Intro to marketing Test 1 review (chpt. 1-5)
market segment
A group of consumers who respond similarly to a firm's marketing efforts.
customer excellence
Involves a focus on retaining loyal customers and excellent customer service.
provides a detailed, multipronged "Statement of Ethics" that can serve as a foundation for marketers
The American Marketing Association, The American Marketing Association (AMA) provides a detailed, multipronged "Statement of Ethics" that can serve as a foundation for marketers, emphasizing that "As marketers . . . we not only serve our organizations but also act as stewards of society in creating, facilitating and executing the transactions that are part of the greater economy."
target marketing (or targeting)
The process of evaluating the attractiveness of various segments and then deciding which to pursue as a market.
The Bedford County School Board is concerned about deteriorating school facilities, combined with a shrinking budget. The board began by studying the issue, and then identified parents, children, teachers, staff, and taxpayers as groups who have a vested interest in the problem. The school board has listened to each group's concerns. In the ethical decision-making framework, its next action should be to
engage in brainstorming alternatives, The school board has completed the first two steps of the ethical decision-making framework. The third step is to assemble the stakeholders to brainstorm for alternatives.
Matthew has been asked to approve a marketing campaign that, although it is not illegal, promotes food products to children. He is concerned that the food products are not particularly nutritious, although they are not as bad for children as some others sold by competitors. By using the ethical decision-making metric, Matthew will
evaluate the alternative using a series of questions, If Matthew has concerns arising out of his personal ethics, he needs to pause and ask more questions before making a go/no-go decision.
what is an idea
look twice motorcycles have a life riding on them, Intellectual concepts—thoughts, opinions, and philosophies.
What type of analysis does management use to evaluate the firm's various products and businesses and allocate resources according to which products are expected to be the most profitable for the firm in the future?
portfolio analysis
The basic difference between a good and a service is that a good
can be physically touched.
During the ________ era, manufacturers and retailers recognized they needed to give their customers greater value than their competitors did.
value-based marketing
New real estate disclosure regulations require sellers and their agents to tell prospective buyers about any existing problems with the property. Previously, they were expected only to answer buyers' questions. The new regulation addressed the marketing ethics problem of
withholding information, Withholding or destroying information that could hurt a company's sales or image is considered unethical.
what is marketing mix?
Price, Product, Place, Promotion
what is value
Reflects the relationship of benefits to costs, or what the consumer gets for what he or she gives.
Marketing
1) affects various stakeholders 2)satisfying the consumer wants and need 3)entails an exchange 4) creates value through product, price, place, and promotion 5) can be preformed by a individuals or firms
Marketers must determine the price of a product carefully, based on potential buyers' beliefs about
its value.
To build relationships, firms focus on the ________ of the relationship, not how much money is made during each transaction.
lifetime profitability
Marketing traditionally has been divided into a set of four interrelated decisions and consequent actions known as the
marketing mix.
Using the BCG portfolio analysis, a "dog" should be phased out unless
it complements or boosts the sales of another product.
When Walmart issued new standards for livestock products that were raised on food without antibiotics or artificial growth hormones, it considered multiple ________, including the ranchers that supply the food, its customers, and animal welfare groups.
stakeholders, When Walmart issued new standards for livestock products that were raised on food without antibiotics or artificial growth hormones, it considered multiple stakeholders including the ranchers that supply the food, its customers, and animal welfare groups.
segmentation, targeting, and positioning (STP)
Firms use these processes to identify and evaluate opportunities for increasing sales and profits.
operational excellence
Involves a firm's focus on efficient operations, excellent supply chain management, and strong relationships with its suppliers.
product excellence
Involves a focus on achieving high-quality products; effective branding and positioning is key.
what is a good
Items that can be physically touched.
Which of the following is true with regard to mobile advertising?
Within just a couple of years, mobile advertising will be a bigger market than digital advertising.
