MKTG 409 Chapter 6

The chief advantage of the ______ is that it allows the firm to specialize in satisfying the needs and characteristics of a specific customer group.

concentrated targeting strategy

Marketers use market segment profiles to asses the degree to which their products fit potential customers______________.

product needs

Teenagers are not part of the market for alcohol because they do not have__________.

the AUTHORITY to buy alcohol

You have just been promoted to vice president of marketing for your firm. Unlike your predecessor, you believe the firm can increase its sales in a market by focusing on more than one segment of the market. You recognize to do this means your firm will incur higher production costs. Based on this information, which of the following targeting strategies are you advocating?

A differentiated targeting strategy

Both you and your roommate are avid Internet and social media users. You both spend about 4 hours a day interacting with the Internet and social media users. Your roommate likes post on sites like Facebook throughout the day. In fact, she is a member of just about every social media site on the Web. Your interest is more geared towards regularly communicating with any and every one via Twitter. Which of the following statements is true regarding you and your roommates use of the Internet

According to the Social Technologies Profile, you are a "Conversationalist" and your roommate is a "Joiner".

If you purchase an iPad for taking notes in school and to watch videos, you are part of which of the following?

B2C market

Your firm's finance department has just issued new guidelines for how market segments are to be evaluated based on sales expectations. In general, the new guidelines require the marketers to measure company sales potential based on a general economic forecast for a time period. Which one of the following types of market segment evaluation approaches is the finance department advocating?

Breakdown approach

Your firms finance department has just issued new guidelines for how market segments are to be evaluates based on sales expectations. In general, the new guidelines require the marketers to measure company sales potential based on a general economic forecast for a time period. Which one of the following types of market segment evaluation approaches is the finance department advocating?

Breakdown approach

_________ are people who gather information and organize content generated by critics and creators.

Collectors

Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATV's. It also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and southern states. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the midwestern states, while dealers who sell to small business landscaping companies tend to be located in the northeastern states. Company executives are considering expansion of its distribution to markets in the midwest. When Precision Brake sells to the individual dealers, they would be considered which of the following business types?

Consumers

If your firm uses a ____________ targeting strategy, you can expect to need____________ production processes to support the strategy.

Differentiated; more

Your firm's finance department has just issued new guidelines for how market segments are to be evaluates based on sales expectations. In general, the new guidelines require the marketers to measure company sales potential based on a general economic forecast for a time period. Which one of the following types of market segment evaluation approaches is the finance department advocating?

Economic Analysis approach

According to the___________ legislation highlighted in the film, Black Money, Prince Bandar of Saudi Arabia could not be prosecuted under U.S. law for his role in the Al-Yamamah deal.

FCPA

Your marketing team is having a brainstorming session to finalize your target marketing strategy. To make sure all team members are on the same page you make the following statement to keep the discussions focused: If we determine that the needs of the customers we are targeting are____________, then we need to pursue a __________ targeting strategy.

Homogeneous; Undifferentiated

Which of the following is the first step in the target market selection process?

Identify the appropriate targeting strategy

The internet makes it possible for the marketer to communicate with consumers more effectively and more consistently at a lower cost than previously possible. Moreover, the Internet has made it possible for marketers to reach new markets and to target existing markets more precisely. Digital media is the foundation of the marketer's new found power via the Internet. Digital media-based marketing is different than traditional marketing in which of the following ways?

Interactivity

What level of commitment in international marketing may be most attractive when the political and economic stability of a foreign country is questionable?

Licensing

______________- is a useful sales forecasting method as long as a precise relationship between past sales figures and one or more variables can be established. Without these relationships, this method is useless in forecasting future sales.

Regression Analysis

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? a) Surveys b) Executive judgment c) Time series analysis d) Market tests e) Regression analysis

Regression analysis

_______________ is a useful sales forecasting method as long as a precise relationship between past sales figures and one or more variables can be established. Without these relationships, this method is useless in forecasting future sales.

Regression analysis

Market segment profiles are used to describe ____________ members of a market segment, and to explain_____________ members in separate market segments.

Similarities among; differences between

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

The geographic location of the company

Which of the following statements about market segment profiles is true?

They are used to describe differences among people in different market segments

DeShon has just become the new market analyst for a company that produces vinyl for homes. In an effort to forecast his firm's sales for the coming year, he needs to find where the greatest opportunities are for selling his product. DeShon looks at the sale for the last five years and calculates a growth trend. He then collects data from a combination of other factors, such as population density, family size, home ownership, and per capita income. Finally, DeShon looks at the correlation between the sales trend data and the various combination of demographic data. Design is employing the ___forecasting method for the sales growth trend and the ___ method for the correlation

Time Series Anaylsis; regression analysis

JCPenney's website encourages visitors to register in order to maximize their use of the site. By gathering information about a consumer before a purchase is made, JCPenney is practicing

addressability

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

When a marketing manager estimates how much of a product a potential buyer in a specific geographic area will purchase in a given period, she is employing the________________.

