Chapter 5 Flashcards
What is the primary goal of market segmentation?
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To increase the marketing budget
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To create products for everyone
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To identify groups of potential buyers with similar characteristics
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To ignore the needs of specific groups
To identify groups of potential buyers with similar characteristics
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What is targeted marketing also known as?
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Mass marketing
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Undifferentiated marketing
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Differentiated marketing
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Laser marketing
Differentiated marketing
What does mass marketing involve?
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Customising products for different customers
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Focusing on specific customer segments
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Selling the same product to all consumers
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Ignoring potential customers
Selling the same product to all consumers
Which of the following is a benefit of targeted marketing for firms?
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Requires more resources to market products to everyone
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Ensures that every product is right for each and every consumer
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Allows firms to focus their efforts on customers most likely to buy their products
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Makes the least people happy
Allows firms to focus their efforts on customers most likely to buy their products
What is one-to-one marketing?
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A mass marketing approach
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A strategy of untargeting unprofitable customers
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Forming close, personal relationships with customers and giving them exactly what they want
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Ignoring potential customers
Forming close, personal relationships with customers and giving them exactly what they want
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What is a segmentation base?
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A marketing budget
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Criteria used to classify and divide buyers into different groups
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A type of product
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A PowerPoint slide
Criteria used to classify and divide buyers into different groups
Which of the following is NOT a segmentation category?
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Behavioural
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Demographic
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Geographic
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Technographic
Technographic
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What is benefits segmentation?
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Segmenting buyers based on their income
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Dividing the market into groups based on the benefits sought by consumers
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Segmenting buyers by their location
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Grouping customers by age
Dividing the market into groups based on the benefits sought by consumers
How do firms use customer lifetime value (CLV)?
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To segment the market based on location
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To segment the market based on age
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To segment the market based on generation
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To divide their market into segments based on CLV and market to each segment differently
To divide their market into segments based on CLV and market to each segment differently
What is geographic segmentation?
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Segmenting buyers based on lifestyle
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Segmenting buyers by where they are located
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Segmenting buyers by profession
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Segmenting buyers by activities
Segmenting buyers by where they are located
What is geocoding?
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Dividing market into areas based on opinions
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Dividing market into areas based on climate
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The process of plotting geographic marketing information on a map
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Dividing market into areas based on ethnicity
The process of plotting geographic marketing information on a map
What is psychographic segmentation?
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Segmenting people based on their income
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Segmenting people by their activities, interests, opinions, attitudes, values, and lifestyles
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Segmenting people based on their age
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Segmenting people based on their jobs
Segmenting people by their activities, interests, opinions, attitudes, values, and lifestyles
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.
What is consumer insight?
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An understanding of consumers that results when quantitative information is ignored
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An understanding of consumers that results when both quantitative and qualitative information are gathered about them
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An understanding of consumers that results when quantitative information is gathered
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An understanding of consumers that results when qualitative information is gathered
An understanding of consumers that results when both quantitative and qualitative information are gathered about them
Which of the following is NOT a characteristic of an attractive target market?
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It’s sizeable enough to be profitable, given operating costs
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It’s accessible, or you can find a way to reach it
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It is already swamped by competitors and you have no way of standing out
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You have the resources to compete in it
It is already swamped by competitors and you have no way of standing out
What does concentrated marketing involve?
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Ignoring a select group of customers
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Marketing to a select group of global markets
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Targeting a very select group of customers
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Ignoring economic fluctuations
Targeting a very select group of customers
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What is microtargeting?
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A broad marketing strategy
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An effort to “super target” consumers by gathering all kinds of data available on people
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A marketing strategy only in global markets
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A marketing strategy not used by any global markets
An effort to “super target” consumers by gathering all kinds of data available on people
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What is positioning?
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How consumers view a product relative to the competition
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How companies view a product relative to another product
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How companies view a product relative to consumer reviews
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How a consumer buys a product
How consumers view a product relative to the competition
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What is a perceptual map?
