Is the way in which the target market perceives the product relative to the competitors brand?

Take the quiz test your understanding of the key concepts covered in the chapter. Try testing yourself before you read the chapter to see where your strengths and weaknesses are, then test yourself again once you’ve read the chapter to see how well you’ve understood.

1. Markets are product groupings. True or false?

True

False

2. ‘Customer’ and ‘consumer’ mean the same thing. True or false?

True

False

3. If they are homogeneous, it means that customers are likely to respond in similar ways to marketing mix elements. True or false?

True

False

4. ‘Benefits sought’ can be used to segment both consumer and business markets. True or false?

True

False

5. ‘Adopter type’ can be classed as a demographic variable. True or false?

True

False

6. What is the term for the process of dividing a total market into subgroups so that each group consists of buyers and users who share similar characteristics, but who are different from those in the other groups?

1. market subdivision
2. market targeting
3. market positioning
4. market segmentation
5. niche marketing

Answer:

d. market segmentation

7. What is undifferentiated marketing?

1. classless marketing
2. niche marketing
3. target marketing
4. mass marketing
5. custom marketing

Answer:

d. mass marketing

8. Lifestyle is an example of which type of segmentation variable?

1. psychographics
2. demographics
3. usage
4. geo-demographics
5. behavioural

Answer:

a. psychographics

9. Loyalty status is an example of which type of segmentation variable?

1. psychographics
2. demographics
3. usage
4. geo-demographics
5. behavioural

10. What are the criteria for designing workable marketing segments?

1. specific, measurable, achievable, relevant and timed
2. measurable, heterogeneous, homogeneous, substantial, operational and accessible
3. measurable, heterogeneous, homogeneous, specific and organisational
4. substantial, marketable, accessible, realistic and targetable
5. heterogeneous, achievable, substantial, measured, targeted and timed

Answer:

b. measurable, heterogeneous, homogeneous, substantial, operational and accessible

11. Festive Flowers have a number of shops, each of which serves a specific area. What type of market segmentation base are they using?

1. demographics
2. mediagraphics
3. geodemographics
4. geographic
5. aerial

12. What is the term for segmentation systems such as ACORN and MOSAIC that have analysed the UK population by postcode?

1. geographic
2. mediagraphics
3. geodemographics
4. marketing information databases
5. population census

Answer:

c. geodemographics 

13. Which of the following is an example of a behavioural segmentation base?

1. gender
2. user status
3. income
4. socio-economic class
5. personality

14. What does SIC stand for?

1. socio-income class
2. special individual category
3. social inequality cause
4. seller’s insurance class
5. standard industry classification

Answer:

e. standard industry classification 

15. John and Joan are both 68 and retired. Their children have long since left home and now have families of their own. Which stage of the family life cycle are John and Joan likely to be in?

1. full nest I
2. full nest II
3. full nest III
4. empty nest I
5. empty nest II

16. In the STP five-stage process, what follows on from stage two, identify market segments?

1. profiling customers/consumers
2. identifying the total market
3. selecting target market
4. positioning against competing brands
5. identifying positions of competing brands.

Answer:

c. selecting target market

17. What is the marketing term for how a target market perceives a brand in relation to competing brands?

1. positioning
2. perceptual mapping
3. targeting
4. segmentation
5. profiling

18. There are five principal characteristics that will make a market segment particularly attractive for targeting. Four of these are: (1) it has sufficient current and potential sales and profits; (2) it has the potential for sufficient future growth; (3) it does not have excessive barriers or costs to entry or exit; and (4) it has some relatively unsatisfied needs that the company can serve particularly well. What is the fifth?

1. It does not comprise of difficult customers.
2. It is not overly competitive.
3. It is well documented.
4. It is well established.
5. Other companies are already making good profits there.

Answer:

b. It is not overly competitive. 

19. What is a perceptual map used to assess?

1. audiences’ degrees of selective attention
2. how much customers/consumers remember about an advert
3. customer/consumer perceptions of competing brands
4. relative brand equity
5. differing perceptions of the brand’s packaging

Answer:

c. customer/consumer perceptions of competing brands 

20. What is the marketing term for a relatively small, well-defined and very focused target market?

1. a customised market
2. a targeted market
3. a gap in the market
4. a niche market
5. a corner of the market

Answer:

d. a niche market

21. Geographic, which is based on location, and ______ segmentation, which is based on population characteristics, are probably the most widely used forms of segmentation.

22. ACORN stands for a classification of ______ neighbourhoods.

23. VALS is a ______ segmentation model.

24. Targeting two or more market segments, and delivering a different marketing programme to each, would be a ______ targeting strategy.

25. The brand’s ______ is the place a brand is perceived to occupy in the minds of the target market relative to competing brands.

How consumers perceive a product relative to the competition?

What are the 4 types of target market?

How a product is perceived by a target audience is called?

What is recognizing the target market?