1. What is the purpose of market segmentation?
A. To target all consumers with the same marketing mix.
B. To divide a market into distinct groups of buyers who have different needs, characteristics, or behaviors.
C. To increase advertising spending.
D. To lower product prices.
2. A company decides to expand its product line to include organic food products. This is an example of:
A. Market penetration.
B. Market development.
C. Product development.
D. Diversification.
3. Which of the following best describes ‘Marketing Myopia’?
A. Focusing on the immediate needs of the company rather than focusing on and satisfying consumer needs.
B. Focusing on the long-term needs of the company rather than focusing on immediate consumer needs.
C. Focusing on product features rather than product benefits.
D. Focusing on advertising rather than on product development.
4. Which of the following best describes a ‘cash cow’ in the BCG matrix?
A. A business with high market share in a high-growth market.
B. A business with low market share in a low-growth market.
C. A business with high market share in a low-growth market.
D. A business with low market share in a high-growth market.
5. What is the purpose of a marketing dashboard?
A. To control the company’s finances.
B. To track the performance of marketing activities.
C. To design new products.
D. To manage human resources.
6. What is the primary benefit of a strong brand positioning?
A. Lower production costs.
B. Clear differentiation from competitors.
C. Reduced advertising spending.
D. Increased employee turnover.
7. What is the role of the marketing mix?
A. To manage the company’s finances.
B. To translate strategy into action.
C. To conduct market research.
D. To develop new products.
8. Which of the following is a potential benefit of market segmentation?
A. Increased marketing costs.
B. More efficient use of marketing resources.
C. Reduced customer satisfaction.
D. Decreased brand loyalty.
9. A company decides to focus its marketing efforts on affluent retirees in Florida. This is an example of:
A. Market diversification.
B. Market penetration.
C. Target marketing.
D. Product development.
10. What is the purpose of a ‘positioning statement’?
A. To define the target market and value proposition.
B. To describe the company’s financial performance.
C. To outline the company’s organizational structure.
D. To list the company’s competitors.
11. What is ‘market penetration’ strategy?
A. Selling a new product in a new market.
B. Increasing sales of current products in current markets.
C. Developing new products for current markets.
D. Entering a completely unrelated market.
12. What is the primary goal of strategic planning in marketing?
A. To maximize short-term sales revenue.
B. To achieve long-term profitable growth.
C. To minimize marketing expenses.
D. To create the most innovative product.
13. A company identifies a new geographic region with similar customer needs as its current market. Entering this region is an example of:
