market quiz topic 6

What is the definition of market segmentation?

• The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups

• The process of selling products to different markets

• The process of targeting individual customers

• The process of creating new markets for a product

What are the four characteristics that define a market?

• Needs, wants, ability, and willingness to buy

• Age, gender, income, and occupation

• Geographic location, climate, market size, and market density

• Product usage, lifestyle, personality, and motives

What are the three important reasons for marketers to segment markets?

• To identify groups of customers with similar needs, reduce costs, and increase profits

• To identify groups of customers with similar needs, analyze competitors, and increase market share

• To identify groups of customers with different needs, allocate resources, and increase sales

• To identify groups of customers with similar needs, design marketing mixes, and satisfy customer wants and needs

What are the four criteria that a segmentation scheme must meet to be useful?

• Substantiality, profitability, accessibility, and responsiveness

• Substantiality, identifiability and measurability, accessibility, and market share

• Substantiality, identifiability and measurability, accessibility, and responsiveness

• Substantiality, identifiability and measurability, profitability, and accessibility

Which of the following is not a basis for segmenting consumer markets?

• Geographic segmentation

• Psychographic segmentation

• Volume segmentation

• Benefit segmentation

What is the purpose of market segmentation?

• To reduce the number of market segments

• To increase production and marketing costs

• To target individual customers with customized marketing mixes

• To identify and adapt to dynamic marketing opportunities

What is the 80/20 principle in usage-rate segmentation?

• 20 percent of all customers generate 80 percent of the demand

• 20 percent of all customers generate 20 percent of the demand

• 80 percent of all customers generate 20 percent of the demand

• 80 percent of all customers generate 80 percent of the demand

What is the purpose of repositioning a product or company?

• To sustain growth in slow markets or to correct positioning mistakes

• To increase production costs and marketing efforts

• To target a new market segment

• To decrease customer engagement and loyalty

What is the definition of positioning?

• Developing a specific marketing mix to target individual customers

• Developing a specific marketing mix to increase production and marketing costs

• Developing a specific marketing mix to reduce market segments

• Developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization

What are the advantages of concentrated targeting?

• Allows a firm to concentrate on understanding the needs of a specific segment and can be more profitable

• Allows a firm to save on production and marketing costs

• Allows a firm to reach a larger market and increase market share

• Allows a firm to target individual customers with customized marketing mixes