Marketing 295 Midterm Exam

Steps of the marketing process

1. Understand the marketplace and customer needs and wants 2. Design a customer-driven marketing strategy 3. Deliver high customer value 4. Grow profitable customer relations 5. Capture value from customers

You've emailed a customer satisfaction survey to 20,000 customers and received 1,825 responses. Of those 1,825 responses, the ratings came back as: • 500 very satisfied • 300 satisfied • 1,025 neutral or dissatisfied or very dissatisfied What is the customer satisfaction score? a. 44 percent b. 27 percent c. 9 percent d. 11 percent

44 percent

Internal environment

5M framework, organizational culture

Concentrated marketing

A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches

What is a perceptual map, and how is it used? a. A perceptual map indicates the relative strength of competitors in the market segment. b. A perceptual map indicates the relative market share and market growth of a product portfolio. c. A perceptual map illustrates product positioning vis-à-vis the competitors. d. A perceptual map displays the product, pricing, promotion, and distribution strategy of the product or service.

A perceptual map illustrates product positioning vis-à-vis the competitors.

What is CRM?

A system with which a company can manage information regarding leads, prospects and customers.

Which of the following best describes a gap analysis? a. A statement that answers the question, Where do we see the business going? b. An internal analysis of the company to identify inherent deficiencies that may hinder its ability to meet its goals c. A statement that answers the question, Why does the business exist? d. A strategic plan created for a single business or operating unit

An internal analysis of the company to identify inherent deficiencies that may hinder its ability to meet its goals

Which of the following strategies covers the entire organization when the business includes multiple divisions or operating units? a. Functional strategy b. Strategic business unit strategy c. Corporate-level strategy d. Business-level strategy

Corporate-level strategy

What do you call the process of managing customer information in order to maximize brand loyalty? a. Marketing b. Customer relationship management c. Consumer retention management d. Branding

Customer relationship management

Strategic Planning Process

Define the vision statement Establish the mission statement Perform a gap analysis Establish objectives and goals Monitor progress

What is a heuristic? a. It is the mental conflict that occurs when a person's behaviors and beliefs do not align. b. It is a mental shortcut that allows people to solve problems and make judgments more quickly and efficiently. c. It is a function of the closeness between your expectations of a product or service and its actual performance. d. It is the process of assigning the cause of behavior to either internal or external characteristics.

It is a mental shortcut that allows people to solve problems and make judgments more quickly and efficiently

Which of the following provides the most complete definition of marketing? a. Marketing creates value. b. Marketing is made up of every process involved in moving a product or service from your organization to the consumer. c. Marketing includes distribution decisions. d. Marketing is about building relationships.

Marketing is made up of every process involved in moving a product or service from your organization to the consumer.

The exchange process

Marketing transaction in which the buyer provides something of value to the seller in return for goods and services that meet that buyer's needs or wants

5Ms of marketing

Minds Minutes Machinery Materials Money

Which of the following best describes a satisfactory exchange process? a. One that allows the seller to incur the highest profit possible b. One that allows the buyer to pay the lowest price possible c. One that fairly addresses the needs of both the seller and buyer d. One that is most convenient without regard for either the seller or buyer

One that fairly addresses the needs of both the seller and buyer

In which section of the marketing plan would you identify key internal and external influences on the company's current position? a. Objectives and issues b. SWOT analysis c. Buyer personas d. Current marketing situation

SWOT analysis

What are key performance indicators (KPIs)? a. Industry economic forecasts gathered during external analysis b. A collection of all the detailed statistics we can find regarding firm performance c. A competitive analysis that allows a company to understand the strategic direction of competitors d. Specific variables that allow us to monitor the health/performance of the organization

Specific variables that allow us to monitor the health/performance of the organization

SMART goals

Specific, Measurable, Attainable, Realistic, Time-bound

Business portfolio

Total group of product lines, services, and business units that the company possesses.

