Question 1

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

Accepted Answer

A) the total market should be divided so that segments can be compared on sales potential, costs, and profits. 
B) customers' needs for the product must be homogeneous. 
C) the company must be able to reach the chosen segment with a particular marketing mix. 
D) segments must be identifiable and divisible. 
E) at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment. 
A) the total market should be divided so that segments can be compared on sales potential, costs, and profits. 
B) customers' needs for the product must be homogeneous. 
C) the company must be able to reach the chosen segment with a particular marketing mix. 
D) segments must be identifiable and divisible. 
E) at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment.

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

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

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not a characteristic of a consumer market?

Accepted Answer

A) it consists of purchasers who intend to consume or benefit from the purchased products 
B) they do not buy products for the main purpose of making a profit 
C) they are sometimes referred to as B2C markets 
D) their purchasing decisions are always made by only one individual 
E) they may buy the product, but not use it themselves 
A) it consists of purchasers who intend to consume or benefit from the purchased products 
B) they do not buy products for the main purpose of making a profit 
C) they are sometimes referred to as B2C markets 
D) their purchasing decisions are always made by only one individual 
E) they may buy the product, but not use it themselves

Question 5

A differentiated targeting strategy is when the organization targets two or more markets by developing a single marketing mix.

Accepted Answer

A) True 
 B)False

Question 6

The ability to purchase a product is a function of

Accepted Answer

A) buying power. 
B) desire. 
C) willingness. 
D) authority. 
E) needs. 
A) buying power. 
B) desire. 
C) willingness. 
D) authority. 
E) needs.

Question 7

The sum of firms' marketing efforts equals industry marketing efforts.

Accepted Answer

A) True 
 B)False

Question 8

The ways in which customers use a particular product may be a basis for segmenting the market.

Accepted Answer

A) True 
 B)False

Question 9

Only one variable can be used to segment a market.

Accepted Answer

A) True 
 B)False

Question 10

When evaluating relevant market segments, cost estimates are important to determine if an organization entering a particular segment can operate at costs equal to or below those of competitors.

Accepted Answer

A) True 
 B)False

Question 11

The primary advantage of a concentrated targeting strategy is

Accepted Answer

A) it meets the needs of a wide range of consumers. 
B) it allows a firm to specialize to meet specific customer needs. 
C) it is more flexible than any other approach. 
D) it is the least risky targeting approach. 
E) its customers are the most willing to repurchase the same brands. 
A) it meets the needs of a wide range of consumers. 
B) it allows a firm to specialize to meet specific customer needs. 
C) it is more flexible than any other approach. 
D) it is the least risky targeting approach. 
E) its customers are the most willing to repurchase the same brands.

Question 12

The concentrated targeting strategy is one in which an organization directs its marketing efforts toward a single market segment through one marketing mix.

Accepted Answer

A) True 
 B)False

Question 13

Consideration of the firm's overall objectives usually does not influence the final selection of a target market segment.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Intuition and expediency are primary characteristics of which of the following sales forecasting methods?

Accepted Answer

A) Surveys 
B) Executive judgment 
C) Cycle analysis 
D) Market tests 
E) Industry indicators 
A) Surveys 
B) Executive judgment 
C) Cycle analysis 
D) Market tests 
E) Industry indicators

Question 16

Subaru is producing a new seven-passenger van with all-wheel drive. Which of the following would be the best variables for segmenting the market for this new model?

Accepted Answer

A) Gender and age 
B) Geographic location and family life cycle 
C) Income and geographic location 
D) Family life cycle and income 
E) Geographic location and gender 
A) Gender and age 
B) Geographic location and family life cycle 
C) Income and geographic location 
D) Family life cycle and income 
E) Geographic location and gender

Question 17

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. Researchers at GE Transportation estimate that 1,000 rail lines throughout the world will purchase some kind of locomotive engine next year. That number represents the

Accepted Answer

A) company sales potential. 
B) breakdown approach. 
C) market potential. 
D) buildup approach. 
E) company sales forecast. 
A) company sales potential. 
B) breakdown approach. 
C) market potential. 
D) buildup approach. 
E) company sales forecast.

Question 18

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?

Accepted Answer

A) Concentrated 
B) Undifferentiated 
C) Wide appeal 
D) Differentiated 
E) Clustered 
A) Concentrated 
B) Undifferentiated 
C) Wide appeal 
D) Differentiated 
E) Clustered

Question 19

Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use of

Accepted Answer

A) market density. 
B) demographic segmentation. 
C) behavioristic segmentation. 
D) environmental segmentation. 
E) micromarketing. 
A) market density. 
B) demographic segmentation. 
C) behavioristic segmentation. 
D) environmental segmentation. 
E) micromarketing.

Question 20

What variables are used to segment business markets?

Accepted Answer

Business markets can be segmented using

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

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?

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

Which of the following is not a characteristic of a consumer market?

A differentiated targeting strategy is when the organization targets two or more markets by developing a single marketing mix.

The ability to purchase a product is a function of

The sum of firms' marketing efforts equals industry marketing efforts.

The ways in which customers use a particular product may be a basis for segmenting the market.

Only one variable can be used to segment a market.

When evaluating relevant market segments, cost estimates are important to determine if an organization entering a particular segment can operate at costs equal to or below those of competitors.

The primary advantage of a concentrated targeting strategy is

The concentrated targeting strategy is one in which an organization directs its marketing efforts toward a single market segment through one marketing mix.

Consideration of the firm's overall objectives usually does not influence the final selection of a target market segment.

Which of these statements is not true about business markets?

Intuition and expediency are primary characteristics of which of the following sales forecasting methods?

Subaru is producing a new seven-passenger van with all-wheel drive. Which of the following would be the best variables for segmenting the market for this new model?

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?

Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use of

What variables are used to segment business markets?

An Overview of Strategic Marketing

Planning Implementing and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts

Developing and Managing Products

Services Marketing

Branding and Packaging

Marketing Channels and Supply Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Setting Prices

Filters

Exam 6: Target Markets: Segmentation and Evaluation

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

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?

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

Which of the following is not a characteristic of a consumer market?

A differentiated targeting strategy is when the organization targets two or more markets by developing a single marketing mix.

The ability to purchase a product is a function of

The sum of firms' marketing efforts equals industry marketing efforts.

The ways in which customers use a particular product may be a basis for segmenting the market.

Only one variable can be used to segment a market.

When evaluating relevant market segments, cost estimates are important to determine if an organization entering a particular segment can operate at costs equal to or below those of competitors.

The primary advantage of a concentrated targeting strategy is

The concentrated targeting strategy is one in which an organization directs its marketing efforts toward a single market segment through one marketing mix.

Consideration of the firm's overall objectives usually does not influence the final selection of a target market segment.

Which of these statements is not true about business markets?

Intuition and expediency are primary characteristics of which of the following sales forecasting methods?

Subaru is producing a new seven-passenger van with all-wheel drive. Which of the following would be the best variables for segmenting the market for this new model?

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?

Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use of

What variables are used to segment business markets?

An Overview of Strategic Marketing

Planning Implementing and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts

Developing and Managing Products

Services Marketing

Branding and Packaging

Marketing Channels and Supply Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Setting Prices

Filters