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A two-dimensional graph that visually shows where a product stands, or should stand, relative to its competitors
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A marketing strategy in global markets
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A catchphrase designed to sum up the essence of a product
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A way to head-to-head compete with competitors
A two-dimensional graph that visually shows where a product stands, or should stand, relative to its competitors
What is a tagline designed to do?
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Sum up the essence of a product
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Make marketing messy and difficult
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Show that a business is the same as another business
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Target a global market for success
Sum up the essence of a product
A small start-up is launching a new line of organic baby food. They have limited resources and need to identify their ideal customer. Which of the following segmentation approaches would be MOST effective for them to use initially?
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a) Demographic segmentation, focusing on families with young children and specific income levels.
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b) Geographic segmentation, targeting urban areas with health-conscious consumers.
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c) Psychographic segmentation, appealing to consumers who value sustainability and ethical sourcing.
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d) Mass marketing, attempting to reach as many consumers as possible with a single message.
a) Demographic segmentation, focusing on families with young children and specific income levels
2.
A luxury car manufacturer is considering how to price a new electric vehicle. They want to maintain their brand image and maximize profits. Which pricing strategy would be MOST appropriate?
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a) Penetration pricing, to gain market share quickly.
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b) Competitive pricing, matching the prices of other electric vehicles.
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c) Skimming pricing, to capture early adopters willing to pay a premium.
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d) Cost-plus pricing, adding a standard markup to the production cost.
c) Skimming pricing, to capture early adopters willing to pay a premium
A regional coffee chain is facing increasing competition from national brands. They want to create a stronger connection with their loyal customers. Which of the following marketing tactics would be MOST effective?
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a) Launching a national advertising campaign to increase brand awareness.
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b) Implementing a customer loyalty program to reward repeat purchases and gather data on customer preferences.
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c) Lowering prices to match the competition.
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d) Expanding into new geographic markets.
b) Implementing a customer loyalty program to reward repeat purchases and gather data on customer preferences
A business-to-business (B2B) software company is trying to reach potential clients in the healthcare industry. Which of the following approaches would be MOST effective in generating leads?
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a) Running social media ads on platforms like TikTok and Instagram.
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b) Attending industry-specific trade shows and conferences to network with potential clients.
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c) Sending out mass emails with generic product information.
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d) Offering free products with limited functionality to individual consumers.
b) Attending industry-specific trade shows and conferences to network with potential clients
A company selling athletic apparel is looking to reposition its brand to appeal to a broader audience, including casual wearers as well as athletes. Which of the following strategies would be MOST effective?
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a) Focusing solely on performance-enhancing features in their advertising.
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b) Lowering prices to compete with discount retailers.
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c) Highlighting the comfort, style, and versatility of their clothing in marketing campaigns.
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d) Discontinuing their lines of athletic wear to focus exclusively on casual clothing.
c) Highlighting the comfort, style, and versatility of their clothing in marketing campaigns.
A marketing manager is tasked with developing a marketing plan for a new product. Which of the following should be included in the marketing plan?
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a) Executive summary, business challenge, market analysis, value proposition and strategy, budget, and conclusion.
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b) Product features, pricing details, and promotional offers.
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c) Competitor analysis, market trends, and customer demographics.
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d) Mission statement, objectives, and financial goals.
a) Executive summary, business challenge, market analysis, value proposition and strategy, budget, and conclusion
Which of the following is an example of behavioural segmentation?
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a) Targeting customers based on their age and income.
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b) Grouping customers by their geographic location.
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c) Dividing customers based on their product usage rate and benefits sought.
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d) Segmenting customers based on their lifestyles and values.
c) Dividing customers based on their product usage rate and benefits sought
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Which of the following is a key aspect of one-to-one marketing?
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a) Selling the same product to all consumers.
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b) Mass advertising to reach a broad audience.
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c) Customising products and marketing messages for individual customers.
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d) Targeting customers based on demographic data.
c) Customising products and marketing messages for individual customers.
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A company is trying to understand how customers perceive its brand compared to competitors. Which tool would be MOST helpful?
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a) SWOT analysis.
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b) Perceptual map.
