Question 1

Hot Topic is a California-based retailer that opened six Torrid plus-size-only retail stores that cater to women aged 15-30. Hot Topic expects its six Torrid stores to achieve $56 million in revenues in 2014. This $56 million is a(n):
A)market penetration estimate.
B)market share estimate.
C)marketing objective.
D)sales forecast.

Accepted Answer

The $56 million revenue estimate is a sales forecast, as it is a projection of the amount of revenue the six Torrid stores are expected to generate in 2014.

Question 2

As part of the budget processing, a(n)__________potential total company profitability. _ is often included to understand
A)industry potential
B)sales forecast
C)market potential
D)Delphi forecast

Accepted Answer

A sales forecast is often included in the budget process to understand potential total company profitability, as it estimates future sales volumes over a specific period, directly impacting revenue and financial planning.

Question 3

1.5 million cases-what Pillsbury, Betty Crocker, Duncan Hines, and other cake mix producers would sell to Canadian consumers under the assumptions that (1)past patterns of dessert consumption continue, and (2)the same level of promotional effort continues relative to other desserts, illustrates:
A)the minimum anticipated sales in related industries not including federal, state, and local taxes
B)the sum of products in a particular industry sold domestically under normal economic conditions
C)total industrial products sold worldwide
D)the maximum total sales of a product by all firms to a segment under specified environmental conditions and marketing efforts of the firms

Accepted Answer

The scenario given in the question illustrates the maximum anticipated sales of cake mix by all firms to Canadian consumers, assuming that past consumption patterns and promotional efforts remain the same. This makes it an example of total potential market demand, which falls under option D. Options A, B, and C do not accurately reflect the given scenario.

Question 4

All of the following factors are essential to develop both market potential and sales forecast estimates EXCEPT:
A)time period involved.
B)market share.
C)market segments involved.
D)unit of measurement.

Accepted Answer

While market share is important in evaluating a company's competitive position, it is not essential for developing market potential and sales forecast estimates. The other factors listed - time period, market segments, and unit of measurement - are all necessary to accurately estimate potential sales.

Question 5

When Harold Hansen was marketing manager at Creative Concepts Manufacturing Company, he estimated the company would sell a total of 500,000 of their new sandstone coasters decorated with Native American petroglyphs the first year on the market although the company had never before produced a product like that. What is this type of estimate called?
A)a Delphi forecast
B)a buildup forecast
C)a lost-horse forecast
D)a direct forecast

Accepted Answer

This is a direct forecast because it is based on the marketing manager's own judgment and not on any statistical analysis or input from other parties.

Question 6

When Nokia considered entering the African smartphone market, one of the fastest growing regions in the world for smartphone adoption, it calculated the total cellphone and smartphone sales already occurring in this region to use in its analysis. Nokia is
Determining the__________ for the market.
A)sales forecast
B)top-down forecast
C)market potential
D)growth potential

Accepted Answer

Nokia is calculating the potential size of the African smartphone market, so it is determining the market potential. The sales forecast would be a prediction of future sales, which is not mentioned in the scenario. Top-down forecasting involves starting with a large forecast and breaking it down into smaller segments, which is not mentioned in the scenario. Growth potential refers to the potential for a particular product or business to grow, which is not mentioned in the scenario.

Question 7

1.5 million cases-what Pillsbury, Betty Crocker, Duncan Hines, and other cake mix producers would sell to Canadian consumers under the assumptions that (1)past patterns of dessert consumption continue, and (2)the same level of promotional effort continues relative to other desserts, illustrates:
A)market forecast.
B)market share.
C)company growth potential.
D)industry potential.

Accepted Answer

The answer of 1.5 million cases-what Pillsbury, Betty Crocker, Duncan...

Question 8

The least complex sales forecasting technique is the:
A)direct forecast.
B)Delphi forecast.
C)survey of buyers' intentions forecast.

Accepted Answer

The direct forecast is the least complex sales forecasting technique as it involves using past sales data to project future sales numbers. It does not require any additional surveys or opinions from external sources, making it a simple and straightforward method. The Delphi forecast and survey of buyers' intentions forecast are more complex methods that involve opinions and input from outside sources.