Undifferentiated marketing

a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer

Differentiated marketing

a market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each

Garnier offers a wide range of shampoos, including hydrating shampoo, smoothing shampoo, color-safe shampoo, volumizing shampoo, and more. On what basis has Garnier segmented the market? a. Geographic b. Psychographic c. Behavioral d. Demographic

behavioral

Attitudes are a composite of a consumer's beliefs, feelings about, and ________ toward a product or service. a. predispositions b. behavioral intentions c. preconceived notions d. attributions

behavioral intentions

At which step in the marketing process would the lifetime values to a company's customers be considered? a. Developing a customer-driven marketing strategy b. Delivering high customer value c. Growing profitable customer relations d. Capturing value from customers

capturing value from customers

Hoffman Enterprises has a portfolio of businesses in a wide variety of unrelated industries. One of its strategic business units (SBUs) has high market share in a low-growth industry. How would this SBU be characterized in terms of the BCG matrix? a. Star b. Dog c. Cash cow d. Question mark

cash cow

Which type of customer relationship management (CRM) system would pool data from outside companies and organizations in order to create even better experiences for their customers? a. Customer loyalty programs b. Operational CRM c. Analytical CRM d. Collaborative CRM

collaborative crm

You're considering buying a widescreen TV. You've researched different features, looked up and reviewed models on the Internet, and even asked a few friends for their recommendations. What type of buying behavior are you exhibiting? a. Dissonance-reducing buying behavior b. Variety-seeking buying behavior c. Complex buying behavior d. Habitual buying behavior

complex buying behavior

Organizational culture

comprised of the shared values, attitudes, expectations, norms, and practices that guide the actions of all within the company

The decisions and actions people undertake to buy products or services for personal use are known as ________. a. the consumer market b. the buyer's black box c. consumer buying behavior d. complex buying behavior

consumer buying behavior

Sales concept

consumers and businesses need to be "coaxed" into buying, and the aim of companies was to sell what they made rather than make what consumers wanted.

How frequently should we monitor KPIs? a. Continuously b. Monthly when the financial statements are produced c. Annually when the yearly financial statements are produced d. When things just don't "feel" quite right

continuously

Internal environment is ____

controllable

Traditionally, in China, the bride's wedding gown is red because the color is associated with good luck, happiness, and prosperity. Which influence on consumer buying behavior does this illustrate? a. Culture b. Social class c. Lifestyle d. Personality

culture

In which section of the marketing plan would you include a competitive analysis and discussion of the company's top competitors? a. Positioning b. Target market c. Mission statement d. Current marketing situation

current marketing situation

The total potential profits a company earns from its current and potential customers is known as ________. a. customer equity b. the value proposition c. customer value d. the marketing process

customer equity

An ongoing positive relationship between a customer and a business is known as ________. a. customer equity b. customer loyalty c. customer retention d. customer lifetime value (CLV)

customer loyalty

A program that offers discounts and special incentives designed to attract and retain customers is called a ________. a. customer loyalty program b. sweepstakes c. discount plan d. CRM software

customer loyalty program

In the exchange process, the ________ is the individual who purchases the product or service, and the ________ is the individual who actually uses the product or service. a. buyer; seller b. buyer; customer c. customer; consumer d. consumer, customer

customer;consumer

________ needs are those that provide the "wow" factor in a customer's purchase. a. Stated b. Real c. Unstated d. Delight

delight

Road Scholar is an American not-for-profit organization that provides educational travel programs geared primarily to older adults. On what basis has Road Scholar segmented the market? a. Geographic b. Psychographic c. Demographic d. Behavioral

demographic

Which of the following is not an external interested party? a. Employees b. Customers c. Suppliers d. Society

employees

Janelle and her sister are planning a reception for their parents' 50th wedding anniversary. They have looked at several venues, comparing size, location and accommodations, photo opportunities, and parking. What stage in the consumer decision process model does this best illustrate? a. Need recognition b. Information search c. Evaluation of alternatives d. Purchase decision

evaluation of alternatives

Nathan and his husband have decided to purchase a new car. They have narrowed their list to a few models and visited a few dealerships to see the models and test-drive them. Which stage of the consumer decision process does this illustrate? a. Need recognition b. Information search c. Evaluation of alternatives d. Purchase decision

evaluation of alternatives

Hoffman Enterprises, a manufacturer of electronic controls for appliances, has segmented its customers based upon the size of the company in terms of revenue and its geographic location. What method of segmenting B2B markets is Hoffman Enterprises using? a. Technographics b. Behavioral c. Firmographics d. Needs Based

firmographics

In China, Starbucks offers tea-based drinks featuring regional ingredients. On what basis has Starbucks segmented its market? a. Demographic b. Behavioral c. Geographic d. Psychographic

geographic

You're at the grocery store buying potato chips for a barbeque you're having this weekend. You normally buy Lay's potato chips, but you notice that Ruffles are on sale, so you pick up a few bags of Ruffles. What buying behavior have you displayed? a. Dissonance-reducing buying behavior b. Habitual buying behavior c. Variety-seeking buying behavior d. Complex buying behavior