A. Market penetration.
B. Market development.
C. Product development.
D. Diversification.
14. Which of the following is a limitation of using the BCG matrix?
A. It is too complex to understand.
B. It focuses solely on quantitative factors.
C. It can be difficult to define market share and market growth.
D. It does not consider future market trends.
15. How does the BCG matrix classify businesses?
A. Based on employee satisfaction and customer loyalty.
B. Based on market growth rate and relative market share.
C. Based on product innovation and price competitiveness.
D. Based on geographic location and distribution channels.
16. Which of the following is the first step in strategic planning?
A. Defining the company mission.
B. Setting marketing objectives.
C. Analyzing the current business portfolio.
D. Developing growth strategies.
17. Which of the following is NOT a component of a well-written mission statement?
A. A focus on satisfying basic customer needs.
B. An emphasis on the company’s desired profitability.
C. A statement of the company’s values.
D. A detailed description of specific product features.
18. What is ‘differentiation’ in the context of marketing strategy?
A. Offering the lowest prices in the market.
B. Creating superior customer value by actually differentiating the product or service.
C. Selling the same product to all customers.
D. Focusing on cost-cutting measures.
19. Which of the following is a key element of a customer-centric marketing strategy?
A. Focusing solely on maximizing profits.
B. Understanding and meeting customer needs.
C. Ignoring competitor actions.
D. Pushing products onto customers.
20. What is ‘market development’ strategy?
A. Selling current products in new markets.
B. Developing new products for current markets.
C. Increasing sales of current products in current markets.
D. Entering a completely unrelated market.
21. What is the potential downside of a diversification strategy?
A. It always leads to higher profits.
B. It can dilute brand focus and resources.
C. It guarantees market leadership.
D. It simplifies business operations.
22. Which of the following is NOT one of the 4Ps of the marketing mix?
A. Product.
B. Price.
C. Promotion.
D. People.
23. Which of the following is an example of psychographic segmentation?
A. Segmenting based on income level.
B. Segmenting based on age.
C. Segmenting based on lifestyle.
D. Segmenting based on geographic location.
24. What is a ‘value proposition’?
A. A statement of the company’s financial goals.
B. The set of benefits or values a company promises to deliver to consumers to satisfy their needs.
C. A detailed marketing plan.
D. A list of product features.
25. Which of the following is an example of a demographic segmentation variable?
A. Lifestyle.
B. Personality.
C. Age.
D. Values.
26. A company decides to enter a completely new industry. This is an example of:
A. Market penetration.
B. Market development.
C. Product development.
D. Diversification.
27. What does a SWOT analysis primarily evaluate?
A. A company’s past financial performance.
B. A company’s internal strengths and weaknesses, and external opportunities and threats.
C. A company’s advertising effectiveness.
D. A company’s employee satisfaction levels.
28. What is the meaning of ‘return on marketing investment’ (ROMI)?
A. The total amount spent on marketing activities.
B. The net return from a marketing investment divided by the cost of the marketing investment.
C. The number of customers acquired through marketing campaigns.
D. The market share achieved through marketing efforts.
29. Which of the following is an example of a ‘threat’ in a SWOT analysis for a soft drink company?
A. Strong brand reputation.
B. Growing demand for healthier beverages.
C. Efficient distribution network.
D. Innovative marketing campaigns.
30. A company decides to lower its prices to attract more customers in its current market. This is an example of:
A. Market penetration.
B. Market development.
C. Product development.
D. Diversification.
31. Which of the following is an example of psychographic segmentation?
A. Dividing the market based on age
B. Dividing the market based on income
C. Dividing the market based on lifestyle or personality characteristics
D. Dividing the market based on geographic location
32. What is ‘positioning’ in marketing?
A. The physical location of a store
B. Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
C. The process of setting prices
D. The distribution channels used to reach customers
33. What is the main advantage of using demographic segmentation?
A. It is easy to measure and access
B. It provides deep insights into consumer motivations
C. It is highly predictive of consumer behavior
D. It is relatively inexpensive to implement
34. A company decides to target teenage girls with a new line of cosmetics. This is an example of:
A. Market segmentation
B. Market targeting
C. Differentiation
D. Positioning
35. Which of the following is an example of behavioral segmentation?
A. Grouping customers by their occupation
B. Grouping customers by their knowledge, attitudes, uses, or responses to a product
C. Grouping customers by their ethnicity
D. Grouping customers by their social class
36. Which of the following is a key consideration when evaluating the attractiveness of different market segments?
A. Segment size and growth
B. Segment structural attractiveness
C. Company objectives and resources
D. All of the above
37. Which targeting strategy focuses on serving several market segments with specifically tailored offers?
A. Undifferentiated marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
38. A company positions its product as offering ‘more for less’ compared to competitors. What is a potential challenge with this strategy?
A. Difficulty in communicating the value proposition
B. Inability to attract price-sensitive customers
C. Unsustainable profit margins
D. Lack of customer loyalty
39. A car manufacturer emphasizes the safety and reliability of its vehicles. This is an example of:
A. Market segmentation
B. Market targeting
C. Differentiation
D. Positioning
40. A small business decides to focus all its marketing efforts on a single, well-defined segment. This is an example of:
A. Undifferentiated marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
41. A luxury brand focuses on providing superior quality and service. This is an example of:
A. Price leadership
B. Product leadership
C. Operational excellence
D. Customer intimacy
42. A company positions its product as being ‘environmentally friendly’ to appeal to a specific segment. This is an example of:
