(Correct Answers are shown after each question)

1. When a brand team defines the target market of consumers for their product, they may also identify 

many smaller subsets of consumers within their broad market.

a. True

b. False

a. True

2. In the world of advertising, markets are positioned, but products are segmented. a. True

b. False

b. False

3. STP marketing includes three factors—identifying, positioning, and informing.

a. True

b. False

b. False

4. If General Mills decides to use the STP framework, it can divide its resources to reach a number of 

separate and distinct market segments.

a. True

b. False

a. True

5. Positioning means to cut your market into pieces and focus on the piece or pieces that make the most 

sense. a. True

b. False

b. False

6. Companies can do well by spending advertising dollars to target nonusers over other user groups, 

since they offer the highest level of opportunity.

a. True

b. False

b. False

7. Spending advertising dollars to get "switchers" to buy your brand may seem like a good idea, but it 

often results in

only one-time or random purchases. a. True

b. False

a. True

8. Demographic segmentation is used in selecting target segments by focusing on consumers' 

descriptors such as their

values, beliefs, philosophies, and opinions. a. True

b. False

b. False

9. Demographics are rarely used to describe or profile target segments that have already been identified 

as prospects by other variables.

a. True

b. False

b. False

10. Psychographic segmentation focuses on the inner mindset of consumers rather than outer aspects 

of their lives such as activities, interests, and lifestyles.

a. True

b. False

b. False

11. Today, advertising tends to be used almost exclusively by businesses targeting consumer markets, 

and only in very rare circumstances by businesses trying to sell products to other businesses.

a. True

b. False

b. False

12. If an advertiser sees a large potential segment being served by a competitor with a big budget, it 

might consider identifying and targeting smaller groups within that large segment.

a. True

b. False

a. True

13. One drawback of niche marketing is that a company often has to reduce the price of its product due 

to the smaller volume of sales it can expect.

a. True

b. False

b. False

14. Any meaningful positioning strategy needs to include several broad elements in its message—

including attention

getting, variety, flexibility, and complexity. a. True

b. False

b. False

15. A gourmet ice cream franchise advertises itself as offering thick, creamy, gooey treats, calling them 

delectable, desirous, and decadent—the richest and sweetest desserts found anywhere in America. The 

owner of the local shop buys ads focusing on extended hours and friendly service. This is an example of 

internal consistency.

a. True

b. False

b. False

16. Haley Inc. is a company that manufactures products for babies and toddlers. It's advertising 

campaigns have carried various slogans over the years, but they have all revolved around the same 

thematic core. This is an example of consistent positioning approach.

a. True

b. False

a. True

17. When formulating a positioning strategy, a multiple-benefits approach is strongly suggested to 

satisfy many markets

at the same time, because it alerts consumers to a wide array of diverse functions and positive 

consequences related to the product.

a. True

b. False

b. False

18. The positioning model from Anne Bahr constitutes the overlapping of the proposition for the brand 

and persuasion tools.

a. True

b. False

b. False

19. Bayt Café is launching a new advertising campaign portraying its restaurant as having very fast 

service and a cheerful staff to target a younger crowd. The campaign alone will be enough to gain the 

loyalty of the younger segment.

a. True

b. False

b. False