Lesson 3


Question 1

In marketing a target market is:

  • A The portion of the market you want to aim at to extract the most profit and exploit
  • B The group of people who you feel will best benefit from your product or will be the most interested in your product
  • C The group of people who you want to benefit from your product, regardless of their preferences
  • D The group of people who are the most gullible and easily swayed by advertising

Question 2

Segmenting your market means _________________.

  • A Bringing your market together in one place
  • B Dividing up your market into groups
  • C Finding an ad that will resonate with every person who uses your product
  • D Discarding those who you know will not use your product

Question 3

Which of the following are ways to segment the market?

  • A Psychographics
  • B Geographics
  • C Demographics
  • D All the above

Question 4

The VALS method of categorization (http://wwwstrategicbusinessinsightscom/vals/ustypesshtml) divides customers based on groups such as innovators, experiencers, believers, and survivors This is an example of ______________ segmentation.

  • A Psychographic
  • B Biological
  • C Demographic
  • D Ethical

Question 5

Pricing your product is relative and no matter what you do it usually amounts to guesswork.

  • A True
  • B False
  • C
  • D

Question 6

Pricing your product lower than your competitor can result in a “price war” Does anyone benefit from a price war?

  • A Yes, the winner benefits
  • B No, no one ever benefits from war
  • C Yes, the consumer benefits
  • D No, because rarely do customers respond to price changes

Question 7

Why would anyone price their product above their competitor(s)?

  • A You might be desperate and want to squeeze as much profit from your customers as possible
  • B You might not care about profit
  • C You might think that if you take the lead on higher pricing, others will follow
  • D Your product might be of higher quality and you want to reflect this

Question 8

A mark of good marketing is to have a one-sentence ‘value proposition’ that correctly identifies your company’s competitive advantage.

  • A True
  • B False
  • C
  • D

Question 9

Product messaging can never be too complicated because customers always want as much information as possible.

  • A True
  • B False
  • C
  • D

Question 10

What is one disadvantage of advertising?

  • A It can be expensive
  • B It can be impersonal
  • C It can be detrimental to the environment
  • D Both B & C


You’ve answered ? of 10 questions