Chapter 6 - Target Markets: Segmentation, Evaluation, and Positioning

The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is the regression method. customer forecasting. a market test. sales force forecasting. time series analysis.

time series analysis

The forecasting techniques that assume past sales patterns will continue into the future are all variations of regression analysis. random factor analysis. seasonal analysis. time series analysis. past sales forecasting surveys

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 geographic location. type of organization. secondary product use. customer size. market potential.

type of organization.

Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on customer size. psychographics. demographics. use of product. geographic location.

use of product

Which of the following forecasting methods is least dependent on historical sales data? Regression analysis Trend analysis Time series analysis Cycle analysis A market test

A market test

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? Demographic Psychographic Life cycle Geographic Product use

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? Religion Geographic location Income Political views Ethnicity

Geographic location

Which of the following products is most likely to have its market segment based on age? Bass shoes Lipton Iced Tea Bic pens Legos Carpet

Legos

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? Sales force survey Time series analysis Correlation method Market test Regression analysis

Market Test

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? Micromarketing Population Market density MSA PMSA

Market density

__________ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments. Market segmentation variables Market segment profiles Segmentation grids Market differentiation indexes Market concentrations

Market segment profiles

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? Time series analysis Market test Executive judgment Regression analysis Survey

Market test

Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product? Executive judgment Customer surveys Time series analysis Market tests Regression methods

Market tests

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 Head-to-head competition Parallel positioning Segmented positioning Counter positioning

Positioning to avoid competition

A disadvantage of the concentrated targeting strategy is that a) the firm's financial condition is tied to a single and specialized marketing mix. b) large sales volumes cannot be generated. c) production costs may be higher than with other strategies. d) marketing personnel may become dissatisfied with the limited opportunities provided by this approach. e) marketing costs are often higher than for other strategies.

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

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? Demographic Benefit expectations Income Volume usage Psychographic

Benefit expectation

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 Geographic Psychographic Product-related Education

Demographic

Which of the following products is least likely to be segmented according to stages in the family life cycle? Single-family homes Ford automobiles European vacations Diet Coke General Electric appliances

Diet Coke

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? Undifferentiated Differentiated Concentrated Selective Market diffusion

Differentiated

Intuition and expediency are primary characteristics of which of the following sales forecasting methods? Surveys Executive judgment Cycle analysis Market tests Industry indicators

Executive judgment

What is the main problem with using a market test as a forecasting tool? Difficult to interpret Expensive Inaccurate Unacceptable to consumers Overused

Expensive

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? Surveys Executive judgment Time series analysis Market tests Regression analysis

Regression analysis

Which of the following is not one of the major categories of consumer market segmentation variables? Demographic characteristics Geographic variables Psychographic dimensions Situational variables Behavioristic characteristics

Situational variables

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 Executive judgment Surveys Regression analysis Market tests

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? Surveys Executive judgment Time series analysis Market tests Regression analysis

Time series analysis

Which of the following is an example of a behavioristic segmentation variable? Family size Climate Age Usage rate Personality characteristics

Usage rate

A widely used system for classifying individuals on the basis of lifestyle is VALS. PRIZM. CMSA. LIFO. Prospect Zone.

VALS

When a business has a relatively small number of customers, a preferred method of forecasting is regression analysis. trend analysis. the Delphi technique. a market test. a customer forecasting survey

a customer forecasting survey

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. regression analysis. trend analysis. a survey. the Delphi technique.

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 best describes Lil' Angels' current approach to the market? a) It is segmenting the market according to demographic variables. b) It is segmenting the market according to product-related variables. c) It has chosen a segment that is not identifiable and divisible. d) Its market is impossible to reach because of legal constraints. e) It is not segmenting the market but is attempting to reach everyone with the product.

a) It is segmenting the market according to demographic variables.

