question

Any group of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to buy such products is a(n) a. business market. b. market. c. undifferentiated market d. segmented market e. market variable

answer

b. market.

question

Which of the following is not a characteristic of a consumer market? a. it consists of purchasers who intend to consume or benefit from the purchased products b. they do not buy products for the main purpose of making a profit c. they are sometimes referred to as B2C markets d. their purchasing decisions are always made by only one individual e. they may buy the product, but not use it themselves

answer

d. their purchasing decisions are always made by only one individual

question

Which of these statements is not true about business markets? a. the purchase may be made to resell the item b. the purchase is always made by more than one individual c. the purchase may be made to use in general daily operations d. the purchase may be made to use in production of another product e. they can also be referred to as organizational markets

answer

b. the purchase is always made by more than one individual

question

Which of the following is not a requirement or characteristic of a market? a. The ability to purchase a product b. A large number of people or organizations c. The authority to buy a product d. The willingness to use buying power e. The need for a specific product in a specific product category

answer

b. A large number of people or organizations

question

Mia is pet-sitting for a friend's dog while he is on vacation. Her friend has given Mia all sorts of information, including the veterinarian's name and phone number, pet emergency center location, and the dog's favorite bedtime snack. The first evening of the vacation, Mia realizes that her friend did not bring the dog's food over, and she has no idea what the dog eats. Her friend's cell phone is "out of range" at the moment, so Mia must go to the grocery store and shop for dog food, even though she has never bought it before now. In this case, even though Mia is not a dog owner, she is likely to be part of the market for dog food for all of the following reasons except _______. a. she has the authority to purchase the dog food. b. she possesses the buying power for purchasing dog food. c. she has the need or desire for dog food. d. her ability to purchase the dog food is questionable. e. she is willing to use her buying power.

answer

d. her ability to purchase the dog food is questionable.

question

The ability to purchase a product is a function of a. buying power. b. desire. c. willingness. d. authority. e. needs.

answer

a. buying power.

question

Jack has just joined a law firm as its purchasing agent for all supplies, equipment, and service contracts. In his previous position at another company, Jack could make decisions for any purchase up to $1 million; however, at the new law firm, he can only make decisions for purchases less than $500,000. Recently, Jack has been working with a sales representative from a computer software firm about a contract for new program to process the firm's billing statements. Jack signs the contract, even though it is for $950,000. In this case, Jack ___ part of the market for the software because _____. a. is; he has very little buying power. b. is; has the need for the software. c. is not; he is willing to spend the firm's money. d. is; he has the desire for the software. e. is not; he does not have the authority to purchase.

answer

e. is not; he does not have the authority to purchase.

question

Generally speaking, individuals who are unemployed would not be considered a target market for lawn care services because a. they would not desire such products. b. they would not be willing to purchase such products. c. they would not have the ability to purchase such products. d. such markets are narrowly defined geographically. e. they would not be authorized to purchase such products.

answer

c. they would not have the ability to purchase such products.

question

Eighteen-year-old students do not form a market for alcoholic beverages because they a. lack sufficient buying power to form a market. b. lack the authority to purchase this type of product. c. do not want to purchase this type of product. d. do not have sufficient experience with this type of product. e. lack the money to purchase this type of product.

answer

b. lack the authority to purchase this type of product.

question

Prodigy Placement is a private elementary school located in the center of Manhattan. Students at the school are considered in the top 1% of their age group in terms of IQ scores and aptitude. Parents who want to send their children to the school must get on a waiting list as soon as the child is 12 months old and must make a deposit of $5,000 to the school in order to hold the child's "application" until they reach the age of 5 years. Emma's parents put her on the waiting list at the age of 1 year and paid the deposit; however, when Emma became five years old, she did not want to attend the school even though she tested above the requirement. Her parents made the decision to enroll her for the upcoming school year. In this case, Emma ___ part of the market for Prodigy Placement, and her parents ____ part of the market a. was; were; because Emma needed to attend school. b. was; were; because Emma had the authority to attend the school. c. was; were; because they had the authority. d. was not; were; because Emma lacked the desire. e. was not; were; because Emma lacked willingness.

answer

d. was not; were; because Emma lacked the desire.

question

The first step in the target market selection process is a. determining which segmentation variables to use. b. selecting specific target markets. c. identifying an appropriate targeting strategy. d. evaluating relevant market segments. e. developing market segment profiles.

answer

c. identifying an appropriate targeting strategy.

question

The Pillsbury company defines all individual consumers who are purchasers of flour as its target market. It also defines all businesses who purchase flour as its target market. What targeting strategy would be most appropriate in this case? a. Concentrated b. Undifferentiated c. Wide appeal d. Differentiated e. Clustered

answer

d. Differentiated

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. a. concentrated targeting b. differentiated c. heterogeneous market d. undifferentiated e. single mix

answer

d. undifferentiated

question

Why would a company use the undifferentiated strategy? a. The needs of individual consumers are dissimilar, and distinctive marketing mixes are required to satisfy them. b. The undifferentiated strategy is the one strategy that provides maximum satisfaction to the whole market. c. The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix. d. The undifferentiated strategy is expensive to implement but tends to produce the most sales. e. When a market is made up of individuals or organizations with diverse need for products in a specific product class.

