Evaluating and Selecting the Market Segments - Quiz

1. “Differentiable” segments are those that:

Are too small to serve

Are easy to reach

Respond differently to marketing mix elements

Are difficult to identify

2. When a segment is highly price sensitive, firms should:

All of the above

Compete on cost

Prepare for lower margins

Consider value-added differentiation

3. Which of the following increases segment attractiveness?

Low supplier power

High barriers to entry

Low threat of substitutes

All of the above

4. When markets are dynamic, segment attractiveness should be:

Evaluated once only

Ignored

Regularly reassessed

Based solely on intuition

5. The degree to which a segment is easy to measure and identify is called:

Measurability

Actionability

Accessibility

Substantiality

6. The risk of focusing on a single segment includes:

All of the above

Dependency on one group

Exposure to market downturns

Missing opportunities in other segments

7. Firms may deselect segments if:

All of the above

Regulatory risk is too high

Customers are hard to reach

Segment profitability is too low

8. A market segment with high growth but low compatibility with company objectives is:

Best for undifferentiated marketing

Not ideal to target

Always attractive

Always profitable

9. If a company can uniquely satisfy a segment’s needs, this segment is:

Structurally unattractive

Ignored

To be avoided

A good candidate for targeting

10. When segment attractiveness is evaluated, company resources must be considered because:

Competition is irrelevant

Price is the only concern

All segments are equally profitable

Not all segments fit a firm’s strengths

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