Question 1

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

Accepted Answer

A) selective 
B) focused 
C) differentiated 
D) concentrated 
E) undifferentiated 
A) selective 
B) focused 
C) differentiated 
D) concentrated 
E) undifferentiated

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. Lil' Angels Kids Spa is currently using a(n)____ targeting strategy.

Accepted Answer

A) undifferentiated 
B) exclusive 
C) concentrated 
D) differentiated 
E) selective 
A) undifferentiated 
B) exclusive 
C) concentrated 
D) differentiated 
E) selective

Question 3

A segmentation variable is used to group smaller markets into one larger market.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) total market strategy and the undifferentiated strategy. 
B) product differentiation strategy and the customer differentiation strategy. 
C) demographic strategy and the psychographic strategy. 
D) socioeconomic strategy and the psychological strategy. 
E) undifferentiated strategy, the concentrated strategy, and the differentiated strategy. 
A) total market strategy and the undifferentiated strategy. 
B) product differentiation strategy and the customer differentiation strategy. 
C) demographic strategy and the psychographic strategy. 
D) socioeconomic strategy and the psychological strategy. 
E) undifferentiated strategy, the concentrated strategy, and the differentiated strategy.

Question 5

The executive judgment method of sales forecasting is very accurate in predicting future sales.

Accepted Answer

A) True 
 B)False

Question 6

Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid

Accepted Answer

A) behavioristic segmentation. 
B) geodemographic segmentation. 
C) market density analysis. 
D) demographic segmentation. 
E) geographic segmentation. 
A) behavioristic segmentation. 
B) geodemographic segmentation. 
C) market density analysis. 
D) demographic segmentation. 
E) geographic segmentation.

Question 7

What is the main problem with using a market test as a forecasting tool?

Accepted Answer

A) Difficult to interpret 
B) Expensive 
C) Inaccurate 
D) Unacceptable to consumers 
E) Overused 
A) Difficult to interpret 
B) Expensive 
C) Inaccurate 
D) Unacceptable to consumers 
E) Overused

Question 8

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as

Accepted Answer

A) market segments. 
B) heterogeneous markets. 
C) concentrated markets. 
D) demographic segments. 
E) strategic segments. 
A) market segments. 
B) heterogeneous markets. 
C) concentrated markets. 
D) demographic segments. 
E) strategic segments.

Question 9

The buildup approach measure of sales potential

Accepted Answer

A) starts with broad estimates of general economic activity. 
B) ends with an estimate of a single firm's sales of a specific product. 
C) starts with forecasts about demand for a specific product within a relatively small area. 
D) does not use sales estimates. 
E) is seldom employed by industrial firms. 
A) starts with broad estimates of general economic activity. 
B) ends with an estimate of a single firm's sales of a specific product. 
C) starts with forecasts about demand for a specific product within a relatively small area. 
D) does not use sales estimates. 
E) is seldom employed by industrial firms.

Question 10

DeShon has just become the new marketing analyst for a company that produces vinyl siding for homes. In an effort to forecast his firm's sales for the coming year, he needs to find where the greatest opportunities are for selling his product. DeShon looks at the sales for the last five years and calculates a growth trend. He then collects data from a combination of other factors, such as population density, family size, home ownership, and per capita income. Finally, DeShon looks at the correlation between the sales trend data and the various combination of demographic data. DeShon is employing the ____ forecasting method for the sales growth trend and the ________ method for the correlation.

Accepted Answer

A) Time series analysis; regression analysis 
B) Executive judgment; regression analysis 
C) Market tests; regression analysis 
D) Regression analysis; time series analysis 
E) Market tests; time series analysis 
A) Time series analysis; regression analysis 
B) Executive judgment; regression analysis 
C) Market tests; regression analysis 
D) Regression analysis; time series analysis 
E) Market tests; time series analysis

Question 11

The Pillsbury company defines all individual consumers who are purchasers of flour as its target market. It also defines all businesses who purchase flour as its target market. What targeting strategy would be most appropriate in this case?

Accepted Answer

A) Concentrated 
B) Undifferentiated 
C) Wide appeal 
D) Differentiated 
E) Clustered 
A) Concentrated 
B) Undifferentiated 
C) Wide appeal 
D) Differentiated 
E) Clustered

Question 12

Discuss the advantages and disadvantages of using executive judgment in forecasting company sales.

Accepted Answer

Executive judgment is the intuition of o

Question 13

When selecting specific target markets, a firm should

Accepted Answer

A) revert to an undifferentiated approach if the market is deemed heterogeneous. 
B) choose the segments most in line with the firm's objectives and long-term growth. 
C) choose all segments that are determined to be profitable for the organization. 
D) choose the minimum number of segments necessary to achieve company sales potential. 
E) pick the segments with the best sales forecasts for the upcoming period of time. 
A) revert to an undifferentiated approach if the market is deemed heterogeneous. 
B) choose the segments most in line with the firm's objectives and long-term growth. 
C) choose all segments that are determined to be profitable for the organization. 
D) choose the minimum number of segments necessary to achieve company sales potential. 
E) pick the segments with the best sales forecasts for the upcoming period of time.

