Marketing Chapter 1-7 Questions and Terms
A) Demands
__________ are human wants that are backed by buying power. A) Demands B) Wants C) Needs D) Marketing offerings
A) Customer satisfaction
__________ is the extent to which a product's perceived performance matches a buyer's expectations. A) Customer satisfaction B) Customer-perceived value C) Customer relationship management D) Share of customers
A) Marketing myopia
__________ is the mistake of paying more attention to the specific product a company offers than to the benefits and experiences produced by these products. A) Marketing myopia B) Exchange C) Marketing management D) Marketing
Business Portfolio Planning
1. Analyze current business portfolio 2. Develop strategies for growth and downsizing
The growth share matrix defines 4 types of SBUs
1. Stars 2. Cash cows 3. Question marks 4. Dogs
D) target marketing
Disney has chosen families and children as the segment of the market to sell to, which is the process known as ___________. A) marketing paranoia B) exchange C) demand D) target marketing E) the production concept
Which of the following correctly defines the consumer market?
Individuals and households that buy goods and services for personal consumption
________ 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
Printer companies often charge a fairly low price for their ink jet printers (relative to costs) and a high price for replacement cartridges. These companies are using a strategy of ________ pricing.
captive-product
Increased long-term customer equity is the result of
capturing customer lifetime value and a greater share of customers
Market development
company growth by identifying and developing new market segments for current company products
Once management has decided on its product concept and marketing strategy, it can evaluate the business attractiveness of the proposal, which involves ___________.
conducting a business analysis
target market
consists of a set of buyers who share common needs or characteristics that the company decides to serve
brand sponsorship: store brands
created and owned by a reseller of a product or service
federal food and drug act (1906)
created the Food and Drug Administration. it forbids the manufacture or sale of adulterated or fraudulently labeled foods and drugs
financial reform law (2010)
creates the bureau of consumer financial protection, which writes and enforces rules for the marketing of financial products to consumers. it is also responsible for enforcement of the truth-in-lending act, the home mortgage disclosure act, and other laws designed to protect consumers
behavioral segmentation
divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product
economic environment
economic factors that affect consumer purchasing power and spending patterns
federal trade commission act (1914)
established the Federal Trade Commission, which monitors and remedies unfair trade methods
national environmental policy act (1969)
establishes a national policy on the environment. the 1970 reorganization plan established the environmental protection agency (EPA)
telephone consumer protection act (1991)
establishes procedures to avoid unwanted telephone solicitations. limits marketers' use of automatic telephone dialing systems and artificial or prerecorded voices
consumer product safety act (1972)
establishes the consumer product safety commission and authorizes it to set safety standards for consumer products as well as exact penalties for failing to uphold those standards
line extension
extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category
brand extension
extending an existing brand name to new product categories
concentrated marketing (niche marketing)
firm goes after a large share of one or a few smaller segments or niches
technological environment
forces that create new technologies,, creating new product and market opportunities
intermarket segmentation (cross-market segmentation)
form segments of consumers who have similar needs and buying behaviors even though they're located in different countries
competitive advantage
gained by offering greater customer value, either by having lower prices or providing more benefits that justifies higher prices
segmentation types
geographic, psychographic, demographic, behavioral
Price
is the amount of money customers must pay to obtain the product
Four key design strategies
market segmentation, market targeting, differentiation, positioning
benefit based
marketing based on benefits sought out of the product
Product
means the goods and services combination the company offers to the target market
to be useful, market segments must be
measurable, accessible, substantial, differentiable, actionable
Marketing control
measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved
lanham trademark act (1946)
protects and regulates distinctive brand names and trademarks
The buyer decision process starts with __________.
recognizing a need
Promotion
refers to activities that communicate the merits of the product and persuade target customers to buy it.
interactive marketing
training service employees int eh fine art of interacting with customers to satisfy their needs
occasion based
when you use service for specific occasions (ie photographer, wedding planner)
What are the five marketing management functions used to manage the marketing process?
Analysis, planning, implementation, organization, and control
Forces in a company's macroenvironment that shape opportunities and pose threats to the company include what?
