TOP 10 Learning Questions for

Chapter 8: Identifying Market Segments and

Targets

Ianne Patrick P. SantiagoDecember 17, 2010

1. Which of the 4 levels of Micromarketing leads to customized marketing?

A. SegmentsB. NichesC. Local areasD. IndividualsE. Customers

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4 levels of Micromarketing:

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Segments Niches Local Areas Individuals

Target market is a group of

customers who have similar set

of needs and wants

Target market is a group of

customers who are seeking a

distinctive mix of benefits

Target market is providing the

needs and wants of a local group of customers

An individual customer taking

initiative on what and how to buy

4 levels of Micromarketing:

4

Segments Niches Local Areas Individuals

Target market is a group of

customers who have similar set

of needs and wants

Target market is a group of

customers who are seeking a

distinctive mix of benefits

Target market is providing the

needs and wants of a local group of customers

An individual customer taking

initiative on what and how to buy

Individual marketing targets customers that leads to one-to-one market.

1. Which of the 4 levels of Micromarketing leads to customized marketing?

A. SegmentsB. NichesC. Local areasD. IndividualsE. Customers

5

2. A good example for geographic segmentation is _____.A. Singapore McDonalds serve fish

hamburgers to the customers.B. Philippine McDonalds serve french fries to

the customers.C. Hong Kong McDonalds serve soft drinks to

the customers.D. America McDonalds serve ice cream to the

customers.E. Indonesia McDonalds serve coffee to the

customers.6

Definition of Geographic segmentation:

Targets market with different geographical units such as nations, states, regions, countries, cities.

Pays attention to local variations.

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Geographic Segmentation:

Market is all about location and local variations.

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2. A good example for geographic segmentation is _____.A. Singapore McDonalds serve fish

hamburgers to the customers.B. Philippine McDonalds serve french fries to

the customers.C. Hong Kong McDonalds serve soft drinks to

the customers.D. America McDonalds serve ice cream to the

customers.E. Indonesia McDonalds serve coffee to the

customers.9

3. The four segmentation variables are geographic, _____, psychographic and behavioral.

A. BibliographicB. SystematicC. PhotographicD. DemographicE. Typographic

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Four segmenting consumer markets:

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Geographic Demographic Psychographic Behavioral

Market is all about

location and local

variations.

Market is divided into groups

associated and based with

customers wants and needs.

Market focused on the customers

wants and needs by using

psychology and demographics.

Market divides the customers based on what they know by

their attitude and response to the

product.

Four segmenting consumer markets:

12

Geographic Demographic Psychographic Behavioral

Market is all about

location and local

variations.

Market is divided into groups

according to the variables that are associated with

customers wants and needs.

Market focused on the customers

wants and needs by using

psychology and demographics.

Market divides the customers based on what they know by

their attitude and response to the

product.

Demographic segmentation is a market that is based on variables.

3. The four segmentation variables are geographic, _____, psychographic and behavioral.

A. BibliographicB. SystematicC. PhotographicD. DemographicE. Typographic

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4. Which of the following is false?

A. Switchers is 1 of 4 brands of loyalty statusB. Niche marketing is part of micromarketingC. Conversion model classifies users and

nonusersD. Influencer is a behavioral variableE. Customers who uses two or more brands are

called split loyals

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Decision Roles:

Initiator Influencer Decider Buyer User

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Behavioral Variables:

Occasions Benefits User Status Usage Rate Buyer-

Readiness Loyalty Status Attitude

Decision Roles:

Initiator Influencer Decider Buyer User

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Behavioral Variables:

Occasions Benefits User Status Usage Rate Buyer-

Readiness Loyalty Status AttitudeInfluencer is part of a five crucial roles in

a buying decision.

4. Which of the following is false?

A. Switchers is 1 of 4 brands of loyalty statusB. Niche marketing is part of micromarketingC. Conversion model classifies users and

nonusersD. Influencer is a behavioral variableE. Customers who uses two or more brands are

called split loyals

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5. Which of the following examples is a shifting loyal status?A. Donald Duck only use Head and Shoulders

shampoo.B. Mickey Mouse likes to eat Haagen Dazs and

Blue Bunny ice cream.C. Pluto switch his deodorant from Rexona to

Axe.D. Goofy uses different soap every month.E. Dumbo likes to eat french fries at McDonalds.

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Four types of Loyal Status:

Hard-core loyals – consumers uses one brand

Split loyals – consumers uses two or more brands

Shifting loyals – consumers shift loyalty from one brand to another

Switchers – consumers has no loyalty of any brand

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Four types of Loyal Status:

Hard-core loyals – consumers uses one brand

Split loyals – consumers uses two or more brands

Shifting loyals – consumers shift loyalty from one brand to another

Switchers – consumers has no loyalty of any brand

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Shifting loyal are consumers who uses a brand he likes. Once he found a brand that is much better and more effective, he switches to that brand.

5. Which of the following examples is a shifting loyal status?A. Donald Duck only use Head and Shoulders

shampoo.B. Mickey Mouse likes to eat Haagen Dazs and

Blue Bunny ice cream.C. Pluto switch his deodorant from Rexona to

Axe.D. Goofy uses different soap every month.E. Dumbo likes to eat french fries at McDonalds.

