Question 1

The types of surveys used to forecast sales are customer, executive, and competitor surveys.

Accepted Answer

A) True 
 B)False

Question 2

Market segment profiles help a marketer determine which segments are most attractive relative to a firm's strengths, weaknesses, objectives, and resources.

Accepted Answer

A) True 
 B)False

Question 3

A firm ordinarily uses the same sales forecasting method for determining short-range and long-range sales forecasts.

Accepted Answer

A) True 
 B)False

Question 4

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.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Scenario 6.1 Use the following to answer the questions.
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, Angels offers its services only to girls under the age of 14. Originally begun in Delaware, 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. Angels Kids Spa is currently using a(n)____ targeting strategy.

Accepted Answer

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

Question 7

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 short line transport.
Refer to Scenario 6.2. GE Transportation is most likely using a(an) ______ targeting strategy, segmenting by ________ variables.

Accepted Answer

A)  Undifferentiated; benefit expectations 
B)  Differentiated; benefit expectations 
C)  Differentiated; volume usage 
D)  Concentrated; volume usage 
E)  Concentrated; geographic location

Question 8

A market segment profile may cover such aspects as demographic characteristics, geographic factors, product benefits sought, lifestyles, brand preferences, and usage rates.

Accepted Answer

A) True 
 B)False

Question 9

The final step in the target market selection process is

Accepted Answer

A)  implementing the appropriate marketing mix for the target market. 
B)  evaluating relative market segments. 
C)  eliminating market segments that are cost prohibitive. 
D)  selecting specific target markets. 
E)  revising the final segmentation variables based on target selection.

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

Question 11

The first step in the target market selection process is

Accepted Answer

A)  determining which segmentation variables to use. 
B)  selecting specific target markets. 
C)  identifying an appropriate targeting strategy. 
D)  evaluating relevant market segments. 
E)  developing market segment profiles.

Question 12

A differentiated targeting strategy is when the organization targets two or more markets by developing a single marketing mix.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  undifferentiated 
B)  differentiated 
C)  product strategy 
D)  cost-benefit 
E)  demographic

Question 14

A marketer can use regression analysis techniques to predict the sales of new products.

Accepted Answer

A) True 
 B)False

Question 15

Any group of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to buy such products is a(n)

Accepted Answer

A)  business market. 
B)  market. 
C)  undifferentiated market 
D)  segmented market 
E)  market variable

Question 16

The forecasting techniques that assume past sales patterns will continue into the future are all variations of

Accepted Answer

A)  regression analysis. 
B)  random factor analysis. 
C)  seasonal analysis. 
D)  time series analysis. 
E)  past sales forecasting surveys.

Question 17

Mia is pet-sitting for a friend's dog while he is on vacation. Her friend has given Mia 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, Mia 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 Mia 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 Mia is not a dog owner, she is likely to be part of the market for dog food for all of the following reasons except _______.

Accepted Answer

A)  She has the authority to purchase the dog food. 
B)  She possesses the buying power for purchasing dog food. 
C)  She has the need or desire for dog food. 
D)  Her ability to purchase the dog food is questionable. 
E)  She is willing to use her buying power.

Question 18

____ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments.

Accepted Answer

A)  Market segmentation variables 
B)  Market segment profiles 
C)  Segmentation grids 
D)  Market differentiation indexes 
E)  Market concentrations

Question 19

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

Question 20

Lifestyle is a product-related variable.

Accepted Answer

A) True 
 B)False

Exam 6: Target Markets, Segmentation and Evaluation

The types of surveys used to forecast sales are customer, executive, and competitor surveys.

Market segment profiles help a marketer determine which segments are most attractive relative to a firm's strengths, weaknesses, objectives, and resources.

A firm ordinarily uses the same sales forecasting method for determining short-range and long-range sales forecasts.

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

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

A market segment profile may cover such aspects as demographic characteristics, geographic factors, product benefits sought, lifestyles, brand preferences, and usage rates.

The final step in the target market selection process is

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?

The first step in the target market selection process is

A differentiated targeting strategy is when the organization targets two or more markets by developing a single marketing mix.

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

A marketer can use regression analysis techniques to predict the sales of new products.

Any group of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to buy such products is a(n)

The forecasting techniques that assume past sales patterns will continue into the future are all variations of

____ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments.

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

Lifestyle is a product-related variable.