Question 14

​In order for the marketer to achieve effective market segmentation, which of the following conditions must exist:

Accepted Answer

A) The segments must be small enough to manage effectively. 
B) It must be possible to do a regression analysis on potential segments. 
C) Consumers' needs for the product must be homogeneous. 
D) The firm must be able to sell effectively to the chosen segment with a specific sales price. 
E) The segment must have enough profit potential to justify the development of a special marketing mix for the segment. 
A) The segments must be small enough to manage effectively. 
B) It must be possible to do a regression analysis on potential segments. 
C) Consumers' needs for the product must be homogeneous. 
D) The firm must be able to sell effectively to the chosen segment with a specific sales price. 
E) The segment must have enough profit potential to justify the development of a special marketing mix for the segment.

Question 15

Seventh Generation is a company producing products that limit the amount of negative impact on the environment. Their product line includes dishwashing liquid, toilet paper, paper towels, baby wipes, and laundry detergent, to name a few. Seventh Generation is now interested in producing a new line of clothing; mostly t-shirts, shorts, and long pants for both men and women. Their research indicates that they should use psychographic segmentation in their marketing strategy. Which group of segmentation variables will Seventh Generation be using?

Accepted Answer

A) Geographic location 
B) Age, sex, and socioeconomic characteristics 
C) Social class variables 
D) Personality characteristics, motives, and lifestyles 
E) Family life cycle, social class, and religion 
A) Geographic location 
B) Age, sex, and socioeconomic characteristics 
C) Social class variables 
D) Personality characteristics, motives, and lifestyles 
E) Family life cycle, social class, and religion

Question 16

Scenario 6.2 Use the following to answer the questions.GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport.
-Refer to Scenario 6.2. Currently, GE uses several sales forecasting methods. One method is to sell the different locomotive engines to buyers in different countries, and then measuring the purchasing response in each. In this case, GE Transportation is using the _____ method to forecast future sales.

Accepted Answer

A) Delphi 
B) Market test 
C) Regression analysis 
D) Volume usage 
E) Trend analysis 
A) Delphi 
B) Market test 
C) Regression analysis 
D) Volume usage 
E) Trend analysis

Question 17

The concentrated targeting strategy is one in which an organization directs its marketing efforts toward a single market segment through one marketing mix.

Accepted Answer

A) True 
 B)False

Question 18

Scenario 6.2 Use the following to answer the questions.GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport.
-Refer to Scenario 6.2. Suppose that GE Transportation decided to produce only locomotive engines for rail lines in the United States. The segmentation variable then would be

Accepted Answer

A) geographic location. 
B) type of organization. 
C) market density. 
D) product use. 
E) customer size. 
A) geographic location. 
B) type of organization. 
C) market density. 
D) product use. 
E) customer size.

Question 19

​People and organizations have needs and wants they seek to satisfy through the purchase of goods and services. These people and organizations represent a _____________ that marketers try to appeal to. Marketers will sometimes find it more advantageous to attempt to appeal to a subgroup of these people and organizations which is called a ________________. This subgrouping process is accomplished through the use of _______________ techniques.

Accepted Answer

A) Market segment; Cohort group; Marketing 
B) Market segment; Market; Product mix 
C) Market; Target market; Target marketing 
D) Market; Market segment; Market segmentation 
E) Market; Market segmentation; Marketing 
A) Market segment; Cohort group; Marketing 
B) Market segment; Market; Product mix 
C) Market; Target market; Target marketing 
D) Market; Market segment; Market segmentation 
E) Market; Market segmentation; Marketing

Question 20

What are the conditions under which an undifferentiated targeting strategy is effective? Why are these conditions essential?

Accepted Answer

The undifferentiated targeting strategy

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

A segmentation variable is used to group smaller markets into one larger market.

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

The executive judgment method of sales forecasting is very accurate in predicting future sales.

Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid

What is the main problem with using a market test as a forecasting tool?

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as

The buildup approach measure of sales potential

The Pillsbury company defines all individual consumers who are purchasers of flour as its target market. It also defines all businesses who purchase flour as its target market. What targeting strategy would be most appropriate in this case?

Discuss the advantages and disadvantages of using executive judgment in forecasting company sales.

When selecting specific target markets, a firm should

In order for the marketer to achieve effective market segmentation, which of the following conditions must exist:

The concentrated targeting strategy is one in which an organization directs its marketing efforts toward a single market segment through one marketing mix.

What are the conditions under which an undifferentiated targeting strategy is effective? Why are these conditions essential?

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

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

A segmentation variable is used to group smaller markets into one larger market.

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

The executive judgment method of sales forecasting is very accurate in predicting future sales.

Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid

What is the main problem with using a market test as a forecasting tool?

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as

The buildup approach measure of sales potential

The Pillsbury company defines all individual consumers who are purchasers of flour as its target market. It also defines all businesses who purchase flour as its target market. What targeting strategy would be most appropriate in this case?

Discuss the advantages and disadvantages of using executive judgment in forecasting company sales.

When selecting specific target markets, a firm should

​In order for the marketer to achieve effective market segmentation, which of the following conditions must exist:

The concentrated targeting strategy is one in which an organization directs its marketing efforts toward a single market segment through one marketing mix.

What are the conditions under which an undifferentiated targeting strategy is effective? Why are these conditions essential?

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

In order for the marketer to achieve effective market segmentation, which of the following conditions must exist: