1. Which of the following is a potential pitfall of differentiation?
A. Creating a product that is too similar to competitors’ products
B. Creating a product that is too complex and difficult to use
C. Differentiating on attributes that customers don’t value
D. Offering too few product options
2. A company decides to focus its marketing efforts on millennials. This is an example of:
A. Market segmentation
B. Market diversification
C. Targeting
D. Product development
3. A company that targets only wealthy individuals is using:
A. Geographic segmentation
B. Demographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
4. What is a ‘niche’ market?
A. A very large and diverse market
B. A narrowly defined group of customers with specific needs
C. A market with very low barriers to entry
D. A market dominated by a single large company
5. Which of the following is an example of psychographic segmentation?
A. Grouping customers by their income level
B. Grouping customers by their geographic location
C. Grouping customers by their lifestyle, values, and personality
D. Grouping customers by their age and gender
6. A company positions its product as ‘the most luxurious’ option. This is an example of positioning based on:
A. Price
B. Attributes
C. Benefits
D. Competitors
7. When a company adapts its offerings to closely match the needs of individual customers, it is practicing:
A. Mass customization
B. Differentiated marketing
C. Concentrated marketing
D. Undifferentiated marketing
8. A company that ignores segment differences and targets the whole market with one offer is using:
A. Differentiated marketing
B. Concentrated marketing
C. Micromarketing
D. Undifferentiated (mass) marketing
9. Which of the following best describes ‘differentiation’ in marketing?
A. Creating a product that is identical to competitors’ products
B. Creating a product that is perceived as unique and superior compared to competitors’ products
C. Selling a product at the lowest possible price
D. Targeting a broad market segment with a standardized product
10. Which of the following is NOT a requirement for effective segmentation?
A. Measurable
B. Accessible
C. Substantial
D. Homogeneous
11. Which of the following is an example of demographic segmentation?
A. Segmenting the market based on lifestyle and values
B. Segmenting the market based on geographic region
C. Segmenting the market based on age, gender, income, or education
D. Segmenting the market based on product usage rate
12. Which of the following is a key benefit of market segmentation?
A. It allows companies to ignore customer differences
B. It allows companies to develop more effective marketing strategies
C. It allows companies to sell products at a lower price
D. It allows companies to reduce their product development costs
13. A value proposition answers which question?
A. How will we finance our operations?
B. Why should customers buy our product instead of a competitor’s?
C. What is our production capacity?
D. Who are our key suppliers?
14. What is ‘occasion’ segmentation?
A. Dividing the market based on the time of year
B. Dividing the market based on when customers purchase or use a product
C. Dividing the market based on the price of the product
D. Dividing the market based on the location of the customer
15. A company offering ‘the best quality’ is an example of which type of differentiation?
A. Price differentiation
B. Service differentiation
C. Product differentiation
D. Image differentiation
16. What is the first step in designing a customer-driven marketing strategy?
A. Differentiation
B. Positioning
C. Segmentation
D. Targeting
17. Which of the following is NOT a common basis for segmenting consumer markets?
A. Geographic
B. Demographic
C. Psychographic
D. Geologic
18. A company positions its product as ‘the safest’ option. This is an example of positioning based on:
A. Price
B. Attributes
C. Benefits
D. Competitors
19. What is ‘positioning’ in marketing?
A. The process of determining the cost of a product
B. The place a product occupies in consumers’ minds relative to competing products
C. The physical location where a product is sold
D. The distribution channels used to get a product to market
20. A company known for its exceptional customer service is using which type of differentiation?
A. Product differentiation
B. Price differentiation
C. Service differentiation
D. Image differentiation
21. Which targeting strategy focuses on serving several segments with tailored offerings?
A. Mass marketing
B. Niche marketing
C. Micromarketing
D. Differentiated marketing
22. Which of the following is a potential drawback of using a differentiated marketing strategy?
A. Lower customer satisfaction
B. Higher marketing costs
C. Reduced brand awareness
D. Decreased product quality
23. What is the purpose of a perceptual map?
A. To track sales performance over time
B. To visually represent how consumers perceive different brands or products
C. To analyze the cost structure of a business
D. To identify potential new market segments
24. What is the ultimate goal of positioning?
A. To create a clear, distinctive, and desirable place for the product in the target consumer’s mind
B. To minimize marketing expenses
C. To maximize production efficiency
D. To achieve the highest possible sales volume
25. Which of the following is NOT a factor to consider when evaluating different market segments?
A. Segment size and growth
B. Segment structural attractiveness
C. Company objectives and resources
D. Competitor’s advertising budget
26. What is ‘micromarketing’?
A. Marketing to a very large, undifferentiated market
B. Marketing to a narrow segment or even individual customers
C. Marketing using only social media platforms
D. Marketing with a very small budget
27. What does ‘concentrated marketing’ involve?
A. Targeting a large portion of several segments
B. Targeting a small share of a large market
C. Targeting a large share of one or a few smaller segments
D. Targeting all possible market segments
28. What is ‘usage rate’ segmentation?
A. Dividing the market based on how frequently customers use a product
B. Dividing the market based on the price of the product
C. Dividing the market based on the geographic location of customers
D. Dividing the market based on the age of customers
29. What is the primary goal of market segmentation?
A. To maximize sales volume across all customer groups
B. To divide a market into distinct groups of buyers who have different needs, characteristics, or behaviors
C. To create a single marketing mix that appeals to the entire market
D. To minimize marketing expenses by targeting only the most profitable customers
30. Which of the following is NOT a key element of a customer-driven marketing strategy?
A. Market segmentation
B. Differentiation
C. Product proliferation
D. Targeting
31. A customer who is satisfied with a product is most likely to:
A. Switch to a competitor’s product.
B. Complain to the company.
C. Become a loyal customer and advocate for the product.
D. Demand a lower price.
32. What is customer relationship management (CRM)?
A. A software used to manage inventory.
B. The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
C. A department responsible for handling customer complaints.
D. A strategy for reducing marketing costs.
33. An online retailer analyzes its customer database to identify high-value customers and tailors marketing offers specifically to their preferences. This is an example of:
A. Mass marketing
B. Customer relationship management (CRM)
C. Product development
D. Supply chain management
34. Which of the following best describes ‘marketing myopia’?
A. Focusing only on existing wants and losing sight of underlying consumer needs
B. Focusing on societal well-being rather than company profits
C. Focusing on short-term sales rather than building long-term customer relationships
D. Focusing on cost reduction rather than product differentiation
35. What is the societal marketing concept?
A. A marketing strategy that focuses solely on increasing sales.
B. A marketing strategy that focuses on immediate customer satisfaction.
C. A marketing strategy that considers the long-run welfare of consumers, the company, and society.
D. A marketing strategy that ignores environmental concerns.
36. A local bakery decides to donate a portion of its profits to a local charity. This is an example of:
A. Product differentiation
B. Societal marketing
C. Sales promotion
D. Cost leadership
37. What is the primary difference between a ‘want’ and a ‘need’?
A. A want is a basic human requirement, while a need is a specific satisfier.
B. A need is a basic human requirement, while a want is a specific satisfier of that requirement.
C. There is no difference between a want and a need.
D. Wants are more important than needs.
38. A customer who is highly profitable but not loyal is classified as a:
A. Stranger
B. Butterfly
C. True Friend
D. Barnacle
39. Which of the following is an example of a ‘share of customer’ increase?
A. Acquiring new customers.
B. Selling more products to existing customers.
C. Reducing marketing expenses.
D. Increasing prices.
40. A company is facing declining sales due to increased competition. Which of the following approaches would be most consistent with the marketing concept?
A. Increasing advertising spending to promote existing products.
B. Conducting market research to better understand customer needs and adapt product offerings.
C. Lowering prices to attract price-sensitive customers.
D. Implementing aggressive sales tactics to push products to consumers.
41. What is ‘customer equity’?
A. The total investment a company makes in customer service.
B. The combined customer lifetime values of all of the company’s customers.
C. The value of the company’s brand.
D. The number of customers a company has.
42. A company decides to ignore market segmentation and target the entire market with a single product and marketing program. This is an example of:
A. Niche marketing
B. Micromarketing
C. Mass marketing
D. Differentiated marketing
43. Which marketing trend involves using digital marketing tools such as websites, social media, and mobile apps?
A. Sustainable marketing
B. Digital and social marketing
C. Not-for-profit marketing
D. Global marketing
44. Which of the following is the most likely result of a company focusing solely on the production concept?
A. High customer satisfaction
B. Efficient production but potential lack of demand
C. Strong brand loyalty
D. High prices and low sales volume
45. Which customer relationship group is characterized by high profitability and high loyalty?
A. Strangers
B. Butterflies
C. True Friends
D. Barnacles
46. What is ‘customer lifetime value’?
A. The total number of customers a company has.
B. The value of the product to the customer.
C. The stream of profits a customer will create over the life of their relationship with a business.
D. The cost of acquiring a new customer.
47. What is the potential downside of solely focusing on customer satisfaction?
A. Increased customer loyalty
B. Higher customer lifetime value
C. Potential neglect of societal or employee well-being
D. Stronger brand reputation
48. Which of the following is the aim of marketing?
A. To maximize production efficiency.
B. To make selling unnecessary.
C. To minimize costs.
D. To increase advertising spending.
49. How has the rise of digital technology impacted marketing practices?
A. It has made marketing less personalized.
B. It has decreased the importance of customer feedback.
C. It has allowed for more direct and personalized customer engagement.
D. It has reduced the need for market research.
50. How does ‘customer equity’ relate to the long-term success of a business?
A. It has no impact on long-term success.
B. Higher customer equity indicates a more valuable customer base and greater potential for future revenue.
C. It only reflects past sales performance.
D. It is solely a measure of brand awareness.
51. Which marketing orientation holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do?
A. The Production Concept
B. The Selling Concept
C. The Marketing Concept
D. The Societal Marketing Concept
52. What is customer-perceived value?
A. The cost of the product to the company.
B. The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.
C. The price of the product in the market.
D. The features of the product.
53. Which of the following is NOT a typical marketing management function?
A. Market research
B. Product development
C. Customer service
D. Financial accounting
54. A company adhering to the ‘selling concept’ is most likely to:
A. Focus on creating products that customers need.
B. Focus on heavy promotional efforts to sell what they produce.
C. Focus on building long-term relationships with customers.
D. Focus on understanding the needs of the customer first.
55. Which of the following is NOT a core concept of marketing?
A. Needs, wants, and demands
B. Targeting and positioning
C. Value and satisfaction
D. Production and inventory management
56. What is the definition of a ‘need’ in the context of marketing?
A. A want backed by purchasing power
B. A state of felt deprivation
C. A specific way to satisfy a want
D. The process of exchanging goods and services
57. What is the role of marketing management?
A. To manage the company’s finances.
B. To manage the product development process.
C. To manage profitable customer relationships.
D. To manage the company’s legal affairs.
58. A car manufacturer focuses on producing affordable and fuel-efficient vehicles, believing that customers primarily seek value for their money. This aligns with which concept?
A. Selling concept
B. Marketing concept
C. Production concept
D. Societal marketing concept
59. A company that focuses on creating environmentally friendly products and donating a portion of profits to environmental causes is practicing:
A. The selling concept
B. The production concept
C. The societal marketing concept
D. The marketing concept
60. A company that segments its market, selects which segments to serve, and determines how it wants to create value for those segments is practicing:
A. Mass marketing
B. Target marketing
C. Product marketing
D. Social marketing
61. A company that aims to meet present needs without compromising the ability of future generations to meet their own needs is practicing:
A. Sustainable marketing
B. Myopic marketing
C. Production-oriented marketing
D. Selling-oriented marketing
62. Which of the following is NOT a typical outcome of creating customer value and satisfaction?
A. Increased customer loyalty
B. Higher customer lifetime value
C. Reduced marketing costs
D. Decreased customer equity
63. How can companies increase their ‘share of customer’?
A. By increasing prices.
B. By decreasing marketing expenses.
C. By offering a wider variety of products and services to existing customers.
D. By focusing on acquiring new customers only.
64. Which marketing orientation holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do?
A. The product concept
B. The selling concept
C. The marketing concept
D. The societal marketing concept
65. A company that aggressively promotes and sells products that customers don’t really need is most likely following the:
A. Marketing concept
B. Production concept
C. Selling concept
D. Societal marketing concept
66. What is ‘share of customer’?
A. The percentage of the company’s total sales attributed to a specific customer.
B. The portion of the customer’s purchasing that a company gets in its product categories.
C. The company’s market share in a specific geographic region.
D. The number of customers a company has compared to its competitors.
67. How does the focus of the ‘selling concept’ differ from that of the ‘marketing concept’?
A. The selling concept focuses on long-term customer relationships, while the marketing concept focuses on short-term sales.
B. The selling concept focuses on existing products and aggressive sales, while the marketing concept focuses on customer needs and integrated marketing.
