Question 1

Potential profitability is a function of the current market size, its anticipated growth, current and anticipated levels of competition, and customer behavior and expectations.

Accepted Answer

Potential profitability is influenced by these factors as they determine the market dynamics, competitive landscape, and customer demand, all of which impact a company's ability to generate profits.

Question 2

Some customer segments are high maintenance and not worth serving.

Accepted Answer

Some customer segments may require more resources and attention than the revenue they generate, making them less profitable or even unprofitable for a business to serve.

Question 3

Top-down and bottom-up perspectives are available to assess the attractiveness of each segment in terms of its potential for targeting, but only the top-down perspective should be considered.

Accepted Answer

Both top-down and bottom-up perspectives should be considered to gain a comprehensive understanding of a segment's attractiveness for targeting.

Question 4

Targeting should not use a top-down vision of corporate strategy, but rather, only a bottom-up data-informed approach on segment size and profitability.

Accepted Answer

A balanced approach is ideal, where both top-down corporate strategy and bottom-up data insights are used to ensure alignment with overall business goals and market realities.

Question 5

A firm's ability to satisfy the needs of a segment impacts the decision as to whether or not to target a specific segment.

Accepted Answer

A firm's ability to satisfy the needs of a segment is crucial in determining whether it should target that segment, as it affects the potential for success and profitability in that market.

Question 6

Company XYZ has examined several customer segments in order to determine which segments best align with the firm's strengths and the attractiveness of the market opportunity.This analysis enables the firm to select which customer segment to target.

Accepted Answer

This process is known as market segmentation and targeting, where a company identifies and evaluates different customer segments to decide which ones to focus on based on alignment with company strengths and market potential.

Question 7

Company XYZ is working on a marketing strategy for a new oral hygiene product and just discovered that XYZ's biggest competitor is launching a similar, but better tasting, product with more dental health benefits.The competitor's product should be considered a threat in Company XYZ's SWOT analysis.

Accepted Answer

In a SWOT analysis, a competitor's superior product is considered a threat as it can impact market share and sales.

Question 8

In conducting a SWOT analysis, marketers are likely to collect some market research data on customers, such as perceptual maps and information about brands and products.

Accepted Answer

Marketers use SWOT analysis to assess strengths, weaknesses, opportunities, and threats, often incorporating market research data like perceptual maps to understand customer perceptions and brand positioning.

Question 9

SWOTs are only useful for clarifying about half of all marketing questions.

Accepted Answer

SWOT analysis is a versatile tool that can be applied to a wide range of marketing questions, not just half. It helps in understanding strengths, weaknesses, opportunities, and threats related to a business or project.

Question 10

In SWOT analysis, our opinions matter a lot more than the customer base.

Accepted Answer

SWOT analysis considers both internal factors (like opinions) and external factors (like customer feedback) to provide a comprehensive view of a business's strengths, weaknesses, opportunities, and threats.

Question 11

Opportunities and threats are internal considerations about the organization.

Accepted Answer

Opportunities and threats are external considerations in a SWOT analysis, while strengths and weaknesses are internal.

Question 12

Two important strategic criteria for targeting segments include the firm's strengths and the attractiveness of the segment.

Accepted Answer

The firm's strengths and the attractiveness of the segment are crucial for determining which market segments to target, ensuring alignment with company capabilities and potential profitability.

Question 13

Marketers ask the most important question: "How likely is it that a segment will be profitable?"

Accepted Answer

Marketers aim to identify and target segments that are most likely to generate profit, making profitability a key consideration in their strategies.

Question 14

Strengths and weaknesses are considerations that are external to the organization.

Accepted Answer

Strengths and weaknesses are internal factors of an organization, while opportunities and threats are external factors.

Question 15

We should target customers that match our abilities to deliver.

Accepted Answer

Targeting customers that align with a company's capabilities ensures that the business can meet customer expectations effectively, leading to higher satisfaction and better resource utilization.

Question 16

We target for the same reason we segment-to try to be all things to all people.

Accepted Answer

Targeting and segmentation are used to focus on specific groups of consumers, not to be all things to all people.

Question 17

The concept of targeting involves customer selection.

Accepted Answer

Targeting is the process of selecting specific segments of a market to focus marketing efforts on, based on their potential profitability and alignment with the company's objectives.

Question 18

Opportunities and threats are usually driven by changes in one of the 5Cs.

Accepted Answer

Opportunities and threats in a business context are often influenced by changes in the 5Cs: Company, Customers, Competitors, Collaborators, and Context (environmental factors).

Question 19

Company XYZ is working on a marketing strategy for a new oral hygiene product and just discovered that XYZ's biggest competitor is launching a very similar product a month later.A SWOT analysis can help the company determine if this is an opportunity or a threat.

Accepted Answer

A SWOT analysis evaluates strengths, weaknesses, opportunities, and threats, helping the company assess the competitive product launch as either an opportunity or a threat.

Question 20

Most markets are comprised of customers whose tastes are very similar.

Accepted Answer

Most markets consist of diverse customers with varying tastes and preferences, requiring businesses to segment and target different groups effectively.

Quiz 4: Targeting