Test 1 Review - Chapter 6

The ability to purchase a product is a function of:

Buying power

Segmentation variables are usually grouped into four categories:

Demographic, geographic, psychographic, and behavioristic.

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is:

Determining which segmentation variables to use.

Which of the following is LEAST LIKELY to be segmented according to stages in the family life cycle?

Diet Coke

In order to be considered a market, people do NOT have:

Discretionary income to purchase the product

True/False: Lifestyle is a product-related variable.

False

True/False: There are only two basic strategies for selecting target markets: the undifferentiated targeting strategy and the concentrated targeting strategy.

False

True/False: Through market tests, a forecaster gains data regarding consumers' intended purchases.

False

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

Family life cycle

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

Family life cycle

Cosmopolitan magazine, Secret deodorant, and Eve cigarettes are all products whose marketers have used segmentation based on:

Gender

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 life cycles of the people involve extreme adventures and dangerous leisure activities. His company would MOST LIKELY find possible markets through:

Geodemographic segmentation

Systems such as PRIZIM and Acorn provide companies with lifecycle and demographic information about neighborhoods throughout the United States. This information is used to aid:

Geodemographic segmentation

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

Geographic

Zerex markets its radiator liquid as a coolant in the South and an antifreeze in the North. Which of the following segmentation variables is Zerex using?

Geographic

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?

Geographic location

The primary advantage of a concentrated targeting strategy is:

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

After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is:

developing market segment profiles.

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

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

select specific target markets.

The final step in the target market selection process is

selecting specific target markets.

Company sales forecasts are least likely to be based on

single-variable segmentation.

The most important reason that a firm might use a sales force forecasting survey to determine its sales forecast is

the sales staff is closer to the actual customers on a regular basis than anyone else in the organization.

What is the main problem with using a market test as a forecasting tool?

Expensive

True/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.

False

Family life cycles is MOST typically based on:

Marital status and age of children.

Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product?

Market tests

True/False: Surveys are sometimes used to forecast sales.

True

If PepsiCo and Coca-Cola use celebrities to challenge the taste of the other firm's cola, this is referred to as ___________ positioning.

head-to-head

The forecasting techniques that assume past sales patterns will continue into the future are all variations of

time series analysis.

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

A large number of people or organizations

Mattel views the toy market as composed of four age groupings, each with different needs and desires. Each of these groups are known as:

A market segment

Micromarketing is

A market segmentation approach in which firms focus precise marketing efforts on very small geographic markets.

Which of the following forecasting methods is least dependent on historical sales data?

A market test

A business advantage of the concentrated targeting strategy for any company is that it:

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 not a market for the product

Miller Brewing does not consider teenagers to be a part of the beer market because they lack the ________ to buy beer.

Authority

GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that different rail lines wanted engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco- Engine, and its Dash 9, suited for shortline transport. What segmentation variable is GE Transportation using to select a target market?

Benefit expectations

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

Concentrated

If Jaguar focused all its marketing efforts for the Jaguar XKR on professionals earning more than $250,000, it would be a(n) __________ strategy.

Concentrated

Interior Designs Inc. sells expensive custom-made draperies, bedding, and accessories using a single marketing mix and is therefore MOST LIKELY using a(n) _______ targeting strategy.

Concentrated

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

Concentrated or differentiated targeting

Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name. It uses the same marketing mix to reach this market. Tiffany's uses a(n) ______ strategy.

Concentrated targeting

Several conditions must exist for market segmentation to be successful. These conditions include all the following EXCEPT:

Customers' needs for the product must be homogeneous

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. Kelley's Kids is using _________ variables to segment its market.

Demographic

McDonald's uses a segmentation strategy for its sandwiches based on market characteristics such as age, gender, or income. Which of the following segmentation variables is McDonald's using?

Demographic

Occupation, family size, and family life cycle are all ___________ variables for segmenting consumer markets.

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

A targeting strategy in which organization directs its marketing efforts at several segments is called a(n) ___________ targeting strategy.

Differentiated

GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that different rail lines wanted engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco- Engine, and its Dash 9, suited for shortline transport. Which of the following targeting strategies is GE Transportation most likely using?

Differentiated

If a company markets its products to several different countries, it is using a(n) _________ targeting strategy to segment the total market.

Differentiated

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.