C. The selling concept is more concerned with societal well-being than the marketing concept.
D. The marketing concept is outdated, while the selling concept is modern and effective.
68. A company that focuses on continuously improving its product without considering customer needs may be suffering from:
A. Marketing myopia
B. The selling concept
C. The production concept
D. Product orientation
69. What is the societal marketing concept?
A. A marketing philosophy that focuses solely on maximizing profits.
B. A marketing philosophy that focuses solely on meeting customer needs.
C. A marketing philosophy that balances company profits, customer wants, and society’s interests.
D. A marketing philosophy that focuses on aggressive selling and promotion.
70. Which of the following is the most accurate definition of ‘customer lifetime value’?
A. The total sales revenue a customer generates for a company.
B. The discounted stream of future profits a customer is expected to generate over their relationship with the firm.
C. The average amount of money a customer spends per transaction.
D. The number of years a customer remains loyal to a company.
71. Which of the following is a potential downside of the ‘selling concept’?
A. It may lead to satisfied and loyal customers.
B. It prioritizes customer needs and wants.
C. It may damage customer relationships due to aggressive sales tactics.
D. It focuses on building long-term customer equity.
72. What is the definition of a ‘need’ in the context of marketing?
A. A want that is backed by buying power.
B. A state of felt deprivation.
C. The form human needs take as they are shaped by culture and individual personality.
D. A specific product that satisfies a want.
73. What is ‘customer equity’?
A. The total combined customer lifetime values of all of the company’s customers.
B. The percentage of a customer’s purchasing that a company gets in its product categories.
C. The company’s brand value as perceived by its customers.
D. The cost of acquiring a new customer.
74. A company focusing solely on production and distribution efficiency, without considering customer needs, is exhibiting which marketing orientation?
A. The marketing concept
B. The societal marketing concept
C. The production concept
D. The selling concept
75. Which of the following is NOT a core concept of marketing, as outlined in Chapter 2?
A. Needs, wants, and demands
B. Product, value, cost, and satisfaction
C. Exchange, transactions, and relationships
D. Production processes and logistical efficiency
76. The ‘selling concept’ is most suitable in which of the following situations?
A. When a company has a product that customers know they want.
B. When a company is dealing with unsought goods.
C. When a company focuses on building long-term customer relationships.
D. When a company is in a highly competitive market.
77. Which of the following is an example of a company creating ‘customer-managed relationships’?
A. A company sending personalized emails to customers based on their purchase history.
B. A company allowing customers to customize their own products online.
C. A company conducting a customer satisfaction survey.
D. A company using social media to advertise its products.
78. How does ‘perceived value’ differ from ‘actual value’?
A. Perceived value is the objective quality of the product, while actual value is the subjective benefit to the customer.
B. Perceived value is the customer’s subjective evaluation of the benefits relative to the costs, while actual value is the objective worth of the product.
C. Perceived value is the price of the product, while actual value is the cost of production.
D. There is no difference between perceived value and actual value.
79. Which of the following best describes a ‘market’ in the context of marketing?
A. A physical place where buyers and sellers exchange goods.
B. A group of actual and potential buyers of a product or service.
C. A collection of similar products or services.
D. A method of advertising and promotion.
80. What is the meaning of ‘customer-perceived value’?
A. The cost of the product to the customer.
B. The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.
C. The actual quality and features of the product.
D. The company’s perception of what the customer values.
81. What is ‘marketing myopia’?
A. Focusing on the specific products a company offers rather than the benefits and experiences produced by these products.
B. Focusing on short-term sales rather than building long-term customer relationships.
C. Ignoring the needs of society in favor of maximizing profits.
D. Overspending on marketing and advertising efforts.
82. Which of the following is the best example of a ‘want’?
A. The need for food
B. The need for shelter
C. A desire for a specific brand of pizza
D. The need for clothing
83. What is the role of ‘marketing intermediaries’ in delivering value?
A. They are responsible for creating the product.
B. They help the company to promote, sell, and distribute its products to final buyers.
C. They provide financing for the company’s operations.
D. They conduct market research on behalf of the company.
84. What is the primary goal of ‘customer relationship management’ (CRM)?
A. To maximize short-term sales revenue
B. To acquire as many new customers as possible
C. To build and maintain profitable customer relationships by delivering superior customer value and satisfaction
D. To minimize marketing expenses
85. How does the ‘production concept’ differ from the ‘product concept’?
A. The production concept focuses on product quality, while the product concept focuses on production efficiency.
B. The production concept focuses on production efficiency and low costs, while the product concept focuses on continuous product improvements.
