Title: Chapter 5
Course: Principles of Marketing > Section: Chapter 5

Chapter 5

5.1 Knowledge Check

1.

c. Starbucks researches the culture of the countries in which it operates so that beverages appeal to local tastes.

2.

a. Psychographic segmentation divides consumers into different groups based on internal characteristics like personality, values, and beliefs.

3.

c. Demographic segmentation groups consumers by focusing on traits such as age, gender, income, etc.

4.

c. Garnier has segmented the market based upon the benefits sought by the consumer.

5.

d. Just like our in-text example of Mirror, Peloton speaks to the personality of people who want to work out but can’t find the time to go to the gym.

5.2 Knowledge Check

1.

c. Firmographics segments customers based on sets of characteristics such as industry, location, size, legal structure, and performance.

2.

a. Technographic segmentation is based on the various hardware and software used by B2B customers.

3.

c. Value-based segmentation (sometimes called tiering or profitability segmentation) groups customers according to the potential value they may bring to a business.

4.

c. Firmographics segments customers based on sets of characteristics such as industry, location, size, legal structure, and performance.

5.

d. Needs-based segmentation is based on the premise that a marketer should focus their limited resources on those customers that need the product and have the ability to purchase it.

5.3 Knowledge Check

1.

b. Societies with a high degree of uncertainty avoidance compensate for this uncertainty by establishing rules, policies, and procedures, whereas societies with low uncertainty avoidance more readily accept change.

2.

a. Infrastructure is the basic physical systems of a nation, such as roads, sewage treatment, communication, water treatment, etc.

3.

d. In countries with a high masculinity ranking, men are intended to lead; women are supposed to follow.

4.

c. Economic factors consider things like inflation, per capita income, unemployment, etc.

5.

b. Masculinity/femininity assesses “masculine” values (such as achievement, ambition, and acquisition) versus “feminine” values like quality of life and service to others.

5.4 Knowledge Check

1.

d. A market segment should be measurable—that is, you should be able to accurately determine the size of the market segment in terms of sales value or number of customers so you can decide whether, how, and to what extent you should focus your efforts on that segment.

2.

c. A market segment should be substantial because it’s inefficient to waste resources to market the product or service to a segment too small to justify a company’s time.

3.

a. Accessibility refers to the ability to reach customers in the chosen segment at an affordable cost, given the strengths and abilities of your marketing department.

4.

d. Accessibility refers to the ability to reach customers in the chosen segment at an affordable cost, given the strengths and abilities of your marketing department.

5.

c. A measurable market segment means that you can accurately determine the size of the segment in terms of either sales volume or number of customers.

5.5 Knowledge Check

1.

c. Undifferentiated marketing treats all buyers or potential buyers as a homogenous group and creates one message for an entire audience.

2.

a. A buyer persona is a semi-fictional representation of your ideal customer based on market research and real data about your existing customers.

3.

c. Concentrated marketing (or niche marketing) is a subset of a market on which a particular product or service is focused. In Lefty’s case, it is focusing on left-handed people.

4.

c. A differentiated marketing strategy focuses on the differences between segments and designs a specific marketing mix for each segment.

5.

d. A niche market (or concentrated marketing) channels all marketing actions toward one well-defined segment of the market. In this case, the subset is people over the age of 55 who are in the market for an active adult lifestyle.

5.6 Knowledge Check

1.

c. A positioning statement defines where your offering fits in the marketplace and why it is better than competitors’ offerings.

2.

a. The STP process is an acronym for segmentation, targeting, and positioning.

3.

b. Differentiated positioning is based on the differentiating characteristics or qualities that make your product/service/brand better than those of your competitors.

4.

c. Determinant attributes are those attributes or factors that a customer uses in making their purchase decision.

5.

d. A perceptual map is a visual diagram that shows how the average target market consumer perceives your product versus those of your competitors.