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Indicate whether the statement is true or false.
1. A market segment profile may cover such aspects as demographic characteristics, geographic factors, product benefits
sought, lifestyles, brand preferences, and usage rates.
a. True
b. False
2. Consideration of the firm’s overall objectives usually does not influence the final selection of a target market segment.
a. True
b. False
3. A company sales forecast is the amount of a product that a company expects to sell during a specific time period at a
specified level of marketing activities.
a. True
b. False
4. During the evaluation of relevant market segments, competitive assessment is used primarily to determine the
possibility of additional competitors entering particular segments.
a. True
b. False
5. An undifferentiated targeting strategy does not target a single market with one marketing mix.
a. True
b. False
6. The five-step process usually used for target market selection includes identifying the appropriate targeting strategy,
determining which segmentation variables to use, developing market segment profiles, evaluating relevant market
segments, and deciding which targeting strategy to use.
a. True
b. False
7. The ways in which customers use a particular product may be a basis for segmenting the market.
a. True
b. False
8. One problem with using psychographic variables for segmentation purposes is that they are difficult to measure
accurately.
a. True
b. False
9. The executive judgment method of sales forecasting is very accurate in predicting future sales.
a. True
b. False
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10. A market segment profile deals primarily with demographic characteristics.
a. True
b. False
11. A marketer can use regression analysis techniques to predict the sales of new products.
a. True
b. False
12. Individuals’ ability to buy depends on the strength of their buying power.
a. True
b. False
13. In a customer forecasting survey, a marketer would question customers about the types and quantities of products they
intend to buy during a specific time period.
a. True
b. False
14. A segmentation variable is used to group smaller markets into one larger market.
a. True
b. False
15. Lifestyle is a product-related variable.
a. True
b. False
16. A differentiated targeting strategy is when the organization targets two or more markets by developing a single
marketing mix.
a. True
b. False
17. It is likely that during the fifth step of the target market selection process, marketers will decide not to enter and
compete in any market segments.
a. True
b. False
18. When evaluating relevant market segments, cost estimates are important to determine if an organization entering a
particular segment can operate at costs equal to or below those of competitors.
a. True
b. False
19. One way marketers can segment business markets is according to their geographic location.
a. True
b. False
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20. Market segment profiles help determine the most desirable segment or segments in relation to the firm’s strengths,
weaknesses, objectives, and resources.
a. True
b. False
21. Family life cycle is a psychological dimension used for segmenting markets.
a. True
b. False
22. The term market density refers to the number of potential customers per unit of land area, such as per square mile.
a. True
b. False
23. A market segment profile provides customers with an understanding of how a business can use its capabilities.
a. True
b. False
24. The two general approaches to measuring company sales potential are the breakdown and the buildup approach.
a. True
b. False
25. Customer forecasting surveys as a means of forecasting sales are not appropriate for a firm that has relatively few
customers.
a. True
b. False
26. The four requirements of a market are that the individuals in the market must have a need for the product and the
ability, willingness, and authority to buy it.
a. True
b. False
27. Demographic characteristics are commonly used to segment a market because they are closely related to consumers’
product needs and purchasing behavior.
a. True
b. False
28. The concentrated targeting strategy is one in which an organization directs its marketing efforts toward a single market
segment through one marketing mix.
a. True
b. False
29. The size of the market potential places limits on the size of the company sales potential.
a. True
b. False
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30. The undifferentiated strategy can be effective for an organization that has a homogeneous market and can develop and
maintain a single marketing mix.
a. True
b. False
31. The types of surveys used to forecast sales are customer, executive, and competitor surveys.
a. True
b. False
32. 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.
a. True
b. False
33. Motives can be used to segment markets.
a. True
b. False
34. Lifestyle analysis focuses on people’s activities, interests, and opinions.
a. True
b. False
35. The information yielded by market segment profiles usually is not very useful later in the marketing process.
a. True
b. False
36. Market potential is the amount of a product that an organization could sell during a specified time period.
a. True
b. False
37. In developing a company sales forecast, the forecasting methods are limited to surveys and correlation methods.
a. True
b. False
38. Sales forecasts are always long-range in nature.
a. True
b. False
39. Only one variable can be used to segment a market.
a. True
b. False
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40. Segmentation variables are characteristics of individuals, groups, or organizations in a total market.