21

6. Coke product is _____ to customers around the world.

A. MeasurableB. SubstantialC. AccessibleD. DifferentiableE. Actionable

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5 Key Criteria's of Market Segments:

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Measurable Size, purchasing power and characteristics of customers can be measured

Substantial Large and profitable enough to serve the customers

Accessible Effectively reached and served the customers

Differentiable Distinguishable and have different response to marketing mix elements and programs of customers

Actionable Attracting and serving customers by using effective programs

5 Key Criteria's of Market Segments:

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Measurable Size, purchasing power and characteristics of customers can be measured

Substantial Large and profitable enough to serve the customers

Accessible Effectively reached and served the customers

Differentiable Distinguishable and have different response to marketing mix elements and programs of customers

Actionable Attracting and serving customers by using effective programsAccessible is a key criteria of market segments that

served products to customers within reached areas.

6. Coke product is _____ to customers around the world.

A. MeasurableB. SubstantialC. AccessibleD. DifferentiableE. Actionable

25

7. Which of the following is for selective specialization?A. Fast food that offers the same menu for 50

years and more will not survive in the market.B. Apple launched iphone4, targeting families

who are far away with each other to use video calls.

C. Dell manufacturers sells computers to schools, companies and malls.

D. Banco De Oro offers its services to SM Malls.E. Nike caters to sports enthusiasts.

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5 Patterns of Target Market Selection

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M1

M2

M3

P1

P2

P3

Single-segment concentratio

nM1

M2

M3

P1

P2

P3

Selective Specializatio

nM1

M2

M3

P1

P2

P3

Product Specializatio

n

5 Patterns of Target Market Selection

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M1

M2

M3

P1

P2

P3

Market Specializatio

nM1

M2

M3

P1

P2

P3

Full Market Coverage

Selective specialization is a target market selection that attracts a specific customer for the product they

provided.

7. Which of the following is for selective specialization?A. Fast food that offers the same menu for 50

years and more will not survive in the market.B. Apple launched iphone4, targeting families

who are far away with each other to use video calls.

C. Dell manufacturers sells computers to schools, companies and malls.

D. Banco De Oro offers its services to SM Malls.E. Nike caters to sports enthusiasts.

29

8. Which of the following is false on segments business markets?

A. Demographic is concerned about the industry, company size and location.

B. Technology, user or nonuser status and customer capabilities are the operating variables.

C. The five purchasing approaches are purchasing-function organization, power structure, nature of existing relationship.

D. General application, urgency and size or order are situational factors.

E. Personal characteristics are based on buyer-seller similarity, attitude toward risk and loyalty.

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3 Situational factors of segments business markets:

Urgency – should serve companies that need fast delivery or service

Specific Specialization – should focus on certain application rather than all application of the product

Size or order – should focus on large or small orders

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When citing situational factors, segments business markets focus on specific application of a certain

product to achieve higher returns.

8. Which of the following is false on segments business markets?

A. Demographic is concerned about the industry, company size and location.

B. Technology, user or nonuser status and customer capabilities are the operating variables.

C. The five purchasing approaches are purchasing-function organization, power structure, nature of existing relationship.

D. General application, urgency and size or order are situational factors.

E. Personal characteristics are based on buyer-seller similarity, attitude toward risk and loyalty.

32

9. The four groups of conversion model based on strength of commitment of users are:A. Strongly unavailable, weakly unavailable,

ambivalent and availableB. Convertible, shallow, average and

entrenchedC. Segments, niches, local areas and

individualsD. Gender, income, generation and social classE. Attitude, loyalty status, benefits and

occassions

33

4 groups of conversion model based on strength of commitment of users:

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Convertible Shallow Average Entrenched

Prone to changes, most likely to defect

Not committed to the brand and could switch anytime, considers alternatives

Committed to the brand but not as strong, could switch brand in short term

Strongly committed to the brand that is being used, possible of not changing products in the near future, long term

4 groups of conversion model based on strength of commitment of users:

35

Convertible Shallow Average Entrenched

Prone to changes, most likely to defect

Not committed to the brand and could switch anytime, considers alternatives

Committed to the brand but not as strong, could switch brand in short term

Strongly committed to the brand that is being used, possible of not changing products in the near future, long term

Customers users have different approaches in brand commitment. Some users are committed and vice

versa.

9. The four groups of conversion model based on strength of commitment of users are:A. Strongly unavailable, weakly unavailable,

ambivalent and availableB. Convertible, shallow, average and

entrenchedC. Segments, niches, local areas and

individualsD. Gender, income, generation and social classE. Attitude, loyalty status, benefits and

occassions

36

10. The conversion model classifies non users that is strongly prefers their current brand as _____.A. Strongly unavailableB. Weakly unavailableC. AmbivalentD. AvailableE. Unavailable

37

4 groups of conversion model based on balance disposition of non users: Strongly unavailable – customers that

are not willing to switch brand because they are strongly prefer the current brand they are using, long term.

Weakly unavailable – customers that are not willing to switch brand because their preference is on the current brand, short term.

38

4 groups of conversion model based on balance disposition of non users: Ambivalent – customers are attracted to

brand as to their current brand Available – customers likely to buy the

new brand in short term

39

Non users will probably change to a brand or not. It depends on their balance of disposition and

openness to buy the brand.

10. The conversion model classifies non users that is strongly prefers their current brand as _____.A. Strongly unavailableB. Weakly unavailableC. AmbivalentD. AvailableE. Unavailable

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TOP 10 Learning Questions for

Chapter 8: Identifying Market Segments and

Targets

Ianne Patrick P. SantiagoDecember 17, 2010