1. What is the main challenge when using demographic segmentation?
A. Demographic factors alone may not fully explain consumer behavior.
B. Demographic data is often difficult to obtain.
C. Demographic segments are usually too small to be profitable.
D. Demographic segmentation is not actionable.
2. A company that markets its products to different segments of the market, but with distinct marketing mixes for each segment, is using:
A. Differentiated marketing
B. Concentrated marketing
C. Undifferentiated marketing
D. Niche marketing
3. When segmenting business markets, which of the following is a common approach?
A. Segmenting by operating characteristics, purchasing approaches, situational factors, and personal characteristics.
B. Segmenting solely by the geographic location of the business headquarters.
C. Segmenting based on the personal hobbies and interests of the CEO.
D. Segmenting by the number of employees only.
4. When a company chooses to ignore market segment differences and goes after the whole market with one offer, it is employing which strategy?
A. Undifferentiated marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
5. A company that markets different brands to different segments of the market, each with its own features, appeals, and target customers, is using:
A. Differentiated marketing
B. Undifferentiated marketing
C. Concentrated marketing
D. Niche marketing
6. Which criterion for effective segmentation suggests that the segments must be large enough or profitable enough to be served profitably?
A. Substantiality
B. Measurability
C. Accessibility
D. Actionability
7. The degree to which information about a market segment can be obtained and measured is referred to as:
A. Measurability
B. Accessibility
C. Actionability
D. Substantiality
8. A marketer targets a specific segment with a marketing mix designed to appeal uniquely to that segment’s preferences and needs. This approach is known as:
A. Target marketing
B. Mass marketing
C. Niche marketing
D. Undifferentiated marketing
9. Which type of segmentation divides buyers based on their knowledge of, attitude toward, use of, or response to a product?
A. Behavioral segmentation
B. Demographic segmentation
C. Geographic segmentation
D. Psychographic segmentation
10. When a company focuses its marketing efforts on a single market segment, this strategy is called:
A. Concentrated marketing
B. Differentiated marketing
C. Undifferentiated marketing
D. Mass marketing
11. Segmenting a market by dividing it into different units such as nations, states, regions, counties, cities, or neighborhoods is known as:
A. Geographic segmentation
B. Demographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
12. A company decides to offer different product versions with varying features and price points to appeal to distinct customer needs within the same broad market. This strategy is an example of:
A. Market differentiation
B. Market saturation
C. Market consolidation
D. Market homogenization
13. The ability of a market segment to be reached and served effectively by marketing programs is referred to as:
A. Accessibility
B. Measurability
C. Actionability
D. Substantiality
14. Which of the following is NOT a common basis for segmenting consumer markets?
A. Psychographic variables
B. Geographic variables
C. Internal marketing variables
D. Behavioral variables
15. Which criterion for effective segmentation ensures that the marketer can design effective programs for attracting and serving the segments?
A. Actionability
B. Measurability
C. Accessibility
D. Substantiality
16. According to the widely accepted marketing principles, which of the following best describes the primary objective of market segmentation?
A. To identify and reach specific groups of customers with tailored marketing strategies.
B. To create the widest possible customer base for a product or service.
C. To focus solely on reducing production costs for mass-market appeal.
D. To eliminate competition by serving a niche market exclusively.
17. A company decides to focus on a very narrow segment of the market, catering to specific needs that are not well-served by larger competitors. This is an example of:
A. Niche marketing
B. Mass marketing
C. Undifferentiated marketing
D. Geographic segmentation
18. The process of evaluating the attractiveness of each market segment and selecting one or more segments to enter is called:
A. Market targeting
B. Market positioning
C. Market development
D. Market penetration
19. When segmenting a market based on lifestyle, personality traits, and values, a marketer is primarily using which type of segmentation variable?
A. Psychographic segmentation
B. Geographic segmentation
C. Demographic segmentation
D. Behavioral segmentation
20. Which of the following segmentation bases is often considered the most difficult to measure?
A. Psychographic segmentation
B. Demographic segmentation
C. Geographic segmentation
D. Behavioral segmentation (e.g., purchase frequency)
21. A company analyzes its market segments and decides to focus its resources on the segment that offers the highest potential for profitable growth. This is an example of:
A. Market penetration
B. Market development
C. Target marketing
D. Product development
22. The concept of ‘benefit segmentation’ falls under which broader category of segmentation?
A. Demographic segmentation
B. Geographic segmentation
C. Behavioral segmentation
D. Psychographic segmentation
23. When a marketer divides a market into segments based on consumers’ product knowledge, attitudes, uses, or responses to a product, they are using which type of segmentation?