A. Benefit segmentation
B. Occasion segmentation
C. Usage rate segmentation
D. Loyalty segmentation
43. A company targets customers who purchase its products frequently and in large quantities. This is an example of:
A. Benefit segmentation
B. Occasion segmentation
C. Usage rate segmentation
D. Loyalty segmentation
44. A company changes its product’s image to appeal to a different market segment. This is an example of:
A. Market segmentation
B. Market targeting
C. Differentiation
D. Repositioning
45. What is the potential downside of ‘undifferentiated marketing’?
A. High marketing costs
B. Difficulty in meeting the needs of all customers
C. Increased competition
D. Low brand awareness
46. What is ‘micromarketing’?
A. Marketing to a very small segment or individual
B. Marketing using micro-influencers
C. Marketing with a small budget
D. Marketing only through mobile devices
47. Which of the following is NOT a typical variable used in demographic segmentation?
A. Age
B. Income
C. Lifestyle
D. Occupation
48. Which of the following is NOT a common base for segmenting consumer markets?
A. Geographic
B. Demographic
C. Psychographic
D. Astrological
49. A retailer offers personalized recommendations to customers based on their past purchases. This is an example of:
A. Mass customization
B. Mass marketing
C. Micromarketing
D. Differentiated marketing
50. Which of the following is a potential disadvantage of using a ‘more for more’ positioning strategy?
A. Difficulty in justifying the higher price
B. Low profit margins
C. Limited market share
D. Inability to attract new customers
51. Which of the following is a key factor in determining whether a market segment is ‘substantial’?
A. Accessibility
B. Actionability
C. Profitability
D. Size and purchasing power
52. What is the potential risk of ‘cannibalization’ when using a differentiated marketing strategy?
A. Increased production costs
B. One product’s sales eating into another product’s sales
C. Brand dilution
D. Decreased customer loyalty
53. Which of the following is a potential pitfall of concentrated marketing?
A. High marketing costs
B. Low sales volume
C. Increased competition from larger firms
D. Dependence on a single segment
54. Which of the following is NOT a key element of a customer-driven marketing strategy?
A. Market segmentation
B. Differentiation
C. Mass marketing
D. Targeting
55. A company promises ‘the lowest prices’ in its advertising. What type of positioning is this?
A. More for more
B. More for the same
C. The same for less
D. Less for much less
56. How does ‘differentiation’ relate to ‘competitive advantage’?
A. They are unrelated concepts.
B. Differentiation is a way to achieve competitive advantage.
C. Competitive advantage is a way to achieve differentiation.
D. They are the same thing.
57. What is the primary goal of market segmentation?
A. To increase overall sales volume
B. To identify and profile distinct groups of buyers who might require separate products or marketing mixes
C. To lower advertising costs
D. To create a standardized product for all customers
58. What is a ‘value proposition’ in marketing?
A. The price of a product
B. The company’s mission statement
C. The set of benefits or values a company promises to deliver to customers to satisfy their needs
D. The cost of goods sold
59. What is the purpose of a perceptual map?
A. To track sales data.
B. To visualize how consumers perceive different brands or products on key attributes.
C. To manage inventory.
D. To determine the optimal price point.
60. Which of the following is the first step in designing a customer-driven marketing strategy?
A. Differentiation
B. Segmentation
C. Positioning
D. Targeting
61. What is the purpose of a perceptual map in positioning?
A. To track sales data over time.
B. To visualize how consumers perceive different brands or products on key dimensions.
C. To analyze competitor’s pricing strategies.
D. To identify potential distribution channels.
62. A car manufacturer positions its electric vehicle as ‘the most eco-friendly option’ in the market. This is an example of positioning based on:
A. Price
B. Features
C. Benefits
D. Competitors
63. Which of the following best describes ‘market segmentation’?
A. Dividing a broad consumer or business market into sub-groups of consumers based on shared characteristics.
B. Creating a single marketing mix to appeal to all consumers.
C. Focusing marketing efforts on a single, niche market.
D. Ignoring differences between consumers and treating them as a homogenous group.
64. A product is positioned as ‘the most reliable’ in its category. What type of positioning is this?
A. Price positioning
B. Benefit positioning
C. Attribute positioning
D. Competitor positioning
65. A small business decides to focus all its marketing efforts on serving a small town. This is an example of:
A. Mass marketing
B. Niche marketing
C. Micro-marketing
D. Differentiated marketing
66. A brand of coffee positions itself as ‘the premium choice for discerning coffee lovers’. This is an example of positioning based on:
A. Price
B. Quality
C. Distribution
D. Service
67. Which of the following is the BEST example of demographic segmentation?
A. Targeting customers who frequently purchase online.
B. Targeting customers based on their values and lifestyle.
C. Targeting customers based on their age, income, and education level.
D. Targeting customers who live in a specific geographic region.
68. Which type of segmentation divides the market based on occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item?
A. Psychographic segmentation
B. Geographic segmentation
C. Occasion segmentation
D. Demographic segmentation
69. A local bakery decides to offer gluten-free options to cater to customers with dietary restrictions. This is an example of:
A. Mass marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micro-marketing
70. Which of the following is a potential pitfall of undifferentiated marketing?
A. Increased marketing costs
B. Difficulty competing with firms that use more focused strategies.
C. Over-satisfying customer needs
D. Ignoring the needs of smaller market segments.
71. A company that produces luxury cars targets wealthy individuals. Which segmentation variable are they primarily using?
