question

Which of the following is not a characteristic of a consumer market?

answer

their purchasing decisions are always made by only one individual

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Which of these statements is not true about business markets?

answer

the purchase is always made by more than one individual

question

Which of the following is not a requirement or characteristic of a market?

answer

large number of people

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In order to be considered a market, people do not have to have

answer

discretionary income to purchase the product

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Consumers that do not own dogs are not likely to be in the market for dog food because

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they do not have a need for it

question

The ability to purchase a product is a function of

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buying power

question

Adolescents are not considered part of the market for casinos because they

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have little buying power

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When marketing research shows that a group of people does not desire a particular product, the people in that group

answer

are not in the market for that product

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The first step in the target market selection process is

answer

identifying an appropriate target strategy

question

To find a target market, a firm can use the

answer

undifferentiated strategy, the concentrated strategy, and the differentiated strategy

question

Pillsbury defines all purchasers of flour as its target market. What targeting strategy would be most appropriate in this case?

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undifferentiated

question

When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) _________ strategy.

answer

undifferentiated

question

Which of the following statements about the undifferentiated targeting strategy is false?

answer

The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market.

question

A market in which a large proportion of customers have similar needs for a product is called a(n) _____ market.

answer

homogeneous

question

Most markets for products are made up of individuals or groups with diverse needs for products and are called ________ markets.

answer

heterogeneous

question

Toyota has learned that some people want sports cars, while others want vans, trucks, sedans, and economy cars. In this instance, Toyota has found its markets to be

answer

heterogeneous

question

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as

answer

market segments

question

The purpose of market segmentation is to

answer

divide a total market to enable a marketer to develop a more precise marketing mix.

question

Several conditions must exist for market segmentation to be successful. These conditions include all of the following except

answer

customer needs must be homogeneous

question

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) _____ strategy.

answer

concentrated

question

When markets are comprised of people with differing product needs, the marketing manager should use a(n) ___________ strategy.

answer

concentrated or differentiated

question

If Jaguar focused all its marketing efforts for the new Jaguar XKR on professionals earning more than $250,000, it would be using a(n) ___________ strategy.

answer

concentrated

question

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ___________ targeting strategy for laundry detergents.

answer

differentiated

question

Volkswagen markets its Routan to large families, its R32 race car to men, and its Jetta to young singles. What targeting approach is Volkswagen using?

answer

differentiated

question

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is

answer

determining segmentation variables

question

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ___________ variables.

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segmentation

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Age, rate of product use, location, and gender are all examples of common

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segmentation variables

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Segmentation variables are usually grouped into four categories:

answer

demographic, geographic, psychographic, and behavioristic.

question

Occupation, family size, and family life cycle are all ______ variables for segmenting consumer markets.

answer

demographic

question

Cosmopolitan magazine, Secret deodorant, and Eve cigarettes are all products whose marketers have used segmentation based on

answer

gender

question

A marketer that targets customers based on marital status and the presence and age of children is using

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family life cycle

question

If Campbell were to offer single serving "Soup for One" packages to small household markets, it would be using segmentation based on

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family life cycle

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Family life cycle is most typically based on

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marital status and ages of children

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Population density and city size are _______ variables used for market segmentation.

answer

geographic

question

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?

answer

market density

question

Justin Franklin's company is interested in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through ______

answer

geodemographic segmentation

question

a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets

answer

micromarketing

question

Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use of

answer

micromarketing

question

Which of the following is the biggest drawback to using psychographic variables?

answer

they are hard to measur

question

The three most commonly used psychographic segmentation variables are

answer

personality, motives, lifestyles

question

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is

answer

lifestyle

question

A widely used system for classifying individuals on the basis of lifestyle is

answer

VALS

question

Which of the following is an example of a behavioristic segmentation variable?

answer

usage rate

question

End use, price sensitivity, and brand loyalty are all _____ variables that can be used in market segmentation.

answer

behavioristic

question

The division of a market according to what benefits consumers want from the product is called ______ segmentation.

answer

benefit

question

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ___________ markets.

answer

business

question

Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on

answer

use of product

question

__________ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments.

answer

market segment profiles

question

The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the _____

answer

market potential

question

The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the

answer

company sales potential

question

Using the breakdown approach to sales potential, estimates are made

answer

by starting with general economic conditions

question

The manager at a local recreational vehicle store, Off-Road Rage, believes the next two years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a _________ approach to estimating sales potential.

answer

breakdown

question

Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a home builder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number of builders in the territory. He is using a ___________ approach to measure sales potential.

answer

buildup

question

The final step in the target market selection process is

answer

selecting specific target markets

question

Soft Shave is a shaving cream aimed primarily at women. The activities and decisions involved in developing and maintaining Soft Shave's product concept in buyers' minds are called

answer

product positioning

question

Product positioning refers to

answer

the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds.

question

all is true except

answer

product positioning is the customer's absolute perception of a product's attributes

question

If PepsiCo and Coca-Cola use celebrities to challenge the taste of the other firm's cola, this is referred to as ___________ positioning.

answer

head to head

question

Positioning a product to avoid competition may be best when the

answer

product's performance characteristics are not significantly different from those of competing brands.

question

If a company extends a line of products by introducing a new product to the market, and the firm does not distinctly position this product (i.e., separately from the other products in the line), the result could be

answer

cannibalization

question

In the context of marketing, cannibalization means

answer

sales of a new product hurts sales of the company's existing products

question

Guess? will be spending $22 million on marketing activities next year and expects to sell 30 million pairs of jeans. These 30 million pairs represent the company's

answer

sales forecast

question

The forecasting techniques that assume past sales patterns will continue into the future are all variations of

answer

time series analysis

question

A forecasting method that predicts sales based on relationships between past sales and other variables is called

answer

regression analysis

question

Katy Ramirez is a marketer for a golf equipment manufacturer. When forecasting company sales, she finds a direct association between past sales and per capita income. Which sales forecasting technique is Katy using?

answer

regression analysis

question

The sales forecasting method that consists of making a product available to buyers in one or more locations and measuring purchase response is

answer

market test

question

The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is

answer

time series analysis

question

Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product?

answer

market tests

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