Question 1

If your firm uses a ______________ targeting strategy, you can expect to need __________ production processes to support the strategy.

Accepted Answer

A) concentrated; more 
B) differentiated; more 
C) undifferentiated; more 
D) differentiated; less 
E) concentrated; less 
A) concentrated; more 
B) differentiated; more 
C) undifferentiated; more 
D) differentiated; less 
E) concentrated; less

Question 2

Motives can be used to segment markets.

Accepted Answer

A) True 
 B)False

Question 3

When a business has a relatively small number of customers, a preferred method of forecasting is

Accepted Answer

A) regression analysis. 
B) trend analysis. 
C) the Delphi technique. 
D) a market test. 
E) a customer forecasting survey. 
A) regression analysis. 
B) trend analysis. 
C) the Delphi technique. 
D) a market test. 
E) a customer forecasting survey.

Question 4

Lifestyle analysis focuses on people's activities, interests, and opinions.

Accepted Answer

A) True 
 B)False

Question 5

The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is

Accepted Answer

A) the regression method. 
B) customer forecasting. 
C) a market test. 
D) sales force forecasting. 
E) time series analysis. 
A) the regression method. 
B) customer forecasting. 
C) a market test. 
D) sales force forecasting. 
E) time series analysis.

Question 6

If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is

Accepted Answer

A) lifestyle. 
B) motives. 
C) personality. 
D) benefit expectations. 
E) personality attributes. 
A) lifestyle. 
B) motives. 
C) personality. 
D) benefit expectations. 
E) personality attributes.

Question 7

Comcast offers different types of cable packages.Its digital economy has over 45 channels.Its digital preferred package offers over 220 channels.Its XFINITY TV 200 Latino offers over 150 channels,including more than 50 Spanish channels.What type of segmentation variable is Comcast likely using when developing its different packages?

Accepted Answer

A) Geodemographic 
B) Demographic 
C) Geographic 
D) Psychographic 
E) Behavioristic 
A) Geodemographic 
B) Demographic 
C) Geographic 
D) Psychographic 
E) Behavioristic

Question 8

Marketers use a variety of characteristics to segment markets they are interested in pursuing. When segmenting consumer markets, demographic variables are normally used. All of the following are demographic characteristics used by marketers to segment markets except

Accepted Answer

A) age. 
B) social class. 
C) family size. 
D) hometown. 
E) marital status. 
A) age. 
B) social class. 
C) family size. 
D) hometown. 
E) marital status.

Question 9

One condition for effective segmentation is that at least one segment must have substantial profit potential.

Accepted Answer

A) True 
 B)False

Question 10

A lumber firm sells wood products to both the construction industry and the retail industry. The company has the same sales representatives for both industries and often offers discounts for buying in bulk. The lumber firm sells different types of wood for each industry based on its unique characteristics. For instance, wood used for large construction projects must have a higher grade and quality than wood used for home improvement projects. Which type of segmentation is the lumber firm most likely to use?

Accepted Answer

A) Type of organization 
B) Geographic 
C) Benefit 
D) Psychographic 
E) Customer size 
A) Type of organization 
B) Geographic 
C) Benefit 
D) Psychographic 
E) Customer size

Question 11

Discuss the differences between the breakdown and buildup approaches to measuring company sales potential. What are the similarities between these two approaches?

Accepted Answer

The two general approaches that measure

Question 12

Which of the following is an example of benefit segmentation?

