Deck 5: Selecting Target Markets

Question 1

How do business markets differ from consumer markets?

Answer 1

Answer not provided.

Question 2

Discuss the differences between the breakdown and buildup approaches to measuring company sales potential.What are the similarities between these two approaches?

Answer 2

Answer not provided.

Question 3

Discuss the advantages and disadvantages of using executive judgment in forecasting company sales.

Answer 3

Answer not provided.

Question 4

Why is it important for marketers to assess competitors before entering a market segment?

Question 5

Under what conditions would head-to-head product positioning be advisable?

Question 6

Why is it important for marketers to forecast sales potential for the entire industry as well as for the individual company?

Question 7

When evaluating market segments,which three major issues should be considered?

Question 8

Why would a firm survey its sales force to forecast company sales? Why would a firm choose an expert forecasting survey instead?

Question 9

What are the major steps of the target market selection process?

Question 10

Identify the four major categories of segmentation of variables for consumer products,and give three examples of each.

Question 11

Would a person's political views be an effective variable with which to segment a market? Why or why not?

Question 12

Which of the following is not a requirement or characteristic of a market?

A) The ability to purchase a product
B) A large number of people or organizations
C) The authority to buy a product
D) The willingness to use buying power
E) The need for a specific product in a specific product category

Question 13

Which of the following is not a characteristic of a consumer market?

A) it consists of purchasers who intend to consume or benefit from the purchased products
B) they do not buy products for the main purpose of making a profit
C) they are sometimes referred to as B2C markets
D) their purchasing decisions are always made by only one individual
E) each of us belongs to numerous markets of this type

Question 14

Compare and contrast the concentrated and differentiated targeting strategies of market segmentation.

Question 15

What are the conditions under which an undifferentiated targeting strategy is effective? Why are these conditions essential?

Question 16

Why do marketers rely heavily on demographic characteristics when segmenting consumer markets?

Question 17

What variables are used to segment business markets?

Question 18

Discuss the difference between sales forecasts and company sales potential.Why is it important for a marketer to be able to forecast sales?

Question 19

Which of these statements is not true about business markets?

A) the purchase may be made to resell the item
B) the purchase is always made by more than one individual
C) the purchase may be made to use in general daily operations
D) the purchase may be made to use in production of another product
E) they can also be referred to as organizational markets

Question 20

Any group of people who,as individuals or as organizations,have needs for products in a product class and who have the ability,willingness,and authority to buy such products is a(n)

A) business market.
B) market.
C) undifferentiated market
D) segmented market
E) market variable

Question 21

Most markets for products are made up of individuals or groups with diverse needs for products and are called ____ markets.

A) undifferentiated
B) concentrated
C) homogenous
D) differentiated
E) heterogeneous

Question 22

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

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.

Question 23

Why would a company use the undifferentiated strategy?

A) The needs of individual consumers are dissimilar,and distinctive marketing mixes are required to satisfy them.
B) The undifferentiated strategy is the one strategy that provides maximum satisfaction to the whole market.
C) The needs of individual consumers in the target market for a specific product are similar,so the organization can satisfy most customers with a single marketing mix.
D) The undifferentiated strategy is expensive to implement but tends to produce the most sales.
E) The undifferentiated strategy requires less time and fewer resources.

Question 24

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.

A) undifferentiated
B) differentiated
C) segmented
D) concentrated
E) heterogeneous

Question 25

To find a target market,a firm can use the

A) total market strategy and the undifferentiated strategy.
B) product differentiation strategy and the customer differentiation strategy.
C) demographic strategy and the psychographic strategy.
D) socioeconomic strategy and the psychological strategy.
E) undifferentiated strategy,the concentrated strategy,and the differentiated strategy.

Question 26

The ability to purchase a product is a function of

A) buying power.
B) desire.
C) willingness.
D) authority.
E) needs.

Question 27

Sixteen-year-old high school students do not form a market for alcoholic beverages because they

A) lack sufficient buying power to form a market.
B) lack the authority to purchase this type of product.
C) do not want to purchase this type of product.
D) do not have sufficient experience with this type of product.
E) lack the money to purchase this type of product.

Question 28

Adolescents are not considered part of the market for casinos because they

A) have very little buying power.
B) do not have the desire to gamble.
C) are not willing to spend their money on gambling.
D) cannot afford to gamble their savings.
E) do not have the authority to gamble.

Question 29

When marketing research shows that a group of people does not desire a particular product,the people in that group

A) are a market.
B) do not have the ability to purchase the product.
C) do not have the authority to purchase the product.
D) are not a market for the product.
E) are a market but will not purchase the product.

Question 30

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

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.

