Segmenting and Targeting Markets Quiz

What is the definition of market segmentation?

• The process of creating new markets for a product

• The process of selling products to different markets

• The process of targeting individual customers

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

What are the four characteristics that define a market?

• Personality, motives, lifestyles, and geodemographics

• Location, size, density, and climate

• Needs, wants, ability, and willingness to buy

• Age, gender, income, and occupation

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

• To personalize offerings, save time, and focus on loyal customers

• To save on production and marketing, lower marketing costs, and concentrate on understanding customer needs

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

• To differentiate products, use perceptual mapping, and reposition brands

What are the four basic criteria for a segmentation scheme to be useful?

• Attribute, price and quality, product user, and competitor positioning

• Usage-rate segmentation, company characteristics, buying processes, and perceptual mapping

• Geographic, demographic, psychographic, and benefit segmentation

• Substantiality, identifiability and measurability, accessibility, and responsiveness

What is the purpose of perceptual mapping?

• To evaluate each market segment's attractiveness and select one or more to enter

• To change consumers' perceptions of a brand in relation to competing brands

• To develop a specific marketing mix to influence potential customers' overall perception

• To display the location of products, brands, or groups of products in customers' minds

What is the 80/20 principle related to?

• Multisegment targeting

• Concentrated targeting

• Usage-rate segmentation

• Product differentiation

What is the purpose of repositioning a brand?

• To evaluate each market segment's attractiveness and select one or more to enter

• To develop a specific marketing mix to influence potential customers' overall perception

• To change consumers' perceptions of a brand in relation to competing brands

• To distinguish products from those of competitors

What is the main advantage of concentrated targeting?

• Allows some small firms to better compete with larger firms

• Potential for saving on production and marketing because only one item is produced

• May lead to greater sales volume, higher profits, larger market share, and economies of scale

• Allows a firm to concentrate on understanding the needs, motives, and satisfaction of that segment's members

What is the main advantage of multisegment targeting?

• Can be more profitable than spreading resources over several different segments

• Potential for saving on production and marketing because only one item is produced

• Allows a firm to concentrate on understanding the needs, motives, and satisfaction of that segment's members

• May lead to greater sales volume, higher profits, larger market share, and economies of scale

What are the four trends that will lead to the continued growth of CRM?

• Usage-rate segmentation, company characteristics, buying processes, and perceptual mapping

• Substantiality, identifiability and measurability, accessibility, and responsiveness

• Product differentiation, perceptual mapping, repositioning, and targeting

• Personalization, time savings, loyalty, and technology