151. A company sometimes defines a total market as its target market.
a. True
b. False
152. One condition for effective segmentation is that at least one segment must have substantial profit potential.
a. True
b. False
153. A firm using a concentrated targeting strategy aims its marketing activities at one segment of a market.
a. True
b. False
Chapter 5 – Target Markets: Segmentation and Evaluation
154. 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
155. An undifferentiated targeting strategy does not target a single market with one marketing mix.
a. True
b. False
156. 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
Chapter 5 – Target Markets: Segmentation and Evaluation
157. A differentiated targeting strategy is when the organization targets two or more markets by developing a single
marketing mix.
a. True
b. False
158. Only one variable can be used to segment a market.
a. True
b. False
159. Segmentation variables are characteristics of individuals, groups, or organizations in a total market.
a. True
b. False
Chapter 5 – Target Markets: Segmentation and Evaluation
160. A segmentation variable is used to group smaller markets into one larger market.
a. True
b. False
161. 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
162. Family life cycle is a psychological dimension used for segmenting markets.
a. True
b. False
Chapter 5 – Target Markets: Segmentation and Evaluation
163. A firm operating in a one-state market would not regionalize its market.
a. True
b. False
164. 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
165. One problem with using psychographic variables for segmentation purposes is that they are difficult to measure
accurately.
a. True
b. False
Chapter 5 – Target Markets: Segmentation and Evaluation
166. Motives can be used to segment markets.
a. True
b. False
167. Lifestyle is a product-related variable.
a. True
b. False
168. Lifestyle analysis focuses on people’s activities, interests, and opinions.
a. True
b. False
Chapter 5 – Target Markets: Segmentation and Evaluation
169. The ways in which customers use a particular product may be a basis for segmenting the market.
a. True
b. False
170. One way marketers can segment business markets is according to their geographic location.
a. True
b. False
171. A marketer may segment a market in terms of the benefits that customers expect to receive from a particular
product.
a. True
b. False
Chapter 5 – Target Markets: Segmentation and Evaluation
172. A market segment profile deals primarily with demographic characteristics.
a. True
b. False
173. 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
174. 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
Chapter 5 – Target Markets: Segmentation and Evaluation
175. A market segment profile provides customers with an understanding of how a business can use its capabilities.
a. True
b. False
176. 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
177. The information yielded by market segment profiles usually is not very useful later in the marketing process.
a. True
b. False
Chapter 5 – Target Markets: Segmentation and Evaluation
178. The two general approaches to measuring company sales potential are the breakdown and the buildup approach.
a. True
b. False
179. 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
180. Market potential is the amount of a product that an organization could sell during a specified time period.
a. True
b. False
Chapter 5 – Target Markets: Segmentation and Evaluation
181. The size of the market potential places limits on the size of the company sales potential.
a. True
b. False
182. 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
183. The sum of firms’ marketing efforts equals industry marketing efforts.
a. True
b. False
Chapter 5 – Target Markets: Segmentation and Evaluation
184. 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
185. 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
186. 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
Chapter 5 – Target Markets: Segmentation and Evaluation
187. Consideration of the firm’s overall objectives usually does not influence the final selection of a target market
segment.
a. True
b. False
188. At times, after doing segmentation analysis, marketers in an organization decide not to enter any segments.
a. True
b. False
189. A company sales forecast is the amount of a product that a firm actually expects to sell during a specific time
period.
a. True
b. False
Chapter 5 – Target Markets: Segmentation and Evaluation
190. Sales forecasts are always long-range in nature.
a. True
b. False
191. The executive judgment method of sales forecasting is very accurate in predicting future sales.
a. True
b. False
192. In developing a company sales forecast, the forecasting methods are limited to surveys and correlation methods.
a. True
b. False
Chapter 5 – Target Markets: Segmentation and Evaluation
193. The types of surveys used to forecast sales are customer, executive, and competitor surveys.
a. True
b. False
194. Surveys are sometimes used to forecast sales.
a. True
b. False
195. In a customer 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
Chapter 5 – Target Markets: Segmentation and Evaluation
196. Customer surveys as a means of forecasting sales are not appropriate for a firm that has relatively few customers.
a. True
b. False
197. One limitation of the sales force survey technique is that salespeople often believe that their sales goals are
determined by their sales estimates.
a. True
b. False
198. Trend analysis is a sales forecasting technique based on historical sales data.
a. True
b. False
Chapter 5 – Target Markets: Segmentation and Evaluation
199. A marketer can use regression analysis techniques to predict the sales of new products.
a. True
b. False
200. Through market tests, a forecaster gains data regarding consumers’ intended purchases.
a. True
b. False
201. A firm ordinarily uses the same sales forecasting method for determining short-range and long-range sales
forecasts.
a. True
b. False
Chapter 5 – Target Markets: Segmentation and Evaluation