Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?

Accepted Answer

A)  Micromarketing 
B)  Population 
C)  Market density 
D)  MSA 
E)  PMSA 
A)  Micromarketing 
B)  Population 
C)  Market density 
D)  MSA 
E)  PMSA

Question 3

How do business markets differ from consumer markets?

Accepted Answer

Markets fall into one of two categories:

Question 4

Which of these statements is not true about business markets?

Accepted Answer

A)  the purchase may be made to resell the item 
B)  the purchase is always made by more than one individual 
C)  the purchase may be made to use in general daily operations 
D)  the purchase may be made to use in production of another product 
E)  they can also be referred to as organizational markets 
A)  the purchase may be made to resell the item 
B)  the purchase is always made by more than one individual 
C)  the purchase may be made to use in general daily operations 
D)  the purchase may be made to use in production of another product 
E)  they can also be referred to as organizational markets

Question 5

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as

Accepted Answer

A)  market segments. 
B)  heterogeneous markets. 
C)  concentrated markets. 
D)  demographic segments. 
E)  strategic segments. 
A)  market segments. 
B)  heterogeneous markets. 
C)  concentrated markets. 
D)  demographic segments. 
E)  strategic segments.

Question 6

Individuals' ability to buy depends on the strength of their buying power.

Accepted Answer

A) True 
 B)False

Question 7

Using the breakdown approach to sales potential, estimates are made

Accepted Answer

A)  by referring to specific geographic factors. 
B)  by establishing levels of marketing effort that will be required to achieve specific levels of sales. 
C)  without reference to industry marketing efforts. 
D)  without reference to general economic conditions. 
E)  by starting with general economic conditions. 
A)  by referring to specific geographic factors. 
B)  by establishing levels of marketing effort that will be required to achieve specific levels of sales. 
C)  without reference to industry marketing efforts. 
D)  without reference to general economic conditions. 
E)  by starting with general economic conditions.

Question 8

Segmentation variables are usually grouped into four categories:

Accepted Answer

A)  demographic, geographic, religion, and income. 
B)  geopolitical, income, behavioristic, and psychographic. 
C)  attitudes, lifestyles, behaviors, and gender. 
D)  geographic, demographic, psychographic, and attitudes. 
E)  demographic, geographic, psychographic, and behavioristic. 
A)  demographic, geographic, religion, and income. 
B)  geopolitical, income, behavioristic, and psychographic. 
C)  attitudes, lifestyles, behaviors, and gender. 
D)  geographic, demographic, psychographic, and attitudes. 
E)  demographic, geographic, psychographic, and behavioristic.

Question 9

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to

Accepted Answer

A)  allow an opportunity to obtain diverse expert opinions. 
B)  allow experts to work separately to reach a consensus as to their forecasts. 
C)  reach an accurate sales forecast through the use of multiple sales forecasting techniques. 
D)  determine if the expert forecasting survey is superior to regression analysis. 
E)  assess the extent to which this year's sales forecast is more accurate than that of previous years. 
A)  allow an opportunity to obtain diverse expert opinions. 
B)  allow experts to work separately to reach a consensus as to their forecasts. 
C)  reach an accurate sales forecast through the use of multiple sales forecasting techniques. 
D)  determine if the expert forecasting survey is superior to regression analysis. 
E)  assess the extent to which this year's sales forecast is more accurate than that of previous years.

Question 10

Age, rate of product use, location, and gender are all examples of common

Accepted Answer

A)  demographic variables. 
B)  geographic characteristics. 
C)  targeting strategies. 
D)  psychographic variables. 
E)  segmentation variables. 
A)  demographic variables. 
B)  geographic characteristics. 
C)  targeting strategies. 
D)  psychographic variables. 
E)  segmentation variables.

Question 11

Family life cycle is most typically based on

Accepted Answer

A)  income . 
B)  geographic location. 
C)  marital status and age of children. 
D)  occupation. 
E)  buying power. 
A)  income . 
B)  geographic location. 
C)  marital status and age of children. 
D)  occupation. 
E)  buying power.

Question 12

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. GE Transportation is most likely using a(an) ______ targeting strategy, segmenting by ________ variables.

Accepted Answer

A)  Undifferentiated; benefit expectations 
B)  Differentiated; benefit expectations 
C)  Differentiated; volume usage 
D)  Concentrated; volume usage 
E)  Concentrated; geographic location 
A)  Undifferentiated; benefit expectations 
B)  Differentiated; benefit expectations 
C)  Differentiated; volume usage 
D)  Concentrated; volume usage 
E)  Concentrated; geographic location

Question 13

Lifestyle is a product-related variable.

Accepted Answer

A) True 
 B)False

Question 14

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.

Accepted Answer

A)  undifferentiated; undifferentiated 
B)  undifferentiated; differentiated 
C)  differentiated; multisegmented 
D)  concentrated; differentiated 
E)  concentrated; concentrated 
A)  undifferentiated; undifferentiated 
B)  undifferentiated; differentiated 
C)  differentiated; multisegmented 
D)  concentrated; differentiated 
E)  concentrated; concentrated

Question 15

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 _____.

