Question 1

A perceptual map shows perceived strengths of a firm (compared to its competitors) from the customers' perspective.

Accepted Answer

A perceptual map visually represents how customers perceive a firm's strengths and weaknesses relative to its competitors, often based on various attributes or dimensions.

Question 2

The choice of a target segment involves information about both the size of the market and the fit with corporate goals.

Accepted Answer

The choice of a target segment requires evaluating the market size to ensure potential profitability and assessing how well the segment aligns with the company's strategic objectives and resources.

Question 3

Census.gov is a good place to get data about the size of age cohorts.

Accepted Answer

Census.gov is the official website of the United States Census Bureau, which collects and provides data about the American population, including age cohorts.

Question 4

E-books are taking off on several different platforms.Your company makes PCs, so you should develop a new e-reader.

Accepted Answer

Developing a new e-reader may not align with your company's core competencies in PC manufacturing, and the e-reader market is already competitive with established players.

Question 5

The best way for a company to assess its corporate strengths is in terms of absolute measures.

Accepted Answer

Absolute measures do not account for industry standards or competitors, making relative measures more effective for assessing corporate strengths.

Question 6

For B2B marketers, market sizing is typically more difficult than in B2C markets.

Accepted Answer

The answer of For B2B marketers, market sizing is typically...

Question 7

Poor demographic data exist for consumers and businesses in the U.S.and international markets.

Accepted Answer

The U.S. and many international markets have extensive demographic data available for consumers and businesses, collected by government agencies and private organizations.

Question 8

A lot of estimates go into the final calculation to determine market size, and each component needs to be as precise as possible.Otherwise, the errors in the estimation get compounded.

Accepted Answer

Errors in individual estimates can accumulate and lead to a larger overall error in the final market size calculation.

Question 9

Company XYZ is interested in determining how much revenue and profit potential exist for a new product it is considering manufacturing.The company will need to use several estimates to size the market.

Accepted Answer

Market sizing involves using estimates to determine the potential revenue and profit by assessing the demand, competition, and pricing for a new product.

Question 10

Your company is great at producing a certain product, but the market doesn't look so great right now.This scenario is consistent with the lower-left quadrant in a SWOT analysis.

Accepted Answer

The answer of Your company is great at producing a...

Question 11

The more precisely defined the target market is, the easier the numbers are to estimate.

Accepted Answer

A well-defined target market allows for more accurate data collection and analysis, making it easier to estimate market size and potential.

Question 12

Goods are usually associated with more variable costs than services.

Accepted Answer

Services typically have more variable costs due to labor and other fluctuating expenses, while goods often have higher fixed costs related to production and materials.

Question 13

The Murphy Company is determining which segment(s) to target for its new professional résumé writing service.In making this determination, the company should consider quantitative factors such as the size of the segment, profitability, and growth.

Accepted Answer

Quantitative factors like segment size, profitability, and growth are crucial for assessing the potential success and viability of targeting a specific market segment.

Question 14

When estimating market size for B2B, start with the total population and break it down into the proportions that are relevant.

Accepted Answer

When estimating market size for B2B, it is important to start with the total population and break it down into the proportions that are relevant. This is because the total population may include individuals or businesses that are not part of the target market. By breaking down the population into relevant proportions, businesses can get a more accurate estimate of the market size.

Question 15

Regardless of whether a marketer is working B2B or B2C, the logic in market sizing estimation is always the same-start with the price of the product and multiply it by the size of the target market.

Accepted Answer

Market sizing estimation typically starts with identifying the total addressable market and potential demand, not just multiplying the price by the size of the target market.

Question 16

The Census.gov website cross-classifies businesses by sector and size.

Accepted Answer

The Census.gov website provides data that includes cross-classification of businesses by sector and size, allowing users to analyze business demographics and economic data.

Question 17

Determining which segments to target depends on an interplay of two factors: (1) quantitative issues such as size of segment, profitability, and growth, and (2) strategic issues, primarily the fit of the segment needing to incorporate philosophy and intended positioning.

Accepted Answer

Determining target segments involves both quantitative factors like size and profitability, and strategic factors like alignment with company philosophy and positioning.

Question 18

Companies typically assess their corporate strengths relative to their competitors.

Accepted Answer

Companies often conduct competitive analysis to understand their strengths and weaknesses compared to their competitors, which helps in strategic planning and gaining a competitive edge.

Question 19

Good demographic data help when sizing a market.

Accepted Answer

Demographic data provides insights into the characteristics of a population, such as age, gender, income, and education, which are crucial for understanding and estimating the size and potential of a market.

Question 20

It is impossible to estimate the size of a market segment.

Accepted Answer

It is possible to estimate the size of a market segment using various methods such as market research, surveys, and analysis of existing data.

Quiz 4: Targeting