Micromarketing is a) a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets. b) developing a very specific marketing mix that will effectively meet the needs of only a small segment of the market. c) marketing efforts that are tightly controlled by high-level executives in the organization. d) a way to segment the market to meet the needs of individuals with the same motives and personality attributes. e) creating advertising that is so specific to a certain type of individual that few people outside that micromarket will respond to the message.

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

The ability to purchase a product is a function of a) buying power. b) desire. c) willingness. d) authority. e) needs.

a) buying power.

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. a) concentrated b) differentiated c) exclusive d) focused e) undifferentiated

a) concentrated

When markets are comprised of people with differing product needs, the marketing manager should use a(n) ___________ strategy a) concentrated or differentiated targeting b) market-intensive c) integrated d) product-oriented e) undifferentiated

a) concentrated or differentiated targeting

A targeting strategy in which an organization directs its marketing efforts at several segments is called a(n) ___________ targeting strategy. differentiated total market concentrated undifferentiated integrated

a) differentiated

Adolescents are not considered part of the market for casinos because they a) have very little buying power. b) do not have the desire to gamble. c) are not willing to spend their money on gambling. d) cannot afford to gamble their savings. e) not have the authority to gamble.

a) have very little buying power.

Toyota has learned that some people want sports cars, while others want vans, trucks, sedans, and economy cars. In this instance, Toyota has found its markets to be a) heterogeneous. b) undifferentiated. c) concentrated. d) homogeneous. e) focused.

a) heterogeneous

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as a) market segments. b) heterogeneous markets. c) concentrated markets. d) demographic segments. e) strategic segments.

a) market segments

The process of dividing a total market into market groups because people within each group have relatively similar product needs is called a) segmentation. b) diversification. c) target marketing. d) concentration. e) customization.

a) segmentation

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. a) undifferentiated b) differentiated c) product strategy d) cost-benefit e) demographic

a) 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 a) undifferentiated b) differentiated c) segmented d) concentrated e) heterogeneous

a) undifferentiated

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? behavioristic frequency of use age income family life cycle

age

Which of the following is not a requirement or characteristic of a market? a) The ability to purchase a product b) A large number of people or organizations c) The authority to buy a product d) The willingness to use buying power e) The need for a specific product in a specific product category

b) A large number of people or organizations

Which of the following variables would most likely be used to segment a business market? a) An attitude of the company's CEO b) The geographic location of the company c) The lifestyle of the company's buying agent d) Net income generated by the company e) Common opinions of the company's employees

b) The geographic location of the company

Company sales forecasts are least likely to be based on executive judgment. customer surveys or sales force surveys. time series analysis. market tests. single-variable segmentation.

single-variable segmentation.

Which of the following is the biggest drawback to using psychographic variables? a) They are not strongly reflective of consumer behavior. b) They are difficult to measure. c) They give poor information about consumer needs. d) They do not reflect socioeconomic characteristics of consumers. e) The resulting segments are difficult to be reached.

b) They are difficult to measure.

The ProMark Company manufactures and sells only one type of ballpoint pen at just one price. All its advertising is the same and is directed at the mass market. What type of targeting strategy is the ProMark Company using? a) Extensive b) Undifferentiated c) Concentrated d) Intensive e) Differentiated

b) Undifferentiated

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to a) allow an opportunity to obtain diverse expert opinions. b) allow experts to work separately to reach a consensus as to their forecasts. c) reach an accurate sales forecast through the use of multiple sales forecasting techniques. d) determine if the expert forecasting survey is superior to regression analysis. e) assess the extent to which this year's sales forecast is more accurate than that of previous years.

b) allow experts to work separately to reach a consensus as to their forecasts.

When selecting specific target markets, a firm should a) revert to an undifferentiated approach if the market is deemed heterogeneous. b) choose the segments most in line with the firm's objectives and long-term growth. c) choose all segments that are determined to be profitable for the organization. d) choose the minimum number of segments necessary to achieve company sales potential. e) pick the segments with the best sales forecasts for the upcoming period of time.

