Exam 6: Target Markets, Segmentation and Evaluation

Identify the four major categories of segmentation of variables for consumer products, and give three examples of each.

TimeWarner Cable uses a segmentation strategy for its cable TV packages based on market characteristics such as age, gender, or income. Which of the following segmentation variables is TimeWarner using?

Which of the following variables would most likely be used to segment a business market?

Scenario 6.2 Use the following to answer the questions. GE Transportation 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 short line transport. Refer to Scenario 6.2. Researchers at GE Transportation estimate that 1,000 rail lines throughout the world will purchase some kind of locomotive engine next year. That number represents the

The ability to purchase a product is a function of

The first step in the breakdown approach is developing a general economic forecast for a specific time period. Which of the following is the second step?

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

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

A segmentation variable is used to group smaller markets into one larger market.

Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on

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.

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 combination of demographic data. DeShon is employing the ____ forecasting method for the sales growth trend and the ________ method for the correlation.

The buildup approach measure of sales potential

Walmart sells numerous products, including packaged food, produce, automotive maintenance services, eyeglasses, clothing, and toys. Walmart advertises itself as a store where "we save people money so they can live better," focusing on its low prices as the customer's most important need. Walmart's advertising appears to use a(n) _____ strategy to a market that is _____.

The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the

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.

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

Marketers use a variety of characteristics to segment markets they are interested in pursuing. When segmenting consumer markets, demographic variables are normally used. All of the following are demographic characteristics used by marketers to segment markets except:

Many companies today employ a sales forecasting manager or sales planner to determine the sales forecasts for individual products. Forecasting managers may utilize Excel to perform _______________, where sales is the dependent variable and a variety of other factors such as company size, annual purchases, and number of years as a customer are the independent variables. Fastenal, a reseller of tools, fasteners, and other items required for manufacturers, relies on this sophisticated and mathematical approach to forecasting sales by first utilizing historical sales data incorporating a 10-year history of sales for each product category such as different brands of tools and supplies-nuts, bolts, screws, etc. The sales forecasting manager is then able to identify the relationship between the independent variables and the dependent variables to determine an accurate sales forecast.

Comcast offers different types of cable packages. Its digital economy has over 45 channels. Its digital preferred package offers over 220 channels. Its XFINITY TV 200 Latino offers over 150 channels, including more than 50 Spanish channels. What type of segmentation variable is Comcast likely using when developing its different packages?