MKT 300 ASU EXAM 1 QUESTIONS WITH COMPLETE
SOLUTIONS
What is a Market? -- Answer ✔✔ People or organizations with needs or wants and with
the ability and the willingness to buy
What is Segmenting? -- Answer ✔✔ Dividing the Market based on needs/benefits,
demographics, lifestyles, behavioral measures.
Markets have a variety of product needs and preferences. This results in Marketers
being able to better define customer needs.
What are the requirements for a group to be segmented? -- Answer ✔✔ They must be
homogeneous meaning the members must be similar in their attitudes, behaviors,
financials etc. They must also be heterogeneous from other groups. Must be substantial
in size. Must be identifiable and responsive.
What are the bases for segmentation? -- Answer ✔✔ The bases are demographics
which are age, gender etc. Psychographics which includes what makes us unique and our
values. Behavioral bases meaning that we should divide the market by the amount of
product bought or consumed. The best 20% of customers generate 80% of the profits.
And the bases of needs, The process of grouping customers into market segments
according to the benefits they seek from the products. An example would be toothpaste
Why are family life cycles important in Marketing? -- Answer ✔✔ Because middle aged
married people without kids may have unique needs that middle aged married people
with kids don't have.
What is Segmentation Targeting? -- Answer ✔✔ A group of people for which an
organization designs, implements, and maintains a marketing mix intended to meet the
needs of that group, resulting in mutually satisfying exchanges
, What are the 4 Targeting Strategies? -- Answer ✔✔ Undifferentiated, differentiated,
Niche, and Micro
What is undifferentiated targeting? -- Answer ✔✔ Marketing approach that views the
market as one big market with no individual segments and thus requires a single
marketing mix.
What is differentiated targeting? -- Answer ✔✔ Chooses two or more well defined
market segments and develops a distinct marketing mix for each. This can result in
higher costs
What is Niche Targeting? -- Answer ✔✔ Small but well defined segments for efforts.
Advantages would be concentration of resources and small companies can compete.
Disadvantages would be that is small and large companies do have the chance to take
over.
Red bull is a good example.
What is Micro Targeting? -- Answer ✔✔ Customized towards an individual, information
intensive. This 1 on 1 marketing creates loyalty. Internet has made this easier.
What’s an example of Cannibalization? -- Answer ✔✔ Making new Doritos may just
transfer money from a different flavor, not creating any new money.
What is Positioning? -- Answer ✔✔ The placement of a product or service offering in
the minds of a selected target market. Kiwi is an example of this because Kiwi is just a
brand name.
What is perceptual mapping? -- Answer ✔✔ A means of displaying or graphing, in two
or more dimensions, the location of products, brands or groups of products in
customers' minds
What is repositioning? -- Answer ✔✔ Changing consumers' perceptions of a brand in
relation to competing brands.
Example is ASU of New American University or Marlboro used to be targeted toward
Luxury High Society Females instead of Cowboys.
SOLUTIONS
What is a Market? -- Answer ✔✔ People or organizations with needs or wants and with
the ability and the willingness to buy
What is Segmenting? -- Answer ✔✔ Dividing the Market based on needs/benefits,
demographics, lifestyles, behavioral measures.
Markets have a variety of product needs and preferences. This results in Marketers
being able to better define customer needs.
What are the requirements for a group to be segmented? -- Answer ✔✔ They must be
homogeneous meaning the members must be similar in their attitudes, behaviors,
financials etc. They must also be heterogeneous from other groups. Must be substantial
in size. Must be identifiable and responsive.
What are the bases for segmentation? -- Answer ✔✔ The bases are demographics
which are age, gender etc. Psychographics which includes what makes us unique and our
values. Behavioral bases meaning that we should divide the market by the amount of
product bought or consumed. The best 20% of customers generate 80% of the profits.
And the bases of needs, The process of grouping customers into market segments
according to the benefits they seek from the products. An example would be toothpaste
Why are family life cycles important in Marketing? -- Answer ✔✔ Because middle aged
married people without kids may have unique needs that middle aged married people
with kids don't have.
What is Segmentation Targeting? -- Answer ✔✔ A group of people for which an
organization designs, implements, and maintains a marketing mix intended to meet the
needs of that group, resulting in mutually satisfying exchanges
, What are the 4 Targeting Strategies? -- Answer ✔✔ Undifferentiated, differentiated,
Niche, and Micro
What is undifferentiated targeting? -- Answer ✔✔ Marketing approach that views the
market as one big market with no individual segments and thus requires a single
marketing mix.
What is differentiated targeting? -- Answer ✔✔ Chooses two or more well defined
market segments and develops a distinct marketing mix for each. This can result in
higher costs
What is Niche Targeting? -- Answer ✔✔ Small but well defined segments for efforts.
Advantages would be concentration of resources and small companies can compete.
Disadvantages would be that is small and large companies do have the chance to take
over.
Red bull is a good example.
What is Micro Targeting? -- Answer ✔✔ Customized towards an individual, information
intensive. This 1 on 1 marketing creates loyalty. Internet has made this easier.
What’s an example of Cannibalization? -- Answer ✔✔ Making new Doritos may just
transfer money from a different flavor, not creating any new money.
What is Positioning? -- Answer ✔✔ The placement of a product or service offering in
the minds of a selected target market. Kiwi is an example of this because Kiwi is just a
brand name.
What is perceptual mapping? -- Answer ✔✔ A means of displaying or graphing, in two
or more dimensions, the location of products, brands or groups of products in
customers' minds
What is repositioning? -- Answer ✔✔ Changing consumers' perceptions of a brand in
relation to competing brands.
Example is ASU of New American University or Marlboro used to be targeted toward
Luxury High Society Females instead of Cowboys.
