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Psychographics, the practice of combining psychology, lifestyle and demographic information to segments markets can provide useful insight about consumer motivations and buying patterns. One of the weaknesses of using this approach for market segmentation is that it is difficult to ___________ psychographic segments.

e. Measure

Which of the following is NOT a requirement of a market segment?

e. Environmentally responsible

Why is it a good idea for a business to group its customers into market segments?

e. To be able to respond more effectively to the wants of groups of potential buyers

Many small businesses choose to segment their customers geographically because they can effectively to communicate with their customers using __________?

b. Local newspapers

Which of the following is NOT something you should consider when developing market segments?

e. The number of people in a segment

According to your instructor, what is the hard way to become the category leader?

...

According to your instructor, why is it that many businesses may be unaware of how they are actually perceived in the market place.

e. Because much of the information executives get is from people who are paid by the company.

Ih the three circles postioning framework presented in class, what do points of parity represent?

d. Areas where you need to be competitive, but willnot give you a competitivei advantage

____________ is a strategy aimed at developing a specific marketing mix to influence customers' overall perception of a brand, product line, or organization in general?

c. Positioning

Which of the following is a major disadvantage of the test-market approach to forecasting.

c. The time it takes to conduct the test market may put you at a competitive disadvantage in the marketplace.

Which of the following explains the law of truly large numbers as discussed in class?

a. Given a large enough group of people, we can predict what a subset will do with respect to your product.

Baking soda is an ingredient in cooking. It also has the property of absorbing odors. The Arm and hammer company found that many people were leaving an open box of baking soda in their refrigerator to absorb food odors. In order to take advantage of this opportunity, they developed a special package with many air vents specifically for use as a refrigerator deodorant. Arm and hammer used ______________ segmentation to develop this product?

c. Buying situation

Which of the following is NOT something you should consider when developing market segments?

a. The number of people in a segment

Which of the following assumptions about using ethnicity as a segmentation variable is correct?

e. Both race and culture play a role in consumption patterns.

Adam had an idea for a new i-pod accessory. He showed his idea to ten of his friends. Three of them loved the idea, four of them thought it was OK, but nothing special and three of them hated the idea. If he develops the product, he will need to sell at least 10,000 in order to make money. He was wondering whether or not to develop the product when he remembered the law of large numbers from Professor Robertson's marketing class. Based on that, he decided to __________?

a. Continue to develop the product knowing that because there are millions of i-pod users, there will probably be a large enough group who like the product for it to be successful.

What is the difference between market potential and sales potential?

b. Market potential is the upper limit of sales for the industry as a whole, sales potential is the upper limit of sales for your company.

The three circles positioning framework presented in class suggests using all of the following EXCEPT ___________ to help clarify a market position?

d. Related industries

In the three circles positioning framework presented in class, what area of the chart indicates how you are currently differentiated in the marketplace?

a. Our points of difference

Santa Claus is trying to estimate demand for toys this Christmas. He know there will be 3.7 billion children because he monitors birth trends across the world. He knows from experience that 14% will be naughty this year and get coal rather than presents for Christmas. He recently commissioned a research study from Donner + Blitzen associates who found that children stop believing in Santa Clause when they are 5.8 years old. Santa is likely to use the ____________ method to forecast demand for toys?

d. Chain ratio

Alexis is the furniture division sales manager for a textile (cloth) manufacturing company. He has a team of 15 salespeople who call on 200 customers regularly over the course of the year. These customers account for 85% of Alexis’ company’s sales and buy 80% of the textiles used for furniture in this country. Alexis is likely to use the __________ method to forecast demand?

a. Survey of buyer intentions

A(n) ______________ targeting strategy uses a mass market approach to reach as many people as possible with the same marketing mix.

a. Undifferentiated

According to Michael Porter's theory discussed in class, which is best strategy to use when you are not the low cost producer in an industry?

b. Differentiate your product.

Which of the following is a condition that must be met before you can consider a group of people to be a market segment?

b. They must be different from people who are not in the segment in some meaningful way.

