Question 1

​Like marketing research, sales forecasting utilizes a wide array of tools and techniques to enhance the accuracy of the forecast. For example, ____________ combines and averages the outlooks of top executives from different functional areas in a firm or firms. ______________ weighs each year's sales data, giving greater weight to results from the most recent years.
A)Delphi technique; Jury of executive opinion
B)Simple random sampling; Exponential smoothing
C)Sampling; Linear regression
D)Jury of executive opinion; Exponential smoothing
E)Statistical averaging; Linear regression

Accepted Answer

The Delphi technique involves anonymous input and feedback from experts, while simple random sampling and sampling are methods of selecting a subset of a larger population for analysis. Statistical averaging is a general term that could apply to both the Delphi technique and the jury of executive opinion, but only the latter involves executives from within the company. Exponential smoothing and linear regression are both time series forecasting methods, but exponential smoothing places more emphasis on recent data while linear regression looks at trends over time. Therefore, the best choice is D, as both the Delphi technique and the jury of executive opinion are methods of combining subjective opinions, but only the jury of executive opinion involves executives from different functional areas within a firm, and exponential smoothing is a technique for weighting recent sales data.

Question 2

​If your firm uses a ______________ targeting strategy, you can expect to need __________ production processes to support the strategy.
A)Concentrated; More
B)Differentiated; More
C)Undifferentiated; More
D)Differentiated; Less
E)Undifferentiated; More.

Accepted Answer

A differentiated targeting strategy involves targeting multiple market segments with different offerings, which requires more varied production processes to cater to the distinct needs of each segment.

Question 3

​In order for the marketer to achieve effective market segmentation, which of the following conditions must exist:
A)The segments must be small enough to manage effectively.
B)It must be possible to do a regression analysis on potential segments.
C)Consumers' needs for the product must be homogeneous.
D)The firm must be able to sell effectively to the chosen segment with a specific sales price.
E)The segment must have enough profit potential to justify the development of a special marketing mix for the segment.

Accepted Answer

For effective market segmentation, the segment must have enough profit potential to justify the development of a special marketing mix for the segment. Other factors, such as the size of the segment, the possibility of conducting regression analysis, and the homogeneity of consumers' needs may also be important, but they are not necessary conditions for effective market segmentation. The ability to sell effectively to the chosen segment with a specific sales price is also important, but it is more of an outcome of effective market segmentation rather than a condition for it.

Question 4

​Your firm's finance department has just issued new guidelines for how market segments are to be evaluated based on sales expectations. In general, the new guidelines require the marketers to measure company sales potential based on a general economic forecast for a time period. Which one of the following types of market segment evaluation approaches is the finance department advocating?
A)Breakdown approach
B)Economic analysis approach
C)Buildup approach
D)Market potential approach
E)Gross margin approach

Accepted Answer

The finance department is advocating for an economic analysis approach to evaluate market segments based on sales expectations. This approach involves measuring sales potential based on a general economic forecast for a given time period. The breakdown approach involves segmenting the market based on various demographic or psychographic variables, while the buildup approach involves estimating market share based on the company's strengths and weaknesses. The market potential approach involves estimating the total possible sales in a given market, and the gross margin approach involves analyzing profitability.

Question 5

​Marketers use a variety of characteristics to segment markets they are interested in pursuing. When segmenting consumer markets, demographic variables are normally used. All of the following are demographic characteristics used by marketers to segment markets except:
A)Age
B)Social class
C)Family size
D)Hometown
E)Marital status

Accepted Answer

Hometown is not a typical demographic characteristic used to segment markets. Demographic variables include characteristics such as age, income, education, occupation, family size, and marital status.

Question 6

​Which of the following statements about market segment profiles is true?
A)They can be used to calculate a lifetime value for each customer in a segment.
B)They are used to describe differences among people in different market segments.
C)They can only deal with demographic characteristics.
D)They provide marketers with a cost estimate for serving potential customer groups.
E)They cannot be used to describe similarities among potential customers.

Accepted Answer

Market segment profiles are used to describe differences among people in different market segments based on various characteristics such as demographics, psychographics, behavior, and needs. They help marketers understand the unique characteristics and preferences of each segment, which allows them to tailor their marketing strategies and messages to effectively reach and satisfy these customers. Choices A, C, D, and E are incorrect because market segment profiles do not calculate a customer's lifetime value, are not limited to demographic characteristics only, do not provide cost estimates for serving potential customer groups, and can also be used to describe similarities among potential customers within a segment.

Quiz 6: Target Markets Segmentation and Evaluation

If your firm uses a ____ targeting strategy, you can expect to need production processes to support the strategy.

In order for the marketer to achieve effective market segmentation, which of the following conditions must exist:

Marketers use a variety of characteristics to segment markets they are interested in pursuing. When segmenting consumer markets, demographic variables are normally used. All of the following are demographic characteristics used by marketers to segment markets except:

Which of the following statements about market segment profiles is true?

Quiz 6: Target Markets Segmentation and Evaluation

​If your firm uses a ______________ targeting strategy, you can expect to need __________ production processes to support the strategy.

​In order for the marketer to achieve effective market segmentation, which of the following conditions must exist:

​Marketers use a variety of characteristics to segment markets they are interested in pursuing. When segmenting consumer markets, demographic variables are normally used. All of the following are demographic characteristics used by marketers to segment markets except:

​Which of the following statements about market segment profiles is true?

If your firm uses a ____ targeting strategy, you can expect to need production processes to support the strategy.

In order for the marketer to achieve effective market segmentation, which of the following conditions must exist:

Marketers use a variety of characteristics to segment markets they are interested in pursuing. When segmenting consumer markets, demographic variables are normally used. All of the following are demographic characteristics used by marketers to segment markets except:

Which of the following statements about market segment profiles is true?