Question 1

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.

Accepted Answer

A)  undifferentiated
B)  differentiated
C)  product strategy
D)  cost-benefit
E)  demographicF) All of the above
G) B) and D)

Question 2

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.

Accepted Answer

A) True 
 B)False

Question 3

During the evaluation of relevant market segments, competitive assessment is used primarily to determine the possibility of additional competitors entering particular segments.

Accepted Answer

A) True 
 B)False

Question 4

A firm ordinarily uses the same sales forecasting method for determining short-range and long-range sales forecasts.

Accepted Answer

A) True 
 B)False

Question 5

The undifferentiated targeting strategy for finding a target market will likely not be successful if

Accepted Answer

A)  product positioning is needed.
B)  the firm defines the total market as its target market.
C)  people within the market have heterogeneous needs.
D)  people within the market have homogeneous needs.
E)  the firm is capable of developing a single marketing mix that satisfies all people's needs.F) B) and D)
G) A) and D)

Question 6

Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on

Accepted Answer

A)  customer size.
B)  psychographics.
C)  demographics.
D)  use of product.
E)  geographic location.F) A) and D)
G) D) and E)

Question 7

Demographic characteristics are commonly used to segment a market because they are closely related to consumers' product needs and purchasing behavior.

Accepted Answer

A) True 
 B)False

Question 8

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.

Accepted Answer

A) True 
 B)False

Question 9

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.

Accepted Answer

A)  undifferentiated
B)  differentiated
C)  segmented
D)  concentrated
E)  heterogeneousF) C) and E)
G) A) and D)

Question 10

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.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following forecasting methods is least dependent on historical sales data?

Accepted Answer

A)  Regression analysis
B)  Trend analysis
C)  Time series analysis
D)  Cycle analysis
E)  A market testF) B) and E)
G) B) and C)

Question 12

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.

Accepted Answer

A) True 
 B)False

Question 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.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  competitor sales potential.
B)  sales objective.
C)  forecasted sales.
D)  company sales potential.
E)  market potential.F) C) and E)
G) B) and D)

Question 15

​The target market selection process involves _______ steps. The first step is ____________, and the last step is _____________.

Accepted Answer

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 marketF) A) and C)
G) B) and D) B

Question 16

Which of the following statements about the undifferentiated targeting strategy is false?

Accepted Answer

A)  The undifferentiated targeting strategy should be used when the needs of individual customers are similar.
B)  The undifferentiated targeting strategy uses one promotional program aimed at everyone in the target market.
C)  The undifferentiated targeting strategy is good for use with staple items, such as sugar and salt.
D)  The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market.
E)  The opposite of the undifferentiated targeting strategy is the differentiated targeting strategy.F) B) and E)
G) C) and D)

Question 17

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

Accepted Answer

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.F) B) and C)
G) All of the above D

Question 18

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?

Accepted Answer

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 genderF) A) and C)
G) A) and B)

Question 19

​Which of the following statements about market segment profiles is true?

Accepted Answer

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.F) None of the above
G) A) and B) B

Question 20

If Morton Salt saw all table salt customers as pretty much alike and thus offered only one marketing mix, it would be using the ____ strategy.

Accepted Answer

A)  directed
B)  undifferentiated
C)  segmented
D)  differentiated
E)  product-useF) B) and C)
G) A) and E)

Exam 6: Target Markets Segmentation and Evaluation

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.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

During the evaluation of relevant market segments, competitive assessment is used primarily to determine the possibility of additional competitors entering particular segments.

Correct AnswerverifiedShow Answer

A firm ordinarily uses the same sales forecasting method for determining short-range and long-range sales forecasts.

Correct AnswerverifiedShow Answer

The undifferentiated targeting strategy for finding a target market will likely not be successful if

Correct AnswerverifiedShow Answer

Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on

Correct AnswerverifiedShow Answer

Demographic characteristics are commonly used to segment a market because they are closely related to consumers' product needs and purchasing behavior.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Which of the following forecasting methods is least dependent on historical sales data?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

​The target market selection process involves _______ steps. The first step is ____________, and the last step is _____________.

Correct AnswerverifiedB

Which of the following statements about the undifferentiated targeting strategy is false?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedD

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?

Correct AnswerverifiedShow Answer

​Which of the following statements about market segment profiles is true?

Correct AnswerverifiedB

If Morton Salt saw all table salt customers as pretty much alike and thus offered only one marketing mix, it would be using the ____ strategy.

Correct AnswerverifiedShow Answer

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The target market selection process involves _ steps. The first step is , and the last step is _______.

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B

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D

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Which of the following statements about market segment profiles is true?

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B

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