 
E)  none of the above

Question 4

Which of the following customer profiles uses demographic descriptors exclusively?

Accepted Answer

A)  Peter is an IT consultant earning $95,000 per year and loves reading science and technology magazines. 
B)  Bobby is at university, works part- time and has recently formed a punk rock band. 
C)  Marcia, aged 18 years, is studying for a Commerce degree and is a high achiever. 
D)  Cindy is enrolled at primary school and loves playing with her Barbie Doll. 
E)  Greg, aged 40 years, is divorced and has custody of his three dependent children.

Question 5

A manufacturer of toothpaste has segmented the market and developed distinct product offerings designed to appeal to the three different segments. One product offers all day protection from tooth decay; a second product offers whiter, brighter teeth; the third product offers all day mouth freshness and yet another product offers protection for sensitive teeth. Which approach to segmentation is the company MOST likely to have used?

Accepted Answer

A)  usage occasion 
B)  demographic segmentation 
C)  psychographic segmentation 
D)  behavioural segmentation 
E)  benefits- sought segmentation

Question 6

Geographic segmentation is not feasible for products that are used in all geographic areas of Australia.

Accepted Answer

A) True 
 B)False

Question 7

Manufacturers of the up- market motor vehicle, Lexus, target wealthy consumers with similar needs and buying behaviours, even though the consumers are located in different countries. This is an example of:

Accepted Answer

A)  geographic segmentation. 
B)  psychographic segmentation. 
C)  intermarket segmentation. 
D)  loyalty segmentation. 
E)  international marketing segmentation.

Question 8

When McDonalds restaurants develop different products for kids and adults and devises different advertising messages for each of its core market segments, it is practising which approach to segmentation?

Accepted Answer

A)  differentiated marketing 
B)  mass marketing 
C)  concentrated marketing 
D)  undifferentiated marketing 
E)  local marketing

Question 9

Briefly explain the steps in market segmentation, target and positioning.

Accepted Answer

The answer of Briefly explain the steps in market segmentation,...

Question 10

Which of the available segmentation approaches do you think is most compatible with the spirit of the marketing concept? Defend your choice.

Accepted Answer

The answer of Which of the available segmentation approaches do...

Question 11

Concentrated marketing allows a firm to develop a strong position in the segment it serves, but may also increase the risk faced by the seller.

Accepted Answer

A) True 
 B)False

Question 12

If a marketing manager segments the market into culture- oriented, sports- oriented, or outdoor- oriented groups, he or she is segmenting on the basis of:

Accepted Answer

A)  usage occasion. 
B)  psychographic lifestyle. 
C)  user status. 
D)  readiness stage. 
E)  loyalty status.

Question 13

Most marketers refuse to use gender as a segmentation variable for fear of an adverse public reaction.

Accepted Answer

A) True 
 B)False

Question 14

A technique that can be used to define important market segments more precisely and involves using more than one segmentation variable is known as:

Accepted Answer

A)  principal components analysis. 
B)  recursive partitioning. 
C)  multi- dimensional scaling segmentation. 
D)  multivariate demographic segmentation. 
E)  cluster analysis.

Question 15

Instant breakfast products are promoted as nutritional alternatives to traditional breakfasts for active people on- the- go. The producers of such products have apparently segmented on a lifestyle and/or benefits- sought basis.

Accepted Answer

A) True 
 B)False

Question 16

Mini Case 9- 1
A group of investors are thinking of starting a for- profit institution to be called Heaven University. They have identified a small segment of society that is displeased with the high cost of HECS or upfront fees and is willing to forego all social and sporting extracurricular activities in order to get an inexpensive, quality education in three years. The university investors will advertise nationally. Its target audience is individuals between 18- 40 years of age, who have either never undertaken a University degree or who failed to complete a degree commenced within the last ten years. The investors want to attract students who are currently working at a job with which they are dissatisfied. Heaven will only offer three degree programmes, which cannot be modified to individual student needs. Research has shown that these are degrees that this market segment repeatedly seeks. Students can earn their degrees over the Internet and only have to attend a one- week seminar on campus twice a year.
-Refer to Mini Case 9- 1. The investors discovered there was a segment of the population who was being passed over for promotions because they lacked a University degree. These people had always assumed getting a degree was impossible because they did not have the time to attend classes. What kind of segmentation variable BEST identifies this segment?

Accepted Answer

A)  personality 
B)  values 
C)  buyer readiness 
D)  occasion 
E)  psychographics

Question 17

Benefit segmentation may well be the most powerful segmentation approach.

Accepted Answer

A) True 
 B)False

Question 18

By segmenting the market, a firm can avoid the need for developing a variety of products and/or marketing mixes.

Accepted Answer

A) True 
 B)False

Question 19

Which positioning strategy offers consumers a "good deal" by offering comparable quality products or services at a lower price?

Accepted Answer

A)  more- for- the- same 
B)  more- for- less 
C)  less- for- much- less 
D)  same- for- less 
E)  all- or- nothing

Question 20

Although the seller actively seeks to influence the process, the product's position is ultimately defined by the consumer.

Accepted Answer

A) True 
 B)False

Exam 9: Market Segmentation, Targeting and Positioning

The Modern Group provides customers with a diverse range of home improvement products including, roofing, shutters, roller blinds, solar panels, pergolas and carports. A distinctive feature of all Modern products is that they include free delivery and installation. This is an example of:

Which of the following customer profiles uses demographic descriptors exclusively?

Geographic segmentation is not feasible for products that are used in all geographic areas of Australia.

Manufacturers of the up- market motor vehicle, Lexus, target wealthy consumers with similar needs and buying behaviours, even though the consumers are located in different countries. This is an example of:

When McDonalds restaurants develop different products for kids and adults and devises different advertising messages for each of its core market segments, it is practising which approach to segmentation?

Briefly explain the steps in market segmentation, target and positioning.

Which of the available segmentation approaches do you think is most compatible with the spirit of the marketing concept? Defend your choice.

Concentrated marketing allows a firm to develop a strong position in the segment it serves, but may also increase the risk faced by the seller.

If a marketing manager segments the market into culture- oriented, sports- oriented, or outdoor- oriented groups, he or she is segmenting on the basis of:

Most marketers refuse to use gender as a segmentation variable for fear of an adverse public reaction.

A technique that can be used to define important market segments more precisely and involves using more than one segmentation variable is known as:

Instant breakfast products are promoted as nutritional alternatives to traditional breakfasts for active people on- the- go. The producers of such products have apparently segmented on a lifestyle and/or benefits- sought basis.

Benefit segmentation may well be the most powerful segmentation approach.

By segmenting the market, a firm can avoid the need for developing a variety of products and/or marketing mixes.

Which positioning strategy offers consumers a "good deal" by offering comparable quality products or services at a lower price?

Although the seller actively seeks to influence the process, the product's position is ultimately defined by the consumer.