1 CORRECT

The Segmentation, Targeting and Positioning Process is not always linear, but the final stage is to
A) identify and develop a positioning strategy.
B) select a target market.
C) describe the segments.
D) establish the strategy or objectives.
E) evaluate the segment attractiveness.
Feedback:
Learning Objective: LO1 - Outline the different methods of segmenting a market.
Level: Easy
Blooms: Remember
AACSB: Analytic
Topic: The Segmentation, Targeting, and Positioning Process
While the sequence may be altered given opportunities, the full sequence is to establish the
strategy or objectives, describe the segments, evaluate segment attractiveness, select a target
market and identify and develop a positioning strategy.
2
INCORRECT
Your text outlines a number of segmentation methods a firm may choose to utilize. Which of the
following is NOT one of the choices?
A) behavioral segmentation
B) benefits segmentation
C) psychographic segmentation
D) sociological segmentation
E) geographic segmentation
Feedback:
Learning Objective: LO1 - Outline the different methods of segmenting a market.
Level: Easy
Blooms: Remember
AACSB: Analytic
Topic: Step 2: Segmentation Methods
The second step in the segmentation process is to use a particular method or combination of
methods to segment the market. In doing so, marketers use geographic, demographic,
psychographic, benefits, and behavioral segmentation methods.
3
INCORRECT
Marketers like Benetton want their ads to appeal to one's ________, suggesting to consumers "I'm like
them, so I should buy their products."
A) self-awareness
B) self-concept
C) loyalty
D) life cycle
E) physiological needs
Feedback:
Learning Objective: LO1 - Outline the different methods of segmenting a market
Level: Medium
Blooms: Understand
AACSB: Analytic
Topic: Step 2: Segmentation Methods
Self-concept is the image people have of themselves and can be a basis for psychographic
segmentation.
4
INCORRECT
Best Years Travel targeted consumers living in New York City who were over 50 years of age.Best Years
Travel was using ________ segmentation.
A) benefit
B) self-actualization
C) psychographic
D) loyalty
E) geodemographic
Feedback:
Learning Objective: LO1 - Outline the different methods of segmenting a market.
Level: Hard
Blooms: Apply
AACSB: Analytic
Topic: Using Multiple Segmentation Methods
Geodemographic segmentation uses both location (geography: New York City) and demographics
(age: over 50) to segment target markets.
5
INCORRECT
One reason Forever Green Lawn Service invests in retention by using ______ segmentation is because
finding new customers is costly.
A) demographic
B) benefit
C) psychographic
D) loyalty
E) geographic
Feedback:
Learning Objective: LO1 - Outline the different methods of segmenting a market.
Level: Medium
Blooms: Understand
AACSB: Analytic
Topic: Behavioral Segmentation
Research has shown that it is usually much more expensive to find new customers than to keep
existing customers. Loyalty segmentation focuses on identifying the firm's most profitable
customers and investing in retention and loyalty initiatives to retain them.
6
INCORRECT
Once a marketer has selected potential market segments for a product or service, he or she can evaluate
each segment to determine if customers in the segment will react similarly and positively to the firm's
offering. In doing so, the marketer is evaluating if the segment is
A) substantial.
B) responsive.
C) profitable.
D) reachable.
E) identifiable.
Feedback:
Learning Objective: LO2 - Describe how firms determine whether a segment is attractive and
therefore worth pursuing.
Level: Medium
Blooms: Understand
AACSB: Analytic
Topic: Step 3: Evaluate Segment Attractiveness
For a segmentation strategy to be successful, the customers in the segment must react similarly
and positively to the firm's offering. In other words, the segment must be responsive.
7
INCORRECT
Which of the following would NOT be used in calculating the profitability of a segment?
A) fixed costs
B) segment size
C) segment adoption percentage
D) profit margin percentage
E) variable costs
Feedback:
Learning Objective: LO2 - Describe how firms determine whether a segment is attractive and
therefore worth pursuing.
Level: Medium
Blooms: Understand
AACSB: Analytic
Topic: Profitable
The potential profitability of segment depends on many factors including: fixed costs, segment
size, segment adoption percentage, purchase behavior, and profit margin percentage.
8
INCORRECT
When selecting a target market, a marketer should
A) examine the competitors' annual reports to determine their objectives.
B) be sure to comply with all federal and state targeting regulations.
C) evaluate the attractiveness of each potential new customer.
D) match the firm's competency with a market segment's attractiveness.
E) make sure the product meets the safety standards of the target market.
Feedback:
Learning Objective: LO3 - Articulate the difference among targeting strategies: undifferentiated,
differentiated, concentrated, or micromarketing.
Level: Medium
Blooms: Understand
AACSB: Analytic
Topic: Step 4: Select Target Market
No marketer has sufficient resources to create value for all consumers. The essence of target
marketing is matching the firm's competency with a market segment's attractiveness.
9
INCORRECT
Firms using a(n) _______ targeting strategy, target several market segments with a different offering
for each.
A) one-to-one
B) mass marketing
C) differentiated
D) undifferentiated
E) Micromarketing
Feedback:
Learning Objective: LO3 - Articulate the difference among targeting strategies: undifferentiated,
differentiated, concentrated, or micromarketing
Level: Medium
Blooms: Understand
AACSB: Analytic
Topic: Step 4: Select Target Market
Firms using a differentiated targeting strategy target several market segments with a different
offering for each. Firms embrace differentiated targeting because it helps them obtain a bigger
share of the market and increase the market for their products overall.
10
INCORRECT
Once segmentation and targeting have been completed, the marketer turns to ________, often using a
perceptual map to display graphically the customers' perceptions of the product and of its competitors'
products.
A) validating
B) displaying
C) branding
D) positioning
E) repositioning
Feedback:
Learning Objective: LO5 - Define positioning, and describe how firms do it.
Level: Medium
Blooms: Understand
AACSB: Analytic
Topic: Step 5: Develop a Positioning Strategy
The last step in developing a market segmentation strategy is positioning. Firms position products
and services based on different methods such as the value proposition, salient attributes,
symbols, and competition.