Question 1

Indesit, an Italian appliance manufacturer, sold 15.5 percent of all appliances sold in Europe in
) 2004. This was the company's:

Accepted Answer

Market share refers to the percentage of an industry's sales that a particular company controls. In this case, Indesit's 15.5 percent of all appliances sold in Europe represents its market share for that year.

Question 2

Sales-force composite as a method of forecasting demand is most effective when:

Accepted Answer

Sales-force composite forecasting is most effective when the market consists of a relatively few, but large, customers because sales representatives can more easily estimate potential sales to each customer due to their familiarity and direct contact with them.

Question 3

The second most visited Roman Catholic shrine in the world is at Aparecida de Norte, Brazil.  More than eight million people visited the shrine annually. Because there is little else in the town for tourists to do, Brazilian and Italian entrepreneurs are building a religious theme park. When worshippers complete their visit to the shrine, they can be whisked to the park. The shrine's visitors represent the________ for the religious theme park.

Accepted Answer

The shrine's visitors are the specific group the religious theme park aims to attract and serve, making them the target market for the park.

Question 4

The market for bourbon and scotch is continuing to age. Assume a distiller is interested in   increasing the usage rate among light drinkers. Which of the following strategies could be used?

Accepted Answer

Each of the strategies listed could potentially increase the usage rate among light drinkers. Using younger people in ads could make the product more appealing to a younger audience. Lowering prices could make the product more accessible. Multiple packaging options could attract consumers looking for convenience or variety. Promoting a contest for bartenders to develop new drinks could increase interest and introduce the liquors to consumers in new and appealing ways.

Question 5

If it adopts a strategy of________ , a firm will use only one combination of marketing mix variables.

Accepted Answer

Market aggregation is a strategy where a firm decides to treat the market as a single segment, using one combination of marketing mix variables (product, price, place, promotion) to reach customers. This approach contrasts with strategies like product differentiation or multiple segmentation, where multiple marketing mixes might be used to cater to different segments or product variations.

Question 6

.
Which of the following activities could be used to identify which benefits a manufacturer of cake Decorating kits should target?

Accepted Answer

All the listed activities (A, B, C, D) are valid methods to identify which benefits a manufacturer of cake decorating kits should target, as they each offer different insights into consumer preferences and behaviors.

Question 7

How does multiple correlation differ from correlation analysis as a forecasting tool?

Accepted Answer

Multiple correlation differs from simple correlation analysis by allowing the consideration of more than one independent variable or market factor simultaneously to assess their collective impact on a dependent variable. This enables a more comprehensive analysis compared to simple correlation, which examines the relationship between only two variables at a time.

Question 8

Before Proctor & Gamble introduced its Easy-Up disposable training pants to the European  market, it test marketed the new product in Greece and in regions of Scandinavia in order to gauge demand. P&G used test markets as a:

Accepted Answer

Test markets are commonly used as a sales forecasting tool by companies to estimate how well a new product will perform in a larger market by observing its performance in a smaller, controlled setting. This allows the company to make adjustments and predict demand more accurately before a full-scale launch.

Question 9

In 1926, the Jell-O Company introduced chocolate flavor pudding mix for schools, convalescent   homes, orphanages, sanitariums, hospitals, and similar institutions. What kind of segmentation did the company use in the business market?

Accepted Answer

The Jell-O Company targeted specific types of organizations (schools, convalescent homes, orphanages, sanitariums, hospitals, etc.), which is an example of customer type segmentation in the business market. This approach categorizes customers based on the type of organization they are.

Question 10

The bases used for segmenting the business market include:

Accepted Answer

The bases for segmenting the business market include customer location, buying situation, customer size, and purchase criteria, among others. These factors help in identifying and targeting specific segments within the business market effectively.

Question 11

Concentration strategy and multiple-segment strategy are two of the three target market  strategies. The other type is called:

Accepted Answer

Market aggregation, also known as mass marketing, involves treating the entire market as a single segment, offering the same marketing mix to all customers. This contrasts with concentration strategy, which focuses on a single market segment, and multiple-segment strategy, which targets several distinct segments with different marketing mixes.

