Multiple-choice Questions – Market segmentation


Multiple-choice Questions

Answer ALL 20 Questions[2 points each – Total marks available: 40]

1. Market segmentation is:

a) The net contribution produced after the marketing expenses are deducted from the contribution produced.

b) A statement that shows company sales, costs of goods, expenses and profits during a given period of time.

c) The process of dividing a market into distinct groups of buyers with similar requirements.

d) None of the above.

2. The process of designing the company’s image and offering to get a distinctive place in the minds of the target market is known as:

a) Positioning

b) Targeting

c) Segmentation d) None of the above

3. The associations that are not essentially unique to the brand but may be shared with other brands are known as:

a) Points-of-parity

b) Points-of-difference

c) Points-of-equality

d) None of the above

4. Consumer behaviour can be defined as:

a) Customer understanding of marketing activities

b) A field of study focused on consumer activities

c) A study of pricing models

d) None of the above

5. Segmentation on basis of values and attitudes and behavioural patterns is an example of

a) Geographic segmentation

b) Psychographic segmentation

c) Demographic segmentation

d) Political segmentation

6. Which of the following is not part of the external marketing environment?

a) Political

b) Legal

c) Product

d) Socio-Cultural

7. The process of collecting information about the marketing environment is called:

a) Environmental management

b) Environmental scanning

c) Marketing management

d) Targeting

8. Which of the following is on of Porter’s five forces:

a) Threat of substitutes

b) Threat of political decisions

c) Threat of cultural influences

d) Threat of bankruptcy

9. Which of the following would be a strength when conducting a SWOT analysis:

a) Brand recognition

b) Competitor weakness

c) Low tax rate

d) All of the above

10. A channel structure is referred to as _______ when a product goes from producer to final consumer with no intermediaries:

a) Direct

b) Indirect

c) Hybrid

d) None of the Above

11. Which of the following is a political factor that can impact on an organisation?

a) Government Policy

b) Inflation rate

c) Lifestyle trends

d) Innovation potential

12. In marketing channels conflicts that occur at the same level are referred to as:

a) Steep conflict

b) Channel conflict

c) Vertical conflict

d) Horizontal conflict

13. Which of the following is considered a facilitator in relation to marketing channels:

a) Sales agents

b) Wholesalers

c) Independent warehouses

d) Retailers

14. A disadvantage to organisation too many intermediaries in the supply chain is:

a) Goal incompatibility

b) Financial considerations

c) Access to markets

d) All of the above

15. Another name for an organisation’s marketing communications mix is:

a) The image Mix

b) The advertising program

c) The sales force

d) The promotional mix 16.

If an organisation wants to build a good corporate image which of the following communication tools will they employ:

a) Direct marketing

b) Sales promotions

c) Advertising

d) Public relations17.

Product quality level is considered as part of the:

a) Actual product

b) Augmented product

c) De-augmented product

d) None of the above 18.

Which stage of the product life cycle is advertising, and promotion aimed at retaining existing customers and persuading customers to switch from competitors?

a) Introduction

b) Growth

c) Maturity

d) Decline

19. Price competition starts to occur at which phase of the product life cycle?

a) Introduction

b) Growth

c) Maturity

d) Decline

20. Bowman’s strategy clock is a model used in marketing to:

a) The competitive position of a company

b) The pricing strategy of a company

c) The perceived value of a company to customers

d) None of the above


1. Explain how changes in the macro-environment affect marketing decisions. Illustrate your answer with practical examples showing how companies can react to the marketing environment. (250 words)

2. “Should marketing be concerned with ethics?” Critically evaluate the statement and give relevant examples to illustrate your argument. (250 words)

3. Using a real-life marketing example, explain the three major steps which are used to design a customer value-driven marketing strategy. Your explanation must include the concepts of market segmentation, targeting and positioning. (300 words)

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