Marketing Ch. 1 and 2

Product/market expansion grid

Which tool uses market​ penetration, market​ development, product​ development, or diversification to identify company growth​ opportunities?

There is no consistent definition

Why is marketing return on investment​ (ROI) so difficult to​ measure?

Customer equity

______ is the total combined customer lifetime values of all of the company's customers.

The marketing process

________ captures value from consumers by creating profits and customer equity.

Suppliers, distributors, and customers

________ compose a company's external value delivery network.

Market segmentation

________ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate marketing strategies or mixes.

Market segmentation

________ is the process of dividing a market into distinct groups of buyers who have different​ needs, characteristics, or​ behaviors, and who might require separate marketing strategies.

Marketing control

_________ is measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved.

Strategic planning

_________ is the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.

Wants

__________ are the form human needs take as they are shaped by culture and individual personality.

Share of customer

__________ is the portion of the customer's purchasing that a company gets in its product categories.

Marketing offerings

___________ are some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

SWOT analysis

___________ is an overall evaluation of a company's strengths, weaknesses, opportunities, and threats

Marketing implementation

___________ is turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives.

Diversification

____________ is a company growth through starting up or acquiring businesses outside the company's current products and markets.

The product/market expansion grid

____________ is a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification

Market targeting

____________ is the process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

Demands

_____________ are human wants that are backed by buying power.

Product development

_____________ is company growth by offering modified or new products to current market segments.

value of the entire stream of purchases a customer makes during a lifetime of patronage

Customer lifetime value is the _________.

the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return

Marketing is ____________.

Creating customer value, building customer relationships, and engaging customers

Which of the following is included in a broad definition of marketing?

market segment

A _____________ is a group of consumers who respond in a similar way to a given set of marketing efforts.

Market exchange

A local drama club wants to increase the membership and attendance at its performances. To do​ so, it hosts free​ shows, starts​ poetry-reading nights, and sends volunteers to the local high school. What is the drama club engaging​ in?

Monitor strategic marketing performance

A marketing dashboard is used to do which of the​ following?

an executive summary; outline of controls

A marketing plan begins with​ ________ and ends with​ a(n) ________.

the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products

A value chain is ____________.

Market development

A video game manufacturer wants to enter the Japanese market with their current line of games. Based on the​ product/market expansion​ grid, which growth strategy is the firm​ using?

The internet has allowed consumers to take marketing content and share it.

According to the text, how has the internet MOST affected companies and customers?

artificial intelligence (AI)

Amazon Echo's Alexa is an example of a(n) _________-powered application.

Market management organization

Denim Blue Jean Corporation is a growing company located in Washington​ State, but it is beginning to develop a presence in the surrounding states as well. It sells only one product—blue jeans--but it has 12 different lines of jeans that cater to​ men, women,​ children, babies,​ toddlers, and teens. Which type of marketing department organization would BEST suit Denim Blue Jean​ Corporation?

Needs are satisfied by wants, and buying power converts wants into demands

How do market demands relate to needs and wants?

B. The new concept focuses on customer needs

How does the new concept of marketing differ from the old concept of marketing ("telling and selling")?

As a low-growth, low-share business or product

How is the dog defined in the growth-share matrix?

There is a good fit between the company's offerings and butterflies' needs

In the context of customer relationship groups, which statement is true? A. There is a good fit between the​ company's offerings and​ butterflies' needs. B. True friends and butterflies both show high projected loyalty. C. True friends are loyal but not very profitable. D. There is a strong fit between​ barnacles' needs and the​ company's offerings. E. Strangers show high potential profitability but little projected loyalty.

Low market​ share, low market growth

In the​ growth-share matrix, what are the characteristics of​ dogs?

Acceptability, Affordability, Accessibility, Awareness

In this age of customer value and​ relationships, the four Ps might be better described as the four As. What are the four​ As?

Accountability

In this age of customer value and​ relationships, the four Ps might be better described as the four As. Which is NOT one of the four​ As? Accountability Awareness Accessibility Acceptability Affordability

by identifying and developing new market segments for current company products

Market development is a company growth ______________.

can be intangible

Market offerings __________.

company growth by increasing sales of current products to current market segments without changing the product

Market penetration is _________.

when sellers are so taken with their products that they focus only on existing wants and lose sight of underlying customer needs

Marketing myopia _____.

