Deck 4: Targeting

Question 1

In SWOT analysis, our opinions matter a lot more than the customer base.

Answer 1

False

Question 2

We target for the same reason we segment - to try to be all things to all people.

Answer 2

False

Question 3

Most markets are comprised of customers whose tastes are very similar.

Answer 3

False

Question 4

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. In conducting a SWOT analysis, the launch of the competitor's product represents an opportunity.

Question 5

Strengths & weaknesses are considerations that are external to the organization.

Question 6

SWOTs are only useful for clarifying about half of all marketing questions.

Question 7

Opportunities & threats are internal considerations about the organization.

Question 8

Potential profitability is a function of the current market size, its anticipated growth, current and anticipated levels of competition, and customer behavior and expectations.

Question 9

A firm's ability to satisfy the needs of a segment impacts the decision as to whether or not to target a specific
segment.

Question 10

Opportunities and threats are usually driven by changes in one of the 5Cs.

Question 11

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.

Question 12

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.

Question 13

Two important strategic criteria for targeting segments include the firm's strengths and the attractiveness of the
segment.

Question 14

In conducting a SWOT analysis, marketers are likely to collect some market research data on customers, such as perceptual maps and information about product lines.

Question 15

The concept of targeting involves customer selection.

Question 16

A major concern of marketers is how profitable a specific segment will be.

Question 17

Some customer segments are high maintenance and not worth serving.

Question 18

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.

Question 19

There are two perspectives in assessing the attractiveness of each segment in terms of its potential for our targeting, and it is extremely important to consider only one of these.

Question 20

Targeting has to do with choosing which market segment we want to be our customers.

Question 21

The Murphy Company is determining which segment(s) to target for its new professional resume writing service. In making this determination, the company should consider quantitative factors such as the size of the segment, profitability, and growth.

Question 22

The more precisely defined the target market is, the easier the numbers are to estimate.

Question 23

E-books are taking off, but with varied platforms. Your company makes PCs, so you should probably develop a new e-reader.

Question 24

Companies typically assess their corporate strengths relative to their competitors.

Question 25

Market sizing is very complicated as there are few secondary data sources to help estimate probabilities and customer survey data on attitudes and preferences is difficult to obtain.

Question 26

Usually, the best way for a company to assess its corporate strengths is in terms of absolute measures.

Question 27

Determining which segments to target depends on an interplay of two factors: quantitative issues such as size of segment, profitability, and growth, and strategic issues, primarily the fit of the segment needing to incorporate philosophy and intended positioning.

Question 28

Census.gov is a good place to get data about the size of age cohorts.

Question 29

The choice of a target segment involves information about both the size of the market and the fit with corporate goals.

Question 30

For B2B marketers, market sizing is typically more difficult than in B2C markets.

Question 31

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.

Question 32

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.

Question 33

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 size the market.

Question 34

Poor demographic data exists for consumers and businesses in the U.S. and international markets.

Question 35

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.

Question 36

The census.gov website cross-classifies businesses by sector and size.

Question 37

Goods are usually associated with more variable costs than services.

Question 38

A perceptual map shows perceived strengths of a firm (compared to its competitors) from the customers'
perspective.

Question 39

Targeting is important but not difficult.

Question 40

It is impossible to estimate the size of a market segment.

Question 41

SWOTs are useful in clarifying marketing questions.

A) few
B) most
C) all
D) no

Question 42

Company ABC is developing a marketing strategy for a new cell phone product and just discovered that ABC's biggest competitor is launching a very similar product at almost exactly the same time. In a SWOT analysis, the competitor's product would be a(n) .

A) strength
B) weakness
C) opportunity
D) threat

Question 43

Company ABC's brands and products have perceived strengths, and its marketing department needs to consider what they can do to assure that these will be sustainable .

A) market segments
B) target markets
C) competitive advantages
D) opportunities

Question 44

Potential profitability is a function of all of the following EXCEPT:

A) current market price
B) anticipated growth
C) current market size
D) current and anticipated levels of competition

Question 45

Potential strategic fit is a function of all of the following EXCEPT:

A) firm's strengths
B) firm's resources
C) brand personalities
D) product prices

Question 46

Opportunities are .

A) internal and favorable
B) internal and unfavorable
C) external and favorable
D) external and unfavorable

Question 47

Strengths are .

A) internal and favorable
B) internal and unfavorable
C) external and favorable
D) external and unfavorable

Question 48

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

Question 49

What is the method for trying to objectively assess one's own corporate strengths?

A) STP
B) SWOT analysis
C) 4Ps
D) 5Cs

Question 50

Threats are .

