Exam 5: Target Market Segmentation and Evaluation

Bethlehem Steel provides steel for a variety of uses to its various customers. Customers have different needs for the steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is

Which of the following forecasting methods is least dependent on historical sales data?

Market segment profiles are used to describe _____________ members of a market segment, and to explain ______________members in separate market segments.

The Pillsbury company defines all individual consumers who are purchasers of flour as its target market. It also defines all businesses who purchase flour as its target market. What targeting strategy would be most appropriate in this case?

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

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) ____ strategy. undifferentiated

Use the following to answer the questions. Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Currently, Lil' Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services. Refer to Scenario 5.1. In calculating the sales forecast for the next year, marketers at Lil' Angels use data from the past five years in order to identify any trends that surface. Additionally, marketers want to find out what family variables relate to those sales. Which of the following variables should the marketers use in relating to sales? What type of forecast method will they be using to relate the variables to sales trends?

____________ is a useful sales forecasting method as long as a precise relationship between past sales figures and one or more variables can be established. Without these relationships, this method is useless in forecasting future sales.

You have just been promoted to vice president of marketing for your firm. Unlike your predecessor, you believe the firm can increase its sales in a market by focusing on more than one segment of the market. You recognize to do this means your firm will incur higher production costs. Based on this information, which of the following targeting strategies are you advocating?

 Surveys are sometimes used to forecast sales.

Estimating the cost of entering a market and focusing on a specific target segment is important because

An undifferentiated targeting strategy does not target a single market with one marketing mix.

Only one variable can be used to segment a market.

Prodigy Placement is a private elementary school located in the center of Manhattan. Students at the school are considered in the top 1% of their age group in terms of IQ scores and aptitude. Parents who want to send their children to the school must get on a waiting list as soon as the child is 12 months old and must make a deposit of $5,000 to the school in order to hold the child's "application" until they reach the age of 5 years. Emma's parents put her on the waiting list at the age of 1 year and paid the deposit; however, when Emma became five years old, she did not want to attend the school even though she tested above the requirement. Her parents made the decision to enroll her for the upcoming school year. In this case, Emma ___ part of the market for Prodigy Placement, and her parents ____ part of the market

Motives can be used to segment markets.

In order for the marketer to achieve effective market segmentation, which of the following conditions must exist:

A person who has buying power also has the authority to buy.

Ride Snowboard Company was founded in 1992 and now based in Seattle, Washington. The company estimates that snowboard enthusiasts typically spend about $600 annually on gear even though they only get on the slopes about 50 days a year. However, Ride products are available in markets where the typically customer can average 30 days on the slopes using their equipment so Ride ensures that they have store outlets near ski resorts such as Colorado, Vermont, and Utah. What type of segmentation variable does Ride utilize when selecting locations for its retail outlets?

Crest toothpaste is available in several different versions, such as Crest Whitening, Crest Tartar Control, Crest Whitening with mouthwash, and Crest Total Effects. Given these different variations of the product, it appears that the marketers of Crest are segmenting the market by using ____ segmentation.

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