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Self-test Questions
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1

The marketing activity of dividing markets up into smaller units with similar needs and characteristics is known as:
A)Market penetrating
B)Target Marketing
C)Relationship marketing
D)Marketing segmentation
E)Mass marketing
2

Changing the elements of the marketing mix to be perceived as unique is known as:
A)Differentiation
B)Market segmentation
C)A defensive strategy
D)Direct marketing
3

Target marketing begins with a three-stage process, the first stage begins with:
A)Grouping customers according to their needs and characteristics.
B)Choosing which segments to target.
C)Developing a thorough understanding of the needs and characteristics of the target market.
D)Understanding ways to achieve competitive advantage.
E)Understanding the opportunities and threats within the market.
4

Psychographic segmentation refers to:
A)Social class
B)Benefits sought
C)Gender and age
D)Cognitive dissonance
E)Lifestyle and personality
5

When a new product is launched segmentation by purchase behaviour will lead the marketer to target which of the following:
A)Regular users
B)Extroverts
C)Innovators
D)Status conscious
E)Wealthy people
6

Demographic segmentation divides the market by:
A)Age, gender or life cycle
B)Location or region
C)Socio-economic variables
D)Perceptions, beliefs and values
E)Religion and culture
7

The ACORN classification is used in which method of market segmentation?
A)Geodemographic
B)Psychographic
C)Industrial
D)Behavioural
E)Geographic
8

In business to business marketing macrosegmentation focuses on which characteristics:
A)Size, buying behaviour and decision-making.
B)Size, industry and geographic location.
C)The decision-making unit.
D)Political and environmental issues.
E)The price sensitivity of different organisations.
9

A classification system that can be used to identify industrial sectors is:
A)Standard Institutional Classification
B)Strategic Industrial Classification
C)Standard Industrial Classification
D)Segmented Industrial Classification
10

In industrial marketing, ____________________ is an example of a mircosegmentation variable:
A)Organisational size
B)ACORN classification
C)Buy class
D)Psychographics
E)Regional location
11

When a company develops a single marketing mix for an entire market this is called Industrial Marketing.
A)TRUE
B)FALSE
12

A company developing a focused marketing strategy would do which of the following:
A)Focus on individuals in the decision-making unit.
B)Focus on the entire mass market with no segmentation.
C)Develop a single marketing mix for a single segment.
D)Develop a number of different marketing mixes for a single segment.
E)Develop a single marketing mix for each individual customer.
13

A company practising customised marketing would develop a marketing mix for each customer.
A)TRUE
B)FALSE
14

The objective of following a positioning strategy is:
A)To create and sustain a distinctive place in the market.
B)To carry out regular audits to understand the current position.
C)To relocate where necessary to be near to customers.
D)To adopt the same position in the market as well established successful competitors.
E)Become the largest company in the industry.
15

A useful tool for determining the position of a brand in the marketplace is:
A)Marketing audit
B)Secondary research
C)Perceptual map
D)Marketing information system
16

Lifestyle segmentation variables group people according to where they live.
A)TRUE
B)FALSE
17

Profile segmentation variables enable consumer groups to be reached by:
A)Direct mail
B)Where they buy products.
C)When they buy products.
D)Why they buy products.
18

What form of advertising did Coca Cola decide to use for their new drink Icy Lemon Fanta when they discovered that the target youth market spends a lot of their time out.
A)Direct
B)Internet
C)Email
D)Outdoor
E)Television
19

Only one segmentation variable should be used to identify a target market.
A)TRUE
B)FALSE
20

In organisational markets a key segmentation variable when launching new products is:
A)The company’s approach to purchasing.
B)The innovativeness of the organisation.
C)The structure of the decision making group.
D)The choice criteria.
21

Smaller companies are more likely to succeed in large market segments, as there are more customers.
A)TRUE
B)FALSE
22

When evaluating market segments a company should examine its ability to compete in the segment and consider:
A)Market factors
B)Competitive factors
C)Environmental factors
D)Target marketing strategies
E)Market attractiveness
23

Which of the following is not a key to successful positioning:
A)Clarity
B)Consistency
C)Credibility
D)Communication
E)Competitiveness
24

Intangible repositioning involves:
A)Modifying the product to make it more acceptable to the current target market.
B)Targeting a different market segment with the same product.
C)Changing the product and the target market.
D)Keeping the product and target market the same but changing the image of the product.





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