Exam 6: Target Markets, Segmentation and Evaluation

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 _______.

Baby Lux is a baby boutique that sells luxury baby items. It is located in Los Angeles. The owner has been highly successful over the years and has decided to open another store in San Diego. However, sales at this store have been low. The owner asked a marketing consultant for advice about what went wrong. The consultant says the location is not ideal for the market. The owner located his store in a high-income area, but most of the people in the area are singles or retired couples. Instead, the owner should have used ____________ to identify an area of the city with higher-income neighborhoods characterized by couples who want only the best for their newborn babies.

Which of the following statements about market segment profiles is true?

The marketing manager for Gillette razors is attempting to determine a sales estimate for the line of products that provide men with the ability to maintain their facial hair using a traditional razor or an electric razor. The marketing manager estimates that Gillette has a strong level of loyalty and brand name appeal and will garner 20% of the overall market. This amount is known as the _______. In addition, the marketing manager believes the total sales for the category will be $30 million annually for razors and razor blades for men. This is known as the ______________.

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

Alli 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

Psychographic variables are aggregate population characteristics such as the distribution of age and gender, fertility rates, migration patterns, and mortality rates.

When the needs of individual consumers in a target market for a specific product are similar and the organization can satisfy most customers with a single marketing mix, the best approach to use may be the ____ strategy.

Most markets for products are made up of individuals or groups with diverse needs for products and are called ____ markets.

Your marketing team is having a brainstorming session to finalize your target marketing strategy. To make sure all team members are on the same page, you make the following statement to keep the discussions focused: If we determine that the needs of the customers we are targeting are ______________, then we need to pursue a _______________ targeting strategy.

A forecasting method that predicts sales based on relationships between past sales and other variables is called

Taco Bell has been very inventive in partnering with companies such as Frito Lay to create new menu items. Recently Taco Bell developed the Nacho Cheese Doritos Locos Tacos, a Taco Supreme® made with premium seasoned beef, crisp lettuce, diced juicy red ripe tomatoes, real cheddar cheese, and topped with cool reduced-fat sour cream, in a shell made from Nacho Cheese Doritos® Chips. Prior to the partnership and roll-out of the product throughout the Taco Bell system, a _______ was conducted where several "test" stores carried the products for a limited time and Taco Bell and Frito Lay could measure the actual sales to gauge the strength of the brand and opportunity for success.

____________ is a useful sales forecasting method as long as a precise relationship between past sales figures and one or more variables can be established. Without these relationships, this method is useless in forecasting future sales.

When selecting specific target markets, a firm should

Rolls-Royce targets a very exclusive high-income market. Toyota, on the other hand, targets economy markets (Yaris), the environmentally-conscious market (Prius), and the higher-income market (Lexus). Rolls-Royce has adopted a ___________ targeting strategy. Toyota has adopted a ______________ targeting strategy.

A competitive assessment may reveal that a market segment that initially seemed attractive may not be worth pursuing.

Describe the variables used to segment business markets, and provide at least one example of each.

The sales prediction technique based on the correlation between sales and other factors such as population density, per capita income, or family size is

Segmentation variables are characteristics of individuals, groups, or organizations in a total market.

With its Venus razor, Gillette was the first marketer to offer a triple blade razor specifically designed for women. This is an example of market segmentation using ____ variables.