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It can be argued that much consumer dissatisfaction with marketing strategies arises from an inability to aim advertising at only...

GMAT Reading Comprehension : (RC) Questions

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Reading Comprehension
Business
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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 is 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.

Ques. 1/8

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.
Solution

1. Passage Analysis:

Progressive Passage Analysis

Text from Passage Analysis
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. What it says: The main problem with marketing is that companies can't show ads only to people who would actually buy their products.

What it does: Sets up the central problem the passage will explore

Source/Type: Author's opinion ("It can be argued")

Connection to Previous Sentences: N/A - Opening statement

Visualization: Imagine a luxury car commercial that plays during a children's cartoon show - 99% of viewers can't afford the car and get annoyed by irrelevant advertising

Reading Strategy Insight: This opening gives us the roadmap. The passage will explain WHY companies can't target precisely.

What We Know So Far: Marketing has a targeting problem
What We Don't Know Yet: Why this problem exists, what the solution might be
There are three groups of consumers who are affected by the marketing process. What it says: Marketing impacts three different types of people

What it does: Introduces a framework to explain the targeting problem

Source/Type: Author's analytical framework

Connection to Previous Sentences: This builds on sentence 1 by promising to explain WHY the targeting problem exists - we're about to learn about different consumer groups

Visualization: Think of three different circles of people, each affected differently by the same marketing campaign

Reading Strategy Insight: Feel confident here - the author is organizing the explanation for us with a clear structure
First, there is the market segment—people who need the commodity in question. What it says: Group 1: People who actually need the product

What it does: Defines the first consumer group

Source/Type: Author's definition

Connection to Previous Sentences: This is the first of the three groups promised in the previous sentence

Visualization: For winter coats: everyone living in cold climates who needs warm outerwear

Reading Strategy Insight: Simple, logical definition - this is the most obvious group
Second, there is the program target—people in the market segment with the "best fit" characteristics for a specific product. What it says: Group 2: People who need the product AND are most likely to buy this particular version

What it does: Defines the second consumer group as a subset of the first

Source/Type: Author's definition

Connection to Previous Sentences: This builds on Group 1 by showing Group 2 is smaller and more specific - it's a subset of people who need the product

Visualization: Market segment (100 people need winter coats) → Program target (20 people need coats AND can afford premium brands)

Reading Strategy Insight: Notice the logical progression: we're narrowing down from broad need to specific likelihood to purchase
Lots of people may need trousers, but only a few qualify as likely buyers of very expensive designer trousers. What it says: Simple example: everyone needs pants, but few will buy $500 designer pants

What it does: Provides a concrete example to clarify the difference between market segment and program target

Source/Type: Author's illustrative example

Connection to Previous Sentences: This RESTATES and simplifies the concepts from sentences 3 and 4 with a concrete example. This is NOT new complexity - it's the author helping us understand!

Visualization: Market segment: 1,000 people need trousers → Program target: 50 people will buy $500 designer trousers

Reading Strategy Insight: Feel relieved here - this is simplification through example, making the abstract concepts concrete
Finally, there is the program audience―all people who are actually exposed to the marketing program without regard to whether they need or want the product. What it says: Group 3: Everyone who sees the ad, regardless of interest or need

What it does: Defines the third and largest consumer group

Source/Type: Author's definition

Connection to Previous Sentences: Completes the three-group framework promised in sentence 2. This group is different - it's not based on need or fit, but on exposure

Visualization: Designer trouser ad on TV: Program target (50 interested buyers) + Program audience (2 million viewers who see the ad)

Reading Strategy Insight: Now we see the full picture - this third group explains why people get annoyed by irrelevant ads

What We Know So Far: Three distinct groups affected by marketing, each with different relationships to the product
These three groups are rarely identical. What it says: The three groups usually don't overlap perfectly

What it does: States the core problem clearly and simply

Source/Type: Author's key insight

Connection to Previous Sentences: This is the MAIN POINT that ties back to sentence 1! This restates why "consumer dissatisfaction" exists - because ads reach the wrong people

Visualization: Program audience (2 million) ≠ Market segment (1,000) ≠ Program target (50)

