Chapter 4

Question 1

Market segment

Answer 1

Represents a group of present or potential customers with some common characteristic which is relevant in explaining their response to a supplier’s marketing stimuli.

Question 2

Macrosegmentation

Answer 2

Centers on the characteristics of the buying organization and the buying situation and thus divides the market by such organizational characteristics as size, geographic location, the North American Industrial Classification System category(NAICS), and organizational structure.

Question 3

Microsegmentation

Answer 3

Requires a higher degree of market knowledge, focusing on the characteristics of decision-making units within each macro segment – including buying decision criteria, perceived importance of the purchase, and attitude toward vendors.

Question 4

Value in use

Answer 4

Is a product’s economic value to the user relative to a specific alternative in a particular application.

Question 5

Methods of forecasting demand

Answer 5

Two primary approaches are qualitative and quantitative:

Question 6

Forecast qualitative

Answer 6

Management judgment is qualitative techniques that rely on informed judgment and rating schemes.
Subjective techniques are qualitative techniques that rely on informed judgment and rating schemes.
Executive judgment is a judgment method that combines and averages top executive’s estimates of future sales and is popular because it is easy to apply and understand and enjoys a high-level usage.
Sales force composite is an approach where salespeople can effectively estimate future sales volume because they know the customers, the market, and the competition.
Delphi method Is the opinions of a panel of experts on future sales are converted into an informed consensus through a highly structures feedback mechanism.

Question 7

Forecast quantity

Answer 7

Time-series is a technique that uses historical data ordered chronologically to project the trend and growth rate of sales. The rationale behind time-series analysis is that the past pattern of sales will apply to the future.
Regression A process that uses an opposite approach identifying factors that have affected past sales and implementing them in a mathematical model.
Casual analysis A process that uses an opposite approach identifying factors that have affected past sales and implementing them in a mathematical model.