The marketing concept

Marketing provides a guiding philosophy for a​ company's strategic planning. This​ philosophy, known as​ __________, focuses on creating customer value and building profitable relationships with important consumer groups.

planning; implementation

Marketing​ ________ focuses on the what and why of marketing​ activities, while marketing​ ________ focuses on the​ who, where,​ when, and how.

The attractiveness of the SBU's market or industry and the strength of the SBU's position in that market or industry

Most standard portfolio analysis methods evaluate strategic business units​ (SBUs) on their performance in two important dimensions. What are these two​ dimensions?

Create a promotion strategy to increase customer awareness

Nibbles Pet Food Corporation is in the process of developing its new market strategy. The marketing team has already established the​ company's niche product—​premium, organic dog and cat food—and contracted to sell it in several​ high-end pet stores. The team has also determined the optimum price to create value for customers and still make a profit. What does the marketing team need to do​ now?

A. Noah​ Lopez, a marketing specialist and expert who would be hired as the Sanchez​ family's new chief marketing officer

Sanchez Hispanic Foods and Seasonings has started to grow larger than the Sanchez family could ever have imagined. The company is having a hard time keeping track of all of the​ business' marketing activities. They know that they are going to need help to keep the business growing and are looking for solutions. Which of the following potential hires is likely the BEST decision for the Sanchez​ family? A. Noah​ Lopez, a marketing specialist and expert who would be hired as the Sanchez​ family's new chief marketing officer B. Claudia​ Jimenez, a​ well-educated accountant who would begin working as the new chief financial officer C. Karin​ Petersen, an operations specialist who would be hired as the new chief operating officer D. Jose​ Gonzalez, one of the Sanchez​ family's best friends and a fellow entrepreneur who would come on as an additional chief executive officer E. Craig​ Moore, an extremely successful entrepreneur who is actually looking to acquire the company and grow the business exponentially

needs

State of felt deprivation are known as _________.

can be difficult and time-consuming to execute

The BCG and other formal methods​ ________.

product concept

The __________ is 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.

societal marketing concept

The ____________ is the idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests

D. Strategic planning

The focus of which of the following processes not only sets the stage for planning in the​ firm, but also represents the maintenance and development of the​ organization's goals and capabilities and its changing marketing​ opportunities? A. Long-range planning B. Marketing planning C. Research and development planning D. Strategic planning E. Annual planning

Question marks

The growth-share matrix defines four type of SBUs : _________ are low-share business units in high-growth markets

high-growth, high-share businesses or products

The growth-share matrix defines four types of SBUs: Stars are _____________.

Cash cows

The growth-share matrix defines four types of SBUs: __________ are low-growth, high-share businesses or products.

a SWOT analysis

The main section of a typical marketing plan presents ___________.

quickening the shift from digital consumer engagement strategies to in-store connections

The profound effect of the COVID-19 pandemic is evidenced in all of the following EXCEPT _________. A. hastening the transition to digital in almost every area of human activity B. boosting​ brands' use of​ online, mobile, social​ media, and other digital platforms to connect with consumers C. increasing to​ 25% the amount of sales moving through online channels D. accelerating the shift to online shopping by an estimated 5 to 10 years E. quickening the shift from​ digital-first consumer engagement strategies to​ in-store connections

the marketing mix

The set of tactical marketing tools that a firm blends to produce the response it wants in the target markets is called​ ________.

B. Receiving value from customers

The ultimate goal of the marketing process is which of the following? A. Determining a target market B. Receiving value from customers C. Creating a quality product D. Evaluating customer needs E. Developing relationships with customers

value delivery network

To create value for​ customers, marketers must improve the performance of the​ _________, which includes partnering with​ suppliers, distributors, and customers.

A. What customers will we serve? How can we serve these customers best?

To design a winning marketing strategy, what are the two important questions a marketing manager must answer?

It may omit or underemphasize certain important activites

Which of the following is a valid concern when it comes to the four Ps concept?

Customer engagement, value, and relationships

Which of the following is at the center of marketing strategy and​ programs?