Question 31

Generally speaking,individuals who are unemployed would not be considered a target market for Mercedes or other luxury European import sedans because

A) they would not desire such products.
B) they would not be willing to purchase such products.
C) they would not have the ability to purchase such products.
D) such markets are narrowly defined geographically.
E) they are not authorized to purchase such products.

Question 32

In order to be considered a market,people do not have to have

A) a need or desire for a particular product.
B) the ability to purchase the product.
C) discretionary income to purchase the product.
D) the willingness to use their buying power.
E) the authority to buy the specific products.

Question 33

The first step in the target market selection process is

A) determining which segmentation variables to use.
B) selecting specific target markets.
C) identifying an appropriate targeting strategy.
D) evaluating relevant market segments.
E) developing market segment profiles.

Question 34

When a firm designs a single marketing mix and directs it at an entire market for a particular product,the company is using a(n)____ strategy.

A) concentrated targeting
B) differentiated
C) heterogeneous market
D) undifferentiated
E) single mix

Question 35

Marketers for C & H Sugar believe that consumers have similar needs for the product.C & H will most likely use a(n)____ approach in defining a target market.

A) undifferentiated
B) differentiated
C) product strategy
D) cost-benefit
E) demographic

Question 36

Consumers that do not own dogs are not likely to be in the market for dog food because

A) they lack the authority to purchase the dog food.
B) they do not possess the buying power for purchasing dog food.
C) their ability to purchase the dog food is questionable.
D) they do not have the need or desire for dog food.
E) they are willing to use their buying power.

Question 37

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.

A) directed
B) undifferentiated
C) segmented
D) differentiated
E) product-use

Question 38

The ProMark Company manufactures and sells only one type of ballpoint pen at just one price.All its advertising is the same and is directed at the mass market.What type of targeting strategy is the ProMark Company using?

A) Extensive
B) Undifferentiated
C) Concentrated
D) Intensive
E) Differentiated

Question 39

Pillsbury defines all purchasers of flour as its target market.What targeting strategy would be most appropriate in this case?

A) Concentrated
B) Differentiated
C) Wide appeal
D) Undifferentiated
E) Clustered

Question 40

A market in which a large proportion of customers have similar needs for a product is called a(n)____ market.

A) undifferentiated
B) heterogeneous
C) homogenous
D) differentiated
E) concentrated

Question 41

Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name.It uses the same marketing mix to reach this market.Tiffany's uses a(n)____ strategy.

A) undifferentiated
B) differentiated targeting
C) exclusive targeting
D) heterogeneous
E) concentrated targeting

Question 42

Several conditions must exist for market segmentation to be successful.These conditions include all of the following except

A) the total market should be divided so that segments can be compared on sales potential,costs,and profits.
B) customers' needs for the product must be homogeneous.
C) the company must be able to reach the chosen segment with a particular marketing mix.
D) segments must be identifiable and divisible.
E) at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment.

Question 43

The primary advantage of a concentrated targeting strategy is

A) it meets the needs of a wide range of consumers.
B) it allows a firm to specialize to meet specific customer needs.
C) it is more flexible than any other approach.
D) it is the least risky targeting approach.
E) its customers are the most willing to repurchase the same brands.

Question 44

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n)____ strategy.

A) selective
B) focused
C) differentiated
D) concentrated
E) undifferentiated

Question 45

Individuals,groups,or organizations with one or more similar characteristics that cause them to have similar product needs are classified as

A) market segments.
B) heterogeneous markets.
C) concentrated markets.
D) demographic segments.
E) strategic segments.

Question 46

A disadvantage of the concentrated targeting strategy is that

A) the firm's financial condition is tied to a single and specialized marketing mix.
B) large sales volumes cannot be generated.
C) production costs may be higher than with other strategies.
D) marketing personnel may become dissatisfied with the limited opportunities provided by this approach.
E) marketing costs are often higher than for other strategies.

Question 47

The process of dividing a total market into market groups because people within each group have relatively similar product needs is called

A) segmentation.
B) diversification.
C) target marketing.
D) concentration.
E) customization.

Question 48

Interior Designs Inc.sells expensive custom-made draperies,bedding,and accessories using a single marketing mix and is therefore most likely using a(n)____ targeting strategy.

A) concentrated
B) differentiated
C) exclusive
D) focused
E) undifferentiated

Question 49

The purpose of market segmentation is to

A) differentiate products.
B) divide a total market to enable a marketer to develop a more precise marketing mix.
C) reduce the overall cost of marketing activities.
D) identify a single marketing mix that will be satisfactory for the general market.
E) meet the needs of homogeneous markets.

