Marketing The Core 5Th Canadian Edition By Roger A. Kerin – Test Bank

Marketing The Core 5Th Canadian Edition By Roger A. Kerin – Test Bank

Chapter 06
Segmentation, Targeting, and Positioning

True / False Questions

1. The concept of market segmentation and targeting are fundamental to modern marketing.
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-01 Explain market segmentation and its relevance to marketing.
Topic: 06-02 Market Segmentation

2. Mass marketing exists in a limited capacity today due to the competitiveness of the market and the need for marketers to specifically address consumer needs with their offerings.
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-02 Detail the different forms of market segmentation.
Topic: 06-03 Forms of Market Segmentation

3. A segmented approach cannot be followed by companies in the business-to-business market.
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-02 Detail the different forms of market segmentation.
Topic: 06-03 Forms of Market Segmentation

4. Marketing segmentation involves aggregating products into groups.
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-01 Explain market segmentation and its relevance to marketing.
Topic: 06-02 Market Segmentation

5. Segment marketing involves designing specific products and services to meet the needs of different target groups.
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-02 Detail the different forms of market segmentation.
Topic: 06-03 Forms of Market Segmentation

6. In individualized marketing, marketers use database technology to track consumer purchases and predict interests and future purchases.
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-02 Detail the different forms of market segmentation.
Topic: 06-03 Forms of Market Segmentation

7. Clusters will identify the segments that exist in the market.
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 06-03 Describe the elements included in target market profiles and personas.
Topic: 06-03 Forms of Market Segmentation

8. Once a thorough market assessment has been conducted, a marketer is tasked with identifying the segment that best meets strategic company objectives.
FALSE

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 06-05 Outline the steps involved in segmenting a market.
Topic: 06-08 Steps in Market Segmentation

9. A geographic descriptor of a target market looks at ranges for age, gender, family life cycle, income, occupation, education, ethnic background, and home ownership for the main target market.
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-03 Describe the elements included in target market profiles and personas.
Topic: 06-05 Segmentation Variables in Consumer Markets

10. A demographic profile of a target market includes ranges for age, gender, family life cycle, income, occupation, education, ethnic background, and home ownership for the main target market.
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-03 Describe the elements included in target market profiles and personas.
Topic: 06-05 Segmentation Variables in Consumer Markets

11. PediaSure is an energy drink created for small children. This is an example of a geographic target market profile.
FALSE

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 06-03 Describe the elements included in target market profiles and personas.
Topic: 06-05 Segmentation Variables in Consumer Markets

12. Demographic variables are central to understanding the delight points of consumers and what gives them that extra spark.
FALSE

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 06-03 Describe the elements included in target market profiles and personas.
Topic: 06-05 Segmentation Variables in Consumer Markets

13. Psychographics involves understanding consumer attitudes to life, their personalities, general interests, opinions, and activities.
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-03 Describe the elements included in target market profiles and personas.
Topic: 06-05 Segmentation Variables in Consumer Markets

14. Psychographic information is generally based on the primary research that marketers have conducted to gather insights on their consumers.
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 06-03 Describe the elements included in target market profiles and personas.
Topic: 06-05 Segmentation Variables in Consumer Markets

15. Psychographics looks at why consumers buy a product, the product benefit, how the product is used, and whether consumers are brand loyal in their purchase behaviour.
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-03 Describe the elements included in target market profiles and personas.
Topic: 06-05 Segmentation Variables in Consumer Markets

16. Usage rate of products by consumers plays an important role in behaviouristic information.
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-03 Describe the elements included in target market profiles and personas.
Topic: 06-05 Segmentation Variables in Consumer Markets

17. Product positioning refers to the impression of the product one wants to establish in consumers’ minds relative to their needs and also in contrast to the competition.
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-06 Explain the concept of product positioning.
Topic: 06-09 Positioning

18. Positioning statements identify the main reasons the target market buys the product and what sets it apart in the market.
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-06 Explain the concept of product positioning.
Topic: 06-09 Positioning

19. Repositioning refers to visual representations of how products or product groups are positioned within a category to consumers/customers.
FALSE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-06 Explain the concept of product positioning.
Topic: 06-10 Repositioning

20. Positioning maps are also known as perceptual maps.
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-06 Explain the concept of product positioning.
Topic: 06-11 Positioning Maps

21. Positioning maps help reveal gaps in the market where consumers may be underserved, while also highlighting the competitive nature of the category.
TRUE

