MBA 706 REVISED EXAM 1 2025/2026 GRADED A+
QUESTIONS AND 100% ANSWERS
Market Segmentation - Process of dividing consumers into groups with similar consumer
characteristics and product needs.
- Single product or marketing approach cannot appeal to the needs and wants of all customers
- Market segmentation allows managers to break the market into small manageable groups, so that
firms can tailor their offerings to satisfy different needs and wants
3 Marketing strategies - - Undifferentiated or mass marketing
- Product- variety or differentiated marketing
- Target or concentrated marketing
Undifferentiated/mass marketing - - Firms sell a single product (with same marketing approach) to all
consumers (instead of segmenting the market and offering customized products)
- PRO: Economies of scale in production, promotion, and distribution
- Con: Intense competition and more sophisticated consumers
Ex: Ford's Model T, Black and Decker
Product -Variety/ Differentiated Marketing - - Firms provide a wide variety of differentiated offerings
to different segments (sometimes to all consumers)
- PRO: Greater Variety to consumers
- Con: Increased Costs
Ex: Coke
Targeted/ Concentrated marketing - - Usually firms ID the major market segments, and then target a
single segment with a single marketing mix
- PRO: Concentrated efforts to that specific segment: control cost to appeal only to that primary
target segment
- CON: possibility of missed opportunities: vulnerable to competition
Ex: Piano makers
,Multiple segmentation - Firms target different segments with a unique marketing mix for each
segment
Procedures of segmentation - - Survey Stage: understand consumer motivations, attitudes, and
behavior
- Analysis Stage: ID consumer groups with similar characteristics
- Profiling stage: Profile each group in terms of their attitudes, behavior, demographics,
psychographics, and media habits.
Factors affecting the feasibility of segmentation: - - measurable: data should be available to evaluate
the attractiveness of the segment
- Accessible: to firms
- Substantial: large and valuable
- Unique: distinguishable form other segments
- Appropriate: Should align with firms objective's and resources
- Stable: firms should be able to predict the behavior of the segment in the future
Bases for segmentation - - Geographic & geodemographic
- demographic
- behavioral
- psychographic
Geographic/geodemographic: - - one of the easiest and most commonly used methods
- markets are divided into groups based on region, climate, population density
Geodemo:
-combine geographic and demographic factors
- Target consumers in particular areas with similar behavior patterns "birds of a feather flock
together"
Demographic - Markets are divided using demographic variables such as
-income
, - age
- gender- educational attainment
- occupation
-religion
- race
- nationality
- family/household characteristics
Behavioral - - Markets are divided based on behavioral measures such as attitudes, knowledge,
benefits sought, willingness to innovate, loyalty status, usage rates etc.
Benefit segmentation: - based on the benefits that consumers seek from a product
Ex: toothpaste manufacturer may segment its market based on the benefits that consumer expect
from the product-- teeth whitening, cavity protection, fresh breath, reduce sensitivity
User Status: - Markets can be divided on the basis of user status including non-users, ex-users,
potential users, first-time users, and regular users
Loyalty status/brand enthusiasm - Markets are divided on the basis of the extent and depth of their
loyalty to particular brands or stores
ex: airline frequent flyer programs
Psychographic - Markets are divided using
- personality
- value
- lifestyle
Ex: car manufacturers: GAP, (banana republic, gap, old navy, athleta, hill city)
Market targeting - After segmenting the market, firms need to decide on how many and which
segments to approach
QUESTIONS AND 100% ANSWERS
Market Segmentation - Process of dividing consumers into groups with similar consumer
characteristics and product needs.
- Single product or marketing approach cannot appeal to the needs and wants of all customers
- Market segmentation allows managers to break the market into small manageable groups, so that
firms can tailor their offerings to satisfy different needs and wants
3 Marketing strategies - - Undifferentiated or mass marketing
- Product- variety or differentiated marketing
- Target or concentrated marketing
Undifferentiated/mass marketing - - Firms sell a single product (with same marketing approach) to all
consumers (instead of segmenting the market and offering customized products)
- PRO: Economies of scale in production, promotion, and distribution
- Con: Intense competition and more sophisticated consumers
Ex: Ford's Model T, Black and Decker
Product -Variety/ Differentiated Marketing - - Firms provide a wide variety of differentiated offerings
to different segments (sometimes to all consumers)
- PRO: Greater Variety to consumers
- Con: Increased Costs
Ex: Coke
Targeted/ Concentrated marketing - - Usually firms ID the major market segments, and then target a
single segment with a single marketing mix
- PRO: Concentrated efforts to that specific segment: control cost to appeal only to that primary
target segment
- CON: possibility of missed opportunities: vulnerable to competition
Ex: Piano makers
,Multiple segmentation - Firms target different segments with a unique marketing mix for each
segment
Procedures of segmentation - - Survey Stage: understand consumer motivations, attitudes, and
behavior
- Analysis Stage: ID consumer groups with similar characteristics
- Profiling stage: Profile each group in terms of their attitudes, behavior, demographics,
psychographics, and media habits.
Factors affecting the feasibility of segmentation: - - measurable: data should be available to evaluate
the attractiveness of the segment
- Accessible: to firms
- Substantial: large and valuable
- Unique: distinguishable form other segments
- Appropriate: Should align with firms objective's and resources
- Stable: firms should be able to predict the behavior of the segment in the future
Bases for segmentation - - Geographic & geodemographic
- demographic
- behavioral
- psychographic
Geographic/geodemographic: - - one of the easiest and most commonly used methods
- markets are divided into groups based on region, climate, population density
Geodemo:
-combine geographic and demographic factors
- Target consumers in particular areas with similar behavior patterns "birds of a feather flock
together"
Demographic - Markets are divided using demographic variables such as
-income
, - age
- gender- educational attainment
- occupation
-religion
- race
- nationality
- family/household characteristics
Behavioral - - Markets are divided based on behavioral measures such as attitudes, knowledge,
benefits sought, willingness to innovate, loyalty status, usage rates etc.
Benefit segmentation: - based on the benefits that consumers seek from a product
Ex: toothpaste manufacturer may segment its market based on the benefits that consumer expect
from the product-- teeth whitening, cavity protection, fresh breath, reduce sensitivity
User Status: - Markets can be divided on the basis of user status including non-users, ex-users,
potential users, first-time users, and regular users
Loyalty status/brand enthusiasm - Markets are divided on the basis of the extent and depth of their
loyalty to particular brands or stores
ex: airline frequent flyer programs
Psychographic - Markets are divided using
- personality
- value
- lifestyle
Ex: car manufacturers: GAP, (banana republic, gap, old navy, athleta, hill city)
Market targeting - After segmenting the market, firms need to decide on how many and which
segments to approach
