Quiz 3 & 4

When an automobile company markets a van to families and a luxury sports car that appeals to single, working adults, it is engaging in ____________ marketing.

segment

Businesses identify market segments by dividing consumers into groups that have

similar characteristics.

Age, ethnicity, and income are all factors when developing a target segment based on

demographics

If a business which normally has gross sales of $15,800 per week forecasts an increase in sales of 8%, forecasted weekly sales would be

$17,064.

If sales were $323,000 during a certain period last year, and a 15% increase is expected for the same period this year, what are the expected sales for this year?

$371,450.00

What approach to sales forecasting is described in the following situation: A toy manufacturer is preparing a sales forecast by asking for separate forecasts for specific lines of toys, for specific territories, and for specific sales representatives. This information will then be combined into a forecast for the entire company.

Bottom-up

Which of the following is economic information that will help in preparing a sales forecast for a business:

Consumer spending levels

Businesses often segment their target markets into which of the following three primary areas:

Demographic, psychographic, geographic

What is one question that a business must answer when identifying a potentially profitable target market?

Is the market responsive?

What is a potential weakness a manager might identify in a SWOT analysis?

Lack of management depth

What is one of the best internal sources a business manager can use to predict sales for a particular date?

Past sales records

Why is it important for a business to select a target market?

To develop strategies to appeal to customers

Which of the following is a demographic characteristic that businesses often use to identify market segments:

Type of household

Company XYZ has developed a new flavor of ice cream called Hunky Chunky and has selected a target market that consists of boys, ages 7-15, who are living at home with their parents in a household that earns between $30,000 and $60,000 a year. This method of target market selection is based on

demographics.

Once a SWOT analysis identifies an internal strength, a business can use that strength to take advantage of a(n)

external opportunity.

Businesses realize that it is almost impossible to appeal to all customers which is why most businesses try to

identify market segments.

Identifying market segments helps a business to develop appropriate

marketing strategies.

It's important not to confuse weaknesses with

mistakes

A good reputation among current clients is a(n)

strength

When conducting SWOT analysis, consider strengths and weaknesses in relation to

the competition.