Demographic, economic, natural, technological, political/social, and cultural forces
A company's external value delivery network consists of __________.
suppliers, distributors, and customers
four service characteristics
1. intangibility 2. variability 3. inseparability 4. perishability
positioning statement
Company and brand positioning should be included here
People's views of themselves, others, organizations, and nature are part of which macroenvironmental force?
Cultural forces
Important trend in the natural environment?
Shortages of raw materials, increased pollution, increased government intervention in natural resource management
Which of the following statements regarding the changing marketing landscape is correct?
The Great Recession caused consumers to rethink their buying priorities
What is the single most important demographic trend in the U.S. today?
The changing age structure of the population
Which of the following statements regarding socially responsible product decisions is correct?
The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.
store brand (or private brand)
a brand created and owned by a reseller of a product or service
convenience product
a consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort
unsought product
a consumer product that the consumer either dow not know about or knows about but does not normally consider buying
robinson-patman act (1936)
amends the clayton act to define price discrimination as unlawful. empowers the FTC to establish limits on quantity discounts, forbid some brokerage allowances, and prohibit promotional allowances except when made available on proportionately equal terms
what is the best starting point for building market segments?
behavioral segmentation
value statement
defines how a company will create differentiated value for targeted segments and what positions it wants to occupy in those segments
managing service quality
delivering consistently higher quality than the competitors
what's the most popular bases for segmenting customer groups?
demographic factors
According to the text, two major public policy and ethical issues in marketing research are ________.
intrusions on consumer privacy and the misuse of research findings
brand valuation
is the estimation of the total financial value of a brand
customer equity
is the value of customer relationships that the brand creates
Business Legislation (legal) Areas
laws protecting companies form each other, laws protecting consumers, laws protecting the interests of society
children's television act (1990)
limits the number of commercials aired during children's programs
americans with disabilities act (1991)
makes discrimination against people with disabilities illegal in public accommodations, transportations, an telecommunications
Evaluating each market segment's attractiveness and selecting one or more market segments to enter is called _______.
market targeting
Products and technologies eventually become outdated, but basic market needs can last forever. For this reason, company mission statements should be
market-oriented
When a company sets a high price as the initial price of a new product, it is pursuing a ________ new product pricing strategy.
market-penetration
brand sponsorship: national brands
marketed under the manufacturer's own name
brand positioning and brand name selection
marketers should establish a mission and vision for the brand when positioning it
The people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights comprise a ________.
marketing information system
Dynamic pricing is when companies continually adjust prices to meet the characteristics and needs of individual customers and situations. Where is this method especially prevalent today?
online buying
internal marketing
orienting and motivating customer-contatct employes and supporting service employees to work as at sam to provide customer satisfaction
The four major brand strategy decisions involve brand _______.
positioning, name selection, sponsorship, and development
Firms that develop strategies to change the environment - instead of assuming that strategic options are bounded by the current environment - are being _________.
proactive
Sherman antitrust act (1890)
prohibits monopolies and activities (price fixing, predatory pricing) that restrain trade or competition in interstate commerce
children's online privacy protection act (2000)
prohibits web sites or online services operators from collecting personal information from children without obtaining consent from a parent and allowing parents to review information collected from their children
To deliver real value to marketers, marketing information must _______________.
provide useful customer insights
federal cigarette labeling and advertising act (1967)
requires that cigarette packages contain the following statement, "Warning: The Surgeon General Has Determined That Cigarette Smoking Is Dangerous to Your Health."
During the introductory stage of the product lifecycle, __________.
sales are slow and profits are nonexistent
Many state colleges and universities charge one price for in-state students and a higher price for out-of-state students. Which price adjustment strategy are these schools using?
segmented pricing
Relative market share
serves as a measure of company strength in the market it is on the horizontal axis of the growth share matrix
Services are characterized by four key aspects: ____________
services are intangible, inseparable, variable, and perishable
service inseparability
services are produced and consumed at the same time and cannot be separated from their providers
service intangibility
services cannot be seen, tasted, felt, heard, or smelled before they are bought
Return on Marketing Investment or marketing ROI
the net return from a marketing investment divided by the costs of the marketing investment
Value delivery network
the network made up the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system
co-branding
the practice of using the established brand names of two different companies of the same product
Strategic planning
the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities
service variability
the quality of services may vary greatly depending on who provides them and when, where, and how they are provided
brand sponsorship: co-branding
use the established brand names of two different companies on the same product
What are the three general sources from which marketers can obtain information?
