Exam 2 Marketing

profiling by geography, psychology and demographics

A marketing manager using the database called PRIZM is interested in _____ segmentation.

without physical form

A service is a product in a sense that it represents a bundle of benefits that can satisfy customer wants and needs, yet it does so

psychographic segmentation

Another approach to segmenting consumer markets is through _____, which relies on consumer variables such as personality and AIOs (activities, interests, and opinions) to segment a market.

sensitivity of population

Approaches to geographic segmentation include all except

not consistent

The speed at which products within a category move through the PLC is

customer

The ultimate goal of CRM is maximizing performance on the _________ side of the enterprise.

would rather not purchase at all

There is a category of goods called unsought goods. These goods are characterized as being the kinds of things that consumers

how clicks are measured

Touchpoints or Points of Contact are

Product enhancement

When a company creates a product that extends, enhances and encourages the customer beyond delivering its core, this concept is called

It involves understanding the marketing mix approach necessary to change present consumer perceptions of the product

Which of the following statements is true of repositioning

category extension

A company can use its brand to expand into new product types. This is known as a

psychographic segmentation

A marketing manager using VALS is interested in

A good idea is prematurely eliminated during the screening process

A stop-to-market mistake happens when

brand

A(n) _____ is defined by the American Marketing Association as a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or groups of sellers and to differentiate them from those of competitors.

usage

Advertisements with messages like "Orange juice It's not just for breakfast anymore!" or "Soup can be a delicious way to start a cold winter's day" are using _____ segmentation.

lumping older customers into one group is an approach that fails to consider the vast differences in other important variables

Age is a commonly used method of segmentation. Age alone, however, may be dangerous because

Get a person from one place to another

An example of an "essential benefit" of a plane ticket is

Offering an effective and efficient methodology for categorizing products

Because Sony has so many different product offerings in various types of electronics, management has found that it is helpful to use brands to keep track of products in each type. Thus, it has different brand names for its televisions, DVD players, and portable music players. Which of the following brand roles does this example illustrate?

perceived quality

Because of its reputation for excellent flavor and increasing energy, NRG Beverages is able to charge a price premium for its products. Which of the following dimensions of brand equity does this example illustrate?

All of the above

CRM is

core product

Companies translate the essential benefit into physical, tangible elements known as the

licensing

Offering other manufacturers the right to use the brand in exchange for a set fee or percentage of sales is known as

Failure to overcome poorly designed products

Over the years Athena Footwear had developed a reputation as a manufacturer of moderately priced high-quality footwear. Recently it decided to introduce a low-price line of shoes; however, the new line suffered from poor performance and durability. Because of these problems, the sales of the new line were poor despite the aggressive branding strategy and the value of Athena Footwear's brand dropped significantly. Which of the following limitations of branding does this example illustrate?

national branding

RB Soaps, the market leader in body wash, sells its products around the country under the same brand. This is an example of

all of the above

Clothes, furniture, and major appliances are called shopping goods. This category of good implies that

undifferentiated target marketing

Companies sometimes pick a one-market strategy. This marketing approach is called

segments

Company ABC operates a nail salon that specializes in artificial nails. It has two primary _____, women who get their nails done infrequently (i.e., once or twice per year), and women who continuously wear fake nails.

brand loyalty

Courtney always prefers Coca-Cola products. She does not consider other beverages, even when they are cheaper than Coca-Cola. Which of the following benefits of brand equity for customers does this exemplify?

The degree to which an individual will resist switching from one offering to another

Customer loyalty is defined as _

The level of liking an individual harbors for an offering

Customer satisfaction is defined as

Perceived quality

Dan s Pasta has developed a strong brand name in the dry pasta marketplace based on its texture and taste. Through its strong brand, Dan s Pasta was able to introduce a successful line of sauces under the same brand name. Which of the following dimensions of brand equity does this example illustrate?

category

Dell used its brand to expand into new areas including printers and consumer electronics such as LCD and plasma televisions. Dell engaged in a _____ extension.

it is relatively easy to measure the variables used in this approach to segmentation

Demographic segmentation is one of the most popular segmentation approaches because

disruptive innovations

Desktop computers, cell phones, and PDAs are examples of new-to-the-world products considered

developing different value offerings for different targeted markets

Differentiated target marketing means

all of the above

Durable products refer to products with a longer product life and are often more expensive. Durable products can be described as _

introductory stage

Early adopters and innovators are the primary purchasers in the __________ stage of the product life cycle

perceived quality

Even though a national brand pain reliever and a store brand pain reliever both contain the same amount of ibuprofen per capsule and are both gel coated, Joan chooses to purchase the national brand because she thinks it will work better based on the brand name alone. Which dimension of brand equity does this example illustrate?