A. Geographic
B. Demographic
C. Psychographic
D. Behavioral
72. What is the main goal of market segmentation?
A. To increase the overall size of the market.
B. To identify and understand different groups of customers with similar needs and wants.
C. To reduce competition in the marketplace.
D. To lower production costs.
73. Which of the following is a potential disadvantage of differentiated marketing?
A. Lower customer satisfaction
B. Higher marketing and production costs
C. Reduced market share
D. Inability to reach niche markets
74. Why is it important for a market segment to be ‘accessible’?
A. To ensure the segment is profitable.
B. To ensure the segment is large enough.
C. To ensure the segment can be effectively reached and served.
D. To ensure the segment is easily identifiable.
75. A company decides to focus its marketing efforts on young, urban professionals with high disposable income. This is an example of:
A. Mass marketing
B. Niche marketing
C. Micro-marketing
D. Differentiated marketing
76. Which of the following is an example of benefit segmentation?
A. Targeting customers based on their age.
B. Targeting customers who live in urban areas.
C. Targeting customers who are looking for value for money.
D. Targeting customers based on their social class.
77. What is ‘market targeting’?
A. Developing a marketing strategy to influence competitors’ actions.
B. Evaluating the attractiveness of different market segments and selecting one or more to enter.
C. Creating a product that appeals to every consumer in the market.
D. Ignoring market segmentation and focusing on mass marketing.
78. What is the key difference between concentrated marketing and micro-marketing?
A. Concentrated marketing targets a large segment, while micro-marketing targets a small segment.
B. Concentrated marketing focuses on individual customers, while micro-marketing targets broader segments.
C. Concentrated marketing targets one or a few segments, while micro-marketing tailors to individual needs and wants.
D. There is no difference; the terms are interchangeable.
79. Which of the following is NOT a factor to consider when evaluating the attractiveness of a market segment?
A. Segment size and growth
B. Segment structural attractiveness
C. Company objectives and resources
D. The personal preferences of the CEO
80. Which of the following is NOT a common basis for segmenting consumer markets?
A. Geographic location
B. Demographic characteristics
C. Psychographic lifestyle
D. Competitor’s marketing budget
81. A toothpaste brand positions itself as effective for whitening teeth and preventing cavities. This is an example of positioning based on:
A. Price
B. Benefits
C. Attributes
D. Competitors
82. A company discovers that a segment they are targeting is not substantial enough to be profitable. Which characteristic of effective segmentation is lacking?
A. Measurable
B. Accessible
C. Substantial
D. Differentiable
83. When positioning a product, it’s important to communicate the:
A. Lowest possible price.
B. Product’s unique selling proposition (USP).
C. Company’s mission statement.
D. Number of employees in the company.
84. Which of the following is a potential risk of concentrated marketing?
A. High marketing costs
B. Dependence on a single segment
C. Difficulty reaching customers
D. Inability to differentiate the product
85. What is the primary benefit of using a differentiated marketing strategy?
A. Reduced marketing costs due to standardized campaigns.
B. Increased market share by appealing to a wider range of customer needs.
C. Simplified production processes and inventory management.
D. Elimination of competition through a focused market approach.
86. What is ‘positioning’ in marketing?
A. Securing shelf space in retail stores.
B. Creating a clear, distinctive, and desirable place for a product relative to competing products in the minds of target consumers.
