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KEYWORDS:
Bloom's: Knowledge
158. Lifestyle analysis focuses on people's activities, interests, and opinions.
a.
True
b.
False
159. The ways in which customers use a particular product may be a basis for segmenting the market.
a.
True
b.
False
160. One way marketers can segment business markets is according to their geographic location.
a.
True
b.
False
161. A marketer may segment a market in terms of the benefits that customers expect to receive from a particular product.
a.
True
b.
False
162. A market segment profile deals primarily with demographic characteristics.
a.
True
b.
False
163. 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
164. 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
165. A market segment profile provides customers with an understanding of how a business can use its capabilities.
a.
True
b.
False
166. 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
167. The information yielded by market segment profiles usually is not very useful later in the marketing process.
a.
True
b.
False
168. The two general approaches to measuring company sales potential are the breakdown and the buildup approach.
a.
True
b.
False
169. 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
170. Market potential is the amount of a product that an organization could sell during a specified time period.
a.
True
b.
False
171. The size of the market potential places limits on the size of the company sales potential.
a.
True
b.
False
172. 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
173. The sum of firms' marketing efforts equals industry marketing efforts.
a.
True
b.
False
174. 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
175. 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
176. 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
177. Consideration of the firm's overall objectives usually does not influence the final selection of a target market
segment.
a.
True
b.
False
178. 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
179. 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
180. Sales forecasts are always long-range in nature.
a.
True
b.
False
181. The executive judgment method of sales forecasting is very accurate in predicting future sales.
a.
True
b.
False
182. In developing a company sales forecast, the forecasting methods are limited to surveys and correlation methods.
a.
True
b.
False
183. The types of surveys used to forecast sales are customer, executive, and competitor surveys.
a.
True
b.
False
184. Surveys are sometimes used to forecast sales.
a.
True
b.
False
185. 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
186. Customer forecasting surveys as a means of forecasting sales are not appropriate for a firm that has relatively few
customers.
a.
True
b.
False
187. 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
188. A marketer can use regression analysis techniques to predict the sales of new products.
a.
True
b.
False
189. Through market tests, a forecaster gains data regarding consumers' intended purchases.
a.
True
b.
False
190. A firm ordinarily uses the same sales forecasting method for determining short-range and long-range sales forecasts.
a.
True
b.
False
191. 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
192. The target market selection process involves _______ steps. The first step is ____________, and the last step is
_____________.
a.
Five; Select the target market; Identify the targeting strategy
b.
Five; Identify the targeting strategy; Select the target market
c.
Six; Select the target market; Evaluate the potential of the target market
d.
Five; Determine segmentation variables; Select the target market
e.
Six; Develop market segment profiles; Select the target market
193. You have just been promoted to vice president of marketing for your firm. Unlike your predecessor, you believe the
firm can increase its sales in a market by focusing on more than one segment of the market. You recognize to do this
means your firm will incur higher production costs. Based on this information, which of the following targeting strategies
are you advocating?
a.
A concentrated targeting strategy
b.
An undifferentiated targeting strategy
c.
A broad-based targeting strategy
d.
A differentiated targeting strategy
e.
A heterogeneous targeting strategy
194. The marketer uses segmentation variables to divide a market into segments. All of the following statements are true
about segmentation variables except:
a.
The variables should be related to the customer’s needs relative to the product being marketed.
b.
The variables must be measurable.
c.
The variables should be based solely on demographic characteristics.
d.
The variables should be related to the customer’s behavior relative to the product being marketed.
e.
The variables should be related to the customer’s uses of the product being marketed.
195. 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
196. 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
197. 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.
a.
Homogeneous; Undifferentiated
b.
Heterogeneous; Undifferentiated
c.
Heterogeneous; Concentrated
d.
Homogeneous; Correlated
e.
Heterogeneous; Concentrated
198. ____________ 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
199. 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
200. Your marketing team is currently working through the target market selection process to identify which customers
your firm will target with a new technology product being developed. You are currently in the process step where you
must consider the target market characteristics, the product attributes, and the firm’s objectives and resources. Which of
the five steps in the target market selection process are you currently working on?
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
201. If your firm uses a ______________ targeting strategy, you can expect to need __________ production processes to
support the strategy.
a.
Concentrated; More
b.
Differentiated; More
c.
Undifferentiated; More
d.
Differentiated; Less
e.
Undifferentiated; More
202. 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
203. Which of the following statements about market segment profiles is true?
a.
They can be used to calculate a lifetime value for each customer in a segment.
b.
They are used to describe differences among people in different market segments.
c.
They can only deal with demographic characteristics.
d.
They provide marketers with a cost estimate for serving potential customer groups.
e.
They cannot be used to describe similarities among potential customers.
204. Your firm’s finance department has just issued new guidelines for how market segments are to be evaluated based on
sales expectations. In general, the new guidelines require the marketers to measure company sales potential based on a
general economic forecast for a time period. Which one of the following types of market segment evaluation approaches
is the finance department advocating?
a.
Breakdown approach
b.
Economic analysis approach
c.
Buildup approach
d.
Market potential approach
e.
Gross margin approach
205. In order for the marketer to achieve effective market segmentation, which of the following conditions must exist:
a.
The segments must be small enough to manage effectively.
b.
It must be possible to do a regression analysis on potential segments.
c.
Consumers’ needs for the product must be homogeneous.
d.
The firm must be able to sell effectively to the chosen segment with a specific sales price.
e.
The segment must have enough profit potential to justify the development of a special marketing mix for the
segment.
206. 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
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
