Chapter 12 SLO 2

If you think back to the beginning of this whole process, how did Mattel determine the need to launch their new doll quickly? Select the step of the marketing research process that matches the action Mattel took in response to the impending U.S. launch of the My Friend Cayla doll. Determine the impact of competitor's digital doll on Mattel's doll business. Define the research goal 1 ________________________Found that availability of customization rates higher for consumers than any other feature or benefit. Interactivity was a close second, meaning the competitor's doll was indeed a threat. Interpret the information 2 ____________________________Researched features and benefits of Mattel's doll versus the competitors. Also researched how strongly consumers prefer each of these features. Gather information 3__________________________ Launched the customizable, digital Mattel doll sooner than the competition could launch theirs. Make marketing decisions 4_________________________________

1 Define the research goal 2 Interpret the information 3 Gather information 4 Make marketing decisions

Though few customers are aware of it, social scientists and marketers recognize consumers are influenced in three ways when making decisions. They include social influences, psychological influences, and situational influences. Label each statement below as one of these three kinds of influence. My daughter's best friend has one of these dolls. Social 1 ________________My daughter should have access to the very best technology. Psychological 2 ____________________ I found a coupon for 20% off at Target and my niece's birthday is soon. Situational 3______________________My daughter lost her favorite doll, so I need to do something fast. Situational 4_________________ I'm a strong believer in providing kids outlets for their creativity and imagination. Psychological 5________________________

1 Social 2 Psychological 3 Situational 4 Situational 5 Psychological

You have a darling 4-year-old daughter. She is very bright and you like to buy her toys that are challenging and entertaining. Some of your purchases have been flops because they aren't very appealing to look at. And though you thought they were challenging, your daughter was easily bored. In addition, she isn't comfortable with initiating conversations with her peers. While shopping for a birthday gift for your niece, you see a large display for a new doll - a digital doll - that has brown hair and brown eyes like your daughter. Select the step in the consumer decision process that matches each situation. You pick up a brochure at the display and start reading. The doll interacts with the child by syncing through an iOS or Android phone. The child can ask questions and the doll will answer and interact with the child. The doll can play games, sing songs, and chat with her. Search for information 1 ___________________Your daughter's preschool teacher is concerned your daughter likes to learn new concepts, but needs more socialization opportunities because she doesn't make friends easily. Recognize the problem 2 _______________________You can't wait to give this new doll to your daughter and see if she interacts with it as you hope she will. Even if she only plays with it a few minutes a day, you will consider it a worthwhile investment. Evaluate after the purchase 3 ___________________Other dolls are on display but none of them interact like this doll does. This one is made by Mattel, a brand you trust. Evaluate alternatives 4 _________________________The price is a little steep at $150, but you hand over your Visa and remind yourself that your daughter's teacher recommended more socialization opportunities to help your daughter make friends. Purchase 5____________________

1. Search for information 2. Recognize the problem 3. Evaluate after the purchase 4. Evaluate alternatives 5. Purchase

For each of the examples below, identify the type of influence using the drop down menu. 1_______________________ When I am feeling like a cold is coming on, I buy Lipton's Chicken Noodle Soup because that is what my mom always gave me when I was sick as a child. It always made me feel better. 2 ____________________ Every Saturday I drive by three grocery stores just to get to the farmer's market. It is my belief that we should support local farmers over those large grocery chains. 3 _________________________ On days that I forget to pack my lunch, I get lunch from Chick-fil-a because it is close to my office and I can walk there. 4 _________________________________I bought the Xbox One because it was like a gaming console and media center all in one. That's perfect for me because I spend a lot of time gaming and watching movies and TV. It just seemed like a better fit for me than the PS4. 5 ________________________________I forgot to pack a jacket on vacation and the weather was much colder than I anticipated. I ended up buying a Columbia jacket because that was the only brand the hotel gift shop carried.