educational segmentation

Everything else being equal, _____ might lead a firm to offer its products based on some anticipated future payoff from the consumer.

one-to-one marketing

Firms that develop such close relationships with customers that they seem to deliver customized goods and services are engaged in _____ marketing.

perceived quality

Fred bought a bicycle from a well-known brand without even considering the other equally good, unbranded bicycles. This shows the advantage that branded products have over unbranded ones in terms of

customer lifetime value

Garrett is moving into retirement and wants to cut his client base in half so he can work part time. In deciding which customers to keep, Garrett should look at the monetary prediction called

Brand loyalty

Gino always purchases clothing made by S&G Clothing. He tells others about how much he likes their clothes and the high levels of quality maintained by S&G. When a shirt he purchased turned out to be defective, instead of switching to another clothing company, he gave S&G a chance to fix the problem and still shops there. Which dimension of brand equity does Gino demonstrate?

under-positioning

HerboCare, a company that sells herbal soaps, has failed to increase its sales, as the consumers could not understand how soaps made by HerboCare were different or better than other herbal soaps available in the market. In this scenario, HerboCare is suffering from the positioning error o

line

International Delight coffee creamers frequently adds new flavors to its product offerings. This would be an example of a _____ extension.

brand association

James has been to Farm Fresh Ice Cream Shops several times. Being a loyal customer, he has developed certain emotional and psychological connections with the brand. For instance, he links the brand with higher levels of customer service. Which dimension of brand equity does this example illustrate?

brand assets

KFC is very protective of its "Seven Herbs and Spices" recipe, which, in the view of the company, gives it a significant competitive advantage over other restaurants, and will use any legal resource available to protect its patented formula. Which dimension of brand equity does this example illustrate?

generation x

Katherine was born in 1970. Her parents met at the famous Woodstock music festival. She is most likely to be a member of which of the following generational group?

ncremental changes to existing products

Many times customers provide ideas to salespeople, customer service representatives, and other direct customer contact people in the firm. These type of inside people and customers generally good at generating ideas that are

there is evidence that consumers respond differently to marketing strategies and programs based on where they live

Marketers use geographic segmentation when

Communication

Mrs. Butterworth's syrup comes in a bottle shaped like a woman. The intent of this type of packaging is to transfer critical brand messages quickly through design cues since many competitor syrup brands come in teardrop-shaped bottles. The unique shape of the Mrs. Butterworth's bottle fulfills which objective of packaging?

Have not been available before their introduction to the market

New-to-the-world products are products that

joint venture

Nickelodeon and Marriott partnered to create a kid-friendly chain of vacation-oriented hotels. Which of the following types of co-branding relationships does this exemplify?

over overpositioning

NovoTech Inc. is a popular manufacturer of PCs, and most of its revenue is generated by selling PCs to the consumers. However, the company is struggling to extend the brand into other lucrative product lines such as tablets and smartphones. In this scenario, NovoTech is suffering from the error of:

positioning

Once market segments have been defined and analyzed and target markets have been selected for development, the firm must turn its attention to creating, communicating, delivering, and exchanging offerings that have value to the target markets. This process is known as

Coupons and contests campaigns

One way to stimulate trial in the market for a new product in the consumer goods market is to use

focus groups

Positioning strategy is a process that often starts with _____ in order to identify key (determinant) attributes.

expected level of ROI derived from the market

Primary target markets differ from secondary and tertiary target markets by the

Combining two of a company s own products

Procter & Gamble co-branded its Tide detergent and Downy fabric softener to create Tide Simple Pleasures and Downy Simple Pleasures in the U.S. market. In England, the company co-branded its Bold and Lenor detergents, creating a premium brand called Bold Infusions and Lenor Infusions. Which of the following types of co-branding relationships does this exemplify?

more features and better design

Products introduced in the growth stage tend to have

convenience goods

Products that consumers purchase that are relatively low-cost, purchased frequently and lacking some amount of interest by the customer are called

perceived quality

Since Maytag s appliances have earned a reputation as being reliable and durable, John decided to buy a new Maytag washing machine, and was willing to buy it, despite being expensive compared to other brands. Which dimension of brand equity does this example illustrate?