According to your instructor, which of the bases for segmentation is most frequently used by marketers?

b. Demographic

Which of the following is NOT a requirement of a market segment?

e. Environmentally responsible

A ______________ is a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands relative to its own and then take marketing action?

d. Perceptual map

Bruce wanted to open a coffee shop. He knew his coffee was way better than anything Starbucks could do so he opened his first store across the street from a Starbucks Store. He ran advertisements in the local paper claiming "Bruce's Brew is better than Starbucks Stuff" and offered a money back guarantee to any Starbucks customer who was willing to try a cup of Bruce's Coffee. Bruce is using a _______________ positioning strategy.

e. Head to head

The best understanding of market dynamics comes when market size is expressed in…?

c. Both dollars and units

Alexis is the furniture division sales manager for a textile (cloth) manufacturing company. He has a team of 15 salespeople who call on 200 customers regularly over the course of the year. These customers account for 85% of Alexis’ company’s sales and buy 80% of the textiles used for furniture in this country. Alexis is likely to use the __________ method to forecast demand?

d. Survey of buyer intentions

Roxanne has completed her positioning analysis and has decided that there is an opportunity to create an adult milk beverage that is enhanced with vitamins. Currently, her company does not make such a product, nor for that matter do any of her competitors. Roxanne has the opportunity to?

e. Create a new category by introducing a product that is different from anything else on the market.

Which of these statements about Porter's fundamental strategies is true?

c. There is only room for one low cost producer in a market.

One way to segment markets for business customers is by industry type. This approach is attractive because of __________ which makes it cost effective to measure the number of potential customers in an industry?

e. NAICS codes

According to Michael Porter, there are two fundamental marketing strategies: being the low cost producer or to differentiate your product form the competition. Why is this important to understand in a discussion of market segmentation?

e. Because there is only room for one low-cost producer in an industry, everybody else will need to use a differentiation strategy. Market segmentation is a tool you can use to help differentiate your product.

Which of the following is NOT a requirement of a market segment?

e. Environmentally responsible

Which of the following is NOT something you should consider when developing market segments?

c. Whether you have used too few variables to develop your segments.

____________ is a strategy aimed at developing a specific marketing mix to influence customers' overall perception of a brand, product line, or organization in general?

b. Positioning

What was your instructor talking about when he said America likes a Winner and gave those ridiculous - I mean interesting - examples about people landing on the moon?

b. When it comes to positioning, it is better to hold the position of category leader in a smaller category than to be second place on a larger category.

What is the difference between market potential and sales potential?

a. Market potential is the upper limit of sales for the industry as a whole, sales potential is the upper limit of sales for your company.

Which of the following is a major disadvantage of the test-market approach to forecasting.

b. The time it takes to conduct the test market may put you at a competitive disadvantage in the marketplace.

According to your instructor, what is the easiest way to become the category leader for a product category?

d. Develop a brand new product that is different from anything else on the market.

Which of the following explains the law of truly large numbers as discussed in class?

b. Given a large enough group of people, we can predict what a subset will do with respect to your product.

What is the relationship between the law of truly large numbers and market segmentation?

c. The law of large numbers is an abstract concept that helps us understand why market segmentation works.

Which of the following explains the law of truly large numbers as discussed in class?

a. Given a large enough group of people, we can predict what a subset will do with respect to your product.

Age cohorts are an effective basis for market segmentation because

b. People in the same age group have many similar experiences which could affect their consumption patterns

Which of the following is NOT something you should consider when developing market segments?

a. The number of people in a segment

Why is it important to develop contingency plans when you adopt a sales forecast?

c. Because once a plan is underway, there is a tendency to explain away unexpected results rather than try to adapt the plan to the new circumstances.

____________ is a strategy aimed at developing a specific marketing mix to influence customers' overall perception of a brand, product line, or organization in general?

d. Positioning

A ______________ is a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands relative to its own and then take marketing action?

d. Perceptual map

Alexis is the furniture division sales manager for a textile (cloth) manufacturing company. He has a team of 15 salespeople who call on 200 customers regularly over the course of the year. These customers account for 85% of Alexis’ company’s sales and buy 80% of the textiles used for furniture in this country. Alexis is likely to use the __________ method to forecast demand?

a. Survey of buyer intentions

According to your instructor, what is a major disadvantage of the trend analysis method to forecasting?

d. Relying on statistical analysis means you risk ignoring foreseeable environmental factors.

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