Business 150 Module 3 Study Guide

When marketers are gathering factual information, they are ______.

collecting primary data from surveys and/or observation, and getting secondary data from commercial or government data sources

Hospitals, colleges and universities, and museums fall into the ______ category of business customers.

institutional market

Willow opens a lemonade stand at the corner of her street. She expects to sell three pitchers of lemonade during the afternoon by putting signs up at each end of the street directing motorists to her stand. Willow's estimate of expected sales during the afternoon based on this level of marketing effort is called a ____.

sales forecast

Wegmans Food Markets sells turkeys +from November through December. By doing this, Wegmans is providing _____ utility.

time

Today, the focus of many companies is ______.

to foster long-term relationships with customers

Bean to Brew, a retail coffee bean business, designs a single marketing mix and directs it at the entire market. The company is using a(n) _____ approach.

undifferentiated approach

When a company uses a single marketing mix to target all customers, it is utilizing a(n) ________.

undifferentiated approach

What are the 3 pricing methods?

1. Cost-based pricing - costs + markup 2. Demand-based pricing - Customer 3. Competition-based pricing - Pricing either above or below

What are the 2 steps in the marketing strategy?

1. The selection and analysis of a target market 2. The creation and maintenance of an appropriate marketing mix—a combination of product, price, distribution, and promotion developed to satisfy a particular target market

What are the 3 general approaches a company can take in determining their target market selection?

1. Undifferentiated Approach 2. Concentrated Market Segmentation 3. Differentiated Market Segmentation

What are the 3 stages of the evolution of customer orientation?

1.) Production Orientation 2.) Sales Orientation 3.) Customer Orientation

Neema owns an antique shop, and she sells her antiques exclusively to people who plan to enjoy them in their homes. In what type of market does Neema operate her shop?

A consumer market

What is a marketing strategy?

A plan will enable an organization to use its resources and advantages to meet its objectives.

Tombe owns a commercial glass manufacturing shop. He sells his glass products exclusively to wholesalers, who in turn sell the products to customers for a profit. In what type of market does Tombe operate his shop?

A reseller market

Felipe, the owner of a landscaping business, has prepared an estimate of the amount of landscaping services he expects to sell in the upcoming year, keeping his marketing budget the same as it is in the current year. What has Felipe prepared?

A sales forecast

Identify and define the elements of the integrated marketing communications mix.

Advertising: a paid nonpersonal message communicated to a select audience through a mass medium & flexible and can reach a very large or a small, carefully chosen target group. Personal Selling: personal communication aimed at informing customers and persuading them to buy a firm's products. It is more expensive to reach a consumer through personal selling than through advertising, but this method provides immediate feedback and often is more persuasive than advertising. Sales Promotion: using activities or materials as direct inducements to customers or salespersons, which can add value to the product and increase the customer's incentive to purchase. Public Relations: a broad set of communication activities used to create and maintain favorable relationships between an organization and various public groups, both internal and external & activities are numerous and varied and can be a very effective form of promotion.

Aurora owns a custom wood shop that exclusively crafts pews for churches. As a very religious person herself, Aurora operates her business on a very slim profit margin, giving her church customers large price concessions on the pews she sells them. Aurora considers this a way to "give back" to the greater church community. In what type of market does Aurora operate her shop?

An institutional market

Aoi, a self-proclaimed "budding entrepreneur" who would like to open her own tattoo parlor, recently completed a continuing education course at her local community college entitled "How to Succeed in Business: Managing Your Marketing Mix." Which of the following is not part of a business's marketing mix?

Aoi, a self-proclaimed "budding entrepreneur" who would like to open her own tattoo parlor, recently completed a continuing education course at her local community college entitled "How to Succeed in Business: Managing Your Marketing Mix." Which of the following is not part of a business's marketing mix?

What is brand loyalty? Brand equity?

Brand Loyalty: Brand Recognition (Know), Brand Preference (Like - all other factors equal, choose this), & Brand Insistence (Trust - No Substitute). Brand Equity: marketing and financial value associated with a brand's strength in a market. Reputation

What is a brand? What are the components of a brand?

Brand: identity in the marketplace Components of a Brand: Brand Name (Spoken Element), Brand Mark (Visual Element), Trademark (Legal Protection), & Trade Name (Legal Name)

_______ is the purchasing of products for personal or household use.

Consumer buying behavior

What are the classifications of consumer products?

Convenience Product Shopping Product Speciality Product

What are integrated marketing communications?

Coordination of promotion efforts to ensure the maximum informational and persuasive impact on customers.

