Exam 6: Target Markets: Segmentation and Evaluation

Which of the following variables would most likely be used to segment a business market?

Several conditions must exist for market segmentation to be successful.These conditions include all of the following except

Interior Designs Inc.sells expensive custom-made draperies,bedding,and accessories through sales representatives who are also interior designers.It also has another,slightly less expensive line that it sells through stores such as Nordstrom's and Saks Fifth Avenue.Interior Designs Inc.is most likely using a(n)____ targeting strategy.

Which of these statements is not true about business markets?

What are the conditions under which an undifferentiated targeting strategy is effective? Why are these conditions essential?

A segmentation variable is used to group smaller markets into one larger market.

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

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

One way marketers can segment business markets is according to their geographic location.

A firm ordinarily uses the same sales forecasting method for determining short-range and long-range sales forecasts.

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

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

Mia is pet-sitting for a friend's dog while he is on vacation.Her friend has given Mia all sorts of information,including the veterinarian's name and phone number,pet emergency center location,and the dog's favorite bedtime snack.The first evening of the vacation,Mia realizes that her friend did not bring the dog's food over,and she has no idea what the dog eats.Her friend's cell phone is "out of range" at the moment,so Mia must go to the grocery store and shop for dog food,even though she has never bought it before now.In this case,even though Mia is not a dog owner,she is likely to be part of the market for dog food for all of the following reasons except _______.

Why would a company use the undifferentiated strategy?

Discuss the differences between the breakdown and buildup approaches to measuring company sales potential.What are the similarities between these two approaches?

A market segment profile deals primarily with demographic characteristics.

A market segment profile may cover such aspects as demographic characteristics,geographic factors,product benefits sought,lifestyles,brand preferences,and usage rates.

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.

Scenario 6.2 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 6.2.Currently,GE uses several sales forecasting methods.One method is to sell the different locomotive engines to buyers in different countries,and then measuring the purchasing response in each.In this case,GE Transportation is using the _____ method to forecast future sales.

The final step in the target market selection process is