D. Products, services, information, and experiences

Which of the following represent market offerings? A. Products, services,​ needs, and exchanges B. Value, satisfaction,​ sales, and profits C. Needs, wants,​ products, and advertisements D. Products, services,​ information, and experiences E. Products, services,​ needs, and wants

We will help customers build, invigorate, restore, refurbish, or completely redesign their homes or businesses

A new hardware company is writing its mission statement. Which of the following is the BEST mission statement possible for the new​ company? A. We will have​ $2 million in profit by the end of our second fiscal year and twice that amount by the end of year five. B. We embrace the deeper meaning of home and commercial improvements. C. We will help customers​ build, invigorate,​ restore, refurbish, or completely redesign their homes or businesses. D. We will be the best hardware company in the world. No other company will ever outsell us. E. We are providers of​ hardware, lumber-based, and appliance products to be used for home improvement and commercial construction projects.

customer brand advocacy

Actions by which satisfied customers initiate favorable interactions with others about a brand are defined as ____________.

its business portfolio

After creating a​ company's mission and​ objectives, the executive team must then plan​ __________ by keeping in mind the best fit for its​ strengths, weaknesses, and opportunities in the environment.

Frequency marketing program

Asher Airlines instituted a marketing program whose intent is to create a relationship with customers with seat upgrades and free miles for their continued patronage. What customer relationship tool is Asher Airlines​ using?

Examine how well each group performs its work of adding customer value.

A​ company's value chain is only as strong as its weakest link. What should a company do to properly gauge the strength of its links and continually​ improve?

the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Customer relationship management is _________.

every type of organization

Effective marketing is essential to the success of _____________.

D. Should Jantel, Inc., follow a product or marketing concept?

Ethel and Jan have just started a new​ company, Jantel,​ Inc., and are having trouble deciding which marketing path to take to drive sales. Ethel believes they should follow a​ make-and-sell philosophy that focuses on improving their​ product, whereas Jan believes they should be more​ customer-oriented and find the right products for their customers. Which of the following BEST describes what Ethel and Jan are​ considering? Should​ Jantel, Inc., follow a production or selling​ concept? A. Should Jantel, Inc., follow a production or selling concept? B. Should​ Jantel, Inc., follow a marketing concept or a societal marketing​ concept? C. Should​ Jantel, Inc., follow a product or selling​ concept? D. Should​ Jantel, Inc., follow a product or marketing​ concept? E. Should​ Jantel, Inc., follow a societal marketing or production​ concept?

Obtaining a desired object from someone by offering something in return

Exchange is the act of_______.

Identify strategic business units

In analyzing a​ company's current business​ portfolio, what is​ management's first​ step?

A. Designing a customer-driven marketing strategy

In the 5-step marketing process model, what occurs after the marketer identifies customer needs and wants in the marketplace and understands them?

Determine who in the community wants or needs a jump rope

Julie's Jump Rope Emporium is a new company. From marketing standpoint, what is the FIRST thing Julie's Jump Rope Emporium needs to do?

D. Barnacle

Scott Frost has been coming to​ Aldwin's Diner for 20 years and refuses to go anywhere else.​ Joseph, the owner of​ Aldwin's, loves​ Scott's loyalty but admits he purchases only a cup of coffee at each visit. Scott would BEST be described as which of the​ following? A. Butterfly B. True believer C. True friend D. Barnacle E. Stranger

marketing concept

The _____________ is a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do.

creating profits and customer equity

The marketing process captures value from customers by ________.

the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency

The production concept is ___________.

The growth of the company will be unpredictable because there is no guarantee that a question mark will become a star.

Using the BCG​ growth-share matrix as a​ guide, Masumura Technologies identified question marks in its business portfolio but is currently maintaining its market share. At a recent meeting with the​ company's senior management​ team, the CEO of Masumura and her team members decided to allocate all of the​ company's profits toward the growth and expansion of these question​ marks, in order to cause the question marks to become stars. What is likely to happen to this​ company?

Analysis, planning, implementation, organization, and control

What are the five marketing management functions used to manage the marketing process?

A. Society's interests, consumer wants, and company profits

What are the three consideration underlying the Societal Marketing Concept?

The marketing logic by which a company hopes to create customer value

What is a company marketing strategy?

it describes the organization's purpose

What is a mission statement?

the company, its suppliers, its distributors, and its customers who partner with each other to improve the performance of an entire system

What is a value delivery network?

