Exam 4: Segmenting the Business Market and Estimating Segment Demand

Concerning segmentation criteria, _____ concerns the degree to which segments respond differently to different marketing mix elements, such as pricing or product features.

Compared to centralized buyers, decentralized purchasing units emphasize short-term cost efficiency.

Your first task as a product manager at Dow Chemical is to evaluate the market segmentation strategy followed by your predecessor. For the past four years, this manager had been dividing the market on the basis of NAICS codes and developing a separate marketing strategy for each of 5 different NAICS industries. Describe the specific steps that you would follow in evaluating the existing segmentation plan. What factors might prompt you to seriously consider making a change in the existing segmentation approach?

The classification of customers on a continuum range from nonuser to heavy user is an example of:

The ____________________ method combines and averages top executives' estimates of future sales and is popular because it is easy to apply and understand.

The business market can be segmented on several bases, broadly classified into two major categories:

Microsegmentation focuses within macro segments.​

Lansing Motor Works produces a line of precision motors. Based on feedback from the sales force, management has learned that one of their new motors is especially well-suited to high-speed packaging systems. The new motor requires less maintenance and has a longer useful life than competing offerings. Lansing Motor Works is now concentrating on this segment. This provides an illustration of segmentation on the basis of:

The most crucial limitation(s) associated with causal methods of sales forecasting is(are):

When a business marketer determines whether a buyer is employing a new task, modified rebuy or straight rebuy decision-making process, what macrolevel segmentation variable is being used?

All of the following are potential macro bases of business market segmentation except:

Bases of business or organizational market segmentation that center on the characteristics of the buying organization and the buying situation are broadly categorized as:

In evaluating alternative bases for segmentation, the marketer is attempting to identify good predictors of differences in buyer behavior.

You have just taken over as the new national sales manager for Smucker's. You have just been presented with a plan from your boss, the Vice-President of Sales, to add new institutional market segments for Smucker's products - cafeterias in schools and hospitals. After reading the report, you strongly believe that the new segments have been well-defined and are extremely viable. What steps can you take to ensure that this new segmentation strategy is successfully implemented?

Customers who are not particularly price or service sensitive and who made purchases in a routine fashion of products that are not central to their operation are best known as____________________buyers.

Successful implementation of a business segmentation strategy requires attention to which of the following issues?

The personal characteristics of decision-makers in buying centers, such as their decision style and confidence, are examples of macrolevel bases of segmentation.

Large buying organizations may possess unique requirements and respond to different marketing stimuli than small firms. Research suggests that the degree of influence of presidents, vice presidents, and owners _____ with an increase in corporate size.

Which of the following is a benefit of effective segmentation?

Time series techniques are especially appropriate when management believes that sales will behave differently in the future than they have in the past.