Exam 5: Target Markets: Segmentation and Evaluation

Bethlehem Steel Corp. provides steel for a variety of uses to its various customers. Customers have different needs for the steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is:

One way marketers can segment business markets is according to their geographic location.

The Sara Lee Company is attempting to forecast sales for a new ice cream cake. To come up with an accurate forecast, Sara Lee places the product in Atlanta supermarkets for a period of four months. In this instance, Sara Lee is the forecasting method of .

Would a person's political views be an effective variable in the process of market segmentation? Why or why not?

The types of surveys used to forecast sales are customer, executive, and competitor surveys.

If Campbell were to offer single serving "Soup for One" packages to household markets, it would be using segmentation based on:

Scenario 5.2 Use the following to answer the questions. GE Transportation Corp produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport. -Refer to Scenario 5.2. GE Transportation is most likely using a (an) targeting strategy, segmenting by variables.

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

Which of the following is an example of a behavioristic segmentation variable?

Surveys are sometimes used to forecast sales.

Which of the following is the biggest drawback to using psychographic variables?

A market segment profile provides customers with an understanding of how a business can use its capabilities.

Through market tests, a forecaster gains data regarding consumers' intended purchases.

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:

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. Lil' Angels Kids Spa is currently using a(n) targeting strategy.

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

A firm ordinarily uses the same sales forecasting method for determining short-range and long-range sales forecasts.

A person who has buying power also has the authority to buy.

If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is:

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.