Exam 5: Target Market Segmentation and Evaluation

Beats by Dr. Dre (Beats) is a leading audio brand founded in 2006 by Dr. Dre and Jimmy Iovine and was acquired by Apple Inc. in 2014. Beats has become a favorite brand among consumers who enjoy listening to music. It is also somewhat of a status brand. The company markets a variety of products including headphones, earphones, speakers, and accessories. The product managers for the Beats product groups are involved in the sales forecast processes for their products, which is important to ensuring strong support for retailers and customers as well as to achieve sales objectives. The product managers hire experts to create initial forecasts, submit them to the company for averaging, and have the results returned to them so they can make individual refined forecasts. The procedure is iterative and may be repeated several times until the experts who are working independently reach a consensus. The process typically results in a very reliable sales forecast. What type of sales forecasting method do the product managers of Beats use?

DeRonnius has just become the new marketing analyst for a company that produces vinyl siding for homes. In an effort to forecast his firm's sales for the coming year, he needs to find where the greatest opportunities are for selling his product. DeRonnius looks at the sales for the last five years and calculates a growth trend. He then collects data from a combination of other factors, such as population density, family size, home ownership, and per capita income. Finally, DeRonnius looks at the correlation between the sales trend data and the various combinations of demographic data. DeRonnius is employing the ____ forecasting method for the sales growth trend and the ________ method for the correlation.

Leah is an award-winning fiction writer. She works out of her apartment. She recently purchased a new desk in which to store her manuscripts and for use when typing up stories for publication. Leah is part of the business market for the desk manufacturer.

Spectrum uses a segmentation strategy for its cable TV packages based on market characteristics such as age, gender, or income. Which of the following segmentation variables is Spectrum using?

Bradley 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. Bradley likely used which sales forecasting technique?

The first step of the target market selection process is identifying the appropriate targeting strategy; the last step is evaluating relevant market segments.

Why do marketers rely heavily on demographic characteristics when segmenting consumer markets?

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

The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the

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

What is the main problem with using a market test as a forecasting tool?

You are shopping for a laptop or tablet to use for taking notes, research, and studying. In this case, you belong to a(n)

Segmentation variables are usually grouped into four categories:

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 _____.

The first step in the breakdown approach is developing a general economic forecast for a specific time period.Which of the following is the second step?

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

The sales forecasting method that consists of making a product available to buyers in one or more locations and measuring purchase response is

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as

Chevrolet 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?

Which of the following products is most likely to have its market segment based on age?