1. Social 2. Psychological 3. Situational 4. Psychological 5. Situational

EcoAthlete determines that the target market for its running shoes is people who are environmentally conscious. It uses only environmentally friendly materials in the production of its shoes, and packaging is made of exclusively recycled material. Which dimension of market segmentation does EcoAthlete use in determining this target market? a. Lifestyle and behavior b. Geodemography c. Geography d. Demography e. Industry

a. Lifestyle and behavior

The marketing department at Bitty-Baby Store brainstorms with its advertising agency on what type of advertising it should use and where and when ads should be placed in order to make the most impact. Which element of the marketing mix are they considering? a. Promotion b. Distribution c. Pricing d. Production e. Product

a. Promotion

The Chief Marketing Officer of Mattel, one of the largest toy manufacturing companies in the world, has a dilemma. She saw a new doll called "My Friend Cayla" at the International Toy Convention earlier this year. It is currently imported from England, but will be launching in the U.S. soon. She came to realize it will be a mighty threat to Mattel's American Girl series. The American Girl series has been very popular with girls ages 2 -12 for more than 15 years. Part of its appeal is that you can customize each doll's eye color, hair color, freckles, or glasses. Mattel has built an empire around the brand with American Doll stores in many cities; established a line of matching clothing for the dolls and their owners; and offers beauty services for the dolls in their stores or by mail-in. The appeal of American Girl dolls is they evoke experiences that are similar to the challenges and preferences of girls in the target age group. Many parents praise the wholesomeness of the dolls. The U.S. market for dolls in 2016 was $2.88 billion and showed no increase over the previous year. That year's sales for the American Girl line were $88 million; however, this year's sales are down 30% and second quarter results show a continuing slide. With Christmas season coming in just a few months, the Chief Marketing Officer needs a plan of action to offset the possible loss of sales to the new "My Friend Cayla" doll series. "My Friend Cayla" is unlike any other doll on the market. It uses speech-to-text software that syncs with a smartphone or tablet to do an amazing range of activities with the child. It can understand and chat with the child, tell stories, play games, and understand and answer the child's questions. Google's SafeSearch technology prevents transmission of bad words or unsuitable content. The doll's target market is children ages 4 and up. It also has potential to attract boys in the 4 and up age group if the manufacturer decides to produce a brother for Cayla. The Cayla line could also introduce the doll in various ethnicities, which was a successful tactic for Mattel. One pitfall the manufacturer of "My Friend Cayla" needs to avoid is an early sellout of the dolls. When parents can't find the doll their child wants, they are forced to find substitutes. This disappoints the child and frustrates the parent. From the customer's point of view, both dolls fulfill the desire girls have to stretch their imaginations; however, the My Friend Cayla doll also interacts with and educates the child, thus extending and reinforcing the learning component to another dimension. Mattel is the largest toy manufacturer in the world, with more than $4.8 billion in sales per year. So why would they worry about a new competitor? The My Friend Cayla doll is one of the first toys that combines digital functionality with an attractive doll. Toy manufacturers have seen this development coming, and have their own plans to launch similar products. The American Girl line of dolls relies on customization for its strong sales. My Friend Cayla dolls do not offer customization, but are mass-produced in a select number of versions in order to keep manufacturing efficient. From the list below, select the advantage(s) of Mattel's approach: a. Customer orientation allows them to better meet their customer's needs. b. Production orientation allows them to better serve the needs of their customers. c. All raw materials can be bought in mass quantities, as the specifications for the dolls don't change. d. Customer orientation allows them to concentrate on efficiency and cutting costs. e. They are less likely to have production overruns, because the company knows how many dolls to produce based on their customer orientation.

a. Customer orientation allows them to better meet their customer's needs.

