Marketing Ch.6 Practice

A market segment is _______ if marketers can reach members of the segment with customized marketing mixes. - accessible - comparable - identifiable - profitable

accessible

Eaton is targeting most of its industrial products to the _______ market and targeting its residential lighting systems to the _______ market. - consumer; consumer - business; business - business; consumer - business; residential - consumer; business

business; consumer

An advantage of the _______ strategy is that it allows a firm to specialize. - undifferentiated targeting - concentrated targeting - differentiated targeting - heterogeneous targeting

concentrated targeting

_______ places an organization in a strong position to serve customers' needs and achieve its objectives. - A segregated approach - A careful target market analysis - A concentrated approach - A sales estimate

A careful target market analysis

A buffet restaurant targets its promotions toward those who love "all-you-can-eat" meals. Its promotion targets those who desire to get more for less money and/or those who like variety in their meals. However, the company knows that many of the people who come in will not eat as much. Others, however, may eat way past the value of what they paid. The buffet has balanced this out in its pricing strategy, classifying its diners as light eaters, moderate eaters, and heavy eaters. What type of segmentation strategy is the buffet using? - Psychographic - Customer size - Behavioristic - Demographic - Benefit segmentation

Behavioristic

_______ focuses on the attributes consumers seek and what they expect from a good or service. - Psychographic segmentation - Geodemographic segmentation - Demographic segmentation - Benefit segmentation

Benefit segmentation

Suppose a marketing manager at Mistine wants to determine the company's market potential. They first estimate how many cosmetic products potential buyers will purchase in their sales territory during a given period. They multiply that amount by the total number of potential buyers in that area and then perform the same calculations in the other territories in which Mistine operates. They then add together the totals to get the company's market potential. What type of approach is the marketing manager using? - Cost estimates - Breakdown approach - Buildup approach - Executive judgment - Competitive assessment

Buildup approach

Which of the following food products would most likely use an undifferentiated marketing strategy? - Corn - Hot sauce - Coffee - Soy milk - Pizza

Corn

Which of the following is calculated during the fourth step of the target market selection process, evaluating relevant market segments? - Cost estimates - Regression analysis - Target market selection - Micromarketing - Market segmentation

Cost estimates

At what stage of the target market selection process is the marketer first likely to unveil information that makes a segment less attractive than previously thought? - Develop market segment profiles - Identify the appropriate targeting strategy - Evaluate relevant market segments - Select specific target markets - Determine which segmentation variables to use

Develop market segment profiles

Mistine is a direct-selling cosmetics firm based in Thailand. Originally, it made a name for itself by selling an affordable product that was of good quality. It focused mainly on housewives. However, over the years Mistine has expanded its focus, targeting more groups such as teenagers and higher-income women. Unlike many comparable direct-selling firms, Mistine engages in much advertising. Its advertising campaigns must be tailored toward the appropriate target market. What type of segmentation strategy is Mistine using? - Heterogeneous targeting strategy - Concentrated targeting strategy - Undifferentiated targeting strategy - Homogenous targeting strategy - Differentiated targeting strategy

Differentiated targeting strategy

Which of the following is the fourth step of the target market selection process? - Evaluate relevant market segments - Determine which segmentation variables to use - Develop market segment profiles - Select specific target markets

Evaluate relevant market segments

Which of the following would be a cost-effective, fairly accurate way of coming up with a sales forecast if product demand is relatively stable and managers at the firm have a long tenure in the field? - Customer forecasting survey - Regression analysis - Executive judgment - Time series analysis - Market tests

Executive judgment

Which of the following is a market composed of individuals or organizations with diverse product needs? - Undifferentiated market - Heterogeneous market - Homogeneous market - Concentrated market

Heterogeneous market

Which of the following is the first step of the target market selection process? - Determine which segmentation variables to use - Identify the appropriate targeting strategy - Develop market segment profiles - Select specific target markets - Evaluate relevant market segments