C. The production concept is customer-oriented, while the product concept is company-oriented.
D. There is no difference between the production concept and the product concept.
86. What is the difference between ‘wants’ and ‘demands’?
A. Wants are basic human needs, while demands are desires shaped by culture.
B. Wants are desires shaped by culture and personality, while demands are wants backed by buying power.
C. Wants are unlimited, while demands are limited.
D. There is no difference between wants and demands.
87. A company decides to reduce its environmental impact by using sustainable packaging and reducing waste. This is an example of:
A. Product differentiation
B. The selling concept
C. Societal marketing
D. Market segmentation
88. How does ‘customer delight’ differ from ‘customer satisfaction’?
A. Customer satisfaction focuses on meeting expectations, while customer delight involves exceeding expectations.
B. Customer delight is a measure of customer loyalty, while customer satisfaction is not.
C. Customer satisfaction is more important than customer delight.
D. Customer delight is a short-term goal, while customer satisfaction is a long-term goal.
89. A local bakery decides to donate a percentage of its profits to a local homeless shelter. This is an example of:
A. The production concept
B. The selling concept
C. The marketing concept
D. The societal marketing concept
90. Which of the following is an example of ‘customer-managed relationships’?
A. A company sending out mass emails to all potential customers.
B. Customers creating online reviews and forums about a product.
C. A company using telemarketing to reach customers.
D. A company conducting market research to understand customer needs.
91. A non-profit organization promotes a campaign to encourage people to recycle. This aligns with which marketing concept?
A. Selling concept
B. Marketing concept
C. Societal marketing concept
D. Production concept
92. Which of the 4Ps of marketing represents the value that the company captures from the customer?
A. Product
B. Price
C. Place
D. Promotion
93. If a company focuses too much on its existing products and neglects to consider evolving customer needs or new technologies, it is suffering from:
A. Marketing myopia
B. Customer relationship management
C. Market segmentation
D. Value proposition
94. A marketing team is analyzing data to understand the different characteristics and behaviors of their customer base. Which marketing activity are they performing?
A. Product development
B. Market segmentation
C. Advertising campaign planning
D. Sales forecasting
95. A retail store uses loyalty programs and personalized emails to build stronger relationships with its customers. This is an example of:
A. Mass marketing
B. Product differentiation
C. Customer relationship management
D. Supply chain management
96. Which of the 4Ps of marketing involves decisions about distribution channels and logistics?
A. Product
B. Price
C. Place
D. Promotion
97. What is the focus of the ‘societal marketing concept’?
A. Purely maximizing profits for the company.
B. Balancing company profits, consumer wants, and society’s interests.
C. Focusing solely on meeting consumer wants.
D. Ignoring the needs of society.
98. Which of the following is NOT a key element of a customer-driven marketing strategy?
A. Market segmentation
B. Targeting
C. Differentiation
D. Mass production
99. A company promises to deliver products to customers within 24 hours. This promise is part of the company’s:
A. Mission statement
B. Value proposition
C. Marketing plan
D. Production schedule
100. A restaurant chain partners with local farmers to source fresh ingredients. This is an example of:
A. Customer relationship management
B. Partner relationship management
C. Supply chain management
D. Inventory management
101. A tech company offers free cloud storage to customers who purchase their laptops. This is part of the company’s:
A. Production strategy
B. Pricing strategy
C. Value proposition
D. Distribution strategy
102. The ‘selling concept’ is most likely to be practiced when:
A. The product is a convenience item.
B. Demand for the product is very high.
C. The product is unsought or customers don’t know they need it.
D. Customers are highly knowledgeable about the product category.
103. Which of the following is an example of ‘partner relationship management’?
A. Managing relationships with individual customers.
B. Working closely with suppliers to improve product quality.
C. Developing new products internally.
D. Focusing solely on short-term sales goals.
104. What is the definition of ‘market segmentation’?
A. Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate products or marketing programs.
B. The process of selling products to international markets.
C. Creating a new product line to appeal to a wider audience.
D. Aggregating all customers into one large homogenous group.
105. An electronics company releases a new smartphone with cutting-edge features, assuming that customers will be drawn to its superior technology. This reflects which marketing management orientation?
