Mktg 351 Ch. 6

The population of a city or county and what type of climate the area experiences are examples of ____________ variables used for market segmentation.

geographic

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 _____.

sales forecast

A(n) ________ segmentation or targeting strategy is recommended when the needs of individual consumers in a target market for a specific product are similar and a company can satisfy most consumers with one marketing mix.

undifferentiated

A(n) ________ strategy is defined as one in which an organization designs a single marketing mix and directs it at the entire market for a particular product.

undifferentiated

French's brand, makers of the famous yellow-packaged mustard view all mustard consumers as very similar and utilizes only one marketing mix. French's brand uses a(n) ________ targeting strategy.

undifferentiated

The National Pork Board encourages consumers to buy pork through its advertising messages and theme, Pork—Be Inspired. The National Pork Board is utilizing a(n) _________ targeting strategy.

undifferentiated

The first step in the market segmentation process is to select the appropriate targeting strategy. Which of the following are the three strategies for market segmentation?

undifferentiated, concentrated, and differentiated

_____________ is defined as the maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product.

Company sales potential

Axe has been a successful marketer of men's body spray, deodorant, and antiperspirants and is a division of Unilever. Axe supports a variety of fragrances and releases new products which are supported by marketing efforts including racy advertising spots and a company-owned YouTube channel. Unilever utilizes a complex type of expert forecasting called the ________ where experts create initial forecasts, submit them to the company for averaging, and have the results returned to them so they can make individual refined forecasts. The procedure is iterative and may be repeated several times until the experts who are working independently reach a consensus. The process typically results in a very reliable sales forecast.

Delphi technique

A market segment profile deals primarily with demographic characteristics. T/F

False

A person who has buying power also has the authority to buy. T/F

False

Customer forecasting surveys as a means of forecasting sales are not appropriate for a firm that has relatively few customers. T/F

False

During the evaluation of relevant market segments, competitive assessment is used primarily to determine the possibility of additional competitors entering particular segments. T/F

False

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. T/F

False

_____ markets are composed of individuals or organizations with diverse needs for products in a specific product class.

Heterogeneous

_______ segmentation groups individuals according to how they spend their time, the importance of things in their surroundings, beliefs about themselves and broad issues, as well as some demographic characteristics.

Lifestyle

__________ is defined as the total amount of a product that consumers will purchase within a specified period at a specific level of industry-wide marketing activity.

Market potential

_________ by Nielsen, is commonly used by marketers to segment by demographic variables and combines demographics, consumer behavior, and geographic data to help marketers identify, understand, and reach their customers and prospects.

PRIZM

______ variables are the characteristics of individuals, groups, or organizations used to divide a market into segments.

Segmentation

​Your marketing team is currently working through the target market selection process to identify which customers your firm will target with a new technology product being developed. You are currently in the process step where you must consider the target market characteristics, the product attributes, and the firm's objectives and resources. Which of the five steps in the target market selection process are you currently working on?

Step #1 - Identify the appropriate targeting strategy

Biaggi's Restaurant is an upscale Italian restaurant that operates company-owned and franchise locations. Biaggi's has noticed that they have several market segments for both lunch and dinner dining and has developed a detailed description of the various customer segments. These detailed descriptions include information such as demographic characteristics—age, income and education level as well as an individual's preferences regarding how frequently they dine out and the percent of time they select Biaggi's as a restaurant. What step in the target market selection process has Biaggi's completed by describing their target market customers?

Step 3: Develop Market Segment Profiles

A marketer may segment a market in terms of the benefits that customers expect to receive from a particular product. T/F

True

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

True

The undifferentiated strategy can be effective for an organization that has a homogeneous market and can develop and maintain a single marketing mix. T/F

True

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 market segment profile

Jessica Bond is a product manager for Crest toothpaste and is working to craft a description of customers who would most likely fit the intended target market for Crest with Whitening toothpaste. Jessica is including demographic characteristics, geographic factors, product benefits sought, lifestyles, and brand preferences in the description. Jessica is completing

a market segment profile.

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to ____.

