Market Segmentation Assessment Answer Key

What is demographic segmentation, and why is it a popular approach for businesses according to the reading? Provide two specific examples from the reading to support your answer.

• Demographic segmentation divides the market based on characteristics like age and income; it is popular because it helps businesses target specific groups. For example, a company may market luxury cars to high-income individuals and toys to children.

• Demographic segmentation focuses on geographic location and is popular because it reduces marketing costs. For example, a business may advertise only in urban areas and ignore rural customers.

• Demographic segmentation is about customer behavior and is popular because it increases product variety. For example, a company may offer different flavors of a product based on customer feedback.

• Demographic segmentation is based on product features and is popular because it simplifies production. For example, a business may produce only one type of product for all customers.

How does Rolex use demographic segmentation to target its market? Describe the specific demographic characteristics and marketing strategies mentioned in the reading.

• By targeting young adults with affordable watches and mass advertising.

• By focusing on high-income, middle-aged professionals and using luxury branding strategies.

• By appealing to teenagers through social media influencers and discount offers.

• By marketing to senior citizens with health-focused features.

Explain how Pampers tailors its marketing using demographic segmentation. Include the target demographic and at least one specific marketing channel mentioned in the reading.

• Pampers targets parents of infants and toddlers using demographic segmentation and markets through parenting magazines.

• Pampers targets teenagers using psychographic segmentation and markets through social media influencers.

• Pampers targets elderly people using geographic segmentation and markets through television commercials.

• Pampers targets business professionals using behavioral segmentation and markets through email newsletters.

Why might demographic segmentation be particularly effective for products tied to specific life stages? Use an example from the reading to illustrate your answer.

• Because demographic segmentation allows marketers to target products to people experiencing similar life events, such as baby products for new parents.

• Because demographic segmentation focuses only on geographic location, which is important for all products.

• Because demographic segmentation is only useful for luxury products.

• Because demographic segmentation ignores life stages and focuses on personality traits.

Imagine you’re marketing a luxury car brand. Based on the reading’s discussion of demographic segmentation, which of the following would be an appropriate target demographic and marketing strategy?

• Targeting young adults aged 18-25 with budget-friendly advertisements.

• Targeting high-income professionals aged 35-55 with exclusive event invitations.

• Targeting college students with student discount offers.

• Targeting retirees with low-cost maintenance plans.

Geographic segmentation is the process of dividing a market based on which of the following factors?

• Demographic characteristics

• Geographic location and regional differences

• Psychological traits

• Product usage rates

How does Canada Goose use geographic segmentation to market its products? Include the specific regions and product type mentioned in the reading.

• By targeting cold regions like Canada and Russia with parkas

• By selling only in urban areas worldwide

• By offering lightweight jackets in tropical regions

• By focusing on online sales globally

Describe how Billabong targets its market using geographic segmentation. What specific marketing tactics and locations are highlighted in the reading?

• Billabong targets its market using geographic segmentation by focusing on coastal regions and using surf-related marketing tactics.

• Billabong targets its market using demographic segmentation by focusing on age groups and using social media marketing.

• Billabong targets its market using psychographic segmentation by focusing on lifestyle and using influencer marketing.

• Billabong targets its market using behavioral segmentation by focusing on purchase behavior and using loyalty programs.

Why is geographic segmentation useful for businesses with products tied to environmental or cultural factors?

• Because it helps businesses target customers based on location-specific needs and preferences.

• Because it allows businesses to ignore cultural differences.

• Because it eliminates the need for market research.

• Because it guarantees higher profits in all regions.

Suppose you’re launching a line of sunscreen products. Based on the reading’s discussion of geographic segmentation, which region would be an ideal target and what is one effective marketing tactic to reach consumers there?

• Targeting coastal regions with beach event sponsorships.

• Targeting mountainous regions with ski resort partnerships.

• Targeting urban areas with billboard advertising.

• Targeting rural areas with radio ads.