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

Several conditions must exist for market segmentation to be successful. These conditions include all of the following except a) the total market should be divided so that segments can be compared on sales potential, costs, and profits. b) customers' needs for the product must be homogeneous. c) the company must be able to reach the chosen segment with a particular marketing mix. d) segments must be identifiable and divisible. c) at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment.

b) customers' needs for the product must be homogeneous.

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. a) multiuse b) differentiated c) stratified d) undifferentiated e) concentrated

b) differentiated

The purpose of market segmentation is to a) differentiate products. b) divide a total market to enable a marketer to develop a more precise marketing mix. c) reduce the overall cost of marketing activities. d) identify a single marketing mix that will be satisfactory for the general market. e) meet the needs of homogeneous markets.

b) divide a total market to enable a marketer to develop a more precise marketing mix.

The primary advantage of a concentrated targeting strategy is a) it meets the needs of a wide range of consumers. b) it allows a firm to specialize to meet specific customer needs. c) it is more flexible than any other approach. d) it is the least risky targeting approach. e) its customers are the most willing to repurchase the same brands.

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

All of the following statements about product positioning are true except a) product positioning decisions are not only for new products. b) product positioning is the customer's absolute perception of a product's attributes. c) effective product positioning helps serve a specific market segment by creating an appropriate concept in the minds of customers in that market segment. d) product positioning is concerned with creating and maintaining a certain concept of the firm's product in customers' minds. e) when marketers position a product, they try to position it so that it seems to possess the characteristics the target market desires.

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

In the context of marketing, cannibalization means a) one company eating up another company's market share. b) sales of a new product hurts sales of the company's existing products. c) a product is past its prime and should be deleted from the product mix. d) a company illegally uses copyrights and patents from another company. e) sales of a new product may exceed sales of an older, more established product.

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

Which of these statements is not true about business markets? a) the purchase may be made to resell the item b) the purchase is always made by more than one individual c) the purchase may be made to use in general daily operations d) the purchase may be made to use in production of another product e) they can also be referred to as organizational markets

b) the purchase is always made by more than one individual

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. a) directed b) undifferentiated c) segmented d) differentiated e) product-use

b) undifferentiated

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 demographics. lifestyles. psychographics. behavior. personality characteristics.

behavior

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. benefits. lifestyles. psychographic variables. demographic variables.

behavioristic variables.

The division of a market according to what benefits consumers want from the product is called ______ segmentation. behavioristic product usage benefit end-purpose advantage

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 recessionary buildup pyramid dimensional

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. multivariable use of product breakdown regression buildup

buildup

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ___________ markets. consumer business government international most target

business

Volkswagen markets its Routan to large families, its R32 race car to men, and its Jetta to young singles. What targeting approach is Volkswagen using? a) Concentrated b) Strategic c) Differentiated d) Undifferentiated e) Multisegmented

c) Differentiated

Why would a company use the undifferentiated strategy? a) The needs of individual consumers are dissimilar, and distinctive marketing mixes are required to satisfy them. b) The undifferentiated strategy is the one strategy that provides maximum satisfaction to the whole market. c) 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. d) The undifferentiated strategy is expensive to implement but tends to produce the most sales. e) The undifferentiated strategy requires less time and fewer resources.

c) 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.

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) an undifferentiated market. b) heterogeneous. c) a market segment. d) a marketing mix. e) a concentrated market.

c) a market segment.

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is a) determining the demographic variables of the target market. b) developing market segment profiles. c) determining which segmentation variables to use. d) selecting specific target markets. e) evaluating relevant market segments.

c) determining which segmentation variables to use.

In order to be considered a market, people do not have to have a) a need or desire for a particular product. b) the ability to purchase the product. c) discretionary income to purchase the product. d) the willingness to use their buying power. e)the authority to buy the specific products.

c) discretionary income to purchase the product.

