Complete Test Bank Ch8 - Market Segmentation And Positioning

Chapter 08 - Market segmentation and positioning

Test Bank

Type: multiple choice question

Title: Chapter 08 Question 01

01) The method by which whole markets are subdivided into different segments to allocate marketing programme activity is referred to as:

a. the PESTLE process

b. the DAMP process

c. the SWOT process

d. the STP process

Type: multiple choice question

Title: Chapter 08 Question 02

02) Marketing segmentation is:

a. the process of dividing the total market into several heterogeneous groups.

b. the process of bringing several small, unreachable segments into a definable market segment.

c. an attempt to reach all consumers with a single marketing mix.

d. practised by both profit-oriented and not-for-profit organizations.

Type: multiple choice question

Title: Chapter 08 Question 03

03) Whilst market segmentation is a useful process for organizations to divide customers into distinct groups for resource allocation purposes, it has been criticized for the following reasons except:

a. It is clear how valuable segmentation is to managers.

b. The process approximates offerings to the needs of customer groups, rather than individuals.

c. There is insufficient consideration of how market segmentation is linked to competitive advantage.

d. It is not clear how valuable segmentation is to managers.

Type: multiple choice question

Title: Chapter 08 Question 04

04) An example of a segmented market would be:

a. Honda separating its potential customers into economy car buyers and luxury car buyers.

b. a garden nursery seeing residents of urban areas and rural areas as one market needing trees.

c. high-income and low-income consumers being treated the same at Marks and Spencer (M&S).

d. Phillips marketing its product to all residents of the European Union with one marketing mix based on the concept ‘Sense and Sensibility’.

Type: multiple choice question

Title: Chapter 08 Question 05

05) Using the family lifecycle concept, which of the following items would be least likely to be marketed to a young single working adult who is still living at home?

a. A recently released portable music device (e.g. Apple iPod).

b. The latest trends in fashion clothing.

c. A new top of the range seven-seater people carrier.

d. A high-end home entertainment centre.

Type: multiple choice question

Title: Chapter 08 Question 06

06) Before beginning the market segmentation process, a firm should: _________________

a. identify bases for segmenting markets

b. select target market segments

c. forecast market share

d. forecast total market potential

Type: multiple choice question

Title: Chapter 08 Question 07

07) Key variables concern age, sex/gender or gender identity, occupation, level of education, religion, social class, and income characteristics. This is _______ ___ segmentation criterion.

a. demographic

b. lifestage

c. psychographic

d. income

Type: multiple choice question

Title: Chapter 08 Question 08

08) ‘Positioning is the means by which goods and services can be differentiated from one another and so give consumers a reason to buy’. Positioning encompasses:

a. the physical attributes and the functionality that a brand offers.

b. how customers perceive the brand relative to other competing brands in the market place.

c. the intangible attributes that a brand offers. For example, the reputation, prestige and allure that the brand generates.

d. all of the above options are correct.

Type: multiple choice question

Title: Chapter 08 Question 09

09) ____________ can be used to position brands either functionally or expressively.

a. Marketing communications

b. Marketing planning

c. Marketing research

d. Marketing orientation

Type: multiple choice question

Title: Chapter 08 Question 10

10) Marketing communications can be used in one of two main ways to position brands, namely to position a brand either functionally or expressively (symbolically). Examples of expressive positioning strategies include:

a. positioning based on the product or brands price.

b. positioning based on the product or brands features.

c. positioning based on the use of products.

d. positioning based on the product or brand heritage.

Type: true-false

Title: Chapter 08 Question 11

11) A customized targeting strategy predominates in B2B markets (e.g. marketing research or advertising services) or consumer markets with high-value, highly customized products (e.g. purchase of a custom-made car).

a. True

b. False

Type: true-false

Title: Chapter 08 Question 12

12) Standard Industrial Classification (SIC) codes are used to designate similar industrial markets.

a. True

b. False

Type: true-false

Title: Chapter 08 Question 13

13) The method by which whole markets are subdivided into different segments is referred to as the STP process. This stands for Segmenting, Testing and Positioning.

a. True

b. False

Type: true-false

Title: Chapter 08 Question 14

14) The division of the total market into smaller, relatively homogeneous groups is called market selectivity.

a. True

b. False

Type: true-false

Title: Chapter 08 Question 15

15) To segment consumer markets, markets can be classified according to behavioural, psychological and profile criteria. Demographic data is an example of psychological criteria for segmentation.

a. True

b. False

Type: true-false

Title: Chapter 08 Question 16

16) The benefits sought approach is based on the principle that we should provide customers with exactly what they want, based on the benefits derived from using a particular proposition.

a. True

b. False

Type: true-false

Title: Chapter 08 Question 17

17) Organizational characteristics, such as organizational size and location, are sometimes referred to as firmographics.

a. True

b. False

Type: true-false

Title: Chapter 08 Question 18

18) A concentrated marketing strategy (or niche marketing strategy) is used where there are only a few market segments.

a. False

b. True

Type: true-false

Title: Chapter 08 Question 19

19) Perceptual mapping data reveal strengths and weaknesses that can help management to make strategic decisions about how to differentiate based on the attributes that matter the most to customers.

a. True

b. False

Type: true-false

Title: Chapter 08 Question 20

20) Mainstream brands tend to spring to mind when consumers think of the category.

a. True

b. False

Type: multiple choice question

Title: Chapter 08 Question 21

21) This is the division of a market into different groups of customers with distinctly similar needs and offering requirements.

a. Targeting

b. Segregation

c. Segmentation

d. Breakdown

Type: multiple choice question

Title: Chapter 08 Question 22

22) The ________ is customer-oriented, seeking to determine common customer needs and to identify market segments between which identifiable differences exist—segment heterogeneity—but within which similarities exist between members—member homogeneity.

a. market segmentation

b. breakdown method.

c. build-up method.

d. business markets.

