Title: Segmentation and Targeting
Course: Question Banks

Q: A bicycle repair company conducted segmentation research and then targeted their direct mail coupons for a first bike tune-up to that identified customer segment. What basic question did targeting and segmentation answer for the company?
- What am I trying to sell?
- How can I improve my product?
- Who am I trying to reach?
A: Who am I trying to reach?

Q: The Undress company produces a dress that women use to quickly and easily change in public. The company is just over a year old and has been successful through a Kickstarter campaign. The Undress company has identified a customer segment, but if it wants to reach a larger customer segment market outside of the Kickstarter family, what question must it answer?
- Why should consumers buy its product?
- Which product should it be marketing?
- How can it identify and reach the larger market more effectively?
A: How can it identify and reach the larger market more effectively?

Q: A sock company wants to better understand its customers. The marketing department discovers that the majority of customers are non-professional athletes who are not fashion conscious and are looking for bargain-priced socks, mostly in white. What analysis did the marketing department just perform?
- target marketing strategy
- accounting analysis
- customer segmentation identification
A: customer segmentation identification

Q: There are 100 apartment complexes (worth ~$350K annually in potential contracts), that the Go Green recycling company has identified which don’t offer recycling for their tenants. The city just passed a law requiring large apartment complexes to recycle. Go Green has contacted apartment complex owners offering their services with mixed results. Which one of the criteria for defining a potential market is missing from this example?
- there is an identified need for the service
- a person must have the authority to buy the service
- an organization has the ability to pay for the service
A: an organization has the ability to pay for the service

Q: A local property management company has seen little increase in its revenues over the last year. Its new marketing director, Kim, conducts several segmentation surveys and discovers an improper alignment of company marketing efforts with its actual and potential customer segments. With customers more clearly identified, Kim strategizes the types of marketing campaigns to effectively reach these current and potential customers. Kim used segmentation identification to meet which of her company’s objectives? In order for segmentation :
- identifying but not classifying people into comparable groups
- increasing marketing efficiency by directing efforts toward general market segments
- reducing company risk by deciding where, when, how, and to whom a product, service, or brand will be marketed
A: reducing company risk by deciding where, when, how, and to whom a product, service, or brand will be marketed

Q: A breakfast cereal company ran a segmentation analysis of potential new customers and identified these characteristics: single fathers with at least two children under the age of twelve and who work full time, are focused on nutritious meals, and live in the city. What could the company do to market to this potential market segment?
- create TV advertisements targeting the athletic individual
- run a coupon promotion
- differentiate their breakfast cereal as a healthy, fast breakfast the kids can make for themselves because they are a busy family
A: differentiate their breakfast cereal as a healthy, fast breakfast the kids can make for themselves because they are a busy family

Q: Direct mailing campaigns were sent out each month around the region for the area's thrift shop and consignment store. The region had a booming economy, and unemployment was down to 1% over the last five years. What was probably the effect of this thrift store’s marketing campaign?
- the general target market would be receptive to thrifty sales
- the marketing effort was reaching the people likely to become customers
- the advertisements wasted money and time because they were not targeted properly
A: the advertisements wasted money and time because they were not targeted properly

Q: There are five types of common marketing segmentation approaches. One of them is geographic segmentation, which covers:
- age, family size, education
- lifestyle, social class, personality
- nations, states, zip codes
A: nations, states, zip codes

Q: What type of segmentation criteria are included in demographic segmentation?
- cities, neighborhoods, regions
- loyalty, readiness to buy, purchase occasion
- gender, education, ethnicity
A: gender, education, ethnicity

Q: A product is targeted to a risk-averse individual who makes $40k a year, reads Knit Simple magazine, is college educated, belongs to a local book club, and takes a vacation each year to the same place. What type of segmentation was used to market the product?
- decision maker segmentation
- behavioral segmentation
- psychographic segmentation
A: psychographic segmentation

Q: If behavioral segmentation includes the knowledge of, use of, response to, and attitude toward a product, which choice below is an example of a behavioral segmentation?
- a feminine hygiene company targeting girls between the age of 12–18
- a retail clothing store targeting customers within a ten-mile radius
- an rental car company targeting customers with over 50 car rental instances through the rental car company
A: an rental car company targeting customers with over 50 car rental instances through the rental car company

Q: Tabatha was looking into switching coffee products when her group of friends suggested she check out the local coffee shop that sold a house blend that they liked. Tabatha was influenced by her friends and accompanied them to the coffee shop to try out the house blend. She liked it and purchased a bag to take home. The local coffee house had created an atmosphere and following of fans by offering a free cup if a regular brought in a friend. The coffee shop targeted its marketing using what type of approach?
- psychographic segmentation
- geographic segmentation
- decision-maker segmentation
A: decision-maker segmentation

