5. MKT 201 - Chapter 7 - Marketing Strategy

Which statement best describes market segmentation?

• Market segmentation is the process of identifying one large target group and customizing all offerings for them.

• Market segmentation is a process based on developing a universal product for all consumers.

• Marget segmentation involves dividing the market into a small number of groups instead of selling to the whole market.

• Market segmentation involves creating a product for every individual customer, maximizing personal appeal.

Which statement regarding geographic segmentation is incorrect?

• Geographic segmentation involves dividing a market into different geographical units such as continents, nations, states, regions, counties, cities, or even neighborhoods.

• Geographic segmentation involves where the firm’s customers live, and this is important for determining who might buy the firm’s product.

• Geographic segmentation results in service and quality that is on a similar level to each geographic segment.

• An example of geographic segmentation is a coffee shop that is on a university campus.

Which statement regarding demographic segmentation is incorrect?

• An application of demographic segmentation relates to how a better education leads to a better job and higher income generally; therefore, luxury products are targeted at higher income and well-educated individuals.

• Demographic segmentation involves dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, etc.

• An application of demographic segmentation relates to how make-up products would be targeted more towards females rather than males.

• Demographic segmentation involves categorizing consumers based on their attitudes toward products.

Which statement regarding psychographic segmentation is incorrect?

• Psychographic segmentation involves dividing a market into different segments based on lifestyle or personality characteristics (based on a person rather than a product).

• An application of demographic segmentation relates to how the lifestyle of a sports fan has a factor on the products they are going to buy.

• Psychographic segmentation involves external factors such as lifestyle (way of living), social status (self-perception to others), and personality, that influence products that people buy.

• Psychographic segmentation is primarily concerned with identifying consumers based on their purchasing behavior.

Which statement regarding behavioral segmentation is incorrect?

• An application of behavioral segmentation includes how a person using bicycle for exercise would focus on the benefits of health, compared to a different person it for transportation (different focuses for promotion).

• Behavioral segmentation involves dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product (based on a product).

• Behavioral segmentation focuses on consumer behavior related to specific product benefits, usage frequency, and loyalty rather than general attitudes or personality traits.

• An application of behavioral segmentation includes bicycles being used for transportation means, health, fitness, exercise, and fun.

Which statement best describes targeting?

• Targeting involves creating a broad, undifferentiated marketing strategy for all consumers.

• Targeting involves the firm choosing which segment(s) to focus on selling to.

• Targeting focuses on selecting a segment and developing multiple offerings for all sub-segments within it.

• Targeting refers to selecting segments to sell to based purely on the lowest production cost rather than consumer preferences.

Which statement regarding mass marketing is incorrect?

• Mass marketing involves no segments and the firm is trying to market to every single person.

• Coca-Cola has a mass marketing targeting strategy as their drink is aimed at everyone.

• Mass marketing strategies often rely on creating highly targeted products and services tailored to the specific demands of smaller consumer groups within a broader market.

• Mass marketing is also called undifferentiated marketing.

Which statement regarding segmented marketing is incorrect?

• Segmented marketing is the most common targeting strategy where there are a few segments, usually 2 to 5 segments.

• Emirates has a segmented marketing targeting strategy as they have a different way of promoting business class compared to economy class.

• Segmented marketing requires the firm to develop distinct marketing mixes for each individual customer segment, offering a high level of customization for every group.

• Segmented marketing is also called differentiated marketing.

Which statement regarding niche marketing is incorrect?

• An advantage of niche marketing is that by having one segment, it allows the firm to be more cost-efficient.

• Niche marketing is one of the most common targeting methods used worldwide.

• Niche marketing involves one segment or two at most.

• Niche marketing is also called concentrated marketing.

Which statement regarding micromarketing is incorrect?

• Micromarketing involves marketing to one person.

• Micromarketing usually occurs in business-to-business where one firm sells to another.

• An example of micromarketing includes tailor-made and specialized products meant to the specific needs of individual customers.

• Micromarketing is common in business-to-consumer marketplaces, such as Amazon and Talabat.