Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition

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CHAPTER 5

MARKETING CONCEPTS: TESTING YOUR KNOWLEDGE

1. Is segmenting the market more important than correctly using the marketing mix?









2. Using the four bases of segmentation, how would you describe yourself to a
marketer? What segmentation variable or variables do you think would be the most
likely to be used by marketers to try and target you?











3. List the criteria used for determining whether a segment may be a good candidate
for targeting.










4. Explain undifferentiated, differentiated, concentrated and customised marketing
strategies, giving a practical example for each. What is mass customisation?









Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition

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5. What is product positioning? Describe, using practical examples, the three
approaches that marketers use to create product positions.









6. What is customer relationship management? How do companies practise CRM?








Additional Questions
1. Segmentation p154-162: Look around at your classmates and determine how you might
segment the class. What products might be appropriate for the different segments?






2. Customer lifetime value p172: Identify products/brands that you remember using when
you were a child.

(a) Do you still buy/use them? Will you continue to buy/use them when you graduate?
(Hint: Food products).
(b) To further illustrate the power of lifetime value, estimate (based on current usage)
how many boxes of cereal you will consume throughout your lifetime.


Another useful example may be banks. Full-time students may have limited income at
this life stage, but students could consider the purchases they intend to make following
graduation and upon obtaining full-time employment (e.g. a new car, house, boat,
overseas holiday). Although they may not be their banks most valuable customers now,
do students believe that these institutions should work harder to develop relationships
with them because of their future worth as customers?