Exam 5: Target Market Segmentation and Evaluation

When evaluating relevant market segments, cost estimates are important to determine if an organization entering a particular segment can operate at costs equal to or below those of competitors.

Micromarketing is

Several conditions must exist for market segmentation to be successful. These conditions include all of the following except

In your regular goods and services consumption activities, you purchase products for resale and for use in your daily operations. You also purchase products that you will use to produce other products. Based on this information, which of the following best describes the type of market you are part of?

The types of surveys used to forecast sales are customer, executive, and competitor surveys.

There are only two basic strategies for selecting target markets: the undifferentiated targeting strategy and the concentrated targeting strategy.

With its Venus razor, Gillette was the first marketer to offer a triple blade razor specifically designed for women. This is an example of market segmentation using ____ variables.

The Guitar Center is a music superstore selling instruments, sound equipment, lighting, as well as DJ, band, and orchestra products. The Guitar Center plans to continue its growth across the country by opening 15 to 20 new stores each year. The Guitar Center has recognized that it has several market segments, including professional musicians, DJ businesses, and consumers who purchase instruments for school band and orchestra. The company has developed a detailed description of these various customer segments. These detailed descriptions include information such as demographic characteristics-age, income, and education level-as well as an individual's preferences regarding what brands of instruments they purchase, how frequently they visit the store to make a purchase, how much time they spend in the store, and the percent of time they select The Guitar Center to make a purchase. What step in the target market selection process has The Guitar Center completed by describing their target market customers?

Which of the following statements about the undifferentiated targeting strategy is false?

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.

Home Aura 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. Home Aura is most likely using a(n) ____ targeting strategy.

Mrs. Baird's is attempting to forecast sales for a new ice cream cake. To come up with an accurate forecast, Mrs. Baird's places the product in Atlanta supermarkets for a period of four months. In this instance, Mrs. Baird's is using which forecasting method?

Consideration of the firm's overall objectives usually does not influence the final selection of a target market segment.

The two general approaches to measuring company sales potential are the breakdown and the buildup approach.

The ways in which customers use a particular product may be a basis for segmenting the market.

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is

A marketer can use regression analysis techniques to predict the sales of new products.

The marketing manager for Gillette razors is attempting to determine a sales estimate for the line of products that provide men with the ability to maintain their facial hair using a traditional razor or an electric razor. The marketing manager estimates that Gillette has a strong level of loyalty and brand name appeal and will garner 20% of the overall market. This amount is known as the _______. In addition, the marketing manager believes the total sales for the category will be $30 million annually for razors and razor blades for men. This is known as the ______________.

Seller Company sells small refrigerators. It usually sells these refrigerators to hotels and offices. However, sometimes its customers choose to buy their refrigerators because they do not have a lot of room for a full-size refrigerator in their houses and apartments. Its primary market is the _____________ market, but it also sells to the _____________ market.

Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product?