Market Segmentation, Targeting, and Positioning: Master the Basics

Question 1

When a company decides to focus its marketing efforts on a specific group of customers, it is known as:

Accepted Answer

Niche marketing

Answer

Mass marketing

Answer

Differentiated marketing

Answer

Undifferentiated marketing

Question 2

Positioning is the process of creating a:

Accepted Answer

Unique image for a product in the minds of customers

Answer

Marketing plan to reach a specific target audience

Answer

Segmentation strategy to divide a market into groups

Answer

Pricing strategy to maximize profits

Question 3

A company that uses a differentiated marketing strategy will:

Accepted Answer

Target multiple market segments with different marketing campaigns

Answer

Target a single market segment with a tailored marketing campaign

Answer

Mass market its products to all consumers

Answer

Focus on creating a unique brand identity

Question 4

Which of the following is an example of psychographic segmentation?

Accepted Answer

Dividing a market based on personality traits

Answer

Dividing a market based on age

Answer

Dividing a market based on income level

Answer

Dividing a market based on geographic location

Question 5

Which of the following is NOT a benefit of market segmentation?

Accepted Answer

Reduced competition

Answer

Improved marketing efficiency

Answer

Increased customer satisfaction

Answer

Higher sales and profits

Question 6

Positioning a product as 'the premium choice' is an example of:

Accepted Answer

Differentiation positioning

Answer

Value positioning

Answer

Competitive positioning

Answer

User positioning

Question 7

Which of the following is a positioning strategy that emphasizes establishing a unique identity for a product or service?

Accepted Answer

Differentiation

Answer

Focus

Answer

Niche

Answer

Mass marketing

Question 8

Which of the following segmentation variables classifies customers based on their attitudes, beliefs, and personality traits?

Accepted Answer

Psychographic

Answer

Demographic

Answer

Geographic

Answer

Behavioral

Question 9

Which of the following is a characteristic of a niche market?

Accepted Answer

Small and specialized

Answer

Easily accessible

Answer

High competition

Answer

Unprofitable

Question 10

The process of dividing a market into smaller, more manageable groups based on shared characteristics is known as:

Accepted Answer

Market segmentation

Answer

Target marketing

Answer

Market positioning

Answer

Marketing research

Question 11

Which of the following is a disadvantage of target marketing?

Accepted Answer

Higher marketing costs

Answer

Increased marketing efficiency

Answer

Improved customer satisfaction

Answer

Reduced competition

Question 12

The process of creating a unique image for a product or service in the minds of customers is known as:

Accepted Answer

Positioning

Answer

Branding

Answer

Packaging

Answer

Advertising

Question 13

The process of selecting a specific group of consumers to whom a company will direct its marketing efforts is known as:

Accepted Answer

Target marketing

Answer

Market segmentation

Answer

Market positioning

Answer

Marketing strategy

Question 14

Which of the following is a method used for product positioning?

Accepted Answer

Perceptual mapping

Answer

Demographic analysis

Answer

SWOT analysis

Answer

Market research

Question 15

Which of the following is an example of a psychographic segmentation variable?

Accepted Answer

Lifestyles

Answer

Age

Answer

Income

Answer

Education

Question 16

What is the primary purpose of a positioning statement?

Accepted Answer

To communicate the unique value proposition of a product or brand

Answer

To define the target market

Answer

To develop a marketing campaign

Answer

To conduct market research

Question 17

How are market segmentation and target market selection related?

Accepted Answer

Target market selection involves identifying the most attractive segment(s) from a segmented market.

Answer

Question 18

Which of the following is the most critical step in market segmentation?

Accepted Answer

Identifying customer needs and wants

Answer

Dividing the market into distinct groups

Answer

Developing marketing strategies for each segment

Answer

Analyzing market data and trends

Question 19

What is the primary objective of target marketing?

Accepted Answer

To focus marketing efforts on specific customer groups

Answer

To increase market share within a particular industry

Answer

To reduce marketing costs and maximize profits

Answer

To enhance brand image and recognition

Question 20

What is the purpose of market positioning?

Accepted Answer

Creating a unique and consistent image for a product or service

Answer

Identifying target customers and tailoring marketing messages

Answer

Dividing the market based on customer characteristics

Answer

Developing marketing strategies that align with business objectives

Question 21

What is the main goal of demographic segmentation?

Accepted Answer

Dividing the market based on consumer traits and characteristics

Answer

Identifying consumer buying patterns

Answer

Creating a unique brand persona

Answer

Evaluating the effectiveness of marketing campaigns

Question 22

What is the role of perceptual maps in market positioning?

Accepted Answer

To visualize the perceived positioning of competing products or brands

Answer

To identify potential target markets

Answer

To evaluate customer satisfaction levels

Answer

To develop new product concepts

Question 23

What is the correct sequence of steps in the segmentation, targeting, and positioning process?

Accepted Answer

Segmentation, targeting, positioning

Answer

Targeting, segmentation, positioning

Answer

Positioning, segmentation, targeting

Answer

Segmentation, positioning, targeting

Question 24

What is the term for the process of selecting specific market segments to target?

Accepted Answer

Target marketing

Answer

Market positioning

Answer

Product differentiation

Answer

Market analysis

Question 25

What is the key difference between undifferentiated and differentiated marketing?

Accepted Answer

Differentiated marketing targets specific market segments, while undifferentiated marketing targets the entire market.

Answer

Undifferentiated marketing targets specific market segments, while differentiated marketing targets the entire market.

Answer

Undifferentiated marketing uses a single marketing mix, while differentiated marketing uses multiple marketing mixes.

Answer

Differentiated marketing uses a single marketing mix, while undifferentiated marketing uses multiple marketing mixes.

Question 26

What is the main purpose of a market positioning statement?