A. Behavioral segmentation
B. Demographic segmentation
C. Geographic segmentation
D. Psychographic segmentation
24. What is the main challenge when employing an undifferentiated marketing strategy?
A. Difficulty in reaching a broad audience.
B. High costs due to targeting multiple segments.
C. Inability to differentiate from competitors.
D. Failure to meet the diverse needs of the market.
25. When evaluating market segments, the segment must be distinct from other segments and respond differently to marketing mix elements. This is known as being:
A. Measurable
B. Accessible
C. Substantial
D. Differentiable
26. Which of the following is NOT a common basis for psychographic segmentation?
A. Social class
B. Lifestyle
C. Personality traits
D. Job title
27. When a company decides to ignore market segmentation and appeal to the entire market with one offer, it is using:
A. Differentiated marketing
B. Concentrated marketing
C. Undifferentiated marketing
D. Niche marketing
28. Which positioning strategy focuses on creating a perception of superior quality and features, often associated with a higher price point?
A. Price-quality positioning
B. Benefit positioning
C. User positioning
D. Competitive positioning
29. If a company can effectively reach and serve a particular market segment, that segment is considered:
A. Substantial
B. Actionable
C. Accessible
D. Differentiable
30. A well-defined market segment should be:
A. As large as possible to maximize reach.
B. Homogeneous within and heterogeneous between.
C. Difficult to access and measure.
D. Unresponsive to marketing efforts.
31. What is the primary goal of positioning a product in the market?
A. To make the product as expensive as possible.
B. To create a distinct and desirable image in the minds of target consumers.
C. To appeal to the broadest possible audience.
D. To minimize advertising costs.
32. A marketing team identifies a segment of young professionals who value convenience and technology in their daily lives. They then develop a product and marketing message tailored to this specific group’s needs and preferences. This process is an example of:
A. Undifferentiated marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
33. A brand emphasizes its long history and heritage in the market to build trust and a sense of tradition. This is a form of positioning based on:
A. Product attributes
B. Benefits offered
C. Usage or application
D. Heritage or tradition
34. Which segmentation variable focuses on measurable characteristics of a population, such as age, income, and education level?
A. Psychographic segmentation
B. Behavioral segmentation
C. Geographic segmentation
D. Demographic segmentation
35. A company targets consumers who are concerned about environmental sustainability and are willing to pay a premium for eco-friendly products. This is an example of segmentation based on:
A. Geographic factors
B. Psychographic factors
C. Demographic factors
D. Behavioral factors
36. A company develops a product and marketing program tailored to the needs of a very specific group, such as a particular ethnic group or a small geographic area. This is an example of:
A. Undifferentiated marketing
B. Differentiated marketing
C. Local marketing
D. Mass customization
37. Which criterion for effective segmentation means that the segment must be large enough or profitable enough to serve?
A. Measurable
B. Accessible
C. Substantial
D. Differentiable
38. According to the widely accepted marketing principles, which of the following best describes the core purpose of market segmentation?
A. To develop a unique value proposition for each individual customer.
B. To divide a broad consumer or business market into sub-groups of consumers with common needs or characteristics.
C. To create a single, universally appealing marketing message for all potential customers.
D. To identify and eliminate unprofitable customer segments.
39. Which strategy involves a firm targeting only one or a few specific market segments and focusing all its marketing efforts on them?
A. Undifferentiated marketing
B. Differentiated marketing
C. Concentrated marketing
D. Mass marketing
40. A company uses data on customer purchase history, website visits, and loyalty program participation to understand and target its customers. This is an application of:
A. Undifferentiated marketing
B. Behavioral segmentation
C. Mass marketing
D. Concentrated marketing
41. According to the marketing concept, which of the following is the most important consideration for a company?
A. The needs of the customer
B. The product’s features and benefits
C. The company’s production capabilities
D. The competitor’s pricing strategies
42. What is the main purpose of market research?
A. To create advertising campaigns
B. To understand customer needs and market trends
C. To set product prices
D. To manage sales channels
43. What is the term for a marketing channel that has no intermediary levels?
A. Indirect channel
B. Direct channel
C. Multi-channel
D. Omni-channel
44. Which type of consumer product is typically purchased infrequently, requires significant customer investigation and comparison of brands on price, quality, and style?