Identify the appropriate targeting strategy

Demographic segmentation uses which of the following bases? (Select three) - Personality - Income - Region - Gender - Family life cycle

Income Gender Family life cycle

Which of the following statements about sales estimates is correct? - Market potential places absolute limits on company sales potential. - In the buildup approach, the marketing manager first develops a general economic forecast for a specific time period. - Market potential is the maximum percentage share of a market that an individual firm within an industry can expect to capture for a specific product. - Competitive efforts have little influence over company sales potential. Industry-wide marketing activities directly impact the company's sales potential.

Market potential places absolute limits on company sales potential.

Assume that Mistine wants to break into the Kenyan market. It is entering the market for the first time and is unsure about how successful its products will be. Mistine's management team wants to develop a sales forecast for the area. Which of the following would be most appropriate in terms of accuracy? - Executive judgment - Surveys - Time series analysis - Regression analysis - Market tests

Market tests

On Eaton's website, the firm segments its product offerings as aerospace, filtration, hybrid power, electrical, hydraulics, industrial clutches and brakes, plastic extrusion, and vehicle. What type of segmentation strategy has Eaton most likely adopted? - Benefit segmentation - Customer size - Type of organization - Product use - Lifestyle

Product use

Angel wants to become a successful brewer. He analyzes the target market for beer and finds that there is a market niche for gluten-free beer. Angel considers the types of markets he can target with his beer. He knows that many people perceive gluten as unhealthy and might be inclined to buy his beer due to its gluten-free nature. However, he also knows there is a strong demand among those who suffer from Celiac disease. After doing sales and cost estimates, Angel feels ready to make a decision. Angel is segmenting the market based on what type of segmentation variable? - Demographic variables - Psychographic variables - Benefit segmentation - Behavioristic variables - Geographic variables

Psychographic variables

At what stage of the target market selection process is management likely to investigate whether the organization has sufficient financial resources, managerial skills, employee expertise, and facilities to compete effectively in selected segments? - Select specific target markets - Evaluate relevant market segments - Develop market segment profiles - Identify the appropriate targeting strategy - Determine which segmentation variables to use

Select specific target markets

Angel wants to become a successful brewer. He analyzes the target market for beer and finds that there is a market niche for gluten-free beer. Angel considers the types of markets he can target with his beer. He knows that many people perceive gluten as unhealthy and might be inclined to buy his beer due to its gluten-free nature. However, he also knows there is a strong demand among those who suffer from Celiac disease. After doing sales and cost estimates, Angel feels ready to make a decision. In making his decision, Angel is at what stage in the target market selection process? - Developing market segment profiles - Determining which segmentation variables to use - Evaluating relevant market segments - Selecting specific target markets - Identifying the appropriate targeting strategy

Selecting specific target markets

A market must have which of the following characteristics? (Select three) - The ability and willingness to buy - Needs and wants - Unique demands - People or organizations

The ability and willingness to buy Needs and wants People or organizations

Which of the following does a firm consider when selecting a specific target market? (Select three) - The firm must examine long-term versus short-term growth in each segment. - The firm must analyze its ability to compete in selected segments by understanding the organization's financial resources, managerial skills, employee expertise, and facilities. - The firm must consider if the requirements of any segment might conflict with the organization's overall objectives. - The firm must analyze all of the segments to identify short-term sales potential.

The firm must examine long-term versus short-term growth in each segment. The firm must analyze its ability to compete in selected segments by understanding the organization's financial resources, managerial skills, employee expertise, and facilities. The firm must consider if the requirements of any segment might conflict with the organization's overall objectives.