Differentiated

Volkswagen markets its Routan to large families, it's R32 race car to men, and it's Jetta to young singles. What targeting approach is Volkswagen using?

Differentiated

The purpose of market segmentation is to:

Divide a total market to enable a marketer to develop a more precise marketing mix.

Intuition and expediency are primary characteristics of which of the following sales forecasting methods?

Executive judgment

True/False: A differentiated targeting strategy is when the organization targets two or more markets by developing a single marketing mix.

False

True/False: A firm operating in a one-state market would not regionalize its market.

False

True/False: A firm ordinarily uses the same sales forecasting method for determining short-range and long-range sales forecasts.

False

True/False: A market segment profile deals primarily with demographic characteristics.

False

True/False: A market segment profile provides customers with an understanding of how a business can use its capabilities.

False

True/False: A marketer can use regression analysis techniques to predict the sales of new products.

False

True/False: A person who has buying power also has the authority to buy.

False

True/False: A segmentation variable is used to group smaller markets into one larger market.

False

True/False: An undifferentiated targeting strategy does not target a single market with one marketing mix.

False

True/False: Consideration of the firm's overall objectives usually does not influence the final selection of a target market segment.

False

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

False

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

False

True/False: Effective product positioning helps serve the total market by creating a concept that appeals to the general public.

False

True/False: Family life cycle is a psychological dimension used for segmenting markets.

False

True/False: Head-to-head competition is most appropriate when the product performance characteristics do not differ significantly from those of competing brands.

False

True/False: In developing a company sales forecast, the forecasting methods are limited to surveys and correlation methods.

False

True/False: It is likely that during the fifth step of the target market selection process, marketers will decide not to enter and compete in any market segments.

False

True/False: Market potential is the amount of a product that an organization could sell during a specified time period.

False

True/False: Only one variable can be used to segment a market.

False

True/False: Product positioning refers to marketers' efforts to have their brands located in the most appropriate location in stores.

False

True/False: Sales forecasts are always long-range in nature.

False

True/False: The executive judgment method of sales forecasting is very accurate in predicting future sales.

False

True/False: The information yielded by market segment profiles usually is not very useful later in the marketing process.

False

True/False: The types of surveys used to forecast sales are customer, executive, and competitor surveys.

False

Adolescents are not considered part of the market for casinos because they:

Have very little buying power

Most markets for products are made up of individuals or groups with diverse needs for products and are called _______ markets.

Heterogeneous

Toyota has learned that some people want sports cars while others want vans, trucks, sedans, and economy cars. Toyota has found its markets to be:

Heterogenous

A market in which a large portion of customers have similar needs for a product is called a(n) ________ market.

Homogeneous

The first step in the target market selection process is:

Identifying an appropriate target strategy

Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Lil' Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services. Which of the following best describes Lil' Angels' current approach to the market?

It is segmenting the market according to demographic variables.

Which of the following products is MOST LIKELY to have its market segment based on age?

Legos

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is:

Lifestyle

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?

Market density

__________ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments.

Market segment profiles

Individuals, groups, or organizations with one or more similar product needs as classified as:

Market segments

Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Lil' Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services. What method should Lil' Angels use to forecast sales in new regions?

Market test

The Sara Lee Company is attempting to forecast sales for a new ice cream cake. To come up with an accurate forecast, Sara Lee places the product in Atlanta supermarkets for a period of four months. In this instance, Sara Lee is using which forecasting method?

Market test

Retail-site location analyses, unique product offering and special advertising campaigns are all examples of the use of:

Micromarketing

The undifferentiated targeting strategy for finding a target market will likely NOT be successful if:

People within the market have heterogenous needs.

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?

Personality characteristics, motives, and lifestyles

The three most commonly used psychographic segmentation variables are:

Personality, motives, and lifestyles.

When a company is introducing a new brand in a market where it already has one or more brands, which type of product positioning is most likely to be used?

Positioning to avoid competition

Katy Ramirez is a marketer for a golf equipment manufacturer. 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

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

Segmentation

The process of dividing a total market into market groups because people within each group have relatively similar product needs is called:

Segmentation

Age, rate of product use, location, and gender are all examples of common:

Segmentation variables

Which of the following is NOT one of the major categories of consumer market segmentation variables?

