Test Bank Ch5 Market Segmentation And Positioning

Chapter 5: Market segmentation and positioning

Test Bank

Type: multiple choice question

Title: Chapter 05 Question 01

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

a. Segmentation, Testing, and Positioning.

enhancing a company’s competitive position by providing direction and focus for marketing strategies;

examining and identifying growth opportunities in the market through the identification of new customers, growth segments or new product uses;

more effective and efficient matching of company resources to targeted market segments promising the greatest ROMI.

b. Selectivity, Targeting, and Positioning.

enhancing a company’s competitive position by providing direction and focus for marketing strategies;

examining and identifying growth opportunities in the market through the identification of new customers, growth segments or new product uses;

more effective and efficient matching of company resources to targeted market segments promising the greatest ROMI.

c. Segmentation, Targeting, and Perception.

enhancing a company’s competitive position by providing direction and focus for marketing strategies;

examining and identifying growth opportunities in the market through the identification of new customers, growth segments or new product uses;

more effective and efficient matching of company resources to targeted market segments promising the greatest ROMI.

d. Segmentation, Targeting, and Positioning.

enhancing a company’s competitive position by providing direction and focus for marketing strategies;

examining and identifying growth opportunities in the market through the identification of new customers, growth segments or new product uses;

more effective and efficient matching of company resources to targeted market segments promising the greatest ROMI.

Type: multiple choice question

Title: Chapter 05 Question 02

2) 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. Practiced by both profit-oriented and not-for-profit organizations.

Type: multiple choice question

Title: Chapter 05 Question 03

3) The build-up method of market segmentation:

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.

Type: multiple choice question

Title: Chapter 05 Question 04

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:

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).

Type: multiple choice question

Title: Chapter 05 Question 05

5) 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-seat people carrier.

d. A high-end home entertainment centre.

Type: multiple choice question

Title: Chapter 05 Question 06

6) 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:

a. Distinct, accessible, measurable, and profitable.

Distinct – is each segment clearly different from other segments? If so, different marketing mixes, to use the traditional approach to marketing, 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. Desperate, accessible, many, and profitable.

Distinct – is each segment clearly different from other segments? If so, different marketing mixes, to use the traditional approach to marketing, 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?

c. Distinct, artistic, measurable, and profitable.

Distinct – is each segment clearly different from other segments? If so, different marketing mixes, to use the traditional approach to marketing, 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?

d. Distinct, accessible, measurable, and popular.

Distinct – is each segment clearly different from other segments? If so, different marketing mixes, to use the traditional approach to marketing, 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?

Type: multiple choice question

Title: Chapter 05 Question 07

7) 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:

a. Undifferentiated targeting approach

b. Differentiated targeting approach

c. Concentrated targeting approach

d. Customized targeting approach

Type: multiple choice question

Title: Chapter 05 Question 08

8) ‘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 05 Question 09

9) The objective of positioning is which of the following?

a. The objective is to create and maintain a distinctive place in the customers mind for a company and/or its products.

b. The objective is to secure the most effective and efficient placement for one’s products on retailers’ shelf space.

c. The objective is to increase sales toward a competing product.

d. None of the above options is correct.

Type: multiple choice question

Title: Chapter 05 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 05 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 05 Question 12

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

a. True

b. False

Type: true-false

Title: Chapter 05 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 05 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 05 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 05 Question 16

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

a. True

b. False

Type: true-false

Title: Chapter 05 Question 17

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

a. True

b. False

Type: true-false

Title: Chapter 05 Question 18

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

a. True

b. False

Type: true-false

Title: Chapter 05 Question 19

19) 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.

a. True

b. False

Type: true-false

Title: Chapter 05- Question 20

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

a. True

b. False

Type: multiple choice question

Title: Chapter 05 Question 21

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

a. Positioning method and STP.

b. Profile and psychological segmentation.

c. Breakdown method and build-up method.

d. Firmo-graphics and buyer characteristics method.

Type: multiple choice question

Title: Chapter 05 Question 22

22) 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:___________.

a. Undifferentiated approach.

b. Customized targeting strategy.

c. Niche marketing strategy.

d. Differentiated targeting approach.

Type: multiple choice question

Title: Chapter 05 Question 23

23) 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?

a. Undifferentiated targeting approach.

b. Niche-marketing strategy.

c. Differentiated targeting approach.

d. Customized targeting strategy.

Type: multiple choice question

Title: Chapter 05 Question 24

24) 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:

a. SIC Codes

b. Organizational size

c. Geo-targeting

d. Choice criteria

Type: multiple choice question

Title: Chapter 05 Question 25

25) 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.

a. product features

b. user

c. benefit

d. heritage