Deck 4: Targeting

Question 1

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

Answer 1

True

Question 2

Some customer segments are high maintenance and not worth serving.

Answer 2

True

Question 3

Top-down and bottom-up perspectives are available to assess the attractiveness of each segment in terms of its potential for targeting, but only the top-down perspective should be considered.

Answer 3

False

Question 4

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 5

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 6

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 7

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 8

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

Question 9

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

Question 10

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

Question 11

Opportunities and threats are internal considerations about the organization.

Question 12

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

Question 13

Marketers ask the most important question: "How likely is it that a segment will be profitable?"

Question 14

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

Question 15

We should target customers that match our abilities to deliver.

Question 16

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

Question 17

The concept of targeting involves customer selection.

Question 18

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

Question 19

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.A SWOT analysis can help the company determine if this is an opportunity or a threat.

Question 20

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

Question 21

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

Question 22

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

Question 23

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

Question 24

E-books are taking off on several different platforms.Your company makes PCs, so you should develop a new e-reader.

Question 25

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

Question 26

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

Question 27

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

Question 28

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 29

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 use several estimates to size the market.

Question 30

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 31

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

Question 32

Goods are usually associated with more variable costs than services.

Question 33

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

Question 34

When estimating market size for B2B, start with the total population and break it down into the proportions that are relevant.

Question 35

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 36

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

Question 37

Determining which segments to target depends on an interplay of two factors: (1) quantitative issues such as size of segment, profitability, and growth, and (2) strategic issues, primarily the fit of the segment needing to incorporate philosophy and intended positioning.

Question 38

Companies typically assess their corporate strengths relative to their competitors.

Question 39

Good demographic data help when sizing a market.

Question 40

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

Question 41

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 42

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 43

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

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

Question 44

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 45

Potential strategic fit is a function of

A) the current market size.
B) the firm's resources.
C) profitability.
D) product prices.

Question 46

Strengths are

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

Question 47

Threats are

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

Question 48

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 49

Potential profitability is a function of

A) current market price.
B) the market's anticipated growth.
C) product development history.
D) the number of products made.

Question 50

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 51

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 52

Opportunities are

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

Question 53

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

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

Question 54

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 55

SWOTs are useful in clarifying __________ marketing questions.

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

Question 56

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 57

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 58

Weaknesses are

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

Question 59

The idea of targeting is merely one of

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

Question 60

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

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

Question 61

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

Question 62

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 63

Company ABC makes kitchen appliances that have many features in great demand by professional chefs whose only interest is in the foods they can produce.Based on its customers, ABC should try to dominate the market in

A) price.
B) quality.
C) delivery area.
D) quantity.

Question 64

Which of the following is needed to develop a market?

A) hiring new people
B) market research
C) developing new skills
D) additional suppliers

Question 65

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 66

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 67

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 68

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 69

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 70

A form of comparative analysis where customers show their opinions of a firm's strengths vis-à-vis their competitors is a

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

Question 71

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 72

Most attributes and benefits in many product categories can be whittled down to

A) needs and wants.
B) price and quality.
C) profit and loss.
D) success and failure.

Question 73

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

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

Question 74

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

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

Question 75

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 76

A market is easier to estimate if the target market

A) is small.
B) is large.
C) has more components.
D) is defined.

Question 77

When sizing a market, errors in estimates are

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

Question 78

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 79

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 80

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

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