Which of the following is not one of the forces of the marketing environment?

Customer

_______ focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationships.

Customer relationship management (CRM)

Raleigh Bikes produces several lines of bicycles. They are divided on the company's website by fitness, hybrid, comfort, and urban & commuter. Raleigh is using which type of targeting approach?

Differentiated approach

Marketers are most interested in a consumer's ______ income.

Discretionary

Malik recently graduated from university and accepted his first job, a pharmaceutical sales position, in Boston, Massachusetts. Malik received the first direct deposit of his pay last Wednesday, and he eagerly checked online to see the amount of his deposit. Malik was shocked at how much lower his actual pay was relative to his overall monthly salary, but then he realized that the difference was based on state and local taxes. Realizing this did not make him feel any better. What type of income is the reason for Malik's discontent?

Disposable

In the marketing plan for his start-up company, Alvaro included for easy reference a one-page synopsis of the entire plan. Which component of the marketing plan is this?

Executive summary

After having driven her old-but-reliable Honda Civic for the past 12 years and 210,000 miles, Camille has decided to purchase a new car. Her best friend, Claudia, highly recommends the Toyota Corolla, and Camille has conducted extensive online research comparing prices, features, expert reviews, and consumer reviews of the Civic and the Corolla. Camille has yet to make up her mind; after all, she has enjoyed her Civic for years, but she is also interested in a new experience driving a different make and model of car. Camille plans to drive her new car for at least another 12 years. What type of decision making is presented in this scenario?

Extended

_______ is an important function of marketing because some consumers require the use of credit cards to make purchases.

Financing

Demarco owns a furniture manufacturing plant. His plant takes, wood, cloth, metal, and other materials and converts them into beautiful chairs and couches that are in high demand both domestically and internationally. Based on the information emphasized in this scenario, which of the following types of utility does Demarco's plant create?

Form

What are the marketing segmentation variables? Be sure to understand each.

Geographic: culture, language, climate Demographic: age, gender, religion Psychographic: Attitudes, Values, Lifestyle Behavioral: customer satisfaction

After a consumer recognizes a need, they move to which step in the consumer buying decision process?

Information search

What are the 3 types of distribution?

Intensive distribution - the use of all available outlets for a product Selective distribution - the use of only a portion of the available outlets for a product in each geographic area Exclusive distribution - the use of only a single retail outlet for a product in a large geographic area

Krisha, a marketing manager for General Motors Company (GM), is about to attend a very important company meeting. In the meeting, Krisha will be presenting to GM's executive management team the company's quarterly sales figures, product and marketing costs, and inventory levels. What type of marketing data will Krisha be sharing with executive management?

Internal

Be able to explain the stages of the product life cycle.

Introduction: The product is launched into the market in the introduction stage. Growth: The product becomes more popular and gains more attention during the growth stage. Maturity: The product is established and is reaching its peak in sales and profits. Decline: The product starts to lose popularity, and sales decline.

As a long-time small business owner, Clara has become very skilled in customer relationship management (CRM). Which of the following is correct regarding CRM?

It focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationships.

Having recently completed her Master of Business Administration (MBA) degree, Mitsuki understands how important identifying and satisfying the target market is to entrepreneurial success. Which of the following is false regarding the target market?

It includes individuals, but not organizations.

In her last Introduction to Business video lecture, Hina's professor emphasized to students the importance of market segmentation to business success. Which of the following is not true regarding market segmentation?

It is also known as the undifferentiated approach.

As a small business owner, Emil understands the importance of sales forecasting to entrepreneurial success. Which of the following is correct regarding a sales forecast?

It is an estimate of the amount of a product that an organization expects to sell during a certain period of time.

As the owner of a hair salon, Vincente has decided to adopt a customer orientation. Which of the following is correct regarding the customer orientation marketing concept?

It recognizes that an organization must first determine what customers need and then develop goods and services to fill those particular needs.

In her Principles of Marketing class, Sai's professor has repeatedly emphasized how important relationship marketing is to the success of a business. Which of the following is correct regarding relationship marketing?

It refers to marketing decisions and activities focused on achieving long-term, satisfying relationships with customers.

As the owner of an automobile repair shop, Anish has adopted a production orientation. Which of the following is false regarding the production orientation marketing concept?

It utilizes customer relationship management tools and technology to try to retain and increase long-term profitability through customer loyalty.

______ forces consist of laws and regulations to maintain competitive conditions and protect consumer rights.

Legal and regulatory

What are the steps in the consumer buying behavior process?

Need Awareness Search for Alternatives Evaluate Alternatives Purchase Post-Purchase Behavior

Identify and define the options in psychological pricing.