C. Lowering prices to gain a competitive advantage.
D. Expanding into new geographic markets.
87. A company selling organic food products targets health-conscious consumers. This is an example of segmentation based on:
A. Demographics
B. Psychographics
C. Geography
D. Behavior
88. A company that produces specialized equipment for mountain climbing targets experienced climbers. This is an example of:
A. Mass marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micro-marketing
89. A company that sells high-endurance sports equipment might segment its market based on athletes’ skill level (beginner, intermediate, advanced). This is an example of:
A. Demographic segmentation
B. Psychographic segmentation
C. Behavioral segmentation
D. Geographic segmentation
90. When evaluating market segments, ‘structural attractiveness’ refers to:
A. The physical appearance of the products sold in the segment.
B. The competitive intensity and profitability of the segment.
C. The demographic characteristics of the segment members.
D. The ease with which the segment can be reached through advertising.
91. A company that targets ‘early adopters’ of technology is using which type of segmentation?
A. Geographic segmentation.
B. Demographic segmentation.
C. Behavioral segmentation.
D. Psychographic segmentation.
92. A value proposition that focuses on ‘more for less’ is suggesting what?
A. Offering higher quality at a lower price compared to competitors.
B. Offering fewer features at a lower price.
C. Offering the same quality at a higher price.
D. Offering more features at a higher price.
93. What is ‘micromarketing’?
A. Targeting a broad market with a standardized product.
B. Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments.