answer

c. The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix.

question

When the needs of individual consumers in a target market for a specific product are similar and the organization can satisfy most customers with a single marketing mix, the best approach to use may be the ____ strategy. a. undifferentiated b. differentiated c. segmented d. concentrated e. heterogeneous

answer

a. undifferentiated

question

Which of the following statements about the undifferentiated targeting strategy is false? a. The undifferentiated targeting strategy should be used when the needs of individual customers are similar. b. The undifferentiated targeting strategy uses one promotional program aimed at everyone in the target market. c. The undifferentiated targeting strategy is good for use with staple items, such as sugar and salt. d. The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market. e. The opposite of the undifferentiated targeting strategy is the differentiated targeting strategy.

answer

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

question

The ProMark Company manufactures a pencil that is about five inches long and has no eraser. It sells the product primarily to golf courses and universities. What type of targeting strategy is the ProMark Company using? a. Extensive b. Concentrated c. Undifferentiated d. Intensive e. Differentiated

answer

b. Concentrated

question

The producers of C & H Cane Sugar sell the product in five-pound bags, one-pound bags, and one-pound boxes. When developing its advertising strategy, C & H will most likely use a(n) ____ approach in defining a target market. a. undifferentiated b. differentiated c. product strategy d. cost-benefit e. demographic

answer

a. undifferentiated

question

If Morton Salt saw all table salt customers as pretty much alike and thus offered only one marketing mix, it would be using the ____ strategy. a. directed b. undifferentiated c. segmented d. differentiated e. product-use

answer

b. undifferentiated

question

Smart Balance produces a line of milk products that are lactose-free. The milk comes in pint, quart, and half-gallon cartons, as well as 16-ounce glass bottles. Smart Balance sells its pint cartons to school systems, its quart and half-gallon cartons to grocery stores, and its glass bottles to vending machine operators. Smart Balance appears to use a(n) _____ strategy in marketing its product to a target market that is likely to be _______. a. undifferentiated; homogeneous b. undifferentiated; heterogeneous c. differentiated; homogenous d. differentiated; heterogeneous e. concentrated; heterogeneous

answer

c. differentiated; homogenous

question

Most markets for products are made up of individuals or groups with diverse needs for products and are called ____ markets. a. undifferentiated b. concentrated c. homogenous d. differentiated e. heterogeneous

answer

e. heterogeneous

question

Walmart sells numerous products, including packaged food, produce, automotive maintenance services, eyeglasses, clothing, and toys. Walmart advertises itself as a store where "we save people money so they can live better," focusing on its low prices as the customer's most important need. Walmart's advertising appears to use a(n) _____ strategy to a market that is _____. a. undifferentiated; homogeneous. b. undifferentiated; heterogeneous. c. differentiated; homogeneous. d. homogeneous; differentiated. e. heterogeneous; undifferentiated.

answer

a. undifferentiated; homogeneous.

question

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as a. market segments. b. heterogeneous markets. c. concentrated markets. d. demographic segments. e. strategic segments.

answer

a. market segments.

question

Mattel views the toy market as composed of four age groupings, each with different needs and desires. Mattel is using a(n) ____ targeting strategy for its groups, which are known as _____. a. undifferentiated market; market segments b. undifferentiated market; heterogeneous. c. differentiated; market segments. d. differentiated; the marketing mix. e. concentrated market; heterogeneous.

answer

c. differentiated; market segments.

question

The purpose of market segmentation is to a. differentiate products. b. divide a total market to enable a marketer to develop a more precise marketing mix. c. reduce the overall cost of marketing activities. d. identify a single marketing mix that will be satisfactory for the general market. e. meet the needs of homogeneous markets.

answer

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

question

The process of dividing a total market into market groups because people within each group have relatively similar product needs is called a. segmentation. b. diversification. c. target marketing. d. concentration. e. customization.

answer

a. segmentation.

question

Several conditions must exist for market segmentation to be successful. These conditions include all of the following except a. the total market should be divided so that segments can be compared on sales potential, costs, and profits. b. customers' needs for the product must be homogeneous. c. the company must be able to reach the chosen segment with a particular marketing mix. d. segments must be identifiable and divisible. e. at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment.

answer

b. customers' needs for the product must be homogeneous.

question

A business advantage of the concentrated targeting strategy for any company is that it a. requires less market research and information. b. requires less intensive analysis of customers' characteristics and needs. c. allows a firm to utilize all of its production capacity. d. maintains the firm's flexibility in moving into other market segments. e. allows a firm to develop a special marketing mix for a single market segment.

answer

e. allows a firm to develop a special marketing mix for a single market segment.