buildup approach

When selecting specific target markets, a firm should

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

_____________ usually constitute a smaller part of the online population than the other groups

collectors

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

customer forecasting survey

When marketers use age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, and/or social class to segment consumer markets, they are using___________.

demographic variables

Segmentation variables are usually grouped into four categories:

demographic, geographic, psychographic, and behavioristic

Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics?

description

If a furniture maker targets the consumer and business markets for office desks with separate marketing mixes for each, it is using the_______________.

differentiated strategy

Mattel views the toy market as composed of four age groupings, each with different needs and desires. Mattel is using a(n)_____________ targeting strategy for its groups, which are known as_______________.

differentiated; market segments

KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu -- items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries -- to offer the customer passing by a preliminary view of their product. KFC's establishment of international production/processing facilities is an example of

direct ownership

ACME Corp. divides its markets into segments based on the part of the U.S. in which the business customer operates. This illustrates segmentation based on____________.

geographic location

Mia is pet-sitting for a friend's dog while he is on vacation. Her friend has given Mia all sorts of information, including the veterinarian's name and phone number, pet emergency center location, and the dog's favorite bedtime snack. The first evening of the vacation, Mia realizes that her friend did not bring the dog's food over, and she has no idea what the dog eats. Her friend's cell phone is "out of range" at the moment, so Mia must go to the grocery store and shop for dog food, even though she has never bought it before now. In this case, even though Mia is not a dog owner, she is likely to be part of the market for dog food for all of the following reasons except _______.

her ability to purchase the dog food is questionable

Geographic segmentation allows marketers to engage in micromarketing, which________________.

involves focusing precise marketing efforts on very small geographic markets, such as community and even individual neighborhoods

Any group of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to buy such products is a(n)

market

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. The figure represents the industry's

market potential

The total amount of product that customers will purchase within a specified period at a specific level of industry-wide marketing activity is best described as_____________

market potential

Use the following to answer the questions. 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 various rail lines wanted different types of 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. Refeer to Scenario 6.2. 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

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 a) geographic location. b) customer size. c) product use. d) customer importance. e) organization classification.

product use

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____________.

regression analysis

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

Which of the following products is most likely to be marketed, using an undifferentiated approach?

seasoning salt

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 a) determine which segmentation variables to use. b) develop market segment profiles. c) identify the appropriate targeting strategy. d) select specific target markets. e) develop sales forecasts.

select specific target markets

Dave is an owner and manager of three apartment buildings in northern Minnesota. During an exceptionally hot summer the temperatures soared and the toll on the window air conditioners was too much. Seventeen of them have broken down already, and more are probably going to have to be replaced. He has a total of seventy-five apartment units. Dave is now in the process of deciding how to repair the air conditioning. Should he buy new window units for all the buildings, or should he install central air conditioning? What type of decision is Dave facing?

situational involvement and extended decision making

Marketing managers at ACME Corp. have had experts create initial forecasts, averaged their results, and then returned the averages to the experts to refine their individual forecasts. This best describes________________.

the Delphi technique

A disadvantage of the concentrated targeting strategy is that

the firm's financial condition is tied to a single and specialized marketing mix

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

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

time series analysis

Which of the following sales forecast methods uses historical sales data to discover a pattern in sales over time?

time series analysis

If segmentation analysis shows that customer needs are essentially homogenous, what action may be most appropriate?

undifferentiated approach

A large proportion of customers in the total market must be homogenous in order to effectively use a(n) ______________.

undifferentiated strategy

When using personality characteristics as a market segmentation variable, marketers generally a) conduct personality assessments of their potential target market to determine which personality characteristics they possess. b) use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have. c) use generic characteristics that all members of the population have. d) use a positively viewed characteristic they assume much of their target market has or would like to have. e) conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have.

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) conduct personality assessments of their potential target market to determine which personality characteristics they possess. b) use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have. c) use generic characteristics that all members of the population have. d) use a positively viewed characteristic they assume much of their target market has or would like to have. e) conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have.

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

Prodigy Placement is a private elementary school located in the center of Manhattan. Students at the school are considered in the top 1% of their age group in terms of IQ scores and aptitude. Parents who want to send their children to the school must get on a waiting list as soon as the child is 12 months old and must make a deposit of $5,000 to the school in order to hold the child's "application" until they reach the age of 5 years. Emma's parents put her on the waiting list at the age of 1 year and paid the deposit; however, when Emma became five years old, she did not want to attend the school even though she tested above the requirement. Her parents made the decision to enroll her for the upcoming school year. In this case, Emma ___ part of the market for Prodigy Placement, and her parents ____ part of the market a. was; were; because Emma needed to attend school. b. was; were; because Emma had the authority to attend the school. c. was; were; because they had the authority. d. was not; were; because Emma lacked the desire. e. was not; were; because Emma lacked willingness.

was not; were; because emma lacked the desire