Market segmentation essay questions and answers

CHAPTER 7 MARKET SEGMENTATION, TARGETING, AND POSITIONING MCQs

CHAPTER 7

MARKET SEGMENTATION, TARGETING, AND POSITIONING

FOR COMPETITIVE ADVANTAGE

MULTIPLE CHOICE QUESTIONS

1. At one time, firms scattered their marketing efforts (a “shotgun” approach) to reach

consumers. Today, a firm is more likely to use:

a. a “bazooka” approach, where special effects are used to “explode” into the buyer’s

consciousness.

b. a “knife” approach, where the firm tries to “cut” to the most important product

advantage.

c. a “rifle” approach, where the firm focuses on the buyers who have greater

interest in the values that the firm creates best.

d. a “pistol” approach, where the firm realizes that it has multiple chances to gain

consumer interest.

2. ________________ is the process of dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors who might require separate products or marketing mixes.

a. Mass marketing

b. Market segmentation

c. Target marketing

d. Market positioning

3. __________________ is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

a. Mass marketing

b. Market segmentation

c. Market targeting

d. Market positioning

4. Setting the competitive positioning for the product and creating a detailed marketing mix is called:

a. mass marketing.

b. target marketing.

c. market segmentation.

d. marketing positioning.

5. During which step of the marketing segmentation, targeting, and positioning process

does the firm “develop a marketing mix for each segment?”

a. market segmentation

b. market targeting

c. market positioning

d. The firm does not go through the “development” during any of the above steps.

6. During one of the steps in the marketing segmentation, targeting, and positioning

process, the marketer develops measures of segment attractiveness. This procedure

belongs in the category of:

a. market segmentation.

b. market targeting.

c. market massing.

d. market positioning.

7. When companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently with products and services that match their unique needs, they are conducting a ___________________ process.

a. marketing aggregation

b. marketing positioning

c. marketing target

d. marketing segmentation

8. Market segmentation can be carried out at several different levels. Which of the

following WOULD NOT BE among these levels?

a. micromarketing

b. segment marketing

c. competition marketing

d. niche marketing

9. Another word for complete segmentation is:

a. macromarketing.

b. micromarketing.

c. niche marketing.

d. mass marketing.

10. For most of the 20th century, firms practiced which of the following forms of

marketing?

a. mass marketing

b. micromarketing

c. niche marketing

d. segment marketing

11. Which of the following marketers epitomized the mass marketing strategy?

a. Henry Ford

b. Bill Gates

c. F.W. Woolworth

d. Thomas A. Edison

12.Which of the following statements is closest to the traditional argument for mass marketing?

a. Find a need and fill it.

b. The largest potential market can lead to the lowest costs, which translates into either lower prices or higher margins.

c. The rifle approach rarely hits what it is aiming at.

d. The consumer is king. Long live the king.

13.Isolating broad segments that make up a market and adapting the marketing to match the needs of one or more segments is called _________________.

a. niche marketing

b. mass marketing

c. segment marketing

d. micromarketing

14.When General Motors designs specific models for different income and age groups, it is practicing which of the following marketing formats?

a. micromarketing

b. macromarketing

c. mass marketing

d. segment marketing

15.Segment marketing offers several benefits over mass marketing. All of the following would be among those benefits EXCEPT:

a. the company can market more efficiently and target its programs toward only those consumers that it can serve best.

b. the company can fine-tune its programs to meet the needs of carefully defined segments.

c. the company can reduce costs because of the ability to sell to customers one-on-one.

d. the company may face fewer competitors if fewer competitors are focusing on the company’s chosen market segment.

16.A company is practicing ________________ if it focuses on subsegments with distinctive traits that may seek a special combination of benefits.

a. micromarketing

b. niche marketing

c. mass marketing

d. segment marketing

17.As an example of _______________, a company could build sport utility vehicles and direct marketing efforts towards the luxury SUV market (as does Lexus).

a. micromarketing

b. niche marketing

c. mass marketing

d. segment marketing

18. American Express offers not only its traditional green cards but also gold cards,

corporate cards, and even a black card, called the Centurian, with a $1,000 annual

fee aimed at a small group of “superpremium customers.” Which of the following

marketing efforts is American Express following with their credit card policies?

a. macromarketing

b. segment marketing

c. niche marketing

d. self-marketing

19._________________ is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.

a. Niche marketing

b. Micromarketing

c. Segment marketing

d. Mass marketing

20. Micromarketing includes:

a. segment marketing and niche marketing.

b. mass marketing and demographic marketing.

c. local marketing and individual marketing.

d. individual marketing and self-marketing.

21. ______________ involves tailoring brands and promotions to the needs and wants of specific small groups such as cities, neighborhoods, and even specific stores.

a. Niche marketing

b. Local marketing

c. Detail marketing

d. Individual marketing

22.All of the following are considered to be drawbacks of local marketing EXCEPT:

a. it can drive up manufacturing and marketing costs by reducing economies of scale.

b. it can create logistical problems when the company tries to meet varied requirements.

c. it can attract unwanted competition.

d. it can dilute the brand’s overall image.

23.________________ is tailoring products and marketing programs to the needs and preferences of individual customers.

a. Niche marketing

b. Local marketing

c. Self-marketing marketing

d. Individual marketing

24. Individual marketing is known by a variety of names. All of the following would

appropriately be called individual marketing EXCEPT:

a. mono-marketing.

b. one-to-one marketing.

c. customized marketing.

d. markets-of-one marketing.

25.______________ is the process through which firms interact one-to-one with

masses of customers to create customer-unique value by designing products and

services tailor-made to individual needs.

a. Mass marketing

b. Detail marketing

c. Mass globalization

d. Mass customization