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Testbank Marketing Strategies and Segmentation Concepts
Question 1: A target marketing strategy in which all marketing efforts are focused on meeting a wide range of needs within a particular market segment is called: a. product-market specialisation.
b. product specialisation.
c. market-product specialisation.
d. market specialisation.
Answer ✅ : market specialisation.
Question 2: produces two-dimensional maps showing how competing brands relate to each other in terms of a range of product attributes. This, of course, assumes that consumers in the target segment are with the brand and its competitors and are able to subjectively or objectively compare them on attributes that they believe to be important. a. Perceptual mapping, unfamiliar b. Perceptual mapping, already familiar C. Behavioural mapping, already familiar d. Behavioural mapping, unfamiliar
Answer ✅ : Perceptual mapping, already familiar
Question 3: Behavioural segmentation differs from geographic, demographic and psychographic segmentation because it: a. is relatively unchanging over time. b. cannot provide evidence of emerging trends. C. is based on 'consumer characteristics'. d. is based on actual purchase and/or consumption behaviours.
Answer ✅ : is based on actual purchase and/or consumption behaviours. Question 4: Woolworths understands that their
market is made up of buyers with diverse needs; their customers have unique wants, needs and demands. The market that Woolworths sells to is said to be: a. target markets.
b. mass markets.
c. homogenous.
d. heterogeneous.
e. niche markets.
Answer ✅ : heterogeneous.
Question 5: Market segmentation variables should always:
a. be linked closely to the purchase of the product in question.
b. segment a market geographically.
c. be based on demographics.
d. include a psychographic component.
e. require a lot of market research to obtain.
Answer ✅ : be linked closely to the purchase of the product in question. Question 6: Which of the following processes is
most likely to assist with identifying target markets?
a. Situational analysis
b. Creating, communicating and delivering an offering of value.
C. SWOT analysis
d. The marketing mix.
e. Market research.
Answer ✅ : Market research.
Question 7: An organisation that segments its market by offering rewards based on the amount of points accumulated on its loyalty card would be best described as utilising:
a. demographic segmentation.
b. geo-demographic segmentation.
c. psychographic segmentation.
d. behavioural segmentation.
e. none of the options listed.
Answer ✅ : behavioural segmentation.
Question 8: Which of the following would be an advantage of a one-to-one marketing strategy?
a. Positive word-of-mouth customer referrals.
b. Potential repeat purchases from the customer.
c. Building close relationships with a customer.
d. Customer loyalty.
e. All of the options listed are potential advantages.
Answer ✅ : All of the options listed are potential advantages.
Question 9: As a marketer for a major wine company, you implement a marketing program based on occasion-based segmentation. You market some products as 'gifts', others as 'celebratory' and others for 'cellaring'. You action is an example of: a. geographic segmentation.
b. psychographic segmentation.
c. demographic segmentation.
d. behavioural segmentation.
Answer ✅ : behavioural segmentation.
Question 10: Which of the following would be a consideration for an organisation in evaluating market segments and deciding which to target? a. All of the options listed would be considerations.
b. The potential sales volume and revenues of different market segments.
c. An understanding and/or analysis of competitors and how their offerings are seen by potential target market segments.
d. The ability of the organisation to satisfy the needs and expectations of different market segments.
e. shopping, convenience, specialty and core products.
Answer ✅ : shopping, convenience, specialty and unsought products.
Question 17: A group of customers with similar needs and wants is known as: a. a demographic. b. people. C. a population. d. a target market.
Answer ✅ : a target market.
Question 18: Which of the following best describes the concept of product differentiation? a. None of the options listed.
b. How a product evolves as it moves from one phase of the product life cycle to the next.
c. The creation of services that are distinguished from competitor's services.
d. The creation of products and product attributes that distinguish one product from another.
e. The creation of physical goods that are distinguished from competitor's physical goods. Answer ✅ : The creation of
products and product attributes that distinguish one product from another. Question 19: David has decided to buy a new pair of work shoes, so he spends his afternoon shopping for a new pair. When classifying products, the category of 'shopping products', which includes shoes, also includes: a. impulse products. b. none of the options listed. C. emergency products. d. staple products.
Answer ✅ : none of the options listed.
