Exam 5: Target Market Segmentation and Evaluation

Which of the following is not one of the major categories of consumer market segmentation variables?

Many companies today employ a sales forecasting manager or sales planner to determine the sales forecasts for individual products. Forecasting managers may utilize Excel to perform _______________, where sales is the dependent variable and a variety of other factors such as company size, annual purchases, and number of years as a customer are the independent variables. Fastenal, a reseller of tools, fasteners, and other items required for manufacturers, relies on this sophisticated and mathematical approach to forecasting sales by first utilizing historical sales data incorporating a 10-year history of sales for each product category such as different brands of tools and supplies-nuts, bolts, screws, etc. The sales forecasting manager is then able to identify the relationship between the independent variables and the dependent variables to determine an accurate sales forecast.

Intuition and expediency are primary characteristics of which of the following sales forecasting methods?

Segmentation variables are characteristics of individuals, groups, or organizations in a total market.

The problem with using an undifferentiated strategy to market a "universal car" is that

Sales forecasts are always long-range in nature.

Nicholas Smart of Rex Corning Fiberglass talks to Martin Halls, a homebuilder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Nicholas then multiplies that number by the total number of builders in the territory. He is using a ____ approach to measure sales potential.

Sherwin-Williams Company provides paint and supplies to businesses and individuals through its network of company-owned retail outlets. Sherwin-Williams employs outside sales representatives who make personal calls with prospects and customers in order to gain insight about their needs and persuade them to utilize Sherwin-Williams for their painting projects. Typically, a Sherwin-Williams sales representative will focus his or her efforts on specific customers such as hospital facility managers, apartment complex managers, painting contractors, or education institution facility managers. Sherwin-Williams is utilizing the ______ variable for segmenting business markets.

Volkswagen markets its Routan to large families, its R32 racecar to men, and its Jetta to young singles. What targeting approach is Volkswagen using?

Powder Snowboard Company was founded in 1992 and is now based in Seattle, Washington. The company estimates that snowboard enthusiasts typically spend about $600 annually on gear even though they only get on the slopes about 50 days a year. However, Powder products are available in markets where the typical customer can average 30 days on the slopes using their equipment, so Powder ensures that they have store outlets near ski resorts such as Colorado, Vermont, and Utah. What type of segmentation variable does Powder utilize when selecting locations for its retail outlets?

There are generally __________ steps in the target market selection process. The second step is ______________.

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) ____ strategy.

If Morton Salt saw all table salt customers as pretty much alike and thus offered only one marketing mix, it would be using the ____ strategy.

Barry Steel provides steel for a variety of uses to its various customers. Customers have different needs for the steel, and thus Barry has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is

Individuals' ability to buy depends on the strength of their buying power.

Although it may seem logical to target higher-income consumers, many marketers choose to target lower-income segments because

Most markets for products are made up of individuals or groups with diverse needs for products and are called ____ markets.

Mark is developing a market forecast. After reviewing years of sales, he noticed there seems to be a clear association between past sales and households with children. The more families with children locate to the area, the more sales seem to increase. Mark believes he can use this relationship and the information he has on households in the area to predict future sales. This is an example of what type of forecasting method?

To find a target market, a firm can use one of these targeting strategies.

Which of the following is an example of a behavioristic segmentation variable?