Exam 5: Target Markets: Segmentation and Evaluation

Micromarketing is:

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

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

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

Meghan intends to open a house-cleaning business and is considering several market segments. She has identified four segments for consideration; young urban singles, young married professionals, senior citizens, and college students. She has just completed an analysis of these four segments by assessing such factors as sales estimates, competition, and estimated costs. Meghan is now ready for implementing the next step in the target market selection process, which is to:

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.

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 .

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

Cosmopolitan magazine, Car and Driver magazine, Secret deodorant, and Axe body wash are all products whose marketers have used segmentation based on:

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?

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

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:

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

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

The three most commonly used psychographic segmentation variables are:

Alex Wren of Owens Corning Fiberglass Corp talks to Terry Jones, a homebuilder, 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.

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

Company sales forecasts are least likely to be based on:

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

Nathan, 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 estimate sales potential.