Question 20: Marketers exercise control over a set of variables which includes price, promotion, and the product. Together, these controllable variables are known as: a. physical evidence
b. the marketing mix
c. the target market
d. a bundle of attributes
Answer ✅ : the marketing mix Question 21: Excess demand will exist
whenever: a. the actual price is below the equilibrium price. b. the price is such that the quantity demanded equals the quantity supplied. Correct C. the price is such that the quantity supplied exceeds the quantity demanded. d. the actual price is above the equilibrium price. e. scarcity has been eliminated.
Answer ✅ : the actual price is below the equilibrium price.
Question 22: Along an individual firm's supply curve, a reduction in quantity supplied occurs when: a technological advancement has occurred.
b. the firm is induced to offer more for sale at a lower price.
c. price has declined.
d. the firm's profit has risen.
e. price has increased.
Answer ✅ : price has declined.
Question 23: All of the following, except one, would be an appropriate focus of study for microeconomics. Which is not?
a. the interaction of supply and demand in the corn market.
b. the number of people employed in the advertising business.
c. the level of production by a firm in the compact disc industry.
d. the determination of the rate of inflation.
e. the determination of prices in the computer industry.
Answer ✅ : the determination of the rate of inflation.
Question 24: A technological improvement will normally cause: a. the supply curve to shift to the left.
b. a movement along the supply curve such that quantity supplied increases.
c. the supply curve to shift to the right.
d. an individual to increase consumption of any goods she purchases.
e. a movement along the supply curve such that quantity supplied declines. Answer ✅ : the supply curve to shift to the
right. Question 25: The plans of buyers and sellers are mutually compatible when: a. consumers and sellers agree that the price is fair. b. sellers are able to sell the quantity of the good that they offer for sale, but consumers cannot purchase all they want to. C. consumers are able to purchase the quantity of the good that they want to purchase, but firms cannot sell all they offer for sale.
d. the equilibrium price is established.
e. there is excess supply.
Answer ✅ : the equilibrium price is established.
Question 26: Microeconomics is that branch of economics that focuses primarily on: a. economic aggregates such as unemployment and inflation. b. the behaviour of individual units. centrally planned economies.
d. aggregate economic activity.
e. market economies.
Answer ✅ : the behaviour of individual units. Question 27: Economic theory would not be
useful in studying:
a. the impact on the domestic car industry of a quota on imported cars.
b. the effect of increased cigarette taxes on cigarette consumption.
c. why some people find it easier to give up smoking than others.
d. the effects on one's job prospects of returning to school to study for a degree.
e. the impact on the domestic economy of reducing income taxes.
a. When customers are frustrated by their inability to get a job done, and competitors are either fragmented or have a disability
that prevents them from responding.
b. When target customers don't need and don't value all the performance that can be packed into products, and when existing
competitors don't focus on low-end customs. C. When customers are locked out of a market because they lack skills, access or wealth. Competitors ignore initial developments because they take place in seemingly unpromising markets.
d. All of the listed options.
e. None of the listed options.
Answer ✅ : When customers are locked out of a market because they lack skills, access or wealth. Competitors ignore
initial developments because they take place in seemingly unpromising markets. Question 4: The issues, problems and difficulties with innovation is a. Difficult to come up with creativity b. Costs a lot of money C. Very easy to implement
d. A risky business by its nature
e. There are already many ideas
Answer ✅ : A risky business by its nature
Question 5: Which of the following would not normally be considered a radical innovation? a. Antibiotic drugs
b. The jet turbine engine
c. Integrated circuits
d. Increased colour choice on the Volkswagen 'Beetle' car
e. None of the listed options
Answer ✅ : Increased colour choice on the Volkswagen 'Beetle' car Question 6:If innovation is only seen as
associated with key individuals, it will a. create the "not invented here" effect b. all of the options listed C. fail to utilise the creativity of the remainder employees d. create unprofitable outcomes for the firm produce the products that the market does not want
Answer ✅ : fail to utilise the creativity of the remainder employees Question 7: Innovation can take many forms.
