Question 1

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.

Accepted Answer

Quantitative factors such as size, profitability, and growth are important considerations in determining target segments.

Question 2

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

Accepted Answer

When the target market is specific and well defined, it is easier to gather data and insights about the customers, their preferences, behavior and purchasing patterns. This leads to more accurate estimates of the potential size of the market, demand for the product or service, and revenue projections. On the other hand, a vague or broad target audience makes it harder to make accurate predictions and can lead to less effective marketing strategies.

Question 3

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

Accepted Answer

Just because e-books are becoming more popular doesn't necessarily mean that a company that makes PCs should immediately make an e-reader. They may choose to do so, but it's not a given.

Question 4

Companies typically assess their corporate strengths relative to their competitors.

Accepted Answer

This statement is true. Companies often conduct competitive analysis to evaluate their position in the market and identify areas where they can improve their competitive advantage.

Question 5

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.

Accepted Answer

The answer of Market sizing is very complicated as there...

Question 6

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

Accepted Answer

It is not necessarily true that absolute measures are the best way to assess corporate strengths. Other types of measures, such as relative measures (comparing the company's performance to that of competitors or industry benchmarks) or qualitative measures (assessing factors like reputation or brand image), can also be important in evaluating a company's strengths. The most effective approach may depend on the specific context and goals of the assessment.

Question 7

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.

Accepted Answer

This statement accurately reflects the two main factors to consider when selecting target segments - both quantitative and strategic issues are important. The quantitative factors include things like the size and profitability of the segment, while strategic factors are concerned with how well a segment fits with a company's overall philosophy and intended brand positioning.

Question 8

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

Accepted Answer

Census.gov provides data about the population and demographic characteristics, including age cohorts.

Question 9

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

Accepted Answer

The choice of a target segment should take into consideration both the size of the market and the fit with corporate goals. This ensures that the company is focusing its marketing efforts on a profitable and relevant customer group.

Question 10

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

Accepted Answer

The answer of For B2B marketers, market sizing is typically...

Question 11

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.

Accepted Answer

The answer of Regardless of whether a marketer is working...

Question 12

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.

Accepted Answer

The lower-left quadrant in a SWOT analysis represents weaknesses, which are internal factors that limit the company's performance. A market that doesn't look so great would fall under threats, which are external factors that could harm the company's performance. Therefore, this scenario is consistent with the upper-right quadrant in a SWOT analysis.

Question 13

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.

Accepted Answer

Sizing the market is an important step in determining the revenue and profit potential for a new product. It helps the company understand the size of the market opportunity and the demand for their product, which can inform their pricing and production strategies.

Question 14

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

Accepted Answer

The U.S. and many international markets have extensive demographic data collected by government agencies, research firms, and private companies, providing detailed insights into consumer and business demographics.

Question 15

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.

Accepted Answer

This statement is true. Inaccuracies in any of the estimates used to determine market size can lead to significant errors in the final calculation, as these errors are compounded and multiplied throughout the process. Therefore, it is crucial to ensure that each component of the estimation is as precise as possible to minimize errors.

Question 16

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

Accepted Answer

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

Question 17

Goods are usually associated with more variable costs than services.

Accepted Answer

The answer of Goods are usually associated with more variable...

Question 18

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

Accepted Answer

A perceptual map does indeed show the perceived strengths (and weaknesses) of a firm in comparison to its competitors from the customers' perspective. It is a visual representation of how customers perceive different brands or products in a given market.

Question 19

Targeting is important but not difficult.

Accepted Answer

While targeting may require some research and strategy, it is not generally considered to be a difficult task. Effective targeting can help businesses to reach their desired audience and achieve their marketing goals.

Question 20

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

Accepted Answer

The answer of It is impossible to estimate the size...

Quiz 4: Targeting