question

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) ____ strategy. a. selective b. focused c. differentiated d. concentrated e. undifferentiated

answer

d. concentrated

question

When markets are comprised of people with differing product needs, the marketing manager should use a(n) ____ strategy. a. concentrated or differentiated targeting b. market-intensive c. integrated d. product-oriented e. undifferentiated

answer

a. concentrated or differentiated targeting

question

A disadvantage of the concentrated targeting strategy is that a. the firm's financial condition is tied to a single and specialized marketing mix. b. large sales volumes cannot be generated. c. production costs may be higher than with other strategies. d. marketing personnel may become dissatisfied with the limited opportunities provided by this approach. e. marketing costs are often higher than for other strategies.

answer

a. the firm's financial condition is tied to a single and specialized marketing mix.

question

If Georgia-Pacific, a producer of home siding, decking, and other wood products, focused its marketing efforts to home construction companies only, it would be using a(n) ____ strategy. If it sold the same products to both construction companies and DIY retailers such as Home Depot, it would be using a(n) ____ strategy. a. undifferentiated; undifferentiated b. undifferentiated; differentiated c. differentiated; multisegmented d. concentrated; differentiated e. concentrated; concentrated

answer

d. concentrated; differentiated

question

Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name. It uses the same marketing mix to reach this market. Tiffany's uses a(n) ____ strategy. a. undifferentiated b. differentiated targeting c. exclusive targeting d. heterogeneous e. concentrated targeting

answer

e. concentrated targeting

question

Interior Designs Inc. sells expensive custom-made draperies, bedding, and accessories through sales representatives who are also interior designers. It also has another, slightly less expensive line that it sells through stores such as Nordstrom's and Saks Fifth Avenue. Interior Designs Inc. is most likely using a(n) ____ targeting strategy. a. differentiated b. undifferentiated c. concentrated d. homogeneous e. heterogeneous

answer

a. differentiated

question

The primary advantage of a concentrated targeting strategy is a. it meets the needs of a wide range of consumers. b. it allows a firm to specialize to meet specific customer needs. c. it is more flexible than any other approach. d. it is the least risky targeting approach. e. its customers are the most willing to repurchase the same brands.

answer

b. it allows a firm to specialize to meet specific customer needs.

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. a. multiuse b. differentiated c. stratified d. undifferentiated e. concentrated

answer

b. differentiated

question

Volkswagen markets its Routan to large families, its R32 racecar to men, and its Jetta to young singles. What targeting approach is Volkswagen using? a. Concentrated b. Strategic c. Differentiated d. Undifferentiated e. Multisegmented

answer

c. Differentiated

question

Which of the following products is most likely to be marketed, using an undifferentiated approach? a. bicycle b. computer c. notebook d. seasoning salt e. oscillating fan

answer

d. seasoning salt

question

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is a. determining the demographic variables of the target market. b. developing market segment profiles. c. determining which segmentation variables to use. d. selecting specific target markets. e. evaluating relevant market segments.

answer

c. determining which segmentation variables to use.

question

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables. a. marketing b. classification c. segmentation d. stratification e. dividing

answer

c. segmentation

question

Age, rate of product use, location, and gender are all examples of common a. demographic variables. b. geographic characteristics. c. targeting strategies. d. psychographic variables. e. segmentation variables.

answer

e. segmentation variables.

question

Segmentation variables are usually grouped into four categories: a. demographic, geographic, religion, and income. b. geopolitical, income, behavioristic, and psychographic. c. attitudes, lifestyles, behaviors, and gender. d. geographic, demographic, psychographic, and attitudes. e. demographic, geographic, psychographic, and behavioristic.

answer

e. demographic, geographic, psychographic, and behavioristic.

question

Which of the following is not one of the major categories of consumer market segmentation variables? a. Demographic characteristics b. Geographic variables c. Psychographic dimensions d. Situational variables e. Behavioristic characteristics

answer

d. Situational variables

question

Alpine Ski Shops is looking for new markets for both its brick and mortar retail stores and its catalog division. Alpine Ski Shops would most likely use a(n) ______ base for market segmentation of its stores and a(n) ______ base for market segmentation of its catalog division? a. behavioristic; geographic b. geographic; demographic c. demographic; psychographic d. environmental; demographic e. geographic; behavioristic

answer

e. geographic; behavioristic

question

TimeWarner Cable uses a segmentation strategy for its cable TV packages based on market characteristics such as age, gender, or income. Which of the following segmentation variables is TimeWarner using? a. Demographic b. Geographic c. Psychographic d. Product-related e. Education

answer

a. Demographic

question

With its Venus razor, Gillette was the first marketer to offer a triple blade razor specifically designed for women. This is an example of market segmentation using ____ variables. a. demographic b. psychographic c. geographic d. family life cycle e. product use

answer

a. demographic

question

Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income. Kelly's Kids is using ____ variables to segment its market. a. demographic b. psychographic c. sociographic d. behavioristic e. geographic

answer

a. demographic

question

A marketer that targets customers based on marital status and the presence and age of children is using a. behavioristic segmentation. b. lifestyle variables. c. psychographic variables. d. family life cycle. e. phase of life segmentation.