Question 50

A targeting strategy in which an organization directs its marketing efforts at several segments is called a(n)____ targeting strategy.

A) differentiated
B) total market
C) concentrated
D) undifferentiated
E) integrated

Question 51

Mattel views the toy market as composed of four age groupings,each with different needs and desires.Each of these groups are known as

A) an undifferentiated market.
B) heterogeneous.
C) a market segment.
D) a marketing mix.
E) a concentrated market.

Question 52

Toyota has learned that some people want sports cars,while others want vans,trucks,sedans,and economy cars.In this instance,Toyota has found its markets to be

A) heterogeneous.
B) undifferentiated.
C) concentrated.
D) homogeneous.
E) focused.

Question 53

Which of the following products is most likely to be marketed,using an undifferentiated approach?

A) bicycle
B) computer
C) notebook
D) seasoning salt
E) oscillating fan

Question 54

Volkswagen markets its Routan to large families,its R32 racecar to men,and its Jetta to young singles.What targeting approach is Volkswagen using?

A) Concentrated
B) Strategic
C) Differentiated
D) Undifferentiated
E) Multisegmented

Question 55

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families.Procter & Gamble is using a(n)____ targeting strategy for laundry detergents.

A) multiuse
B) differentiated
C) stratified
D) undifferentiated
E) concentrated

Question 56

If Jaguar focused all its marketing efforts for the new Jaguar XKR on professionals earning more than $250,000,it would be using a(n)____ strategy.

A) homogeneous
B) undifferentiated
C) multisegmented
D) concentrated
E) stratified

Question 57

When markets are comprised of people with differing product needs,the marketing manager should use a(n)____ strategy.

A) concentrated or differentiated targeting
B) market-intensive
C) integrated
D) product-oriented
E) undifferentiated

Question 58

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

Question 59

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.

Question 60

A business advantage of the concentrated targeting strategy for any company is that it

A) requires less market research and information.
B) requires less intensive analysis of customers' characteristics and needs.
C) allows a firm to utilize all of its production capacity.
D) maintains the firm's flexibility in moving into other market segments.
E) allows a firm to develop a special marketing mix for a single market segment.

Question 61

Which of the following products is least likely to be segmented according to stages in the family life cycle?

A) Single-family homes
B) Ford automobiles
C) European vacations
D) Diet Coke
E) General Electric appliances

Question 62

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

Question 63

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.
B) geographic segmentation variables.
C) geodemographic segmentation.
D) climate information.
E) psychographic segmentation.

Question 64

Which of the following products is most likely to have its market segment based on age?

A) Bass shoes
B) Lipton Iced Tea
C) Bic pens
D) Legos
E) Carpet

Question 65

Cosmopolitan magazine,Secret deodorant,and Eve cigarettes are all products whose marketers have used segmentation based on

A) age.
B) education.
C) product use.
D) gender.
E) income.

Question 66

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

Question 67

Zerex markets its radiator liquid as a coolant in the South and an antifreeze in the North.Which of the following segmentation variables is Zerex using?

A) Demographic
B) Psychographic
C) Life cycle
D) Geographic
E) Product use

Question 68

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.

Question 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) PMSA

Question 70

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.

Question 71

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.

Question 72

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.

Question 73

Segmentation variables are usually grouped into four categories:

A) demographic,geographic,religion,and income.
B) geopolitical,income,behavioristic,and psychographic.
C) attitudes,lifestyles,behaviors,and gender.
D) geographic,demographic,psychographic,and attitudes.
E) demographic,geographic,psychographic,and behavioristic.

Question 74

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

Question 75

Population density and city size are ____ variables used for market segmentation.

A) geographic
B) demographic
C) psychographic
D) environmental
E) geodemographic

Question 76

McDonald's uses a segmentation strategy for its sandwiches based on market characteristics such as age,gender,or income.Which of the following segmentation variables is McDonald's using?

A) Demographic
B) Geographic
C) Psychographic
D) Product-related
E) Education

Question 77

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.

Question 78

If Campbell were to offer single serving "Soup for One" packages to small household markets,it would be using segmentation based on

A) income.
B) ethnicity.
C) taste.
D) geographic considerations.
E) family life cycle.

Question 79

Alpine Ski Shops U.S,is looking for new markets.Since their market is based mainly on access to snow,they would most likely use which base for segmentation?

A) behavioristic
B) demographic
C) psychographic
D) environmental
E) geographic

Question 80

Subaru is producing a new crossover van with all-wheel drive.Which of the following would be a likely variable for segmenting the market for this new model?

A) Religion
B) Geographic location
C) Income
D) Political views
E) Ethnicity