Are sought out by customers who are willing to search to find this particular kind of product

Specialty goods hold a unique place in the hierarchy of product classifications in that they

the entire customer experience

Successful marketing strategy builds quality into

The physical aspect of a product

Tangibility refers to

Bringing multiple companies together to form a new branded product

The Symbian operating system came about from the co-branding effort of Nokia, Ericsson, Sony, Panasonic, Siemens, and Samsung. They license Symbian to a number of wireless manufacturers including LG and Fujitsu. Which of the following types of co-branding relationships does this exemplify?

perceptual map

The data generated from positioning analysis can be used to develop a useful visual tool called a _____, which displays paired attributes to compare consumer perceptions of each competitor's delivery against those attributes.

segments

The differences in buyers according to how they use products, the needs and preferences that the products satisfy, and their consumption patterns create market

two-thirds

The early and late majority make up _________ of all adopters of a product

Awareness leading to trial purchase

The essential marketing objective in the introductory stage of the PLC is to build

the pioneer

The first company to introduce a new product and create a new product category is called

Growth but at a rate lower than the growth stage

The first phase of the maturity stage of the PLC is characterized as having

risk of failure

The greater the ___________, the more market testing a company will want to do before a full product launch.

brand awareness

The most basic form of brand equity is

Helping reassure the customer in the purchase decision

The owner of Santos Lawn Service is looking to buy a new lawn tractor, a major purchase and significant financial investment. The owner decides to purchase a Dixie Chopper because of its reputation for dependability and excellent customer service. He felt more secure and less anxious about choosing this product. Which of the following brand roles does this scenario exemplify?

Early majority

The primary type of adopters that enter the market in the growth stage can be characterized as

targeting

The purpose of _____ is to select the people (or organizations) that management wishes to serve in the product-market.

geographic segmentation

The region, the density of the population, and the size of the population are various approaches to use in

brand connections

When Maria purchases laundry detergent she is able to easily recall and process information about Tide, but not the other brands. Which benefit of brand equity for customers does this exemplify?

Offering legal protection for a product

When a competitor used its logo in a disparaging way in an advertisement, Max Corp. sued. It won the suit on the basis that the competitor violated its trademark. Which of the following brand roles does this scenario exemplify?

Inseparability

When a product is produced and consumed at the same time and cannot be separated from its provider, it is called

conveying information about a product

When customers see the logo of McDougal's restaurant, they think of food served quickly in a clean, family-friendly environment. Which of the following brand roles does this exemplify?

Brand-loyal customers are forgiving, which enables companies to respond to a negative experience.

Which of the following is a benefit of brand loyalty to the brand sponsor?

Brands offer an effective and efficient methodology for categorizing products.

Which of the following reflects a company s brand role?

Brands convey information about a product.

Which of the following reflects a customer brand role?

toothpaste

Which of the following would NOT be a good product for using gender segmentation?

brand connections

Z brand is the market leader in small appliances. Its brand is also the strongest in the category and customers identify with the brand. Because of the strength of its brand, other competitors are finding it difficult to successfully enter the marketplace. Which of the following benefits of brand equity for brand sponsors does this exemplify?

national

____ brands enable manufacturers to leverage marketing resources by creating efficiencies in marketing communications and distribution.

market segments

are described by different characteristics of customers, the reasons that they buy or use certain products, and their preferences for certain brands of products.

behavioral segmentation

divides customers into groups according to similarities in benefits sought or product usage patterns.

Customer relationship management

is a cross-functional core business process that is specifically concerned with achieving improved shareholder value through the development of effective affiliations with key customers and customer segments.

positioning strategy

is the combination of the product, value chain, price, and promotion strategies a firm uses to place itself against its key competitors in meeting the needs and wants of the buyers in the market target.

knowledge discovery

is the first element in the process cycle for CRM.

Market segmentation

is the process of identifying and analyzing sub-groups of buyers in a product-market with similar response characteristics

marketing planning

is the second element in the process cycle for CRM.

customer interaction

is the third element in the process cycle for CRM.

product differentiation

occurs when two competing goods are seen as varying on any physical or nonphysical characteristics, including price.

occupational segmentation

recognizes that there may be a number of consistent needs and wants demonstrated by consumers based on what type of job they have.

Consumers who buy at the introduction stage of the product life cycle

Innovators and early adopters are

co-branding

Costco and American Express joined together to offer a Costco-American Express card that allows users to get rebates on their purchases at Costco while expanding the reach of American Express to Costco members. This is an example of