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Segmentation-Targeting-Positioning (STP)
Segmentation vs. Aggregation Basics

Segmentation-Targeting-Positioning (STP)

Segmentation vs. Aggregation Basics

Quiz Crest

July 12, 2025

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Market segmentation differs from market aggregation primarily because segmentation ______.

Focuses only on demographic factors

Combines many small markets into a single mass

Ignores customer differences

Separates a heterogeneous market into homogeneous groups

Segmentation intentionally divides the overall market into clusters that share similar needs and behaviors. Aggregation does the opposite by lumping everyone together under one broad offer.

One major advantage of aggregation is ______.

Reduced price elasticity within segments

Precise fit to niche needs

Greater opportunity for premium pricing

Economies of scale in marketing programs

Treating the entire market alike lets firms standardize production and communication, lowering per‑unit cost. The trade‑off is lower relevance for diverse groups.

Segmenting a market is most justified when customer groups display ______.

Geographic proximity only

Perfectly elastic demand

Identical purchase behaviors

Meaningful differences in needs and responses

Segmentation must reveal distinctions that actually influence buying or media response; otherwise it adds cost without benefit. Superficial differences don’t warrant separate treatment.

Which of the following is NOT part of the classic 'Measurable, Accessible, Substantial, Actionable' test?

Accessibility

Actionability

Substantiality

Simplicity

Simplicity is nice to have but not a formal criterion in the MASA framework. The four criteria ensure segments can be identified, reached, are profitable in size, and can be effectively served.

Aggregation strategies are most effective when consumer preferences are ______.

Convergent and undifferentiated

Driven by psychographics

Diverse and conflicting

Shifting rapidly

If everyone wants essentially the same benefits, tailoring is wasteful and mass marketing works. High divergence favours segmentation or customization.

A toothpaste brand introducing separate 'sensitive' and 'whitening' variants is practicing ______.

Differentiated targeting after segmentation

Mass customization

Pure aggregation

Undifferentiated marketing

The company identified distinct need‑based segments and offers different formulas to each. That is the hallmark of differentiated strategy, not aggregation.

Over‑segmentation can backfire because it ______.

Eliminates the need for positioning

Erodes economies of scale and confuses customers

Guarantees maximum relevance

Makes distribution easier

Too many micro‑segments balloon complexity and cost while diluting brand clarity. Marketers must balance relevance with operational efficiency.

Which marketing era popularized market aggregation as 'one product fits all'?

Production orientation (early 1900s)

Digital personalization era

Experience economy

Relationship marketing era

During the production era, demand outstripped supply, so firms like Ford offered few variants to maximize output. Segmentation emerged later when markets matured and competition intensified.