CPM Marketing Strategy 3 — Questions and Answers
Question 1: A company uses demographic, psychographic, and behavioral data to divide its market into distinct groups. This process is called:
- Market targeting
- Market segmentation (Correct answer)
- Market positioning
- Market differentiation
Correct answer: Market segmentation
Market segmentation is the process of dividing a market into distinct subsets of consumers with common needs or behaviors.
Question 2: Which of the following BEST describes a 'value proposition'?
- The total cost a customer pays for a product
- The unique bundle of benefits that differentiates a brand from competitors (Correct answer)
- The process of aligning price with perceived product quality
- A company's annual revenue target
Correct answer: The unique bundle of benefits that differentiates a brand from competitors
A value proposition communicates the distinctive benefits a brand delivers that competitors do not.
Question 3: In a push marketing strategy, the primary communication target is:
- End consumers through mass advertising
- Channel intermediaries such as wholesalers and retailers (Correct answer)
- Social media influencers
- Government regulators
Correct answer: Channel intermediaries such as wholesalers and retailers
Push strategies direct promotional efforts toward channel members to get them to stock and sell the product.
Question 4: A company that sells insurance services recognizes that its 'product' cannot be stored or inventoried. Which service characteristic does this reflect?
- Intangibility
- Heterogeneity
- Perishability (Correct answer)
- Inseparability
Correct answer: Perishability
Perishability means services cannot be stored, saved, returned, or resold after the moment of production.
Question 5: Which environmental scanning framework analyzes Political, Economic, Social, Technological, Environmental, and Legal forces?
- SWOT
- PEST
- PESTEL (Correct answer)
- Porter's Five Forces
Correct answer: PESTEL
PESTEL is a macro-environment framework examining six categories of external forces affecting a business.
Question 6: A marketer creates personas like 'Budget-Conscious Brian' to better understand target customers. These personas are based on:
- Competitive intelligence reports
- Aggregated customer research data representing key audience segments (Correct answer)
- Annual sales forecasts
- Investor relations materials
Correct answer: Aggregated customer research data representing key audience segments
Buyer personas are semi-fictional representations of ideal customers built from market research and real customer data.
Question 7: The concept of the 'long tail' in marketing strategy refers to:
- Extended product warranty periods
- Profitability from selling large volumes of niche items rather than only hit products (Correct answer)
- Delayed adoption by laggard consumers
- Long-form content marketing campaigns
Correct answer: Profitability from selling large volumes of niche items rather than only hit products
The long tail concept argues that aggregated sales of many niche products can rival or exceed blockbuster sales.
CPM Marketing Strategy 3
A company uses demographic, psychographic, and behavioral data to divide its market into distinct groups.
This process is called: