Question 1

A liquid soap manufacturer produces soap in 7.5-ounce containers for household use and in 1-gallon containers for restaurants. The film manufacturer is using a concentrated marketing strategy.

Accepted Answer

A concentrated marketing strategy focuses on targeting a specific market segment with a single marketing mix. Producing different sizes for different markets (household and restaurants) suggests a differentiated marketing strategy, not a concentrated one.

Question 2

In a differentiated marketing strategy, a firm can appeal to both a mass market and a market niche.

Accepted Answer

In a differentiated marketing strategy, a firm targets several market segments with a different offering for each, allowing it to cater to the broad needs of a mass market as well as the specific needs of a market niche.

Question 3

An appliance retailer defines its target market as consumers having a high financial safety risk. A key factor to consider in developing a marketing plan is the segment's reachability.

Accepted Answer

Reachability is crucial in developing a marketing plan because it determines how effectively the retailer can communicate with and deliver their message to the target market, especially important for consumers with high financial safety risk who may be harder to engage through conventional marketing channels.

Question 4

By developing too many product alternatives, a marketer can oversegment its market. By oversegmenting the market, opportunities for additional sales are small, while overall costs and consumer confusion may rise significantly.

Accepted Answer

Oversegmentation can lead to diminishing returns as the costs of targeting increasingly specific segments outweigh the benefits, and it can also confuse consumers with too many choices, potentially reducing overall sales.

Question 5

Simple trend analysis does not seek to explain the factors that have caused past fluctutations in sales.

Accepted Answer

Simple trend analysis focuses on identifying and projecting past sales patterns into the future, without delving into the underlying causes of those fluctuations.

Question 6

One part of the chain-ratio method relies on market share analysis.

Accepted Answer

The chain-ratio method involves estimating market demand by sequentially applying a series of factors (such as market size, target market share, and accessible market) to refine the potential market estimate, where market share analysis is a crucial step in understanding and defining the portion of the market accessible or targeted by the product or service.

Question 7

The jury of executive (expert) opinion, sales force survey, and test marketing forecasting techniques are especially useful in forecasting sales of established products.

Accepted Answer

These techniques are more commonly used for new product forecasting rather than established products, as they help estimate demand before a product has a sales history.

Question 8

A glass skylight manufacturer plans to forecast its product sales in new residential construction on the basis of the number of new homes, the number of skylights per home, the percent of homes with glass (versus plastic) skylights, and the firm's anticipated market share. The firm is using the chain-ratio method.

Accepted Answer

The chain-ratio method involves breaking down a forecast into successive levels of detail, using various factors or ratios at each level to refine the forecast. The manufacturer's approach of considering the number of new homes, skylights per home, preference for glass over plastic, and market share aligns with the chain-ratio method's step-by-step refinement process.

Question 9

Like the sales force survey method of forecasting, the market buildup method gathers data from small units and then aggregates them.

Accepted Answer

Both the sales force survey method and the market buildup method collect data from individual or smaller units (such as sales territories or individual customers) and aggregate this information to make a forecast for the entire market or company sales.

Question 10

Industry sales for the year are expected to be 4,000,000 units. A company estimates its sales potential at 1,500,000 units, but actually sold 1,200,000 units. The company's sales penetration rate is 30 percent.

Accepted Answer

The company's sales penetration rate is calculated as the actual sales divided by the sales potential, not the industry sales. Therefore, the sales penetration rate is 1,200,000 / 1,500,000 = 0.8 or 80%.

Question 11

Develop a target market for a major manufacturer of laser printers that is studying the home office market. Be sure to include all seven steps in the segmentation strategy process (as shown in Figure 10-1).

Accepted Answer

The answer of Develop a target market for a major...

Question 12

a.	Differentiate among homogeneous demand, clustered demand, and diffused demand. Provide an example of each demand pattern.
b. Explain the relationship between each of these consumer demand patterns and the selection of a target market approach.

Accepted Answer

The answer of a.	Differentiate among homogeneous demand, clustered demand, and...

Question 13

a.	How can an Italian restaurant use geographic demographics, personal demographics, and consumer lifestyles as bases for segmentation?
b. Describe the use of personal demographics as a segmentation base for a wholesaler of electric cables used in new home construction and renovation projects.

