Exam 6: Target Markets, Segmentation and Evaluation

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

Which of these statements is not true about business markets?

Leonard is developing a market forecast. After reviewing years of sales, he noticed there seems to be a clear association between past sales and households with children. The more families with children locate to the area, the more sales seem to increase. Leonard believes he can use this relationship and the information he has on households in the area to predict future sales. This is an example of what type of forecasting method?

Discuss the difference between sales forecasts and company sales potential. Why is it important for a marketer to be able to forecast sales?

Why is it important for marketers to estimate sales potential for the entire industry as well as for the individual company?

Surveys are sometimes used to forecast sales.

Why do marketers rely heavily on demographic characteristics when segmenting consumer markets?

Describe the three areas marketers should examine when they evaluate relevant market segments.

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

Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid

Which of the following is an example of benefit segmentation?

Sysco distributes food to restaurants, healthcare facilities, hotels, and schools, among other businesses. What type of targeting strategy would it most likely adopt?

When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n)

The term market density refers to the number of potential customers per unit of land area, such as per square mile.

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

Lynn always wanted to live in downtown San Francisco. For 10 years she has worked as a manager at an investment banking firm, where she is well paid. However, the most affordable condo is still more than $1 million more than she wants to pay. Although Lynn has the money to purchase the condo, she cannot justify to herself paying so much money for one person, even for a condo in the middle of downtown San Francisco. Lynn ______ part of the market for condos in downtown San Francisco because she ___________________ to buy.

Why would a company use the undifferentiated strategy?

If Georgia-Pacific, a producer of home siding, decking, and other wood products, focused its marketing efforts to home construction companies only, it would be using a(n) ____ strategy. If it sold the same products to both construction companies and DIY retailers such as Home Depot, it would be using a(n) ____ strategy.

When a firm's management is making the final selection of specific target markets to enter, it should consider whether the organization has the financial resources, managerial skills, expertise, and facilities needed to effectively compete in the selected segments.

Micromarketing is