Market segmentation and targeting strategies MCQs With Answer

Introduction

Market segmentation and targeting strategies are essential in pharmaceutical marketing for identifying patient groups, healthcare providers, and payers with similar needs. B.Pharm students should understand demographic, geographic, psychographic, and behavioral segmentation, plus benefit and usage-based approaches. Learning targeting options—undifferentiated, differentiated, concentrated, and micromarketing—helps tailor product positioning, messaging, and channel selection to improve adherence, safety, and commercial performance. Practical skills include analyzing segment size, growth, accessibility, and profitability, using research and data-driven tools. Ethical and regulatory constraints in healthcare add complexity to targeting decisions. Case studies and real-world examples help apply segmentation to drug lifecycle management and market access. Now let’s test your knowledge with 30 MCQs on this topic.

Q1. What is the primary goal of market segmentation in the pharmaceutical industry?

• To reduce manufacturing costs
• To divide the market into homogeneous groups for targeted strategies
• To standardize promotional materials across all customers
• To increase the number of SKUs regardless of demand

Correct Answer: To divide the market into homogeneous groups for targeted strategies

Q2. Which one is NOT a common base for market segmentation?

• Demographic
• Geographic
• Psychographic
• Manufacturing-process segmentation

Correct Answer: Manufacturing-process segmentation

Q3. In pharmaceutical segmentation, which variable best describes patient beliefs and lifestyle?

• Demographic
• Behavioral
• Psychographic
• Geographic

Correct Answer: Psychographic

Q4. Which targeting strategy aims at the whole market with a single offer?

• Differentiated targeting
• Concentrated targeting
• Undifferentiated targeting
• Micromarketing

Correct Answer: Undifferentiated targeting

Q5. Which targeting approach is most appropriate for a niche orphan drug with a very specific patient population?

• Undifferentiated targeting
• Differentiated targeting
• Concentrated targeting
• Mass marketing

Correct Answer: Concentrated targeting

Q6. What does STP stand for in marketing relevant to segmentation?

• Segmentation, Targeting, Positioning
• Strategy, Tactics, Pricing
• Segmentation, Testing, Promotion
• Structure, Targeting, Packaging

Correct Answer: Segmentation, Targeting, Positioning

Q7. Which of the following is a key criterion for a good market segment?

• Ambiguity
• Measurability
• Indistinguishability
• Inaccessibility

Correct Answer: Measurability

Q8. Benefit segmentation groups customers primarily based on:

• Geographic proximity
• Specific therapeutic or value expectations from a product
• Manufacturing cost preferences
• Regulatory affiliations

Correct Answer: Specific therapeutic or value expectations from a product

Q9. Which targeting strategy involves tailoring offerings to individual customers or very small segments?

• Undifferentiated marketing
• Differentiated marketing
• Micromarketing
• Mass customization

Correct Answer: Micromarketing

Q10. For pharmaceutical companies, which segment evaluation factor assesses whether the segment can be reached and served effectively?

• Substantiality
• Accessibility
• Stability
• Scarcity

Correct Answer: Accessibility

Q11. Which is an example of behavioral segmentation in pharmacy markets?

• Patients’ age groups
• Frequency of prescription refill
• Regional climate
• Company ownership

Correct Answer: Frequency of prescription refill

Q12. When targeting healthcare professionals (HCPs), which segmentation variable is often used?

• HCP prescribing patterns
• Weather patterns in clinic locations
• Color preference for packaging
• Manufacturing lead times

Correct Answer: HCP prescribing patterns

Q13. Which targeting approach is suitable when a company wants multiple customized offers for different segments?

• Undifferentiated targeting
• Differentiated targeting
• Concentrated targeting
• No targeting

Correct Answer: Differentiated targeting

Q14. Which analytic technique is commonly used to identify natural segments from survey or prescription data?

• Cluster analysis
• Simple random sampling
• Linear regression ignoring groups
• Chi-square for single variable only

Correct Answer: Cluster analysis

Q15. In pharma marketing, segment “profitability” typically considers:

• Only patient age
• Revenue potential and marginal costs to serve
• Number of competitors in the lab
• Color of the product label

Correct Answer: Revenue potential and marginal costs to serve

Q16. Which of the following is a psychographic variable useful for targeting chronic disease patients?

