Segmenting and Positioning - Marketing Questions for IBPS SO and SBI SO Exams

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Directions: Study the following questions carefully and answer the questions given below.

Important for :
» Explain it
In a Heterogeneous market people generally need products with attributes that are significantly different from each other, which makes it difficult to substitute one product for another and hence the Total Market approach will fail here.

Option 'C' hence is the most appropriate choice here.
» Explain it
A business through Concentration targetting or Niche marketing, which targets a niche of particular enthusiasts, aims to survive among the competition from numerous super companies. 
Although the size of the market is small, adopting a niche strategy can be profitable because of the following reasons:
1. There is little or no competition.
2. The niche marketers end up knowing the target customers so well that they meet their needs better than other firms that are casually selling to such niche segments. As a result, the niche marketers achieve high margins because of the added value to the goods and services.

Option 'A' hence is the most appropriate choice here.

Toyota Motors, specifically keeping the Indian roads into considertation, is planning to launch a new luxury car.  Which one of the following would be a likely variable for segmenting the market for this new model?
» Explain it
It can be clearly inferrred from the statement that Toyota car is targetting the Indian market while keeping the condition/design of Indian roads into consideration. 

Option 'B' hence is the most suitable choice here.
McDonald’s uses a segmentation strategy for its sandwiches based on characteristics such as age, gender and income. It is using which group of segmentation variables?
» Explain it
Segmentation generally divides a population based on variables. Thus demographic segmentation too has its own variables such as Age, gender, family size, income, occupation, religion, race and nationality.
Demographic segmentation is one of the most commonly used forms of segmentation as it is clearly identifiable. The variables used for Demographic segmentation help divide a large population into specific customer groups.

Option 'A' hence is the most appropriate choice here.