Marketing Management, 3e (Marshall)
Chapter 7 Segmentation, Target Marketing, and Positioning
1) One of the basic principles behind segmentation is that subgroups of customers can be
identified on some basis of similarity.
2) Marketing (Big M) is not just identifying existing segments but also creating new ones.
3) Occupation segmentation and income segmentation are essentially the same thing.
4) For many marketing managers, segmentation by benefit sought is the best place to start the
process of market segmentation.
5) One of the most straightforward and popular methods of segmentation is demographic.
6) Business market segmentation is less straightforward than segmentation of consumer markets.
7) Generation Y, people born between 1978 and 1994, tend to be pragmatic, optimistic, good
team players, savvy consumers, and edgy in nature.
8) The largest generation is the Silent Generation.
9) Family and household segmentation has become more complex due to a variety of differing
family arrangements.
10) The final step in target marketing is to develop profiles of each segment under consideration
for investment as a target market.
11) A tertiary target market has reasonable potential but is not suited for development
immediately.
12) A niche strategy is the same as Porter’s focus strategy and is a concentrated target marketing
approach.
13) Strategic fit means there is a good match of a target market to the firm’s culture and resource
capabilities.
14) Effective positioning is not affected by competitive forces.
15) A perceptual map is used to compare consumer perceptions of each competitor’s delivery
against specific paired attributes.
16) Marcia wanted a car she could drive for 10 years, so she bought a Toyota because they are
known for their reliability and longevity. This BEST demonstrates the product leadership source
of differentiation.
17) In overpositioning, consumers have a very broad understanding of the company, product, or
brand.
18) McDonald’s fell victim to confused positioning in the 1990s after introducing too many new
products which caused customers to lose track of what the core brand was.
19) Firms that engage in unethical business practices are always aware of the magnitude of
damage being done to their brand.
20) Which of the following is one of the basic principles behind segmentation?
A) All customers are alike.
B) Subgroups of customers are not similar.
C) Subgroups will be smaller and more homogeneous than the overall market.
D) Members of a heterogeneous market cannot allow for dividing the market into subgroups.
E) In an undifferentiated market, each person has unique needs and wants.
21) Segmenting markets means that a company is ________.
A) dividing the market into meaningful smaller markets based upon common characteristics
B) selecting the markets to attack in the marketplace
C) selecting a corporate position to communicate to potential customers
D) identifying and calculating the churn rate in different markets
E) identifying the customers who have frequently purchased competitor’s products or services
22) Target marketing is the process by which ________.
A) the market is divided into cohesive groups
B) a company evaluates market segments and decides which ones have the most potential for
development
C) a company chooses which advertising strategy to use
D) the customer groups are evaluated on the basis of high or low churn to see which is the most
profitable
E) a company collects cookies to track everyone who visits its website
23) Positioning relies on the communication of one or more sources of value to customers in a
way that the customer can easily make the connection between the ________.
A) cost of the product and the quality
B) way the 4Ps of the marketing mix work with one another
C) customer’s needs and wants and what the product has to offer
D) product and its advertising
E) salesperson and the customer at a personal level
24) Organizations communicate one or more sources of value to customers in a way that the
customer can easily make the connection between his or her needs and wants and what the
product has to offer. Execution of this approach is referred to as a firm’s ________ strategy.
A) segmentation
B) positioning
C) production
D) sales
E) distribution
25) In marketing, differentiation is a concept that means ________.
A) consumer choices remain similar around the globe
B) each age segment views products exactly the same
C) products need to appear to be different from one another to be successful in the marketplace
D) communicating and delivering value in different ways to different customer groups
E) evaluating different market segments and deciding which shows the most promise for
development
26) While developing a segmentation approach, Walter, the brand manager of a soft drinks
manufacturing company says that a segment has sufficient size. He means that the market
________.
A) has a large enough television audience to be worth considering
B) is reachable
C) can provide a positive return on investment
D) has many customers in it
E) is homogeneous
27) Which of the following criteria for market segmentation is least likely to enable successful
segmentation?
A) It should be measurable.
B) It should be of sufficient size.
C) It should be readily identifiable.
D) It should be undifferentiated.
E) It should be reachable in terms of communication.
28) Which of the following questions about market segmentation relates to creation and
execution of different marketing strategies to the different submarkets identified?
A) Can the segment be reached in terms of physical product?
B) Is the segment of sufficient size to warrant investing in a unique value-creating strategy for
that segment as a target market?
C) Is the segment readily identifiable and can it be measured?
D) Can the segment be reached in order to deliver the value of the product, and subsequently can
it be effectively and efficiently managed?
E) Is the segment clearly differentiated on one or more important dimensions when
communicating the value of the product?
