CHAPTER 7

People's diverse interests and backgrounds divide them into numerous groups with distinct needs and wants, a condition most accurately described as ________.

• market aggregation

• market positioning

• economic aggregation

• differentiation

• market fragmentation

Marketers must balance the ________ of mass marketing with the ________ of offering each individual customer exactly what he wants.

• efficiency; effectiveness

• effectiveness; efficiency

• investment; cost

• cost; investment

• positioning; scale

Which of the following statements about the steps in the target marketing process is true?

• The first step in the target marketing process is setting marketing objectives.

• There are four steps in the target marketing process.

• The second step in the target marketing process is the identification of all segmentation variables.

• The final step in the target marketing process is positioning.

• The target marketing process is not related to positioning.

Which of the following is NOT part of a target marketing strategy?

• dividing the market into segments based on customer characteristics

• identifying a market that is likely to buy a product

• selecting one or more segments as target markets

• developing a product to meet the needs of a specific market segment

• positioning a product

What are the steps, in order, of the target marketing process?

• segmentation, positioning, and targeting

• segmentation, targeting, and positioning

• targeting, segmentation, and positioning

• targeting, positioning, and segmentation

• positioning, segmentation, and targeting

Some people want healthy cereal that will help them lose weight or possibly prevent certain kinds of cancer. Some want presweetened cereal. Some want fruits and nuts in their cereal. Some people want whole wheat cereal while others want rice cereal. There are some who like hot cereal and others who like to eat their cereal right out of the box. The diversity of consumers for cereal is an example of ________.

• geodemography

• target marketing

• cultural diversity

• psychographics

• market fragmentation

Which of the following is the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics?

• acculturation

• segmentation

• market fragmentation

• targeting

• positioning

Age, gender, place of residence, and income are all examples of ________.

• segmentation variables

• positioning strategies

• market fragment strategies

• psychographics

• targeting strategies

Which of the following best defines demographics?

• statistics that can be used to segment populations on the basis of what people do with a product

• statistics that can be used to segment populations on the basis of when people use a product

• qualitative data that can be used to explain why seemingly homogeneous consumer groups do not share core characteristics

• statistics that can be used to segment populations on the basis of shared attitudes, opinions, and interests

• statistics that measure observable aspects of a population

Which of the following is NOT an example of a demographic segmentation variable?

• lifestyle

• income

• ethnic group

• gender

• age