Exam 5: Target Market Segmentation and Evaluation

The four requirements of a market are that the individuals in the market must have a need for the product and the ability, willingness, and authority to buy it.

A business advantage of the concentrated targeting strategy for any company is that it

The purpose of market segmentation is to

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

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

A market segment profile describes the similarities among potential customers within a segment and explains the differences among people across market segments.

A disadvantage of the concentrated targeting strategy is that

PepsiCo would be able to use a customer forecasting survey to forecast future sales effectively.

Why is it important for marketers to estimate sales potential for the entire industry as well as for the individual company?

Prodigy Progress is a private elementary school located in the center of Dallas. Students at the school are considered in the top 1% of their age group in terms of IQ scores and aptitude. Parents who want to send their children to the school must get on a waiting list as soon as the child is 12 months old and must make a deposit of $5,000 to the school in order to hold the child's "application" until they reach the age of 5 years. Claire's parents put her on the waiting list at the age of 1 year and paid the deposit; however, when Claire became 5 years old, she did not want to attend the school even though she tested above the requirement. Her parents made the decision to enroll her for the upcoming school year. In this case, Claire ___ part of the market for Prodigy Progress, and her parents ____ part of the market because ____.

Why would a firm survey its sales force to forecast company sales? Why would a firm choose an expert forecasting survey instead?