MKTG 336 Exam 1 - FLASHCARDS - Chapter 4
What is a group of present or potential customers with some common characteristic which is relevant in explaining their response to a supplier’s marketing stimuli?
Market segment
What involves identifying groups of customers that are large and unique enough to justify a separate marketing strategy?
Segmentation
What are the four criteria for evaluating the desirability of potential market segments?
Measurability
Accessibility
Substantiality
Responsiveness
What type of segmentation centers on the characteristics of the buying organization and the buying situation?
Macrosegmentation
What type of segmentation focuses on the characteristics of decision-making units within each macrosegment?
Microsegmentation
What is predicting how much of a product or service customers will want to buy in the future, based on historical sales data, market trends, and other relevant factors, to help businesses plan inventory levels, production schedules, and resource allocation accordingly?
Forecasting demand
Why is forecasting demand important?
It helps businesses anticipate customer needs and preferences
What are the quantitative methods for forecasting demand?
Time series
Regression or Causal Analysis
What are the qualitative methods for forecasting demand?
executive judgment method, the sales force composite method, and the Delphi method
What method uses historical data ordered chronologically to project the trend and growth rate of sales?
Quantitative: time series
True or false: time series method is well suited for short range forecasting?
TRUE
What method identifies factors that have affected past sales and implements them in a mathematical model?
Quantitative: regression and causal analysis
What method combines and averages top executives’ estimates of future sales?
Qualitative: executive judgment
Is the method of executive judgement easy to apply and understand?
Yes
True or false: a limitation of executive judgement is that it does not systematically analyze cause-and-effect relationships?
TRUE
When does the method of executive judgement produce accurate forecasts?
They are made frequently and repetitively
Environment is stable
Linkage between decision, action, and feedback is short
What is a method of forecasting future demand for a product by adding together what each member of the sales force expects to be able to sell in his or her territory?
Qualitative: sales force composite
How is composite forecast attained?
Composite forecast is attained by combining the sales estimates from all salespeople
What are the benefits of sales force composite?
- Ability to draw on sales force knowledge about markets and customers
- Executed with relative ease at minimal cost
What are the limitations of sales force composite?
- Does not involve systematic analysis of cause and effect
- Reliance on informed judgment and opinions
- Overestimation of the forecast to look good
What is a method of forecasting that uses questionnaires to gather and synthesize opinions from a group of experts on a particular topic?
Delphi method
True or false: with the delphi method, written opinions about the likelihood of some future event are sought?
TRUE
Is the delphi method generally applied to long term forecasting of demand?
Yes
True or false: the delphi method is suitable for new products or for situations that are not well suited for quantitative analysis?
TRUE