a. True
b. False
41. Company sales potential is the maximum percentage of market potential that an individual firm within an industry can
expect to obtain for a specific product.
a. True
b. False
42. The sum of firms’ marketing efforts equals industry marketing efforts.
a. True
b. False
43. Trend analysis is a sales forecasting technique that focuses on aggregate sales data over a period of many years to
determine general trends in annual sales.
a. True
b. False
44. Through market tests, a forecaster gains data regarding consumers’ intended purchases.
a. True
b. False
45. A company sometimes defines a total market as its target market.
a. True
b. False
46. A person who has buying power also has the authority to buy.
a. True
b. False
47. A marketer may segment a market in terms of the benefits that customers expect to receive from a particular product.
a. True
b. False
48. If long-term prospects look poor, a marketer may ultimately choose not to target a segment because it would be
difficult to recoup expenses.
a. True
b. False
49. A market segment profile describes the similarities among potential customers within a segment and explains the
differences among people across market segments.
a. True
b. False
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50. Surveys are sometimes used to forecast sales.
a. True
b. False
51. One condition for effective segmentation is that at least one segment must have substantial profit potential.
a. True
b. False
52. There are only two basic strategies for selecting target markets: the undifferentiated targeting strategy and the
concentrated targeting strategy.
a. True
b. False
53. A market is a group of people who, as individuals, have needs for products in a product class and have the ability,
willingness, and authority to purchase such products.
a. True
b. False
54. A firm ordinarily uses the same sales forecasting method for determining short-range and long-range sales forecasts.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
55. 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.
a. concentrated targeting
b. differentiated
c. heterogeneous market
d. undifferentiated
e. single mix
56. Yvonne and Garret are looking at information about how their organization’s products could fit potential customers’
needs. This information deals with demographic characteristics, product benefits sought, lifestyles, geographic factors,
brand preferences, and usage rates. They are most likely looking at
a. the sales force survey results.
b. the results of sales forecasting.
c. a market trend analysis.
d. a market segmentation discrimination analysis.
e. a market segment profile.
57. A disadvantage of the concentrated targeting strategy is that
a. the firm’s financial condition is tied to a single and specialized marketing mix.
b. large sales volumes cannot be generated.
c. production costs may be higher than with other strategies.
d. marketing personnel may become dissatisfied with the limited opportunities provided by this approach.
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e. marketing costs are often higher than for other strategies.
58. A business advantage of the concentrated targeting strategy for any company is that it
a. requires less market research and information.
b. requires less intensive analysis of customers’ characteristics and needs.
c. allows a firm to utilize all of its production capacity.
d. maintains the firm’s flexibility in moving into other market segments.
e. allows a firm to develop a special marketing mix for a single market segment.
59. 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.
a. breakdown
b. recessionary
c. buildup
d. pyramid
e. dimensional
60. With its Venus razor, Gillette was the first marketer to offer a triple blade razor specifically designed for women. This
is an example of market segmentation using ____ variables.
a. demographic
b. psychographic
c. geographic
d. family life cycle
e. product use
61. A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n)
____ strategy.
undifferentiated
a. selective
b. focused
c. differentiated
d. concentrated
e. undifferentiated
62. Market segment profiles are used to describe _____________ members of a market segment, and to explain
______________members in separate market segments.
a. Differences between; Similarities among
b. Differences between; Differences between
c. Similarities among; Similarities among
d. Preferences among; Preferences among
e. Similarities among; Differences between
63. 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
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areas in a firm or firms. ______________ weighs each year’s sales data, giving greater weight to results from the most
recent years.
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
64. The primary advantage of a concentrated targeting strategy is
a. it meets the needs of a wide range of consumers.
b. it allows a firm to specialize to meet specific customer needs.
c. it is more flexible than any other approach.
d. it is the least risky targeting approach.
e. its customers are the most willing to repurchase the same brands.