Internal data, marketing intelligence, and marketing research
What are the four choices a company has for developing brands?
Line extensions, brand extensions, multibrands, and new brands
Dogs - GSM
Low growth, low share businesses or products. they may generate enough cash to maintain themselves but do not promise to be large source of cash.
Strategic Business Units (SBU)
Management's first step is to identify the key businesses that make up the company called these when doing a portfolio analysis
E) marketing myopia
Many of Zappos' more traditional rivals focus greater attention on the attributes of the products and services they sell rather than on the benefits and experiences produced by their market offerings. This trap is sometimes referred to as __________. A) marketing paranoia B) marketing malpractice C) the production concept D) marketing management E) marketing myopia
Which of the following statements regarding the business market is correct?
Many sets of business purchases are made for one set of consumer purchases
A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use?
Market-penetration pricing
A) Advertising
Marketers consider five core concepts when considering their consumer base. Which of the following is not considered one of the five core concepts? A) Advertising B) Market offerings C) Needs, wants, and demands D) Exchanges and relationships E) Markets
What do marketers use to analyze big data?
Marketing analytics
A) 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 __________. A) the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return B) the art and science of choosing target markets and building profitable relationships with them C) the act of obtaining a desired object from someone by offering something in return D) the mistake of paying more attention to the specific product a company offers than to the benefits and experiences produced by these products
Which of the following are additional variables marketers use to segment business markets but not consumer markets?
Operating characteristics, purchasing approaches, situational factors, and personal characteristics
In which step of the buying decision process is the final order with the chosen supplier developed?
Order-routine specification
What are the eight steps in the business buying decision process in the correct sequence?
Problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, order-routine specification, and performance review
Product Mix Demensions
1. Width: Number of different product lines a company carries 2. Length: Total number of products a company carries within its product line. 3. Depth: Number of versions for each product offered in the line 4. Consistency: How closely product line products are in end use, production requirements, or distribution channels.
What are the two ways a firm can obtain new products?
Acquisitions and new product development
Which of the following statements regarding the marketing of international products and services is correct?
Because markets and consumers around the world differ widely, companies must usually adapt their product offerings in different world markets.
In which targeting strategy does a firm go after a large share of one or a few smaller segments?
Concentrated marketing
What is big data?
Data contained in huge and complex data sets
Market Plan
Executive summary, current marketing situation, threats and opportunities analysis, objectives and issues, marketing strategy, action programs, budgets, controls
What are the three types of objectives a marketing research project might have?
Exploratory research, descriptive research, and causal research
Which of the following statements is true regarding the marketing of services?
For service providers, a solution to price competition is to develop a differentiated offer, delivery, and image
Which of the following correctly identifies the five important decisions marketers must make when developing individual products and services?
Product attributes, branding, packaging, labeling, and product support services
Four Ps
Product, price, place, and promoiton
A) needs
The state of felt deprivation is known as __________. A) needs B) wants C) demands D) marketing offerings
To design a winning marketing strategy, what are the two important questions a marketing manager must answer?
The two questions are the following: What customers will we serve? How can we serve these customers best?
What is a product position
The way a product is defined by consumers on important attributes
Why do companies use customer relationship management?
