A market includes any person or entity that has the willingness and the purchasing power to buy a product.
True
The target market for a product is the specific segment of consumers most likely to purchase that particular product.
True
Raw silk is an example of a consumer product.
False
A hotel purchases towels for use in its rooms. In this context, these towels will be considered business products.
True
Items can be classified as business products, not because of what they are, but because of how they will be used.
True
Division of the total market into smaller, relatively homogeneous groups is known as market optimization.
False
Targeting a large number of small markets can produce an expensive, complex, and inefficient marketing strategy.
True
Division of an overall market into homogeneous groups based on their locations constitutes socioeconomic segmentation.
False
Core regions are locations where marketers get the majority of their sales.
True
Baby Boomers are decreasing in popularity as a market segment due to their declining disposable income.
False
Psychographic segmentation helps marketers to gain a sharper insight into consumer purchasing behavior.
True
During the process of market segmentation, finalizing the marketing strategy and tactics helps firms to determine the costs of marketing and the expected level of resources it must commit.
True
Concentrated marketing strategy ties a firm’s growth to a specific market segment.
True