A. Selling concept
B. Marketing concept
C. Production concept
D. Product concept
106. What is ‘customer lifetime value’?
A. The percentage of customers who repurchase a product.
B. The total combined customer equity of a company’s current and potential customers.
C. The value of the entire stream of purchases a customer makes over a lifetime of patronage.
D. The cost of acquiring a new customer.
107. What is a ‘value proposition’?
A. A statement of the company’s mission and vision.
B. The set of benefits or values a company promises to deliver to customers to satisfy their needs.
C. A detailed description of the company’s products and services.
D. A plan for how the company will distribute its products.
108. If a company only focuses on maximizing short-term sales without considering the long-term impact on customer relationships or society, it could be accused of:
A. Strategic marketing
B. Sustainable marketing
C. Socially responsible marketing
D. Marketing myopia
109. A door-to-door salesperson aggressively promotes a set of encyclopedias to homeowners, even if they don’t express interest. This is an example of which marketing management orientation?
A. Marketing concept
B. Selling concept
C. Production concept
D. Societal marketing concept
110. Which of the following is an example of a ‘want’ rather than a ‘need’?
A. Food
B. Shelter
C. A luxury car
D. Clothing
111. Which marketing management orientation holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do?
A. Selling concept
B. Product concept
C. Marketing concept
D. Production concept
112. A social media company personalizes its platform based on user preferences and behaviors. This is an example of:
A. Mass marketing
B. Product differentiation
C. Customer relationship management
D. Supply chain optimization
113. A bakery decides to donate a portion of its profits to a local charity. This aligns with which marketing concept?
A. Production concept
B. Selling concept
C. Societal marketing concept
D. Marketing concept
114. What is ‘customer equity’?
A. The percentage of customers who are satisfied with a product.
B. The combined discounted customer lifetime values of all the company’s current and potential customers.
C. The total sales revenue generated by a company in a given year.
D. The cost of acquiring and retaining customers.
115. A company that focuses on making continuous product improvements and assumes customers will favor products that offer the most quality, performance, and innovative features is adopting the:
A. Selling concept
B. Production concept
C. Marketing concept
D. Product concept
116. A company is developing a marketing campaign targeted at millennials. Which marketing activity are they performing?
A. Market segmentation
B. Product development
C. Sales promotion
D. Customer service
117. Which of the following is the most direct result of successful customer relationship management?
A. Increased production efficiency
B. Higher customer lifetime value and customer equity
C. Lower advertising costs
D. Faster product development cycles
118. A company that adopts a ‘production orientation’ typically focuses on:
A. Meeting customer needs and wants
B. Achieving high production efficiency and low costs
C. Creating innovative products
D. Building strong customer relationships
119. A car manufacturer focuses on producing cars that are affordable and readily available to a large segment of the population. Which marketing management orientation is this?
A. Marketing concept
B. Selling concept
C. Production concept
D. Product concept
120. Which of the following is NOT a core concept of marketing?
A. Needs, wants, and demands
B. Target markets and segmentation
C. Product, price, place, and promotion (4Ps)
D. Production and inventory management
121. Which of the following is an example of ‘behavioral’ segmentation?
A. Grouping customers by their income level
B. Grouping customers by their lifestyle
C. Grouping customers by their geographic location
D. Grouping customers based on their purchase frequency
122. A product’s ‘value proposition’ refers to:
A. The price of the product
B. The full positioning of a brand – the full mix of benefits upon which it is positioned
C. The cost of producing the product
D. The product’s packaging design
123. Which of the following is NOT a requirement for effective segmentation?
A. Measurable
B. Accessible
C. Substantial
D. Homogeneous
124. Which of the following is an example of micro-marketing at the local level?
A. National advertising campaigns
B. Customizing products for individual customers
C. Offering different products in different regions
D. Sending targeted emails based on past purchases
125. A company claims its product offers ‘the best quality at the lowest price’. What type of value proposition is this?
A. More for more
B. More for the same
C. The same for less
D. More for less
126. Which of the following is a potential risk associated with undifferentiated marketing?
A. Increased marketing costs
B. Difficulty in meeting the needs of all customers effectively
C. Dependence on a single market segment
D. Reduced brand awareness
127. A company decides to target only affluent customers with its luxury product line. Which targeting strategy is the company using?
