Question 1

A firm using a concentrated targeting strategy aims its marketing activities at one segment of a market.

Accepted Answer

A) True 
 B)False

Question 2

When evaluating relevant market segments, cost estimates are important to determine if an organization entering a particular segment can operate at costs equal to or below those of competitors.

Accepted Answer

A) True 
 B)False

Question 3

The executive judgment method of sales forecasting is very accurate in predicting future sales.

Accepted Answer

A) True 
 B)False

Question 4

Lifestyle is a product-related variable.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  marketing 
B)  classification 
C)  segmentation 
D)  stratification 
E)  dividing 
A)  marketing 
B)  classification 
C)  segmentation 
D)  stratification 
E)  dividing

Question 6

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 .

Accepted Answer

A)  competitor sales potential 
B)  sales objective 
C)  forecasted sales 
D)  company sales potential 
E)  market potential 
A)  competitor sales potential 
B)  sales objective 
C)  forecasted sales 
D)  company sales potential 
E)  market potential

Question 7

Alpine Ski Shops is looking for new markets for both its brick and mortar retail stores and its catalog division. Alpine Ski Shops would most likely use a(n) base for market segmentation of its stores and a(n) base for market segmentation of its catalog division.

Accepted Answer

A)  behavioristic; geographic 
B)  geographic; demographic 
C)  demographic; psychographic 
D)  environmental; demographic 
E)  geographic; behavioristic 
A)  behavioristic; geographic 
B)  geographic; demographic 
C)  demographic; psychographic 
D)  environmental; demographic 
E)  geographic; behavioristic

Question 8

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

Accepted Answer

A)  undifferentiated market; market segments 
B)  undifferentiated market; heterogeneous 
C)  differentiated; market segments 
D)  differentiated; the marketing mix 
E)  concentrated market; heterogeneous 
A)  undifferentiated market; market segments 
B)  undifferentiated market; heterogeneous 
C)  differentiated; market segments 
D)  differentiated; the marketing mix 
E)  concentrated market; heterogeneous

Question 9

Volkswagen markets its Routan to large families, its R32 racecar to men, and its Jetta to young singles. Which of the targeting strategies is being implemented by Volkswagen?

Accepted Answer

A)  Concentrated targeting strategy 
B)  Strategic targeting strategy 
C)  Differentiated targeting strategy 
D)  Undifferentiated targeting strategy 
E)  Multi-segmented targeting strategy 
A)  Concentrated targeting strategy 
B)  Strategic targeting strategy 
C)  Differentiated targeting strategy 
D)  Undifferentiated targeting strategy 
E)  Multi-segmented targeting strategy

Question 10

Scenario 5.1
Use the following to answer the questions.
Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customers. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Currently, 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, the management wants to find out if the older girls will be interested in their birthday party and tea party services.
-Refer to Scenario 5.1. In calculating the sales forecast for the next year, marketers at Lil' Angels use data from the past five years in order to identify any trends that surface. Additionally, marketers want to find out what family variables relate to those sales. Which of the following variables should the marketers use in relating to sales? What type of forecast method will they implement to relate the variables to sales trends?

Accepted Answer

A)  behavioristic; time series analysis 
B)  psychographic; time series analysis 
C)  demographic; regression analysis 
D)  income; regression analysis 
E)  family life cycle; market tests 
A)  behavioristic; time series analysis 
B)  psychographic; time series analysis 
C)  demographic; regression analysis 
D)  income; regression analysis 
E)  family life cycle; market tests

Question 11

The purpose of market segmentation is to:

Accepted Answer

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. 
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.

Question 12

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?