Odd-Number Pricing: setting prices using odd numbers slightly below whole-dollar amounts. Multiple - Unit Pricing: setting a single price for two or more units, such as two cans for 99 cents rather than 50 cents per can. Reference Pricing: pricing a product at a moderate level and positioning it next to a more expensive model or brand in the hope that the customer will use the higher price as a reference price (i.e., a comparison price). Because of the comparison, the customer is expected to view the moderate price favorably. Bundle: the packaging of two or more products, usually complementary, to be sold for a single price.

What is packaging, and what does it do?

Packaging: all the activities involved in developing and providing a container with graphics for a product Protect the product. Maintain the product's functional form. Offer consumer convenience. Promote a product by communicating its features, uses, benefits, and image.

In the marketing plan for a restaurant she recently purchased, Naroa has included an explanation of how the firm will measure and evaluate the results of the plan after its implementation. Which part of the marketing plan is this?

Performance evaluation

______ is the availability of goods and services at convenient locations.

Place utility

Oban owns a pre-owned car lot in Lansing, Michigan. Most of Oban's customers cannot afford to pay cash for their purchases; in fact, many cannot even afford to make a down payment. Oban's message to his customers is always "no money, no problem," since he offers zero down payment, "buy here, pay here" financing for his vehicles. Based on the information emphasized in this scenario, which of the following types of utility does Oban's car lot create?

Possession

When Tilly buys flowers at the farmer's market, the flower business transfers ownership of the flowers to her, which is called _____ utility.

Possession

Identify and define the options for pricing new products.

Price Skimming: Start high, intention to lower. Reference Price Penetration Pricing: start low, then go high.

Suppose that Jack in the Box, a fast-food restaurant, plans to introduce a new type of chicken sandwich to its menu. Before doing so, however, the company will conduct focus groups to gather customer opinions on the sandwich. What kind of marketing research data will Jack in the Box gather from its focus groups?

Primary

Quinn's Lighting, a home lighting manufacturer, purchases electrical wires needed to make light fixtures from various wire manufacturers. Of which type of market is Quinn's Lighting?

Producer

What are the elements of the marketing mix?

Product Price Place (Distribution) Promotion (Integrated Marketing Communications)

What is a product line? Product mix?

Product Line: - a group of similar products that differ only in relatively minor characteristics. Product Mix: all the products a firm offers for sale.

What is product modification?

Product Modification: Consumers can see it, and it has value. A group of similar products that differ only in relatively minor characteristics.

Pip's Produce, a food distributor, distributes organic produce to restaurants. Pip's Produce is part of a(n) _____ market.

Reseller

Marketers at Pampers are calculating the average customer lifetime value (CLV). Which of the following equations should they use?

Sales - Costs = CLV

Billie is a vice president at Collins and Co. She has been examining data from her company and discussing its successes and failures with the different division heads and managers. As part of her analysis, she has reviewed the company's strengths and found that it is very good at promotion and meeting clients' specific needs. She has discovered that the company is very slow with delivery and with prompt collection of its receivables. She also found out that another company is producing goods similar to those produced by Collins and Co., and is selling them for less money and with a longer warranty. Finally, she has discovered that there is a great need for her company's product in the medical field and that this market is virtually untapped. Which of the following best describes Billie's activities?

She is doing a SWOT analysis.

In her Introduction to Business class, Chiara's professor has emphasized the importance of recognizing customer lifetime value (CLV) to the success of a business. Which of the following is not true regarding CLV?

Since life expectancies vary and constitute mere projections, it is very difficult to calculate.

What are the 3 areas that influence customer buying behavior?

Situational Factors Psychological Factors Social Factors

Family is which type of influence on consumer purchases?

Social

A consumer narrows down their alternatives and makes a decision to purchase a product during _____ of the consumer buying decision process.

Step 4

What is the definition of marketing?

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

What is the price?

The amount of money a seller is willing to accept in exchange for a product at a given time and under given circumstances.

Define the product's life cycle.

The graph shows sales volume and profits during the life cycle of a product

_______ is a business philosophy that a firm should provide goods and services that satisfy customers' needs through a coordinated set of activities that allow the firm to achieve its objectives.

The marketing concept

Susana's father, Victor, owned a pizza shop in the 1990s and sold it in 2000 to take a job working in a United States Postal Service warehouse. Victor has repeatedly told Susana that he regrets selling the pizza shop. According to Victor, he knew all his customers personally and considered them friends, and they would often sit in his restaurant way past their lunch hour, discussing life's "ups and downs" with him. Victor was known to give free pizza to his customers on their birthdays, and he would even attend the weddings and funerals of his customers or their family members. Victor misses the contact he had with customers. Which of the following marketing concepts is most closely associated with this scenario?