Question 9

A product manager for Wilson's tennis racquets in 2010, who needed to make a sales forecast through 2013, started with the known value of 2009 sales and listed the positive factors (more tennis courts, more TV publicity)and the negative ones (competition from other sports, high prices of graphite and ceramic racquets)to arrive at the final series of annual sales forecasts. The Wilson product manager uses a
________ forecast.
A)lost-horse
B)salesforce survey
C)top-down
D)buildup

Accepted Answer

The lost-horse forecast method involves starting with the last known value and adjusting for positive and negative factors to make future predictions, which is what the product manager did.

Question 10

Crescent-Puritan Laundry and Dry Cleaning uses last year's sales as a starting point to estimate next year's sales and then looks at positive and negative influences that may affect sales. This is an example of:
A)linear trend extrapolation.
B)a lost-horse forecast.
C)statistical inference.
D)experimental estimation.

Accepted Answer

A lost-horse forecast starts with a known value (in this case, last year's sales) and then adjusts for factors expected to increase or decrease the future value (positive and negative influences on sales). This method does not rely solely on statistical or mathematical models but incorporates adjustments based on expected changes, making it distinct from options A, C, and D.

Question 11

The Ohio River Boatworks uses last year's sales as a starting point to estimate next year's sales of its boats, lists factors that could affect the forecast, assesses whether they have a positive or negative impact, and makes the final forecast. The Ohio River Boatworks uses a __________forecast.
A)buildup
B)top-down
C)salesforce survey
D)lost-horse

Accepted Answer

The lost-horse forecast method involves starting with last year's sales, considering factors that could affect future sales, and adjusting the forecast accordingly, which matches the process described.

Question 12

Down by the Bay is a Muskoka-based retailer that sells cottage furniture and other items for cottagers. Down by the Bay expects to achieve $3 million in revenues in 2014. This $3 million is a(n):
A)market share estimate.
B)marketing objective.
C)sales forecast.
D)market penetration estimate.

Accepted Answer

The $3 million is a sales forecast, which is an estimate of how much a company expects to sell in a given time period. It is not a market share estimate or market penetration estimate, which both refer to a company's share of the overall market. It is also not a marketing objective, which is a specific goal or target that a company sets for its marketing efforts, such as increasing brand awareness or boosting sales by a certain percentage.

Question 13

"Number of store visits per week" is to "usage rate," that "market potential" is ________.
A)company growth potential
B)market share
C)market forecast
D)industry potential

Accepted Answer

"Market potential" is analogous to "industry potential" as both refer to the overall capacity or potential within a market or industry, similar to how "number of store visits per week" relates to the broader concept of "usage rate."

Question 14

Leeper Publishing Company specializes in books on trout fishing in the United States. Next year, it expects to achieve total book sales of $187,000. What is this estimate called?
A)a market penetration estimate
B)a marketing objective
C)a sales forecast
D)a market share estimate

Accepted Answer

The estimate of achieving total book sales of $187,000 is a sales forecast, which is a projection of future sales based on past performance, market trends, and other relevant factors. It helps companies plan their production, inventory, and marketing strategies.

Question 15

The most commonly used forecasting technique is the:
A)judgments of the decision maker.
B)statistical methods.
C)surveys of knowledgeable groups.
D)technological methods.

Accepted Answer

The most commonly used forecasting technique is the judgments of the decision maker.

Question 16

A new business is considering offering three different products to three different segments. Which statement best describes a useful tool to determine which segment to enter first base on sales?
A)the maximum total sales of a product by all firms to a segment under specified environmental conditions and marketing efforts of the firms
B)the sum of products in a particular industry sold domestically under normal economic conditions
C)the total of all products sold nationally
D)the minimum anticipated sales in related industries not including federal, state, and local taxes

Accepted Answer

The tool that best fits the scenario described is market potential, which measures the maximum sales that a product or service can achieve in a particular market segment under given conditions. By using market potential analysis, the business can estimate the revenue that each product could generate in each segment and decide which one to prioritize based on the highest potential. The other options (B, C, and D) do not directly relate to market potential analysis and do not provide relevant information for the decision-making process.

Question 17

When you enter the grocery store you ask yourself: "How many litres of milk should I buy?" This is an example of a(n)
A)Delphi forecast
B)technological forecast
C)direct forecast
D)statistical forecast

Accepted Answer

A direct forecast is a simple and straightforward method of forecasting, where the forecaster simply asks customers or potential customers for their opinions and intentions. In this scenario, the question of how much milk to buy is a direct forecast as the forecaster is asking themselves how much they need. This method can be quick and cost-effective, as it does not require any complex analysis or extrapolation of data.

