Question

The combination of demographics, lifestyles, and geographic categories leads to ______________.

	A.	geodemographic segmentation
	B.	benefit segmentation
	C.	usage-rate segmentation
	D.	psychographic segmentation

A concentrated targeting strategy differs from an undifferentiated targeting strategy in that a concentrated targeting strategy:

	A.	results in cannibalization of products.
	B.	involves the selection of a market niche to target the marketing efforts of a firm.
	C.	views the market as one big market with no individual segments.
	D.	reduces the production and marketing costs of a firm.

QUESTION 47

1. Apple saw a huge drop in the sales of its iPhone 6s when they launched the iPhone 7. This situation exemplifies _________________, that is, when a new product cuts into the sales of existing products within the same company.

   	A.	cannibalization
   	B.	repositioning
   	C.	competition
   	D.	positioning

Answer 1

The combination of demographics, lifestyles, and geographic categories leads to _____________.

A. geodemographic segmentation

Geodemographic segmentation means statistical classification of people according to their geographic location. In this analysis is based on the assumption that people with same geographic location have similar characteristics and lifestyle, even if they are widely separated. It is a marketing segmentation technique where we assume that there must be less differences within the group.

A concentrated targeting strategy differs from an undifferentiated targeting strategy in that a concentrated targeting strategy:

B. involves the selection of a market niche to target the marketing efforts of a firm.
The reason behind is that a Concentrated targeting strategy is designed for a small group of people. Whereas, undifferentiated targeting strategy is designed for a mass to spread a common message to all. For example, In Concentrated targeting strategy, restaurant owner may target to residents of his locality only whereas in undifferentiated Strategy restaurant owner will spread a message to mass of 15% discount on food ordered on Wednesday and Friday.

QUESTION 47

1. Apple saw a huge drop in the sales of its iPhone 6s when they launched the iPhone 7. This situation exemplifies _________________, that is, when a new product cuts into the sales of existing products within the same company.

   a. cannibalization

Cannibalization means when a new product is introduced by the same manufacturer of the existing product results in the reduction of sales volume and revenue of the existing product. In the above case there is a reduction in sales of iPhone6 when the company launched its new product iPhone7.