Marketing Final Exam Study Guide

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

customer equity

Amazon.com leverages relationshps with its 35 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other product items. This helps Amazon.com capture a greater ________

share of customer

Stew Leonard, owner/operator of supermarkets, reacts adversely to losing a single customer sale. He feels that this amounts to losing an entire stream of future purchases that a customer is likely to make if he/she remains in the area. This is an illustration of ___________

Customer lifetime value

News release is often used as a tool for advertising.

False

T or F: A firm that sends email updates to customers about new products is engaging in personal selling.

False

T or F: A line extension invovled the use of a successful brand name to launch new or modified products in a new category.

False

T or F: Customers within the same market segment possess different needs and characteristics

False

T or F: Jeff's Bikes has developed a new design for bicycles that their staff believes will offer the most in terms of quality, performance, and innovative features. Jeff's Bikes is practicing the production concept here.

False

T or F: Marketing is primarily concerned with engaging customers and secondarily with managing profitable customer relationships

False

T or F: The contemporary view of marketing focuses on "telling and selling"

False

T or F: There are three levels of products and services marketers must consider when designing leisure services. The actual product level addresses the question, "What is the buyer really buying?"

False

T or F: When a company selects the parts of the market it can serve best and most profitably, it is practicing marketing segmentation.

False

Value-based pricing is often product driven, and customer value perceptions are secondary.

False

BerryBerry is a fruit juice company that has traditionally sold three varieties of mixed fruit juices: DazzleBerry, AquaBerry, and GloBerry. The company wants to add more products to its product line. In this case, which of the following is an example of cobranding by BerryBerry?

BerryBerry teams up with SFX, a sporting goods company, to introduce a line of energy bars called BerryBerry SFX.

CRM analysts use _________ and marketing analytics to unearth patterns in customer data.

Big Data

based on the opening case of chapter 6, compare and contrast that target markets of Dunkin Donuts and Starbucks.

Starbucks targets the white collar wealthier and older generation, who are looking to impress others while holding their cup, they care more about what others think Dunkin Donuts- working class

Which of the following is a desirable quality for a brand name?

The name should translate easily into foreign languages.

Overuse of promotional pricing can erode a brand's value in the eyes of customers.

True

T or F: Goods are tangible while experiences are intangible

True

T or F: Marketing intelligence is publicly available information

True

T or F: Product costs set a floor for a product's price

True

T or F: Product modifications are an important source of new products for organizations.

True

T or F: Service perishability means that services cannot be stored for later sale or use.

True

The maturity stage of the product life cycle is characterized by a slowdown in sales growth.

True

To or F: Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be overlooked by larger companies.

True

When a company charges different prices for the same product sold at different locations, they are adopting a geographical pricing strategy.

True

Which of the following is most likely a true statement about services?

When purchasing a tour, the customer does not own anything tangible as a result of the purchase.

Which of the following is an example of horizontal conflict in a distribution channel?

a Ford car dealer complaining that another Ford dealer is underpricing the same models

Which of the following would be considered an upstream partner in a company's supply chain?

a firm that provides technical expertise in the production of the product

Pastaliano is a restaurant based in Illinois that exclusively sells Italian food. Pastaliano sells the rights to its recipes to a British firm, which them opens an outlet in London under the Pastaliano brand name and operates under the rules set by Pastaliano. Which kind of channel arrangements does Pastaliano most likely have with the British firm?

a vertical marketing system

The case study on Southwest Airlines discusses the positioning strategy that made southwest one of the more admired airlines. a) What is Southwest's winning value proposition strategy? b) explain the meaning of this value proposition strategy using Southwest as an example

a) Southwest's winning value proposition strategy is less for less. Southwest provides customers with what they need, getting from one destination the the next. They don't sugar coat with extra un-necessary amenities. They provide great customer service, and get their customers where they need to go.

Use a specific example to explain each of the following pricing strategies (must explain strategy) a. product line pricing b. geographical pricing c. psychological pricing

a. product line pricing: different levels of sales in pricing products. ex: Car Wash, you can get a pro car wash for a higher expense, or a standard wash for a lower price. b. geographical pricing: pricing determined or altered by where you are located. ex: shipping costs c. psychological pricing is using psychology to determine the customers desires in products. ex: getting an $100 haircut is more valuable than a $5 haircut because its a higher price. or gas prices.

When H & M Life uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called _______ marketing.

differentiated

Studio 19 is a dance studio geared to adults who want to learn ballroom and Latin dance. When individuals call the studio they're encouraged to access the Web site to receive a $25 e-coupon entitling them to a free half hour of dance instruction. Once they become patrons, text messages are sent to share news about featured dance instructors and upcoming special events. Which of the following promotion mix tools does Studio 19 employ to reach target customers?

direct marketing

The number of mass marketing forms has expanded. Infomercials and home shopping channels are examples of:

direct marketing

A series of staged events that engage a participants and result in recallable memories is known as:

experience

The video case on Domino's Pizza explains that Domino's has identified the various pizza flavors by conducting:

experiments

T or F: Multibranding occurs when two established brand names of different companies are used on the same product.