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

Which product would most likely use an undifferentiated market segmentation approach to marketing?

beef

Target has been very innovative in creating partnerships with well-known brands to provide high quality but lower-priced products of items that are typically sold in department stores such as Macy's. For example, Target offers its Calphalon Kitchen brand of cookware at $120 for a set while a similar set of Calphalon Contemporary cookware sells at Macy's for $300. Target is appealing to customers who value the brand name of Calphalon and are sensitive to price. In this example, Target is utilizing _____ variables for market segmentation.

behavioristic

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.

behavioristic

Verizon Wireless uses a segmentation strategy for its mobile phone and data packages based on market characteristics such as number of devices, amount of download capacity, and volume of minutes or text messages. Based on these variables, Verizon Wireless is using _______ variables for segmentation.

behavioristic

AMC Theaters that operate movie and entertainment locations across the United States may choose to segment its market based upon the frequency of visits to the cinema. For example, they might classify moviegoers into three groups including fanatical fans, moderate fans, or selective fans reflecting the frequency or number of movies an individual might see within a month. This is an example of market segmentation based on

behavioristic variables

Billabong was founded in Australia by surfer and surfboard shaper Gordon Merchant in the 1970s. Today, the brand has a strong presence and is known as a lifestyle brand for board-sports including skate, snow, and wake. Billabong has company-owned specialty stores located throughout the United States and plans to open additional outlets in the future. Billabong also markets their clothing and equipment through their website and catalog. Billabong would most likely use _______ variables as a segmentation base for its online and catalog sales but would benefit most from ______ segmentation to determine the locations for future company-owned stores.

behavioristic; geographic

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.

benefit

Tide laundry detergent offers a variety of different versions such as Tide HE Liquid, Tide Liquid with Downy fabric softener, Tide Plus Sport, and Tide with Bleach. The different variations of the product offer consumers the opportunity to fulfill a need based upon their particular circumstances and what they desire in terms of how a detergent might clean their clothes. Tide is using _____ segmentation.

benefit

A company can utilize two different methods to determine its company sales potential. The _____ method begins with the marketing manager first developing a general economic forecast for a specific time period.

breakdown

The owner of the remodeling company, Windows & More believes that sales for replacement windows, siding, sunrooms, and awnings will continue to be strong as more consumers decide to stay in their homes rather than upgrade to a larger, more expensive home. Therefore, based on the economic projections of stable levels of inflation, low to average income growth, but rising costs for some products, he forecasts his sales for the year based on these economic indicators. The owner of Windows & More is using a _______ approach to estimating sales potential.

breakdown

Martin Engineering sells conveyer belt systems and cleaning tools such as scrapers that are utilized in mining operations such as coal and mineral mining. He contacts one of his largest customers, Peabody Coal to discuss the company's needs for cleaning tools, conveyer belts, and scrapers for the next fiscal year. Martin Engineering next utilizes this information as a multiplier to calculate the amount of products that potential buyers might purchase in the next year. Martin Engineering is using a ______ approach to measure sales potential.

buildup

The _____ method to measure a company's sales potential begins by estimating how much of a product a potential buyer in a specific geographic area will purchase in a given period.

buildup

Marketers segment _____ markets according to geographic location, type of organization, customer size, and product use.

business

A basic requirement of a market is that the consumer possesses the ability to purchase the product or service. This requirement is a function of a consumer's

buying power.

Using the breakdown approach to sales potential, estimates are made _____.

by starting with general economic conditions

The Buckle, based in Kearney, Nebraska, operates approximately 500 stores across the United States and is known for its denim which they design to fit a wide variety of body shapes and preferences for style for men and women. The Buckle has forecasted that it can sell 15% of all jeans or denim sold in the United States. This percentage represents The Buckle's _________ for denim.

company sales potential

All of the following are one of the major categories of market segmentation variables except -competitive. -demographic. -behavioristic. -psychographic

competitive

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

concentrated

Justin Squires is a brand manager of a popular sports apparel and shoe company and works primarily with the running shoe product category. Justin knows that there are many different types of runners who could be a good market segment for his category. However, he prefers to use a _____ targeting strategy by implementing just one marketing mix and focusing on the elite or high-distance runner who often competes in local, regional, or national races and averages over 100 miles per week in training. This segment of runners purchases more shoes annually since shoes must be replaced every 500 miles or so and are willing to spend more money on their shoes since they are so involved with the sport.