Accepted Answer

The answer of a.	How can an Italian restaurant use geographic...

Question 14

Describe how a shampoo manufacturer can effectively use the heavy-half and benefit segmentation concepts.

Accepted Answer

The answer of Describe how a shampoo manufacturer can effectively...

Question 15

a.	Describe the relationship between the heavy-half usage segment, a concentrated marketing strategy, and the majority fallacy concept.
b. In avoiding the majority fallacy, what other risks may a marketer encounter? Explain your answer.

Accepted Answer

The answer of a.	Describe the relationship between the heavy-half usage...

Question 16

How can a marketer use the Social Styles model program in developing and implementing an organizational segmentation strategy?

Accepted Answer

The answer of How can a marketer use the Social...

Question 17

a.	What are the advantages to the use of a concentrated marketing strategy?
b. What are the disadvantages to this strategy?

Accepted Answer

The answer of a.	What are the advantages to the use...

Question 18

Develop an appropriate marketing mix for a firm that plans to use a differentiated marketing strategy.

Accepted Answer

The answer of Develop an appropriate marketing mix for a...

Question 19

a.	Which methods of sales forecasting are best suited for a new product? Explain your answer.
b. Which methods of sales forecasting are best suited for an existing product with at least a 7-year sales history? Explain your answer.

Accepted Answer

The answer of a.	Which methods of sales forecasting are best...

Question 20

a.	What are sales penetration and diminishing returns?
b. How are these concepts related?
c. What are the marketing implications of these concepts?

Accepted Answer

The answer of a.	What are sales penetration and diminishing returns?
b....

Quiz 10: Developing a Target Market Strategy

A liquid soap manufacturer produces soap in 7.5-ounce containers for household use and in 1-gallon containers for restaurants. The film manufacturer is using a concentrated marketing strategy.

In a differentiated marketing strategy, a firm can appeal to both a mass market and a market niche.

An appliance retailer defines its target market as consumers having a high financial safety risk. A key factor to consider in developing a marketing plan is the segment's reachability.

By developing too many product alternatives, a marketer can oversegment its market. By oversegmenting the market, opportunities for additional sales are small, while overall costs and consumer confusion may rise significantly.

Simple trend analysis does not seek to explain the factors that have caused past fluctutations in sales.

One part of the chain-ratio method relies on market share analysis.

The jury of executive (expert) opinion, sales force survey, and test marketing forecasting techniques are especially useful in forecasting sales of established products.

Like the sales force survey method of forecasting, the market buildup method gathers data from small units and then aggregates them.

Industry sales for the year are expected to be 4,000,000 units. A company estimates its sales potential at 1,500,000 units, but actually sold 1,200,000 units. The company's sales penetration rate is 30 percent.

Develop a target market for a major manufacturer of laser printers that is studying the home office market. Be sure to include all seven steps in the segmentation strategy process (as shown in Figure 10-1).

a. Differentiate among homogeneous demand, clustered demand, and diffused demand. Provide an example of each demand pattern. b. Explain the relationship between each of these consumer demand patterns and the selection of a target market approach.

a. How can an Italian restaurant use geographic demographics, personal demographics, and consumer lifestyles as bases for segmentation? b. Describe the use of personal demographics as a segmentation base for a wholesaler of electric cables used in new home construction and renovation projects.

Describe how a shampoo manufacturer can effectively use the heavy-half and benefit segmentation concepts.

a. Describe the relationship between the heavy-half usage segment, a concentrated marketing strategy, and the majority fallacy concept. b. In avoiding the majority fallacy, what other risks may a marketer encounter? Explain your answer.

How can a marketer use the Social Styles model program in developing and implementing an organizational segmentation strategy?

a. What are the advantages to the use of a concentrated marketing strategy? b. What are the disadvantages to this strategy?

Develop an appropriate marketing mix for a firm that plans to use a differentiated marketing strategy.

a. Which methods of sales forecasting are best suited for a new product? Explain your answer. b. Which methods of sales forecasting are best suited for an existing product with at least a 7-year sales history? Explain your answer.

a. What are sales penetration and diminishing returns? b. How are these concepts related? c. What are the marketing implications of these concepts?