Situational variables

A disadvantage of the concentrated targeting strategy is that:

The firm's financial condition is ties to a single and specialized marketing mix.

Which of the following variables would most likely be used to segment a business market?

The geographic location of the company

Why would a company use the undifferentiated strategy?

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 these statements is NOT true about business markets?

The purchase is made by more than one individual

Which of the following statements about the undifferentiated targeting strategy is FALSE?

The undifferentiated targeting strategy used multiple distribution systems to best reach individuals in the target market

Which of the following is NOT a characteristic of a consumer market?

Their purchasing decisions are always made by only one individual

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

They are difficult to measure.

Consumers that do not own dogs are not likely to be in the market for dog food because:

They do not have the need or desire to 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 have the ability to purchase such products

In an effort to forecast his firm's sales for the coming year, Henry Thompson takes sales for the last three years and calculates a growth trend. Henry is employing which forecasting method?

Time series analysis

While developing a company sales forecast at Safeway, Barb Herrington discovered a pattern in sales volume over the past five years. She likely used which sales forecasting technique?

Time series analysis

True/False: A company sales forecast is the amount of a product that a firm actually expects to sell during a specific time period.

True

True/False: A company sometimes defines a total market as its target market.

True

True/False: A firm using a concentrated targeting strategy aims its marketing activities at one segment of a market.

True

True/False: A market is a group of people who, as individuals, have needs for products in a product class and have the ability, willingness, and authority to purchase such products.

True

True/False: A market segment profile describes the similarities among potential customers within a segment and explains the differences among people across market segments.

True

True/False: A market segment profile may cover such aspects as demographic characteristics, geographic factors, product benefits sought, lifestyles, brand preferences, and usage rates.

True

True/False: A marketer is likely to use competition avoidance positioning when it is introducing a new brand into a market where it has existing brands.

True

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

True

True/False: A product can be repositioned by changing its image through promotional efforts directed at customers.

True

True/False: At times, after doing segmentation analysis, marketers in an organization decide not to enter any segments.

True

True/False: Company sales potential is the maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product.

True

True/False: Demographic characteristics are commonly used to segment a market because they are closely related to consumers' product needs and purchasing behavior.

True

True/False: In a customer survey, a marketer would question customers about the types and quantities of products they intend to buy during a specific time period.

True

True/False: Individuals' ability to buy depends on the amount of their buying power.

True

True/False: Lifestyle analysis focuses on people's activities, interests, and opinions.

True

True/False: Market segment profiles help determine the most desirable segment or segments in relation to the firm's strengths, weaknesses, objectives, and resources.

True

True/False: Motives can be used to segment markets.

True

True/False: One condition for effective segmentation is that at least one segment must have substantial profit potential.

True

True/False: One limitation of the sales force survey technique is that salespeople often believe that their sales goals are determined by their sales estimates.

True

True/False: One problem with using psychographic variables for segmentation purposes is that they are difficult to measure accurately.

True

True/False: One way marketers can segment business markets is according to their geographic location.

True

True/False: Perceptual maps are created by questioning a sample of customers about their perceptions of products, brands, or organizations, with respect to two or more dimensions.

True

True/False: Product position is customers' concept of a product's attributes relative to their concept of competitive brands.

True

True/False: Segmentation variables are characteristics of individuals, groups, or organizations in a total market.

True

True/False: The concentrated targeting strategy is one in which an organization directs its marketing efforts toward a single market segment through one marketing mix.

True

True/False: The four requirements of a market are that the individuals in the market must have a need for the product and the ability, willingness, and authority to buy it.

True

True/False: The size of the market potential places limits on the size of the company sales potential.

True

True/False: The sum of firms' marketing efforts equals industry marketing efforts.

True

True/False: The term market density refers to the number of potential customers per unit of land area, such as per square mile.

True

True/False: The two general approaches to measuring company sales potential are the breakdown and the buildup approach.

True

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

True

True/False: The ways in which customers use a particular product may be a basis for segmenting the market.

True

True/False: Trend analysis is a sales forecasting technique based on historical sales data.

True

True/False: When a firm's management is making the final selection of specific target markets to enter, it should consider whether the organization has the financial resources, managerial skills, expertise, and facilities needed to effectively compete in the selected segments.

