Question 1

Relying on executive judgment for forecasting may be adequate when
A)levels of marketing efforts put forth by competitors vary considerably.
B)recent events give the executive specific impressions of product demand.
C)product demand is erratic.
D)the executive conducts surveys.
E)the executive has considerable experience and product demand is relatively stable.

Accepted Answer

Relying on executive judgment for forecasting is most useful when the executive has considerable experience and when product demand is relatively stable. When demand is erratic or levels of marketing efforts put forth by competitors vary considerably, relying solely on executive judgment may not be sufficient. However, if recent events give the executive specific impressions of product demand, they may be able to make accurate forecasts based on their expertise and knowledge of the industry. The use of surveys can also provide a more objective view of consumer demand, but this option is not mentioned in the question.

Question 2

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.
A)breakdown
B)recessionary
C)buildup
D)pyramid
E)dimensional

Accepted Answer

The answer of The manager at a local recreational vehicle...

Question 3

If Baskin-Robbins calculates that it could sell up to 25 percent of all ice cream cones sold in the United States,this percentage would represent the ice cream marketer's
A)target growth rate.
B)sales forecast.
C)sales objective.
D)company sales potential.
E)market potential.

Accepted Answer

The percentage represents the company's sales potential, which is the maximum share of the market that a firm can expect to capture for a specific product.

Question 4

The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the
A)sales forecast.
B)market potential.
C)company sales potential.
D)company sales objective.
E)market share goal.

Accepted Answer

Company sales potential refers to the maximum share or percentage of market potential that an individual firm can expect to capture or obtain for a specific product. This considers the company's resources, competition, and market conditions.

Question 5

The buildup approach measure of sales potential
A)starts with broad estimates of general economic activity.
B)ends with an estimate of a single firm's sales of a specific product.
C)starts with forecasts about demand for a specific product within a relatively small area.
D)does not use sales estimates.
E)is seldom employed by industrial firms.

Accepted Answer

The buildup approach measure of sales potential starts with forecasts about demand for a specific product within a relatively small area. It then adds up estimates of sales from different channels within that area to arrive at an estimate of a single firm's sales of that product.

Question 6

Pedigreeᵀᴹ is a leading brand of dog food in the United States.Suppose the maker of Pedigreeᵀᴹ decided to extend its line of products by offering a different version made with more natural ingredients.Pedigreeᵀᴹ must be sure that its marketing communications distinctly position this product (i.e. ,separate it from the other products in the line)or the result could be
A)poor product positioning.
B)product deletion.
C)product repositioning.
D)cannibalization.
E)new-product failure.

Accepted Answer

Cannibalization occurs when a new product takes sales away from the same company's existing products, which can happen if the new product is not distinctly positioned.

Question 7

The final step in the target market selection process is
A)implementing the appropriate marketing mix for the target market.
B)evaluating relative market segments.
C)eliminating market segments that are cost prohibitive.
D)selecting specific target markets.
E)revising the final segmentation variables based on target selection.

Accepted Answer

The answer of The final step in the target market...

Question 8

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
A)identify the appropriate targeting strategy.
B)determine which segmentation variables to use.
C)develop market segment profiles.
D)evaluate relevant market segments.
E)select specific target markets.

Accepted Answer

Meghan is now ready to select specific target markets based on her analysis and assessment of the four segments. This will involve choosing one or more segments to focus on and developing a marketing mix that is tailored to the needs and preferences of those segments. Therefore, selecting specific target markets is the next step in the target market selection process.

Question 9

Alex Wren of Owens Corning Fiberglass talks to Terry Jones,a homebuilder,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.
A)multivariable
B)use of product
C)breakdown
D)regression
E)buildup

Accepted Answer

Alex Wren is using the buildup approach to measure sales potential by multiplying the intended usage of fiberglass insulation by one homebuilder and then multiplying that number by the total number of builders in the territory. The buildup approach involves adding up the potential sales of each individual customer to estimate total sales potential.

Question 10

When selecting specific target markets,a firm should
A)revert to an undifferentiated approach if the market is deemed heterogeneous.
B)choose the segments most in line with the firm's objectives and long-term growth.
C)choose all segments that are determined to be profitable for the organization.
D)choose the minimum number of segments necessary to achieve company sales potential.
E)pick the segments with the best sales forecasts for the upcoming period of time.

Accepted Answer

Selecting target markets should be based on the firm's objectives and long-term growth. It is important to choose segments that align with the company's goals in order to maximize profitability and sustainability.

Question 11

Using the breakdown approach to sales potential,estimates are made
A)by referring to specific geographic factors.
B)by establishing levels of marketing effort that will be required to achieve specific levels of sales.
C)without reference to industry marketing efforts.
D)without reference to general economic conditions.
E)by starting with general economic conditions.

Accepted Answer

The answer of Using the breakdown approach to sales potential,estimates...

Question 12

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
A)sales potential.
B)market potential.
C)sales forecast.
D)market sales.
E)selected market.

Accepted Answer

The 30 million pairs of jeans represent the company's sales forecast, which is an estimate of the amount of product a company expects to sell in a given time period. Therefore, option C is the best choice. Option A (sales potential) refers to the maximum amount of sales a company could achieve under perfect conditions, while option B (market potential) refers to the total possible sales of a product in a specific market. Option D (market sales) and E (selected market) are not relevant in this context.