answer

d. family life cycle.

question

Which of the following products is most likely to have its market segment based on age? a. Nike shoes b. Lipton Iced Tea c. Bic pens d. Legos e. Carpet

answer

d. Legos

question

If Campbell were to offer single serving "Soup for One" packages to household markets, it would be using segmentation based on a. income. b. age. c. preferences. d. geographic considerations. e. family life cycle.

answer

e. family life cycle.

question

Family life cycle is most typically based on a. income. b. geographic location. c. marital status and age of children. d. occupation. e. buying power.

answer

c. marital status and age of children.

question

Population density and city size are ____ variables used for market segmentation. a. geographic b. demographic c. psychographic d. environmental e. geodemographic

answer

a. 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? a. Micromarketing b. Population c. Market density d. MSA e. PMSA

answer

c. Market density

question

Subaru is producing a new seven-passenger van with all-wheel drive. Which of the following would be the best variables for segmenting the market for this new model? a. Gender and age b. Geographic location and family life cycle c. Income and geographic location d. Family life cycle and income e. Geographic location and gender

answer

b. Geographic location and family life cycle

question

Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid a. behavioristic segmentation. b. geodemographic segmentation. c. market density analysis. d. demographic segmentation. e. geographic segmentation.

answer

b. geodemographic segmentation.

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 a. U.S. Census Bureau information. b. geographic segmentation variables. c. geodemographic segmentation. d. climate information. e. psychographic segmentation.

answer

c. geodemographic segmentation.

question

Micromarketing is a. a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets. b. developing a very specific marketing mix that will effectively meet the needs of only a small segment of the market. c. marketing efforts that are tightly controlled by high-level executives in the organization. d. a way to segment the market to meet the needs of individuals with the same motives and personality attributes. e. creating advertising that is so specific to a certain type of individual that few people outside that micromarket will respond to the message.

answer

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

question

Which of the following is the biggest drawback to using psychographic variables? a. They are very costly to collect. b. They are difficult to measure. c. They give poor information about consumer needs. d. They do not reflect socioeconomic characteristics of consumers. e. The resulting segments are difficult to be reached.

answer

b. They are difficult to measure.

question

Seventh Generation is a company producing products that limit the amount of negative impact on the environment. Their product line includes dishwashing liquid, toilet paper, paper towels, baby wipes, and laundry detergent, to name a few. Seventh Generation is now interested in producing a new line of clothing; mostly t-shirts, shorts, and long pants for both men and women. Their research indicates that they should use psychographic segmentation in their marketing strategy. Which group of segmentation variables will Seventh Generation be using? a. Geographic location b. Age, sex, and socioeconomic characteristics c. Social class variables d. Personality characteristics, motives, and lifestyles e. Family life cycle, social class, and religion

answer

d. Personality characteristics, motives, and lifestyles

question

When using personality characteristics as a market segmentation variable, marketers generally a. conduct personality assessments of their potential target market to determine which personality characteristics they possess. b. use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have. c. use generic characteristics that all members of the population have. d. use a positively viewed characteristic they assume much of their target market has or would like to have. e. conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have.

answer

d. use a positively viewed characteristic they assume much of their target market has or would like to have.

question

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is a. motive. b. social class. c. personality. d. stage in family life cycle. e. lifestyle.

answer

e. lifestyle.

question

If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is a. lifestyle. b. motives. c. personality. d. benefit expectations. e. personality attributes.

answer

b. motives.

question

Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in ____ segmentation. a. psychographic b. social class c. lifestyle d. personality e. family life cycle

answer

c. lifestyle

question

A widely used system for classifying individuals on the basis of lifestyle is a. CMSA. b. PRIZM. c. CMSA. d. LIFO. e. Prospect Zone.

answer

b. PRIZM.

question

Which of the following is an example of a behavioristic segmentation variable? a. Family size b. Climate c. Age d. Usage rate e. Personality characteristics

answer

d. Usage rate

question

Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on a. behavioristic variables. b. benefits. c. lifestyles. d. psychographic variables. e. demographic variables.

answer

a. behavioristic variables.

question

. The Gap has recently produced a new line of athletic wear that closely competes with a designer label in its quality, utility, and appearance. However, it is about half the cost of the designer brand. Product managers for The Gap line plan to use price sensitivity, brand loyalty, and end use as variables to segment their target market. These are all _______ variables for market segmentation. a. psychographic b. usage c. demographic d. lifecycle e. behavioristic

answer

e. behavioristic

question

Alli segments its diet pills based on those who have morning cravings, those who tend to overeat near the end of the day, those who need all day long appetite suppression, and those who want appetite control and more energy. This is an example of market segmentation based on variables of a. demographics. b. lifestyles. c. psychographics. d. behavior. e. personality characteristics.

answer

d. behavior.