65. If Georgia-Pacific, a producer of home siding, decking, and other wood products, focused its marketing efforts to
home construction companies only, it would be using a(n) ____ strategy. If it sold the same products to both construction
companies and DIY retailers such as Home Depot, it would be using a(n) ____ strategy.
a. undifferentiated; undifferentiated
b. undifferentiated; differentiated
c. differentiated; multisegmented
d. concentrated; differentiated
e. concentrated; concentrated
66. Justin Franklin’s company is interested in locating areas where the average income is high, the average age range is
25–35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company
would most likely find possible markets through
a. U.S. Census Bureau information.
b. geographic segmentation variables.
c. geodemographic segmentation.
d. climate information.
e. psychographic segmentation.
67. Which of the following is not a requirement or characteristic of a market?
a. The ability to purchase a product
b. A large number of people or organizations
c. The authority to buy a product
d. The willingness to use buying power
e. The need for a specific product in a specific product category
68. The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the
a. sales forecast.
b. market potential.
c. company sales potential.
d. company sales objective.
e. market share goal.
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69. 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
a. behavioristic segmentation.
b. geodemographic segmentation.
c. market density analysis.
d. demographic segmentation.
e. geographic segmentation.
70. A widely used system for classifying individuals on the basis of lifestyle is
a. CMSA.
b. PRIZM.
c. CMSA.
d. LIFO.
e. Prospect Zone.
71. In your regular goods and services consumption activities, you purchase products for resale and for use in your daily
operations. You also purchase products that you will use to produce other products. Based on this information, which of
the following best describes the type of market you are part of?
a. B2C market
b. Business market
c. Consumer market
d. Distributor market
e. Reseller market
72. The forecasting method that utilizes a firm’s historical sales data to find patterns in the firm’s sales volume over time is
a. the regression method.
b. customer forecasting.
c. a market test.
d. sales force forecasting.
e. time series analysis.
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.
73. Refer to Scenario 5.2. Researchers at GE Transportation estimate that 1,000 rail lines throughout the world will
purchase some kind of locomotive engine next year. That number represents the
a. company sales potential.
b. breakdown approach.
c. market potential.
d. buildup approach.
e. company sales forecast.
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74. Subaru is producing a new seven-passenger van with all-wheel drive. Which of the following would be the best
variables for segmenting the market for this new model?
a. Gender and age
b. Geographic location and family life cycle
c. Income and geographic location
d. Family life cycle and income
e. Geographic location and gender
75. Intuition and expediency are primary characteristics of which of the following sales forecasting methods?
a. Surveys
b. Executive judgment
c. Cycle analysis
d. Market tests
e. Industry indicators
76. Relying on executive judgment for forecasting may be adequate when
a. levels of marketing efforts put forth by competitors vary considerably.
b. recent events give the executive specific impressions of product demand.
c. product demand is erratic.
d. the executive conducts surveys.
e. the executive has considerable experience and product demand is relatively stable.
77. 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.
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
78. When a business has a relatively small number of customers, a preferred method of forecasting is
a. regression analysis.
b. trend analysis.
c. the Delphi technique.
d. a market test.
e. a customer forecasting survey.
79. Variables such as geographic location, type of organization, customer size, and type of product usage are used to
segment ____ markets.
a. consumer
b. business
c. government
d. international
e. most target
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80. The purpose of market segmentation is to
a. differentiate products.
b. divide a total market to enable a marketer to develop a more precise marketing mix.
c. reduce the overall cost of marketing activities.
d. identify a single marketing mix that will be satisfactory for the general market.
e. meet the needs of homogeneous markets.
81. Marketers use a variety of characteristics to segment markets they are interested in pursuing. When segmenting
consumer markets, demographic variables are normally used. All of the following are demographic characteristics used by
marketers to segment markets except:
a. Age
b. Social class
c. Family size
d. Hometown
e. Marital status
82. Most markets for products are made up of individuals or groups with diverse needs for products and are called ____
markets.
a. undifferentiated
b. concentrated
c. homogenous
d. differentiated
e. heterogeneous
83. If Baskin-Robbins calculates that it could sell up to 25 percent of all ice cream cones sold in the United States, this
percentage would represent the ice cream marketer’s
a. target growth rate.
b. sales forecast.
c. sales objective.
d. company sales potential.
e. market potential.