A. Convenience product
B. Shopping product
C. Specialty product
D. Unsought product
45. When a company decides to target only one or a few specific market segments, it is using a(n):
A. Undifferentiated marketing strategy
B. Differentiated marketing strategy
C. Concentrated marketing strategy
D. Micromarketing strategy
46. A company decides to sell its products in a new geographic region. This is an example of which growth strategy?
A. Market penetration
B. Market development
C. Product development
D. Diversification
47. The ‘PLC’ (Product Life Cycle) refers to the stages a product goes through from its introduction to its decline. In which stage is a company most likely to focus on building selective demand and increasing market share?
A. Introduction
B. Growth
C. Maturity
D. Decline
48. Which pricing approach focuses on the buyer’s perception of a product’s value rather than the seller’s cost?
A. Cost-plus pricing
B. Competitor-based pricing
C. Value-based pricing
D. Penetration pricing
49. Which element of the marketing mix is concerned with activities that communicate the merits of the product and persuade target customers to buy it?
A. Product
B. Price
C. Place
D. Promotion
50. What is the main goal of a ‘pull’ promotion strategy?
A. To persuade intermediaries to carry the product
B. To create demand directly from end consumers
C. To encourage sales force enthusiasm
D. To build brand awareness among wholesalers
51. Which of the following is NOT a core component of the marketing mix?
A. Product
B. Price
C. Promotion
D. Profit
52. When a company lowers its prices to attract more buyers, this is an example of:
A. Skimming pricing
B. Penetration pricing
C. Cost-plus pricing
D. Value-based pricing
53. Which of the following best describes ‘customer relationship management’ (CRM)?
A. A software system for managing sales leads
B. A strategy for building and maintaining profitable customer relationships
C. A method for tracking customer complaints
D. A technique for increasing product features
54. A company is using a strategy of offering a unique product with a high price, targeting a niche market segment that values exclusivity. This pricing strategy is known as:
A. Penetration pricing
B. Cost-plus pricing
C. Price skimming
D. Promotional pricing
55. A company is using a strategy where it offers a wide variety of product items in each category. This refers to the product’s:
A. Product width
B. Product length
C. Product depth
D. Product consistency
56. Which of the following is an example of an ‘unsought product’?
A. A smartphone
B. A new novel
C. Life insurance
D. A designer handbag
57. Which of the following best describes the concept of ‘positioning’ in marketing?
A. The physical location where a product is sold
B. The way a product is promoted to potential customers
C. The place a product occupies in consumers’ minds relative to competing products
D. The cost of producing a product
58. Market segmentation is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes. What is the primary goal of market segmentation?
A. To increase production efficiency
B. To tailor marketing efforts to specific customer groups
C. To reduce product development costs
D. To eliminate competition
59. What is the primary function of a distribution channel?
A. To create product features
B. To set product prices
C. To make products available to customers
D. To promote product benefits
60. Brand equity is a measure of a brand’s value. Which of the following is a key driver of strong brand equity?
A. Low product price
B. High advertising spend
C. Positive brand associations and perceived quality
D. Extensive distribution channels
61. What is the primary purpose of a marketing mix (the 4 Ps)?
A. To outline the company’s internal organizational structure.
B. To create a strategy for achieving marketing objectives by manipulating controllable marketing variables.
C. To define the legal regulations governing the industry.
D. To analyze the company’s financial statements.
62. A positioning statement typically includes which of the following components?
A. Only the product’s price.
B. The target market, the frame of reference, the point of differentiation, and the reason to believe.
C. A broad description of all potential customers.
D. A summary of the company’s financial performance.
63. Which of the following is NOT a common basis for market segmentation?
A. Demographic (age, gender, income).
B. Geographic (location, climate).
C. Psychographic (lifestyle, personality).
D. Competitive (number of competitors in the market).
64. Which marketing mix element involves activities that communicate the merits of the product and persuade target customers to buy it?