question

Crest toothpaste is available in several different versions, such as Crest Whitening, Crest Tartar Control, Crest Whitening with mouthwash, and Crest Total Effects. Given these different variations of the product, it appears that the marketers of Crest are segmenting the market by using ____ segmentation. a. behavioristic b. product usage c. benefit d. end-purpose e. advantage

answer

c. benefit

question

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ____ markets. a. consumer b. business c. government d. international e. most target

answer

b. business

question

Dell segments its business markets into small business, corporate, government agencies, K-12 schools, and higher education institutions. The primary segmentation variable used in this example is a. geographic location. b. type of organization. c. secondary product use. d. customer size. e. market potential.

answer

b. type of organization.

question

Which of the following variables would most likely be used to segment a business market? a. An attitude of the company's CEO b. The geographic location of the company c. The lifestyle of the company's buying agent d. Net income generated by the company e. Common opinions of the company's employees

answer

b. The geographic location of the company

question

Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on a. customer size. b. psychographics. c. demographics. d. use of product. e. geographic location.

answer

d. use of product.

question

Bethlehem Steel provides steel for a variety of uses to its various customers. Customers have different needs for the steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is a. geographic location. b. customer size. c. product use. d. customer importance. e. organization classification.

answer

c. product use.

question

After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is a. evaluating each of the relevant market segments. b. selecting the specific target markets. c. reviewing the appropriate marketing strategy. d. analyzing the interaction between segmentation variables. e. developing market segment profiles.

answer

e. developing market segment profiles.

question

____ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments. a. Market segmentation variables b. Market segment profiles c. Segmentation grids d. Market differentiation indexes e. Market concentrations

answer

b. Market segment profiles

question

Yvonne and Garret are looking at information about how their organization's products could fit potential customers' needs. This information deals with demographic characteristics, product benefits sought, lifestyles, geographic factors, brand preferences, and usage rates. They are most likely looking at a. the sales force survey results. b. the results of sales forecasting. c. a market trend analysis. d. a market segmentation discrimination analysis. e. a market segment profile.

answer

e. a market segment profile.

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 a. competitor sales potential. b. sales objective. c. forecasted sales. d. company sales potential. e. market potential.

answer

e. market potential.

question

The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the a. sales forecast. b. market potential. c. company sales potential. d. company sales objective. e. market share goal.

answer

c. company sales potential.

question

General Electric calculates that the total number of light bulbs sold to consumers in the next year by all light bulb producers is 1 billion, given anticipated marketing efforts by the firms involved. This figure represents the industry's a. sales potential. b. market potential. c. target growth rate. d. sales forecast. e. sales objective.

answer

b. market potential.

question

If Baskin-Robbins calculates that it could sell up to 25 percent of all ice cream cones sold in the United States, this percentage would represent the ice cream marketer's a. target growth rate. b. sales forecast. c. sales objective. d. company sales potential. e. market potential.

answer

d. company sales potential.

question

Using the breakdown approach to sales potential, estimates are made a. by referring to specific geographic factors. b. by establishing levels of marketing effort that will be required to achieve specific levels of sales. c. without reference to industry marketing efforts. d. without reference to general economic conditions. e. by starting with general economic conditions.

answer

e. 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. a. breakdown b. recessionary c. buildup d. pyramid e. dimensional

answer

a. breakdown

question

Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a homebuilder, 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. a. multivariable b. use of product c. breakdown d. regression e. buildup

answer

e. buildup

question

The buildup approach measure of sales potential a. starts with broad estimates of general economic activity. b. ends with an estimate of a single firm's sales of a specific product. c. starts with forecasts about demand for a specific product within a relatively small area. d. does not use sales estimates. e. is seldom employed by industrial firms.

answer

c. starts with forecasts about demand for a specific product within a relatively small area.

question

When evaluating market segments, assessment of competitors is important because a. it is difficult to segment a market when it has multiple competitors. b. an absence of competitors usually creates difficulties in accurately measuring segment sales potential. c. sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment. d. a competitive analysis may lead to confusion as to who are the key competitors. e. competition is generally not a major problem as long as a marketer is aware of it.

answer

c. sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment.

question

Estimating the cost of entering a market and focusing on a specific target segment is important because a. cost estimates are crucial to estimating sales potential accurately. b. higher costs will keep other potential competitors from entering that particular segment. c. customers are more likely to be attracted to marketers that invest heavily in the target segment. d. the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs. e. higher cost generally ensures long-term success.

answer

d. the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs.

question

The final step in the target market selection process is a. implementing the appropriate marketing mix for the target market. b. evaluating relative market segments. c. eliminating market segments that are cost prohibitive. d. selecting specific target markets. e. revising the final segmentation variables based on target selection.

answer

d. selecting specific target markets.

question

Frito-Lay Snack Foods is currently conducting market segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to a. determine which segmentation variables to use. b. develop market segment profiles. c. identify the appropriate targeting strategy. d. select specific target markets. e. develop sales forecasts.

answer

d. select specific target markets.