29) American credit card companies would like to offer their services to people in a country in
East Africa. However, they are finding it difficult because of language barriers and infrastructure
challenges. These issues are related to which of the following questions about market
segmentation?
A) Do the people in this market segment have access to sufficient financial resources?
B) Is the segment of sufficient size to warrant investing in a unique value-creating strategy for
that segment as a target market?
C) Is the segment readily identifiable and can it be measured?
D) Can the segment be reached in order to deliver the value of the product, and subsequently can
it be effectively and efficiently managed?
E) Is the segment clearly differentiated on one or more important dimensions when
communicating the value of the product?
30) The ability to get secondary and/or primary data on a market being considered for
segmentation relates to which of the following questions about marketing?
A) Can the segment be reached in terms of physical product?
B) Is the segment of sufficient size to warrant investing in a unique value-creating strategy for
that segment as a target market?
C) Is the segment readily identifiable and can it be measured?
D) Can the segment be reached in order to deliver the value of the product, and subsequently can
it be effectively and efficiently managed?
E) Is the segment clearly differentiated on one or more important dimensions when
communicating the value of the product?
31) Approaches to geographic segmentation include all of these EXCEPT ________.
A) region
B) density of population
C) size of population
D) gender of population
E) climate
32) The region, the density of the population, and the size of the population are various
approaches to use in ________.
A) positioning
B) differentiation
C) democratic segmentation
D) population parameter estimation
E) geographic segmentation
33) Marketers use geographic segmentation when ________.
A) certain geographic regions have more diverse populations
B) geography determines one’s likes and dislikes
C) there is evidence that consumers respond differently to marketing strategies and programs
based on where they live
D) there is a strong demand for the products and services of the company in some geographic
regions
E) people in some regions are richer than people in other regions
34) When a retail chain sells winter coats, it sends them to different stores at different times of
the year. Which of the following approaches to geographic segmentation in the United States
does this scenario exemplify?
A) by region
B) by climate
C) by size of population
D) by growth in population
E) by density of population
35) Which of the following statements is TRUE of geographic segmentation?
A) It divides consumer groups based on a variety of readily measurable descriptive factors about
the group.
B) In most instances, it is an insufficient criterion in and of itself.
C) It does not consider climate while segmenting markets.
D) It does not consider the size of population while segmenting markets.
E) It is useful because the demand for all kinds of products is determined by where a person
lives.
36) Demographic segmentation is one of the most popular segmentation approaches because
________.
A) it takes into account the climate of different regions.
B) the needs and wants of customers remain constant based on demographic differences
C) it uses easily identifiable characteristics of human populations such as lifestyle
D) it is relatively easy to measure the variables used in this approach to segmentation
E) the demand for all kinds of products is determined by where a person lives
37) Age is a commonly used method of segmentation. Age alone, however, may be dangerous
because ________.
A) grouping older customers into one group is an approach that fails to consider the vast
differences in other important variables
B) chronological age and psychological age are the same
C) older consumers exhibit very little differences from person to person on things such as
income, mobility, and work status
D) this approach ignores chronological age
E) this approach presumes irregularity of consumer needs and wants by age
38) Demographic segmentation is best described as using characteristics of ________ to segment
the market.
A) human populations
B) geography
C) economics
D) political stability
E) government regulations
39) Sociologists look for defining events such as major economic upheaval, wars, and ________
as triggers for generational change.
A) political stability
B) marketing opportunities
C) sociocultural revolution
D) foreign policy changes
E) population growth
40) Which of the following statements is TRUE of the baby boomers generational group?
A) The baby boomers have been traditionally ignored by the marketing managers.
B) The majority of baby boomers are in their early 80s.
C) The baby boomers have an old outlook of life and the future.
D) The baby boomers think that they don’t age.
E) The baby boomers will have limited impact on marketing decisions in the future.
41) Generation X is often referred to as the ________.
A) spoiled generation
B) nonconsumption generation
C) millennial generation
D) baby bust generation
E) optimistic generation
42) Katherine was born in 1970. She is environmentally conscious and media-savvy. She is most
likely to be a member of which generational group?
A) baby boomer generation
B) GI generation
C) silent generation
D) Generation X
E) Generation Y
43) Cateleya was born in 2001. She is a member of ________.
A) the baby boomer generation
B) the millennial generation
C) Generation Y
D) Generation X
E) Generation Z
44) Catalina was born in 1940. She is a member of ________.
A) the baby boomer generation
B) the silent generation
C) Generation Y
D) Generation X
E) the Millennial generation
45) Which of the following would NOT be a good product for using gender segmentation?
A) Nail polish
B) Perfume
C) Toothpaste
D) Cigars
E) Pregnancy tests