Question 1

When a firm's management is making the final selection of specific target markets to enter, it should consider whether the organization has the financial resources, managerial skills, expertise, and facilities needed to effectively compete in the selected segments.

Accepted Answer

A) True 
 B)False

Question 2

Your marketing team is having a brainstorming session to finalize your target marketing strategy. To make sure all team members are on the same page, you make the following statement to keep the discussions focused: ​
If we determine that the needs of the customers we are targeting are ______________, then we need to pursue a _______________ targeting strategy.

Accepted Answer

A) homogeneous; undifferentiated 
B) heterogeneous; undifferentiated 
C) heterogeneous; concentrated 
D) homogeneous; correlated 
E) homogeneous; concentrated

Question 3

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ____ markets.

Accepted Answer

A) consumer 
B) business 
C) government 
D) international 
E) most target

Question 4

The manager at a local recreational vehicle store, Off-Road Options, 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

Question 5

Why would a company use the undifferentiated strategy?

Accepted Answer

A) The needs of individual consumers are dissimilar, and distinctive marketing mixes are required to satisfy them. 
B) The undifferentiated strategy is the one strategy that provides maximum satisfaction to the whole market. 
C) The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix. 
D) The undifferentiated strategy is expensive to implement but tends to produce the most sales. 
E) The market is made up of individuals or organizations with diverse need for products in a specific product class.

Question 6

Eric works as a manager in the marketing department of a pharmaceutical firm. The time has come to develop sales forecasts for the next year. This year the company wants to increase the reliability of the sales forecast. Eric was asked to participate in this process because of his extensive market knowledge. He joins a group of other experts in the area. Individuals in Eric's group all submit their own forecasts. These forecasts are then averaged, and the results are given back to the group so they can refine them. The intent is to reach a consensus by working separately on these forecasts. What type of forecasting technique is this?

Accepted Answer

A) Regression analysis 
B) Random factor analysis 
C) Delphi technique 
D) Executive judgment 
E) Time series analysis

Question 7

Psychographic variables are aggregate population characteristics such as the distribution of age and gender, fertility rates, migration patterns, and mortality rates.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables.

Accepted Answer

A) marketing 
B) classification 
C) segmentation 
D) stratification 
E) dividing

Question 10

Why is it important for marketers to assess competitors before entering a market segment?

Accepted Answer

The answer of Why is it important for marketers to...

Question 11

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ____ targeting strategy for laundry detergents.

Accepted Answer

A) multiuse 
B) differentiated 
C) stratified 
D) undifferentiated 
E) concentrated

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

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

Accepted Answer

The answer of What are the major steps of the...

Question 14

When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) ____ strategy.

Accepted Answer

A) concentrated targeting 
B) differentiated 
C) heterogeneous market 
D) undifferentiated 
E) single mix

Question 15

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.

Question 16

When markets are comprised of people with differing product needs, the marketing manager should use a(n) ____ strategy.

Accepted Answer

A) concentrated or differentiated targeting 
B) market-intensive 
C) integrated 
D) product-oriented 
E) undifferentiated

Question 17

The sum of firms' marketing efforts equals industry marketing efforts.

Accepted Answer

A) True 
 B)False

Question 18

Amanda's team is analyzing target markets for the company's new product idea. Her group is currently considering the different factors it should adopt to divide the market. A major part of this decision involves the customers' needs for, uses of, or behavior toward the product. At which stage of the target market selection process are Amanda and her team currently?

Accepted Answer

A) Step 1: Identify the appropriate targeting strategy 
B) Step 2: Determine which segmentation variables to use 
C) Step 3: Develop market segment profiles 
D) Step 4: Evaluate relevant market segments 
E) Step 5: Select specific target markets

Question 19

Describe the three areas marketers should examine when they evaluate relevant market segments.

Accepted Answer

The answer of Describe the three areas marketers should examine...

Question 20

The Cup is a small shop in a small Pennsylvania town with a very loyal following. It has become well known in the town as well as in many of the towns surrounding it. Consumers seem to love the homey, local feel of The Cup. As a result, The Cup would like to open a new store in one of the towns close by. It has identified a region it thinks could be profitable. It has many loyal customers who live in that town. However, the town is also home to a Starbucks store. The town is growing, and The Cup has heard rumors that a Dunkin' Donuts may open. The owner is currently evaluating the relevant market segments in the area (Step 4). He has the following questions he wants to answer:1. Do we have enough of a loyal following as a local shop that we can attract customers away from Starbucks? 2. With the town growing as fast as it is, will other coffee shops decide to locate there?
The owner is conducting a _____________ to evaluate relevant market segments.

Accepted Answer

A) sales estimate 
B) SWOT analysis 
C) cost estimate 
D) competitive assessment 
E) market segmentation strategy

Exam 5: Target Market Segmentation and Evaluation

When a firm's management is making the final selection of specific target markets to enter, it should consider whether the organization has the financial resources, managerial skills, expertise, and facilities needed to effectively compete in the selected segments.

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ____ markets.

Why would a company use the undifferentiated strategy?

Psychographic variables are aggregate population characteristics such as the distribution of age and gender, fertility rates, migration patterns, and mortality rates.

The final step in the target market selection process is

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables.

Why is it important for marketers to assess competitors before entering a market segment?

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ____ targeting strategy for laundry detergents.

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

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

When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) ____ strategy.

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

When markets are comprised of people with differing product needs, the marketing manager should use a(n) ____ strategy.

The sum of firms' marketing efforts equals industry marketing efforts.

Describe the three areas marketers should examine when they evaluate relevant market segments.