To capture and use customer data
Product development
company growth by offering modified or new products to current market segments
Choosing a Targeting Strategy depends on
company resources, product variability, product life-cycle, market variability, and competitive marketing strategies
market targeting
evaluating each segment's attractiveness and selecting one or more market segments to enter
Some companies might miss new product and market opportunities because of three primary reasons that include
fighting or ignoring new technologies, inability to keep up, ignoring a changing regulatory landscape
desirable qualities for a brand name should
- be based on the product's benefits and qualities -be easy to pronounce, recognizable, and remember -be distinctive and extendable -translate easily into foreign languages -be capable of registration and legal protection
brand equity consumer perception dimensions include
-differentiation -relevance -knowledge -esteem
product and service decisions
-individual product decisions -product line decisions -product mix decisions
Other marketable entities
-organizational marketing -person marketing -place marketing -social marketing
managing service productivity
-training current employees or hiring new ones -increasing the quantity of service by giving up some quality -harnessing the power of technology
Marketing Process
1. Understand the marketplace, which includes customer needs and wants 2. Design a customer value driven marketing strategy 3. Construct and integrated marketing program that delivers superior value 4. Engage customers, build profitable relationships, and create customer delight 5. Capture value from customers to create profits and customer equity
three types of service marketing
1. internal marketing 2. external marketing 3. interactive marketing
Individual product decisions
1. product attributes 2. branding 3. packaging 4. labeling 5. product support labels
individual product decisions
1. product attributes 2. branding 3. packaging 4. labeling 5. product support services
Boston Consulting Group (BCG) approach
A company classifies all its SBUs according to the growth matrix ( the portfolio planning method)
B) share of customer
A company rarely gets 100% of a customer's purchases for a product category. The share it does get of the customer's purchasing in its product categories is called ________. A) customer defections B) share of customer C) customer lifetime value D) share of market E.customer equity
Market segment
A group of consumers who respond in a similar way to a given set of marketing efforts
Which type of business buying situation offers marketers the greatest opportunity but also the greatest challenge?
A new task situation
Product/market expansion grid
A portfolio planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
Which of the following is the correct definition of a product?
A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
Mission statement
A statement of the organizations purpose - what it wants to accomplish in the larger environment
Differentiation
Actually differentiating the market offering to create superior customer value
E) customer satisfaction
Although Zappos was not legally bound to fulfill customer orders following its pricing snafu, failure to do so would have significantly lowered __________, which is based on a company's performance relative to the customers' expectations A) customer demand B) customer-perceived value C) customer lifetime value D) customer engagement E) customer satisfaction
A SWOT is a part of which marketing management function?
Analysis
Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
What are the five stages of the consumer adoption process in the correct sequence?
Awareness, interest, evaluation, trial, and adoption
Demographic trends
Changing age and family structures, geographic population shifts, educational characteristics, population diversity
Market penetration
Company growth by increasing sales of current products to current market segments without changing the product
Diversification
Company growth through starting up or acquiring businesses outside the company's current products and markets
Actors in the microenvironment
Company, suppliers, marketing intermediaries, competitors, public, customers
What are the two broad classifications of products?
Consumer products and industrial products
Which of the following is included in a broad definition of marketing?
Creating customer value, building customer relationships, and engaging customers
What are the four general characteristics that influence consumer purchases?
Cultural characteristics, social characteristics, personal characteristics, and psychological characteristics
A) the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
Customer relationship management is __________. A) the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction B) 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 C) the extent to which a product's perceived performance matches a buyer's expectations D) the portion of the customer's purchasing that a company gets in its product categories
Four Cs
Customer solution Customer cost Convenience Communication
Which of the following statements is true regarding initiating price cuts?
Cutting prices in an industry loaded with excess capacity might lead to price wars.
What is the correct sequence of the steps in the strategic planning process?
Define the company mission, set company objectives and goals, design the business portfolio, and plan the market and other functional strategies
What are the four steps of the marketing research process in their correct sequence?
Define the problem and research objectives, develop the research plan, implement the research plan, interpret and report the findings
D) social media, mobile apps, and blogs
Digital marketing tools used in digital and social media marketing include ________. A) mobile apps, online video, and personal selling B) e-mail, telemarketing, and blogs C) social media, online video, and newspaper coupons D) social media, mobile apps, and blogs E) social media, mobile apps, and television advertising
B) customer lifetime value
Disney has created a strong, memorable brand with its customers, which in turn keeps customers returning to the brand over time, known as ___________ A) needs, wants, and demands B) customer lifetime value C) customer relationship value D) customer retention E) value and satisfaction
B) exchange
Disney offers its products to families and children who desire the Disney experience and subsequently purchase products and experiences. Disney and its customers are engaged in _________ A) marketing B) exchange C) customer lifetime value D) demand E) engagement
What is market segmentation?