True

True/False: When evaluating relevant market segments, cost estimates are important to determine if an organization entering a particular segment can operate at costs equal to or below those of competitors.

True

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.

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

Pills bury defines all purchasers of flour as its target market. What targeting strategy would be most appropriate in this case?

Undifferentiated

The ProMark Company manufactures and sells only one type of ballpoint pen at just one price. All this advertising is the same and is directed at the mass market. What type of targeting strategy is the ProMark Company using?

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) __________ strategy.

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

To find a target market, a firm can use the:

Undifferentiated strategy, the concentrated strategy, and the differentiated strategy.

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

Usage rate

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

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

A widely used system for classifying individuals on the basis of lifestyle is

VALS.

When a business has a relatively small number of customers, a preferred method of forecasting is

a customer forecasting survey.

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.

The sales forecasting method that consists of making a product available to buyers in one or more locations and measuring purchase response is

a market test.

Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Lil' Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services. Which of the following bases is Lil' Angels using to segment its market?

age

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.

Alli segments its diet pills based on those who have morning cravings, those who tend to overeat near the end of the day, those who need all day long appetite suppression, and those who want appetite control and more energy. This is an example of market segmentation based on variables of:

behavior.

End use, price sensitivity, and brand loyalty are all _____ variables that can be used in market segmentation.

behavioristic

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.

The division of a market according to what benefits consumers want from the product is called ______ segmentation.

benefit

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

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.

buildup

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ___________ markets.

business

Using the breakdown approach to sales potential, estimates are made:

by starting with general economic conditions.

If a company extends a line of products by introducing a new product to the market, and the firm does not distinctly position this product (i.e., separately from the other products in the line), the result could be

cannibalization.

When selecting specific target markets, a firm should

choose the segments most in line with the firm's objectives and long-term growth.

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:

company sales potential

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

company sales potential

Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Lil' Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services. Lil' Angels Kids Spa is currently using a(n)___________ targeting strategy.

concentrated

All of the following are categories of common forecasting techniques for business except

customer determined.

GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that different rail lines wanted engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco- Engine, and its Dash 9, suited for shortline transport. If a GE Transportation researcher analyzes monthly sales data for a four-year time frame, looking for periodic fluctuations, the researcher is doing a _________ analysis.

cycle

When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n)

expert forecasting survey.

GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that different rail lines wanted engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco- Engine, and its Dash 9, suited for shortline transport. Suppose that GE Transportation decided to produce only locomotive engines for rail lines in the United States. The segmentation variable then would be

geographic location.

Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in ______ segmentation.

lifestyle

GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that different rail lines wanted engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco- Engine, and its Dash 9, suited for shortline transport. Researchers at GE Transportation estimate that 1,000 rail lines throughout the world will purchase some kind of locomotive engine next year. That number represents the

market potential.

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:

market potential.

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:

market potential.

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

motives.

Pepsi wants to know where its Sierra Mist soft drink fits in with other drinks in the mind of the consumer. Marketers question a sample of consumers about Sierra Mist and other drinks on two different dimensions. They will most likely put this information into a _____ to show Sierra Mist's position.

perceptual map

All of the following statements about product positioning are true except:

product positioning is the customer's absolute perception of a product's attributes.

Soft Shave is a shaving cream aimed primarily at women. The activities and decisions involved in developing and maintaining Soft Shave's product concept in buyers' minds are called

product positioning.

Bethlehem Steel provides steel for a variety of uses to its various customers. Customers have different needs for the steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is:

product use.

Positioning a product to avoid competition may be best when the

product's performance characteristics are not significantly different from those of competing brands.

A forecasting method that predicts sales based on relationships between past sales and other variables is called

regression analysis.

The sales prediction technique based on the correlation between sales and other factors such as population density, per capita income, or family size is

regression analysis.

When evaluating market segments, assessment of competitors is important because

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.

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.

The amount of product a company expects to sell during a specific period at a specified level of marketing activity is called the

sales forecast.

In the context of marketing, cannibalization means

sales of a new product hurts sales of the company's existing products.

The buildup approach measure of sales potential

starts with forecasts about demand for a specific product within a relatively small area.

Product positioning refers to

the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds.

Relying on executive judgment for forecasting may be adequate when

the executive has considerable experience and product demand is relatively stable.

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

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

The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is

time series analysis.

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.

Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on:

use of product.