Exam 6: Target Markets: Segmentation and Evaluation

In developing a company sales forecast, the forecasting methods are limited to surveys and correlation methods.

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.

A marketer may segment a market in terms of the benefits that customers expect to receive from a particular product.

When the needs of individual consumers in a target market for a specific product are similar and the organization can satisfy most customers with a single marketing mix, the best approach to use may be the ____ strategy.

The executive judgment method of sales forecasting is very accurate in predicting future sales.

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 _____.

Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a homebuilder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number of builders in the territory. He is using a ____ approach to measure sales potential.

Through market tests, a forecaster gains data regarding consumers' intended purchases.

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

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.

A company sometimes defines a total market as its target market.

Relying on executive judgment for forecasting may be adequate when

A firm operating in a one-state market would not regionalize its market.

To find a target market, a firm can use the

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

Brian works for a manufacturer of sports equipment and is currently developing a company sales forecast for golf clubs. While reviewing data, he discovered a pattern in sales volume over the past ten years that peaked during two months of each year. Brian likely used which sales forecasting technique?

Trend analysis is a sales forecasting technique based on historical sales data.

The undifferentiated targeting strategy for finding a target market will likely not be successful if

Generally speaking, individuals who are unemployed would not be considered a target market for lawn care services because

The amount of product a company expects to sell during a specific period at a specified level of marketing activity is called the