Taye works at a retail store that sells a variety of items, including umbrellas. Taye knows that people buy umbrellas more in the summer season because of the higher frequency of storms. He has identified a formula based on past umbrella sales during the summer season. Taye believes he can use this formula to predict future sales forecasts with a high degree of accuracy. This is an example of what type of sales forecast? - Surveys - Market tests - Regression analysis - Executive judgment - Time series analysis

Time series analysis

Which of the following sales forecast methods uses historical sales data to discover a pattern in sales over time? - Surveys - Executive judgment - Regression analysis - Time series analysis

Time series analysis

Cynthia is in charge of strategic planning at an engineering firm in Arizona that installs transmission lines and works with the electrical systems of buildings. Mostly her firm has worked with cities such as Tucson and Phoenix. Once in a while, they will receive a major project from the state, such as renovating a government building in the capital. However, Cynthia's firm wants to expand its target market beyond government projects. Under her direction, the marketing team launched an initiative to target more potential clients in different areas. Two areas in which Cynthia would like to expand include colleges and large for-profit businesses. How is Cynthia's company segmenting the market for its services? - Product use - Type of organization - Geographic location - Demographic - Customer size

Type of organization

Tailoring marketing mixes to the organizations' unique needs is based on which company characteristic? - Product use - Customer size - Type of organization - Demographics

Type of organization

Estimating how much of a product a potential buyer in a specific geographic area will purchase in a given period is known as ________. - breakeven approach - buildup approach - SWOT analysis - breakdown approach

buildup approach

A consumer market _______. -consists of individuals or groups that purchase a specific kind of product for resale -consists of purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make a profit or serve an organizational need - is a group of people with different needs that are responsive to one, singular product - consists of individuals or groups that purchase a product for direct use in producing other product

consists of purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make a profit or serve an organizational need

When a company targets several different market segments and creates a different marketing mix for each segment, they are using _______. - concentrated targeting - undifferentiated targeting - differentiated targeting - heterogeneous targeting

differentiated targeting

When a company targets several different market segments and creates a different marketing mix for each segment, they are using _______. - concentrated targeting - undifferentiated targeting - differentiated targeting - heterogeneous targeting

differentiated targeting

The total amount of products that customers will purchase within a specified period at a specific level of industry-wide marketing activity is best described as _______. - market potential - buildup approach - company sales potential - breakdown approach

market potential

An undifferentiated targeting strategy uses market segmentation.

no

Assume that Angel decides that he wants to specifically target those who suffer from celiac disease. Although he realizes that many consumers avoid gluten simply for health reasons, he believes putting his marketing muscle behind a marketing strategy that would target one specific market segment is the way to go. Angel is adopting a differentiated targeting strategy.

no

Marketers use market segment profiles to assess the degree to which their products fit potential customers' _______. - product needs - type of business - demographics - psychographic profiles

product needs

Dividing a market into segments based on the various ways to use a product is known as ________. - type of organization - demographics - product use - customer size

product use

A market segment that has enough profit potential to justify developing and maintaining a special marketing mix is said to be _______. - accessible - identifiable - profitable - comparable

profitable

When marketing managers look for a relationship between past sales and one or more independent variables, such as population, per capita income, or gross domestic product, they are engaging in _______. - market tests - regression analysis - forecasting surveys - executive judgment

regression analysis

The characteristics of consumers and organizations that marketers use to divide a market into segments are known as _______. - market density - demographics - city size - segmentation variables

segmentation variables

The first of two major components of developing a marketing strategy is to _______. - determine a segmentation strategy - develop a product - perform a business analysis - perform sales analyses - select a target market

select a target market

The first of two major components of developing a marketing strategy is to _______. - select a target market - determine a segmentation strategy - perform sales analysis - develop a product

select a target market

When a company uses a single marketing mix to target all customers, it is utilizing _______. - undifferentiated targeting - concentrated targeting - homogeneous targeting - differentiated targeting

undifferentiated targeting

A customer forecasting survey may be useful to a business with relatively few customers.

yes

Geodemographic segmentation allows marketers to focus precise marketing efforts on very small geographic markets, such as community and even individual neighborhoods.

yes