1. The concept of targeting involves customer selection.
a. True
b. False
2. We should target customers that match our abilities to deliver.
a. True
b. False
3. We target for the same reason we segment—to try to be all things to all people.
a. True
b. False
4. Most markets are comprised of customers whose tastes are very similar.
a. True
b. False
5. Top-down and bottom-up perspectives are available to assess the attractiveness of each segment in terms of
its potential for targeting, but only the top-down perspective should be considered.
a. True
b. False
6. Targeting should not use a top-down vision of corporate strategy, but rather, only a bottom-up data-informed
approach on segment size and profitability.
a. True
b. False
7. Some customer segments are high maintenance and not worth serving.
a. True
b. False
8. Marketers ask the most important question: “How likely is it that a segment will be profitable?”
a. True
b. False
9. Potential profitability is a function of the current market size, its anticipated growth, current and anticipated
levels of competition, and customer behavior and expectations.
a. True
b. False
10. A firm’s ability to satisfy the needs of a segment impacts the decision as to whether or not to target a
specific segment.
a. True
b. False
11. Two important strategic criteria for targeting segments include the firm’s strengths and the attractiveness of
the segment.
a. True
b. False
12. Company XYZ has examined several customer segments in order to determine which segments best align
with the firm’s strengths and the attractiveness of the market opportunity. This analysis enables the firm to
select which customer segment to target.
a. True
b. False
13. Company XYZ is working on a marketing strategy for a new oral hygiene product and just discovered that
XYZ’s biggest competitor is launching a very similar product a month later. A SWOT analysis can help the
company determine if this is an opportunity or a threat.
a. True
b. False
14. Company XYZ is working on a marketing strategy for a new oral hygiene product and just discovered that
XYZ’s biggest competitor is launching a similar, but better tasting, product with more dental health benefits.
The competitor’s product should be considered a threat in Company XYZ’s SWOT analysis.
a. True
b. False
15. Strengths and weaknesses are considerations that are external to the organization.
a. True
b. False
16. Opportunities and threats are internal considerations about the organization.
a. True
b. False
17. In conducting a SWOT analysis, marketers are likely to collect some market research data on customers,
such as perceptual maps and information about brands and products.
a. True
b. False
18. In SWOT analysis, our opinions matter a lot more than the customer base.
a. True
b. False
19. Opportunities and threats are usually driven by changes in one of the 5Cs.
a. True
b. False
20. SWOTs are only useful for clarifying about half of all marketing questions.
a. True
b. False
21. E-books are taking off on several different platforms. Your company makes PCs, so you should develop a
new e-reader.
a. True
b. False
22. Your company is great at producing a certain product, but the market doesn’t look so great right now. This
scenario is consistent with the lower-left quadrant in a SWOT analysis.
a. True
b. False
23. A perceptual map shows perceived strengths of a firm (compared to its competitors) from the customers’
perspective.
a. True
b. False
24. The best way for a company to assess its corporate strengths is in terms of absolute measures.
a. True
b. False
25. Companies typically assess their corporate strengths relative to their competitors.
a. True
b. False
26. The choice of a target segment involves information about both the size of the market and the fit with
corporate goals.
a. True
b. False
27. It is impossible to estimate the size of a market segment.
a. True
b. False
28. A lot of estimates go into the final calculation to determine market size, and each component needs to be as
precise as possible. Otherwise, the errors in the estimation get compounded.
a. True
b. False
29. Company XYZ is interested in determining how much revenue and profit potential exist for a new product it
is considering manufacturing. The company will need to use several estimates to size the market.
a. True
b. False
30. The more precisely defined the target market is, the easier the numbers are to estimate.
a. True
b. False
31. For B2B marketers, market sizing is typically more difficult than in B2C markets.
a. True
b. False
32. The Census.gov website cross-classifies businesses by sector and size.
a. True
b. False
33. Regardless of whether a marketer is working B2B or B2C, the logic in market sizing estimation is always
the same—start with the price of the product and multiply it by the size of the target market.
a. True
b. False
34. Poor demographic data exist for consumers and businesses in the U.S. and international markets.
a. True
b. False
35. Determining which segments to target depends on an interplay of two factors: (1) quantitative issues such as
size of segment, profitability, and growth, and (2) strategic issues, primarily the fit of the segment needing to
incorporate philosophy and intended positioning.
a. True
b. False
36. The Murphy Company is determining which segment(s) to target for its new professional résumé writing
service. In making this determination, the company should consider quantitative factors such as the size of the
segment, profitability, and growth.
a. True
b. False
37. Goods are usually associated with more variable costs than services.
a. True
b. False
38. Census.gov is a good place to get data about the size of age cohorts.
a. True
b. False
39. Good demographic data help when sizing a market.
a. True
b. False
40. When estimating market size for B2B, start with the total population and break it down into the
proportions that are relevant.
a. True
b. False
41. The idea of targeting is merely one of
a. surveying.
b. assessing.
c. analysis.
d. selection.
42. Which of the following questions characterizes targeting?
a. How can we identify segments?
b. Why should we segment?
c. Which segments do we want to be our customers?
d. Which segment is the biggest?
43. Company ABC operates a nail salon that specializes in artificial nails. It has two primary __________,
women who get their nails done infrequently (i.e., once or twice per year), and women who continuously wear
fake nails.
a. segments
b. positionings
c. levels of awareness
d. market sizes
44. Marketers try to serve the segments whose needs match their __________, and in doing so hope to make
very happy and loyal customers who will be very profitable.
a. abilities to deliver
b. opportunities
c. financial resources
d. targets
45. Marketers target certain segments because it’s __________ to try to be all things to all people.
a. easier
b. strategic
c. not advisable
d. advisable
46. Regarding targeting, we iterate between our __________ vision of corporate strategy, and a __________
data-informed approach on segment size and profitability.
a. top-down, bottom-up
b. bottom-up, top-down
c. horizontal, vertical
d. vertical, horizontal
47. What are two perspectives in assessing each segment’s attractiveness in terms of its potential for targeting?
a. profitability and marketability
b. profitability and strategic fit
c. marketability and strategic fit
d. marketability and positioning
48. Potential profitability is a function of
a. current market price.
b. the market’s anticipated growth.
c. product development history.
d. the number of products made.
49. Potential strategic fit is a function of
a. the current market size.
b. the firm’s resources.
c. profitability.
d. product prices.
50. If a market looks attractive, but a firm is not particularly skilled in the market, a key question is whether the
firm can develop sufficient
a. opportunities.
b. segments.
c. capabilities.
d. products.
51. If a market doesn’t look so great, but a firm is awesome at creating products for it, the key question is
whether the firm can
a. conduct market research.
b. develop a market.
c. strategically segment the market.
d. develop even better products.
52. What is the method for trying to objectively assess one’s own corporate strengths?
a. STP
b. SWOT analysis
c. 4Ps
d. 5Cs