Which of the following criteria for market segment is least likely to enable successful segmentation?
It should be measurable.
It should be of sufficient size.
It should be readily identifiable.
It should be completely undifferentiated.
It should be reachable in terms of communication.
The AMA’s definition of marketing reflects the view toward marketing activities as focused on __.
producing innovative products
increasing productivity
maintaining relationships with suppliers
creating and delivering offerings that have value
advertising and selling
From a customer’s perspective, what is defined as a ratio of the bundle of benefits a customer receives froman offering compared to the costs incurred by the customer in acquiring that bundle of benefits?
Exchange
Strategy
Sustainability
Value
Power
The Correct Answer and Explanation is :
Question 1: Which of the following criteria for market segment is least likely to enable successful segmentation?
Answer: It should be completely undifferentiated.
Explanation:
In marketing, successful segmentation requires distinguishing target groups based on their unique needs, behaviors, and characteristics. Segments should have differences that can be addressed with tailored strategies. The key criteria for successful market segmentation include:
- Measurability: The segment must be quantifiable, allowing the marketer to assess its size, purchasing power, and characteristics.
- Sufficiency in size: The segment should be large enough to justify the resources required to target it.
- Identifiability: The segment should be clearly distinguishable from other groups.
- Reachability: The marketer must be able to effectively communicate with and serve the segment.
The option “completely undifferentiated” suggests that there are no differences between potential customer groups. This contradicts the premise of market segmentation, which is about identifying and targeting groups that differ in their needs or behaviors. Undifferentiated markets do not benefit from tailored marketing strategies, making this option the least likely to enable successful segmentation.
Question 2: The AMA’s definition of marketing reflects the view toward marketing activities as focused on __.
Answer: creating and delivering offerings that have value
Explanation:
The American Marketing Association (AMA) defines marketing as the process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. This definition underscores that marketing is about delivering value to the customer, rather than just producing innovative products, increasing productivity, or focusing solely on advertising and selling.
The goal of marketing is not just the creation of a product, but ensuring it delivers value to customers in a way that meets their needs, solves problems, or enhances their lives. Thus, marketing activities are viewed as a way to build relationships and create long-term value.
Question 3: From a customer’s perspective, what is defined as a ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring that bundle of benefits?
Answer: Value
Explanation:
From a customer’s perspective, value is the perceived benefit derived from a product or service compared to the costs associated with acquiring it. The value equation is often summarized as:
[
\text{Value} = \frac{\text{Benefits}}{\text{Costs}}
]
Customers assess whether the benefits they receive from a product (such as quality, utility, satisfaction, etc.) are worth the price they have to pay. If the perceived value is high, they are more likely to make a purchase or remain loyal to the brand.
In contrast, exchange refers to the process by which customers give something of value (typically money) in return for a product or service, and strategy involves long-term planning and positioning decisions. Sustainability refers to environmental and social responsibility, and power refers to the ability to influence others. These concepts are related to different aspects of business, but the customer’s perspective of value is specifically tied to the perceived ratio of benefits versus costs.