Question 18

A marketing manager begins a forecast with the 2014 sales forecast and begins listing all of the factors that may affect a 2016 sales forecast. What type of forecast is the manager conducting?
A)a statistical method
B)lost-horse
C)Delphi
D)a technological forecast

Accepted Answer

The lost-horse forecast involves starting with a known quantity (in this case, the 2014 sales forecast) and adjusting it based on factors that are expected to influence future outcomes (the 2016 sales forecast). This method relies on adjusting past data based on anticipated changes, rather than using statistical or technological methods, or the consensus-building approach of the Delphi method.

Question 19

Pristine Carpet Cleaning uses last year's sales as a starting point to estimate next year's sales and then looks at positive and negative influences that may affect sales. This is an example of:
A)a lost-horse forecast.
B)linear trend extrapolation.
C)statistical inference.
D)experimental estimation.

Accepted Answer

A lost-horse forecast involves starting with the last known value and adjusting for positive and negative influences to estimate future values.

Question 20

"Market potential" is to "industry potential," that "sales forecast" is to ___________.
A)company sales target
B)market share
C)company forecast
D)environmental forecast

Accepted Answer

"Market potential" refers to the entire size of the market for a product or service, while "industry potential" is a subset of this, focusing on what a particular industry within that market could potentially achieve. Similarly, a "sales forecast" is an estimate of future sales for a specific company, making "company forecast" the parallel term, as it is a forecast specific to a company, just as a sales forecast is.

Quiz 9: Market Segmentation, Targeting, and Positioning

Hot Topic is a California-based retailer that opened six Torrid plus-size-only retail stores that cater to women aged 15-30. Hot Topic expects its six Torrid stores to achieve $56 million in revenues in 2014. This $56 million is a(n) :

As part of the budget processing, a(n) __________potential total company profitability. _ is often included to understand

1.5 million cases-what Pillsbury, Betty Crocker, Duncan Hines, and other cake mix producers would sell to Canadian consumers under the assumptions that (1) past patterns of dessert consumption continue, and (2) the same level of promotional effort continues relative to other desserts, illustrates:

All of the following factors are essential to develop both market potential and sales forecast estimates EXCEPT:

When Nokia considered entering the African smartphone market, one of the fastest growing regions in the world for smartphone adoption, it calculated the total cellphone and smartphone sales already occurring in this region to use in its analysis. Nokia is Determining the__________ for the market.

1.5 million cases-what Pillsbury, Betty Crocker, Duncan Hines, and other cake mix producers would sell to Canadian consumers under the assumptions that (1) past patterns of dessert consumption continue, and (2) the same level of promotional effort continues relative to other desserts, illustrates:

The least complex sales forecasting technique is the:

Crescent-Puritan Laundry and Dry Cleaning uses last year's sales as a starting point to estimate next year's sales and then looks at positive and negative influences that may affect sales. This is an example of:

The Ohio River Boatworks uses last year's sales as a starting point to estimate next year's sales of its boats, lists factors that could affect the forecast, assesses whether they have a positive or negative impact, and makes the final forecast. The Ohio River Boatworks uses a __________forecast.

Down by the Bay is a Muskoka-based retailer that sells cottage furniture and other items for cottagers. Down by the Bay expects to achieve $3 million in revenues in 2014. This $3 million is a(n) :

"Number of store visits per week" is to "usage rate," that "market potential" is ________.

Leeper Publishing Company specializes in books on trout fishing in the United States. Next year, it expects to achieve total book sales of $187,000. What is this estimate called?

The most commonly used forecasting technique is the:

A new business is considering offering three different products to three different segments. Which statement best describes a useful tool to determine which segment to enter first base on sales?

When you enter the grocery store you ask yourself: "How many litres of milk should I buy?" This is an example of a(n)

A marketing manager begins a forecast with the 2014 sales forecast and begins listing all of the factors that may affect a 2016 sales forecast. What type of forecast is the manager conducting?

Pristine Carpet Cleaning uses last year's sales as a starting point to estimate next year's sales and then looks at positive and negative influences that may affect sales. This is an example of:

"Market potential" is to "industry potential," that "sales forecast" is to ___________.