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# Verbal Diagnostic Test No : 7 – RC Q No:1, 2 and 3

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Verbal Diagnostic Test No : 7 – RC Q No:1, 2 and 3 [#permalink]

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21 Mar 2014, 04:37
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Questions 1 to 3 are based on the following passage

It can be argued that much consumer dissatisfaction with marketing strategies arises from an inability to aim advertising at only the likely buyers of a given product.

There are three groups of consumers who are affected by the marketing process. First, there is the market segment—people who need the commodity in question. Second, there is the program target—people in the market segment with the “best fit” characteristics for a specific product. Lots of people may need trousers, but only a few qualify as likely buyers of very expensive designer trousers. Finally, there are the program audience―all people who are actually exposed to the marketing program without regard to whether they need or want the product.

These three groups are rarely identical. An exception occurs occasionally in cases where customers for a particular industrial product may be few and easily identifiable. Such customers, all sharing a particular need, are likely to form a meaningful target, for example, all companies with a particular application of the product in question, such as high-speed fillers of bottles at breweries. In such circumstances, direct selling (marketing that reaches only the program target) is likely to be economically justified, and highly specialized trade media exist to expose members of the program target—and only members of the program target—to the marketing program.

Most consumer-goods markets are significantly different. Typically, there are many rather than few potential customers. Each represents a relatively small percentage of potential sales. Rarely do members of a particular market segment group themselves neatly into a meaningful program target. There are substantial differences among consumers with similar demographic characteristics. Even with all the past decade’s advances in information technology, direct selling of consumer goods is rare and mass marketing—a marketing approach that aims at a wide audience—remains the only economically feasible mode. Unfortunately, there are few media that allow the marketer to direct a marketing program exclusively to the program target. Inevitably, people get exposed to a great deal of marketing for products in which they have no interest and so they become annoyed. (Source gmatclub)

1. The passage suggests which of the following about highly specialized trade media?

(A) They should be used only when direct selling is not economically feasible.
(B) They can be used to exclude from the program audience people who are not part of the program target.
(C) They are used only for very expensive products.
(D) They are rarely used in the implementation of marketing programs for industrial products.
(E) They are used only when direct selling has not reached the appropriate market segment.

[Reveal] Spoiler:
OA: B
OE:
A. They should be used only when the program audience is inseparable from program target.
B. Correct choice ; This allows focused marketing
C. Irrelevant
D. Such special media are useful for only industrial products
E. Where direct selling cannot reach a particular target, special media can reach still less.

2. Which of the following can be inferred from the passage about direct selling?

(A) It is used in the marketing of most industrial products.
(B) It is often used in cases where there is a large program target.
(C) It is not economically feasible for most marketing programs.
(D) It is used only for products for which there are many potential customers.
(E) It is less successful at directing a marketing program to the target audience than are other marketing approaches.

[Reveal] Spoiler:
OA: C
OE:

A. Not most industrial products; They are usable for even consumer products like Amway
B. When large program target is there, mass marketing is the best strategy
C. Direct selling is pretty slow and costs high -------Correct choice
D. When many potential customers are there, one must resort to mass marketing
E. Because of scarcity of time and resources, it cannot cover wide radar.

3. The passage implies that which of the following is true about the marketing of industrial products like those discussed in the third paragraph?

(A) The market segment and program target are the same.
(B) Mass marketing is the only feasible way of advertising such products.
(C) The marketing program cannot be directed specifically to the program target.
(D) More customers would be needed to justify the expense of direct selling.
(E) The program audience would necessarily be made up of potential customers, regardless of the marketing approach that was used.

[Reveal] Spoiler:
OA: A
OE:
A; Correct answer; Industrial products have limited customer base; It will be easier to approach them personally
B. Mass marketing includes plenty of non interested people.
C. Because of lack of specialized trade media, it is not possible to direct the program to a specific audience
D. Direct selling requires fewer customers rather than more customers.
E. In a program audience, there may be more uninterested people than interested people.

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Re: Verbal Diagnostic Test No : 7 – RC Q No:1, 2 and 3 [#permalink]

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24 Dec 2016, 00:34
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.

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Re: Verbal Diagnostic Test No : 7 – RC Q No:1, 2 and 3   [#permalink] 24 Dec 2016, 00:34
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