TEST BANK MARKETING
MANAGEMENT EXAM 2
1. Market ______ evaluates each market segment's attractiveness and selects one or
more segments to serve.
A) Segmentation
B) Positioning
C) ✅ Targeting
D) Differentiation
2. The step in designing a customer value-driven marketing strategy in which a
company divides a market into distinct groups of buyers is known as market _____.
A) Targeting
B) Positioning
C) ✅ Segmentation
D) Differentiation
3. The process of evaluating each market segment's attractiveness and selecting one or
more market segments to enter is called ______.
A) Differentiation
B) Segmentation
C) ✅ Market targeting
D) Positioning
4. What is the purpose of differentiation?
A) Increase sales volume only
B) Reduce production costs
C) ✅ To create superior customer value
D) Simplify the marketing mix
5. Which of the following statements about segmentation is true?
A) Segments are always identical
B) ✅ Different segments might require different marketing strategies or mixes
C) Segmentation reduces market potential
D) Segmentation applies only to industrial markets
6. What is positioning?
A) Creating a marketing budget
B) ✅ Arranging for a product to occupy a clear, distinctive, and desirable place relative
to competing products in the minds of target consumers
C) Determining distribution channels
D) Deciding on pricing
7. ______ segmentation divides buyers into different segments based on lifestyle or
personality characteristics.
1
, A) Behavioral
B) Demographic
C) ✅ Psychographic
D) Geographic
8. _____ segmentation divides buyers into segments based on their knowledge,
attitudes, uses, or responses to a product.
A) Psychographic
B) ✅ Behavioral
C) Demographic
D) Geographic
9. Toothpastes claim they "whiten teeth," "fight bad breath," and "reduce plaque."
Which base of segmentation is being used?
A) Psychographic
B) ✅ Benefits sought
C) Geographic
D) Behavioral
10. Which of the following statements regarding segmentation is correct?
A) Only consumer marketers use segmentation
B) ✅ Consumer and business marketers use many similar variables, but business
marketers use additional variables to segment their markets
C) Segmentation is unnecessary in B2B markets
D) All segments are identical
11. When marketers target segments such as sports fans, do-it-yourselfers, commuters,
and wine enthusiasts, which base of segmentation are they using?
A) Behavioral
B) Demographic
C) ✅ Psychographic segmentation
D) Geographic
12. If men and women respond similarly to the same marketing mix, they do not
constitute different segments. Gender would not be effective in this example because
the segment is not ________.
A) Measurable
B) Accessible
C) Substantial
D) ✅ Differentiable
13. Using a(n) __________ marketing strategy, a firm might decide to ignore market
segment differences.
A) Differentiated
B) Concentrated
C) ✅ Undifferentiated
D) Individual
14. Instead of going after a small share of a large market, a firm goes after a large share
of a smaller niche segment. This type of marketing strategy is known as __________.
A) Undifferentiated marketing
B) ✅ Concentrated marketing
2
, C) Differentiated marketing
D) Mass marketing
15. A colleague wants to evaluate the attractiveness of a particular market segment.
Which of the following would be good advice?
A) Ignore competitors
B) ✅ Carefully consider the degree of competition and ease of entry into the segment
C) Only consider the size of the segment
D) Segment attractiveness cannot be evaluated
16. Anythinglefthanded.com.uk only sells products designed for left-handed people.
Which targeting strategy is it using?
A) Differentiated marketing
B) ✅ Concentrated marketing
C) Mass marketing
D) Individual marketing
17. On the My M&Ms Web site, users can customize their orders (colors, text, photos).
Which targeting strategy is M&M using here?
A) Mass marketing
B) Differentiated marketing
C) ✅ Individual marketing
D) Concentrated marketing
18. One important consideration in using a differentiated targeting strategy is that
________.
A) ✅ It can increase costs
B) It always increases revenue
C) It is easier to manage than undifferentiated marketing
D) It decreases complexity
19. Amazon and GEICO set themselves apart with smooth-functioning direct delivery
strategy. This is called __________ differentiation.
A) ✅ Channel
B) Product
C) Image
D) Service
20. The winning value proposition by discount stores such as Walmart and Best Buy
can be categorized as __________.
A) More for more
B) ✅ The same for less
C) More for less
D) Less for less
21. A company can differentiate itself from competitors using symbols such as
McDonald's golden arches, Twitter's bird, and the Nike swoosh. Which type of
differentiation is this?