habitual buying behavior

Dissonance-reducing buying behavior

high involvement, few differences between brands

Complex buying behavior

high involvement, significant differences between brands

Stars

high market share, high growth rate

Jason is considering buying a new laptop computer. He is researching different models based on factors like the processor, the hard drive capacity and speed, RAM, operating system, and price. He has also asked a few friends what they like and dislike about their laptops. Which stage of the consumer decision process model does this illustrate? a. Problem identification b. Evaluation of alternatives c. Information search d. Post-purchase evaluation

information search

Habitual buying behavior

low involvement, few differences between brands

Variety seeking buying behavior

low involvement, significant differences between brands

Question marks

low market share, high growth rate

Poor dogs

low market share, low growth rate

________ consist of third-party sellers such as retailers, wholesalers, and other resellers in the distribution channel. a. Suppliers b. Market intermediaries c. Partners d. Customers

market intermediaries

What key metrics does the BCG matrix use to show the relative attractiveness of different offerings? a. Market share and market growth rate b. Market size and market share c. The ratio of dogs to cash cows in the product portfolio d. The potential for question marks to cross over and become stars

market share and market growth rate

In the buyer's black box, external stimuli that are planned and created by the producer and/or seller are known as ________ stimuli. a. economic b. marketing c. technological d. social

marketing

The extent to which the supply chain adds value to our marketing strategy is best addressed by our evaluation of which of the 5Ms? a. Materials b. Money c. Machinery d. Minutes

materials

External environment

microenvironment, macroenvironment

Which of the following defines the reason why the business exists? a. Vision statement b. Mission statement c. Gap analysis d. Goals and objectives

mission statement

Ra'Shana's car broke down on the way to work, and she realizes that she needs to quickly find a repair shop to take care of her vehicle. Which stage of the consumer decision process model does this represent? a. Need recognition b. Information search c. Evaluation of alternatives d. Purchase decision

need recognition

Customer relationship management is accomplished by all of the following EXCEPT ________. a. establishing and tracking customer interactions b. finding ways of improving customer satisfaction from prior customer experiences c. communicating with customers in a personalized way d. offering the lowest price of all the companies on the market

offering the lowest price of all the companies on the market

Sanjay is creating a SWOT analysis for the vegan restaurant he owns in a small college town. Until recently, there has been only one competitor in the vegan market, but that restaurant has recently closed temporarily due to health code violations. How would this development be characterized in terms of the SWOT analysis? a. Strength b. Weakness c. Opportunity d. Threat

opportunity

DiJuan, a marketer for a soft drink company, ensures that his company's products are available in numerous locations—vending machines, convenience stores, restaurants, and supermarkets. Which element of the 4Ps is DiJuan addressing? a. Product b. Price c. Promotion d. Place

place

Which of the 4Ps of marketing focuses on how and where to deliver the product to the consumer most likely to buy it? a. Product b. Price c. Place d. Promotion

place

Coca-Cola's mission is to refresh the world, and to that end, it has ensured that you can buy a Coke product at numerous locations—vending machines, convenience stores, restaurant fountains, stadiums, etc. What type of utility has marketing created through this process? a. Form utility b. Time utility c. Place utility d. Possession utility

place utility

Which of the following is NOT one of the 4Ps of marketing? a. Product b. Price c. Place d. Positioning

positioning

Which of the 4Ps focuses on determining how much consumers would be willing to pay for a product or service? a. Product b. Price c. Place d. Promotion

price

Which strategy involves the creation of new or improved products to replace existing ones in order to improve a company's competitive position and sales? a. Market development b. Product diversification c. Horizontal diversification d. Product development

product development

Which of the following accurately represents the evolution of marketing? a. Production, product, sales, marketing, societal b. Product, sales, production, marketing, societal c. Marketing, production, sales, societal, product d. Societal, production, sales, marketing, product

production, product, sales, marketing, societal

You're a marketer trying to determine which trade shows you might want to include in your marketing mix. Which element of the marketing mix would address this concern? a. Product b. Price c. Place d. Promotion

promotion

A travel agency offers adventure trips like hut-to-hut camping in the mountains as well as quieter vacations in all-inclusive resorts. On what basis has the travel agency segmented its market? a. Psychographic b. Demographic c. Behavioral d. Geographic

psychographic

Peloton's main products are Internet-connected stationary bikes and treadmills that enable subscribers to remotely participate in live classes via streaming media. This enables subscribers to have a "spin class" experience without going to the gym. On what basis has Peloton segmented the market? a. Demographic b. Behavioral c. Geographic d. Psychographic