E. Smartphone apps

What is an example of non-traditional marketing approach? A. Product displays B. Direct mail catalogs C. Magazine ads D. Television commercials E. Smartphone apps

the customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers

What is customer-perceived value?

the portion of the customer's purchasing that a company gets in its product categories

What is share of customer?

A global environment where everything and everyone is digitally connected to everything and everyone else

What is the Internet of Things (IoT)?

Define the company mission, set company objectives and goals, design the business portfolio, and plan the marketing and other functional strategies

What is the correct sequence of steps in the strategic planning process?

creating superior customer value and satisfaction

What is the key to building lasting customer relationships?

They focus more on products than on the customer's underlying need

What is the main problem that sellers suffering from marketing myopia face?

B. To make the brand a meaningful part of consumers' conversations and lives

What is the overall goal of customer-engagement marketing?

Production

Which of the following is NOT one of the four Ps of the marketing mix? A. Place B. Production C. Price D. Promotion E. Product

the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort

What is the selling concept?

To produce high customer equity

What is the ultimate aim of customer relationship management?

Target marketing

When a company chooses a group of customers to serve, it is engaging in which of the following? Demand management Societal marketing Differentiation Market segmentation Target marketing

This is typically the first step in the process

When a company develops a business portfolio, when does it identify the key businesses that make up the company?

defining its overall purpose and mission

When a company starts the strategic planning process at the corporate level, it begins by __________.

E. Selecting only customers a company can serve well and profitably

Which BEST expresses the goal of effective marketing management? A. Focusing only on affluent customers B. Refusing to limit a​ company's efforts to chosen segments of the market C. Finding as many customers as possible and increasing demand D. Trying to serve all customers in every way E. Selecting only customers a company can serve well and profitably

The marketing concept

Which concept takes an outside-in view that emphasizes fulfilling the needs of customers as a road to profits?

B. The IoT is a global environment where everything and everyone is digitally connected to everything and everyone else.

Which of the following BEST describes the Internet of Things (IoT)?

Strategic planning

Which of the following actions helps a company find the game plan for​ long-run survival and growth that makes the most sense given its specific​ situation, opportunities,​ objectives, and​ resources? A. Research and development planning B. Financial and revenue planning C. Individual departmental planning D. Strategic planning E. Marketing planning

B. Needs, wants, and demands; market offerings; value and satisfaction; exchanges and relationships; and markets

Which of the following correctly identifies the five core customer and marketplace concepts? A. Needs, wants, demands, market offerings, and markets B. Needs, wants, and demands; market offerings; value and satisfaction; exchanges and relationships; and markets C. Needs, wants, and demands; market offerings; value; satisfaction; exchanges and relationships; and markets D. Needs, wants, and demands; products; value; customers; and competitors E. Needs, wants, and demands; market offerings; value and satisfaction; competitors; and profits

Set revenue and financial goals

Which of the following is NOT a step in the strategic planning​ process? A. Development of individual detailed departmental plans B. Set revenue and financial goals C. Creation of overall supporting objectives for the company D. Decisions regarding portfolio of business and products E. Define overall purpose and mission

E. Edward's Earthware attempts to make its pottery in a way that satisfies customers but is also environmentally friendly and sustainable over the long term

Which of the following scenarios BEST describes the societal marketing concept? A. Tim's Tires constantly tries to improve on the tires it sells by placing all of its efforts into new design research. B. Amy's Apple Cart regularly asks its customers what kind of apples they want to buy. C. Wanda's Wedding Wear frequently promotes itself to customers through​ commercials, fliers, and other forms of advertising. D. Robert's Rotors does everything to improve production and lower the cost of its rotors in order to gain customers. E. Edward's Earthware attempts to make its pottery in a way that satisfies customers but is also environmentally friendly and sustainable over the long term.

Diversification

Which strategy involves company growth through starting up or acquiring businesses outside the​ company's current products and​ markets?

C. big data; marketing analytics

With so many information sources available digitally, companies can collect mountains of data called _______ and make sense of it using _____.

Marketing management

________ is the art and science of choosing target markets and building profitable relationships with them.

Customer satisfaction

__________ is the extent to which a product's perceived performance matches a buyer's expectations.

Customer equity

​Bertram's Beer structures its company in such a way as to encourage its most profitable older customers to remain loyal while also targeting a new generation of customers. What is​ Bertram's Beer attempting to​ build?