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-06 Explain the concept of product positioning.
Topic: 06-11 Positioning Maps

Multiple Choice Questions

22. _____ markets consist of goods, services, and ideas that are purchased for personal use.
A. Industrial
B. Consumer
C. Business
D. Government
The consumer market consists of goods, services, and ideas that a person can purchase for his or her own personal use.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-01 Explain market segmentation and its relevance to marketing.
Topic: 06-02 Market Segmentation

23. Sam buys stationery items such as staplers, pens, printing paper, and printer cartridges from Staples. She buys these items for writing personal notes and for printing letters to her friends. In this instance, the stationery items that Sam purchases are part of the:
A. reseller market.
B. government market.
C. business market.
D. consumer market.
In this instance, the stationery items that Sam purchases are part of the consumer market. The consumer market consists of goods, services, and ideas that a person can purchase for his or her own personal use.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Easy
Learning Objective: 06-01 Explain market segmentation and its relevance to marketing.
Topic: 06-02 Market Segmentation

24. _____ involves products that are purchased either to run a business or to be used as a component in another good or service.
A. Product differentiation
B. The psychographic market
C. The consumer market
D. The business market
The business market involves products that are purchased either to run a business or to be used as a component in another good or service.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-01 Explain market segmentation and its relevance to marketing.
Topic: 06-02 Market Segmentation

25. A company buys a new computer to upgrade its office technology and to ensure that its business runs efficiently. This is an example of _____.
A. a business market
B. a consumer market
C. a psychographic market
D. product differentiation
The business market involves products that are purchased either to run a business or to be used as a component in another good or service.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 06-01 Explain market segmentation and its relevance to marketing.
Topic: 06-02 Market Segmentation

26. _____ involves aggregating prospective buyers into groups that have common needs and respond similarly to marketing programs.
A. Market aggregation
B. Psychographics
C. Market segmentation
D. Undifferentiated marketing
Market segmentation involves aggregating prospective buyers into groups that have common needs and respond similarly to marketing programs.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-01 Explain market segmentation and its relevance to marketing.
Topic: 06-02 Market Segmentation

27. Which of the following is true about market segmentation?
A. It refers to the strategy of positioning a product apart from the competition in the eyes of consumers.
B. It aggregates prospective buyers into groups that have common needs and respond similarly to marketing programs.
C. Mass marketing obstructs the process of market segmentation.
D. It aggregates prospective buyers into groups that are relatively heterogeneous.
Market segmentation involves aggregating prospective buyers into groups that have common needs and respond similarly to marketing programs.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-01 Explain market segmentation and its relevance to marketing.
Topic: 06-02 Market Segmentation

28. Market segmentation:
A. refers to the positioning of a product apart from the competition in the eyes of the consumers.
B. refers to aggregating buyers who respond differently to a marketing program.
C. creates two markets—the market for elastic goods and that for inelastic goods.
D. involves groups that are relatively homogeneous in terms of consumption, attitudes, and buying behaviour.
Market segmentation involves aggregating prospective buyers into groups that have common needs and respond similarly to marketing programs. These groups are relatively homogeneous and consist of people who are fairly similar in terms of their consumption behaviour, attitudes, and target market profiles.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-01 Explain market segmentation and its relevance to marketing.
Topic: 06-02 Market Segmentation

29. Yen Research, a marketing research firm, adopts a strategy to position its client’s newly launched product apart from the competition in the eyes of consumers. This strategy is referred to as _____.
A. mass marketing
B. product differentiation
C. segment marketing
D. repositioning
There is normally more than one firm vying for the attention of prospective buyers in a market. This has resulted in marketers following a strategy of product differentiation to position their products apart from the competition in the eyes of consumers.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 06-01 Explain market segmentation and its relevance to marketing.
Topic: 06-02 Market Segmentation

30. Mass marketing:
A. involves focusing efforts on a limited segment in the market.
B. refers to designing specific products and services to meet the needs of different target groups.
C. involves marketing a product to the entire market with no differentiation at all.
D. is the most common form of segmentation followed by large companies.
Mass marketing involves a product being marketed to the entire market with no differentiation at all.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-02 Detail the different forms of market segmentation.
Topic: 06-03 Forms of Market Segmentation

31. _____ marketing involves a product being marketed to all individuals in the market with no differentiation at all.
A. Mass
B. Micro
C. Niche
D. Segment
Mass marketing involves a product being marketed to the entire market with no differentiation at all.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-02 Detail the different forms of market segmentation.
Topic: 06-03 Forms of Market Segmentation

32. Natural gas being marketed without differentiation from either a product or marketing perspective is an example of _____.
A. product differentiation
B. individualized marketing
C. mass marketing
D. differential marketing
This is an example of mass marketing. Mass marketing involves a product being marketed to the entire market with no differentiation at all.