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes
What is the first step in the new product development process?
Generating new product ideas
What are the four major variables used to segment consumer markets?
Geographic, demographic, psychographic, and behavioral
Stars - GSM
High growth, high share business or products. Often need heavy investments to finance rapid growth. Eventually their growth will slow down and they will turn into cash cows
Which of the following is a potentially effective action a company could take in response to a competitor's price cut?
Increase both price and quality
Cash cows - GSM
Low growth, high share businesses or products. These are established and successful SBUs and need less investment to hold their market share. So they produce a lot of cash that the company uses to pay bills and support other SBUs
Question Marks - GSM
Low share business units in high growth markets. they require a lot of cash to hold their share, let alone increase it. Managament has to think about which question mark it should try to build into stars
Segmentation Analysis
Markets must be measurable, accessible, substantial, differentiable, actionable
What are the four growth strategies identified by the product/market expansion grid?
Market penetration, market development, product development, and diversification
Which stage of the product life cycle normally lasts longer than the previous stages and poses strong challenges to marketing management?
Maturity
A) states of felt deprivation
Needs are __________. A) states of felt deprivation B) shaped by culture and individual personality C) human wants that are backed by buying power D) some combination of products, services, information, or experiences offered to a market to satisfy a need or want
Which of the following correctly identifies the five core customer and marketplace concept?
Needs, wants, and demands; market offerings; value and satisfaction; exchanges and relationships; and markets
Which of the following statements is true regarding how price might play an important role in helping to accomplish company objectives.
Pricing can create excitement for a brand
What are the five product mix pricing situations?
Product line pricing, optional-product pricing, captive-product pricing, by-product pricing, and product bundle pricing
Which of the following represent market offerings?
Products, services, information, and experiences
What are the five characteristics that are especially important in influencing an innovation's rate of adoption?
Relative advantage, complexity, compatibility, divisibility, and communicability
A) 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 satisfactions better than competitors do. A) marketing concept B) selling concept C) product concept D) production concept
A) production concept
The __________ is the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency. A) production concept B) product concept C) selling concept D) marketing concept
A) 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. A) product concept B) production concept C) selling concept D) marketing concept
A) selling concept
The __________ is the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort. A) selling concept B) product concept C) production concept D) marketing concept
Most standard portfolio analysis methods evaluate strategic business units (SBUs) on their performance in two important dimensions. What are these two dimensions?
The attractiveness of the SBU's market or industry and the strength of the SBU's position in that market or industry
Business portfolio
The collection of business and products that make up the company. This best one is that best fits the companys strengths and weaknesses to opportunities in the environment.
D) understand the marketplace, which includes customer needs and wants.
The first step of the marketing process is to ___________________ A) design a customer-driven marketing strategy B) capture value from customers to create profits and customer equity. C) construct an integrated marketing program that delivers superior value D) understand the marketplace, which includes customer needs and wants. E) build profitable relationships
Which marketing management orientation holds that a firm should have a customer focus to achieve sales and profits?
The marketing concept
creating profits and customer equity
The marketing process captures value from customers by __________ A) creating profits and customer equity B) understanding the marketplace and customers' needs and wants C) constructing an integrated marketing program that delivers superior value D) building profitable relationships and creating customer delight
Portfolio analysis
The process by which management evaluates the products and businesses that make up the company.
Market targeting
The process of evaluating each market segments attractiveness and selecting one or more segments to enter
A) 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 __________. A) the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency B) 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 C) the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort D) a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
What determines whether the buyer is satisfied or dissatisfied with a purchase
The relationship between the consumer's expectations and the product perceived performance
Marketing mix
The set of tactical marketing tools, product, price, place and promotion (Four Ps) that consists of everything a firm can do to engage customers and deliver customer value
A) 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
The societal marketing concept is __________. A) 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 B) 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 C) the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort D) a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
Issues with BCG and other formal methods revolutionized strategic planning
They can be difficult, time consuming, and costly to implement. These approaches focus on classifying current business but provide little advice for future planning
Which of the following correctly lists the actors in a company's microenvironment?