Accepted Answer

To communicate the product's unique value proposition

Answer

To define the target market

Answer

To develop the marketing mix

Answer

To conduct market research

Question 27

Which of the following is considered a psychographic segmentation variable?

Accepted Answer

Personality

Answer

Age

Answer

Income

Answer

Location

Question 28

A perceptual map is a graphical representation that shows:

Accepted Answer

The relationship between a product's attributes and its position in the market.

Answer

The strengths and weaknesses of a product compared to competitors.

Answer

The sales figures of different products in a category.

Answer

The distribution channels for a product.

Question 29

A company has divided its market into segments based on age, gender, income, and education level. This is an example of:

Accepted Answer

Demographic segmentation

Answer

Geographic segmentation

Answer

Psychographic segmentation

Answer

Behavioral segmentation

Question 30

A company positions its product as providing the "highest quality" in the market. This is an example of:

Accepted Answer

Quality positioning

Answer

Price positioning

Answer

Value positioning

Answer

Benefit positioning

Question 31

Distinguish between a perceptual map and a positioning map, highlighting their distinct roles in market research and product positioning.

Accepted Answer

A perceptual map portrays customer perceptions of brands or products, while a positioning map depicts the company's intended market positioning.

Answer

Perceptual maps are based on qualitative data, whereas positioning maps utilize quantitative data.

Answer

Perceptual maps assist in market segmentation, while positioning maps facilitate product differentiation.

Question 32

Which of the following is a key characteristic of niche marketing?

Accepted Answer

Focusing on a small, precisely defined market segment with distinct needs

Answer

Targeting a broad audience with mass marketing

Answer

Offering a wide range of products or services to meet various needs

Answer

Selling products or services at a significantly lower price than competitors

Question 33

How does customer lifetime value contribute to effective segmentation, targeting, and positioning?

Accepted Answer

Segmenting customers based on their predicted lifetime value enables more efficient targeting.

Answer

Customer lifetime value is only relevant in determining market positioning.

Answer

Calculating customer lifetime value cannot help evaluate the effectiveness of segmentation and targeting strategies.

Question 34

Which of the following is NOT a traditional basis for segmenting a market?

Accepted Answer

Personality

Answer

Geography

Answer

Behavior

Answer

Demographics

Question 35

Which of the following is a primary benefit of market segmentation?

Accepted Answer

Allows businesses to tailor marketing strategies to specific customer groups

Answer

Eliminates competition

Answer

Reduces production costs

Question 36

A market niche is:

Accepted Answer

A small, well-defined segment of a larger market

Answer

A target market that has not yet been exploited

Answer

A segment of the market that is not profitable

Answer

A large, general market

Question 37

Which of the following is a method of product positioning?

Accepted Answer

Perceptual mapping

Answer

Psychographic profiling

Answer

Demographic segmentation

Answer

Mass marketing

Question 38

The image that a product or brand conveys in the minds of consumers is known as:

Accepted Answer

Brand positioning

Answer

Product differentiation

Answer

Market niche

Answer

Target market

Question 39

Which of the following is an advantage of psychographic segmentation?

Accepted Answer

Provides insights into consumer motivations and lifestyles

Answer

Low cost and easy to implement

Answer

Applicable to all types of products and services

Question 40

The process of creating a distinct image or perception for a product or brand in the minds of consumers is known as:

Accepted Answer

Positioning

Answer

Branding

Answer

Targeting

Answer

Segmentation

Question 41

Which of the following is a potential disadvantage of market segmentation?

Accepted Answer

Can lead to increased marketing costs

Answer

Improves efficiency of marketing efforts

Answer

Ensures customer satisfaction

Answer

Reduces market competition

Question 42

Which of the following is NOT a benefit of market segmentation?

Accepted Answer

Increased production costs

Answer

Improved customer satisfaction

Answer

Enhanced marketing effectiveness

Answer

Reduced competition

Question 43

What is the primary goal of target marketing?

Accepted Answer

To direct marketing efforts toward specific customer groups with distinct needs and characteristics.

Answer

To increase overall market share

Answer

To develop new products and services

Question 44

How does market positioning differ from brand positioning?

Accepted Answer

Market positioning defines the product's perceived value and differentiation in the target market, while brand positioning focuses on creating a unique identity for the brand relative to competitors.

Answer

They are essentially the same concept.

Question 45

When developing a positioning strategy, which factor is crucial to consider?

Accepted Answer

Competitors' positioning

Answer

Marketing budget

Answer

Customer demographics

Answer

Product price

Question 46

What is the main purpose of perceptual mapping?

Accepted Answer

To visually represent consumer perceptions of different products or brands in a two-dimensional space based on specific attributes.

Answer

To track customer satisfaction

Answer

To identify new market opportunities

Question 47

What is a potential limitation of market segmentation?

Accepted Answer

It can be a time-consuming and resource-intensive process.

Answer

It can lead to increased competition.

Answer

It can make it difficult to target specific customer groups.

Question 48

How is demographic segmentation used in market segmentation?

Accepted Answer

To divide the market into groups based on shared demographic characteristics such as age, gender, and income.

Answer

To develop marketing strategies that appeal to specific customer groups

Answer

To identify the most profitable customer segments

Question 49

What is a key benefit of target marketing?

Accepted Answer

It enables businesses to tailor their marketing campaigns to meet the specific needs and preferences of targeted customer segments.

Answer

It eliminates competition

Answer

It guarantees increased sales

Answer

It reduces the cost of marketing

Question 50

How are market segmentation, targeting, and positioning interrelated?

Accepted Answer

Segmentation involves dividing the market into distinct groups, targeting involves selecting the most suitable segments, and positioning involves creating a unique market identity for the product within the target segment.

Answer

Segmentation is a prerequisite for targeting, but positioning is not related to either.