For corporate leaders, their firm's ability to ________ must be of paramount importance.
balance shareholder interests with the needs of society, For corporate leaders, their firm's ability to balance the needs of various stakeholders—while building and maintaining consumer trust by conducting ethical, transparent, clear transactions that have a positive impact on society and the environment—must be of paramount importance.
The principle that decisions be ethically based is part of the concept of
conscious marketing, Conscious marketing entails a sense of purpose for the firm that is higher than simply making a profit by selling products and services. It encompasses four overriding principles, one of which is the understanding that decisions be ethically based.
During the ________ phase of the strategic marketing planning process, marketers utilize systems to check whether each conscious marketing issue raised in earlier phases was addressed.
control, The firm assesses its performance regarding ethics during the control phase.
For every consumer who purchases a pair of TOMS shoes, the company promises that a needy child will receive a pair of shoes. TOMS shoes is actively engaging in
corporate social responsibility, TOMS shoes is engaged in corporate social responsibility by making shoes available to children in need.
Town Bank prides itself on offering better service than any of its competitors. If this is accurate, and if customers recognize and value Town Bank's superior service, the bank creates and delivers value through
customer excellence
When Maria, the keynote speaker at a major business leaders' conference, arrived in the middle of the night at the Ritz-Carlton, she was exhausted, and her suit was wrinkled from her 10-hour plane trip. The night clerk found someone to dry clean Maria's suit and have it ready for her morning presentation. She has been a loyal Ritz-Carlton customer ever since. In this example, Ritz-Carlton demonstrated the macro strategy of
customer excellence.
Audi's mission statement addresses urbanization, the need to work on traffic flows and safety in urban areas. To that end, Audi is working with Airbus to develop the Pop.Up Next driving and flying transport system that will enable vertical individual mobility. The strategic planners are engaged in
defining the business mission.
what is a marketing plan
description of specific actions and resources that are necessary to achieve a company's marketing objectives.
Sodexo is a corporation that manages school cafeterias, university dining halls, mess halls at military bases, concession stands at sports arenas, and other large-scale food service facilities. If Sodexo were to begin to sell individual frozen meals in supermarkets, it would be pursuing a ________ growth strategy.
diversification
By promoting jeans based on youth, style, and quality, Levi's is attempting to
increase the perceived value of its products.
Hunter Corporation's mission statement
is a broad description of a firm's objectives and the scope of activities it plans to undertake.
Woods, Inc. is a small, local heating and air conditioning business. The local military base is a potential source of growth, and Woods already installs and services the type of equipment the military would require, but it is difficult to get established as a certified government contractor. Woods is considering a ________ growth strategy.
market development
Which of the following growth strategies employs the existing marketing mix and focuses the firm's efforts on existing customers?
market penetration
Which of the following is one of the four major growth strategies marketers typically utilize?
market penetration
The primary purpose of the ________ plan is to specify the marketing activities for a specific period of time.
marketing
Marketers that include ethical policies and standards in the firm's mission or vision statements are introducing these concepts at which stage of the strategic marketing planning process?
planning phase, During the planning phase, marketers will decide what level of commitment to its ethical policies and standards it is willing to declare publicly. It is during this phase that ethical statements in the firm's mission or vision statements can be incorporated.
When a sweatshirt manufacturer states, "We sell it only in gray because that way we can buy plenty of gray fabric and run our plant efficiently," its statement reflects the views that were popular in which era of the evolution of marketing?
production-oriented
The publisher of the well-known Winnie-the-Pooh series wants to celebrate the 100th anniversary of the series, initiating a $200,000 campaign. This initiative represents the ________ component in the four Ps.
promotion
Marketing has traditionally been divided into a set of four interrelated decisions known as the marketing mix, or four Ps, including product, place, price, and
promotion.
Red Robin suggests that its diners check in to its locations using their phones. This demonstrates the use of ________ to market a product.
social media
When positioning products relative to competitors' offerings, firms typically are most successful when they focus on opportunities
that build on their strengths relative to those of their competition.