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.
84. Refer to Scenario 5.1. Lil’ Angels Kids Spa is currently using a(n)____ targeting strategy.
cc
a. undifferentiated
b. exclusive
c. concentrated
d. differentiated
e. selective
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85. 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
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.
86. Generally speaking, individuals who are unemployed would not be considered a target market for lawn care services
because
a. they would not desire such products.
b. they would not be willing to purchase such products.
c. they would not have the ability to purchase such products.
d. such markets are narrowly defined geographically.
e. they would not be authorized to purchase such products.
87. The amount of product a company expects to sell during a specific period at a specified level of marketing activity is
called the
a. company sales potential.
b. revenue estimate.
c. company sales prediction.
d. market potential.
e. sales forecast.
88. If Campbell were to offer single serving “Soup for One” packages to household markets, it would be using
segmentation based on
a. income.
b. age.
c. preferences.
d. geographic considerations.
e. family life cycle.
89. The ProMark Company manufactures a pencil that is about five inches long and has no eraser. It sells the product
primarily to golf courses and universities. What type of targeting strategy is the ProMark Company using?
a. Extensive
b. Concentrated
c. Undifferentiated
d. Intensive
e. Differentiated
90. Refer to Scenario 5.1. 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
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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?
a. behavioristic; time series analysis
b. psychographic; time series analysis
c. demographic; regression analysis
d. income; regression analysis
e. family life cycle; market tests
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.
91. Refer to Scenario 5.1. Which of the following best describes Lil’ Angels’ current approach to the market?
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.
92. When selecting specific target markets, a firm should
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.
93. Several conditions must exist for market segmentation to be successful. These conditions include all of the following
except
a. the total market should be divided so that segments can be compared on sales potential, costs, and profits.
b. customers’ needs for the product must be homogeneous.
c. the company must be able to reach the chosen segment with a particular marketing mix.
d. segments must be identifiable and divisible.
e. at least one segment must have enough profit potential to justify developing and maintaining a special marketing
mix for that segment.
94. Smart Balance produces a line of milk products that are lactose-free. The milk comes in pint, quart, and half-gallon
cartons, as well as 16-ounce glass bottles. Smart Balance sells its pint cartons to school systems, its quart and half-gallon
cartons to grocery stores, and its glass bottles to vending machine operators. Smart Balance appears to use a(n) _____
strategy in marketing its product to a target market that is likely to be _______.
a. undifferentiated; homogeneous
b. undifferentiated; heterogeneous
c. differentiated; homogenous
d. differentiated; heterogeneous
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e. concentrated; heterogeneous
95. The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within
a specified time period at a given level of industry-wide marketing activity, is the
a. competitor sales potential.
b. sales objective.
c. forecasted sales.
d. company sales potential.
e. market potential.
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.
96. Refer to Scenario 5.2. GE Transportation is most likely using a(an) ______ targeting strategy, segmenting by
________ variables.
a. Undifferentiated; benefit expectations
b. Differentiated; benefit expectations
c. Differentiated; volume usage
d. Concentrated; volume usage
e. Concentrated; geographic location
97. You are an analyst in the marketing department for a major grocery store chain, and you recently submitted a report to
your boss regarding potential market segments the company should consider targeting. Your boss just sent the report back
to you with the following questions:
• What are the strengths and weaknesses of the competitors who are also targeting these markets?
• Does any firm dominate the market currently?
• Can we create a compelling marketing mix to effectively compete for business in this market segment?
Based on the questions being asked, it appears your boss is using which one of the following segment evaluation
approaches?
a. Company sales potential approach
b. SWOT analysis approach
c. Breakdown approach
d. Competitive assessment approach
e. Buildup approach
98. Sherwin Williams Company provides paint and supplies to business 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 their efforts on specific customers such as hospital
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facility managers, apartment complex managers, painting contractors, or education institution facility managers. Sherwin
Williams is utilizing the ______ variable for segmenting business markets.
a. type of organization
b. customer size
c. geographic location
d. product use
99. To find a target market, a firm can use one of these targeting strategies.
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.
