55. After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is
a.
determining the demographic variables of the target market.
b.
developing market segment profiles.
c.
determining which segmentation variables to use.
d.
selecting specific target markets.
e.
evaluating relevant market segments.
c
Easy
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Knowledge
56. Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller
homogeneous groups are called ____ variables.
a.
marketing
b.
classification
c.
segmentation
d.
stratification
e.
dividing
c
Easy
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Knowledge
57. 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.
e
Easy
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 1: Identify The Appropriate Targeting Strategy
Bloom’s: Comprehension
58. Segmentation variables are usually grouped into four categories:
a.
b.
c.
d.
e.
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: International Perspectives
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Knowledge
59. 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
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Knowledge
60. 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
MARK.PRID.16.06.04 – LO: 06–04
United States – AK – DISC: Customer
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Knowledge
61. 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
a
Easy
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Analysis
62. 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
a
Moderate
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Application
63. Kelly’s Kids is a home-based business that sells high-quality children’s clothing at premium prices using in-home
parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income.
Kelly’s Kids is using ____ variables to segment its market.
a.
demographic
b.
psychographic
c.
sociographic
d.
behavioristic
e.
geographic
a
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Application
64. A marketer that targets customers based on marital status and the presence and age of children is using
a.
behavioristic segmentation.
b.
lifestyle variables.
c.
psychographic variables.
d.
family life cycle.
e.
phase of life segmentation.
Easy
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Knowledge
65. Which of the following products is most likely to have its market segment based on age?
a.
Nike shoes
b.
Lipton Iced Tea
c.
Bic pens
d.
Legos
e.
Carpet
Easy
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Comprehension
66. 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.
Moderate
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Application
67. 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.
c
Moderate
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Knowledge
68. Population density and city size are ____ variables used for market segmentation.
a.
geographic
b.
demographic
c.
psychographic
d.
environmental
e.
geodemographic
a
Easy
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Knowledge
69. 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
Easy
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Comprehension
e.
PMSA
70. 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
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
Bloom’s: Application
71. 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.
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Comprehension
72. 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.
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Knowledge
b.
geographic segmentation variables.
c.
geodemographic segmentation.
d.
climate information.
e.
psychographic segmentation.
73. Micromarketing is
a.
a market segmentation approach in which firms focus precise marketing efforts on very small geographic
markets.
b.
developing a very specific marketing mix that will effectively meet the needs of only a small segment of the
market.
c.
marketing efforts that are tightly controlled by high-level executives in the organization.
d.
a way to segment the market to meet the needs of individuals with the same motives and personality attributes.
e.
creating advertising that is so specific to a certain type of individual that few people outside that micromarket
will respond to the message.
a
Moderate
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Knowledge
74. Which of the following is the biggest drawback to using psychographic variables?
a.
They are very costly to collect.
b.
They are difficult to measure.
c.
They give poor information about consumer needs.
d.
They do not reflect socioeconomic characteristics of consumers.
e.
The resulting segments are difficult to be reached.
Moderate
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Comprehension
c
Moderate
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Application
75. Seventh Generation is a company producing products that limit the amount of negative impact on the environment.
Their product line includes dishwashing liquid, toilet paper, paper towels, baby wipes, and laundry detergent, to name a
few. Seventh Generation is now interested in producing a new line of clothing; mostly t-shirts, shorts, and long pants for
both men and women. Their research indicates that they should use psychographic segmentation in their marketing
strategy. Which group of segmentation variables will Seventh Generation be using?
a.
Geographic location
b.
Age, sex, and socioeconomic characteristics
c.
Social class variables
d.
Personality characteristics, motives, and lifestyles
e.
Family life cycle, social class, and religion
76. When using personality characteristics as a market segmentation variable, marketers generally
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.
Moderate
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Knowledge
77. The psychographic variable that includes numerous characteristics related to people’s activities, interests, and opinion
is
a.
motive.
b.
social class.
c.
personality.
d.
stage in family life cycle.
e.
lifestyle.
e
Easy
Challenging
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: International Perspectives
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Application
78. If a company segments its market on the basis of their reasons for purchasing a particular product, the primary
segmentation variable in use is
a.
lifestyle.
b.
motives.
c.
personality.
d.
benefit expectations.
e.
personality attributes.
