Principles of marketing/PMKT101/Segmenting markets target audiences/Quiz 2

The questions which follow provide a basic knowledge test of selected concepts covered in this learning pathway: Segmenting markets and target audiences.

The questions published at the end of each learning pathway are re-used for the knowledge test for learners interested in earning a digital badge or certificate of participation for the Core foundations of successful marketing (PKMT101) micro-course. Please consult the Certify participation page for more information.

True - false questions

Indicate whether the following statements are true or false:

• Gender is a means for segmenting a market.
  • True
    • Correct, gender is a demographic characteristic, as is age, income and education.
  • False
    • Incorrect, men and women tend to have different purchasing habits and decision-making criteria, and as such it is important to consider different market segments, if they are applicable.
• Industrial customers are in 3 categories: Original Equipment Manufacturers (OEM); End-users; and Aftermarket customers.
  • True
    • Correct, each of these can be further subdivided into its own segment (i.e., by organization size, volume of production, and location).
  • False
    • Incorrect, each of these are market segments with their own needs, characteristics, and buyer behaviour.
• Consumer markets can be segmented by the Standard Industrial Classification (SIC).
  • True
    • Incorrect, the SIC classifies businesses by the main product or service provided.
  • False
    • Correct, the SIC is a classification of industry types, not consumers. It is an invaluable tool for businesses wanting to segment markets and reach potential customers, suppliers and partners.
• The end result of positioning is to create a market-focused value proposition.
  • True
    • Correct, positioning is the act of designing the company's offering and image to occupy a distinctive place in the target market's mind.
  • False
    • Incorrect, positioning is critical to market success whether the customer actually believes, or perceives it correctly. Regardless, this presents a market value proposition.

Multiple choice questions

• Which of the following can be used to position a product?
  • Market share
    • Incorrect - a product is likely to be positioned by: attributes, competitors and applications of the product (i.e., how it works, for what purpose).
  • Profitability
    • Incorrect - a product can be positioned by price not profitability (e.g. Sears or The Warehouse are 'value' stores). Other ways to position products are by: attributes, competitors and applications of the product (i.e., how it works, for what purpose).
  • Application, price and attributes
    • That’s right. For example, high cost products (e.g. luxury autos, jewellery, executive helicopter rides) are positioned differently than low-cost products (e.g. Southwest Airlines, Dollar Store). Specific marketing approaches are applicable including messaging, images, collateral and quality of the user experience.
• The best way to connect with target customers is by:
  • Audience-centred communication
    • Correct - when positioning a product, it is important to 'speak' in the language of the audience that will purchase and use the product. This includes age-appropriate language, images and cross-cultural references.
  • TV advertising
    • Not really – as depending on the target customer media use and preferences (e.g. social media) a TV advertising campaign can be a complete waste of money. Companies which ignore how a target audience wants to receive information, do so at their own peril - and open themselves up to competitors. Top-down approaches that assume what the target audience needs and wants, will meet roadblocks to success, not build bridges. In the digital economy, customers research and investigate product offerings, and share information and build bridges with each other, about their overall experience (i.e., positive, neutral, negative). Companies that are focused on their target audiences know this is a valuable relationship and invaluable source of feedback.
  • Social media
    • Not really – social media has taken off in the last decade or so and is very popular with the younger generation but there are some consumers that do not use social media or use it in a limited way. Companies which ignore how a target audience wants to receive information, do so at their own peril - and open themselves up to competitors. Top-down approaches that assume what the target audience needs and wants, will meet roadblocks to success, not build bridges.
• The consumer's primary motivation does not include:
  • Ideals
    • Incorrect – our ideals and values are a strong influence on our motivation.
  • Leadership
    • Correct – leadership is not a primary influence on consumer motivation. Leaders and opinion leaders in particular are used in promoting product and services but they do not motivate or influence the need to purchase a product.
  • Achievement
    • Incorrect – according to Maslow’s hierarchy of needs achievement and self-actualisation are on the top of the pyramid of needs that motivate consumers' behaviour.
• The narrowly defined consumer group seeking the mix of benefits in a segment is classified as:
  • Niche
    • Correct - unlike mass audiences, which represent a large number of people, a niche is an influential smaller consumer group.
  • Individuals
    • Not really – even though this is a very small group of individuals it is still a sub-set of a market segment and defined as such.
  • Custom group
    • Not exactly – as you can define any segment as a custom group. This custom group is very small and distinctive, so it is defined as such.