• Income band
• Attitudes toward medication adherence
• Postal code
• Package size

Correct Answer: Attitudes toward medication adherence

Q17. Regulatory and ethical constraints most directly affect which targeting tactic?

• Price setting for generics
• Direct-to-consumer promotion of prescription-only drugs
• Internal manufacturing scheduling
• Inventory management

Correct Answer: Direct-to-consumer promotion of prescription-only drugs

Q18. Which data source is primary research in segmentation studies?

• Sales transaction databases
• Published industry reports
• Patient surveys conducted by the company
• Competitor annual reports

Correct Answer: Patient surveys conducted by the company

Q19. Positioning in STP refers to:

• How a product is manufactured
• How a product is perceived in the minds of target customers compared to competitors
• Where distribution centers are located
• The legal status of a drug

Correct Answer: How a product is perceived in the minds of target customers compared to competitors

Q20. A company deciding to focus on hospitals and specialty clinics for an oncology drug is performing:

• Geographic segmentation
• Channel and customer-type targeting
• Product rationalization
• Price skimming

Correct Answer: Channel and customer-type targeting

Q21. Which KPI directly measures success of a targeted HCP promotional campaign?

• Ad recall among general public
• Incremental prescriptions written by targeted HCPs
• Number of factory audits completed
• Employee turnover rate

Correct Answer: Incremental prescriptions written by targeted HCPs

Q22. For an over-the-counter (OTC) analgesic, which segmentation base may be most useful?

• Prescriber specialty
• Patient self-medication behavior and pain frequency
• Hospital formularies
• Regulatory approval pathway

Correct Answer: Patient self-medication behavior and pain frequency

Q23. Market access segmentation often includes which stakeholder group?

• Payors and reimbursement decision-makers
• Chemical suppliers only
• Packaging designers exclusively
• Manufacturing equipment vendors

Correct Answer: Payors and reimbursement decision-makers

Q24. Which is an example of behavioral segmentation relevant to adherence programs?

• Patients’ preferred pharmacy location
• Degree of prior adherence (high, medium, low)
• Country of origin of producer
• Color of pill

Correct Answer: Degree of prior adherence (high, medium, low)

Q25. Which targeting strategy could raise privacy concerns when using patient-level data?

• Mass-market blanket advertising
• Micromarketing and hyper-personalized messaging
• Generic packaging design
• Traditional trade shows only for HCPs

Correct Answer: Micromarketing and hyper-personalized messaging

Q26. In repositioning a legacy drug, segmentation can help by:

• Identifying new or underserved patient subgroups with unmet needs
• Increasing active pharmaceutical ingredient potency
• Reducing regulatory requirements
• Changing manufacturing equipment

Correct Answer: Identifying new or underserved patient subgroups with unmet needs

Q27. Which method is useful for estimating segment size and growth from prescriptions and sales data?

• Descriptive analytics and time-series analysis
• Qualitative interviews only
• Random guessing
• Colorimetric testing

Correct Answer: Descriptive analytics and time-series analysis

Q28. For a specialty biologic with complex administration, the best initial target segment is likely:

• Consumers shopping in supermarkets
• Specialist physicians and tertiary care centers
• All primary care clinics indiscriminately
• Retail pharmacies without cold chain

Correct Answer: Specialist physicians and tertiary care centers

Q29. Which statement best describes differentiated targeting benefit?

• It ignores segment differences to lower costs
• It serves several segments with different offers to increase relevance
• It always guarantees the highest profit regardless of costs
• It targets only one very small niche

Correct Answer: It serves several segments with different offers to increase relevance

Q30. When prioritizing segments, which combination is most strategic?

• Small size, no growth, hard to reach
• Large size, high growth, accessible and profitable
• Large size, declining demand, inaccessible
• Irrelevant to company capabilities

Correct Answer: Large size, high growth, accessible and profitable

G S Sachin

I am a Registered Pharmacist under the Pharmacy Act, 1948, and the founder of PharmacyFreak.com. I hold a Bachelor of Pharmacy degree from Rungta College of Pharmaceutical Science and Research. With a strong academic foundation and practical knowledge, I am committed to providing accurate, easy-to-understand content to support pharmacy students and professionals. My aim is to make complex pharmaceutical concepts accessible and useful for real-world application.

Mail- Sachin@pharmacyfreak.com