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c) Marketing audit.
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d) Sales force composite.
b) Perceptual map.
What is the purpose of market research?
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a) To increase sales and profits immediately.
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b) To create catchy advertising slogans.
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c) To gather information to solve marketing problems and identify opportunities.
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d) To reduce the cost of marketing campaigns.
c) To gather information to solve marketing problems and identify opportunities
A company selling luxury watches wants to reach high-income individuals who value exclusivity and craftsmanship. Which marketing channel would be MOST effective?
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a) Social media advertising on platforms like TikTok.
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b) Television commercials during prime-time shows.
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c) Print advertisements in high-end lifestyle magazines and sponsorships of exclusive events.
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d) Email marketing campaigns with promotional discounts.
c) Print advertisements in high-end lifestyle magazines and sponsorships of exclusive events
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A local bakery wants to increase its customer base and create a buzz around its new line of vegan pastries. Which of the following marketing tactics would be MOST appropriate?
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a) Running print ads in the local newspaper.
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b) Offering discounts on traditional baked goods.
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c) Hosting a tasting event and partnering with local vegan influencers on social media.
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d) Focusing solely on word-of-mouth marketing.
c) Hosting a tasting event and partnering with local vegan influencers on social media
A business-to-consumer (B2C) e-commerce company wants to improve its website’s user experience and increase conversion rates. Which of the following strategies would be MOST effective?
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a) Adding more product images and descriptions.
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b) Implementing a customer loyalty program.
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c) Conducting A/B testing on different website layouts and calls to action.
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d) Lowering prices to match competitors.
c) Conducting A/B testing on different website layouts and calls to action.
A non-profit organisation wants to raise awareness about its cause and attract more donors. Which of the following marketing approaches would be MOST effective?
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a) Running generic advertisements with no specific call to action.
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b) Focusing solely on direct mail campaigns.
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c) Sharing compelling stories of beneficiaries on social media and partnering with influencers.
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d) Organising large-scale fundraising events with high overhead costs.
c) Sharing compelling stories of beneficiaries on social media and partnering with influencers
A company selling eco-friendly cleaning products wants to differentiate itself from competitors and appeal to environmentally conscious consumers. Which of the following strategies would be MOST effective?
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a) Lowering prices to compete with traditional cleaning products.
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b) Focusing solely on product features in its advertising.
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c) Highlighting its sustainable sourcing, manufacturing processes, and packaging in marketing campaigns.
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d) Targeting only consumers already using eco-friendly products.
c) Highlighting its sustainable sourcing, manufacturing processes, and packaging in marketing campaigns
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A marketing manager needs to determine the best way to allocate the advertising budget. Which of the following should be considered?
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a) What the competition is doing.
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b) The target audience and which media they use.
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c) The objectives of the advertising campaign.
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d) All of the above.
d) All of the above.
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Which of the following is an example of geographic segmentation?
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a) Targeting customers based on their income and education.
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b) Grouping customers by their lifestyles and values.
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c) Dividing customers based on their product usage rate.
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d) Targeting customers in specific regions or cities with tailored marketing messages.
d) Targeting customers in specific regions or cities with tailored marketing messages
A company is trying to determine how best to reach and engage with their target audience on social media. Which of the following is most important?
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a) Posting frequently with generic content.
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b) Creating a large number of followers.
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c) Understanding which platforms their audience uses and tailoring content to each platform.
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d) Using automated bots to generate comments and likes.
c) Understanding which platforms their audience uses and tailoring content to each platform
A retailer wants to understand how customers navigate their store and which displays are most effective. Which tool would be MOST helpful?
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a) Customer surveys.
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b) Focus groups.
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c) Observation and data analysis of customer traffic patterns.
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d) Competitive analysis.
c) Observation and data analysis of customer traffic patterns
0.
What is the goal of positioning?
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a) To create a product that appeals to everyone.
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b) To lower prices and increase sales volume.
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c) To create a distinct and valued place for a product in the minds of target customers.
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d) To maximise advertising spending.
c) To create a distinct and valued place for a product in the minds of target customers
