Exam 10: Developing a Target Market Strategy

One part of the chain-ratio method relies on market share analysis.

Basic identifiable characteristics of towns, cities, states, regions, and countries may be described through

Which target market approach is best for a firm seeking the mass market?

Which of the following is a form of the market buildup method of sales forecasting?

Test marketing is an especially appropriate sales forecasting technique for an existing product.

A market segment is best illustrated as a

The use of NAICS codes and end-use analysis to determine the unique needs of organizational consumer segments represents the use of geographic demographics.

Benefit segmentation may be difficult to implement because it requires a firm to determine a consumer's real (versus stated) purchase motives.

The term "market" applies to both final and organizational consumers.

A firm knows that there are 200,000 households in a given community, and that 35 percent of them own at least one home computer. The firm estimates that 5 percent of the home personal computers will require servicing in a given year, and that it will have a 10 percent market share. The company is using what sales forecasting technique?

A marketing research study by a motor oil refiner finds that rural area homeowners are much more apt to change their car's oil themselves rather than use a mechanic or a quick-oil-change service. As a result, the firm is increasing its sales of motor oil in rural areas to such mass merchandisers as Kmart and Wal-Mart. Which segmentation base is the firm using?

The Following Questions are linked to this scenario: A fuel-oil retailer has researched the demand patterns for fuel oil in its market area. -A preliminary study of demand revealed that 30 percent of the buyers are concerned primarily with price and would quickly switch vendors if offered a cost savings of at least 15 percent over their current cost. In contrast, 70 percent were more concerned with service. Important services, in order of importance, are emergency repair, low-cost heating system warranties, credit, and an annual heating system check-up. What demand pattern for fuel oil exists?

American lifestyles are divided into eight major categories-innovators, thinkers, believers, achievers, strivers, experiencers, makers, and survivors-in

A manufacturer of pre-cooked meals wants to change its marketing strategy to increase sales and to lower costs. It plans to shift from offering a selection of Greek and Italian foods to now offering only Italian pasta-based dishes. This manufacturer is moving away from

A company has actual sales of $200,000; its sales potential is $400,000; and its actual market share is 40 percent. Its sales penetration is

In comparison with homogeneous demand, diffused demand

Which target market strategy seeks to appeal to the largest target market with a single marketing strategy?

Sales penetration refers to the degree to which a firm achieves its sales forecast. It equals actual sales divided by the sales forecast.

The most difficult type of demand pattern to satisfy is clustered demand.

Brand loyalty, usage rate, and perceived risk are studied with which possible base of market segmentation?