Understanding Segmentation and Targeting

Which of the following best describes 'market segmentation' in marketing?

• The process of creating a new product for a new market

• The process of dividing a market into distinct groups of buyers with different needs or behaviours

• The process of setting a product's price

• The process of advertising a product

What is the main purpose of 'targeting' in the STP process?

• To create a new market segment

• To select which market segments to enter

• To position a product in the market

• To increase the price of a product

Which of the following is NOT a common basis for market segmentation?

• Demographic

• Geographic

• Astrological

• Psychographic

In the context of positioning, what does a 'positioning map' typically show?

• The physical location of stores

• The price and quality perceptions of competing products

• The number of products sold

• The distance between warehouses

Which of the following is an example of demographic segmentation?

• Dividing the market by age groups

• Dividing the market by climate

• Dividing the market by lifestyle

• Dividing the market by product usage

What is the main goal of positioning in marketing?

• To increase the number of market segments

• To create a distinct image of a product in the minds of the target market

• To lower production costs

• To expand into new countries

Which of the following is an example of behavioural segmentation?

• Segmenting by gender

• Segmenting by region

• Segmenting by purchase occasion

• Segmenting by income

A company decides to focus its marketing efforts on customers living within 500 metres of its store. Which type of segmentation is this?

• Demographic

• Geographic

• Psychographic

• Behavioural

Which of the following best describes 'differentiated marketing'?

• Targeting the entire market with one offer

• Targeting several market segments with separate offers for each

• Targeting only one market segment

• Ignoring market segmentation

What is a 'unique selling proposition' (USP) most closely related to in the STP process?

• Segmentation

• Targeting

• Positioning

• Pricing