A) internal and favorable
B) internal and unfavorable
C) external and favorable
D) external and unfavorable

Question 51

Opportunities and threats are usually driven by changes in one of the .

A) 5Cs
B) 4Ps
C) 3Ds
D) 4Es

Question 52

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

Question 53

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

Question 54

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

Question 55

The idea of targeting is merely one of .

A) surveying
B) assessing
C) analysis
D) selection

Question 56

Weaknesses are .

A) internal and favorable
B) internal and unfavorable
C) external and favorable
D) external and unfavorable

Question 57

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?

Question 58

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

Question 59

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

Question 60

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

Question 61

The more precisely defined the target market is, the the numbers are to estimate.

A) longer
B) shorter
C) harder
D) easier

Question 62

Which of the following is true about our company based on this perceptual map?

A) We dominate competitor 3 on quality.
B) We dominate competitor 3 on price.
C) We are dominated by competitor 1 on price.
D) We are dominated by competitor 2 on quality.

Question 63

Company ABC is in the process of sizing the market for its new web-based service that allows consumers to be matched with local attorneys specializing in the area of law pertaining to the consumer's need. The marketing team is trying to estimate the purchase decision-making process with respect to how likely it is that visitors to the site will hire an attorney identified by Company ABC. In estimating the purchase decision-making process, the marketing team should consider the elements of .

A) awareness and intention
B) awareness, trial, and repeat
C) segmentation and trial
D) trial, intention, and repeat

Question 64

When it comes to market sizing, things tend to be a bit B2B sellers compared to B2C sellers.

A) easier
B) more difficult
C) more expensive
D) riskier

Question 65

Company XYZ is considering launching a new MP3 player product. It has sized the market and it looks attractive; however, the company would also be wise to predict the of the market to better assess its attractiveness.

A) population
B) segments
C) growth
D) moving average

Question 66

For market sizing, we start with the , and break it down into the that are relevant.

A) proportion, total populations
B) total population, proportions
C) groups, individuals
D) individual, groups

Question 67

Final probability estimates require information such as industry knowledge or data that may be obtained from .

A) surveying customers
B) moving averages
C) SWOT analysis
D) surveying suppliers

Question 68

Company ABC is attempting to project the growth rate for a new product market. In order to project the growth rate, the firm will first need to .

A) create the product
B) size the market
C) promote the product
D) estimate costs

Question 69

The market for video games looks great, but your company only knows how to make thumb drives. This scenario is associated with which quadrant in a SWOT analysis?

A) upper left
B) upper right
C) lower left
D) lower right

Question 70

Corporate strengths should be assessed relative to a firm's competitors in order to understand customers and their .

A) market segments
B) awareness
C) demographics
D) purchase choices

Question 71

When customers are assessing an attribute about a firm, such as , an important thing to remember is that the defining dimensions vary among industries.

A) price
B) quality
C) perceptions
D) growth

Question 72

Based on this chart, which segment can we pass up with fewest regrets?

A) 1
B) 2
C) 3
D) 4

Question 73

If the market doesn't look so great, but we are awesome in creating products of this sort, the key question is whether we can develop a market. Which of the following would we NOT need to invest in for this strategy?

A) hiring new people
B) market research
C) advertising
D) possible product modifications

Question 74

It's always a little risky to extrapolate and predict growth, but a smart technique would be to obtain sales data in the industry and extrapolate through a(n) .

A) average
B) moving average
C) growth curve
D) regression

Question 75

Determining which segments to target depends on an interplay between issues.

A) quantitative and strategic
B) qualitative and statistical
C) calculation and estimation
D) practical and theoretical

Question 76

Which calculation is the most accurate way to estimate the size of a market?

A) [population x %aware x %trial x %repeat ] x per annum purchase
B) [population x%trial x per annum purchase] x% repeat
C) population x % aware
D) population x %aware x %trial x %repeat

Question 77

A lot of estimates go into final calculations of market size, so each component needs to be as precise as possible so any errors in the estimation are NOT .

A) ignored
B) calculated
C) compounded
D) reduced

Question 78

If a market segment looks attractive, and serving that segment fits our corporate abilities, then we should .

A) avoid it
B) collect some data
C) do some analysis
D) go for it!

Question 79

A form of comparative analysis where customers show their opinions of a firm's strengths vis­à­vis their competitors is a .

A) perceptual map
B) SWOT analysis
C) conjoint analysis
D) target comparison

Question 80

Your company is great at making CD players, but the market for those isn't so great right now. This scenario is associated with which quadrant in a SWOT analysis?

A) upper left
B) upper right
C) lower left
D) lower right