Marketing 330 Exam 1

​If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities?

1,000

Target Market Selection Process

1. Identify the appropriate targeting strategy 2. Determine which segmentation variables to use 3. Develop market segment profiles 4. Evaluate relevant market segments 5. Select specific target markets

The Five Steps of the Marketing Research Process

1. locating and defining issues or problems 2. designing the research project 3. collecting data 4. interpreting research findings 5. reporting research findings

​For most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar?

1/2

Homogeneous market-

A market in which a large proportion of customers have similar needs for a product

Stakeholders

All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address.

Coors may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on

behavioristic variables

If Progresso were to offer single-serving packages of soup, it would be using segmentation based on

family life cycle

A market segment profile describes the similarities among potential customers within a segment and explains the differences among people across market segments.

true

Focus-group interviews are useful if the researcher is interested in observing group interaction.

true

The ways in which customers use a particular product may be a basis for segmenting the market.

true

All of the following are steps in the marketing research process except

understanding your custumer

​Which of the following statements is incorrect?

​Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels.

​Business decisions made in creating a marketing mix

​are only as good as the organization's understanding of the needs of the target market

If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct

experimental research.

An undifferentiated targeting strategy does not target a single market with one marketing mix.

false

Your company is in the final stages of deciding whether to launch a new product that you have been testing for the last six months. While the CEO of your company is very optimistic about the potential for the product, he is a skeptic by nature. He has asked you to conduct one last round of marketing research that will give him greater confidence in the product's prospects. ​ Which of the following types of marketing research should you conduct to satisfy the CEO's concerns?

Conclusive research

Amazon Prime has one of the highest customer loyalty ratings in the entertainment industry with a significant percentage of current video streaming subscribers continuing to renew their subscription with Amazon on a yearly or month-to-month basis. In addition, many customers have cancelled their cable or satellite subscriptions and rely almost exclusively on streaming services such as Amazon Prime and Netflix for their entertainment. Amazon Prime video streaming is available as part of Amazon's $99/year Amazon Prime suite of offerings that includes free 2-day shipping on many Amazon.com orders. Customers can also choose to pay by the month for $12.99/month. If a significant percentage of subscribers continue their service on an annual basis, Amazon is able to build a stable revenue stream based on repeat purchasers. A quick snapshot of one customer revealed that the customer had subscribed to Prime for five years a

Customer lifetime value

Stars (Airpods)

Dominate share of the market Good prospects for growth Use more cash than they generate to finance growth, add capacity, increase market share

Cash cows (iphones)

Dominate share of the market Low prospects for growth Generate more cash than is required to maintain market share

Failing to conduct research can help companies maintain a competitive advantage.

false

Consumer fraud is any behavior that violates the norms of society.

False

Marketing cost analysis uses sales figures to evaluate a firm's current performance.

False

​Marketing efforts do not involve the design and development of products.

False

​The actual physical production of goods is a marketing activity.

False

​Value = customer costs−customer benefits.

False

Marketing History (Sales Era)

Focus: Beat Competition, Start of beating competition, Green Acres

Marketing History (Department Era)

Focus: Coordinate and Control, Mad Men

Marketing History (Production Era)

Focus: Increase Supply, Red Wing Shoes

Marketing History (Company Era)

Focus: Long-Run Customer Satisfaction, the office, friends (they keep going back to the same coffee shop because they like it)

Marketing History (Simple Trade Era)

Focus: Sell Surplus, example farms and selling wheat

What stage of the consumer buying decision process comes after problem recognition?

Information search

Within the information search step of the consumer buying decision process, what two primary aspects exist?

Internal search and external search

Herbal Organics used actor and former NFL player Sweet Dave Brown to act as its spokesperson as the "Herbal Organics Man." It filmed humorous videos of the actor that went viral online. Herbal Organics saw sales of its deodorants increase substantially from the previous year. What type of competitive growth strategy did Herbal Organics use?

Market penetration

Kraft made the announcement that it was eliminating artificial food additives. Which of the following most likely influenced Kraft's decision?

Marketing Enviorment

Which of the following is NOT an example of the implementation of the marketing concept?

McDonald's reduces the labor costs to produce its sausage-egg biscuits.

United Airlines introduced a new "basic economy" seat category to better compete with discount airlines like Southwest and Spirit. Which of the following aspects of the marketing mix is United likely altering?

Price

Marketing Mix (4 P's)

Product, Price, Place, Promotion

Which of the following statements about marketing environment forces is NOT true?

They do not influence customers reaction to the marketing mix

Question Marks (Apple TV)

Small share of a growing market Require a large amount of cash to build market share

Dogs (Old Macbooks)

Subordinate share of the market Low prospects for growth They don't make as much on their laptops as they do on their phones

​A strategic business unit is not self-supporting in terms of sales, markets, production, and other resources.

false

Your company is seeking to hire a consultant to assist with completing a specialized marketing research project that is focused on tech-savvy, young consumers. One of the firms describes its state-of-the-art marketing research system as follows: "It's a social intelligence system that provides insightful, actionable information about what people are saying about your brand. It integrates information from millions of sources and empowers you to, among other things, help your organization understand and even shape relevant conversations in the social media sphere." Based on the description, which of the following is the best reason for hiring this company?

