Exam 5: Target Market Segmentation and Evaluation

When a firm's management is making the final selection of specific target markets to enter, it should consider whether the organization has the financial resources, managerial skills, expertise, and facilities needed to effectively compete in the selected segments.

Your marketing team is having a brainstorming session to finalize your target marketing strategy. To make sure all team members are on the same page, you make the following statement to keep the discussions focused: ​ If we determine that the needs of the customers we are targeting are ______________, then we need to pursue a _______________ targeting strategy.

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ____ markets.

The manager at a local recreational vehicle store, Off-Road Options, believes the next two years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a ____ approach to estimating sales potential.

Why would a company use the undifferentiated strategy?

Eric works as a manager in the marketing department of a pharmaceutical firm. The time has come to develop sales forecasts for the next year. This year the company wants to increase the reliability of the sales forecast. Eric was asked to participate in this process because of his extensive market knowledge. He joins a group of other experts in the area. Individuals in Eric's group all submit their own forecasts. These forecasts are then averaged, and the results are given back to the group so they can refine them. The intent is to reach a consensus by working separately on these forecasts. What type of forecasting technique is this?

Psychographic variables are aggregate population characteristics such as the distribution of age and gender, fertility rates, migration patterns, and mortality rates.

The final step in the target market selection process is

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables.

Why is it important for marketers to assess competitors before entering a market segment?

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ____ targeting strategy for laundry detergents.

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

What are the major steps of the target market selection process?

When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) ____ strategy.

When using personality characteristics as a market segmentation variable, marketers generally

When markets are comprised of people with differing product needs, the marketing manager should use a(n) ____ strategy.

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

Amanda's team is analyzing target markets for the company's new product idea. Her group is currently considering the different factors it should adopt to divide the market. A major part of this decision involves the customers' needs for, uses of, or behavior toward the product. At which stage of the target market selection process are Amanda and her team currently?

Describe the three areas marketers should examine when they evaluate relevant market segments.

The Cup is a small shop in a small Pennsylvania town with a very loyal following. It has become well known in the town as well as in many of the towns surrounding it. Consumers seem to love the homey, local feel of The Cup. As a result, The Cup would like to open a new store in one of the towns close by. It has identified a region it thinks could be profitable. It has many loyal customers who live in that town. However, the town is also home to a Starbucks store. The town is growing, and The Cup has heard rumors that a Dunkin' Donuts may open. The owner is currently evaluating the relevant market segments in the area (Step 4). He has the following questions he wants to answer:1. Do we have enough of a loyal following as a local shop that we can attract customers away from Starbucks? 2. With the town growing as fast as it is, will other coffee shops decide to locate there? The owner is conducting a _____________ to evaluate relevant market segments.