You've begun your new job with the marketer of furniture for hotels and offices. During your first meeting with the CEO, she explains that the business is underperforming and she has decided to change strategy. Currently, the firm targets all potential customers using the same marketing mix, but you will be developing two new marketing mixes: one directed to hotel room decorators and another directed to office planners.
Based on this information, which of the following statements is correct?
The new strategy involves switching from consumer to business marketing.
The new strategy involves switching from a differentiated approach to an undifferentiated approach.
The new strategy involves focusing on a homogeneous market.
The new strategy assumes that hotel rooms and offices need different types of furniture.
The new strategy will use elements in the marketing mix to transform a homogeneous market into a heterogeneous market.
Over the course of your career, you've had a lot of experience selecting target markets for a variety of products. You realize that what comes naturally to you—carrying out the selection process using the correct sequence of steps—is difficult for those new to the field. After explaining target market selection to a promising trainee, you give her a list of the steps and ask her which one(s) is(are) numbered correctly.
Choose which correctly-numbered step(s) is(are) identified by the trainee.
Step 2: Determine which segmentation variables to use.
Step 5: Evaluate relevant market segments.
Step 3: Identify appropriate targeting strategy.
Step 1: Develop market segment profiles.
Step 4: Select specific target markets.
In your college marketing courses you were impressed with the value of trend analysis in forecasting sales, and you want to apply this technique to your firm's new target market. But your boss, who worked his way up from sales, is only comfortable with sales force forecasting. Fortunately, he is open-minded enough to ask you for a comparison between the two approaches.
Which of the following statement(s) is a correct comparison of the two sales forecasting approaches?
Both trend analysis and sales force forecasting can be enhanced by the Delphi technique.
Neither trend analysis nor sales force forecasting utilizes the Delphi technique.
Unlike sales force forecasting, trend analysis cannot be applied unless the firm has collected aggregate sales data over many years.
Unlike trend analysis, sales force forecasting is a survey-based approach.
Sales force forecasting requires more aggregate data about sales than trend analysis.
You majored in marketing and have worked in the field for several years. Your fraternity brother, an economics major, has become an expert in forecasting economic activity. Since graduation, your paths have rarely crossed. But now you plan to call him, because you need to estimate your company's sales potential in a new market.
For which of the following sales estimation techniques will you need a comprehensive forecast of economic activity?
Trend analysis
Regression analysis
Geographic analysis
Buildup approach