The company, suppliers, marketing intermediaries, customer markets, competitors, and publics
B) customer satisfaction
Through the customer experiences of its products, hotels, theme parks, and other packaged value items, Disney has been quite successful in creating high ________________ A) customer-perceived value B) customer satisfaction C) customer engagement D) customer demand E) customer lifetime value
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? A) What customers will we serve? How can we serve these customers best? B) What customers will we serve? How can we maximize profits? C) How can we serve our customers best? How can we maximize profits? D) What markets should we enter? How do we maximize sales in those markets? E) Who are our competitors? How can we beat our competitors?
Which of the following is a reason for business legislation?
To protect consumers from unfair business practices
Which of the following is true regarding international marketing research?
Translating questionnaires from one language to another is not an easy task.
What are the two keys to building lasting customer relationships?
Value and satisfaction
Which structural factor would make a market segment attractive to enter?
Very few actual or potential substitute products
B) Value and satisfaction
What are the two keys to building lasting customer relationships? A) Satisfaction and sales promotions B) Value and satisfaction C) Value and customer service D) Innovative products and low prices E) Customer service and quality products
What advice would you give a firm about how to respond to the changing marketing environment?
Whenever possible, take a proactive approach to the environment
C) The marketing concept
Which marketing management orientation holds that a firm should have a customer focus to achieve sales and profits? A) The production concept B) Product concept C) Selling Concept D) The marketing concept E) The societal marketing concept
E) 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, and demands; products; value; customers; and competitors B) Needs, wants, demands, market offerings, and markets C) Needs, wants, and demands; market offerings; value; satisfaction; and markets D) Needs, wants, and demands; market offerings; value and satisfaction; competitors; and profits E) Needs, wants, and demands; market offerings; value and satisfaction; exchanges and relationships; and markets
c) Creating customer value, building customer relationships, and engaging customers
Which of the following is included in a broad definition of marketing? a) selling, advertising, and promoting b) advertising, selling and developing quality products c) Creating customer value, building customer relationships, and engaging customers. d) Satisfying customers, beating competitors, and maximizing profits. e) Creating customer value, building customer relationships, and having a strong selling orientation.
C) Products, services, information, and experiences
Which of the following represent market offerings? A) Products, services, needs, and wants B) Value, satisfaction, sales, and profits C) Products, services, information, and experiences D) Products, services, needs, and exchanges E) Needs, wants, products, and advertisements
B) The Great Recession caused consumers to rethink their buying priorities.
Which of the following statements regarding the changing marketing landscape is correct? A) Today's post-recession era consumers buy more, use fewer coupons, use their credit cards more, and save less. B) The Great Recession caused consumers to rethink their buying priorities. C) Global competition affects only large companies. D) Companies can safely ignore the environmental movement. E) Digital technology has had little impact on the way we live.