Accepted Answer

A) A cigarette manufacturer separates the market into heavy users who smoke at least one pack a day, moderate users who smoke less than a pack, and the occasional user who smokes cigarettes or cigars only for special occasions. 
B) Colgate-Palmolive markets three types of toothpaste: toothpaste with fluoride to strengthen tooth enamel, toothpaste with whitening properties, and toothpaste for sensitive gums. 
C) REI has one line of bikes geared toward active bicyclists who bike everywhere and a line geared toward those who bicycle simply for recreational purposes. 
D) Lego has certain lines of Legos geared toward children and other lines targeted toward adult collectors. 
E) Michelin develops a more durable type of tire for the Southwestern market due to the impact hotter climate conditions can have on tires. 
A) A cigarette manufacturer separates the market into heavy users who smoke at least one pack a day, moderate users who smoke less than a pack, and the occasional user who smokes cigarettes or cigars only for special occasions. 
B) Colgate-Palmolive markets three types of toothpaste: toothpaste with fluoride to strengthen tooth enamel, toothpaste with whitening properties, and toothpaste for sensitive gums. 
C) REI has one line of bikes geared toward active bicyclists who bike everywhere and a line geared toward those who bicycle simply for recreational purposes. 
D) Lego has certain lines of Legos geared toward children and other lines targeted toward adult collectors. 
E) Michelin develops a more durable type of tire for the Southwestern market due to the impact hotter climate conditions can have on tires.

Question 13

If Braum's calculates that it could sell up to 25% of all ice cream cones sold in the United States, this percentage would represent the ice cream marketer's

Accepted Answer

A) target growth rate. 
B) sales forecast. 
C) sales objective. 
D) company sales potential. 
E) market potential. 
A) target growth rate. 
B) sales forecast. 
C) sales objective. 
D) company sales potential. 
E) market potential.

Question 14

The term market density refers to the number of potential customers per unit of land area, such as per square mile.

Accepted Answer

A) True 
 B)False

Question 15

Frito-Lay is currently conducting market segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to

Accepted Answer

A) determine which segmentation variables to use. 
B) develop market segment profiles. 
C) identify the appropriate targeting strategy. 
D) select specific target markets. 
E) develop sales forecasts. 
A) determine which segmentation variables to use. 
B) develop market segment profiles. 
C) identify the appropriate targeting strategy. 
D) select specific target markets. 
E) develop sales forecasts.

Question 16

The sales forecast differs from the company sales potential in that it focuses on

Accepted Answer

A) the maximum percentage share of a market that an individual firm within an industry can expect to capture for a specific product. 
B) the minimum percentage share of a market that an individual firm within an industry can expect to capture for a specific product. 
C) what actual sales will be at a certain level of company marketing effort. 
D) what executives believe sales will be at a certain level of company marketing effort. 
E) what competitors' sales will be at a certain level of company marketing effort. 
A) the maximum percentage share of a market that an individual firm within an industry can expect to capture for a specific product. 
B) the minimum percentage share of a market that an individual firm within an industry can expect to capture for a specific product. 
C) what actual sales will be at a certain level of company marketing effort. 
D) what executives believe sales will be at a certain level of company marketing effort. 
E) what competitors' sales will be at a certain level of company marketing effort.

Question 17

Baby Bar is a baby boutique that sells luxury baby items. It is located in Los Angeles. The owner has been highly successful over the years and has decided to open another store in San Diego. However, sales at this store have been low. The owner asked a marketing consultant for advice about what went wrong. The consultant says the location is not ideal for the market. The owner located his store in a high-income area, but most of the people in the area are singles or retired couples. Instead, the owner should have used ____________ to identify an area of the city with higher-income neighborhoods characterized by couples who want only the best for their newborn babies.

Accepted Answer

A) demographic segmentation 
B) behavioristic segmentation 
C) benefit segmentation 
D) geodemographic segmentation 
E) family life cycle 
A) demographic segmentation 
B) behavioristic segmentation 
C) benefit segmentation 
D) geodemographic segmentation 
E) family life cycle

Question 18

The marketer uses segmentation variables to divide a market into segments. All of the following statements are true about segmentation variables except:

Accepted Answer

A) The variables should be related to the customer's needs relative to the product being marketed. 
B) The variables must be measurable. 
C) The variables should be based solely on demographic characteristics. 
D) The variables should be related to the customer's behavior relative to the product being marketed. 
E) The variables should be related to the customer's uses of the product being marketed. 
A) The variables should be related to the customer's needs relative to the product being marketed. 
B) The variables must be measurable. 
C) The variables should be based solely on demographic characteristics. 
D) The variables should be related to the customer's behavior relative to the product being marketed. 
E) The variables should be related to the customer's uses of the product being marketed.

