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1. A market consists of: A) a group of potential customers with similar needs who are willing to exchange something of value. B) various kinds of ...


1. A market consists of:

                        A)        a group of potential customers with similar needs who are willing to exchange something of value.

                        B)        various kinds of products with similar characteristics.

                        C)        sellers offering substitute ways of satisfying needs.

                        D)        all the firms within a particular industry.

                        E)        both A and C.


2   A basic difference between a \"generic market\" and a \"product-market\" is:

                        A)        whether or not sellers in the market rely on e-commerce.

                        B)        how similar the competing sellers\' products are.

                        C)        whether customer needs are similar or different.

                        D)        whether the market includes only buyers—or both buyers and sellers.

                        E)        There is NO DIFFERENCE—the terms mean the same thing.


3  A generic market

                        A)        competitor might have only a tiny market share in the generic market but a large share in its product-market.

                        B)        often includes consumers who will satisfy the same need in quite different ways.

                        C)        often involves sellers who compete in different product-markets.

                        D)        All of the above are true.

                        E)        None of the above is true.


4  Which of the following is the BEST example of a \"generic market?\"

                        A)        The senior citizen recreation market

                        B)        The designer shoes market

                        C)        The frozen yogurt market

                        D)        The transportation market

                        E)        The Hispanic-American market


5  Which of the following is LEAST likely to compete in the same generic market with the others?

                        A)        pop corn.

                        B)        soft drink.

                        C)        napkin.

                        D)        cookie.

                        E)        ice cream.


6    A firm\'s \"relevant market for finding opportunities\":

                        A)        should be as large as possible.

                        B)        should have no geographic limits.

                        C)        should be no larger than its present product-market.

                        D)        should always be named in product-related terms.

                        E)        None of the above is a true statement.


7  Which of the following is NOT part of a product-market definition?

                        A)        information about consumer needs

                        B)        information about the final customer (or user) of the product

                        C)        information about which specific retailers will sell the product

                        D)        a description of the type of product

                        E)        All of these should be included.

8  The first step in market segmentation should be:

                        A)        deciding what new product you could develop.

                        B)        evaluating what segment(s) you currently serve.

                        C)        finding a demographic group likely to use your products.

                        D)        listing features of your current products.

E)        defining some broad product-markets where you may be able to operate profitably.


9    Segmenting:

                        A)        is essentially a disaggregating or \"break it down\" process.

                        B)        assumes that all customers can be grouped into homogeneous and profitable market segments.

                        C)        tries to aggregate together individuals who have similar needs and characteristics.

                        D)        usually results in firms aiming at smaller and less profitable markets.

                        E)        assumes that each individual should be treated as a separate target market.


10   Saying that a \"good\" product-market segment should be substantial means

                        A)        that the company does not have to worry about substantial competition for a long time.

                        B)        that people should have substantially different reactions to marketing mix variables.

                        C)        it should be large enough to be profitable.

                        D)        that people in different market segments should be as different as possible.

                        E)        None of the above is true.


11   Electro Technologies, Inc. (ETI) has limited capital and wants to reduce the risk of competitors taking customers if it invests in a new product-market. Its broad product-market consists of three reasonably distinct submarkets. To identify a target market, ETI should probably focus on using the __________ approach.

                        A)        combined target market.

                        B)        mass marketing.

                        C)        multiple target market.

                        D)        single target market.

                        E)        All of the above.


12   Having segmented its market, the Martinez Corp. has decided to treat each of two submarkets as a separate target market requiring a different marketing mix. Apparently, Stuart is following the _________ target market approach.

                        A)        single

                        B)        combined

                        C)        multiple

                        D)        separate

                        E)        general


13   Quality Ceramic, Inc. (QCI) defined five submarkets within its broad product-market. To obtain some economies of scale, QCI decided NOT to offer each of the submarkets a different marketing mix. Instead, it selected two submarkets whose needs are fairly similar, and is counting on promotion and minor product differences to make its one basic marketing mix appeal to both submarkets. QCI is using the

                        A)        combined target market approach.

                        B)        single target market approach.

                        C)        multiple target market approach.

                        D)        mass marketing approach.

                        E)        All of the above.


14   Segmenting and combining are two alternate approaches to developing market-oriented strategies. Which of the following statements concerning these approaches is true?

                        A)        Combiners treat each submarket as a separate target market.

                        B)        Segmenters try to develop a marketing mix that will have general appeal to several market segments.

                        C)        A combiner looks at various submarkets for similarities rather than differences.

                        D)        A segmenter assumes that the whole market consists of a fairly homogeneous group of customers.

                        E)        Both segmenters and combiners try to satisfy some people very well rather than a lot of people fairly well.


15   When segmenting broad product-markets, cost considerations tend

                        A)        to encourage managers to disregard the criterion that a product-market segment should be substantial.

                        B)        to lead to more aggregating.

                        C)        to be unimportant as long as the segmenting dimensions are operational.

                        D)        to lead to a large number of small, but very homogeneous, product-market segments.

                        E)        All of the above are true.


16   When segmenting a product-market, a marketing manager should keep in mind that

                        A)        demographic dimensions are usually the best place to start.

                        B)        qualifying dimensions help identify which customers are in the product-market.

                        C)        determining dimensions are relevant in business markets, but not consumer markets.

                        D)        most markets should initially be defined based on features of alternative products available to customers.

                        E)        it\'s usually best to focus on a single segmenting dimension rather than trying to consider several all at once.


17   Which of the following types of dimensions would be the most important if one were particularly interested in why some target market was likely to buy a particular brand within a product-market?

                        A)        primary dimensions

                        B)        secondary dimensions

                        C)        qualifying dimensions

                        D)        determining dimensions

                        E)        both A and C above.


18   Which of the following statements about clustering techniques is true?

                        A)        Clustering techniques try to find dissimilar patterns within sets of customer-related data.

                        B)        Computers are usually needed to search among all of the data for homogeneous groups of people.

                        C)        Computers identify the relevant dimensions and do the analysis.

                        D)        A cluster analysis of the toothpaste market indicated that most consumers seek the same benefits.

                        E)        All of the statements above are true.


19   \"Positioning\":

                        A)        involves a packaged-goods manufacturer\'s attempt to obtain the best possible shelf space for its products in retail outlets.

                        B)        is useful for segmenting but not combining.

                        C)        helps strategy planners understand how customers think about various brands or products in relation to each other.

                        D)        applies only to existing products, not new products.

                        E)        eliminates the need for subjective decision making in product planning.


20    Which of the following statements about positioning is NOT true? Positioning techniques

                        A)        position products on a graph based on price level and quantity demanded.

                        B)        require a firm to collect data about consumer perceptions of products.

                        C)        are sometimes called \"perceptual mapping\" techniques.

                        D)        typically rely on a \"product space\" diagram to show the relationship among various products.

                        E)        may use information about consumers\' \"ideal\" products, so that the preferences of different segments of consumers can be considered.