Marketing Chapter 5

market

A group of individuals and/or organizations that have desire or needs for products in a product class and have the ability, willingness, and authority to purchase those products is a:

marital status and age of children.

Family life cycle is most typically based on:

sales forecast.

Guess Inc. 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:

Usage rate

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

family life cycle.

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

geographic; behavioristic

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.

segmentation

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

gender.

Cosmopolitan magazine, Car and Driver magazine, Secret deodorant, and Axe body wash are all products whose marketers have used segmentation based on:

product usage

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.

lack the authority to purchase this type of product.

Eighteen-year-old students do not form a market for alcoholic beverages because they:

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

Estimating the cost of entering a market and focusing on a specific target segment is important because:

family life cycle.

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

undifferentiated

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.

motives.

If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is:

market segments.

Individuals, groups, or organizations that share one or more similar characteristics that cause them to have relatively similar product needs are called:

geodemographic segmentation.

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:

demographic

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.

geographic

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

demographic, geographic, psychographic, and behavioristic.

Segmentation variables are usually grouped into four categories:

Geographic location and family life cycle

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?

behavioristic

The Gap Inc. 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.

selecting specific target markets.

The final step in the target market selection process is:

identifying an appropriate targeting strategy.

The first step in the target market selection process is:

company sales potential

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

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

The primary advantage of a concentrated targeting strategy is:

personality, motives, and lifestyles.

The three most commonly used psychographic segmentation variables are:

market potential

The total amount of a product that customers will purchase within a specified period at a specific level of industry- wide marketing activity is the _____.

Demographic variable

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 being implemented by this

undifferentiated

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) _____ targeting strategy.

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.

When evaluating market segments, assessment of competitors is important because:

differentiated

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

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

When using personality characteristics as a market segmentation variable, marketers generally:

A large number of people or organizations

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

These variables are difficult to measure.

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

Soft drinks

Which of the following products is least likely to be segmented according to stages in the family life cycle?

Legos

Which of the following products is most likely to have its market segment based on age?

The purchase is always made by more than one individual.

Which of these statements is not true about business markets?

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.

Why would a company use the undifferentiated strategy?

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.

Geographic variable

Zerex markets its radiator liquid to different markets; one as a coolant and the other as antifreeze. Which of the following segmentation variables is being implemented by Zerex?