Running a hospital booking system which reduces patient waiting time is an example of which kind of innovation? a. Process
b. None of the listed options
c. Paradigm
d. Product
e. Position
Answer ✅ : Process
Question 8: According to Drucker, which of the following is not considered a source of innovation within companies or industries? a. industry and market changes
b. incongruities
c. unexpected occurrences
d. process needs
e. perceptual change
Answer ✅ : perceptual change
Question 9:Entrepreneurs wanting to create value through radical innovations can take the a. Strategic implementation b. Innovator s dilemma C. Process needs
d. Growing new markets
e. Extreme makeover
Answer ✅ : Extreme makeover
Question 10: Which of the following is NOT an example of product innovation? a. Computer-control of manufacturing operations b. A new version of the iPod C. None of the listed options
d. A new toothpaste
e. A new car design
Answer ✅ : Computer-control of manufacturing operations Question 11: Knowledge constitutes the essence
of entrepreneurship process. a. none of the listed options
b. capabilities
c. all of the listed options
d. skills
e. abilities
Answer ✅ : all of the listed options
Question 12: Occasional flashes of insperation and long periods of incremental improvements are patterns for a. strategic analysis b. building capabilities C. new product development
d. innovation
e. all of the listed options
Answer ✅ : innovation Question
13:The term a. critical deviation b. creative constraints C. mental block
d. sweet spot
e. mental crisis refers to somewhere between having too few and too many constraints.
b. Incubation
c. Recognition/preparation
d. Software development
e. Validation
Answer ✅ : Software development
Question 20: Chinese thinker Lao Tzu philosophy maxims often expressed all behaviour consists of
a. emotions
b. ideas C. rewards
d. greed
e. opposites
Answer ✅ : opposites
Question 21: Situational analysis, together with the organisations objectives form the basis for developing the marketing plan. Marketing plans are detailed documents; however, commonly, decision makers only read which section? a. None of the options listed
b. The conclusion and future recommendations
c. The marketing mix strategy
d. The introduction
e. The executive summary
Answer ✅ : The executive summary
Question 22: Marketing is an approach to business that puts the at the heart of business decisions.
a. customer, client, partner and society
b. product
c. employee
d. company
e. bottom line
Answer ✅ : customer, client, partner and society
Question 23: Choose the best answer from the options below to complete the following sentence. An organisation chart can be a useful tool to help analyse an organisation's
a. sales force
b. marketing mix
c. internal environment
d. market perception
e. external environment
Answer ✅ : internal environment
Question 24: What do marketers seek to do in their environment? a. Monitor, understand, respond to and influence b. Influence and understand C. Monitor and respond
d. Understand, respond to and influence
e. Monitor, understand and respond
Answer ✅ : Monitor, understand, respond to and influence Question 25:
The marketing process cycle is a. all of the listed options
b. expensive to implement
c. based on competitors activities
d. an ongoing cycle
e. determined by the SWOT model
Answer ✅ : an ongoing cycle
Question 26: Customers are a part of an organisation's a. internal and macro b. internal C. micro environment.
d. customers are not part of the organisation's environment
e. macro
Answer ✅ : micro
Question 27: The global financial crisis was an example of what type of macro- environmental force? a. Sociocultural.
b. Political.
c. Technological
d. Competitive.
e. Economic.
Answer ✅ : Economic.
Question 28: In an attempt to overcome legal regulations, an industry body may attempt to influence which aspect of its marketing environment? a. Economic
b. Political
c. Competitive
d. all of the listed options
e. Sociocultural
- Which of the following would not normally be considered a radical innovation?
a. None of the listed options
ca
b. Antibiotic drugs
c. Increased colour choice on the Volkswagen 'Beetle' car
d. Integrated circuits
e. The jet turbine engine
- If innovation is only seen as a strong R&D capability, it will result in
a. all of the options listed
b. None of the listed options
c. technology which fails to meet user needs and may not be accepted
d. becoming simply a matter of filling in shopping lists of needs
e. lack the involvement of others
- Which of the following is not considered a type of incremental innovation?
a. extension
b. duplication
c. synthesis
d. reduction e. all of the listed options
- The first stage of the product life cycle is commonly abbreviated as a. NPD
b. XCC
c. PLC
d. FSP
e. APC
- Bottleneck buster is an entrepreneur's approach for creating value used in
a. Marketing analysis
b. Perceptual changes
c. Disruptive innovation
d. Cost innovation
e. Creating social values
- Entrepreneurs wanting to create value through radical innovations can take the _________________ approach.