E) customer lifetime value
While Zappos' pricing snafu cost the company nearly $1.6 million dollars, the company chose to fulfill all the orders because it realized the long-term loss of patronage from these customers could be even more expensive. A key metric that measures the long-term profitability of individual customers or groups of customers is known as __________ A) customer satisfaction B) customer retention C) customer relationship value D) ROI E) customer lifetime value
Partner relationship management
Working closely with others inside and outside the company to jointly engage and bring more value to customers
A) value
Zappos creates __________ for its customers by offering a wide selection, higher levels of service, and customer-friendly return policies A) value B) equity C) exchanges D) demands E) satisfaction
D) exchange
Zappos offers customers wide selection, excellent service, and customer-friendly return policies. In return, customers are willing to pay more for the company's offerings. This act of obtaining a desired object from someone by offering something in return is known as __________. A) satisfaction B) engagement C) marketing D) exchange E) value
A) Marketing offerings
__________ are some combination of products, services, information, or experiences offered to a market to satisfy a need or want A) Marketing offerings B) Demands C) Wants D) Needs
A) Wants
__________ are the form human needs take as they are shaped by culture and individual personality. A) Wants B) Needs C) Demands D) Marketing offerings
A) Exchange
__________ is the act of obtaining a desired object from someone by offering something in return. A) Exchange B) Marketing management C) Marketing D) Marketing myopia
A) Marketing management
__________ is the art and science of choosing target markets and building profitable relationships with them. A) Marketing management B) Marketing C) Exchange D) Marketing myopia
A) Customer-perceived value
__________ is 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. A) Customer-perceived value B) Customer relationship management C) Customer satisfaction D) Share of customers
A) Share of customers
__________ is the portion of the customer's purchasing that a company gets in its product categories A) Share of customers B) Customer satisfaction C) Customer-perceived value D) Customer relationship management
A) Customer equity
__________ is the total combined values of all of the company's customers. A) Customer equity B) Customer lifetime value C) Share of customers D) Customer-perceived value
A) Customer lifetime value
__________ is the value of the entire stream of purchases a customer makes during a lifetime of patronage. A) Customer lifetime value B) Customer equity C) Share of customers D) Customer-perceived value
shopping product
a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style
specialty product
a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
undifferentiated marketing (mass marketing)
a firm decides to ignore market segment differences and target the whole market with one offer
product line
a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, and marketed through the same types of outlets, or fall within given price ranges
brand
a name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors
Growth Share Matrix
a portfolio planning method that evaluates a company's strategic business units (SBUs) in terms of its market growth rate and relative market share
consumer product
a product bought by final consumers for personal consumption, which includes convenience, shopping, specialty, and unsought products
industrial product
a product bought by individuals and organizations for further processing or for use in conducting a business, which include materials and parts, capital items, and supplies/services.
unique selling proposition
a specific attribute that a company chooses about a brand and touts as "number 1" in regards to that attribute
service
an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything
SWOT analysis
an overall evaluation of the company's strengths (S), weaknesses (W), opportunities (O), and Threats (T)
public
any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives
product
anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
positioning
arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
do-not-call implementation act (2003)
authorizes the FTC to collect fees from sellers and telemarketers for the implementation and enforcement of a national do-not-call registry
magnuson-moss warranty act (1975)
authorizes the FTC to determine rules and regulations for consumer warranties and provides consumer access to redress, such as the class action suit
child protection act (1966)
bans the sale of hazardous toys and articles. sets standards for child resistant packaging
Understanding wants, needs, and demands helps companies to design want-satisfying market offerings and build value-laden customer relationships by which they can capture
customer lifetime value and greater share of customer equity
The price ceiling, the maximum price a company can charge, is set by ________.
customer perceptions of the product's value
What are the three major pricing strategies used by marketers?
customer value-based pricing, cost-based pricing, and competition-based pricing
managing service differentiation
developing a differentiated offer, delivery, and image
environmental sustainability
developing strategies and practices that create a world economy that the planet can support indefinitely
differentiation
distinguishing a market offering from other offerings in order to create superior customer value
psychographic segmentation
divides buyers into different segments based on social class, lifestyle, or personality characteristics
demographic segmentation
divides the market into segments based on age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation
income segmentation
dividing a market into different income groups
gender segmentation
dividing a market into different segments based on gender
market segmentation
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes
occasion segmentation
dividing a market into segments according to the moments when buyers get the idea to buy, actually make their purchase, or use the purchased item
Market segmentation
dividing the market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
differentiated marketing (segmented marketing)
firm decides to target several market segments and designs separate offers for each
marketing intermeiaries
firms that help the company to promote, sell, and distribute its goods to final buyers
variables companies can use to segment international markets include
geographic location, economic factors, political and legal factors, and cultural factors
Differentiation and positioning task consists of
identifying a set of possible differentiation that create competitive advantage, choosing product features and benefits on which to build a position, and selecting an overall positioning strategy
Place
includes company activities that make the product available to target consumers
In addition to income levels, marketers need to pay attention to ______, which has created a tiered market.
