Exam 5: Target Market Segmentation and Evaluation

If Deckers Inc, a producer of home siding, decking, and other wood products, focused its marketing efforts to home construction companies only, it would be using a(n) ____ strategy. If it sold the same products to both construction companies and DIY retailers such as Home Depot, it would be using a(n) ____ strategy.

Sellers of farm produce would be likely to use an undifferentiated targeting strategy.

Which of the following statements about market segment profiles is true?

A market is a group of people who, as individuals, have needs for products in a product class and have the ability, willingness, and authority to purchase such products.

Estimating the cost of entering a market and focusing on a specific target segment is important because

One problem with using psychographic variables for segmentation purposes is that they are difficult to measure accurately.

The process of dividing a total market into market groups because people within each group have relatively similar product needs is called

Anheuser-Busch may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on

The information yielded by market segment profiles usually is not very useful later in the marketing process.

Miranda has a great idea for a new shoe store. When she first conceived of the idea, she believed her target market would be the entire shoe market. However, as she learned more about marketing, she realized that different types of consumers were looking for different types of footwear. She also learned that some segments of the population would be much more profitable than others. Miranda has used a number of variables to divide the market into different groups, including those that use shoes as a status symbol, those that use shoes for sports, and those who wear shoes simply because they are comfortable. At what stage of the target market selection process is Miranda currently?

Family life cycle is most typically based on

Which of the following variables would most likely be used to segment a business market?

The producers of Imperial Sugar sell cane sugar in five-pound bags, one-pound bags, and one-pound boxes. When developing its advertising strategy, Imperial will most likely use a(n) ____ approach in defining a target market.

Miranda is pet-sitting for a friend's dog while he is on vacation. Her friend has given Miranda all sorts of information, including the veterinarian's name and phone number, pet emergency center location, and the dog's favorite bedtime snack. The first evening of the vacation, Miranda realizes that her friend did not bring the dog's food over, and she has no idea what the dog eats. Her friend's cell phone is "out of range" at the moment, so Miranda must go to the grocery store and shop for dog food, even though she has never bought it before now. In this case, even though Miranda is not a dog owner, she is likely to be part of the market for dog food for all of the following reasons except

____________ is a useful sales forecasting method as long as a precise relationship between past sales figures and one or more variables can be established. Without these relationships, this method is useless in forecasting future sales.

Which of the following is the biggest drawback to using psychographic variables?

Generally speaking, individuals who are unemployed would not be considered a target market for lawn care services because

How do business markets differ from consumer markets?

Through market tests, a forecaster gains data regarding consumers' intended purchases.

When selecting the specific target market, the firm must consider the possibility that the requirements of some market segments are at odds with the firm's overall objectives.