A market in which a large proportion of customers have similar needs for a product is called a(n) _____ market. a) undifferentiated b) heterogeneous c) homogenous d) differentiated e) concentrated

c) homogenous

The first step in the target market selection process is a) determining which segmentation variables to use. b) selecting specific target markets. c) identifying an appropriate targeting strategy. d) evaluating relevant market segments. e) developing market segment profiles.

c) identifying an appropriate targeting strategy.

The undifferentiated targeting strategy for finding a target market will likely not be successful if a) product positioning is needed. b) the firm defines the total market as its target market. c) people within the market have heterogeneous needs. d) people within the market have homogeneous needs. e) the firm is capable of developing a single marketing mix that satisfies all people's needs.

c) people within the market have heterogeneous needs.

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.

c) product use.

When evaluating market segments, assessment of competitors is important because a) it is difficult to segment a market when it has multiple competitors. b) an absence of competitors usually creates difficulties in accurately measuring segment sales potential. c) 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. d) a competitive analysis may lead to confusion as to who are the key competitors. e) competition is generally not a major problem as long as a marketer is aware of it.

c) 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.

The buildup approach measure of sales potential a) starts with broad estimates of general economic activity. b) ends with an estimate of a single firm's sales of a specific product. c) starts with forecasts about demand for a specific product within a relatively small area. d) does not use sales estimates. e) is seldom employed by industrial firms.

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

Generally speaking, individuals who are unemployed would not be considered a target market for Mercedes or other luxury European import sedans because a) they would not desire such products. b) they would not be willing to purchase such products. c) they would not have the ability to purchase such products. d) such markets are narrowly defined geographically. e) they are not authorized to purchase such products.

c) they would not have the ability to purchase such products.

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 poor product positioning. product deletion. product repositioning. cannibalization. new-product development.

cannibalization

The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the sales forecast. market potential. company sales potential. company sales objective. market share goal.

company sales potential.

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 target growth rate. sales forecast. sales objective. company sales potential. market potential.

company's 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. undifferentiated exclusive concentrated differentiated selective

concentrated

All of the following are categories of common forecasting techniques for business except surveys. time series analysis. customer determined. executive judgment. market tests.

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. trend seasonal cycle random factor regression

cycle

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? a) Geographic location of customers b) Age, sex, and socioeconomic characteristics c) Social class variables d) Personality characteristics, motives, and lifestyles e) Family life cycle, social class, and religion

d) Personality characteristics, motives, and lifestyles

Which of the following statements about the undifferentiated targeting strategy is false? a) The undifferentiated targeting strategy should be used when the needs of individual customers are similar. b) The undifferentiated targeting strategy uses one promotional program aimed at everyone in the target market. c) The undifferentiated targeting strategy is good for use with staple items, such as sugar and salt. d) The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market. e) The opposite of the undifferentiated targeting strategy is the differentiated targeting strategy.

d) The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market.

Pillsbury defines all purchasers of flour as its target market. What targeting strategy would be most appropriate in this case? a) Concentrated b) Differentiated c) Wide appeal d) Undifferentiated e) Clustered

d) Undifferentiated

When marketing research shows that a group of people does not desire a particular product, the people in that group a) are a market. b) do not have the ability to purchase the product. c) do not have the authority to purchase the product. d) are not a market for the product. e) are a market but will not purchase the product.

d) 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. a) money b) desire c) interest d) authority e) willingness

d) authority

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) _____ strategy. a) selective b) focused c) differentiated d) concentrated e) undifferentiated

d) concentrated

If Jaguar focused all its marketing efforts for the new Jaguar XKR on professionals earning more than $250,000, it would be using a(n) ___________ strategy. a)homogeneous b) undifferentiated c) multisegmented d) concentrated e) stratified

d) concentrated

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.

d) select specific target markets.

The final step in the target market selection process is a) implementing the appropriate marketing mix for the target market. b) evaluating relative market segments. c) eliminating market segments that are cost prohibitive. d) selecting specific target markets. e) revising the final segmentation variables based on target selection.

d) selecting specific target markets.

