Marketing Test Two Chapter 6
Mattel views the toy market as composed of four age groupings, each with different needs and desires. Each of these groups are known as an undifferentiated market. heterogeneous. a market segment. a marketing mix. a concentrated market.
a market segment.
Using the breakdown approach to sales potential, estimates are made by referring to specific geographic factors. by establishing levels of marketing effort that will be required to achieve specific levels of sales. without reference to industry marketing efforts. without reference to general economic conditions. by starting with general economic conditions.
by starting with general economic conditions.
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 target growth rate. sales forecast. sales objective. company sales potential. market potential.
company sales potential.
The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the sales forecast. market potential. company sales potential. company sales objective. market share goal.
company sales potential.
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. homogeneous undifferentiated multisegmented concentrated stratified
concentrated
When markets are comprised of people with differing product needs, the marketing manager should use a(n) ___________ strategy. concentrated or differentiated targeting market-intensive integrated product-oriented undifferentiated
concentrated or differentiated targeting
Subaru is producing a new crossover van with all-wheel drive. Which of the following would be a likely variable for segmenting the market for this new model? Religion Geographic location Income Political views Ethnicity
Geographic location
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? Micromarketing Population Market density MSA PMSA
Market density
A widely used system for classifying individuals on the basis of lifestyle is VALS. PRIZM. CMSA. LIFO. Prospect Zone.
VALS.
A business advantage of the concentrated targeting strategy for any company is that it requires less market research and information. requires less intensive analysis of customers' characteristics and needs. allows a firm to utilize all of its production capacity. maintains the firm's flexibility in moving into other market segments. allows a firm to develop a special marketing mix for a single market segment.
allows a firm to develop a special marketing mix for a single market segment.
When marketing research shows that a group of people does not desire a particular product, the people in that group are a market. do not have the ability to purchase the product. do not have the authority to purchase the product. are not a market for the product. are a market but will not purchase the product.
are not a market for the product.
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. demographic psychographic sociographic behavioristic geographic
demographic
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. demographic psychographic geographic family life cycle product use
demographic
If a company markets its products to several different countries, it is using a(n) ___________ targeting strategy to segment the total market. undifferentiated concentrated stratified differentiated homogeneous
differentiated
If Campbell were to offer single serving "Soup for One" packages to small household markets, it would be using segmentation based on income. ethnicity. taste. geographic considerations. family life cycle.
family life cycle.
The primary advantage of a concentrated targeting strategy is it meets the needs of a wide range of consumers. it allows a firm to specialize to meet specific customer needs. it is more flexible than any other approach. it is the least risky targeting approach. its customers are the most willing to repurchase the same brands.
it allows a firm to specialize to meet specific customer needs.
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 sales potential. market potential. target growth rate. sales forecast. sales objective.
market potential.
Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use of market density. demographic segmentation. behavioristic segmentation. environmental segmentation. micromarketing.
micromarketing.
The undifferentiated targeting strategy for finding a target market will likely not be successful if product positioning is needed. the firm defines the total market as its target market. people within the market have heterogeneous needs. people within the market have homogeneous needs. the firm is capable of developing a single marketing mix that satisfies all people's needs.
people within the market have heterogeneous needs.
Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ___________ variables. marketing classification segmentation stratification dividing
segmentation
A disadvantage of the concentrated targeting strategy is that the firm's financial condition is tied to a single and specialized marketing mix. large sales volumes cannot be generated. production costs may be higher than with other strategies. marketing personnel may become dissatisfied with the limited opportunities provided by this approach. marketing costs are often higher than for other strategies.
the firm's financial condition is tied to a single and specialized marketing mix.
Estimating the cost of entering a market and focusing on a specific target segment is important because cost estimates are crucial to estimating sales potential accurately. higher costs will keep other potential competitors from entering that particular segment. customers are more likely to be attracted to marketers that invest heavily in the target segment. the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs. higher cost generally ensures long-term success.
the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs.
Which of these statements is not true about business markets? the purchase may be made to resell the item the purchase is always made by more than one individual the purchase may be made to use in general daily operations the purchase may be made to use in production of another product they can also be referred to as organizational markets
the purchase is always made by more than one individual
Which of the following is not a characteristic of a consumer market? it consists of purchasers who intend to consume or benefit from the purchased products they do not buy products for the main purpose of making a profit they are sometimes referred to as B2C markets their purchasing decisions are always made by only one individual each of us belongs to numerous markets of this type
their purchasing decisions are always made by only one individual
Consumers that do not own dogs are not likely to be in the market for dog food because they lack the authority to purchase the dog food. they do not possess the buying power for purchasing dog food. their ability to purchase the dog food is questionable. they do not have the need or desire for dog food. they are willing to use their buying power.
they do not have the need or desire for dog food.
Generally speaking, individuals who are unemployed would not be considered a target market for Mercedes or other luxury European import sedans because they would not desire such products. they would not be willing to purchase such products. they would not have the ability to purchase such products. such markets are narrowly defined geographically. they are not authorized to purchase such products.
they would not have the ability to purchase such products.
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 geographic location. type of organization. secondary product use. customer size. market potential.
type of organization.
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. directed undifferentiated segmented differentiated product-use
undifferentiated
Marketers for C & H Sugar believe that consumers have similar needs for the product. C & H will most likely use a(n) ___________ approach in defining a target market. undifferentiated differentiated product strategy cost-benefit demographic
undifferentiated
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. undifferentiated differentiated segmented concentrated heterogeneous
undifferentiated
Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on customer size. psychographics. demographics. use of product. geographic location.
use of product.
