CHAP 3:SEGMENTATION, TARGETING AND POSITIONING

A market segment must be large enough to warrant developing a specialized marketing mix, according to the substantiality criterion for successful segmentation.

• True

• False

The undifferentiated targeting strategy assumes that all customers in the market have unique needs that require specialized marketing mixes.

• True

• False

A luxury watch company positions its products by emphasizing high prices as a sign of quality, appealing to consumers who associate cost with value. This is an example of positioning based on product class.

• True

• False

A small fitness brand decides to focus solely on athletes who need specialized protein supplements. This focus on a niche group is an example of concentrated targeting.

• True

• False

In behavioral segmentation, companies focus on how customers engage with products, including factors such as frequency of use and loyalty.

• TRUE

• FALSE

Benefit segmentation involves dividing the market based on the amount of product bought or consumed.

• TRUE

• FALSE

Psychographic segmentation is the most appropriate method when a company wants to understand consumer spending behavior but not their personal preferences or values.

• TRUE

• FALSE

Market targeting is a strategy that focuses on designing a singular product offering that appeals to all market segments without differentiation.

• TRUE

• FALSE

Positioning based on product use or application involves associating the product with an attribute or benefit rather than its practical uses.

• True

• False

A car rental company creates a marketing mix to appeal to environmentally conscious consumers who prefer electric vehicles. This segmentation is likely based on psychographic factors.

• True

• False