Understanding Market Segmentation and Targeting

Market Segmentation and Targeting

True/False Questions

Question 4

Dove, a division of Unilever, traditionally targeted both men and women with its Dove-branded skin care products.

Question 6

For some consumer products such as cigarettes, soft drinks, and candy that have a low per-unit cost, income is often a more valuable segmentation variable than population.

Question 12

Categories such as "successful idealists" and "affluent materialists" can be used to describe psychographic segmentation, not age segmentation.

Question 13

Sometimes it is preferable to market to a particular mind-set rather than an age group; in such an instance, psychographic studies can help marketers arrive at a deeper understanding of consumer behavior than is possible with traditional segmentation variables.

Question 14

For behavior segmentation, marketers use the 80/20 rule when assessing the consumers' usage rate, which means that 80% of the company's revenues or profits are accounted for by 20% of the firm's products or customers.

Question 16

While America's Hispanic population shares a common language, they are not a monolithic group. In ethnic segmentation, they can be further divided into subgroups based on factors like country of origin, cultural nuances, and socioeconomic status.

Question 17

When assessing potential country target markets, management should consider a variety of factors beyond its network of contacts, such as market size, growth potential, competitive landscape, and political and economic stability.

Question 18

India is the world's fastest-growing cell phone market with the industry expanding at a rate of 50% annually with 5 million new subscribers added every month. This is an indication of strong overall economic growth, particularly in the private sector.

Question 20

A market segment or country market characterized by weak competition can be an attractive segment to enter, as it may offer opportunities for higher profits and market share.

Question 22

When making a decision about market entry timing, a company's management team should understand that being the first-mover does not guarantee market leadership. Subsequent entrants can still succeed by offering superior products, better marketing, or lower prices.

Question 25

Standardized global marketing is analogous to mass marketing in a single country and is also known as undifferentiated target marketing, not differentiated target marketing.

Question 28

IKEA, the home furnishings retailer based in Sweden, wraps itself in the Swedish flag–literally, since inside and out, their stores are decorated in the national colors of blue and yellow. This is an example of global consumer culture positioning, leveraging the positive associations of Swedish design and quality.