Chapter 4: Market segmentation, targetting & positioning

Positioning is a means of displaying, in two or more dimensions, the locations of products, brands, or groups of producers in customers' minds

• True

• False

To position a product, a manufacturer must develop a marketing mix to influence potential consumer's overall image of that product.

• True

• False

Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies.

• True

• False

A firm using a concentrated targeting strategy essentially adopts a mass-market philosophy.

• True

• False

Damia produces children clothing, targeting first -time mothers in the baby boomer generation. Damia uses demographic segmentation variables.

• True

• False

A market segment is deemed to have substantiality if it contains a large numbers of potential customers.

• True

• False

Why is market segmentation a key to successful marketing strategy?

• Many groups of customers have different needs and preferences.

• It helps define customer needs and wants more precisely.

• It helps more accurately define marketing objectives and allocate resources.

• All of the above are reasons that segmentation is important to marketing strategy

Which of the following does not describe undifferentiated targeting?

• Undifferentiated targeting views the market as one big market with no individual segments

• Undifferentiated targeting is a strategy for the first firm to enter an industry

• Undifferentiated targeting selects a specific niche within which to market

• Undifferentiated targeting can save companies money on production and marketing

Consumer goods marketers commonly use one or more of the following characteristics to segment markets. The bases they use are geography, demographics, psychographics, benefits sought, and usage rate. Market segmentation on the basis of personality, motives, lifestyles and geodemographics is

• Geographic

• Demographics

• Psychographics

• Benefits sought

A manufacturer of photographic equipment segments the camera market by use: family and personal, hobbyist, professional, and scientific. In order for this segmentation scheme to be successful, all of the following criteria must be met EXCEPT:

• Substantiality

• Accessibility

• Identifiability & measurability

• Complexity