Accepted Answer

A)  Extensive targeting strategy 
B)  Concentrated targeting strategy 
C)  Undifferentiated targeting strategy 
D)  Intensive targeting strategy 
E)  Differentiated targeting strategy 
A)  Extensive targeting strategy 
B)  Concentrated targeting strategy 
C)  Undifferentiated targeting strategy 
D)  Intensive targeting strategy 
E)  Differentiated targeting strategy

Question 13

Scenario 5.1
Use the following to answer the questions.
Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customers. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Currently, 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, the management wants to find out if the older girls will be interested in their birthday party and tea party services.
-Refer to Scenario 5.1. Which of the following best describes Lil' Angels' current approach to the market?

Accepted Answer

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. 
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.

Question 14

Market segment profiles help determine the most desirable segment or segments in relation to the firm's strengths, weaknesses, objectives, and resources.

Accepted Answer

A) True 
 B)False

Question 15

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:

Accepted Answer

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. 
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.

Question 16

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.

Accepted Answer

A)  the Delphi technique 
B)  executive judgment 
C)  time series analysis 
D)  market tests 
E)  regression analysis 
A)  the Delphi technique 
B)  executive judgment 
C)  time series analysis 
D)  market tests 
E)  regression analysis

Question 17

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to:

Accepted Answer

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. 
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.

Question 18

What are the variables involved in the process of segmenting business markets?

Accepted Answer

Like consumer markets, business markets

Question 19

Relying on executive judgment for forecasting may be adequate when:

Accepted Answer

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. 
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.

Question 20

Which of these statements is not true about business markets?

Accepted Answer

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)  These markets can also be referred to as organizational 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)  These markets can also be referred to as organizational markets.

A firm using a concentrated targeting strategy aims its marketing activities at one segment of a market.

When evaluating relevant market segments, cost estimates are important to determine if an organization entering a particular segment can operate at costs equal to or below those of competitors.

The executive judgment method of sales forecasting is very accurate in predicting future sales.

Lifestyle is a product-related variable.

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

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 .

Alpine Ski Shops is looking for new markets for both its brick and mortar retail stores and its catalog division. Alpine Ski Shops would most likely use a(n) base for market segmentation of its stores and a(n) base for market segmentation of its catalog division.

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

Volkswagen markets its Routan to large families, its R32 racecar to men, and its Jetta to young singles. Which of the targeting strategies is being implemented by Volkswagen?

The purpose of market segmentation is to:

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?

Market segment profiles help determine the most desirable segment or segments in relation to the firm's strengths, weaknesses, objectives, and resources.

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.

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to:

What are the variables involved in the process of segmenting business markets?

Relying on executive judgment for forecasting may be adequate when:

Which of these statements is not true about business markets?

Customer-Driven Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment, Social Responsibility, and Ethics

Marketing Research and Information Systems

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product, Branding, and Packaging Concepts

Developing and Managing Goods and Services

Pricing Concepts and Management

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Filters

Exam 5: Target Markets: Segmentation and Evaluation

A firm using a concentrated targeting strategy aims its marketing activities at one segment of a market.

When evaluating relevant market segments, cost estimates are important to determine if an organization entering a particular segment can operate at costs equal to or below those of competitors.

The executive judgment method of sales forecasting is very accurate in predicting future sales.

Lifestyle is a product-related variable.

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

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 .

Alpine Ski Shops is looking for new markets for both its brick and mortar retail stores and its catalog division. Alpine Ski Shops would most likely use a(n) base for market segmentation of its stores and a(n) base for market segmentation of its catalog division.

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

Volkswagen markets its Routan to large families, its R32 racecar to men, and its Jetta to young singles. Which of the targeting strategies is being implemented by Volkswagen?

The purpose of market segmentation is to:

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?

Market segment profiles help determine the most desirable segment or segments in relation to the firm's strengths, weaknesses, objectives, and resources.

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.

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to:

What are the variables involved in the process of segmenting business markets?

Relying on executive judgment for forecasting may be adequate when:

Which of these statements is not true about business markets?

Customer-Driven Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment, Social Responsibility, and Ethics

Marketing Research and Information Systems

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product, Branding, and Packaging Concepts

Developing and Managing Goods and Services

Pricing Concepts and Management

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Filters