question

Meghan would like to open a house cleaning business and is considering several market segments. She has identified four segments for consideration; young, urban singles, young married professionals, senior citizens, and college students. She has just completed an analysis of these four segments by assessing such factors as sales estimates, competition, and estimated costs. Meghan is now ready for the next step in the target market selection process, which is to a. identify the appropriate targeting strategy. b. determine which segmentation variables to use. c. develop market segment profiles. d. evaluate relevant market segments. e. select specific target markets.

answer

e. select specific target markets.

question

When selecting specific target markets, a firm should a. revert to an undifferentiated approach if the market is deemed heterogeneous. b. choose the segments most in line with the firm's objectives and long-term growth. c. choose all segments that are determined to be profitable for the organization. d. choose the minimum number of segments necessary to achieve company sales potential. e. pick the segments with the best sales forecasts for the upcoming period of time.

answer

b. choose the segments most in line with the firm's objectives and long-term growth.

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 a. sales potential. b. market potential. c. sales forecast. d. market sales. e. selected market.

answer

c. sales forecast.

question

The amount of product a company expects to sell during a specific period at a specified level of marketing activity is called the a. company sales potential. b. revenue estimate. c. company sales prediction. d. market potential. e. sales forecast.

answer

e. sales forecast.

question

Relying on executive judgment for forecasting may be adequate when a. levels of marketing efforts put forth by competitors vary considerably. b. recent events give the executive specific impressions of product demand. c. product demand is erratic. d. the executive conducts surveys. e. the executive has considerable experience and product demand is relatively stable.

answer

e. the executive has considerable experience and product demand is relatively stable.

question

Intuition and expediency are primary characteristics of which of the following sales forecasting methods? a. Surveys b. Executive judgment c. Cycle analysis d. Market tests e. Industry indicators

answer

b. Executive judgment

question

When a business has a relatively small number of customers, a preferred method of forecasting is a. regression analysis. b. trend analysis. c. the Delphi technique. d. a market test. e. a customer forecasting survey.

answer

e. a customer forecasting survey.

question

The most important reason that a firm might use a sales force forecasting survey to determine its sales forecast is a. salespeople are generally optimistic about the future and will provide excellent forecast targets. b. most salespeople tend to have a pessimistic outlook, which is more likely to result in an achievable sales forecast. c. this tends to be the fastest way to determine a good sales forecast for the upcoming period. d. the averaging and other statistical techniques applied to these forecasts result in extremely accurate numbers. e. the sales staff is closer to the actual customers on a regular basis than anyone else in the organization.

answer

e. the sales staff is closer to the actual customers on a regular basis than anyone else in the organization.

question

When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n) a. expert forecasting survey. b. Delphi technique. c. random factor analysis. d. external judgment survey. e. market test.

answer

a. expert forecasting survey.

question

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to a. allow an opportunity to obtain diverse expert opinions. b. allow experts to work separately to reach a consensus as to their forecasts. c. reach an accurate sales forecast through the use of multiple sales forecasting techniques. d. determine if the expert forecasting survey is superior to regression analysis. e. assess the extent to which this year's sales forecast is more accurate than that of previous years.

answer

b. allow experts to work separately to reach a consensus as to their forecasts.

question

The forecasting techniques that assume past sales patterns will continue into the future are all variations of a. regression analysis. b. random factor analysis. c. seasonal analysis. d. time series analysis. e. past sales forecasting surveys.

answer

d. time series analysis.

question

A forecasting method that predicts sales based on relationships between past sales and other variables is called a. regression analysis. b. customer forecasting surveys. c. the Delphi technique. d. random factor analysis. e. time series analysis.

answer

a. regression analysis.

question

Brian works for a manufacturer of sports equipment and is currently developing a company sales forecast for golf clubs. While reviewing data, he discovered a pattern in sales volume over the past ten years that peaked during two months of each year. Brian likely used which sales forecasting technique? a. the Delphi technique b. Executive judgment c. Time series analysis d. Market tests e. Regression analysis

answer

c. Time series analysis

question

Katy Ramirez is a marketer for a company that produces in-ground swimming pools. When forecasting company sales, she finds a direct association between past sales and per capita income. Which sales forecasting technique is Katy using? a. The Delphi technique b. Executive judgment c. Time series analysis d. Market tests e. Regression analysis

answer

e. Regression analysis

question

The sales prediction technique based on the correlation between sales and other factors⎯such as population density, per capita income, or family size⎯is a. executive judgment. b. time series analysis. c. regression analysis. d. a market test. e. an expert survey.

answer

c. regression analysis.

question

The Sara Lee Company is attempting to forecast sales for a new ice cream cake. To come up with an accurate forecast, Sara Lee places the product in Atlanta supermarkets for a period of four months. In this instance, Sara Lee is using which forecasting method? a. Time series analysis b. Market test c. Executive judgment d. Regression analysis e. Survey

answer

b. Market test

question

The sales forecasting method that consists of making a product available to buyers in one or more locations and measuring purchase response is a. a market test. b. regression analysis. c. trend analysis. d. a survey. e. the Delphi technique.