psychographic

Samantha sees a TV commercial announcing that a mattress she's been considering is on sale through the holiday weekend and makes plans to visit the store the next day in order to take advantage of the sale. In terms of the buyer's black box, how would this TV commercial be characterized? a. Product choice b. Brand choice c. Social stimuli d. Purchase timing

purchase timing

Jazmine purchases a wireless alarm system for her apartment. According to Maslow's hierarchy of needs, which level of needs does this purchase reflect? a. Physiological b. Safety/security c. Self-esteem d. Social

safety/security

The tendency of people to interpret information in a way that supports what they already believe is known as ________. a. cognitive dissonance b. selective attention c. selective retention d. selective distortion

selective distortion

During which marketing era concept would companies not only produce products but also try to persuade customers through advertising and personal selling to purchase those products? a. Production concept b. Product concept c. Selling concept d. Marketing concept

selling concept

You're at the shopping mall looking for a new pair of shoes when you smell the wonderful aroma of freshly baked pretzels. Before you know it, you've bought a giant pretzel with cheese sauce. What type of factors influenced your purchase? a. Psychological factors b. Social factors c. Situational factors d. Personal factors

situational factors

You want to target a market more narrowly than simply using demographic data. You are also considering segmenting on people's attitudes and interests. Which domain of the macroenvironment is most likely to be a relevant data source for your decision-making? a. Economic factors b. Natural factors c. Political and legal factors d. Social factors

social factors

Which of the marketing eras or concepts is most closely related to sustainability and environmental consciousness? a. Production concept b. Marketing concept c. Societal marketing concept d. Sales concept

societal marketing concept

Why is it important to track customer satisfaction? a. We don't need to; we already have their money. b. Customer referrals can be a powerful promotional tool. c. Customer acquisition can be expensive; repeat purchases can be much more profitable. d. Statements b and c are both correct.

statements b and c are both correct

What do you call the plans, actions, objectives, and goals that outline how a business will compete in its chosen markets? a. Mission statement b. Vision statement c. Gap analysis d. Strategy

strategy

Marcus is preparing a SWOT analysis for the health club he owns. One of the factors he has identified is the fact that the health club is the only facility in the area that offers water aerobics classes. In terms of a SWOT analysis, how would this factor be characterized? a. Strength b. Weakness c. Opportunity d. Threat

strength

In a SWOT analysis, which factors are internal to the organization? a. Strengths and opportunities b. Weaknesses and threats c. Strengths and weaknesses d. Opportunities and threats

strengths and weaknesses

SWOT analysis

strengths, weaknesses, opportunities, threats

Components of the microenvironment

suppliers, marketing intermediaries, competitors, publics, customers

Micromarketing

tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing

Which of the domains of the macroenvironment are most likely to be responsible for cutting-edge innovations? a. Economic b. Technological c. Political and legal d. Social and cultural

technological

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

If you wanted to fill a gap in the marketplace, you would have to carefully consider ________ to see what is already available on the market. a. the competition b. the customers c. the public d. the resellers

the competition

Product concept

the idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements

Marketing concept

the idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives

Business-level strategy

the plan created for a single business or operating unit

Functional strategy

the plan to achieve the corporate‐and business‐level objectives in functional areas (e.g., human resources, marketing, and production)

The product concept focuses on ________. a. the quality of the product a company intends to sell b. the operations of manufacturing the product a company intends to sell c. the selling strategies a company will use to sell the product d. the needs of the customer

the quality of the product a company intends to sell

The observation is made that a single data point in isolation is not very useful. What can we do with a KPI data point to make it useful? a. Compare the KPI data point with a related goal/objective (forecast). b. Compare the KPI data point with our historical performance. c. Compare the KPI data point with industry averages. d. These are all useful things to do with a KPI data point.

these are all useful things to do with a KPI data point

During the societal marketing concept, ________. a. customers' wants and needs were first identified as essential b. trustfulness, honesty, and transparency became most important c. promotional efforts to move inventory were essential d. the customer was the focus

trustfulness, honesty, and transparency became the most important

External environment is _____

uncontrollable

________ is/are the benefit(s) to the customer or consumer relative to the cost of the product or service. a. Value b. The exchange process c. Stated needs d. Expectations

value

Which of the following terms refers to the promised value of a product or service? a. Valuation b. Value proposal c. Value assessment d. Value proposition

value proposition