Question 1

When evaluating market segments, assessment of competitors is important because

Accepted Answer

A) it is difficult to segment a market when it has multiple competitors. 
B) an absence of competitors usually creates difficulties in accurately measuring segment sales potential. 
C) sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment. 
D) a competitive analysis may lead to confusion as to who are the key competitors. 
E) competition is generally not a major problem as long as a marketer is aware of it. 
A) it is difficult to segment a market when it has multiple competitors. 
B) an absence of competitors usually creates difficulties in accurately measuring segment sales potential. 
C) sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment. 
D) a competitive analysis may lead to confusion as to who are the key competitors. 
E) competition is generally not a major problem as long as a marketer is aware of it.

Question 2

Scenario 6.1 Use the following to answer the questions.Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Currently, Lil' Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services.
-Refer to Scenario 6.1. In calculating the sales forecast for the next year, marketers at Lil' Angels use data from the past five years in order to identify any trends that surface. Additionally, marketers want to find out what family variables relate to those sales. Which of the following variables should the marketers use in relating to sales? What type of forecast method will they be using to relate the variables to sales trends?

Accepted Answer

A) behavioristic; time series analysis 
B) psychographic; time series analysis 
C) demographic; regression analysis 
D) income; regression analysis 
E) family life cycle; market tests 
A) behavioristic; time series analysis 
B) psychographic; time series analysis 
C) demographic; regression analysis 
D) income; regression analysis 
E) family life cycle; market tests

Question 3

What are the major steps of the target market selection process?

Accepted Answer

Although marketers may employ several me

Question 4

A forecasting method that predicts sales based on relationships between past sales and other variables is called

Accepted Answer

A) regression analysis. 
B) customer forecasting surveys. 
C) the Delphi technique. 
D) random factor analysis. 
E) time series analysis. 
A) regression analysis. 
B) customer forecasting surveys. 
C) the Delphi technique. 
D) random factor analysis. 
E) time series analysis.

Question 5

Prodigy Placement is a private elementary school located in the center of Manhattan. Students at the school are considered in the top 1% of their age group in terms of IQ scores and aptitude. Parents who want to send their children to the school must get on a waiting list as soon as the child is 12 months old and must make a deposit of $5,000 to the school in order to hold the child's "application" until they reach the age of 5 years. Emma's parents put her on the waiting list at the age of 1 year and paid the deposit; however, when Emma became five years old, she did not want to attend the school even though she tested above the requirement. Her parents made the decision to enroll her for the upcoming school year. In this case, Emma ___ part of the market for Prodigy Placement, and her parents ____ part of the market

Accepted Answer

A) was; were; because Emma needed to attend school. 
B) was; were; because Emma had the authority to attend the school. 
C) was; were; because they had the authority. 
D) was not; were; because Emma lacked the desire. 
E) was not; were; because Emma lacked willingness. 
A) was; were; because Emma needed to attend school. 
B) was; were; because Emma had the authority to attend the school. 
C) was; were; because they had the authority. 
D) was not; were; because Emma lacked the desire. 
E) was not; were; because Emma lacked willingness.

Question 6

Using the breakdown approach to sales potential, estimates are made

Accepted Answer

A) by referring to specific geographic factors. 
B) by establishing levels of marketing effort that will be required to achieve specific levels of sales. 
C) without reference to industry marketing efforts. 
D) without reference to general economic conditions. 
E) by starting with general economic conditions. 
A) by referring to specific geographic factors. 
B) by establishing levels of marketing effort that will be required to achieve specific levels of sales. 
C) without reference to industry marketing efforts. 
D) without reference to general economic conditions. 
E) by starting with general economic conditions.

Question 7

Scenario 6.1 Use the following to answer the questions.Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Currently, Lil' Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services.
-Refer to Scenario 6.1. Which of the following best describes Lil' Angels' current approach to the market?

Accepted Answer

A) It is segmenting the market according to demographic variables. 
B) It is segmenting the market according to product-related variables. 
C) It has chosen a segment that is not identifiable and divisible. 
D) Its market is impossible to reach because of legal constraints. 
E) It is not segmenting the market but is attempting to reach everyone with the product. 
A) It is segmenting the market according to demographic variables. 
B) It is segmenting the market according to product-related variables. 
C) It has chosen a segment that is not identifiable and divisible. 
D) Its market is impossible to reach because of legal constraints. 
E) It is not segmenting the market but is attempting to reach everyone with the product.

Question 8

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to

Accepted Answer

A) allow an opportunity to obtain diverse expert opinions. 
B) allow experts to work separately to reach a consensus as to their forecasts. 
C) reach an accurate sales forecast through the use of multiple sales forecasting techniques. 
D) determine if the expert forecasting survey is superior to regression analysis. 
E) assess the extent to which this year's sales forecast is more accurate than that of previous years. 
A) allow an opportunity to obtain diverse expert opinions. 
B) allow experts to work separately to reach a consensus as to their forecasts. 
C) reach an accurate sales forecast through the use of multiple sales forecasting techniques. 
D) determine if the expert forecasting survey is superior to regression analysis. 
E) assess the extent to which this year's sales forecast is more accurate than that of previous years.

