Exam 6: Segmentation, Target Markets and Positioning

The manager at a local recreational vehicle store, Off-Road Rage, believes the next two years will be difficult because of an economic recession.Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook.This manager is using a __________ approach to estimating sales potential.

Smith's is currently conducting market segmentation studies.For several segments, it has completed competitive assessments and cost estimates.The next major step it must take is to:

When relevant market segments are evaluated, cost estimates are important in determining if an organisation entering a particular segment can operate at costs equal to or below those of competitors.

Company sales potential is the maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product.

Volkswagen markets the Caravelle to large families, the Scirocco R to men, and the up! to young singles.What targeting approach is Volkswagen using?

Family life cycle is a psychological dimension used for segmenting markets.

Lifestyle is a product-related variable.

A company sometimes defines a total market as its target market.

In evaluations of market segments, what are three major issues that should be considered?

Interior Workroom sells expensive custom-made draperies, bedding and accessories using a single marketing mix.It is therefore most likely using a(n) __________ targeting strategy.

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

The information yielded by market segment profiles is usually not very useful late in the marketing process.

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

The two general approaches to measuring company sales potential are the breakdown and the buildup approach.

In business markets, individuals or groups purchase products for one of three purposes.These purposes are:

Andrea makes frequent trips to Costco to make purchases for her catering business as well as her family.Andrea knows that she is considered as part of the business market when the items she buys are intended for resale, used directly in producing her food products or:

Consideration of a firm's overall objectives usually does not influence the final selection of a target market segment.

Use the following to answer questions GE Transportation produces train engines for sale in countries around the world.After looking at the total market for train engines, the company found that different rail lines wanted different engines.Major rail lines in the USA and South America wanted engines to haul heavy freight.Rail lines in Sweden and Germany were interested in a cleaner, greener train engine.Rail lines operated by several Eastern European countries wanted train 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 distances. -Which of the following targeting strategies is GE Transportation most likely using?

Lifestyle analysis focuses on people's activities, interests and opinions.

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