MRA Market Segmentation & Targeting 2 — Questions and Answers
Question 1: The STP framework in marketing stands for:
- Strategy, Tactics, and Performance
- Segmentation, Targeting, and Positioning (Correct answer)
- Survey, Testing, and Profiling
- Sampling, Trend analysis, and Projection
Correct answer: Segmentation, Targeting, and Positioning
STP stands for Segmentation, Targeting, and Positioning — a three-stage process for identifying and reaching the most valuable consumer groups.
Question 2: Which targeting strategy involves serving the entire market with a single standardized offer?
- Concentrated marketing
- Differentiated marketing
- Undifferentiated (mass) marketing (Correct answer)
- Micromarketing
Correct answer: Undifferentiated (mass) marketing
Undifferentiated or mass marketing ignores segment differences and targets the whole market with one offer, aiming for broad appeal.
Question 3: What is differentiated targeting?
- Targeting one narrow segment with a highly specialized offering
- Creating separate offers tailored to two or more distinct market segments (Correct answer)
- Offering a single product to the entire market
- Personalizing offers down to the individual consumer level
Correct answer: Creating separate offers tailored to two or more distinct market segments
Differentiated targeting involves designing separate marketing programs for multiple segments, increasing total sales by better meeting each group's specific needs.
Question 4: Concentrated (niche) marketing is most appropriate when:
- A company has abundant resources and wants to maximize total market reach
- A company targets multiple large segments simultaneously
- A company focuses on one specific segment to build a strong position within it (Correct answer)
- A company uses the same marketing mix for all consumer groups
Correct answer: A company focuses on one specific segment to build a strong position within it
Concentrated marketing involves focusing all resources on a single, well-defined niche, allowing smaller companies to compete effectively by specializing deeply.
Question 5: Which factor is most important when evaluating the attractiveness of a market segment?
- The number of competitors currently serving the segment
- Segment size, growth rate, structural attractiveness, and company fit with objectives and resources (Correct answer)
- The geographic location of the segment's consumers
- The age distribution of consumers within the segment
Correct answer: Segment size, growth rate, structural attractiveness, and company fit with objectives and resources
Segment attractiveness is evaluated using size and growth potential, structural factors (competition, substitutes), and alignment with the company's objectives and capabilities.
Question 6: What is micromarketing (individual marketing)?
- Marketing to very small geographic areas such as zip codes
- Tailoring products and marketing programs to the needs of specific individuals or local customer groups (Correct answer)
- Launching low-budget marketing campaigns for startup companies
- Analyzing micro-trends within broad consumer demographics
Correct answer: Tailoring products and marketing programs to the needs of specific individuals or local customer groups
Micromarketing tailors products and marketing to the specific needs of individual customers or very small groups, representing the most precise form of targeted marketing.
Question 7: In B2B market segmentation, 'firmographic' variables include:
- Individual buyer personality traits and lifestyle preferences
- Consumer purchase frequency and brand loyalty scores
- Company size, industry sector, location, and annual revenue (Correct answer)
- Geographic climate zones and regional population density
Correct answer: Company size, industry sector, location, and annual revenue
Firmographic variables are the B2B equivalent of demographics, describing organizational characteristics such as company size, industry, revenue, and geographic location.
MRA Market Segmentation & Targeting 2
The STP framework in marketing stands for: