1. c. Starbucks researches the culture of the countries in which it operates so that beverages appeal to local
tastes.
2. a. Psychographic segmentation divides consumers into different groups based on internal characteristics
like personality, values, and beliefs.
3. c. Demographic segmentation groups consumers by focusing on traits such as age, gender, income, etc.
4. c. Garnier has segmented the market based upon the benefits sought by the consumer.
5. d. Just like our in-text example of Mirror, Peloton speaks to the personality of people who want to work out
but can’t find the time to go to the gym.

1. c. Firmographics segments customers based on sets of characteristics such as industry, location, size, legal
structure, and performance.
2. a. Technographic segmentation is based on the various hardware and software used by B2B customers.
3. c. Value-based segmentation (sometimes called tiering or profitability segmentation) groups customers
according to the potential value they may bring to a business.
4. c. Firmographics segments customers based on sets of characteristics such as industry, location, size, legal
structure, and performance.
5. d. Needs-based segmentation is based on the premise that a marketer should focus their limited
resources on those customers that need the product and have the ability to purchase it.
5.3 Knowledge Check
1. b. Societies with a high degree of uncertainty avoidance compensate for this uncertainty by establishing
rules, policies, and procedures, whereas societies with low uncertainty avoidance more readily accept
change.
2. a. Infrastructure is the basic physical systems of a nation, such as roads, sewage treatment,
communication, water treatment, etc.
3. d. In countries with a high masculinity ranking, men are intended to lead; women are supposed to follow.
4. c. Economic factors consider things like inflation, per capita income, unemployment, etc.
5. b. Masculinity/femininity assesses “masculine” values (such as achievement, ambition, and acquisition)
versus “feminine” values like quality of life and service to others.

1. d. A market segment should be measurable—that is, you should be able to accurately determine the size
of the market segment in terms of sales value or number of customers so you can decide whether, how,
and to what extent you should focus your efforts on that segment.
2. c. A market segment should be substantial because it’s inefficient to waste resources to market the
product or service to a segment too small to justify a company’s time.
3. a. Accessibility refers to the ability to reach customers in the chosen segment at an affordable cost, given
the strengths and abilities of your marketing department.
4. d. Accessibility refers to the ability to reach customers in the chosen segment at an affordable cost, given
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the strengths and abilities of your marketing department.
5. c. A measurable market segment means that you can accurately determine the size of the segment in
terms of either sales volume or number of customers.

1. c. Undifferentiated marketing treats all buyers or potential buyers as a homogenous group and creates
one message for an entire audience.
2. a. A buyer persona is a semi-fictional representation of your ideal customer based on market research and
real data about your existing customers.
3. c. Concentrated marketing (or niche marketing) is a subset of a market on which a particular product or
service is focused. In Lefty’s case, it is focusing on left-handed people.
4. c. A differentiated marketing strategy focuses on the differences between segments and designs a specific
marketing mix for each segment.
5. d. A niche market (or concentrated marketing) channels all marketing actions toward one well-defined
segment of the market. In this case, the subset is people over the age of 55 who are in the market for an
active adult lifestyle.

1. c. A positioning statement defines where your offering fits in the marketplace and why it is better than
competitors’ offerings.
2. a. The STP process is an acronym for segmentation, targeting, and positioning.
3. b. Differentiated positioning is based on the differentiating characteristics or qualities that make your
product/service/brand better than those of your competitors.
4. c. Determinant attributes are those attributes or factors that a customer uses in making their purchase
decision.
5. d. A perceptual map is a visual diagram that shows how the average target market consumer perceives
your product versus those of your competitors.