Exam 6: Target Markets Segmentation and Evaluation

There are only two basic strategies for selecting target markets: the undifferentiated targeting strategy and the concentrated targeting strategy.

If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is

Katy Ramirez is a marketer for a company that produces in-ground swimming pools. When forecasting company sales, she finds a direct association between past sales and per capita income. Which sales forecasting technique is Katy using?

How do business markets differ from consumer markets?

TimeWarner Cable uses a segmentation strategy for its cable TV packages based on market characteristics such as age, gender, or income. Which of the following segmentation variables is TimeWarner using?

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

Customer forecasting surveys as a means of forecasting sales are not appropriate for a firm that has relatively few customers.

General Electric calculates that the total number of light bulbs sold to consumers in the next year by all light bulb producers is 1 billion, given anticipated marketing efforts by the firms involved. This figure represents the industry's

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

Bethlehem Steel provides steel for a variety of uses to its various customers. Customers have different needs for the steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is

​You are an analyst in the marketing department for a major grocery store chain, and you recently submitted a report to your boss regarding potential market segments the company should consider targeting. Your boss just sent the report back to you with the following questions: $\bullet$ What are the strengths and weaknesses of the competitors who are also targeting these markets? $\bullet$ Does any firm dominate the market currently? $\bullet$ Can we create a compelling marketing mix to effectively compete for business in this market segment? Based on the questions being asked, it appears your boss is using which one of the following segment evaluation approaches?

A business advantage of the concentrated targeting strategy for any company is that it

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

Meghan would like to open a house cleaning business and is considering several market segments. She has identified four segments for consideration; young, urban singles, young married professionals, senior citizens, and college students. She has just completed an analysis of these four segments by assessing such factors as sales estimates, competition, and estimated costs. Meghan is now ready for the next step in the target market selection process, which is to

Only one variable can be used to segment a market.

Micromarketing is

A differentiated targeting strategy is when the organization targets two or more markets by developing a single marketing mix.

When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n)

Scenario 6.2 Use the following to answer the questions.GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport. -Refer to Scenario 6.2. GE Transportation is most likely using a(an) ______ targeting strategy, segmenting by ________ variables.

The Sara Lee Company is attempting to forecast sales for a new ice cream cake. To come up with an accurate forecast, Sara Lee places the product in Atlanta supermarkets for a period of four months. In this instance, Sara Lee is using which forecasting method?