concentrated

The ProMark Company manufactures a pencil that is about five inches long and has no eraser. It sells the product primarily to universities. What type of targeting strategy is the ProMark Company using?

concentrated

The company Patek Philippe is known for its high-quality, Swiss-made watches priced at $20,000 and above and targeted to a very upscale target market that could afford to pay $20,000 or more for a watch. The advertising for Patek Philippe's watches says "You never actually own a Patek Philippe, you merely look after it for the next generation." What type of targeting strategy does Patek Philippe utilize?

concentrated

An appropriate method of developing sales forecasts for companies with a relatively small number of customers is

customer forecasting survey

Greenview Landscaping provides full-service landscaping services for new construction and established homes. Greenview typically caters to individuals who are married, two-income earners in the family, with annual incomes over $200,000. Greenview Landscaping is using _________ variables to segment its market

demographic

Greenview Landscaping provides full-service landscaping services for new construction and established homes. Greenview typically caters to individuals who are married, two-income earners in the family, with annual incomes over $200,000. Greenview Landscaping is using _________ variables to segment its market.

demographic

Rainbow Outdoor is a family-owned business that sells play systems, basketball goals, and trampolines. They also install fence systems and tennis courts. Rainbow Outdoor has had the most success targeting families with children under the age of 15 and incomes of $100,000 or more. Rainbow Outdoor is using _________ variables to segment its market.

demographic

Secret utilized the tagline, "Strong enough for a man but made for a woman" in the early 1970s and the message is still strongly associated with the product and its line of deodorants and antiperspirants. What type of segmentation variable is Secret utilizing for its deodorant products?

demographic

A marketer that is using segmentation to reach a consumer market can select one or several variables. Which of the following correctly specifies the four major categories of segmentation variables?

demographic, behavioristic, psychographic, and geographic

PRIZM by Nielsen, is commonly used by marketers to segment by _____ variables and can also be used to segment by __________.

demographic; lifestyles

According to the text, the second step in the target market selection process is to

determine which segmentation variables to use.

The target market selection process includes five steps that should be followed sequentially. Once an organization has identified the appropriate targeting strategy and determined which segmentation variables to utilize, they would next

develop market segment profiles.

Colgate manufactures and markets several varieties of toothpaste such as Colgate Optic White Whiten & Protect, Colgate Sensitive Complete Protection, and Teenage Mutant Ninja Turtles—Mild Bubble Fruit Toothpaste to name a few. These products are designed to appeal to different markets with specific marketing mixes for each segment. Colgate is using a(n) __________ targeting strategy.

differentiated

Frito Lay's Doritos snacks appeal to a wide range of consumers for consumption in their homes, and now through a partnership with Taco Bell, Doritos brand shells under the name "Locos Tacos" are available in Taco Bell. What type of segmentation strategy is Frito Lay utilizing with the Doritos and Locos Tacos products?

differentiated

Lenovo has a variety of computer models to serve distinct consumer needs. A small tablet computer is targeted to young children, a sleek but powerful laptop is targeted to business people who frequently travel, and larger desktop models are targeted to businesses that purchase the computers for workers who use their computers at their desk in the office. What approach to market segmentation is Lenovo utilizing?

differentiated

The Cannon Mills Company markets towels and linens using the brand name, Fieldcrest. Fieldcrest is sold at a variety of retail outlets including Macy's, Target, and Bed, Bath, & Beyond. The Cannon Mills Company offers a variety of models of Fieldcrest products to appeal to customers who are interested in owning the "best" products, those that are "good" and those that are in between. For example, at Macy's the Fieldcrest Luxury bath towels sell for $15, Bed, Bath & Beyond sells the Fieldcrest Resort towels for $12 each, and Target sells the Fieldcrest Home towels for $8 each. Cannon Mills Company is most likely using a(n) ________ targeting strategy.

differentiated

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?

differentiated

When marketing managers utilize the ________ method of developing sales forecasts, intuition is heavily influenced by recent experience such that a manager may weight recent sales booms or slumps higher and result in a less accurate forecast.

executive judgment

Companies may utilize _____________ to develop sales forecasts where experts outside the firm such as economists, management consultants, advertising executives, or college professors are hired to prepare and present forecasts or answer specific questions for the firm.

expert forecasting surveys

Which of the following is an advantage of using a concentrated targeting strategy?

firms can develop a special marketing mix for a single market segment

​The target market selection process involves _______ steps. The first step is ____________, and the last step is _____________.

five; Identify the targeting strategy; Select the target market

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 ______.

geodemographic segmentation

Patagonia is a California-based manufacturer of high-quality lifestyle clothing and clothing for outdoor enthusiasts such as mountain climbers. Patagonia operates specialty stores in selective areas which are chosen due to the high concentration of individuals within the chosen market area who are most likely to purchase Patagonia products. Patagonia's stores are located near areas which have natural rock formations or proximity to National Parks where people engage in outdoor activities such as hiking, snow skiing, or climbing. What type of segmentation variable does Patagonia utilize when selecting locations for its retail outlets?

geographic

The Domino brand is a leading manufacturer of sugar and is part of the ASR Group, the world's largest refiner of cane sugar. Sugar is a staple product that most people keep on hand in their pantry for everyday use as a sweetener or baking ingredient. Domino believes its market is _______, where individuals have similar needs for the product and therefore utilizes a _________ targeting strategy as they can incorporate a single marketing mix and direct it at the entire market for their sugar products.

homogeneous; undifferentiated

The target market selection process is a five-step process and the first step is to

identify the appropriate targeting strategy.

​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 on a contract for a 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 _____.

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

Firms can divide a market according to consumer behavior toward a product which commonly involves an aspect of product use. Which of the following is an example of a behavioristic variable relating to product use?

loyalty to a brand

A consumer's stage in the family life cycle is often utilized as a segmentation variable for target marketing. Two variables are associated with family life cycle and affect consumers' needs for housing, appliances, food, automobiles, and recreational equipment. These two variables are

marital status and age of children living at home.

A group of individuals or organizations that have a desire or need for products in a product class and have the ability, willingness, and authority to purchase those products are known as a

market

A geographic variable that is often used for market segmentation refers to the number of potential customers within a unit of land area such as a square mile. This segmentation variable is called

market density.

The marketing manager for Pillsbury is attempting to determine a sales estimate for the line of products such as cinnamon rolls, pie crusts, and crescent rolls that are available in the refrigerated section of the grocery store and can be baked in the consumer's home for bakery-fresh taste and quality. The marketing manager estimates the ___________ to be $20 million annually for the category of refrigerated or frozen bakery items, while Pillsbury's _____________ is 25% of the overall market.

market potential; company sales potential

Starbucks has in-store coffee outlets in Target stores throughout the United States and Canada and also offers its extensive line of Via instant coffee and various flavors of the bottled Frappuccino beverage. Prior to the partnership and roll-out of product throughout the Target system, a _______ was conducted where several "test" stores carried the products for a limited time and Target and Starbucks could measure the actual sales to gauge the strength of the brand and opportunity for success.

market test

​People and organizations have needs and wants they seek to satisfy through the purchase of goods and services. These people and organizations represent a _____________ that marketers try to appeal to. Marketers will sometimes find it more advantageous to attempt to appeal to a subgroup of these people and organizations which is called a ________________. This subgrouping process is accomplished through the use of _______________ techniques.

market; market segment; market segmentation

Personal appearance, affiliation, status, safety, and health are examples of __________ affecting the types of products purchased and the choice of stores in which they are bought. They reflect the reasons consumers use when making a purchase.

motives

A marketing manager can utilize executive judgment as a sales forecasting method. It is most appropriate to utilize when

product demand is stable and the marketing manager has years of market-related experience.

Market segment ________ help marketers understand how a business can use its capabilities to serve potential customer groups and describes the similarities among potential customers within a segment as well as explains the differences among people and organizations in different segments.

profiles

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?

regression analysis

Sherwin Williams Company utilizes a sophisticated and mathematical approach to forecasting sales. They first utilize historical sales data incorporating a 10-year history of sales for each product category such as different brands of paint and supplies—brushes, ladders, tarps, and so on. Their sales forecasting manager uses Excel to perform _______________ where sales is the dependent variable and a variety of other factors such as company size, annual purchases, and number of years as a customer are the independent variables. The sales forecasting manager is then able to identify the relationship between the independent variables and the dependent variables to determine an accurate sales forecast.

regression analysis

The _______ is defined as the amount of product a company expects to sell during a specific period at a specified level of marketing activities.

sales forecast.