false

When World Movers, a house mover, sells boxes and pads that must be used in moving a household's furniture, the company is practicing optional pricing.

false

retailers like walmart and Target carry less expensive versions of established brand name products or new lower-price lines. They have adopted a ______ pricing strategy.

good-value

The distinctive yellow and blue "hands held high" logo of a local daycare distinguishes it from other establishments. The logo is prominently displayed on its building, t-shirts worn by the children, and at fundraising events. The daycare has differentiated itself through ________

image

When demand hardly changes with a small change in the price of a product, the demand for the product is best described as __________

inelastic

Susan Hart, the manager of a children's boutique, collects data from her monthly records of sales, costs, and cash flow. In this case, Susan is making use of __________

internal

Companies like 3M, Google, and Sony have _______ that encourage employees to develop new ideas.

intrapreneurial programs

Use an example to explain market-penetration pricing strategy Explain under what conditions (at least one) such pricing strategy should be adopted for new products. (2 pts)

introducing a product at a price lower than your competitors so you can penetrate the market as much as possible and capture in people. Mostly effective with products which are very price sensitive. Product is very sensitive to price and their is a lot of competition. a minute change of price can change things. ex: Gas prices, toilet papers, eggs

When discussing the keys for Hampton Inn's success in class we focused on which of the following?

its 100% satisfaction guarantee

Most manufacturers take years and spend millions to create their own brand names. However, some companies use names or symbols previously created by other manufacturers, names of well known celebrities, and/ or characters from popular movies and books. For a fee, any of these can provide an instant and proven brand name. This practice is called _________

licensed brand

Non-Dairy Delight, a manufacturer of soy milk, attracts new customers by adding cinnamon, pumpkin, and vanilla flavors to its traditional product. In this case, the company has developed its brand with ________

line extensions

Busch Stadium in St. Louis charges different prices for seats in different areas of the ball park, even though each seat costs the same for the owners of the stadium. What is this form of pricing called?

location-based pricing

T or F: Broadly defined, ________ is the sum of the values that customers exchange for the benefits of having or using the product or service.

price

Flores Fashions promotes its clothing by emphasizing the durability and quality of the fabrics it uses. The company has positioned its brand based on _______

product benefits

What type of pricing is being used when a company temporarily prices it product below the list price or even below cost to create buying excitement and urgency?

promotional pricing

As a business consultant, what type of segmentation would you suggest to marketers who cater to people of certain social classes, lifestyles, and personality characteristics?

psychographic

The real value of a company's marketing research and information system lies in the ________

quality of customer insights it provides

Mark recently stayed at the Hyatt Place. By attempting to find out if the hotel's perceived performance matched his expectations, Mark was measuring his level of customer ___________

satisfaction

_______ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible.

services

Companies are likely to gain ______ through speedy, convenient, or careful delivery of products.

services differentiation

According to the authors of our text, Lush- a company sells body care products for profit- makes its own products from fresh organic fruits and vegetables using little or not preservatives or packing. Which of the following best reflects Lush's marketing management orientation?

societal marketing concept

Marketers need to position their brands clearly in target customers' minds. A brand can be positioned on three levels, with the strongest brands being positioned on__________

strong beliefs and values

In the class examples of Abercrombie & Fitch, we mainly discussed which of the following?

why its sales has declined in recent years

Leisure services such as movie theaters and theme parks usually do not allow patrons to bring food and drinks on site. Then they charge much higher prices on food and drinks than grocery stores. This practice is an example of ____________________

captive-product pricing

restaurants such as Rainforest Cafe are heralds of the emerging experience economy. Describe 3 reasons why the authors believe that we are now in an experience economy.

-we have more money for an experience economy, we are more productive so the economy is better so people have more disposable income. people can afford a 5 dollar latte from Starbucks but years ago people didn't have the money -we value experience more -technology, the technology development is making it more possible for us to offer the kinds of experience we want. we can stage experiences now.

Use examples to demostrate how businesses/ marketers practice 1) individual marketing and 2) local marketing

1) Individual marketing- personalize your product or customize the product based on customers needs. ex: M & M's, all M and m's but you personalize/ add your name to it. or dell computer you can choose different features that you want. 2) local marketing is selling products in local communities. This would be selling produce at a farmers market in Bloomington. (other ex: market to specific community like skiing in Aspen.) depending on different neighborhoods or communities to offer product. Walmart in a primarily Hispanic area might be different than Walmart in Bloomington. Have international food isle.

5 steps of the marketing process in order

1) Understanding your market 2) market segmentation 3) 4) building relationships 5) creating marketshare

List the stages of a product life cycle in order. Then recall the video case on Fiber One. Base on the video case, what did the Fiber One team do about their brand in 2006? Explain in detail

1) product development 2) introduction 3) growth 4) maturity 5) decline In 2006, fiber one redid their brand by changing the taste of their product and seeking out a new identity for FiberOne.

Which of the following would be considered part of an augmented product rather than that of an actual product or core customer value?

A welcome basket filled with wine and chocolates for each hotel guest

The marketing manager of Fitness Inc. has noticed a sharp decrease in sales over the last two months. The manager decides to conduct marketing research to identify potential causes for the drop in sales. Which of the following should the manager do first?

