Question 1

What is the first step in developing a target market?

Accepted Answer

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.E) B) and C)
F) None of the above

Question 2

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

Accepted Answer

A)   Measurable
B)   Substantial
C)   Responsive
D)   MarketableE) All of the above
F) None of the above D

Question 3

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?

Accepted Answer

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.E) C) and D)
F) B) and D)

Question 4

Provide two real examples of a company repositioning a brand.

Accepted Answer

Responses will vary. Some examples inclu...

Question 5

A target market is

Accepted Answer

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.E) None of the above
F) A) and B)

Question 6

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

Accepted Answer

A)   5
B)   6
C)   7
D)   8E) A) and B)
F) A) and C)

Question 7

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.

Accepted Answer

A segment must satisfy each of the five criteria, and if it fails to meet one of them, it is not acceptable to go forward. Student answers should include some acknowledgement of the purposes of the five criteria.

Question 8

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.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

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.E) None of the above
F) A) and D)

Question 10

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?

Accepted Answer

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.E) A) and B)
F) C) and D) A

Question 11

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

Accepted Answer

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 categoryE) None of the above
F) A) and B)

Question 12

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?

Accepted Answer

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.E) A) and D)
F) A) and C)

Question 13

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

Accepted Answer

A)   geographic segmentation.
B)   demographic segmentation.
C)   psychographic segmentation.
D)   behavioral segmentation.E) B) and C)
F) All of the above

Question 14

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?

Accepted Answer

A)   Density
B)   Region
C)   Size
D)   StateE) B) and C)
F) A) and C)

Question 15

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

Accepted Answer

A)   5
B)   4
C)   2
D)   3E) None of the above
F) B) and C)

Question 16

If a marketer has examined the competitive landscape and has accurate and comprehensive data, why is a perceptual map useful?

Accepted Answer

Answers may vary and should reflect an u...

Question 17

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?

Accepted Answer

A)   Psychographic
B)   Lifestyle
C)   Demographic
D)   BehavioralE) A) and B)
F) A) and C)

Question 18

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

Accepted Answer

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.E) All of the above
F) C) and D)

Question 19

Perceptual maps are particularly useful as they establish positions relevant to all the markets in which the company is operating.

Accepted Answer

A) True 
 B)False

Question 20

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?

Accepted Answer

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 categoryE) A) and B)
F) C) and D)

Exam 6: Segmentation, Targeting, and Positioning

What is the first step in developing a target market?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedD

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?

Correct AnswerverifiedShow Answer

Provide two real examples of a company repositioning a brand.

Correct AnswerverifiedResponses will vary. Some examples inclu...View AnswerShow Answer

A target market is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedA segment must satisfy each of the five criteria, and if it fails to meet one of them, it is not acceptable to go forward. Student answers should include some acknowledgement of the purposes of the five criteria.

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If a marketer has examined the competitive landscape and has accurate and comprehensive data, why is a perceptual map useful?

Correct AnswerverifiedAnswers may vary and should reflect an u...View AnswerShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Perceptual maps are particularly useful as they establish positions relevant to all the markets in which the company is operating.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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A segment must satisfy each of the five criteria, and if it fails to meet one of them, it is not acceptable to go forward. Student answers should include some acknowledgement of the purposes of the five criteria.

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