Mattel is the largest toy manufacturer in the world, with more than $4.8 billion in sales per year. So why would they worry about a new competitor? The My Friend Cayla doll is one of the first toys that combines digital functionality with an attractive doll. Toy manufacturers have seen this development coming, and have their own plans to launch similar products. Companies work hard to offer a complete marketing mix to satisfy the needs of their customers. Select the statement(s) that relate to the value Mattel provides to their customers with their American Girl line. a. Parents can customize the doll's features like hair color and eye color to match the appearance of their child. b. Mattel opened a chain of American Girl stores so customers can attend a tea party, have their birthday party, take a cooking class, or share a special date with dad. c. The dolls are offered online and in stores nationwide. d. The cost of the American Girl dolls is competitive with other dolls of similar size and similar qualities. e. Mattel sends catalogs of doll clothing and accessories in advance of holidays such as Easter, the 4th of July, Halloween and Christmas so children and the dolls have matching outfits for special occasions.

a. Parents can customize the doll's features like hair color and eye color to match the appearance of their child. b. Mattel opened a chain of American Girl stores so customers can attend a tea party, have their birthday party, take a cooking class, or share a special date with dad. c. The dolls are offered online and in stores nationwide. d. The cost of the American Girl dolls is competitive with other dolls of similar size and similar qualities. e. Mattel sends catalogs of doll clothing and accessories in advance of holidays such as Easter, the 4th of July, Halloween and Christmas so children and the dolls have matching outfits for special occasions

Marketing gurus believe the first-to-market will often win the largest market share- if they get the marketing mix right. It is almost certain Mattel has a doll similar to My Friend Cayla in development and they only have a short timeframe to finalize their marketing plans before the My Friend Cayla doll launches in the U.S. From the statements below, select the tactics that address elements of the marketing mix. a. Sell the digital doll in the American Girl stores, offer it online with Amazon, and stock it in toy stores like Target and Walmart. b. Launch the new doll at least one week before the Cayla doll is available in the U.S. c. Offer customization options (hair color and eye color). d. Sell their doll for 5% less than the Cayla doll.

a. Sell the digital doll in the American Girl stores, offer it online with Amazon, and stock it in toy stores like Target and Walmart. c. Offer customization options (hair color and eye color). d. Sell their doll for 5% less than the Cayla doll.

The marketing team uses the above facts to define the target market for this initial launch as urban mothers in a major city with an annual household income of more than $250,000. Given this target market, which of the following promotions tactics should Mattel use for the introduction of the new doll? Check all that apply. a. Tea Party events with celebrity moms and their daughters at American Doll Stores in Chicago, New York, Seattle, and Los Angeles. b. Full-page ad in local small city newspapers. c. Partner with several hundred Best Buy electronics stores across the country to launch the new product. d. Mail a 10% coupon to households with less than $100,000 in annual income to make the dolls more affordable.

a. Tea Party events with celebrity moms and their daughters at American Doll Stores in Chicago, New York, Seattle, and Los Angeles

In late 2013, Sony successfully launched the PS4 gaming console at roughly the same time Microsoft launched Xbox One.The launch strategy for PS4 began 5 years before launch. According to Jack Tretton (CEO of Sony Computer Entertainment America), "We spent a lot of time talking to consumers. We also spent a lot of time talking with the development community, asking what they wanted." What value did Sony bring to their customers? a. The right product b. The right price c. The right place and time

a. The right product

BMW advertises using television advertisements, direct mail, and billboards. BMW is able to deliver value through which marketing mix element? a. Promotion b. Distribution c. Packaging d. Price e. Product

b. Distribution wrong

Gretchen buys a new pair of jeans at the mall, but after she takes them home and tries them on again, she decides that she doesn't like them after all and decides to return them. Which step of the consumer decision process does this illustrate? a. Searching for information b. Evaluating after the purchase c. Evaluating alternatives d. Purchasing e. Recognizing problem

b. Evaluating after the purchase

Jamie drops her smartphone in the cafeteria and shatters the screen, so she needs to buy a new phone. Which step of the consumer decision process does this illustrate? a. Recognizing problem b. Searching information c. Evaluating after purchase d. Purchasing e. Evaluating alternatives

b. Searching information wrong

Garrett doesn't especially like pizza, but he goes to a pizza restaurant for lunch with his coworkers at least a few times a week because it's where they like to eat and he enjoys their company. Which influence on the consumer decision process does this reflect? a. Psychological b. Social c. Demographic d. Situational e. Socioeconomic

b. Social

The ingredient of the marketing mix concerned with both base prices and various kinds of discounts is: a. distribution. b. pricing. c. product. d. quality. e. promotion

b. pricing.