Define the problem and objectives

3 components of a research plan

Developing the data and research necessary determining what needs to be done, what data must be collected implementing the data and research 1) Identify research problem objectives 2) identify research methods/plan 3) implementing the plan 4) reporting

Pacific Fisheries groups its customers by regions in the U.S. such as Midwest, Northeast, and Southwest. For each region, Pacific Fisheries tailors a different set of advertisements and promotions. Based on which of the following segmentation variables does the firm divide its market?

Geographical location

Use the video case on Hammerpress to explain how Hammerpress practices the dynamic pricing strategy.

Hammerpress practices the dynamic pricing strategy by catering every pricing opportunity to that specific customer and changing pricing to their specific customer needs. No present price. *don't worry about this*

Intangibility, Inseparability and Variability are three characteristics of leisure services. Explain the meaning of each of these three characteristics

Intangibility- the service cannot be touched, or seen or felt during the process. ex: people cannot see their cosmetic surgury before or during Inseparability- the service being provided cannot be separated from the consumer delivering it (whether its a person or thing) you cant take the product home because you don't own it. ex: restaurant dinner when its being provided and eaten happens at the same time so its inseparable variability- the quality of service is dependable on the who, what, why etc. ex: The Hampton Inn is known for their good workers, however if there is one bad worker who deals with a guest, their service is ruined because of this one worker.

Many firms are making an effort to identify smaller, better- defined, target groups by using _________

Multiple Segmentation bases

The video case on Smashburgers describes how this burger chain has adopted competition-based pricing by comparing its burger prices with food prices of

PF Chang's

Fitness Firm hires better-skilled employees than the competition by conducting lengthy searches and interviews. Management also trains employees much better than competitors. Fitness Firm has gained a strong competitive advantage through which type of differentiation?

People

The marketing mix tools includes four broad groups:

Product, place, price, promotion

According to the case on Jetblue, Jetblue strives to delight customers by doing which of the following?

all of the above, provide basic amenities that exceed customer expectations, eg. well-padded, leather-covered coach seat, free 36-channel Direct TV, etc., hiring quality people whose personal values match JetBlue's value, allowing authentic customer testimonials on its website

Demographic variables are the most popular bases for segmenting customer groups because they ________

are easier to measure

With product bundle pricing, sellers can combine several products and offer the bundle ________

at a reduced price

The positive differential effect that knowing the brand name has on customer's response to the product or its marketing is called ___________

brand equity

When ESPN started to produce apparel of its own brand after being successful in producing sports new, they practiced which one of the following strategies?

brand extension

a brand difference is said to be preemptive if _______

competitors cannot easily copy the difference

Which of the following does NOT support a market-skimming policy for a new product?

competitors should be able to enter the market easily

Which of the following sets the upper limit for a product's pricing?

consumer perceptions of value

Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company has decided to add a $1.50 markup, so the unit price to distributors will be $5. Lovely Skin is using a _____________ approach to price the new moisturizer.

cost-plus

Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its Web site that customers can suggest ideas for its upcoming product model. Contributors of short listed ideas will be adequately rewarded. In this case, Kallton is using _________ to generate new product ideas.

crowdsourcing

Fun & Run, a local amusement park, promotes its services by allowing consumers to upload videos and write reviews about the park. This is an example of:

customer engaged marketing

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

customer perceived value

Greg Williams now has the buying power to purchase the golf clubs he has wanted for the last six months. Greg's want now has become a _______

demand

What are the four steps (in order) to design a customer value- driven market strategy?

market segmentation, target, differentiation, and positioning

The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these projects is called __________

marketing myopia

_____ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

marketing research

Nordstrom claims superior quality, performance, and style. The owners provide the most upscale products and services and charge a higher price to cover the higher costs. What type of positioning does Nordstrom use?

more-for-more

Sportware, a leading shoe manufacturer, markets sneakers under the brand name "Athletix" and dress shoes under the brand name "Cameo" in order to target the two different market segments. What branding strategy is most likely being used by Sportware?

multibrands

GolFuns, a leading golf club manufacturing company, markets its products under the company's own brand name. In this case, GolFuns has sponsored its products by promoting them as ________ brands.

national

When a cruise line makes decisions on various shore excursions that tourists can choose to purchase, it becomes engaged in ________

optional-product pricing

External factors that affect a company's prices decisions include:

the company's competition

Compare and contrast these marketing management orientations: the selling concept and the marketing concept

the selling concept is more about just trying to get consumers to buy your product. However, the marketing concept is more establishing relationships with customers and trying to target the best market for a specific item. Marketing is about more than just selling. selling concept- starts in factors, focus on what to produce marketing- start with customer needs and wants, sell of product

Movie theaters charge matinee pricing during the daytime, and resorts give weekend and seasonal discounts. This is illustrative of a _______ pricing strategy.

time-based

The full positioning of a brand/product- the full mix of benefits on which it is positioned is called _____________

value proposition

Costs that change directly with the level or production are reffered to as ________ costs.

variable