This company's expertise and information systems are a good fit for the project.

A marketer's use of framing can make a product characteristic seem more important to a consumer and can facilitate its recall from memory.

True

Social classes are referred to as open aggregates of individuals because people can move into and out of them.

True

​A competitive advantage is created when a company matches its core competency to the opportunities it has discovered in the market.

True

Four V's

Volume: amount Velocity: speed of data Variety: different sources Veracity: quality

The marketing plan is

a written document detailing activities to be performed to implement and control marketing actions.

A business advantage of the concentrated targeting strategy for any company is that it

allows a firm to develop a special marketing mix for a single market segment.

When designing a product you have to keep in mind:

analyzing needs determine wants identify compensation predict designs determine where estimate price provide services

It is a good idea to consider parents as part of the target market when marketing new children's lunchboxes that stay colder longer.

false

Apple has been successful by anticipating what consumers would want in new technological advances, convenience, and ease of use. The introduction of the iPad was an example of a _____ for Apple, something that an organization does extremely well and may give a company an advantage over its competition.

core competency

The main focus of a marketing information system is on

data storage and retrieval.

Nancy knows her business has a problem because of an increasing number of consumer complaints received recently. She has decided how to make this problem a precise, researchable statement and should next move on to

designing the research project

​Consumers buying products online have dramatically affected the ____ variable of the marketing mix.

distribution

Survey and observation are considered secondary data collection techniques

false

All of the following are marketer-dominated sources of information except

friends

Ace Manufacturing Company is not attracting sufficient customers. It has long defined itself as being a maker of shelving products. To improve its sales and long-term viability, it should perhaps consider redefining itself as

helping potential customers satisfy their needs with Ace shelving products.

Primary data

information collected for the specific purpose at hand

Secondary data

information that already exists somewhere, having been collected for another purpose

Coca-Cola executives realized that more consumers are concerned with health. It has since expanded into the bottled water and bottled juice markets. This is an example of a firm identifying and capitalizing on a

market opportunity.

Jo's Coffee Shop wants to increase customer satisfaction. Currently, only 75% of customers indicate they are satisfied with the services offered. In the next six months, it plans on implementing a number of changes to improve its services. Jo's Coffee plans to implement a survey at the end of the six-month period to determine whether customer satisfaction has improved. Jo's wants 90% of its customers to indicate they are satisfied with its service. This is an example of a ________________.

marketing objective

If Kashi, the maker of Go Lean breakfast cereal, wants to know what percentage of customers examine product labels before making a product selection in the grocery store, it can best gain this information through

observation

All the elements, individuals, or units of interest to researchers for a specific study are called the

population

Anh has been hired by a market research company to collect data about the drinking habits of 25- to 35-year-old urban professionals. Anh is to go to "happy hour" with a group of individuals and observe what type of alcoholic beverages they order, how often, and what brands. The data that Anh will obtain is ______ and she will use ______ in its collection.

primary; ethnographic techniques

Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike.

product

In reporting marketing research findings, the researcher should

provide explanations in language that those who use the report to make decisions can understand.

Schlotzsky's wants to collect data about employee satisfaction within its organization. It decides to survey a sample of 500 employees by having a computer program automatically pick which employees will be in the sample. If it uses the payroll database as the list of names to choose from, which type of sampling method is Schlotzsky's using?

random sampling

Reliability vs. Validity

reliability (consistency) a reliable technique is not necessarily valid validity (accuracy) research method measures what is supposed to measure

A few months ago, Costco adopted a new brand of organic cheese. However, sales have been lower than expected. Costco decides to survey some of its customers at its stores to try and understand this issue. It set up demonstrations in several stores and asked consumers to try samples of its organic cheese product. It then asked them how they liked the cheese. The majority of respondents indicated they were very satisfied with the cheese's flavor. This occurred in trial after trial. Costco is confused. Satisfaction with the cheese is positive, yet sales continued to remain low. They ask you, a marketing consultant, why you think this is. You reply that while the tests had strong ___________, they did not have strong ____________. You recommend that Costco survey customers on their purchase intentions rather than their satisfaction with the product's taste.

reliability; validity

Regardless of how sales are measured, the basic unit of measurement is the

sales transaction.

Age, rate of product use, location, and gender are all examples of common

segmentation variables.

A company's customers, employees, shareholders, suppliers, governments, communities, and competitors comprise its

stakeholders

​Successful business organizations should take actions to convert internal weaknesses into ____ and external threats into ____.

strengths; opportunities

Special K cereal is aimed at people concerned about their weight. These people represent the Special K

target market

Although telephone surveys can be conducted very quickly, a major limitation is

that only a small portion of the population likes to participate in telephone surveys