income distribution levels
cultural environment
institutions and other forces that affect society's basic values, perceptions, preferences, and behaviors
political environment
laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society
The major product line decision involves the line's _______, or the number of items in the product line.
length
wheeler-lea act (1938)
makes deceptive, misleading, and unfair practices illegal regardless of injury to competition. places advertising of food and drugs under FTC jurisdiction
natural environment
natural resources that are needed as inputs by marketers or that are affected by marketing activities
Market Growth Rate
provides a measure of market attractiveness which is on the vertical axis of growth share matrix
national traffic and safety act (1946)
provides for the creation of compulsory safety standards for automobiles and tires
fair packaging and labeling act (1966)
provides for the regulation of packaging and the labeling of consumer goods. requires that manufacturers state what the package contains, who made it, and how much it contains
CAN-SPAM act (2003)
regulates the distribution and content of unsolicited commercial e-mail
nutrition labeling and education act (1990)
requires that food product labels provide detailed nutritional information
Managing the marketing process
requires the four marketing management functions, analysis, planning, implementation, and control
service perishability
services cannot be stored for later sale or use
A company rarely gets 100% of a customer's purchases for a product category. The share it does get of the customer's purchasing in its product categories is called
share of customer
perceptual positioning maps
show consumer perceptions of their brands vs those of competing products on important buying dimensions
Digital marketing tools used in digital and social media marketing include
social media, mobile apps, and blogs
clayton act (1914)
supplements the Sherman Act by prohibiting certain types of price discrimination, exclusive dealing, and tying clauses
local marketing
tailoring brands and marketing to the needs and wants of cities, neighborhoods, and even specific stores
individual marketing
tailoring products and marketing programs to the needs and preferences of individual 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
According to the text, __________ are perhaps the most dramatic forces affecting today's marketing strategies.
technological forces
generation x
the 49 million people born between 1965 and 1976 in the "birth dearth" following the baby boom
baby boomers
the 78 million people born during the years following WWII and lasting until 1964
millenials (generation y)
the 83 million children of the baby boomers born between 1977 and 2000
packaging
the activities of designing and producing the container or wrapper for a product
marketing environment
the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers
microenvironment
the actors close to the company that affect its ability to serve its customers- the company, suppliers, marketing intermediates, customer markets, competitors, and publics
service profit chain
the chain that links service firm profits with employee and customer satisfaction
product quality
the characteristics of a product or service that bear on its ability to satisfy states or implied customer needs
How to find best marketing strategy and mix
the company engages in marketing analysis planning implementing and control
brand equity
the differential effect that knowing the brand name has on customer response to the product or its marketing
value proposition
the full mix of benefits on which a brand is positioned
macroenvironment
the larger societal forces that affect the microenvironment- demographic, economic, natural, technological, political, and cultural forces
For strategic planning purposes, marketing provides a guiding philosophy that suggests the company's strategy should revolve around creating customer value and building profitable relationships with important consumer groups. This philosophy is called _______.
the marketing concept
Marketing Strategy
the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships
Value chain
the series of internal departments that carry out value creating activities to design, produce, market, deliver, and support a firm's products
product mix (or product portfolio)
the set of all product lines and items that a particular seller offers for sale
demography
the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics
social marketing
the use of commercial marketing concepts and tolls in programs designed to influence individuals' behavior to improve their well-being and that of society
product position
the way a product is defined by consumers on important attributes - the place the product occupies in consumers' minds relative to competing products
Internal factors that affect pricing include ________.
the company's overall marketing strategy, objectives, marketing mix, and other organizational considerations.
Marketing implementation
turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives
To create successful new products, a company must ________.
understand its consumers, markets, and competitors, and develop products that deliver superior value
the different levels market targeting can be carried out:
undifferentiated marketing, micromarketing, differentiated or concentrated marketing
brand sponsorship: licensing
use names and symbols created by other companies or well known movie characters or celebrities for free
A _______ defines how a company will create differentiated value for targeted segments and what positions it wants to occupy in those segments.
value proposition
What structural factor would make a market segment attractive to enter?
very few actual or potential substitute products