Q: Some of the characteristics of segmenting business-to-business markets include:
- lifestyle, age
- ethnicity, religion
- organization size, purchasing approaches
A: organization size, purchasing approaches

Q: Marketing a business by using decision-maker data, behavioral data, and demographic data is an example of using a:
- single segmentation marketing approach
- behavioral segmentation approach
- segmentation combination approach
A: segmentation combination approach

Q: HandMaster sells garden gloves and decided to conduct market segmentation to better understand its customers and identify new markets. The first step it took was to identify the total market for its gloves. Next it conducted focus groups and store demonstrations to collect more detailed data. However, HandMaster forgot one important step. What was it?
- creating the company’s organizational structure diagram
- conducting behavioral segmentation
- identifying its marketing goals to direct its segmentation strategy
A: identifying its marketing goals to direct its segmentation strategy

Q: You are evaluating your company’s segmentation approach and discover an important missing condition. They have measured their target market and discovered it is reachable, stable, cost-effective, and measurable. Which condition is missing?
- appeal to social benefits
- measuring data
- profitability
A: profitability

Q: You invent of a new type of dog leash. You choose a market segmentation approach and decide to target the large national population of dog owners. After reviewing what identifies an ideal market you realize your segmentation approach does not meet any of the effective segmentation conditions. At this point you should:
- mimic the segmentation approach of another pet products company
- continue using current approach to see if it works or not
- refine your approach by going back to the drawing board
A: refine your approach by going back to the drawing board

Q: If the potential customers belong to the same segment, display comparable characteristics, and choose the same product qualities consistent with their segment, then which condition for the ideal market segment approach should be used?
- indicating a marketing campaign’s historical significance
- externally homogeneous
- internally homogeneous
A: internally homogeneous

Q: The Burn No More company sells fire extinguishers for consumers. It decided to focus its marketing strategy primarily on the home-grilling market segment. Burn No More discovered that this segment desired a smaller canister that could be attached to a grill leg. Burn No More used what type of segmentation strategy?
- multisegment strategy
- diffused strategy
- concentration strategy
A: concentration strategy

Q: McDonald’s decides to focus its marketing efforts on two target markets, the Asian-American community and the healthy eater segment. This multisegment strategy has the advantage of:
- doubling the communication efforts
- concentrating the marketing efforts
- increasing total sales by targeting more customers
A: increasing total sales by targeting more customers

Q: If the company Target is marketing the same way to an entire market, trying to reach the largest audience possible, which targeting strategy is it using?
- micromarketing
- differentiated marketing
- mass marketing
A: mass marketing

Q: Mass marketing is often used when a product is a:
- niche product
- customized product
- commodity or staple
A: commodity or staple

Q: The Banana Boat sunscreen company offers children's sunscreen and a variety of sunscreens at varying intensities. For its marketing mix it uses a multisegment marketing strategy, which means that it:
- targets each segment the same
- tries to increase market share and sales in just one of the of the market segments
- uses separate offerings for each different segment it targets
A: uses separate offerings for each different segment it targets

Q: A small company making hole punchers has decided to use a differentiated marketing strategy and target four different market segments. What problems might the company encounter?
- it can face challenges in luring customers away from existing companies
- it can be difficult to foster brand loyalty through differentiated marketing
- each segment requires its own marketing plan and execution and costs add up quickly
A: each segment requires its own marketing plan and execution and costs add up quickly

Q: AnyBots offers a small camera/scooter device that lets you remotely drive around an office without physically being there. It focuses specifically on business travelers who need to be everywhere at once. AnyBots’ marketing strategy is called:
- micromarketing
- differentiated marketing
- niche marketing
A: niche marketing

Q: If you own a small company with a small budget and limited financial resources, which marketing strategy would be best to try first??
- mass marketing
- differentiated marketing
- niche marketing
A: niche marketing

Q: A sand dollar jewelry company chooses to use a micromarketing approach, but it becomes very popular in a short amount of time. What does it need to do to capture that demand?
- it should market to a general, wider market
- it must provide a generic experience for customers
- its production strategy and marketing mix must scale up to meet growing demand
A: its production strategy and marketing mix must scale up to meet growing demand

Q: After a targeted segment of kids under twelve was chosen by a sugar cookie company, the company had to decide on its marketing mix to that segment. When deciding on a price strategy for its cookies, what questions should the company ask?
- Where does your segment look for or shop for your product?
- What do you want your segment to remember about your product?
- How much is too expensive or too cheap?
A: How much is too expensive or too cheap?

Q: Eric, a ghost writer, conducted market research and discovered a niche market in writing scripts for corporate online videos. He also knows now the market will bear $250 per script. What question should he ask next about placement of his marketing mix?
- What price is his segment willing to pay for his product?
- What would be the ideal product for his targeted segment?
- What is the best way to get his service to his target customers?
A: What is the best way to get his service to his target customers?