a. Growing new markets
b. Innovator s dilemma
c. Extreme makeover
d. Process needs
e. Strategic implementation
- A source of innovation within a company may emerge from an area of opportunty such as a. Customers feedback b. Process needs
c. Shareholders interests
d. Financial assistance
e. Demographic changes
- Which of the following is not considered a component of creativity?
a. None of the listed options
b. Creative thinking skills
c. Knowledge
d. Motivation
e. Imagination
- Multiple resources around the problem and volume of ideas can
a. reduce a group s innovation
b. assist with strategic incubation
c. assist in innovation output
d. reduce conflicts
e. enhance group creativity
13. Tidying up an idea and building on their initial insight is known as
a. Mind mapping
b. Emotional attachment
c. Positioning
d. Problem reversal
e. Validation
14. Sometimes the absence of resources is what galvanises
a. innovation
b. value
c. effort
d. none of the listed options
e. knowledge
- One of the challenges in creativity is that it sometimes involves
a. none of the listed options
b. seeing things differently
c. all of the listed options
d. changing perspectives
e. breaking the rules
c. All of the options listed
d. Value can be a comparison of the benefits a customer receives from a product in relation to its price
e. Value can be based on perception
- Working for the Aldi supermarket chain, you are very aware of the activities of your company's competitors
- Coles and Woolworths - and find that you frequently make changes to your business in response to actions they have taken. You also notice that they react when you make changes to your business offering. This competition is occurring within the a. none of the listed options b. micro-environment
c. internal environment
d. the macro-environment
e. the competitive-environment
- Which of the following is not a part of an organisation's external environment?
a. Customers
b. Partners
c. The micro-environment
d. None of the options listed e. Competitors
- A customer's overall assessment of the utility of an offering based on perceptions of what is received and what is given is known as
a. exchange
b. benefit
c. advantage
d. all of the listed options
e. Value
- Situational analysis, together with the organisations objectives form the basis for developing the marketing plan. Marketing plans are detailed documents; however, commonly, decision makers only read which section?
a. The introduction
b. The marketing mix strategy
c. The executive summary
d. None of the options listed
e. The conclusion and future recommendations
- If in doing a SWOT analysis an organisation identified that its retail store site was poorly located, this would be an example of
a. None of the options listed
b. an external factor that cannot be controlled by the organisation
c. a weakness
d. a threat
e. a strength
- Value refers to a. competitive advantage b. total offering
c. all of the listed options
d. economic benefit
e. bargain pricing
- In a SWOT analysis, an organisation's core competencies and competitive advantages would be classified as
a. none of the options listed
b. threats
c. opportunities
d. strengths e. Weaknesses
- Cultural factors influencing people's attitudes, beliefs, behaviours, preferences, customs and lifestyles are known as
a. environmental forces
b. economic forces
c. sociocultural forces
d. technological forces
e. political forces
- An organisation recognising the ageing population and offering a seniors' discount for older customers is most likely to be responding to a. sociocultural forces
b. technological forces
c. environmental forces
d. political forces
e. legal forces
- Which of the following is not a behavioural segmentation variable?
a. Brand loyal consumers.
b. Consumer's benefit expectations of a product.
c. All of the options listed are behavioural segmentation variables.
d. The occasion for which a product may be purchased by a consumer.
e. Heavy, medium or light users of a product.
2. The three main stages of the targeting process, in chronological order, are:
a. segmentation, targeting, positioning.
b. segmentation, positioning, targeting.
c. targeting, positioning, segmentation.
Corr ect The number of possible segment s grows by multiple s when an addition al segment ation variable is added. For example , adding gender the number of market segment s. a. expand s b. double s c. strength en
d.intensi
fi es
e. triple s
Answer ✅ :
doubles
Corr ect Questio n 3 Cor rec t Mark 1.00 out of 1. Flag questio n Which of the following statements is correct?
a. An architect designing a couple's 'dream' home is an
example of customised marketing.
b. A customised market segment has between 49 % to
66.6% of potential needs. C . A market customised target segment has similar needs, but the members of the segment have distinctive needs. d. A market segment has distinctive needs, but more than 33.3% of the members of the segment have similar needs.
Answer ✅ : An architect designing a couple's 'dream' home is an example of
customised marketing. Questio n 4 Correct Mark 1.00 out of 1. Flag questio n Organisations that pursue a specialisation strategy seek to establish a dominant position in their chosen a. produc er. b. produ ct. C. consu me. d. niche