Product positioning refers to a) the area in retail stores in which the manufacturer strives to position its products. b) product price but not to product image. c) product image but not to product price. d) the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds. e) the length of time a product has survived in the market.

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

Estimating the cost of entering a market and focusing on a specific target segment is important because a) cost estimates are crucial to estimating sales potential accurately. b) higher costs will keep other potential competitors from entering that particular segment. c) customers are more likely to be attracted to marketers that invest heavily in the target segment. d) the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs. e) higher cost generally ensures long-term success.

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

Which of the following is not a characteristic of a consumer market? a) it consists of purchasers who intend to consume or benefit from the purchased products b) they do not buy products for the main purpose of making a profit c) they are sometimes referred to as B2C markets d) their purchasing decisions are always made by only one individual e) each of us belongs to numerous markets of this type

d) their purchasing decisions are always made by only one individual

Consumers that do not own dogs are not likely to be in the market for dog food because a) they lack the authority to purchase the dog food. b) they do not possess the buying power for purchasing dog food. c) their ability to purchase the dog food is questionable. d) they do not have the need or desire for dog food. e) they are willing to use their buying power.

d) they do not have the need or desire for dog food.

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. a) concentrated targeting b) differentiated c) heterogeneous market d) undifferentiated e) single mix

d) undifferentiated

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.

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

Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income. Kelly's Kids is using _____ variables to segment its market. demographic psychographic sociographic behavioristic geographic

demographic

Occupation, family size, and family life cycle are all ______ variables for segmenting consumer markets. behavioristic demographic geographic psychographic usage

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 psychographic geographic family life cycle product use

demographic

If a company markets its products to several different countries, it is using a(n) ___________ targeting strategy to segment the total market. undifferentiated concentrated stratified differentiated homogeneous

differentiated

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) the sales force survey results. b) the results of sales forecasting. c) a market trend analysis. d) a market segmentation discrimination analysis. e) a market segment profile.

e) a market segment profile.

A business advantage of the concentrated targeting strategy for any company is that it a) requires less market research and information. b) requires less intensive analysis of customers' characteristics and needs. c) allows a firm to utilize all of its production capacity. d) maintains the firm's flexibility in moving into other market segments. e) allows a firm to develop a special marketing mix for a single market segment.

e) allows a firm to develop a special marketing mix for a single market segment.

Using the breakdown approach to sales potential, estimates are made a) by referring to specific geographic factors. b) by establishing levels of marketing effort that will be required to achieve specific levels of sales. c) without reference to industry marketing efforts. d) without reference to general economic conditions. e) by starting with general economic conditions.

e) by starting with general economic conditions.

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. a) undifferentiated b) differentiated targeting c) exclusive targeting d) heterogeneous e) concentrated targeting

e) concentrated targeting

Segmentation variables are usually grouped into four categories: a) demographic, geographic, religion, and income. b) geopolitical, income, behavioristic, and psychographic. c) attitudes, lifestyles, behaviors, and gender. d) geographic, demographic, psychographic, and attitudes. e) demographic, geographic, psychographic, and behavioristic.

e) demographic, geographic, psychographic, and behavioristic.

After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is a) evaluating each of the relevant market segments. b) selecting the specific target markets. c) reviewing the appropriate marketing strategy. d) analyzing the interaction between segmentation variables. e) developing market segment profiles.

e) developing market segment profiles.

Most markets for products are made up of individuals or groups with diverse needs for products and are called ________ markets. a) undifferentiated b) concentrated c) homogenous d) differentiated e) heterogeneous

e) heterogeneous

Positioning a product to avoid competition may be best when the a) competing products are priced higher than or at least equal to the new product. b) company has an established reputation with the consumers of that particular market. c) market is characterized by consumers who are not sensitive to price or value. d) market is characterized by consumers who are price conscious and brand specific. e) product's performance characteristics are not significantly different from those of competing brands.

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

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

e) select specific target markets.