Reading Strategy Insight: This is the central insight that explains everything. The author has built up to this simple but powerful observation.
An exception occurs occasionally in cases where customers for a particular industrial product may be few and easily identifiable. What it says: Sometimes, for business products, customers are few and easy to identify

What it does: Introduces an exception to show when the targeting problem doesn't exist

Source/Type: Author's qualification/exception

Connection to Previous Sentences: This contrasts with the "rarely identical" statement by showing when the groups CAN align

Visualization: Industrial customers: maybe only 15 breweries in the country need this specific equipment

Reading Strategy Insight: The exception helps prove the rule - it shows why consumer marketing is harder than business marketing
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. What it says: Example: companies needing high-speed bottle fillers are easy to identify and target

What it does: Provides specific example of when targeting works well

Source/Type: Author's concrete example

Connection to Previous Sentences: This elaborates on the previous sentence with a specific example, making the abstract "industrial product" concept concrete

Visualization: Universe of all companies (millions) → Companies that fill bottles (hundreds) → Companies needing high-speed fillers (maybe 20)

Reading Strategy Insight: Another helpful example that clarifies rather than complicates
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. What it says: When customers are few and identifiable, companies can market directly to them through specialized channels

What it does: Explains the marketing solution that works for industrial products

Source/Type: Author's explanation

Connection to Previous Sentences: This shows the positive outcome when the three groups ARE identical - you can reach exactly who you want

Visualization: "Brewery Equipment Weekly" magazine reaches exactly the 20 companies that need bottle fillers, no waste

Reading Strategy Insight: This sets up the contrast with consumer goods that's coming next
Answer Choices Explained
A
They should be used only when direct selling is not economically feasible.

Why It's Wrong:

  • The passage states that highly specialized trade media exist specifically when direct selling IS economically justified
  • They work together with direct selling, not as an alternative when direct selling fails
  • The passage presents them as part of the same successful targeting approach for industrial products

Common Student Mistakes:

  1. Do specialized trade media replace direct selling?
    → No, they work together - both are feasible for industrial products with few, identifiable customers
  2. Are they used when direct selling is too expensive?
    → Actually the opposite - they're used when targeting is so precise that direct selling becomes economically viable
B
They can be used to exclude from the program audience people who are not part of the program target.

Why It's Right:

  • The passage explicitly states these media "expose members of the program target—and only members of the program target—to the marketing program"
  • This directly means they exclude people who aren't part of the program target from the program audience
  • This exclusion solves the core problem identified in the passage about reaching wrong audiences

Key Evidence: "highly specialized trade media exist to expose members of the program target—and only members of the program target—to the marketing program"

C
They are used only for very expensive products.

Why It's Wrong:

  • The passage gives the example of brewery equipment, which isn't necessarily very expensive
  • The determining factor is having few, easily identifiable customers, not product price
  • The passage focuses on customer characteristics, not product cost

Common Student Mistakes:

  1. Does "designer trousers" example mean specialized media are for expensive products?
    → No, that example was about consumer goods targeting problems, not industrial/specialized media
  2. Are industrial products automatically expensive?
    → Not necessarily - the key is having few, identifiable customers, regardless of price
D
They are rarely used in the implementation of marketing programs for industrial products.

Why It's Wrong:

  • The passage suggests specialized trade media are commonly used for industrial products
  • The phrase "highly specialized trade media exist" implies they're regularly available and used
  • They're presented as a standard solution when targeting conditions are right

Common Student Mistakes:

  1. Does "exception occurs occasionally" mean specialized media are rarely used?
    → No, the occasions are when precise targeting is possible, and when they occur, specialized media are commonly used
  2. Are industrial products a small market?
    → The passage suggests they're significant enough to support specialized media industries
E
They are used only when direct selling has not reached the appropriate market segment.

Why It's Wrong:

  • Specialized trade media are used when direct selling HAS successfully reached the market segment
  • They work in conjunction with direct selling, not as a backup plan
  • Both are feasible when customers are few and easily identifiable

Common Student Mistakes:

  1. Are specialized media a second choice after direct selling fails?
    → No, they're complementary strategies used together when precise targeting is possible
  2. Is there a sequence where direct selling comes first?
    → The passage presents them as simultaneous approaches, both economically justified in the same circumstances
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