Question 1

Customer surveys as a means of forecasting sales are not appropriate for a firm that has relatively few customers.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not a characteristic of a consumer market?

Accepted Answer

A)  It consists of purchasers who intend to consume or benefit from the purchased products. 
B)  Purchasers do not buy products for the main purpose of making a profit. 
C)  It is sometimes referred to as B2C markets. 
D)  The purchasing decisions of a consumer market are always made by only one individual. 
E)  Purchasers may buy the product but not use it themselves. 
A)  It consists of purchasers who intend to consume or benefit from the purchased products. 
B)  Purchasers do not buy products for the main purpose of making a profit. 
C)  It is sometimes referred to as B2C markets. 
D)  The purchasing decisions of a consumer market are always made by only one individual. 
E)  Purchasers may buy the product but not use it themselves.

Question 3

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?

Accepted Answer

A)  Demographic variable 
B)  Psychographic variable 
C)  Lifestyle variable 
D)  Geographic variable 
E)  Behavioristic variable 
A)  Demographic variable 
B)  Psychographic variable 
C)  Lifestyle variable 
D)  Geographic variable 
E)  Behavioristic variable

Question 4

The first step in the target market selection process is:

Accepted Answer

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. 
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.

Question 5

The buildup approach measure of sales potential:

Accepted Answer

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. 
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.

Question 6

Which of the following products is most likely to be marketed using an undifferentiated approach?

Accepted Answer

A)  bicycle 
B)  computer 
C)  notebook 
D)  seasoning salt 
E)  oscillating fan 
A)  bicycle 
B)  computer 
C)  notebook 
D)  seasoning salt 
E)  oscillating fan

Question 7

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?

Accepted Answer

A)  Geographic location 
B)  Age, sex, and socioeconomic characteristics 
C)  Social class variables 
D)  Personality characteristics, motives, and lifestyles 
E)  Family life cycle, social class, and religion 
A)  Geographic location 
B)  Age, sex, and socioeconomic characteristics 
C)  Social class variables 
D)  Personality characteristics, motives, and lifestyles 
E)  Family life cycle, social class, and religion

Question 8

It is likely that during the fifth Step of the target market selection process, marketers will decide not to enter and compete in any market segments.

Accepted Answer

A) True 
 B)False

Question 9

The final step in the target market selection process is:

Accepted Answer

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. 
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.

Question 10

Alli Inc. 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:

Accepted Answer

A)  demographics. 
B)  lifestyles. 
C)  psychographics. 
D)  behavior. 
E)  personality characteristics. 
A)  demographics. 
B)  lifestyles. 
C)  psychographics. 
D)  behavior. 
E)  personality characteristics.

Question 11

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

Accepted Answer

A)  behavioristic segmentation. 
B)  lifestyle variables. 
C)  psychographic variables. 
D)  family life cycle. 
E)  phase of life segmentation. 
A)  behavioristic segmentation. 
B)  lifestyle variables. 
C)  psychographic variables. 
D)  family life cycle. 
E)  phase of life segmentation.

Question 12

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:

Accepted Answer

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. 
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.

Question 13

The forecasting techniques that assume past sales patterns will continue into the future are all variations of:

Accepted Answer

A)  regression analysis. 
B)  random factor analysis. 
C)  seasonal analysis. 
D)  time series analysis. 
E)  past sales forecasting surveys. 
A)  regression analysis. 
B)  random factor analysis. 
C)  seasonal analysis. 
D)  time series analysis. 
E)  past sales forecasting surveys.

Question 14

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

Accepted Answer

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. 
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.

Question 15

The four requirements of a market are that the individuals in the market must have a need for the product and the ability, willingness, and authority to buy it.

Accepted Answer

A) True 
 B)False

Question 16

Several conditions must exist for market segmentation to be successful. These conditions include all of the following except:

Accepted Answer

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. 
E)  at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment. 
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. 
E)  at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment.

Question 17

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) _____ strategy.

Accepted Answer

A)  selective 
B)  focused 
C)  differentiated 
D)  concentrated 
E)  undifferentiated 
A)  selective 
B)  focused 
C)  differentiated 
D)  concentrated 
E)  undifferentiated

Question 18

The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the _.

Accepted Answer

A)  sales forecast 
B)  market potential 
C)  company sales potential 
D)  company sales objective 
E)  market share goal 
A)  sales forecast 
B)  market potential 
C)  company sales potential 
D)  company sales objective 
E)  market share goal

Question 19

Discuss the advantages and disadvantages of using executive judgment in forecasting company sales.

Accepted Answer

Executive judgment is the intuition of o

Question 20

One problem with using psychographic variables for segmentation purposes is that they are difficult to measure accurately.

Accepted Answer

A) True 
 B)False

Customer surveys as a means of forecasting sales are not appropriate for a firm that has relatively few customers.

Which of the following is not a characteristic of a consumer market?

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?

The first step in the target market selection process is:

The buildup approach measure of sales potential:

Which of the following products is most likely to be marketed using an undifferentiated approach?

It is likely that during the fifth Step of the target market selection process, marketers will decide not to enter and compete in any market segments.

The final step in the target market selection process is:

Alli Inc. 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:

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

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:

The forecasting techniques that assume past sales patterns will continue into the future are all variations of:

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

The four requirements of a market are that the individuals in the market must have a need for the product and the ability, willingness, and authority to buy it.

Several conditions must exist for market segmentation to be successful. These conditions include all of the following except:

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) _____ strategy.

The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the _.

Discuss the advantages and disadvantages of using executive judgment in forecasting company sales.

One problem with using psychographic variables for segmentation purposes is that they are difficult to measure accurately.

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

Customer surveys as a means of forecasting sales are not appropriate for a firm that has relatively few customers.

Which of the following is not a characteristic of a consumer market?

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?

The first step in the target market selection process is:

The buildup approach measure of sales potential:

Which of the following products is most likely to be marketed using an undifferentiated approach?

It is likely that during the fifth Step of the target market selection process, marketers will decide not to enter and compete in any market segments.

The final step in the target market selection process is:

Alli Inc. 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:

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

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:

The forecasting techniques that assume past sales patterns will continue into the future are all variations of:

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

The four requirements of a market are that the individuals in the market must have a need for the product and the ability, willingness, and authority to buy it.

Several conditions must exist for market segmentation to be successful. These conditions include all of the following except:

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) _____ strategy.

The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the _.

Discuss the advantages and disadvantages of using executive judgment in forecasting company sales.

One problem with using psychographic variables for segmentation purposes is that they are difficult to measure accurately.

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