The relationship orientation

Aneko owns and operates a Christmas tree farm in upstate New York. His farm is open only from the day after Thanksgiving until December 24th, since customers would have little use for a cut Christmas tree outside of the holiday season. Based on the information emphasized in this scenario, which of the following types of utility does Aneko's farm create?

Time

______ brings value to customers by satisfying their wants and needs without them waiting.

Time utility

As a marketing professor, Advik always makes sure to emphasize to his students how important the external marketing environment is to the success or failure of a business. Forces that make up the external marketing environment include all but which of the following?

Utilitarian

As the owner of an information technology firm, Anaya is very aware of the impact the external marketing environment has on her business. Forces that make up the external marketing environment include all but which of the following?

Utility

What is utility? Form utility? Time utility? Possession utility?

Utility: the ability of a good or service to satisfy a human need Form Utility: utility created by people converting raw materials, finances, and information into finished products or services. Time Utility: utility created by making a product available when customers wish to purchase it. Possession Utility: utility created by transferring a product's title (or ownership) to a buyer.

What is the marketing concept?

a business philosophy that a firm should provide goods and services that satisfy customers' needs through a coordinated set of activities that allow the firm to achieve its objective.

A company that is concerned about what its customers' needs are and develops products to fill those needs likely has a _____.

customer orientation

The first step in the marketing research process is to ______.

define the problem

When a company targets several different market segments and creates a different marketing mix for each segment, it is using a(n) _______.

differentiated approach

The ________ forces consist of factors that influence consumers' ability and willingness to buy.

economic

All of the following are methods that may be used for sales forecasts except ______.

environmental analysis

The ______ section of the marketing plan gives information about the company's current situation with respect to the marketing environment.

environmental analysis

The conversion of inputs into a finished form describes ______.

form utility

The first step for a company implementing the marketing concept is to ______.

gather information about potential and present customers

Longwei lives in China and would like to export wool to the United States. However, there are import tariffs on wool items from China that his products would be subject to. This is an example of ______ factors in the marketing environment.

legal and regulatory

The owners of Toki's Bicycle shop are trying to decide what types of bicycles to carry in their shop. They have noted that there are many older individuals in their area who would benefit from beach cruisers, there are many road riders who would most likely select high-end street bicycles, and the mountain bike riders should be provided for, as there are many dirt roads to ride them. Toki's owners are in the process of _____.

market segmentation

Selling is an important function of marketing because _______.

marketers must communicate with consumers about how their products create value.

An outline of how the company will achieve its objectives would be found in the ______ section of the marketing plan.

marketing strategies

Key highlights of the _____ section of the marketing plan include information on the target market and the marketing mix.

marketing strategies

One of the first steps to implementing the marketing concept is to ____.

obtain information about its customers' needs

Raleigh Bikes are sold through Raleigh's website and in specialty bike stores. The type of utility that Raleigh provides by selling its bikes in this manner is _____.

place

When creating a marketing mix, marketers consider functions, features, brand name, packaging, and warranties when considering the ______ element.

product

Diego's is a Mexican restaurant that has a booth at the local farmer's market each Saturday selling Mexican food to customers. The owner runs the booth because he enjoys interacting with customers. When a customer asks for items not on the menu and he does not have them in his booth, the owner takes the order for the following Saturday and has it available for the customer at that time. Diego's is creating a model for _____.

relationship marketing

Retailers and wholesalers are part of the ______ category of business markets.

reseller market

Brian says that the people who write blogs and post comments on blogs provide a lot of the marketing research for the company—meaning Raleigh Bikes uses the information posted online to gather data on what customers are looking for. This kind of marketing research information could be categorized as _____.

secondary data

Information from previously published or compiled sources is called ______.

secondary data

As Americans start to eat healthier, fast-food restaurants need to consider adding items to their menus like salads and grilled items. This is an example of changes in the _____ environment.

sociocultural

In the video, Brian discusses the U.S. "messenger movement." These consumers are going for a more casual cycling experience. These cyclists have influenced Raleigh to produce more all-steel bikes. In this example, Raleigh is considering the ____ environment.

sociocultural

The function of _____ means ensuring that product offerings meet quality and quantity controls of size, weight, and other variables.

standardizing

What is market segmentation?

the process of dividing a market into segments and directing a marketing mix at a particular segment or segments rather than at the total market