MRKT 322 Quiz 5

market.

A group of individuals and/or organizations that have desire or needs for products in a product class and have the ability, willingness, and authority to purchase those products is a:

heterogeneous

A market comprised of individuals or organizations with diverse product needs is called a(n) _____ market.

family life cycle.

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

determining which segmentation variables to use.

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

developing market segment profiles.

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

segmentation variables.

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

Legos

Which of the following products is most likely to have its market segment based on age?

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

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

The geographic location of the company

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

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

A disadvantage of the concentrated targeting strategy is that:

regression analysis

A forecasting method that predicts sales based on relationships between past sales and one or more independent variables is called _____.

time series analysis

Brian works for a manufacturer of sports equipment and is currently developing a company sales forecast for golf clubs. While reviewing data, he discovered a pattern in sales volume over the past ten years that peaked during two months of each year. Thus, Brian likely used _____ to forecast sales.

benefit

Crest toothpaste is available in several different versions, such as Crest Whitening, Crest Tartar Control, Crest Whitening with mouthwash, and Crest Total Effects. Given these different variations of the product, it appears that the marketers of Crest are segmenting the market by using _____ segmentation.

time series analysis; regression analysis

DeShon has just become the new marketing analyst for a company that produces vinyl siding 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 sales 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 combinations of demographic data. DeShon is employing the _____ forecasting method for the sales growth trend and the _____ method for the correlation.

type of organization.

Dell Inc. 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:

lack the authority to purchase this type of product.

Eighteen-year-old students do not form a market for alcoholic beverages because they:

select specific target markets.

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:

an organization of their own to purchase the product.

In order to be considered a market, people do not require:

differentiated

Interior Designs Inc. sells expensive custom-made draperies, bedding, and accessories through sales representatives who are also interior designers. It also has another, slightly less expensive line that it sells through stores such as Nordstrom's and Saks Fifth Avenue. Interior Designs Inc. is most likely using a (n) _____ targeting strategy.

demographic

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.

her ability to purchase the dog food is questionable.

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 _____.

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

Micromarketing is:

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.

was not; were; because Emma lacked the desire.

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 turned five, she did not want to attend the school although 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:

demographic, geographic, psychographic, and behavioristic.

Segmentation variables are usually grouped into four categories:

Personality characteristics, motives, and lifestyles

Seventh Generation is a company producing products that limit the amount of negative impact on the environment. Their product line includes dishwashing liquid, toilet paper, paper towels, baby wipes, and laundry detergent, to name a few. Seventh Generation is now interested in producing a new line of clothing; mostly t-shirts, shorts, and long pants for both men and women. Their research indicates that they should use psychographic segmentation in their marketing strategy. Which group of segmentation variables will be implemented by Seventh Generation?

differentiated; homogenous

Smart Balance produces a line of milk products that are lactose-free. The milk comes in pint, quart, and half-gallon cartons, as well as 16-ounce glass bottles. Smart Balance sells its pint cartons to school systems, its quart and half-gallon cartons to grocery stores, and its glass bottles to vending machine operators. Smart Balance appears to use a(n) _____ strategy in marketing its product to a target market that is likely to be _____.

Geographic location and family life cycle

Subaru is producing a new seven-passenger van with all-wheel drive. Which of the following would be the best variables for segmenting the market for this new model?

Concentrated targeting strategy

The ProMark Company manufactures a pencil that is about five inches long and has no eraser. It sells the product primarily to golf courses and universities. Which of the following targeting strategies has been implemented by this company?

selecting specific target markets.

The final step in the target market selection process is:

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

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

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

The primary advantage of a concentrated targeting strategy is:

a market test

The sales forecasting method that involves making a product available to buyers in one or more test areas and measuring purchases and consumer responses to the product, distribution, promotion, and price is called _____.

market potential

The total amount of a product that customers will purchase within a specified period at a specific level of industry-wide marketing activity is the _____.

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

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

undifferentiated; heterogeneous

Walmart sells numerous products, including packaged food, produce, automotive maintenance services, eyeglasses, clothing, and toys. Walmart advertises itself as a store where "we save people's money so they can live better," focusing on its low prices as the customer's most important need. Walmart's advertising appears to use a(n) _____ strategy to a market that is _____.

It is expensive.

What is the primary disadvantage of using a market test as a forecasting tool?

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.

When evaluating market segments, assessment of competitors is important because:

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

When selecting specific target markets, a firm should:

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.

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:

Market tests

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

Soft drinks

Which of the following products is least likely to be segmented according to stages in the family life cycle?

a market segment profile.

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:

Geographic variable

Zerex markets its radiator liquid to different markets; one as a coolant and the other as antifreeze. Which of the following segmentation variables is being implemented by Zerex?

Market segment profiles

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