answer

a. a 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 a. the regression method. b. customer forecasting. c. a market test. d. sales force forecasting. e. time series analysis.

answer

e. time series analysis.

question

Which of the following forecasting methods is least dependent on historical sales data? a. Regression analysis b. Trend analysis c. Time series analysis d. Cycle analysis e. A market test

answer

e. A market test

question

What is the main problem with using a market test as a forecasting tool? a. Difficult to interpret b. Expensive c. Inaccurate d. Unacceptable to consumers e. Overused

answer

b. Expensive

question

A market is a group of people who, as individuals, have needs for products in a product class and have the ability, willingness, and authority to purchase such products. a. True b. False

answer

a. True

question

. Individuals' ability to buy depends on the strength of their buying power. a. True b. False

answer

a. True

question

The four requirements of a market are that the individuals in the market must have a need for the product and the ability, willingness, and authority to buy it. a. True b. False

answer

a. True

question

A person who has buying power also has the authority to buy. a. True b. False

answer

b. False

question

The five-step process usually used for target market selection includes identifying the appropriate targeting strategy, determining which segmentation variables to use, developing market segment profiles, evaluating relevant market segments, and deciding which targeting strategy to use. a. True b. False

answer

b. False

question

There are only two basic strategies for selecting target markets: the undifferentiated targeting strategy and the concentrated targeting strategy. a. True b. False

answer

b. False

question

A company sometimes defines a total market as its target market. a. True b. False

answer

a. True

question

One condition for effective segmentation is that at least one segment must have substantial profit potential. a. True b. False

answer

a. True

question

The undifferentiated strategy can be effective for an organization that has a homogeneous market and can develop and maintain a single marketing mix. a. True b. False

answer

a. True

question

An undifferentiated targeting strategy does not target a single market with one marketing mix. a. True b. False

answer

b. False

question

The concentrated targeting strategy is one in which an organization directs its marketing efforts toward a single market segment through one marketing mix. a. True b. False

answer

a. True

question

A differentiated targeting strategy is when the organization targets two or more markets by developing a single marketing mix. a. True b. False

answer

b. False

question

Only one variable can be used to segment a market. a. True b. False

answer

b. False

question

Segmentation variables are characteristics of individuals, groups, or organizations in a total market. a. True b. False

answer

a. True

question

A segmentation variable is used to group smaller markets into one larger market. a. True b. False

answer

b. False

question

Demographic characteristics are commonly used to segment a market because they are closely related to consumers' product needs and purchasing behavior. a. True b. False

answer

a. True

question

Family life cycle is a psychological dimension used for segmenting markets. a. True b. False

answer

b. False

question

The term market density refers to the number of potential customers per unit of land area, such as per square mile. a. True b. False

answer

a. True

question

One problem with using psychographic variables for segmentation purposes is that they are difficult to measure accurately. a. True b. False

answer

a. True

question

Motives can be used to segment markets. a. True b. False

answer

a. True

question

Lifestyle is a product-related variable. a. True b. False

answer

b. False

question

Lifestyle analysis focuses on people's activities, interests, and opinions. a. True b. False

answer

a. True

question

The ways in which customers use a particular product may be a basis for segmenting the market. a. True b. False

answer

a. True

question

One way marketers can segment business markets is according to their geographic location. a. True b. False

answer

a. True

question

A marketer may segment a market in terms of the benefits that customers expect to receive from a particular product. a. True b. False

answer

a. True

question

A market segment profile deals primarily with demographic characteristics. a. True b. False

answer

b. False

question

A market segment profile describes the similarities among potential customers within a segment and explains the differences among people across market segments. a. True b. False

answer

a. True

question

A market segment profile may cover such aspects as demographic characteristics, geographic factors, product benefits sought, lifestyles, brand preferences, and usage rates. a. True b. False

answer

a. True

question

A market segment profile provides customers with an understanding of how a business can use its capabilities. a. True b. False

answer

b. False

question

Market segment profiles help determine the most desirable segment or segments in relation to the firm's strengths, weaknesses, objectives, and resources. a. True b. False

answer

a. True

question

The information yielded by market segment profiles usually is not very useful later in the marketing process. a. True b. False

answer

b. False

question

The two general approaches to measuring company sales potential are the breakdown and the buildup approach. a. True b. False

answer

a. True

question

Company sales potential is the maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product. a. True b. False

answer

a. True

question

Market potential is the amount of a product that an organization could sell during a specified time period. a. True b. False

answer

b. False

question

The size of the market potential places limits on the size of the company sales potential. a. True b. False

answer

a. True

question

During the evaluation of relevant market segments, competitive assessment is used primarily to determine the possibility of additional competitors entering particular segments. a. True b. False

answer

b. False

question

The sum of firms' marketing efforts equals industry marketing efforts. a. True b. False