C. Focusing on a small number of large customers.
D. Using social media to reach a mass audience.
94. Which of the following is NOT a step in the target marketing process?
A. Market segmentation.
B. Market targeting.
C. Market positioning.
D. Product development.
95. Which of the following is NOT a way to differentiate a company’s offering?
A. Product differentiation (features, performance, style, design).
B. Services differentiation (speedy, convenient, careful delivery).
C. Channel differentiation (coverage, expertise, performance).
D. Price differentiation (offering the lowest price).
96. A company promoting its product as ‘the most reliable’ is using which positioning strategy?
A. Price positioning.
B. Quality positioning.
C. Benefit positioning.
D. Competitor positioning.
97. Which of the following is an example of geographic segmentation?
A. Dividing the market based on income levels.
B. Dividing the market based on region, city size, or climate.
C. Dividing the market based on lifestyle.
D. Dividing the market based on purchase frequency.
98. What is ‘undifferentiated marketing’ (or mass marketing)?
A. Targeting several market segments and designing separate offers for each.
B. Ignoring market segment differences and targeting the entire market with one offer.
C. Concentrating on a large share of one or a few segments.
D. Offering a wide variety of products to appeal to different segments.
99. What is a ‘perceptual map’ used for in marketing?
A. To track sales data over time.
B. To visualize how consumers perceive different brands or products.
C. To identify the best geographic locations for new stores.
D. To analyze the cost of marketing campaigns.
100. A company repositioning its brand is attempting to do what?
A. Increase its market share in the current segment.
B. Change consumers’ perceptions of the brand relative to competitors.
C. Lower its prices to attract more customers.
D. Expand its product line to reach new markets.
101. What is the purpose of a ‘value proposition’?
A. To define the product’s features and benefits.
B. To communicate why a customer should buy a particular product or service.
C. To set the price of a product.
D. To determine the distribution channels for a product.
102. What is the purpose of creating a ‘differentiation strategy’?
A. To create a product that is identical to competitors’.
B. To create superior customer value by actually differentiating the company’s offering.
C. To lower prices below competitors’.
D. To target all possible market segments.
103. What is the primary goal of market targeting?
A. To identify all potential customers.
B. To select the segment(s) that the company can serve best and most profitably.
C. To create a product that appeals to everyone.
D. To minimize marketing expenses.
104. Which of the following is an example of demographic segmentation?
A. Segmenting the market based on lifestyle.
B. Segmenting the market based on personality traits.
C. Segmenting the market based on age and income.
D. Segmenting the market based on brand loyalty.
105. What does ‘market positioning’ refer to?
A. The physical location of a store.
B. The place a product occupies in consumers’ minds relative to competing products.
C. The price point of a product.
D. The distribution channels used to sell a product.
106. What is the key benefit of using a ‘niche market’ strategy?
A. Higher market share across all segments.
B. Reduced competition and specialized expertise.
C. Lower marketing costs due to mass marketing.
D. Increased brand awareness among all consumers.
107. A company choosing to focus on a large share of one or a few smaller segments is using which strategy?
A. Undifferentiated marketing.
B. Differentiated marketing.
C. Concentrated marketing.
D. Micromarketing.
108. A company using ‘occasion segmentation’ might promote which of the following?
A. A product that is used daily by most consumers.
B. A product that is only used during specific holidays or events.
C. A product that is targeted towards a specific age group.
D. A product that is sold at a discounted price.
109. Which of the following is NOT a criterion for effective market segmentation?
A. Measurable.
B. Accessible.
C. Homogeneous.
D. Substantial.
110. A company that offers personalized products and services is likely using which targeting strategy?
A. Mass marketing.
B. Segment marketing.
C. Niche marketing.
D. Micromarketing.
111. What is the primary purpose of market segmentation?
A. To create a single marketing mix for all customers.
B. To divide a broad consumer or business market into sub-groups of consumers based on shared characteristics.
C. To increase the overall marketing budget.
D. To reduce the number of products offered.
112. What is the main advantage of using multiple segmentation bases?
A. It simplifies the marketing process.
B. It allows for a more precise and targeted approach.
C. It reduces the cost of marketing research.
D. It guarantees a larger market share.
113. A company aiming for ‘product leadership’ is likely pursuing which positioning strategy?
A. Price positioning.
B. Quality positioning.
C. Service positioning.
D. Benefit positioning.
114. What does ‘psychographic segmentation’ primarily focus on?
A. Customer’s geographic location.
B. Customer’s age and gender.
C. Customer’s lifestyle, values, and attitudes.
D. Customer’s purchasing history.
115. Which of the following is a potential risk of concentrated marketing?
A. High marketing costs.
B. Dependence on a single segment that could decline.
C. Difficulty in differentiating from competitors.
D. Inability to reach a large audience.
116. What is ‘benefit segmentation’?
A. Dividing the market based on geographic location.
B. Dividing the market based on the different benefits that consumers seek from a product.
C. Dividing the market based on demographic characteristics.
D. Dividing the market based on brand loyalty.
117. Which of the following is a potential drawback of differentiated marketing?
A. Lower overall sales volume.
B. Higher marketing costs due to separate campaigns for each segment.
C. Increased risk of product cannibalization.
D. Reduced brand loyalty among customers.
118. Which of the following is NOT a core aspect of defining a target market?
A. Identifying competitors’ strengths and weaknesses.
B. Determining the geographic location of potential customers.
C. Understanding the demographic characteristics of potential customers.
D. Analyzing the psychographic traits of potential customers.
119. How does ‘competitive advantage’ relate to market positioning?
A. It is irrelevant to market positioning.
B. It forms the basis for effective market positioning by highlighting what makes a product superior.
C. It only affects the pricing strategy, not the overall positioning.
D. It is only important for new products, not established ones.
120. Which of the following is NOT a typical base for segmenting business markets?
A. Demographics (industry, company size).
B. Operating characteristics (technology, user status).
C. Purchasing approaches (purchasing policies, buying criteria).
D. Lifestyle (activities, interests, opinions).
121. Which of the following reflects a micromarketing approach?
A. Mass advertising on national television
B. Personalized email campaigns based on individual customer purchase history
C. Offering a standardized product line to all customers
D. Focusing on a single, well-defined market segment
122. A company decides to serve several market segments and designs separate offers for each. This approach is called:
A. Mass marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
123. Which of the following is an example of behavioral segmentation?
A. Dividing the market based on climate
B. Dividing the market based on lifestyle
C. Dividing the market based on purchase frequency
D. Dividing the market based on social class
124. Which targeting strategy focuses on capturing a large share of a small market segment?
A. Mass marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
125. If a company focuses on becoming the ‘leader in technology’ within its industry, this is an example of positioning based on:
A. Price
B. Attributes
C. Benefits
D. Occasions
126. What is the danger of ‘underpositioning’ a brand?
A. Consumers have a too-narrow understanding of the brand
B. Consumers have a vague idea of the brand
C. Consumers have an inaccurate perception of the brand
D. Consumers are overwhelmed by the brand’s benefits
127. What is ‘positioning’ in the context of marketing?
A. Securing the best retail locations for a product
B. Creating a clear, distinctive, and desirable place for a product in the target consumer’s mind
C. Negotiating favorable terms with suppliers
D. Developing the most efficient production process
128. A company that targets teenagers with trendy clothing utilizes which type of segmentation?
A. Geographic segmentation
B. Demographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
129. If a car company positions its vehicles as ‘safe and reliable,’ it is primarily targeting which consumer benefit?
A. Status
B. Convenience
C. Peace of mind
D. Excitement
130. Which type of segmentation divides the market based on consumer knowledge, attitudes, uses, or responses to a product?