Relying on executive judgment for forecasting may be adequate when a) levels of marketing efforts put forth by competitors vary considerably. b) recent events give the executive specific impressions of product demand. c) product demand is erratic. d) the executive conducts surveys. e) the executive has considerable experience and product demand is relatively stable.

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

The most important reason that a firm might use a sales force forecasting survey to determine its sales forecast is a) salespeople are generally optimistic about the future and will provide excellent forecast targets. b) most salespeople tend to have a pessimistic outlook, which is more likely to result in an achievable sales forecast. c) this tends to be the fastest way to determine a good sales forecast for the upcoming period. d) the averaging and other statistical techniques applied to these forecasts result in extremely accurate numbers. e) the sales staff is closer to the actual customers on a regular basis than anyone else in the organization.

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

To find a target market, a firm can use the a) total market strategy and the undifferentiated strategy. b) product differentiation strategy and the customer differentiation strategy. c) demographic strategy and the psychographic strategy. d) socioeconomic strategy and the psychological strategy. e) undifferentiated strategy, the concentrated strategy, and the differentiated strategy.

e) undifferentiated strategy, the concentrated strategy, and the differentiated strategy.

When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n) expert forecasting survey. Delphi technique. random factor analysis. external judgment survey. market test.

expert forecasting survey.

A marketer that targets customers based on marital status and the presence and age of children is using behavioristic segmentation. lifestyle variables. psychographic variables. family life cycle. phase of life segmentation.

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 income. ethnicity. taste. geographic considerations. family life cycle.

family life cycle

Cosmopolitan magazine, Secret deodorant, and Eve cigarettes are all products whose marketers have used segmentation based on age. education. product use. gender. income.

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 lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through U.S. Census Bureau information. geographic segmentation variables. geodemographic segmentation. climate information. psychographic segmentation.

geodemographic segmentation.

Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid behavioristic segmentation. geodemographic segmentation. market density analysis. demographic segmentation. geographic segmentation.

geodemographic segmentation.

Population density and city size are _______ variables used for market segmentation. geographic demographic psychographic environmental geodemographic

geographic

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. type of organization. market density. product use. customer size.

geographic location.

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

head-to-head

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. psychographic social class lifestyle personality family life cycle

lifestyle

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is motive. social class. personality. stage in family life cycle. lifestyle.

lifestyle

Family life cycle is most typically based on income. geographic location. marital status and age of children. occupation. buying power.

marital status and age of children.

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

psychographic

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 company sales potential. breakdown approach. market potential. buildup approach. company sales forecast.

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 competitor sales potential. sales objective. forecasted sales. company sales potential. market potential.

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 sales potential. market potential. target growth rate. sales forecast. sales objective.

market potential.

Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use of market density. demographic segmentation. behavioristic segmentation. environmental segmentation. micromarketing.

micromarketing

If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is lifestyle. motives. personality. benefit expectations. personality attributes

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 ideal cluster product position chart market graph product matrix

perceptual map

The three most commonly used psychographic segmentation variables are personality, perception, and learning. personality, perception, and behavior. motives, attitudes, and lifestyles. attitudes, personality, and perception. personality, motives, and lifestyles.

personality, motives, and lifestyles.

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 the product mix. the product life cycle. product positioning. product promotion. product development.

product positioning.

A forecasting method that predicts sales based on relationships between past sales and other variables is called regression analysis. customer forecasting surveys. the Delphi technique. random factor analysis. time series analysis.

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 executive judgment. time series analysis. regression analysis. a market test. an expert survey.

regression analysis.

The amount of product a company expects to sell during a specific period at a specified level of marketing activity is called the company sales potential. revenue estimate. company sales prediction. market potential. sales forecast.

sales forecast

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 potential. market potential. sales forecast. market sales. selected market.

sales forecast.

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ___________ variables. marketing classification segmentation stratification dividing

segmentation

Age, rate of product use, location, and gender are all examples of common demographic variables. geographic characteristics. targeting strategies. psychographic variables. segmentation variables.

segmentation variables.