Accepted Answer

A)  undifferentiated; homogeneous. 
B)  undifferentiated; heterogeneous. 
C)  differentiated; homogeneous. 
D)  homogeneous; differentiated. 
E)  heterogeneous; undifferentiated. 
A)  undifferentiated; homogeneous. 
B)  undifferentiated; heterogeneous. 
C)  differentiated; homogeneous. 
D)  homogeneous; differentiated. 
E)  heterogeneous; undifferentiated.

Question 16

Relying on executive judgment for forecasting may be adequate when

Accepted Answer

A)  levels of marketing efforts put forth by competitors vary considerably. 
B)  recent events give the executive specific impressions of product demand. 
C)  product demand is erratic. 
D)  the executive conducts surveys. 
E)  the executive has considerable experience and product demand is relatively stable. 
A)  levels of marketing efforts put forth by competitors vary considerably. 
B)  recent events give the executive specific impressions of product demand. 
C)  product demand is erratic. 
D)  the executive conducts surveys. 
E)  the executive has considerable experience and product demand is relatively stable.

Question 17

Frito-Lay Snack Foods is currently conducting market segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to

Accepted Answer

A)  determine which segmentation variables to use. 
B)  develop market segment profiles. 
C)  identify the appropriate targeting strategy. 
D)  select specific target markets. 
E)  develop sales forecasts. 
A)  determine which segmentation variables to use. 
B)  develop market segment profiles. 
C)  identify the appropriate targeting strategy. 
D)  select specific target markets. 
E)  develop sales forecasts.

Question 18

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.

Accepted Answer

A)  breakdown 
B)  recessionary 
C)  buildup 
D)  pyramid 
E)  dimensional 
A)  breakdown 
B)  recessionary 
C)  buildup 
D)  pyramid 
E)  dimensional

Question 19

The final step in the target market selection process is

Accepted Answer

A)  implementing the appropriate marketing mix for the target market. 
B)  evaluating relative market segments. 
C)  eliminating market segments that are cost prohibitive. 
D)  selecting specific target markets. 
E)  revising the final segmentation variables based on target selection. 
A)  implementing the appropriate marketing mix for the target market. 
B)  evaluating relative market segments. 
C)  eliminating market segments that are cost prohibitive. 
D)  selecting specific target markets. 
E)  revising the final segmentation variables based on target selection.

Question 20

Crisco is an all-vegetable shortening which helps cooks around the globe create better-tasting meals for their families. The company is part of Procter & Gamble and Crisco was developed in 1911. They released their first print advertisement in 1912 and focused on how Crisco could be used as a replacement to lard and butter. Crisco is still a dominant brand today and many families have the familiar blue tub of Crisco in their pantry as well as a container of liquid vegetable oil to use when cooking. Crisco believes its market is _______, where individuals have similar needs for the product and therefore utilize a _________ targeting strategy as they can incorporate a single marketing mix and direct it at the entire market for their sugar products.

Accepted Answer

A)  homogeneous; undifferentiated 
B)  heterogeneous; undifferentiated 
C)  homogeneous, differentiated 
D)  heterogeneous, differentiated 
A)  homogeneous; undifferentiated 
B)  heterogeneous; undifferentiated 
C)  homogeneous, differentiated 
D)  heterogeneous, differentiated

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

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?

How do business markets differ from consumer markets?

Which of these statements is not true about business markets?

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as

Individuals' ability to buy depends on the strength of their buying power.

Using the breakdown approach to sales potential, estimates are made

Segmentation variables are usually grouped into four categories:

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to

Age, rate of product use, location, and gender are all examples of common

Family life cycle is most typically based on

Lifestyle is a product-related variable.

Relying on executive judgment for forecasting may be adequate when

Frito-Lay Snack Foods is currently conducting market segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to

The final step in the target market selection process is

Customer-Driven Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment, Social Responsibility, and Ethics

Marketing Research and Information Systems

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product, Branding, and Packing Concepts

Developing and Managing Goods and Services

Pricing Concepts and Management

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Filters

Exam 5: Target Market Segmentation and Evaluation

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

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?

How do business markets differ from consumer markets?

Which of these statements is not true about business markets?

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as

Individuals' ability to buy depends on the strength of their buying power.

Using the breakdown approach to sales potential, estimates are made

Segmentation variables are usually grouped into four categories:

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to

Age, rate of product use, location, and gender are all examples of common

Family life cycle is most typically based on

Lifestyle is a product-related variable.

Relying on executive judgment for forecasting may be adequate when

Frito-Lay Snack Foods is currently conducting market segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to

The final step in the target market selection process is

Customer-Driven Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment, Social Responsibility, and Ethics

Marketing Research and Information Systems

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product, Branding, and Packing Concepts

Developing and Managing Goods and Services

Pricing Concepts and Management

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Filters