A. Product.
B. Price.
C. Place.
D. Promotion.
65. When a company focuses its marketing efforts on a single, small, well-defined segment, it is employing:
A. Differentiated marketing.
B. Undifferentiated marketing.
C. Concentrated marketing.
D. Mass marketing.
66. Which type of segmentation focuses on consumers’ attitudes, values, interests, and opinions?
A. Geographic segmentation.
B. Demographic segmentation.
C. Psychographic segmentation.
D. Behavioral segmentation.
67. What is the role of ‘target marketing’ in the overall marketing strategy?
A. To identify and select the most attractive market segments for marketing efforts.
B. To create a product that appeals to everyone.
C. To solely focus on reducing production costs.
D. To ignore customer preferences and focus on product features.
68. What is the goal of ‘differentiation’ in marketing strategy?
A. To make the product identical to competitors’ offerings.
B. To create unique value for customers that sets the offering apart from competitors.
C. To reduce the product’s features to the most basic level.
D. To offer the lowest price in the market regardless of quality.
69. What does ‘positioning’ in marketing refer to?
A. The physical location of a company’s headquarters.
B. The process of creating a distinct image and identity for a product in the minds of target consumers.
C. The pricing strategy adopted by a company.
D. The distribution channels used to reach customers.
70. Which of the following is a key benefit of effective market segmentation?
A. Reduced product variety.
B. Increased marketing costs due to mass production.
C. Better understanding and fulfillment of customer needs.
D. Elimination of all competition.
71. What does the ‘Price’ element of the marketing mix represent?
A. The cost of raw materials for production.
B. The amount customers pay for the product or service.
C. The advertising budget allocated to the product.
D. The distribution costs for the product.
72. Which of the following is the most accurate description of a ‘market’ in marketing principles?
A. A physical location where goods are sold.
B. A group of people with similar demographic characteristics.
C. A set of actual and potential buyers of a product or service.
D. An organization that produces goods for consumption.
73. A company that offers the same product, service, and marketing mix to all customers is practicing:
A. Differentiated marketing.
B. Undifferentiated marketing.
C. Concentrated marketing.
D. Niche marketing.
74. A company decides to target a specific segment of the market with a unique product offering. This is an example of which marketing strategy?
A. Undifferentiated marketing.
B. Differentiated marketing.
C. Niche marketing.
D. Micromarketing.
75. Which ‘P’ of the marketing mix is concerned with how a product is designed, branded, and packaged?
A. Price.
B. Promotion.
C. Place.
D. Product.
76. According to the marketing concept, which of the following statements is true regarding customer needs?
A. Customer needs are created by marketers and do not exist prior to their efforts.
B. Marketers should focus on satisfying customer needs and wants.
C. Customer needs are always rational and easily identifiable by the company.
D. The primary goal of marketing is to sell existing products, regardless of customer needs.
77. When a company targets several market segments and designs separate offers for each, it is using:
A. Undifferentiated marketing.
B. Differentiated marketing.
C. Concentrated marketing.
D. Micromarketing.
78. What is the primary function of market segmentation?
A. To eliminate competition by targeting a niche market.
B. To divide a broad consumer or business market into sub-groups of consumers with common needs.
C. To increase the price of products based on perceived value.
D. To create a single marketing strategy that appeals to all consumers.
79. The ‘Place’ aspect of the marketing mix refers to:
A. The physical location of the company’s headquarters.
B. The product’s shelf placement in a retail store.
C. The company’s distribution channels and how the product reaches the customer.
D. The customer’s geographical location.
80. Which of the following is an example of behavioral segmentation?
A. Segmenting by income level.
B. Segmenting by city size.
C. Segmenting by usage rate and loyalty status.
D. Segmenting by personality traits.
81. A company develops a marketing mix (Product, Price, Place, Promotion) that is tailored to a specific market segment. This is an example of:
A. Targeted marketing.
B. Mass marketing.
C. Undifferentiated marketing.
D. Geographic marketing.
82. What is the main advantage of using behavioral segmentation?
A. It directly relates to purchase behavior and product usage, making marketing efforts more relevant.
B. It is the easiest segmentation method to implement.
C. It always results in the largest market segments.
D. It requires the least amount of market research data.
83. The statement ‘Our product offers unparalleled comfort and style for the modern urban dweller’ is an example of a:
A. Positioning statement.
B. Market segmentation statement.
C. Targeting objective.
D. Value proposition statement.
84. A company decides to target ‘young, urban professionals aged 25-35 who are health-conscious and value convenience.’ This is an example of:
A. Market targeting.
B. Market differentiation.
C. Market development.
D. Market penetration.
85. Which of the following is a key characteristic of a viable market segment?
A. The segment must be substantial enough to be profitable.
B. The segment must be easily accessible through mass media advertising.
C. The segment must be homogeneous with respect to all consumer behaviors.
D. The segment must be easily identifiable by a single demographic variable.
86. Which of the following best describes ‘differentiated marketing’?
A. Targeting several market segments and designing separate offers for each.
B. Focusing on a single, narrow market segment.
C. Serving the entire market with a single product.
D. Tailoring offers to individual customers.
87. When a company develops a unique value proposition that clearly differentiates its offering from competitors, it is engaging in:
A. Market differentiation.
B. Market segmentation.
C. Market positioning.
D. Market research.
88. A company successfully positions its brand as ‘the most reliable and durable option’ in its product category. This is an example of positioning based on:
A. Product attributes.
B. User.
C. Competition.
D. Price.
89. In the context of marketing, what does the term ‘segmentation’ primarily refer to?
A. Dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors.
B. Creating a unique image and identity for a product in the minds of consumers.
C. The process of developing new products to meet market demands.
D. Setting the price for a product based on production costs.
90. What is the primary goal of ‘positioning’ in marketing?
A. To occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
B. To reduce the price of a product to gain market share.
C. To increase the number of product features and benefits.
D. To expand distribution channels to reach more customers.
91. Which of the following is NOT a common basis for market segmentation?
A. Psychographic segmentation (lifestyle, values, personality).
B. Geographic segmentation (region, city size, climate).
C. Demographic segmentation (age, gender, income, education).
D. Competitive segmentation (analyzing competitor strengths and weaknesses).
92. When a company focuses its marketing efforts on a small, well-defined segment of the market, it is practicing:
A. Concentrated marketing (niche marketing).
B. Undifferentiated marketing.
C. Differentiated marketing.
D. Mass marketing.
93. When a company chooses to ignore market differences and go after the entire market with one offer, it is practicing:
A. Undifferentiated marketing (mass marketing).
B. Differentiated marketing.
C. Concentrated marketing.
D. Niche marketing.
94. What is the primary purpose of a perceptual map in marketing?
A. To visualize how consumers perceive competing brands based on key attributes.
B. To track sales performance over time.
C. To identify potential new product development opportunities.
D. To analyze the profitability of different market segments.
95. Which of the following segmentation bases considers consumers’ social class, lifestyle, and personality traits?
A. Psychographic segmentation.
B. Behavioral segmentation.
C. Demographic segmentation.
D. Geographic segmentation.
96. A company offers a premium version of its product at a higher price, targeting consumers willing to pay for enhanced features and exclusivity. This is an example of:
A. Differentiation strategy.
B. Undifferentiated marketing.
C. Concentrated marketing.
D. Micromarketing.
97. A marketing strategy that aims to create a unique and compelling brand image in the minds of consumers is known as:
A. Positioning.
B. Segmentation.
C. Targeting.
D. Differentiation.
98. A marketer uses data on purchase frequency, loyalty status, and benefits sought to segment the market. This is an example of:
A. Behavioral segmentation.
B. Psychographic segmentation.
C. Geographic segmentation.
D. Demographic segmentation.
99. Which type of segmentation focuses on how consumers think, feel, and behave regarding a product?
A. Psychographic segmentation.
B. Behavioral segmentation.
C. Geographic segmentation.
D. Demographic segmentation.
100. What is the core concept behind ‘value proposition’?
A. The unique bundle of benefits a company promises to deliver to its target customers.
B. The lowest price a product can be offered at.
C. The most extensive distribution network available.
D. The most aggressive advertising campaign possible.