The final step in the target market selection process is to select specific target markets. When making decisions about which segments to select, a marketing manager should

sales forecast.

Ethnicity, city size, benefit expectations, brand loyalty, and personality attributes are all examples of common _________ variables used to divide a market into segments.

segmentation

L'Oreal markets several different product brands targeting specific groups of women for cosmetic and beauty aid purchases. The brand managers for each line of product have completed competitive assessments and cost estimates and are now ready to

select specific target markets

Which of the following best describes the final step in the target market selection process?

select specific target markets

Tim has just opened a CherryBerry self-serve yogurt bar in his Midwest community of 250,000 people. He's identified several market segments: families with young children, teens and young adults, active adults, and active seniors and has utilized the breakdown approach to assess the market potential or his locations' sales potential. He has also assessed the competition since the market already supports one OrangeLeaf yogurt shop and several ice cream locations such as Culver's and Baskin Robbins. In addition, Tim has developed cost estimates to develop and maintain a marketing mix that meets the wants and needs of the various segments. Now, Tim is ready to

select specific target markets.

All of the following are characteristics or requirements of a market except

the desire to make a profit on the product or service.

All of the following are true about business markets except: -the purchase may be made to use in production of another product. -the purchase may be made to resell the item -they can be known as organizational markets -the purchase is made by household members who intend to consume the product.

the purchase is made by household members who intend to consume the product

Which of the following is true about consumer markets?

the purchaser is not buying to make a profit

In general, an individual who is under 16 years of age and does not work full-time would not be considered part of the target market for photocopier machines because

they would not have the ability to purchase the product.

Carmen Santiago is a brand manager for Snap-On Tools Company and is developing a sales forecast for socket wrenches. Carmen has 10 years of sales data related to socket wrenches and notices that sales of wrenches are relatively stable with little seasonality. However, Carmen notices that sales are strongest or highest in May and June and hypothesizes the small businesses that purchase Snap-On Tools wrenches may be utilizing their income tax refunds to make equipment purchases. Carmen is most likely utilizing the _________ sales forecasting technique

time series analysis

Carmen Santiago is a brand manager for Snap-On Tools Company and is developing a sales forecast for socket wrenches. Carmen has 10 years of sales data related to socket wrenches and notices that sales of wrenches are relatively stable with little seasonality. However, Carmen notices that sales are strongest or highest in May and June and hypothesizes the small businesses that purchase Snap-On Tools wrenches may be utilizing their income tax refunds to make equipment purchases. Carmen is most likely utilizing the _________ sales forecasting technique.

time series analysis

Marketing managers may also utilize __________ to develop sales forecasts which uses the firm's historical sales data to discover a pattern or patterns in sales over time. This method assumes that past sales patterns will continue into the future.

time series analysis

Aon Insurance Company is an insurance brokerage company that caters to business markets and serves as the expert and consultant to risk managers or business owners to determine their risk profile and insurance needs. Once Aon account executives have determined a customer's needs for insurance, they contact insurance carriers to obtain a quote and then work with the customer to identify the best carrier for their company. Typically, Aon account managers are divided into teams based on the industry such as health care, education, government, or manufacturing. Aon is utilizing the ______ variable for segmenting business markets.

type of organization

Canon Business Systems specializes in office automation services, photocopiers, and printers and employs a large number of sales representatives to market its products. Typically, sales representatives are provided with a territory and become specialists according to the type of customer most appropriate to them. Canon divides its market into categories including professional services (accountants, lawyers, and consultants), health care (hospitals, physician offices, and dentists), K-12 education, higher education, corporate, and governmental. Canon is utilizing _____ segmentation for its business markets.

type of organization

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 _____.

type of organization

Stepan Chemical manufactures a high-quality chemical called a surfactant. Surfactants are utilized in a variety of other manufactured products such as shampoo, laundry detergent, dishwashing liquid, paint, adhesives, inks, and pesticides used in agriculture. Stepan uses ________ variables in marketing their surfactant products.

use of product