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
In most companies, portfolio management is typically done at the SBU or ________ level of the firm.
product line
Suppose your university made a sizable investment in its career services—additional counselors, increased efforts to bring in recruiters, and other services aimed at helping students find jobs. This investment would enhance the university's ________ in an attempt to create value for students and recent graduates.
product value
Dana has just started with a travel agency, and she has been offering clients and prospective clients a range of packaged tours. She is concerned because the commissions she is earning on her sales are lower than she had hoped. Her colleague Scott, who has been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Scott's approach is based on
value cocreation.
What type of marketers constantly measure the benefits that customers perceive against the cost of their offerings?
value-oriented marketers
market penetration strategy
A growth strategy that employs the existing marketing mix and focuses on the firm's efforts on existing customers.
market development strategy
A growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international.
product development strategy
A growth strategy that offers a new product or service to a firm's current target market.
diversification strategy
A growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve.
unrelated diversification
A growth strategy whereby a new business lacks any common elements with the present business
related diversification
A growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity.
relative market share
A measure of the product's strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry.
metric
A measuring system that quantifies a trend, dynamic, or characteristic.
locational excellence
A method of achieving excellence by having a strong physical location and/or Internet presence.
relational orientation
A method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship.
SWOT analysis
A method of conducting a situation analysis within a marketing plan in which both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats are examined.
Which of the following descriptions embodies conscious marketing principles?
both ethically and socially responsible, A firm that embodies conscious marketing is both socially and ethically responsible.
mission statement
A broad description of a firm's objectives and the scope of activities it plans to undertake; attempts to answer two main questions: What type of business is it? What does it need to do to accomplish its goals and objectives?
market share
Percentage of a market accounted for by a specific entity.
Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity?
Recent consumer studies have indicated that Chinese consumers prefer American cars.
social listening
Refers to how firms monitor and track what people are saying about them on social media.
integrated marketing communications (IMC)
Represents the promotion dimension of the four Ps; encompasses a variety of communication disciplines—general advertising, personal selling, sales promotion, public relations, direct marketing, and electronic media—in combination to provide clarity, consistency, and maximum communicative impact.
situation analysis
Second step in a marketing plan; uses a SWOT analysis that assesses both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats.
market growth rate
The annual rate of growth of the specific market in which the product competes.
The definition of corporate social responsibility addresses
environmental impact, Although there are many and varied definitions of corporate social responsibility (CSR), firms generally acknowledge that, in addition to economic and legal duties, they have responsibilities to society. These responsibilities are not mandated by any law or regulation but instead are associated with the demands, expectations, requirements, and desires of various stakeholders. For example, one definition describes CSR as context-specific actions and policies, taking stakeholders' expectations into account, to achieve what is referred to as the triple bottom line: economic, social, and environmental performance.
Firms achieve ________ through efficient procedures and excellent supply chain management.
operational excellence
Value-oriented marketers constantly measure
perceived customer benefits against the costs of their offerings.
Effective promotion enhances a product or service's
perceived value.
customer relationship management (CRM)
A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers.
marketing strategy
A firm's target market, marketing mix, and method of obtaining a sustainable competitive advantage.
marketing plan
A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements.
what is a service?
Any intangible offering that involves a deed, performance, or effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer.
sustainable competitive advantage
Something the firm can persistently do better than its competitors.
Which test asks the question, "Would I like to be on the receiving end of this action and all its potential consequences?" Multiple Choice
The Golden Rule Test, The Golden Rule test asks the question, "Would I like to be on the receiving end of this action and all its potential consequences?"
control phase
The part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions.
planning phase
The part of the strategic marketing planning process when marketing executives, in conjunction with other top managers (1) define the mission or vision of the business and (2) evaluate the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success.
implementation phase
The part of the strategic marketing planning process when marketing managers (1) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning (see also segmentation, targeting, and positioning) and (2) implement the marketing mix using the four Ps.
market positioning
The process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.
market segmentation
The process of dividing the market into groups of customers with different needs, wants, or characteristics—who therefore might appreciate products or services geared especially for them.