Over the last year, Francine has become very concerned about eating a healthy diet and avoiding processed foods. Her food purchasing decisions are likely influenced by: a. situational factors. b. psychological factors. c. time. d. social factors. e. her physical surroundings

b. psychological factors.

The Chief Marketing Officer of Mattel, one of the largest toy manufacturing companies in the world, has a dilemma. She saw a new doll called "My Friend Cayla" at the International Toy Convention earlier this year. It is currently imported from England, but will be launching in the U.S. soon. She came to realize it will be a mighty threat to Mattel's American Girl series. The American Girl series has been very popular with girls ages 2 -12 for more than 15 years. Part of its appeal is that you can customize each doll's eye color, hair color, freckles, or glasses. Mattel has built an empire around the brand with American Doll stores in many cities; established a line of matching clothing for the dolls and their owners; and offers beauty services for the dolls in their stores or by mail-in. The appeal of American Girl dolls is they evoke experiences that are similar to the challenges and preferences of girls in the target age group. Many parents praise the wholesomeness of the dolls. The U.S. market for dolls in 2016 was $2.88 billion and showed no increase over the previous year. That year's sales for the American Girl line were $88 million; however, this year's sales are down 30% and second quarter results show a continuing slide. With Christmas season coming in just a few months, the Chief Marketing Officer needs a plan of action to offset the possible loss of sales to the new "My Friend Cayla" doll series. "My Friend Cayla" is unlike any other doll on the market. It uses speech-to-text software that syncs with a smartphone or tablet to do an amazing range of activities with the child. It can understand and chat with the child, tell stories, play games, and understand and answer the child's questions. Google's SafeSearch technology prevents transmission of bad words or unsuitable content. The doll's target market is children ages 4 and up. It also has potential to attract boys in the 4 and up age group if the manufacturer decides to produce a brother for Cayla. The Cayla line could also introduce the doll in various ethnicities, which was a successful tactic for Mattel. One pitfall the manufacturer of "My Friend Cayla" needs to avoid is an early sellout of the dolls. When parents can't find the doll their child wants, they are forced to find substitutes. This disappoints the child and frustrates the parent. From the customer's point of view, both dolls fulfill the desire girls have to stretch their imaginations; however, the My Friend Cayla doll also interacts with and educates the child, thus extending and reinforcing the learning component to another dimension. Mattel is the largest toy manufacturer in the world, with more than $4.8 billion in sales per year. So why would they worry about a new competitor? The My Friend Cayla doll is one of the first toys that combines digital functionality with an attractive doll. Toy manufacturers have seen this development coming, and have their own plans to launch similar products. The launch of the new doll went very well with the initial target market of high-income urban mothers in major cities. Just as Mattel is ready to launch a massive ad campaign to introduce the doll across the country, The Washington Post published an article on the dangers of giving your child "smart toys." The article mentions that Germany has banned the My Friend Cayla doll because of the internal microphone the doll contained. Criminals could not only use the microphone to listen in on children but also speak to children through the doll. In response, the makers of My Friend Cayla have released updates to their smartphone app allowing parents greater control over the toy's capabilities. In addition, the company released a public apology in the United States, taking out full page ads in major market newspapers. Mattel is now concerned that the U.S. government may be looking to ban their doll. Which of the following forces are affecting Mattel's marketing environment. a. Political b. Legal and regulatory c. Competitive d. Sociocultural e. Technological f. Economic Hide Feedback