Which of the following is not a requirement or characteristic of a market? The ability to purchase a product A large number of people or organizations The authority to buy a product The willingness to use buying power The need for a specific product in a specific product category
A large number of people or organizations
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? Concentrated Strategic Differentiated Undifferentiated Multisegmented
Differentiated
__________ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments. Market segmentation variables Market segment profiles Segmentation grids Market differentiation indexes Market concentrations
Market segment profiles
When research indicated that Bluetooth's products were not reaching the correct target market, marketers of Bluetooth decided to change from demographic segmentation to psychographic segmentation. Which group of new segmentation variables will Bluetooth now be using? Geographic location of customers Age, sex, and socioeconomic characteristics Social class variables Personality characteristics, motives, and lifestyles Family life cycle, social class, and religion
Personality characteristics, motives, and lifestyles
Which of the following variables would most likely be used to segment a business market? An attitude of the company's CEO The geographic location of the company The lifestyle of the company's buying agent Net income generated by the company Common opinions of the company's employees
The geographic location of the company
Why would a company use the undifferentiated strategy? The needs of individual consumers are dissimilar, and distinctive marketing mixes are required to satisfy them. The undifferentiated strategy is the one strategy that provides maximum satisfaction to the whole market. 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.
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.
Which of the following statements about the undifferentiated targeting strategy is false? The undifferentiated targeting strategy should be used when the needs of individual customers are similar. The undifferentiated targeting strategy uses one promotional program aimed at everyone in the target market. The undifferentiated targeting strategy is good for use with staple items, such as sugar and salt. The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market. The opposite of the undifferentiated targeting strategy is the differentiated targeting strategy.
The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market.
Pillsbury defines all purchasers of flour as its target market. What targeting strategy would be most appropriate in this case? Concentrated Differentiated Wide appeal Undifferentiated Clustered
Undifferentiated
The ProMark Company manufactures and sells only one type of ballpoint pen at just one price. All its advertising is the same and is directed at the mass market. What type of targeting strategy is the ProMark Company using? Extensive Undifferentiated Concentrated Intensive Differentiated
Undifferentiated
Which of the following is an example of a behavioristic segmentation variable? Family size Climate Age Usage rate Personality characteristics
Usage rate
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 behavioristic variables. benefits. lifestyles. psychographic variables. demographic variables.
behavioristic variables.
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. breakdown recessionary buildup pyramid dimensional
breakdown
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. multivariable use of product breakdown regression buildup
buildup
Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ___________ markets. consumer business government international most target
business
After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is determining the demographic variables of the target market. developing market segment profiles. determining which segmentation variables to use. selecting specific target markets. evaluating relevant market segments.
determining which segmentation variables to use.
After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is evaluating each of the relevant market segments. selecting the specific target markets. reviewing the appropriate marketing strategy. analyzing the interaction between segmentation variables. developing market segment profiles.
developing market segment profiles.
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. multiuse differentiated stratified undifferentiated concentrated
differentiated
In order to be considered a market, people do not have to have a need or desire for a particular product. the ability to purchase the product. discretionary income to purchase the product. the willingness to use their buying power. the authority to buy the specific products.
discretionary income to purchase the product.
The purpose of market segmentation is to differentiate products. divide a total market to enable a marketer to develop a more precise marketing mix. reduce the overall cost of marketing activities. identify a single marketing mix that will be satisfactory for the general market. meet the needs of homogeneous markets.
divide a total market to enable a marketer to develop a more precise marketing mix.
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 U.S. Census Bureau information. geographic segmentation variables. geodemographic segmentation. climate information. psychographic segmentation.
geodemographic segmentation.
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 behavioristic segmentation. geodemographic segmentation. market density analysis. demographic segmentation. geographic segmentation.
geodemographic segmentation.
Adolescents are not considered part of the market for casinos because they have very little buying power. do not have the desire to gamble. are not willing to spend their money on gambling. cannot afford to gamble their savings. do not have the authority to gamble.
have very little buying power.
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 heterogeneous. undifferentiated. concentrated. homogeneous. focused.
heterogeneous.
The first step in the target market selection process is determining which segmentation variables to use. selecting specific target markets. identifying an appropriate targeting strategy. evaluating relevant market segments. developing market segment profiles.
identifying an appropriate targeting strategy.
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 competitor sales potential. sales objective. forecasted sales. company sales potential. market potential.
market potential.
Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as market segments. heterogeneous markets. concentrated markets. demographic segments. strategic segments.
market segments.
When evaluating market segments, assessment of competitors is important because it is difficult to segment a market when it has multiple competitors. an absence of competitors usually creates difficulties in accurately measuring segment sales potential. 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. a competitive analysis may lead to confusion as to who are the key competitors. competition is generally not a major problem as long as a marketer is aware of it.
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.
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 determine which segmentation variables to use. develop market segment profiles. identify the appropriate targeting strategy. select specific target markets. develop sales forecasts.
select specific target markets.
When a marketer is engaged in the target market selection process and has assessed relevant market segments by considering such factors as sales estimates, competition, and estimated costs, the marketer is ready for the next step, which is to Answer identify the appropriate targeting strategy. determine which segmentation variables to use. develop market segment profiles. evaluate relevant market segments. select specific target markets.
select specific target markets.
The buildup approach measure of sales potential starts with broad estimates of general economic activity. ends with an estimate of a single firm's sales of a specific product. starts with forecasts about demand for a specific product within a relatively small area. does not use sales estimates. is seldom employed by industrial firms.
starts with forecasts about demand for a specific product within a relatively small area.
