Exam 5: Target Market Segmentation and Evaluation

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

The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is

One condition for effective segmentation is that at least one segment must have substantial profit potential.

Like marketing research, sales forecasting utilizes a wide array of tools and techniques to enhance the accuracy of the forecast. For example, ____________ combines and averages the outlooks of top executives from different functional areas in a firm or firms. ______________ weighs each year's sales data, giving greater weight to results from the most recent years.

When selecting specific target markets, a firm should

You are an analyst in the marketing department for a major grocery store chain, and you recently submitted a report to your boss regarding potential market segments the company should consider targeting. Your boss just sent the report back to you with the following questions: What are the strengths and weaknesses of the competitors who are also targeting these markets? Does any firm dominate the market currently? Can we create a compelling marketing mix to effectively compete for business in this market segment? Based on the questions being asked, it appears your boss is using which one of the following segment evaluation approaches?

The size of the market potential places limits on the size of the company sales potential.

Which of the following products is most likely to have its market segment based on age?

The ProMark Company manufactures a pencil that is about five inches long and has no eraser. It sells the product primarily to golf courses and universities. What type of targeting strategy is the ProMark Company using?

Volkswagen markets its Routan to large families, its R32 racecar to men, and its Jetta to young singles. What targeting approach is Volkswagen using?

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.

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

Which of the following products is most likely to be marketed, using an undifferentiated approach?

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

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 _______.

The ability to purchase a product is a function of

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 shortline transport. Refer to Scenario 5.2. Suppose that GE Transportation decided to produce only locomotive engines for rail lines in the United States. The segmentation variable then would be

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ____ markets.

If long-term prospects look poor, a marketer may ultimately choose not to target a segment because it would be difficult to recoup expenses.

People and organizations have needs and wants they seek to satisfy through the purchase of goods and services. These people and organizations represent a _____________ that marketers try to appeal to. Marketers will sometimes find it more advantageous to attempt to appeal to a subgroup of these people and organizations which is called a ________________. This subgrouping process is accomplished through the use of _______________ techniques.