Question 9

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

Accepted Answer

A) An attitude of the company's CEO 
B) The geographic location of the company 
C) The lifestyle of the company's buying agent 
D) Net income generated by the company 
E) Common opinions of the company's employees 
A) An attitude of the company's CEO 
B) The geographic location of the company 
C) The lifestyle of the company's buying agent 
D) Net income generated by the company 
E) Common opinions of the company's employees

Question 10

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?

Accepted Answer

A) Micromarketing 
B) Population 
C) Market density 
D) MSA 
E) PMSA 
A) Micromarketing 
B) Population 
C) Market density 
D) MSA 
E) PMSA

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The size of the market potential places limits on the size of the company sales potential.

Accepted Answer

A) True 
 B)False

Question 13

A marketer may segment a market in terms of the benefits that customers expect to receive from a particular product.

Accepted Answer

A) True 
 B)False

Question 14

When using personality characteristics as a market segmentation variable, marketers generally

Accepted Answer

A) conduct personality assessments of their potential target market to determine which personality characteristics they possess. 
B) use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have. 
C) use generic characteristics that all members of the population have. 
D) use a positively viewed characteristic they assume much of their target market has or would like to have. 
E) conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have. 
A) conduct personality assessments of their potential target market to determine which personality characteristics they possess. 
B) use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have. 
C) use generic characteristics that all members of the population have. 
D) use a positively viewed characteristic they assume much of their target market has or would like to have. 
E) conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have.

Question 15

Describe the variables used to segment business markets, and provide two examples of each.

Accepted Answer

Like consumer markets, business markets

Question 16

The manager at a local recreational vehicle store, Off-Road Rage, believes the next two years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a ____ approach to estimating sales potential.

Accepted Answer

A) breakdown 
B) recessionary 
C) buildup 
D) pyramid 
E) dimensional 
A) breakdown 
B) recessionary 
C) buildup 
D) pyramid 
E) dimensional

Question 17

One way marketers can segment business markets is according to their geographic location.

Accepted Answer

A) True 
 B)False

Question 18

​Like marketing research, sales forecasting utilizes a wide array of tools and techniques to enhance the accuracy of the forecast. For example, ____________ combines and averages the outlooks of top executives from different functional areas in a firm or firms. ______________ weighs each year's sales data, giving greater weight to results from the most recent years.

Accepted Answer

A) Delphi technique; Jury of executive opinion 
B) Simple random sampling; Exponential smoothing 
C) Sampling; Linear regression 
D) Jury of executive opinion; Exponential smoothing 
E) Statistical averaging; Linear regression 
A) Delphi technique; Jury of executive opinion 
B) Simple random sampling; Exponential smoothing 
C) Sampling; Linear regression 
D) Jury of executive opinion; Exponential smoothing 
E) Statistical averaging; Linear regression

Question 19

Walmart sells numerous products, including packaged food, produce, automotive maintenance services, eyeglasses, clothing, and toys. Walmart advertises itself as a store where "we save people money so they can live better," focusing on its low prices as the customer's most important need. Walmart's advertising appears to use a(n) _____ strategy to a market that is _____.

Accepted Answer

A) undifferentiated; homogeneous. 
B) undifferentiated; heterogeneous. 
C) differentiated; homogeneous. 
D) homogeneous; differentiated. 
E) heterogeneous; undifferentiated. 
A) undifferentiated; homogeneous. 
B) undifferentiated; heterogeneous. 
C) differentiated; homogeneous. 
D) homogeneous; differentiated. 
E) heterogeneous; undifferentiated.

Question 20

Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name. It uses the same marketing mix to reach this market. Tiffany's uses a(n) ____ strategy.

Accepted Answer

A) undifferentiated 
B) differentiated targeting 
C) exclusive targeting 
D) heterogeneous 
E) concentrated targeting 
A) undifferentiated 
B) differentiated targeting 
C) exclusive targeting 
D) heterogeneous 
E) concentrated targeting

When evaluating market segments, assessment of competitors is important because

What are the major steps of the target market selection process?

A forecasting method that predicts sales based on relationships between past sales and other variables is called

Using the breakdown approach to sales potential, estimates are made

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to

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

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?

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

The size of the market potential places limits on the size of the company sales potential.

A marketer may segment a market in terms of the benefits that customers expect to receive from a particular product.

When using personality characteristics as a market segmentation variable, marketers generally

Describe the variables used to segment business markets, and provide two examples of each.

One way marketers can segment business markets is according to their geographic location.

Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name. It uses the same marketing mix to reach this market. Tiffany's uses a(n) ____ strategy.

An Overview of Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts, Branding and Packaging

Developing and Managing Products

Services Marketing

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Setting Prices

Filters

Exam 6: Target Markets Segmentation and Evaluation

When evaluating market segments, assessment of competitors is important because

What are the major steps of the target market selection process?

A forecasting method that predicts sales based on relationships between past sales and other variables is called

Using the breakdown approach to sales potential, estimates are made

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to

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

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?

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

The size of the market potential places limits on the size of the company sales potential.

A marketer may segment a market in terms of the benefits that customers expect to receive from a particular product.

When using personality characteristics as a market segmentation variable, marketers generally

Describe the variables used to segment business markets, and provide two examples of each.

One way marketers can segment business markets is according to their geographic location.

Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name. It uses the same marketing mix to reach this market. Tiffany's uses a(n) ____ strategy.

An Overview of Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts, Branding and Packaging

Developing and Managing Products

Services Marketing

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Setting Prices

Filters