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 06-02 Detail the different forms of market segmentation.
Topic: 06-03 Forms of Market Segmentation

33. Segment marketing:
A. involves designing specific products and services to meet the needs of different target groups.
B. involves focusing efforts on a limited segment in the market.
C. exists in a limited capacity today due to the competitiveness of the market and the need for marketers to specifically address consumer needs with their offerings.
D. refers to marketing by customizing offers and products to fit individual needs.
Segment marketing involves designing specific products and services to meet the needs of different target groups.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-02 Detail the different forms of market segmentation.
Topic: 06-03 Forms of Market Segmentation

34. _____ marketing involves designing specific products and services to meet the needs of different target groups.
A. Niche
B. Segment
C. Mass
D. Micro
Segment marketing involves designing specific products and services to meet the needs of different target groups.

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 06-02 Detail the different forms of market segmentation.
Topic: 06-03 Forms of Market Segmentation

35. Kellogg’s, the cereal brand, began its business with only one product, Kellogg’s Corn Flakes. The company marketed this product to all segments—children, adults, families, and so on. Today, however, Kellogg’s has multiple cereal products and brands that are targeted to meet the needs of different market segments. Froot Loops and Frosted Flakes are marketed for children and families who loved pre-sweetened cereals. All Bran and Special K are marketed to mainstream health-oriented adults. Kellogg’s is also marketing its brand Kashi to a limited market segment, concentrating on health enthusiasts.

Which of the following approaches did Kellogg’s adopt for its first product, Kellogg’s Corn Flakes?
A. individualized marketing
B. niche marketing
C. segment marketing
D. mass marketing
Kellogg’s followed a mass marketing approach for its first product, Kellogg’s Corn Flakes. Mass marketing involves a product being marketed to the entire market with no differentiation at all.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 06-02 Detail the different forms of market segmentation.
Topic: 06-03 Forms of Market Segmentation

36. Kellogg’s, the cereal brand, began its business with only one product, Kellogg’s Corn Flakes. The company marketed this product to all segments—children, adults, families, and so on. Today, however, Kellogg’s has multiple cereal products and brands that are targeted to meet the needs of different market segments. Froot Loops and Frosted Flakes are marketed for children and families who loved pre-sweetened cereals. All Bran and Special K are marketed to mainstream health-oriented adults. Kellogg’s is also marketing its brand Kashi to a limited market segment, concentrating on health enthusiasts.

Kellogg’s targeted different groups of consumers for products such as All Bran, Froot Loops, and Frosted Flakes. This is an example of _____.
A. segment marketing
B. mass marketing
C. niche marketing
D. repositioning
This is an example of segment marketing. Segment marketing involves designing specific products and services to meet the needs of different target groups.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 06-02 Detail the different forms of market segmentation.
Topic: 06-03 Forms of Market Segmentation

37. Kellogg’s, the cereal brand, began its business with only one product, Kellogg’s Corn Flakes. The company marketed this product to all segments—children, adults, families, and so on. Today, however, Kellogg’s has multiple cereal products and brands that are targeted to meet the needs of different market segments. Froot Loops and Frosted Flakes are marketed for children and families who loved pre-sweetened cereals. All Bran and Special K are marketed to mainstream health-oriented adults. Kellogg’s is also marketing its brand Kashi to a limited market segment, concentrating on health enthusiasts.

Which of the following approaches did Kellogg’s adopt for its brand Kashi?
A. individualized marketing
B. mass marketing
C. niche marketing
D. segment marketing
Kellogg’s adopted the niche marketing approach for its Kashi brand. The type of market segmentation that allows a company to focus its efforts on a limited segment in the market is called niche marketing.

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 06-02 Detail the different forms of market segmentation.
Topic: 06-03 Forms of Market Segmentation

38. Which of the following is true of segment marketing?
A. A segmented approach cannot be adopted by companies in business-to-business market.
B. Segment marketing involves a product being marketed to the entire market without any differentiation.
C. Segment marketing allows a company to focus its efforts on a limited segment in the market.
D. Segment marketing involves designing specific products and services to meet the needs of different target groups.
Segment marketing involves designing specific products and services to meet the needs of different target groups.