A) Product differentiation
B) ✅ Image differentiation
C) Service differentiation
D) Channel differentiation
3
MANAGEMENT EXAM 2
1. Market ______ evaluates each market segment's attractiveness and selects one or
more segments to serve.
A) Segmentation
B) Positioning
C) ✅ Targeting
D) Differentiation
2. The step in designing a customer value-driven marketing strategy in which a
company divides a market into distinct groups of buyers is known as market _____.
A) Targeting
B) Positioning
C) ✅ Segmentation
D) Differentiation
3. The process of evaluating each market segment's attractiveness and selecting one or
more market segments to enter is called ______.
A) Differentiation
B) Segmentation
C) ✅ Market targeting
D) Positioning
4. What is the purpose of differentiation?
A) Increase sales volume only
B) Reduce production costs
C) ✅ To create superior customer value
D) Simplify the marketing mix
5. Which of the following statements about segmentation is true?
A) Segments are always identical
B) ✅ Different segments might require different marketing strategies or mixes
C) Segmentation reduces market potential
D) Segmentation applies only to industrial markets
6. What is positioning?
A) Creating a marketing budget
B) ✅ Arranging for a product to occupy a clear, distinctive, and desirable place relative
to competing products in the minds of target consumers
C) Determining distribution channels
D) Deciding on pricing
7. ______ segmentation divides buyers into different segments based on lifestyle or
personality characteristics.
1
, A) Behavioral
B) Demographic
C) ✅ Psychographic
D) Geographic
8. _____ segmentation divides buyers into segments based on their knowledge,
attitudes, uses, or responses to a product.
A) Psychographic
B) ✅ Behavioral
C) Demographic
D) Geographic
9. Toothpastes claim they "whiten teeth," "fight bad breath," and "reduce plaque."
Which base of segmentation is being used?
A) Psychographic
B) ✅ Benefits sought
C) Geographic
D) Behavioral
10. Which of the following statements regarding segmentation is correct?
A) Only consumer marketers use segmentation
B) ✅ Consumer and business marketers use many similar variables, but business
marketers use additional variables to segment their markets
C) Segmentation is unnecessary in B2B markets
D) All segments are identical
11. When marketers target segments such as sports fans, do-it-yourselfers, commuters,
and wine enthusiasts, which base of segmentation are they using?
A) Behavioral
B) Demographic
C) ✅ Psychographic segmentation
D) Geographic
12. If men and women respond similarly to the same marketing mix, they do not
constitute different segments. Gender would not be effective in this example because
the segment is not ________.
A) Measurable
B) Accessible
C) Substantial
D) ✅ Differentiable
13. Using a(n) __________ marketing strategy, a firm might decide to ignore market
segment differences.
A) Differentiated
B) Concentrated
C) ✅ Undifferentiated
D) Individual
14. Instead of going after a small share of a large market, a firm goes after a large share
of a smaller niche segment. This type of marketing strategy is known as __________.
A) Undifferentiated marketing
B) ✅ Concentrated marketing
2
, C) Differentiated marketing
D) Mass marketing
15. A colleague wants to evaluate the attractiveness of a particular market segment.
Which of the following would be good advice?
A) Ignore competitors
B) ✅ Carefully consider the degree of competition and ease of entry into the segment
C) Only consider the size of the segment
D) Segment attractiveness cannot be evaluated
16. Anythinglefthanded.com.uk only sells products designed for left-handed people.
Which targeting strategy is it using?
A) Differentiated marketing
B) ✅ Concentrated marketing
C) Mass marketing
D) Individual marketing
17. On the My M&Ms Web site, users can customize their orders (colors, text, photos).
Which targeting strategy is M&M using here?
A) Mass marketing
B) Differentiated marketing
C) ✅ Individual marketing
D) Concentrated marketing
18. One important consideration in using a differentiated targeting strategy is that
________.
A) ✅ It can increase costs
B) It always increases revenue
C) It is easier to manage than undifferentiated marketing
D) It decreases complexity
19. Amazon and GEICO set themselves apart with smooth-functioning direct delivery
strategy. This is called __________ differentiation.
A) ✅ Channel
B) Product
C) Image
D) Service
20. The winning value proposition by discount stores such as Walmart and Best Buy
can be categorized as __________.
A) More for more
B) ✅ The same for less
C) More for less
D) Less for less
21. A company can differentiate itself from competitors using symbols such as
McDonald's golden arches, Twitter's bird, and the Nike swoosh. Which type of
differentiation is this?
A) Product differentiation
B) ✅ Image differentiation
C) Service differentiation
D) Channel differentiation
3
