Exam 5: Target Market Segmentation and Evaluation

The first step in the target market selection process is

____ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments.

Miss Moo produces a line of milk products that are lactose-free. The milk comes in pint, quart, and half-gallon cartons, as well as 18-ounce glass bottles. Miss Moo sells its pint cartons to school systems, its quart and half-gallon cartons to grocery stores, and its glass bottles to vending machine operators. Miss Moo appears to use a(n) _____ strategy in marketing its product to a target market that is likely to be _______.

Which of the following is not a factor cited in the text that affects the strategy for selecting a target market?

Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in ____ segmentation.

Which of the following is not a requirement or characteristic of a market?

Identify the four major categories of segmentation of variables for consumer products, and give three examples of each.

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

Lifestyle is a product-related variable.

Which of the following is not true with regard to company sales potential for a market segment?

Alps Ski Co is looking for new markets for both its brick and mortar retail stores and its catalog division. Alps Ski Co would most likely use a(n) ______ base for market segmentation of its stores and a(n) ______ base for market segmentation of its catalog division.

A company sales forecast is the amount of a product that a company expects to sell during a specific time period at a specified level of marketing activities.

You have just been promoted to vice president of marketing for your firm. Unlike your predecessor, you believe the firm can increase its sales in a market by focusing on more than one segment of the market. You recognize to do this means your firm will incur higher production costs. Based on this information, which of the following targeting strategies are you advocating?

A competitive assessment may reveal that a market segment that initially seemed attractive may not be worth pursuing.

When evaluating market segments, assessment of competitors is important because

Kathryn wants to open up a clothing store. The target market she selects will largely determine the type of product she sells. She has performed research and come up with three market segments that she thinks could be profitable: formal wear for special events, stylish but high-end clothes for consumers who use clothing as a status symbol, and casual clothing for those whose main concern is comfort. Kathryn has used sales estimates, competitive assessments, and cost estimates to determine the potential profitability of each segment. What is Kathryn's next step in the process?

Surveys are sometimes used to forecast sales.

A market segment profile provides customers with an understanding of how a business can use its capabilities.

After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is

Market segment profiles help determine the most desirable segment or segments in relation to the firm's strengths, weaknesses, objectives, and resources.