Moderate
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Knowledge
79. Demographic variables such as income and occupation, as well as how people spend their time and the importance of
things in their surroundings, are all factors considered in ____ segmentation.
a.
psychographic
b.
social class
c.
lifestyle
d.
personality
e.
family life cycle
c
Moderate
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Knowledge
80. A widely used system for classifying individuals on the basis of lifestyle is
a.
CMSA.
b.
PRIZM.
c.
CMSA.
d.
LIFO.
e.
Prospect Zone.
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Knowledge
81. 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
Moderate
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Comprehension
82. Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages.
This is an example of market segmentation based on
a.
behavioristic variables.
b.
benefits.
c.
lifestyles.
d.
psychographic variables.
e.
demographic variables.
a
Moderate
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Application
83. The Gap has recently produced a new line of athletic wear that closely competes with a designer label in its quality,
utility, and appearance. However, it is about half the cost of the designer brand. Product managers for The Gap line plan
to use price sensitivity, brand loyalty, and end use as variables to segment their target market. These are all _______
variables for market segmentation.
a.
psychographic
b.
usage
c.
demographic
d.
lifecycle
Moderate
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Knowledge
e.
behavioristic
84. Alli segments its diet pills based on those who have morning cravings, those who tend to overeat near the end of the
day, those who need all day long appetite suppression, and those who want appetite control and more energy. This is an
example of market segmentation based on variables of
a.
demographics.
b.
lifestyles.
c.
psychographics.
d.
behavior.
e.
personality characteristics.
Moderate
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
Bloom’s: Application
85. 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
c
Moderate
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Step 2: Determine Which Segmentation Variables To Use
86. Variables such as geographic location, type of organization, customer size, and type of product usage are used to
segment ____ markets.
a.
consumer
e
Challenging
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Application
b.
business
c.
government
d.
international
e.
most target
87. Dell segments its business markets into small business, corporate, government agencies, K-12 schools, and higher
education institutions. The primary segmentation variable used in this example is
a.
geographic location.
b.
type of organization.
c.
secondary product use.
d.
customer size.
e.
market potential.
Challenging
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Application
88. Which of the following variables would most likely be used to segment a business market?
a.
An attitude of the company’s CEO
b.
The geographic location of the company
c.
The lifestyle of the company’s buying agent
d.
Net income generated by the company
e.
Common opinions of the company’s employees
Easy
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Comprehension
89. Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International
Paper segments its market based on
Easy
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Knowledge
a.
customer size.
b.
psychographics.
c.
demographics.
d.
use of product.
e.
geographic location.
90. Bethlehem Steel provides steel for a variety of uses to its various customers. Customers have different needs for the
steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in their
production processes. The primary business segmentation variable in this example is
a.
geographic location.
b.
customer size.
c.
product use.
d.
customer importance.
e.
organization classification.
c
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Application
91. After an organization has determined which of the many segmentation variables it will use, the next step in the target
market selection process is
a.
evaluating each of the relevant market segments.
b.
selecting the specific target markets.
c.
reviewing the appropriate marketing strategy.
d.
analyzing the interaction between segmentation variables.
e.
developing market segment profiles.
e
Easy
MARK.PRID.16.06.05 – LO: 06–05
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 3: Develop Market Segment Profiles
Bloom’s: Knowledge
Moderate
MARK.PRID.16.06.04 – LO: 06–04
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 2: Determine Which Segmentation Variables To Use
Bloom’s: Application
92. ____ describe the similarities among potential customers within a market segment and explain the differences among
people in different market segments.
a.
Market segmentation variables
b.
Market segment profiles
c.
Segmentation grids
d.
Market differentiation indexes
e.
Market concentrations
93. 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.
MARK.PRID.16.06.05 – LO: 06–05
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 3: Develop Market Segment Profiles
Bloom’s: Application
94. 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.
MARK.PRID.16.06.06 – LO: 06–06
United States – BUSPROG: Analytic
MARK.PRID.16.06.05 – LO: 06–05
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 3: Develop Market Segment Profiles
Bloom’s: Knowledge
95. 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.
MARK.PRID.16.06.06 – LO: 06–06
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 4: Evaluate Relevant Market Segments
Bloom’s: Knowledge
96. General Electric calculates that the total number of light bulbs sold to consumers in the next year by all light bulb
producers is 1 billion, given anticipated marketing efforts by the firms involved. This figure represents the industry’s
a.
sales potential.
b.
market potential.
c.
target growth rate.
d.
sales forecast.
e.
sales objective.
MARK.PRID.16.06.06 – LO: 06–06
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 4: Evaluate Relevant Market Segments
Bloom’s: Application
97. 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.
MARK.PRID.16.06.06 – LO: 06–06
United States – AK – DISC: Strategy
A-Head: Step 4: Evaluate Relevant Market Segments
Bloom’s: Knowledge
98. Using the breakdown approach to sales potential, estimates are made
a.
by referring to specific geographic factors.
b.
by establishing levels of marketing effort that will be required to achieve specific levels of sales.
c.
without reference to industry marketing efforts.
d.
without reference to general economic conditions.
e.
by starting with general economic conditions.
e
Challenging
MARK.PRID.16.06.06 – LO: 06–06
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 4: Evaluate Relevant Market Segments
Bloom’s: Knowledge
99. 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
a
Challenging
MARK.PRID.16.06.06 – LO: 06–06
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 4: Evaluate Relevant Market Segments
Bloom’s: Application
100. Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a homebuilder, to find out how much fiberglass
insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number
of builders in the territory. He is using a ____ approach to measure sales potential.
a.
multivariable
b.
use of product
c.
breakdown
d.
regression
e.
buildup
e
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 4: Evaluate Relevant Market Segments
Bloom’s: Application
101. 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.
c
Easy
MARK.PRID.16.06.06 – LO: 06–06
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 4: Evaluate Relevant Market Segments
Bloom’s: Knowledge
102. When evaluating market segments, assessment of competitors is important because
a.
it is difficult to segment a market when it has multiple competitors.
b.
an absence of competitors usually creates difficulties in accurately measuring segment sales potential.
c.
sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that
together have a large share of that segment.
d.
a competitive analysis may lead to confusion as to who are the key competitors.
e.
competition is generally not a major problem as long as a marketer is aware of it.
c
Moderate
MARK.PRID.16.06.06 – LO: 06–06
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 4: Evaluate Relevant Market Segments
Bloom’s: Knowledge
103. Estimating the cost of entering a market and focusing on a specific target segment is important because
a.
cost estimates are crucial to estimating sales potential accurately.
b.
higher costs will keep other potential competitors from entering that particular segment.
c.
customers are more likely to be attracted to marketers that invest heavily in the target segment.
d.
the organization’s marketers need to know if they can reach the segment at costs equal to or below competitors’
costs.
e.
higher cost generally ensures long-term success.
Easy
MARK.PRID.16.06.06 – LO: 06–06
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 4: Evaluate Relevant Market Segments
Bloom’s: Application
104. 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.
MARK.PRID.16.06.07 – LO: 06–07
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 5: Select Specific Target Markets
Bloom’s: Knowledge
105. Frito-Lay Snack Foods is currently conducting market segmentation studies. For several segments, they have
completed competitive assessments and cost estimates. The next major step they must take is to
a.
determine which segmentation variables to use.
b.
develop market segment profiles.
c.
identify the appropriate targeting strategy.
d.
select specific target markets.
e.
develop sales forecasts.
MARK.PRID.16.06.07 – LO: 06–07
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 5: Select Specific Target Markets
Bloom’s: Application
106. 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.
MARK.PRID.16.06.06 – LO: 06–06
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Step 4: Evaluate Relevant Market Segments
Bloom’s: Knowledge
c.
develop market segment profiles.
d.
evaluate relevant market segments.
e.
select specific target markets.
107. 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.
MARK.PRID.16.06.07 – LO: 06–07
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Step 5: Select Specific Target Markets
Bloom’s: Comprehension
108. 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.
MARK.PRID.16.06.08 – LO: 06–08
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Developing Sales Forecasts
Bloom’s: Application
109. 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.
MARK.PRID.16.06.07 – LO: 06–07
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Step 5: Select Specific Target Markets
Bloom’s: Application
b.
revenue estimate.
c.
company sales prediction.
d.
market potential.
e.
sales forecast.
110. 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.
e
Easy
MARK.PRID.16.06.08 – LO: 06–08
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Developing Sales Forecasts
Bloom’s: Comprehension
111. 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
Moderate
MARK.PRID.16.06.08 – LO: 06–08
United States – BUSPROG: Analytic
United States – AK – DISC: International Perspectives
A-Head: Developing Sales Forecasts
Bloom’s: Knowledge
112. When a business has a relatively small number of customers, a preferred method of forecasting is
a.
regression analysis.
b.
trend analysis.
e
Moderate
MARK.PRID.16.06.08 – LO: 06–08
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Developing Sales Forecasts
Bloom’s: Knowledge