b. Legal and regulatory c. Competitive e. Technological

In late 2013, Sony successfully launched the PS4 gaming console at roughly the same time Microsoft launched Xbox One.The PS4 was priced at $399, while Xbox One was priced at $499. Sony intended this to be a "consumer friendly" price for gamers. What value did Sony bring to their customers? a. The right product b. The right price c. The right place and time

b. The right price

A home improvement store carries lawn mowers all year long in its stores in Florida, Georgia, and California, but its stores in northern states carry lawn mowers only during the spring and summer. Which dimension of market segmentation does this illustrate? a. Psychographic b. Socioeconomic c. Demographic d. Lifestyle and Behavior e. Geographic

c. Demographic wrong

Almost immediately after he bought his car, Jeremy is regretting his decision. He's finding fault with every aspect of the car, from the way it looks to the way it handles and the gas mileage the car gets. Which stage of the buying decision process does this represent? a. Purchasing b. Searching for information c. Evaluating after purchase d. Evaluating alternatives e. Recognizing the problem

c. Evaluating after purchase

The Lincoln Motor Company places an advertisement for its 2017 Lincoln MKZ in Forbes and Inc. magazines as well as television spots featuring actor Matthew McConaughey. The vehicle is priced starting at $35,000 and is available at Lincoln dealerships nationwide. Which of the following dimensions is Lincoln likely using to segment the market? a. Product usage b. Family size c. Income and social class d. Ethnicity e. Religion

c. Income and social class

When determining the most appropriate marketing mix to reach its target market, a company should consider all of the following except: a. Are our competitors currently serving this target group? b. Will our distribution strategies get our product to our target group? c. Is our pricing appropriate for our target group? d. Does the product fit our target group's values, attitudes and motivations? e. Will our promotion strategies reach our target group?

c. Is our pricing appropriate for our target group? wrong

In late 2013, Sony successfully launched the PS4 gaming console at roughly the same time Microsoft launched Xbox One.One million people were able to buy PS4 within the first four hours of availability, either by purchasing online or at a local retailer. What value did Sony bring to their customers? a. The right product b. The right price c. The right place and time

c. The right place and time

Which element of the promotional mix would address decisions about brand name, packaging, and warranties? a. Production b. Distribution c. Promotion d. Product e. Price

d. Product

After narrowing his college choices to just a few, Paulo decides to visit each campus and meet with the admissions representative to see if the college feels like a fit. Which step of the consumer decision process does this reflect? a. Evaluating alternatives b. Recognizing problem c. Purchasing d. Searching for information e. Evaluating after purchase

d. Searching for information wrong

As part of the consumer buying decision-making process, Wanda ___________ by reading through product reviews on Amazon's website once she has narrowed her options to four choices. a. searches for information b. purchases the product c. recognizes the problem d. evaluates alternatives e. evaluates after purchase

d. evaluates alternatives

When Target determines how many warehouses it needs to build and operate, it is addressing the _____ element of the marketing mix. a. product b. storage c. promotion d. price e. distribution

e. distribution

While Manny was looking to put hardwood floors in his kitchen, he read all about the different types of hardwoods and the difference between engineered and solid hardwood. He ended up going with bamboo as it is a sustainable in that it grows to useful size in just three to seven years. Manny's decision was likely based on: a. family influences. b. situational influences. c. physical surroundings. d. social influences. e. psychological influences.

e. psychological influences.

A market segment toward which a company directs its marketing effort is called a: a. marketing group. b. marketing median. c. marketing sample. d. consumer market. e. target market.

e. target market.

Mary Beth is a high school student. All of her friends buy their jeans from Express, so she decides to buy Express jeans even though Levis fit her better. Mary Beth's purchasing decision is most influenced by _____ factors. a. situational b. psychological c. personality d. demographic e. social

e. social

For every pair of shoes purchased, TOMS donates a pair to someone in need. The TOMS website and promotional materials all feature this "one for one" philosophy. TOMS is segmenting the shoe market on a ______ basis. a. income b. geographic c. demographic d. brand loyalty e. values

e. values