Question 12

"The number of dogs in U.S. that are 7 years old or older" is related to the demand for senior   dog food. This is an example of a________ because the number of older dogs determines how many bags of senior dog food can be sold.

Accepted Answer

This is an example of a market factor because it represents an external element (the number of older dogs) that influences the demand for a specific product (senior dog food) in the market.

Question 13

At one time Kraft was on the verge of discontinuing Cheez Whiz because its sales were so  low. Then Kraft determined it could launch a new ad campaign showing Cheez Whiz as a fast, convenient microwavable cheese sauce. This ________strategy made Cheez Whiz a strong product within the Kraft product line.

Accepted Answer

The correct answer is repositioning because Kraft changed the perception of Cheez Whiz in the market by promoting it as a fast, convenient microwavable cheese sauce, without changing the product itself but rather its intended use and appeal to consumers.

Question 14

Since many middle-aged women are interested in looking as young as they feel, they are   demanding skin rejuvenation treatments such as those being supplied by Elizabeth Arden's Intensive Repair Cream and Neutrogena Healthy Skin. The manufacturers of these cosmetics are using ________segmentation.

Accepted Answer

Demographic segmentation is used here because the manufacturers are targeting a specific age and gender group (middle-aged women) for their skin rejuvenation treatments.

Question 15

A large wholesaler of tires has separate marketing strategies for dealer-owned car repair centers, retail chains like Wal-Mart and Kmart, and small local tire dealers. This is an example of segmentation by:

Accepted Answer

The wholesaler is segmenting its market by size of customer, as it has different marketing strategies for dealer-owned car repair centers, retail chains, and small local tire dealers.

Question 16

The Delphi method is a specialized form of:

Accepted Answer

The Delphi method is a structured communication technique or method, originally developed as a systematic, interactive forecasting method which relies on a panel of experts. The experts answer questionnaires in two or more rounds. After each round, a facilitator provides an anonymous summary of the experts’ forecasts and reasons for their judgments. This process is intended to reduce the influence of any single individual and encourages the experts to revise their earlier answers in light of the replies of other members of their panel. It is often categorized under executive judgment because it pools the insights and judgments of a group of executives or experts.

Question 17

Correlation analysis:

Accepted Answer

The answer of Correlation analysis:

...

Question 18

Which of the following is the best example of product differentiation?

Accepted Answer

Product differentiation refers to the process of distinguishing a product or service from others, to make it more attractive to a particular target market. Revlon's advertisement of its ColorStay lipsticks as having a unique feature ("won't kiss off") that other lipsticks do not offer is a clear example of product differentiation, as it highlights a specific, distinguishing benefit of their product.

Question 19

The direct-derivation method:

Accepted Answer

The direct-derivation method requires little statistical analysis because it involves straightforward calculations or assumptions rather than complex statistical techniques.

Question 20

Sales forecasts:

Accepted Answer

Sales forecasts are most effectively prepared after understanding the market potential (the total demand for a product in a market) and sales potential (the portion of market potential the firm can expect to achieve). This provides a realistic basis for estimating future sales.

Quiz 6: Market Segmentation Targeting and Positioning

Indesit, an Italian appliance manufacturer, sold 15.5 percent of all appliances sold in Europe in ) 2004. This was the company's:

Sales-force composite as a method of forecasting demand is most effective when:

The market for bourbon and scotch is continuing to age. Assume a distiller is interested in increasing the usage rate among light drinkers. Which of the following strategies could be used?

If it adopts a strategy of________ , a firm will use only one combination of marketing mix variables.

. Which of the following activities could be used to identify which benefits a manufacturer of cake Decorating kits should target?

How does multiple correlation differ from correlation analysis as a forecasting tool?

Before Proctor & Gamble introduced its Easy-Up disposable training pants to the European market, it test marketed the new product in Greece and in regions of Scandinavia in order to gauge demand. P&G used test markets as a:

In 1926, the Jell-O Company introduced chocolate flavor pudding mix for schools, convalescent homes, orphanages, sanitariums, hospitals, and similar institutions. What kind of segmentation did the company use in the business market?