Question 1

Organizational characteristics concern the characteristics of buyers within the organizations that make up a business market.

Accepted Answer

A) True 
 B)False  False

Question 2

Once segments are identified, an organization selects its preferred approach to targeting. Where there are just a few market segments, this targeting approach is adopted by firms with limited resources to fund their marketing strategy. This approach is known as:___________.

Accepted Answer

A)  Undifferentiated approach. 
B)  Customized targeting strategy. 
C)  Niche marketing strategy. 
D)  Differentiated targeting approach. C

Question 3

In business to business markets, this segmentation approach is useful because it allows the drawing of sales territories around particular locations that salespersons can service easily (e.g. Scotland, Scandinavia, Western Europe etc.). This approach is known as:

Accepted Answer

A)  SIC Codes 
B)  Organizational size 
C)  Geo-targeting 
D)  Choice criteria C

Question 4

To segment consumer good and service markets we use market information we have collected classified as segmentation bases. These bases include profile, behavioural, and psychological criteria. Examples of profile criteria include:

Accepted Answer

A)  Gender, age, occupation, life stage, and benefits sought criteria. 
B)  Media usage, transaction history, age, and geo-graphics. 
C)  Demographic, lifestage, geographic, and geo-demographic criteria. 
D)  Occupation, income, product usage, and lifestyle (psychographics).

Question 5

This targeting approach recognizes that there are several market segments to target, each being attractive to the marketing organization. To exploit them, a marketing strategy is developed for each segment. This approach is referred to as:

Accepted Answer

A)  Undifferentiated targeting approach 
B)  Differentiated targeting approach 
C)  Concentrated targeting approach 
D)  Customized targeting approach

Question 6

Psychographic approaches rely on the analysis of consumers' activities, interests, and opinions to understand consumers' individual lifestyles and patterns of behaviour.

Accepted Answer

A) True 
 B)False

Question 7

Heritage and tradition is an example of an expressive positioning strategy.

Accepted Answer

A) True 
 B)False

Question 8

Hewlett Packard has developed its product range and marketing strategy to target the following user segments of computing equipment: home office users; small and medium businesses; large businesses; and health, education, and government departments. Which targeting approach have they adopted?

Accepted Answer

A)  Undifferentiated targeting approach. 
B)  Niche-marketing strategy. 
C)  Differentiated targeting approach. 
D)  Customized targeting strategy.

Question 9

Sensodyne toothpaste enables users to drink hot and cold beverages without the pain associated with sensitive teeth and gums. This is a good example of _____________ positioning strategy.

Accepted Answer

A)  product features 
B)  user 
C)  benefit 
D)  heritage

Question 10

Ultimately, managerial discretion and judgment determine which markets are selected and targeted and which others are ignored. In order for market segmentation to be effective, all segments must be:

Accepted Answer

A)  Distinct, accessible, measurable, and profitable. 
B)  Desperate, accessible, many, and profitable. 
C)  Distinct, artistic, measurable, and profitable. 
D)  Distinct, accessible, measurable, and popular.

Question 11

In order for market segmentation to be effective, all segments must be DAMP.

Accepted Answer

A) True 
 B)False

Question 12

The build-up method of market segmentation:

Accepted Answer

A)  Considers a market to consist of customers that are all different, so here the task is to find similarities. 
B)  Adopts the view that the market is considered to consist of customers which are essentially the same, so the task is to identify groups which share particular differences. 
C)  Considers that the process of market segmentation requires high levels of financial and staff support to be effective. 
D)  Considers that market segmentation is a building process that takes an organization years to master and perfect.

Question 13

A differentiated targeting strategy suits a firm selling items perceived by consumers as being relatively homogeneous.

Accepted Answer

A) True 
 B)False

Question 14

The method by which whole markets are subdivided into different segments is referred to as the STP process. STP stands for:

Accepted Answer

A)  Segmentation, Testing, and Positioning. 
B)  Selectivity, Targeting, and Positioning. 
C)  Segmentation, Targeting, and Perception. 
D)  Segmentation, Targeting, and Positioning.

Question 15

Which of the following are the two main approaches to segmenting the market?

Accepted Answer

A)  Positioning method and STP. 
B)  Profile and psychological segmentation. 
C)  Breakdown method and build-up method. 
D)  Firmo-graphics and buyer characteristics method.

Question 16

A perceptual map provides a valuable tool to help managers position products by graphically illustrating consumers' perceptions of products according to product attributes customers value.

Accepted Answer

A) True 
 B)False

Exam 5: Market Segmentation and Positioning

Organizational characteristics concern the characteristics of buyers within the organizations that make up a business market.

Once segments are identified, an organization selects its preferred approach to targeting. Where there are just a few market segments, this targeting approach is adopted by firms with limited resources to fund their marketing strategy. This approach is known as:___________.

In business to business markets, this segmentation approach is useful because it allows the drawing of sales territories around particular locations that salespersons can service easily (e.g. Scotland, Scandinavia, Western Europe etc.) . This approach is known as:

To segment consumer good and service markets we use market information we have collected classified as segmentation bases. These bases include profile, behavioural, and psychological criteria. Examples of profile criteria include:

This targeting approach recognizes that there are several market segments to target, each being attractive to the marketing organization. To exploit them, a marketing strategy is developed for each segment. This approach is referred to as:

Psychographic approaches rely on the analysis of consumers' activities, interests, and opinions to understand consumers' individual lifestyles and patterns of behaviour.

Heritage and tradition is an example of an expressive positioning strategy.

Hewlett Packard has developed its product range and marketing strategy to target the following user segments of computing equipment: home office users; small and medium businesses; large businesses; and health, education, and government departments. Which targeting approach have they adopted?

Sensodyne toothpaste enables users to drink hot and cold beverages without the pain associated with sensitive teeth and gums. This is a good example of _____________ positioning strategy.

Ultimately, managerial discretion and judgment determine which markets are selected and targeted and which others are ignored. In order for market segmentation to be effective, all segments must be:

In order for market segmentation to be effective, all segments must be DAMP.

The build-up method of market segmentation:

A differentiated targeting strategy suits a firm selling items perceived by consumers as being relatively homogeneous.

The method by which whole markets are subdivided into different segments is referred to as the STP process. STP stands for:

Which of the following are the two main approaches to segmenting the market?

A perceptual map provides a valuable tool to help managers position products by graphically illustrating consumers' perceptions of products according to product attributes customers value.