A. Undifferentiated marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
128. What is ‘psychographic’ segmentation?
A. Dividing the market based on geographic location
B. Dividing the market based on age and income
C. Dividing the market based on lifestyle, values, and personality
D. Dividing the market based on purchase frequency
129. Which of the following is a key benefit of effective market segmentation?
A. It allows companies to ignore competitive pressures
B. It enables companies to better tailor their products and marketing messages to specific customer needs
C. It guarantees higher profit margins
D. It eliminates the need for marketing research
130. What is the purpose of a ‘perceptual map’ in marketing?
A. To track customer demographics
B. To visualize how customers perceive different brands or products in a market
C. To analyze sales data
D. To map out distribution channels
131. A company promotes its product as being ‘environmentally friendly’ to appeal to a specific customer segment. This is an example of:
A. Demographic segmentation
B. Geographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
132. Which of the following is NOT a typical variable used in segmenting consumer markets?
A. Geographic
B. Demographic
C. Psychographic
D. Technological
133. Which of the following is a potential drawback of using a differentiated marketing strategy?
A. Lower overall sales volume
B. Higher marketing research costs
C. Increased production costs due to the need for different product variations
D. Reduced ability to meet diverse customer needs
134. A company decides to offer a ‘premium’ version of its product with additional features and a higher price. Which positioning strategy is this?
A. More for less
B. More for more
C. The same for less
D. Less for much less
135. Which of the following best describes ‘differentiation’ in the context of marketing?
A. Offering the lowest prices in the market
B. Creating superior customer value by actually differentiating the company’s offering
C. Selling the same product to all customers
D. Ignoring the competition
136. Which of the following is a potential disadvantage of concentrated marketing?
A. High marketing costs
B. Dependence on a single segment
C. Difficulty in differentiating the product
D. Inability to meet customer needs effectively
137. A local bakery decides to focus its marketing efforts on residents within a 5-mile radius of its store. This is an example of:
A. Demographic segmentation
B. Geographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
138. What does ‘marketing myopia’ refer to?
A. Focusing solely on increasing sales
B. Focusing on the immediate needs of the company rather than the evolving needs of customers
C. Focusing on short-term profits at the expense of long-term customer relationships
D. Focusing on innovative product development
139. A company decides to target teenagers with a new line of trendy clothing. Which type of segmentation is being primarily used?
A. Geographic segmentation
B. Demographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
140. 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 price of a product
D. The distribution channels used to sell a product
141. What is the meaning of ‘competitive advantage’ in marketing?
A. Offering the lowest prices
B. Having a product that is identical to competitors’ products
C. An advantage over competitors gained by offering consumers greater value
D. Spending more on advertising than competitors
142. What is the primary goal of market segmentation?
A. To increase the overall size of the market
B. To identify and profile distinct groups of buyers who might require separate products or marketing mixes
C. To reduce marketing costs
D. To create a standardized product for all customers
143. Which of the following is NOT a factor to consider when evaluating different market segments?
A. Segment size and growth
B. Segment structural attractiveness
C. Company objectives and resources
D. Competitor’s advertising budget
144. A company that produces custom-made furniture targets individual customers with specific needs and preferences. This is an example of:
A. Mass marketing
B. Segment marketing
C. Micromarketing
D. Differentiated marketing
145. Which of the following is NOT a key component of a customer-driven marketing strategy?
A. Market segmentation
B. Differentiation
C. Mass marketing
D. Targeting
146. Which of the following describes undifferentiated marketing?
A. Targeting several market segments and designing separate offers for each
B. Focusing on a small market segment
C. Ignoring market segment differences and targeting the whole market with one offer
D. Customizing products and marketing programs to individual customers
147. What is the primary goal of ‘differentiation’ strategy?
A. To offer the lowest prices in the market
B. To create a unique and superior value for customers
C. To target all customer segments
D. To minimize marketing expenses
148. A company wants to create a ‘product positioning map’. What is the purpose of this map?
A. To show the physical location of retail stores
B. To visually represent how different products or brands are positioned in the minds of consumers
C. To track the sales performance of different products
D. To analyze the costs associated with producing different products
149. Which of the following is a characteristic of ‘niche’ marketing?
A. Targeting a very large market segment
B. Targeting a small, well-defined market segment
C. Offering a wide range of products
D. Focusing on cost leadership
150. Which of the following is a key factor in determining whether a market segment is ‘substantial’?
A. Whether the segment is easily accessible
B. Whether the segment is large enough to be profitable
C. Whether the segment is geographically concentrated
D. Whether the segment is similar to other segments
