Question 1

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):

Accepted Answer

The $3 million figure is a sales forecast, as it represents the expected revenue that Down by the Bay will generate in the upcoming year. A marketing objective would be a specific goal set by the company to achieve through marketing activities, such as increasing brand awareness or launching a new product line. A market penetration estimate would be a calculation of the percentage of potential customers that the company is currently reaching, while a market share estimate would be an estimate of the company's share of total sales in its industry.

Question 2

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?

Accepted Answer

The estimate of total book sales for the upcoming year is referred to as a sales forecast. A marketing objective is a specific goal or target that a company aims to achieve through its marketing efforts. Market penetration estimate and market share estimate both relate to the company's position in the market and its ability to capture a portion of it, but they do not relate specifically to revenue or total sales.

Question 3

Superba Cravats is a major marketer of men's bow ties.It estimates there are 20 million buyers of bow ties each year,that the average wearer of bow ties purchases 4 ties per year,and that the average price per bow tie is $10.Superba Cravats has a market share of 20 percent.The sales forecast or company forecast for Superba would be:

Accepted Answer

To calculate the sales forecast for Superba Cravats, we need to multiply the estimated number of buyers (20 million) by the average number of ties purchased per year (4) and the average price per tie ($10). Then, we need to multiply this by the company's market share (20%).

Sales forecast = Number of buyers x Average ties purchased x Average price x Market share
Sales forecast = 20 million x 4 x $10 x 20%
Sales forecast = $160 million

Therefore, the correct answer is B) $160 million.

Question 4

Superba Cravats is a major marketer of men's bow ties.It estimates there are 20 million buyers of bow ties each year,that the average wearer of bow ties purchases 4 ties per year,and that the average price per bow tie is $10.Superba Cravats currently has a market share of 20 percent,which it expects will increase to 25 percent in the coming year as a result of its new relationship marketing program.The sales forecast or company forecast for Superba for the coming year would be:

Accepted Answer

The calculation is as follows:

Total market size = 20 million buyers x 4 bow ties per buyer = 80 million bow ties
Total revenue of the industry = 80 million bow ties x $10 per bow tie = $800 million
Superba Cravats market share = 20% of the market = 0.2 x $800 million = $160 million
Expected market share next year = 25% of the market = 0.25 x $800 million = $200 million

Therefore, the sales forecast or company forecast for Superba for the coming year would be $200 million.

Question 5

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

Accepted Answer

"Market potential" is the total demand for a product in an industry, while "industry potential" is the potential demand within that industry. Similarly, "sales forecast" is the expected sales for a company, while "company forecast" refers to the company's overall expected performance, including sales.

Question 6

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

Accepted Answer

Market potential refers to the maximum sales potential of a particular product or service in a specific market within a defined timeframe. Industry potential refers to the maximum sales potential of all products or services within a specific market. Therefore, option A, industry potential, is the best choice.

Question 7

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):

Accepted Answer

The $56 million is a sales forecast as it represents an estimated amount that the Torrid stores will generate in revenue in 2014.

Question 8

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?

Accepted Answer

This type of estimate is referred to as a direct forecast, which is based on the opinions of experts or past sales data. Harold Hansen used his experience as a marketing manager to make an educated guess about the product's potential sales.

Question 9

Several years ago dairies got the idea to target chocolate milk sales at a new market-adults.They did this by shifting perceptions of chocolate milk as a children's moderately nutritional drink to it being perceived as a highly-nutritious adult drink.This illustrates successful implementation of a ___________.

Accepted Answer

The scenario describes the implementation of a repositioning strategy, which involves changing the target audience's perception of a product's value proposition. The dairy industry achieved this by shifting the image of chocolate milk from a children's beverage to a healthy drink suitable for adults.

Question 10

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.

Accepted Answer

Nokia is calculating the market potential for the African smartphone market by looking at the existing cellphone and smartphone sales. The other options, such as top-down forecast, growth potential, and sales forecast, do not accurately describe the analysis that Nokia is performing.

Question 11

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?

Accepted Answer

The lost-horse forecasting method involves starting with the last known value and adjusting for factors that could affect future outcomes. Here, the manager starts with the 2014 sales forecast and considers factors affecting the 2016 forecast, which aligns with the lost-horse method.

Question 12

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:

Accepted Answer

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

Question 13

The least complex sales forecasting technique is the:

Accepted Answer

The direct forecast technique is the least complex as it involves taking the actual sales data from the previous period and using it to forecast future sales without any additional analysis or prediction methods. This technique is most suitable for stable sales patterns and short-term forecasting.

Question 14

Superba Cravats is a major marketer of men's bow ties.It estimates there are 20 million buyers of bow ties each year,that the average wearer of bow ties purchases 4 ties per year,and that the average price per bow tie is $10.Superba Cravats has a market share of 20 percent.The market (or industry)potential for bow ties is:

Accepted Answer

The answer of Superba Cravats is a major marketer of...

Question 15

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

Accepted Answer

While market share is important for determining a company's position within a market, it is not essential for developing market potential and sales forecast estimates. The other factors listed (market segments involved, unit of measurement, time period involved) are all crucial in forecasting sales within a specific market.

Question 16

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

Accepted Answer

A sales forecast is often included as part of the budget processing to understand potential total company profitability. It helps in estimating the expected sales revenue based on past sales data, industry trends, and market conditions. This information is critical to determine the company's budget, expenditure, and profitability. Delphi forecast, industry potential, and market potential are not directly related to budget processing or profitability estimates.

Question 17

The most commonly used forecasting technique is the:

Accepted Answer

The answer of The most commonly used forecasting technique is...

Question 18

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?

Accepted Answer

To determine which segment to enter first based on sales, it is best to analyze the maximum total sales of a product by all firms to a segment under specified environmental conditions and marketing efforts of the firms. This will help the business understand the potential market size and demand for their products in each segment, allowing them to make an informed decision on which segment to focus on first.

Question 19

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

Accepted Answer

A direct forecast involves using historical data and current conditions to make a prediction. In this case, the decision of how much milk to buy is based on past consumption patterns and current household needs, making it a direct forecast. The other options are not applicable to this scenario.

Question 20

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:

Accepted Answer