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
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?
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.
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.
Most markets for products are made up of individuals or groups with diverse needs for products and are called ________ markets.
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
Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as
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.
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.
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.
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?
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.
Age, rate of product use, location, and gender are all examples of common
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.
Cosmopolitan magazine, Secret deodorant, and Eve cigarettes are all products whose marketers have used segmentation based on
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.
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?
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 ______
a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets
Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use of
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
A widely used system for classifying individuals on the basis of lifestyle is
Which of the following is an example of a behavioristic segmentation variable?
End use, price sensitivity, and brand loyalty are all _____ variables that can be used in market segmentation.
The division of a market according to what benefits consumers want from the product is called ______ segmentation.
Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ___________ markets.
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 _____
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.
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.
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 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
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
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
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?
The sales forecasting method that consists of making a product available to buyers in one or more locations and measuring purchase response is
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?