A. Demographic segmentation
B. Geographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
131. What is the purpose of perceptual mapping in positioning?
A. To determine the optimal price point for a product
B. To visually represent consumer perceptions of different brands in the market
C. To analyze the distribution channels used by competitors
D. To measure the effectiveness of advertising campaigns
132. Which of the following is NOT a requirement for effective segmentation?
A. Measurable
B. Accessible
C. Substantial
D. Homogeneous
133. A coffee shop offering a ‘student discount’ is using which type of segmentation?
A. Geographic segmentation
B. Demographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
134. Which of the following is NOT a typical base for segmenting consumer markets?
A. Geographic
B. Demographic
C. Psychographic
D. Production capacity
135. A company promoting its product as the ‘most reliable’ is using which type of differentiation?
A. Price differentiation
B. Service differentiation
C. Product differentiation
D. Image differentiation
136. A company’s ‘value proposition’ is:
A. A statement of the company’s mission and vision
B. The set of benefits or values it promises to deliver to consumers to satisfy their needs
C. A detailed description of the company’s products and services
D. A financial forecast of the company’s future earnings
137. Which positioning strategy focuses on communicating why a brand is superior to its competitors?
A. Head-to-head positioning
B. Differentiation positioning
C. Product attribute positioning
D. Benefit positioning
138. What is the meaning of ‘competitive advantage’ in the context of marketing?
A. Offering lower prices than competitors
B. Having assets that competitors cannot easily match or imitate
C. Dominating the largest market share
D. Having the most aggressive advertising campaign
139. What is the potential risk of ‘confused positioning’?
A. Consumers have a clear but negative perception of the brand
B. Consumers are overwhelmed by the brand’s benefits
C. Consumers are unsure of what the brand stands for
D. Consumers perceive the brand as too expensive
140. What is the primary goal of differentiation in marketing?
A. To offer the lowest prices in the market
B. To create a unique and superior value proposition compared to competitors
C. To target all customers with a standardized product
D. To minimize marketing expenses
141. Which of the following is a potential drawback of using a differentiated marketing strategy?
A. Lower overall marketing costs
B. Higher customer loyalty across all segments
C. Increased costs due to separate marketing campaigns for each segment
D. Reduced complexity in managing marketing efforts
142. Which of the following is NOT a key element of a customer-driven marketing strategy?
A. Market segmentation
B. Differentiation
C. Micromarketing
D. Production orientation
143. What is ‘overpositioning’?
A. Giving buyers too narrow a picture of the company
B. Positioning the product too broadly
C. Not positioning the product clearly
D. Changing the brand’s position too frequently
144. What is the primary benefit of market segmentation?
A. Reducing overall marketing expenses
B. Increasing production efficiency
C. More effectively meeting the needs of specific customer groups
D. Simplifying the product development process
145. Which of the following is a potential disadvantage of concentrated marketing?
A. Higher marketing costs
B. Greater risk due to reliance on a single segment
C. Difficulty in differentiating the product
D. Lower customer loyalty
146. A car manufacturer promoting its vehicle as ‘environmentally friendly’ is using which type of differentiation?
A. Product differentiation
B. Service differentiation
C. Channel differentiation
D. People differentiation
147. A restaurant chain that offers a special menu for senior citizens is using which type of segmentation?
A. Geographic
B. Demographic
C. Psychographic
D. Behavioral
148. A luxury brand emphasizing its heritage and craftsmanship is using which type of differentiation?
A. Channel differentiation
B. People differentiation
C. Image differentiation
D. Service differentiation
149. Which of the following is a key consideration when choosing a differentiation and positioning strategy?
A. The company’s existing organizational structure
B. The profitability of the company’s suppliers
C. The value offered to target customers relative to competitors
D. The company’s internal accounting practices
150. A company that adapts its marketing messages to different cultural groups is using which type of segmentation?
A. Demographic segmentation
B. Psychographic segmentation
C. Geographic segmentation
D. Behavioral segmentation
