Name: 

Target marketing is based on recognizing that notable differences exist among the customers for any given product or service.

A market consists of people with the willingness, purchasing power, and authority to buy.  The last characteristic is important because it is a waste of a marketer's time, money and energy to focus on somebody who doesn't have the authority to buy his product or service.

The motivations for buying and the buying process undertaken by customers in consumer markets and industrial markets is virtually identical.

Market segmentation is an appropriate technique for profit-oriented organizations but cannot be used by nonprofit organizations.

The geographic basis for segmentation is appropriate for many Canadian markets and product categories because our population is, for the most part, located along the American border.  As a result, businesses must operate over tremendous distances and with distinctly different groups of people and organizations.

Immigration has very little impact on Canadian society since most immigrants to Canada emigrate to the United States as soon as they are legally able to.

Residence location within an area is an important geographic segmentation variable.  For example, urban dwellers have less pressing needs for automobiles than suburbanites and suburbanites spend proportionately more on lawn and garden care than city dwellers.

Climate is an important factor that relates to demographic segmentation.

Geographic segmentation influences business decisions such as which regions to sell your product in and where your sales offices should be located.

The youth segment (15-29) is declining in proportion to the whole population of Canada, but will remain large and potentially important to many product markets.

Family life cycle is based on combining several demographic characteristics together: age, marital status, presence or absence of children, and social status.

As noted earlier, a market consists of people with the willingness, purchasing power, and authority to buy.  A person's income level is primarily related to their willingness to buy.

A household's expenditures consists of essential household needs and discretionary purchases that can be made once necessities have been bought.

Engel's Laws state that, as family income increases, a smaller percentage of that income goes for food, the percentage spent on housing and clothing remains the same, and the percent spent on items like recreation and education increases. These laws are useful for marketers today, even though Ernst Engel developed them more than 100 years ago.

Segmentation on the basis of lifestyle is the same as segmentation on the basis of psychographics.

Consumers' lifestyles are based on people's individual behaviour patterns and psychological make-up, and are influenced by factors such as social class and culture.  Psychographics is about determining the behavioural profiles of  people based not only on their psychological attributes and lifestyles, but also on their attitudes and demographics.

Environics Research has produced a psychographic grouping of Canadians which is based on dividing the population into three main age groups and then subdividing these three age groups into 3-5 psychographic segments each.

Benefit segmentation is based on the customer's view of the attributes they associate with (in other words, the benefits they receive from) using a given product category.

End-use application segmentation in industrial markets is similar to psychographic segmentation in consumer markets.

Account size and potential segmentation in industrial markets is similar to usage rate segmentation in consumer markets.

The strategic planning process includes

Marketers maintain that a company will achieve greater success by focusing on part of a market (a target segment or target market) rather than trying to sell its products or services to everyone.  This is based on their belief that

The starting point for selecting a target market is

Broadly speaking, there are two types of markets: consumer goods and industrial goods.  Which of the following statements correctly defines these two types of markets?

The process of dividing a consumer market or an industrial market into several smaller, homogeneous groups according to their similarity in one or more dimensions that are relevant to a particular product category is

Red Ryder Industries markets rodeo and equitation (horse riding) supplies specifically to women.  This is an example of

The fact that a soup company makes its soups spicier for the market in British Columbia than for the market in Prince Edward Island is an example of

The idea that a bank might find that low-income households are an excellent market for new car loans, middle-income households are an excellent market for household furnishing loans, and that high-income households are an excellent market for home and travel loans is based on

The fact that people who drive different types of cars have different purchase habits when it comes to buying gasoline and other automobile products and services can be used as the basis for

The fact that some people attend a symphony for an evening's entertainment and that some people attend a symphony for intellectual enlightenment could be the basis for using _____________ to divide the live entertainment market into homogeneous groups of people.

Tour companies that segment travelers based on frequency of travel are using

Geographic segmentation is only useful when

The population of Canada is expected to grow by 10 percent between 1999 and 2006, but this growth will primarily occur a group that can be broken into two potentially profitable target markets.  These two target markets are

Canada is experiencing a trend toward smaller households averaging three people per household, whereas an average household consisted of more than four people prior to World War II.  This trend is occurring due to

Benefit segmentation is considered to be one of the most useful methods of classifying consumer markets because studies have found that benefit segmentation is a good predictor of

Heavy users are an attractive target group in many markets that have been segmented on the basis of usage rate because

Consumer markets are generally segmented on the basis of geographic, demographic, psychographic, benefit, and usage rate segmentation.  The market segmentation approaches used in industrial markets are

Companies that segment their industrial markets on the basis of the North American Industrial Classification System (NAICS) are using

A truck manufacturer that has several different models of trucks that have been designed to do distinctly different jobs, such as hauling garbage, transporting live animals, and transporting refrigerated products, is using

If Procter & Gamble, a major manufacturer of household products that are sold in grocery stores, has its sales force call on large, urban grocery stores more frequently that they call on small, rural grocery stores, it is using a form of  ________ to determine where to concentrate its sales resources.