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

their purchasing decisions are always made by only one individual

Which of these statements is not true about business markets?

the purchase is always made by more than one individual

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

large number of people

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

discretionary income to purchase the product

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

they do not have a need for it

The ability to purchase a product is a function of

buying power

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

have little buying power

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

are not in the market for that product

The first step in the target market selection process is

identifying an appropriate target strategy

To find a target market, a firm can use the

undifferentiated strategy, the concentrated strategy, and the differentiated
strategy

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

undifferentiated

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.

undifferentiated

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

The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market.

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

homogeneous

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

heterogeneous

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

heterogeneous

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

market segments

The purpose of market segmentation is to

divide a total market to enable a marketer to develop a more precise marketing
mix.

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

customer needs must be homogeneous

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

concentrated

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

concentrated or differentiated

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.

concentrated

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.

differentiated

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

differentiated

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is

determining segmentation variables

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ___________ variables.

segmentation

Age, rate of product use, location, and gender are all examples of common

segmentation variables

Segmentation variables are usually grouped into four categories:

demographic, geographic, psychographic, and behavioristic.

Occupation, family size, and family life cycle are all ______ variables for segmenting
consumer markets.

demographic

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

gender

A marketer that targets customers based on marital status and the presence and age of
children is using

family life cycle

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

family life cycle

Family life cycle is most typically based on

marital status and ages of children

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

geographic

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?

market density

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 ______

geodemographic segmentation

a market segmentation approach in which firms focus precise marketing efforts
on very small geographic markets

micromarketing

Retail-site location analyses, unique product offerings, and special advertising campaigns
are all examples of the use of

micromarketing

Which of the following is the biggest drawback to using psychographic variables?

they are hard to measur

The three most commonly used psychographic segmentation variables are

personality, motives, lifestyles

The psychographic variable that includes numerous characteristics related to people's
activities, interests, and opinion is

lifestyle

A widely used system for classifying individuals on the basis of lifestyle is

VALS

Which of the following is an example of a behavioristic segmentation variable?

usage rate

End use, price sensitivity, and brand loyalty are all _____ variables that can be used in
market segmentation.

behavioristic

The division of a market according to what benefits consumers want from the product is
called ______ segmentation.

benefit

Variables such as geographic location, type of organization, customer size, and type of
product usage are used to segment ___________ markets.

business

Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on

use of product

__________ describe the similarities among potential customers within a market segment
and explain the differences among people in different market segments.

market segment profiles

The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the _____

market potential

The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the

company sales potential

Using the breakdown approach to sales potential, estimates are made

by starting with general economic conditions

The manager at a local recreational vehicle store, Off-Road Rage, believes the next two
years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a _________ approach to estimating sales potential.

breakdown

Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a home builder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number of builders in the territory. He is using a ___________ approach to measure sales potential.

buildup

The final step in the target market selection process is

selecting specific target markets

Soft Shave is a shaving cream aimed primarily at women. The activities and decisions involved in developing and maintaining Soft Shave's product concept in buyers' minds are called

product positioning

Product positioning refers to

the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds.

all is true except

product positioning is the customer's absolute perception of a product's attributes

If PepsiCo and Coca-Cola use celebrities to challenge the taste of the other firm's cola, this is referred to as ___________ positioning.

head to head

Positioning a product to avoid competition may be best when the

product's performance characteristics are not significantly different from those of competing brands.

If a company extends a line of products by introducing a new product to the market, and the firm does not distinctly position this product (i.e., separately from the other products in the line), the result could be

cannibalization

In the context of marketing, cannibalization means

sales of a new product hurts sales of the company's existing products

Guess? will be spending $22 million on marketing activities next year and expects to sell 30 million pairs of jeans. These 30 million pairs represent the company's

sales forecast

The forecasting techniques that assume past sales patterns will continue into the future are all variations of

time series analysis

A forecasting method that predicts sales based on relationships between past sales and other variables is called

regression analysis

Katy Ramirez is a marketer for a golf equipment manufacturer. When forecasting company sales, she finds a direct association between past sales and per capita income. Which sales forecasting technique is Katy using?

regression analysis

The sales forecasting method that consists of making a product available to buyers in one or more locations and measuring purchase response is

market test

The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is

time series analysis

Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product?

market tests

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