100. Which of these statements is not true about business markets?
a. the purchase may be made to resell the item
b. the purchase is always made by more than one individual
c. the purchase may be made to use in general daily operations
d. the purchase may be made to use in production of another product
e. they can also be referred to as organizational markets
101. Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new
product?
a. Executive judgment
b. Customer surveys
c. Time series analysis
d. Market tests
e. Regression methods
102. TimeWarner Cable uses a segmentation strategy for its cable TV packages based on market characteristics such as
age, gender, or income. Which of the following segmentation variables is TimeWarner using?
a. Demographic
b. Geographic
c. Psychographic
d. Product-related
e. Education
103. Which of the following is not one of the major categories of consumer market segmentation variables?
a. Demographic characteristics
b. Geographic variables
c. Psychographic dimensions
d. Situational variables
e. Behavioristic characteristics
Use the following to answer the questions.
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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.
104. Refer to Scenario 5.1. 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?
a. behavioristic; time series analysis
b. psychographic; time series analysis
c. demographic; regression analysis
d. income; regression analysis
e. family life cycle; market tests
105. Which of the following is an example of a behavioristic segmentation variable?
a. Family size
b. Climate
c. Age
d. Usage rate
e. Personality characteristics
106. Why would a company use the undifferentiated strategy?
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. When a market is made up of individuals or organizations with diverse need for products in a specific product
class.
107. Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International
Paper segments its market based on
a. customer size.
b. psychographics.
c. demographics.
d. use of product.
e. geographic location.
108. Age, rate of product use, location, and gender are all examples of common
a. demographic variables.
b. geographic characteristics.
c. targeting strategies.
d. psychographic variables.
e. segmentation variables.
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109. When the needs of individual consumers in a target market for a specific product are similar and the organization can
satisfy most customers with a single marketing mix, the best approach to use may be the ____ strategy.
a. undifferentiated
b. differentiated
c. segmented
d. concentrated
e. heterogeneous
110. Crest toothpaste is available in several different versions, such as Crest Whitening, Crest Tartar Control, Crest
Whitening with mouthwash, and Crest Total Effects. Given these different variations of the product, it appears that the
marketers of Crest are segmenting the market by using ____ segmentation.
a. behavioristic
b. product usage
c. benefit
d. end-purpose
e. advantage
111. The most important reason that a firm might use a sales force forecasting survey to determine its sales forecast is
a. salespeople are generally optimistic about the future and will provide excellent forecast targets.
b. most salespeople tend to have a pessimistic outlook, which is more likely to result in an achievable sales forecast.
c. this tends to be the fastest way to determine a good sales forecast for the upcoming period.
d. the averaging and other statistical techniques applied to these forecasts result in extremely accurate numbers
e. the sales staff is closer to the actual customers on a regular basis than anyone else in the organization.
112. ____________ is a useful sales forecasting method as long as a precise relationship between past sales figures and
one or more variables can be established. Without these relationships, this method is useless in forecasting future sales.
a. Trend analysis
b. Random factor analysis
c. Delphi technique
d. Cycle analysis
e. Regression analysis
113. Crisco is an all-vegetable shortening which helps cooks around the globe create better-tasting meals for their
families. The company is part of Procter & Gamble and Crisco was developed in 1911. They released their first print
advertisement in 1912 and focused on how Crisco could be used as a replacement to lard and butter. Crisco is still a
dominant brand today and many families have the familiar blue tub of Crisco in their pantry as well as a container of
liquid vegetable oil to use when cooking. Crisco believes its market is _______, where individuals have similar needs for
the product and therefore utilize a _________ targeting strategy as they can incorporate a single marketing mix and direct
it at the entire market for their sugar products.
a. homogeneous; undifferentiated
b. heterogeneous; undifferentiated
c. homogeneous, differentiated
d. heterogeneous, differentiated
114. Which of the following products is most likely to be marketed, using an undifferentiated approach?
a. bicycle
b. computer
c. notebook
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d. seasoning salt
e. oscillating fan
115. 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 _______.