answer

a. True

question

When evaluating relevant market segments, cost estimates are important to determine if an organization entering a particular segment can operate at costs equal to or below those of competitors. a. True b. False

answer

a. True

question

It is likely that during the fifth step of the target market selection process, marketers will decide not to enter and compete in any market segments. a. True b. False

answer

b. False

question

When a firm's management is making the final selection of specific target markets to enter, it should consider whether the organization has the financial resources, managerial skills, expertise, and facilities needed to effectively compete in the selected segments. a. True b. False

answer

a. True

question

Consideration of the firm's overall objectives usually does not influence the final selection of a target market segment. a. True b. False

answer

b. False

question

If long-term prospects look poor, a marketer may ultimately choose not to target a segment because it would be difficult to recoup expenses. a. True b. False

answer

a. True

question

A company sales forecast is the amount of a product that a company expects to sell during a specific time period at a specified level of marketing activities. a. True b. False

answer

a. True

question

Sales forecasts are always long-range in nature. a. True b. False

answer

b. False

question

The executive judgment method of sales forecasting is very accurate in predicting future sales. a. True b. False

answer

b. False

question

In developing a company sales forecast, the forecasting methods are limited to surveys and correlation methods. a. True b. False

answer

b. False

question

The types of surveys used to forecast sales are customer, executive, and competitor surveys. a. True b. False

answer

b. False

question

. Surveys are sometimes used to forecast sales. a. True b. False

answer

a. True

question

In a customer forecasting survey, a marketer would question customers about the types and quantities of products they intend to buy during a specific time period. a. True b. False

answer

a. True

question

Customer forecasting surveys as a means of forecasting sales are not appropriate for a firm that has relatively few customers. a. True b. False

answer

b. False

question

Trend analysis is a sales forecasting technique that focuses on aggregate sales data over a period of many years to determine general trends in annual sales. a. True b. False

answer

a. True

question

A marketer can use regression analysis techniques to predict the sales of new products. a. True b. False

answer

b. False

question

Through market tests, a forecaster gains data regarding consumers' intended purchases. a. True b. False

answer

b. False

question

A firm ordinarily uses the same sales forecasting method for determining short-range and long-range sales forecasts. a. True b. False

answer

b. False

question

In your regular goods and services consumption activities, you purchase products for resale and for use in your daily operations. You also purchase products that you will use to produce other products. Based on this information, which of the following best describes the type of market you are part of? a. B2C market b. Business market c. Consumer market d. Distributor market e. Reseller market

answer

b. Business market

question

The target market selection process involves _______ steps. The first step is ____________, and the last step is _____________. a. Five; Select the target market; Identify the targeting strategy b. Five; Identify the targeting strategy; Select the target market c. Six; Select the target market; Evaluate the potential of the target market d. Five; Determine segmentation variables; Select the target market e. Six; Develop market segment profiles; Select the target market

answer

b. Five; Identify the targeting strategy; Select the target market

question

You have just been promoted to vice president of marketing for your firm. Unlike your predecessor, you believe the firm can increase its sales in a market by focusing on more than one segment of the market. You recognize to do this means your firm will incur higher production costs. Based on this information, which of the following targeting strategies are you advocating? a. A concentrated targeting strategy b. An undifferentiated targeting strategy c. A broad-based targeting strategy d. A differentiated targeting strategy e. A heterogeneous targeting strategy

answer

d. A differentiated targeting strategy

question

The marketer uses segmentation variables to divide a market into segments. All of the following statements are true about segmentation variables except: a. The variables should be related to the customer's needs relative to the product being marketed. b. The variables must be measurable. c. The variables should be based solely on demographic characteristics. d. The variables should be related to the customer's behavior relative to the product being marketed. e. The variables should be related to the customer's uses of the product being marketed.

answer

c. The variables should be based solely on demographic characteristics.

question

Market segment profiles are used to describe _____________ members of a market segment, and to explain ______________members in separate market segments. a. Differences between; Similarities among b. Differences between; Differences between c. Similarities among; Similarities among d. Preferences among; Preferences among e. Similarities among; Differences between

answer

e. Similarities among; Differences between

question

Which of the following statements about market segment profiles is true? a. They can be used to calculate a lifetime value for each customer in a segment. b. They are used to describe differences among people in different market segments. c. They can only deal with demographic characteristics. d. They provide marketers with a cost estimate for serving potential customer groups. e. They cannot be used to describe similarities among potential customers.

answer

b. They are used to describe differences among people in different market segments.

question

In order for the marketer to achieve effective market segmentation, which of the following conditions must exist: a. The segments must be small enough to manage effectively. b. It must be possible to do a regression analysis on potential segments. c. Consumers' needs for the product must be homogeneous. d. The firm must be able to sell effectively to the chosen segment with a specific sales price. e. The segment must have enough profit potential to justify the development of a special marketing mix for the segment.

answer

e. The segment must have enough profit potential to justify the development of a special marketing mix for the segment.

MKTG Ch. 6 – Flashcards

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