Chapter 8

Question 1

A(n) _____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have similar product needs

Answer 1

Marketing segment

Question 2

_____ is the process of dividing a market into meaningful groups that are relatively similar and identifiable.

Answer 2

Market segmentation

Question 3

The purpose of market segmentation is to:

Answer 3

enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups

Question 4

Which criterion of useable market segments means the firm must be able to reach members of targeted segments with customized marketing mixes?

Answer 4

Accessibility

Question 5

_____ is the segmenting of markets based on the region of the country or the world, market size, market density (number of people within a certain unit of land), or climate.

Answer 5

Geographical segmentation

Question 6

A market segment is deemed to have substantiality if it contains a large number of potential customers.

Answer 6

False

Substantiality of a segment refers to a segment being large enough to warrant developing and maintaining a special marketing mix. This does not necessarily require large numbers of potential customers.

Question 7

A segmentation plan must produce segments that are accessible—that is, the firm must be able to reach members of targeted segments with customized marketing mixes.

Answer 7

True

Question 8

Geodemographic segmentation combines geographic, demographic, and lifestyle segmentations..

Answer 8

True

Question 9

Procter & Gamble markets six different brands of laundry detergent, each targeting a different market segment. This is an example of concentrated targeting.

Answer 9

False

This illustrates a multi-segment targeting strategy.

Question 10

What are the four criteria that are necessary to define a market?

Answer 10

A market has the following characteristics:

1. Composed of people or organizations
2. The people or organizations have needs and wants that can be satisfied by particular product categories
3. The people or organizations have the ability to purchase the sought products
4. The people or organizations are willing to exchange resources for desired products