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.
116. Meghan would like to open a house cleaning business and is considering several market segments. She has identified
four segments for consideration; young, urban singles, young married professionals, senior citizens, and college students.
She has just completed an analysis of these four segments by assessing such factors as sales estimates, competition, and
estimated costs. Meghan is now ready for the next step in the target market selection process, which is to
a. identify the appropriate targeting strategy.
b. determine which segmentation variables to use.
c. develop market segment profiles.
d. evaluate relevant market segments.
e. select specific target markets.
117.
Interior Designs Inc. sells expensive custom-made draperies, bedding, and accessories through sales representatives who
are also interior designers. It also has another, slightly less expensive line that it sells through stores such as Nordstrom’s
and Saks Fifth Avenue. Interior Designs Inc. is most likely using a(n) ____ targeting strategy.
a. differentiated
b. undifferentiated
c. concentrated
d. homogeneous
e. heterogeneous
118. Alpine Ski Shops is looking for new markets for both its brick and mortar retail stores and its catalog division.
Alpine Ski Shops would most likely use a(n) ______ base for market segmentation of its stores and a(n) ______ base for
market segmentation of its catalog division?
a. behavioristic; geographic
b. geographic; demographic
c. demographic; psychographic
d. environmental; demographic
e. geographic; behavioristic
119. Marketing managers have several choices in selecting a targeting strategy. Jessica Brandt is a marketing manager
with a craft bourbon distiller in Kentucky and knows that there are many different types of bourbon drinkers. However,
she concentrates her marketing on the enthusiast or high-involved bourbon drinker who often enjoys a bourbon beverage
before or after dinner, reads magazines to keep up with the craft bourbon industry, and is a member of their e-mail list and
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subscriber to the company’s blog. Jessica knows that this segment of bourbon drinkers will consume more bourbon, be
more likely to engage in positive word-of-mouth about the brand, and will also be more likely to purchase accessories
such as glassware or t-shirts. Jessica is most likely utilizing the _____ targeting strategy and employing just one marketing
mix and focusing on one target market segment.
a. concentrated
b. undifferentiated
c. homogeneous
d. differentiated
120. Brian works for a manufacturer of sports equipment and is currently developing a company sales forecast for golf
clubs. While reviewing data, he discovered a pattern in sales volume over the past ten years that peaked during two
months of each year. Brian likely used which sales forecasting technique?
a. The Delphi technique
b. Executive judgment
c. Time series analysis
d. Market tests
e. Regression analysis
121. 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?
a. Micromarketing
b. Population
c. Market density
d. MSA
e. PMSA
122. Eighteen-year-old students do not form a market for alcoholic beverages because they
a. lack sufficient buying power to form a market.
b. lack the authority to purchase this type of product.
c. do not want to purchase this type of product.
d. do not have sufficient experience with this type of product.
e. lack the money to purchase this type of product.
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.
123. Refer to Scenario 5.2. If a GE Transportation researcher analyzes monthly sales data for a four-year time frame,
looking for periodic fluctuations, the researcher is doing a ____ analysis.
a. trend
b. seasonal
c. cycle
d. random factor
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e. regression
124. Guess? will be spending $22 million on marketing activities next year and expects to sell 30 million pairs of jeans.
These 30 million pairs represent the company’s
a. sales potential.
b. market potential.
c. sales forecast.
d. market sales.
e. selected market.
125. The final step in the target market selection process is
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.
126. The producers of C & H Cane Sugar sell the product 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. undifferentiated
b. differentiated
c. product strategy
d. cost-benefit
e. demographic
127. The buildup approach measure of sales potential
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.
128. Family life cycle is most typically based on
a. income.
b. geographic location.
c. marital status and age of children.
d. occupation.
e. buying power.
129. The process of dividing a total market into market groups because people within each group have relatively similar
product needs is called
a. segmentation.
b. diversification.
c. target marketing.
d. concentration.
e. customization.