To avoid having ethical situations become problematic for a firm, the short-term goals of each employee must
be aligned with the long-term goals of the firm, To avoid unethical situations causing problems for a firm, it is important that the short-term goals of each employee be aligned with the long-term goals of the firm.
Cookie Cutter, a firm that manufactures high-end mixers, donates $10 per mixer sold to a local food bank. This is a form of
corporate social responsibility, When companies embrace CSR, they appeal not only to their shareholders, but also to their primary stakeholders—including their own employees, consumers, the marketplace, and society at large. In this case, the company would be supporting a charity that helps society at large.
Disney's My Magic system, which enables visitors to swipe their Magic Band wristbands to get on rides, make purchases, and open their hotel room door, is an example of ________ excellence.
customer
Walmart donates more than $1 billion in cash and in-kind items to charitable causes every year. This form of social responsibility most directly impacts
customers, This most directly impacts customers, although if it increases sales of the products it could impact shareholders down the road.
Charges that firms are using "sweatshop" labor to produce their products are likely to occur during the ________ phase of the strategic marketing planning process.
implementation, In the implementation phase of the marketing strategy, when firms are identifying potential markets and ways to deliver the four Ps to them, firms must consider several pertinent issues. Sometimes a firm's choice of target market and how it pursues it can lead to charges of unethical behavior.
Which of the following statements regarding conscious marketing is correct?
it recognizes that business is a subset of society, and that society is a subset of the planet, Conscious marketing recognizes that business is a subset of society, and that society is a subset of the planet. The other statements reflect corporate social responsibility.
Value creation through place decisions for a consumer product involves
making sure the product is available in the stores where customers will want to find it, and that it is always in stock so they can buy it when they want to.
Many marketing students initially overlook the importance of marketing channel management because
many of these activities take place behind the scenes.
When making decisions, managers often have to decide between doing what is beneficial for themselves (and possibly the firm) in the short run and doing what is right and beneficial for the firm and for society in the long run. To address this conflict, a firm
must align the short-term goals of each employee with the long-term, overriding goals of the firm, To avoid potentially unethical behaviors, conscious marketing seeks to align the short-term goals of each employee with the long-term, overriding goals of the firm.
Vikram opened a shoe store and signed a lease on the property. He also signed an agreement with the manufacturer on the amount of merchandise he will sell and the promotions he will conduct. Based on this description, which aspect of the marketing mix does he still need to work on?
price
The four overarching strategies to create and deliver value and to develop sustainable competitive advantages include locational, customer, operational and _______ excellence.
product
Which element of the marketing mix is most relevant to the activity "creating value"?
product
Jacob was thrilled to find out that his company had just decided to invest a great deal of money in the product he was managing. He knows that even with its recent high rate of growth and the fact that it dominates its market, he would need more money to establish it firmly. Using the BCG portfolio analysis, his product would be classified as a(n)
star.
As part of her company's SWOT analysis, Selima is assessing the company's internal environment, including
strengths and weaknesses.
When Walmart pressured its vendors to supply it with environmentally friendly merchandise with labels to prove it, this effort most relates to the concept of
sustainability, This is an example of sustainability. According to the U.S. Environmental Protection Agency, "Sustainability is based on a simple principle: Everything that we need for our survival and well-being depends, either directly or indirectly, on our natural environment." Therefore, sustainable actions, including sustainable marketing, allow "humans and nature [to] exist in productive harmony, that permit fulfilling the social, economic and other requirements of present and future generations."
Even though they operate on a limited schedule and offer few extra services, discount, no-frill airlines like Allegiant have been successful. Consumers obviously consider
the benefit of lower prices to be greater than the cost of reduced services and less convenience.