Question 13

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
A)competitor sales potential.
B)sales objective.
C)forecasted sales.
D)company sales potential.
E)market potential.

Accepted Answer

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 referred to as the market potential. It is an estimate of the maximum possible sales that could be generated by all companies in a given industry.

Question 14

The amount of product a company expects to sell during a specific period at a specified level of marketing activity is called the
A)company sales potential.
B)revenue estimate.
C)company sales prediction.
D)market potential.
E)sales forecast.

Accepted Answer

The term "sales forecast" refers to the amount of product a company expects to sell during a specific period at a specified level of marketing activity. The other options are either too broad (market potential) or don't specifically relate to the concept of expected sales (revenue estimate, company sales prediction, company sales potential).

Question 15

Frito-Lay Snack Foods is currently conducting market segmentation studies.For several segments,they have completed competitive assessments and cost estimates.The next major step they must take is to
A)determine which segmentation variables to use.
B)develop market segment profiles.
C)identify the appropriate targeting strategy.
D)select specific target markets.
E)develop sales forecasts.

Accepted Answer

Frito-Lay Snack Foods has already completed competitive assessments and cost estimates for several segments, indicating that they have already determined their potential market segments. The next major step for them would be to select specific target markets within these segments. Therefore, the correct answer is D.

Question 16

Estimating the cost of entering a market and focusing on a specific target segment is important because
A)cost estimates are crucial to estimating sales potential accurately.
B)higher costs will keep other potential competitors from entering that particular segment.
C)customers are more likely to be attracted to marketers that invest heavily in the target segment.
D)the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs.
E)higher cost generally ensures long-term success.

Accepted Answer

Estimating the cost of entering a market and targeting a specific segment is important because the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs. This will help them make informed decisions about whether it is viable to enter the market and target the specific segment. Higher costs do not necessarily ensure long-term success and customers may not necessarily be attracted to marketers that invest heavily in a target segment. Cost estimates are important for estimating sales potential accurately but this is not the main reason why estimating costs is important. Higher costs may deter other competitors from entering the segment but this is not a guaranteed outcome.

Question 17

When evaluating market segments,assessment of competitors is important because
A)it is difficult to segment a market when it has multiple competitors.
B)an absence of competitors usually creates difficulties in accurately measuring segment sales potential.
C)sales estimates may cause a segment to appear to be lucrative,but there may be several competitors that together have a large share of that segment.
D)a competitive analysis may lead to confusion as to who are the key competitors.
E)competition is generally not a major problem as long as a marketer is aware of it.

Accepted Answer

Evaluating competitors is important when assessing market segments because sales estimates may appear lucrative but can be misleading if there are already several strong competitors in that segment. This can impact a marketer's ability to successfully enter or capture share of the segment.

Question 18

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
A)sales potential.
B)market potential.
C)target growth rate.
D)sales forecast.
E)sales objective.

Accepted Answer

The given figure of 1 billion represents the total number of light bulbs that can be sold to consumers by all light bulb producers, which is the market potential of the industry. Hence, option B is the correct answer. Options A, C, D, and E are incorrect because they do not reflect the industry's potential market size, growth rate, or sales objectives.

Question 19

Evaluating and making product positioning decisions is important for
A)new products only.
B)existing products only.
C)new and existing products.
D)product deletions only.
E)new products and product deletions.

Accepted Answer

Evaluating and making product positioning decisions is important for both new and existing products. For new products, it helps to identify the target market and unique selling propositions. For existing products, it helps to revitalize or maintain market share in a competitive market. Product deletions only relate to removing products from the market and not positioning decisions. Therefore, option C is the best choice.

Question 20

Yvonne and Garret are looking at information about how their organization's products could fit potential customers' needs.This information deals with demographic characteristics,product benefits sought,lifestyles,geographic factors,brand preferences,and usage rates.They are most likely looking at
A)the sales force survey results.
B)the results of sales forecasting.
C)a market trend analysis.
D)a market segmentation discrimination analysis.
E)a market segment profile.

Accepted Answer

Yvonne and Garret are likely looking at market segment profiles which provide information on the target market's demographic characteristics, product benefits sought, lifestyles, geographic factors, brand preferences, and usage rates. This information helps the organization identify and understand specific groups of potential customers with common needs and characteristics, which they can then target with customized marketing strategies.

Quiz 6: Target Markets: Segmentation and Evaluation

Relying on executive judgment for forecasting may be adequate when

If Baskin-Robbins calculates that it could sell up to 25 percent of all ice cream cones sold in the United States,this percentage would represent the ice cream marketer's

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

The buildup approach measure of sales potential

The final step in the target market selection process is

When selecting specific target markets,a firm should

Using the breakdown approach to sales potential,estimates are made

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 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 amount of product a company expects to sell during a specific period at a specified level of marketing activity is called the

Frito-Lay Snack Foods is currently conducting market segmentation studies.For several segments,they have completed competitive assessments and cost estimates.The next major step they must take is to

Estimating the cost of entering a market and focusing on a specific target segment is important because

When evaluating market segments,assessment of competitors is important because

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

Evaluating and making product positioning decisions is important for

Yvonne and Garret are looking at information about how their organization's products could fit potential customers' needs.This information deals with demographic characteristics,product benefits sought,lifestyles,geographic factors,brand preferences,and usage rates.They are most likely looking at