Question 19

In a customer forecasting survey, a marketer would question customers about the types and quantities of products they intend to buy during a specific time period.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is the division of a market according to benefits that consumers want from the product?

Accepted Answer

A) Geodemographic segmentation 
B) Market density 
C) Benefit segmentation 
D) Concentrated segmentation 
E) Differentiated segmentation 
A) Geodemographic segmentation 
B) Market density 
C) Benefit segmentation 
D) Concentrated segmentation 
E) Differentiated segmentation

If your firm uses a ____ targeting strategy, you can expect to need production processes to support the strategy.

Motives can be used to segment markets.

When a business has a relatively small number of customers, a preferred method of forecasting is

Lifestyle analysis focuses on people's activities, interests, and opinions.

The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is

If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is

Marketers use a variety of characteristics to segment markets they are interested in pursuing. When segmenting consumer markets, demographic variables are normally used. All of the following are demographic characteristics used by marketers to segment markets except

One condition for effective segmentation is that at least one segment must have substantial profit potential.

Discuss the differences between the breakdown and buildup approaches to measuring company sales potential. What are the similarities between these two approaches?

Which of the following is an example of benefit segmentation?

If Braum's calculates that it could sell up to 25% of all ice cream cones sold in the United States, this percentage would represent the ice cream marketer's

The term market density refers to the number of potential customers per unit of land area, such as per square mile.

Frito-Lay is currently conducting market segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to

The sales forecast differs from the company sales potential in that it focuses on

The marketer uses segmentation variables to divide a market into segments. All of the following statements are true about segmentation variables except:

In a customer forecasting survey, a marketer would question customers about the types and quantities of products they intend to buy during a specific time period.

Which of the following is the division of a market according to benefits that consumers want from the product?

Customer-Driven Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment, Social Responsibility, and Ethics

Marketing Research and Information Systems

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product, Branding, and Packaging Concepts

Developing and Managing Goods and Services

Pricing Concepts and Management

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Filters

Exam 5: Target Market Segmentation and Evaluation

If your firm uses a ______________ targeting strategy, you can expect to need __________ production processes to support the strategy.

Motives can be used to segment markets.

When a business has a relatively small number of customers, a preferred method of forecasting is

Lifestyle analysis focuses on people's activities, interests, and opinions.

The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is

If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is

Marketers use a variety of characteristics to segment markets they are interested in pursuing. When segmenting consumer markets, demographic variables are normally used. All of the following are demographic characteristics used by marketers to segment markets except

One condition for effective segmentation is that at least one segment must have substantial profit potential.

Discuss the differences between the breakdown and buildup approaches to measuring company sales potential. What are the similarities between these two approaches?

Which of the following is an example of benefit segmentation?

If Braum's calculates that it could sell up to 25% of all ice cream cones sold in the United States, this percentage would represent the ice cream marketer's

The term market density refers to the number of potential customers per unit of land area, such as per square mile.

Frito-Lay is currently conducting market segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to

The sales forecast differs from the company sales potential in that it focuses on

The marketer uses segmentation variables to divide a market into segments. All of the following statements are true about segmentation variables except:

In a customer forecasting survey, a marketer would question customers about the types and quantities of products they intend to buy during a specific time period.

Which of the following is the division of a market according to benefits that consumers want from the product?

Customer-Driven Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment, Social Responsibility, and Ethics

Marketing Research and Information Systems

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product, Branding, and Packaging Concepts

Developing and Managing Goods and Services

Pricing Concepts and Management

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Filters

If your firm uses a ____ targeting strategy, you can expect to need production processes to support the strategy.