Type: multiple choice question

Title: Chapter 08 Question 23

23) Understanding the complexity associated with the different attributes and brands can be made easier by developing a visual representation of each market known as:

a. Mind mapping

b. Marketing mapping

c. Perceptual mapping

d. Geographic mapping

Type: multiple choice question

Title: Chapter 08 Question 24

10) In business to business markets, businesses may fail to overcome barriers encountered when implementing their segmentation plans. What are the identified barriers?

a. Process issues, lack of sales force, and lack of evaluation mechanism.

• Infrastructure barriers - culture, structure, and the availability of resources prevent the segmentation process from ever starting, e.g. there may be a lack of financial resource or political will to collect the market data necessary for a segmentation programme, or an organizational culture might be rigidly product oriented.
• Process issues - lack of experience, guidance, and expertise can hamper how segmentation is undertaken and managed.
• Implementation barriers - once a new segmentation model is determined, how do organizations move towards a new segmentation model? This may require a move away from a business model based on products (e.g. engine sizes for fleet buyers), to one based on customer needs.

b. Infrastructure barriers, lack of market research, and lack of evaluation mechanism.

• Infrastructure barriers - culture, structure, and the availability of resources prevent the segmentation process from ever starting, e.g. there may be a lack of financial resource or political will to collect the market data necessary for a segmentation programme, or an organizational culture might be rigidly product oriented.
• Process issues - lack of experience, guidance, and expertise can hamper how segmentation is undertaken and managed.
• Implementation barriers - once a new segmentation model is determined, how do organizations move towards a new segmentation model? This may require a move away from a business model based on products (e.g. engine sizes for fleet buyers), to one based on customer needs.

c. Infrastructure barriers, process issues, and implementation barriers.

• Infrastructure barriers - culture, structure, and the availability of resources prevent the segmentation process from ever starting, e.g. there may be a lack of financial resource or political will to collect the market data necessary for a segmentation programme, or an organizational culture might be rigidly product oriented.
• Process issues - lack of experience, guidance, and expertise can hamper how segmentation is undertaken and managed.
• Implementation barriers - once a new segmentation model is determined, how do organizations move towards a new segmentation model? This may require a move away from a business model based on products (e.g. engine sizes for fleet buyers), to one based on customer needs.

d. Implementation barrier, lack of commitment from managers, and lack of positioning approach.

• Infrastructure barriers - culture, structure, and the availability of resources prevent the segmentation process from ever starting, e.g. there may be a lack of financial resource or political will to collect the market data necessary for a segmentation programme, or an organizational culture might be rigidly product oriented.
• Process issues - lack of experience, guidance, and expertise can hamper how segmentation is undertaken and managed.
• Implementation barriers - once a new segmentation model is determined, how do organizations move towards a new segmentation model? This may require a move away from a business model based on products (e.g. engine sizes for fleet buyers), to one based on customer needs.

Type: multiple choice question

Title: Chapter 08 Question 25

25) ACORN breaks people into groups based on the postcodes within which they live, based on the following categories, except:

a. Affluent Achievers

1 Affluent Achievers

2 Rising Prosperity

3 Comfortable Communities

4 Financially Stretched

5 Urban Adversity

6 Not Private Households

b. Comfortable Communities

1 Affluent Achievers

2 Rising Prosperity

3 Comfortable Communities

4 Financially Stretched

5 Urban Adversity

6 Not Private Households

c. Rural Adversity

1 Affluent Achievers

2 Rising Prosperity

3 Comfortable Communities

4 Financially Stretched

5 Urban Adversity

6 Not Private Households

d. Not Private Households

1 Affluent Achievers

2 Rising Prosperity

3 Comfortable Communities

4 Financially Stretched

5 Urban Adversity

6 Not Private Households

Type: true-false

Title: Chapter 08 Question 26

26) For market segmentation to be effective, the elements can be applied (Kotler, 1984), comprising the following four criteria:

Distinct, Accessible, Measurable, Assurance.

a. True

• Distinct—Is each segment clearly different from other segments? If so, different marketing mixes will be necessary.
• Accessible—Can buyers be reached through appropriate promotional programmes and distribution channels?
• Measurable—Is the segment easy to identify and measure?
• Profitable—Is the segment sufficiently large to provide a stream of constant future revenues and profits?

b. False

• Distinct—Is each segment clearly different from other segments? If so, different marketing mixes will be necessary.
• Accessible—Can buyers be reached through appropriate promotional programmes and distribution channels?
• Measurable—Is the segment easy to identify and measure?
• Profitable—Is the segment sufficiently large to provide a stream of constant future revenues and profits?