MKT 300 Exam 1
monopolistic competition
A competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product
validity
A condition that exists when a research method measures what it is supposed to measure
consumer goods pricing act
A federal law that gives retailers the right to establish a product's final price
data silo
A file of fixed data that is in one department isolated from the rest of the organization
time series analysis
A forecasting method that uses historical sales data to discover patterns in the firm's sales over time and generally involves trend, cycle, seasonal, and random factor analyses
Marketing Information System
A framework for managing and structuring information gathered regularly from sources inside and outside the organization
market growth/market share matrix
A helpful business tool, based on the philosophy that a product's market growth rate and its market share are important considerations in determining its marketing strategy
mission statement
A long-term view, or vision, of what the organization wants to become
heterogeneous market
A market made up of individuals or organizations with diverse needs for products in a specific product class
concentrated targeting strategy
A market segmentation strategy in which an organization targets a single market segment using one marketing mix
geodemographic segmentation
A method of market segmentation that clusters people in zip code areas and smaller neighborhood units based on lifestyle and demographic information
regression analysis
A method of predicting sales based on finding a relationship between past sales and one or more independent variables, such as population or income
quota sampling
A nonprobability sampling technique in which researchers divide the population into groups and then arbitrarily choose participants from each group
in home interview
A personal interview that takes place in the respondent's home
marketing strategy
A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market
delphi technique
A procedure in which experts create initial forecasts, submit them to the company for averaging, and then refine the forecasts
personal interview survey
A research method in which participants respond to survey questions face-to-face
telephone survey
A research method in which respondents' answers to a questionnaire are recorded by an interviewer on the phone
shopping mall intercept interview
A research method that involves interviewing a percentage of individuals passing by "intercept" points in a mall
executive judgement
A sales forecasting method based on the intuition of one or more executives
National Advertising Review Board (NARB)
A self-regulatory unit that considers challenges to issues raised by the National Advertising Division (an arm of the Council of Better Business Bureaus) about an advertisement
undifferentiated targeting strategy
A strategy in which an organization designs a single marketing mix and directs it at the entire market for a particular product
differentiated targeting strategy
A strategy in which an organization targets two or more segments by developing a marketing mix for each segment
corporate strategy
A strategy that determines the means for utilizing resources in the various functional areas to reach the organization's goals
decentralized organization
A structure in which decision-making authority is delegated as far down the chain of command as possible
centralized organization
A structure in which top-level managers delegate little authority to lower levels
stratified sampling
A type of probability sampling in which the population is divided into groups with a common attribute and a random sample is chosen within each group
marketing plan
A written document that specifies the activities to be performed to implement and control the organization's marketing strategies
clayton act
Act that minimally restricted the use of injunctions against labor and legalized peaceful strikes, picketing, and boycotts.
random factor analysis
An analysis attempting to attribute erratic sales variations to random, nonrecurrent events
cycle analysis
An analysis of sales figures for a three- to five-year period to ascertain whether sales fluctuate in a consistent, periodic manner
micromarketing
An approach to market segmentation in which organizations focus precise marketing efforts on very small geographic markets
telephone depth interview
An interview that combines the traditional focus group's ability to probe with the confidentiality provided by telephone surveys
sales analysis
Analysis of sales figures to evaluate a firm's performance
SWOT analysis
Assessment of an organization's strengths, weaknesses, opportunities, and threats
A company can utilize two different methods to determine its company sales potential. The _______ method begins with the marketing manager first developing a general economic forecast for a specific time period. A. competitive B. buildup C. breakdown D. industry
Breakdown
Managing customer relationships requires identifying patterns of _______ and then using that information to focus on the most promising and profitable customers.
Buying behavior
segmentation variables
Characteristics of individuals, groups, or organizations used to divide a market into segments
crowdsourcing
Combines the words crowd and outsourcing and calls for taking tasks usually performed by a marketer or researcher and outsourcing them to a crowd, or potential market, through an open call
stakeholders
Constituents who have a claim, in some aspect of a company's products, operations, markets, industry, and outcomes
customer advisory boards
Small groups of actual customers who serve as sounding boards for new-product ideas and offer insights into their feelings and attitudes toward a firm's products and other elements of its marketing strategy
Which of the following statements is true about why disposable income is important to marketers?
Disposable income is a ready source of buying power
strategic performance evaluation
Establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy, if needed
Which of the following is an advantage of using a concentrated targeting strategy? A. Firms can utilize their production capacity very efficiently. B. Firms can develop a special marketing mix for a single market segment. C. Firms can reduce their expenditures on marketing research activities. D. Firms have high degrees of flexibility in reaching multiple market segments.
Firms can develop a special marketing mix for a single market segment.
sherman antitrust act
First federal action against monopolies, it was signed into law by Harrison and was extensively used by Theodore Roosevelt for trust-busting. However, it was initially misused against labor unions
competitor positioning strategy
Focus on product or company attribute, but specifically in relation to the competition. Firms can position a product to compete head-on with a brand or avoid competition all together.
Product attribute or feature positioning strategy
Specific attributes or features are highlighted to create the desired perception of the brand
The Coalition to Stop Gun Violence (CSGV) is a nonprofit organization that was founded in 1974. Its mission is to secure freedom from gun violence through research, strategic engagement, and effective policy advocacy to change laws regarding firearm ownership. Which type of product best describes the CSGV?
Idea
market segment
Individuals, groups, or organizations sharing one or more similar characteristics that cause them to have similar product needs
Your marketing team is currently working through the target market selection process to identify which customers your firm will target with a new technology product being developed. You are currently in the process step where you must consider the target market characteristics, the product attributes, and the firm's objectives and resources. Which of the five steps in the target market selection process are you currently working on? A. Step 4: Evaluate relevant market segments B. Step 1: Identify the appropriate targeting strategy C. Step 3: Develop market segment profiles D. Step 2: Determine which segmentation variables to use
Step 1: Identify the appropriate targeting strategy
Which of the following are the three primary ways firms can achieve profits through managing customer relationships?
Keeping customers for a longer period of time, enhancing the profitability of existing customers, and acquiring new customers
Caterpillar, Inc., a manufacturer of heavy construction and mining equipment, works with its dealer network to conduct extensive consumer research, including customer satisfaction studies, focus group interviews regarding new products, and listening to customer opinions through social media outlets. Which orientation is Caterpillar most likely utilizing?
Market orientation
Justina Krasnova is a product manager for Krispy Kreme and works with the product development team to develop new products. Justina has been engaged in a variety of _______ activities to stay well-informed of consumer trends, monitor flavor preferences, and determine the potential for success of new products.
Marketing research
Kamala is the owner of a landscaping company and is considering the purchase of a new skid-steer loader. She's evaluating different brands and models to determine the relative value of each model as well as the benefits they offer. Which of the following would not be considered a customer benefit as part of her determination of the product's value?
Monetary Price
target market positioning strategy
Position the product based on personality or type of user
consumer market
Purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make profits or serve an oganizational need
late-mover advantage
The ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace
sales forecast
The amount of a product a company expects to sell during a specific period at a specified level of marketing activities
product positioning
The decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds
company sales potential
The maximum percentage of a market that an individual firm within an industry can expect to obtain for a specific product
market density
The number of potential customers within a unit of land area
market potential
The total amount of a product that customers will purchase within a specified period at a specific level of industry-wide marketing activity
marketing analytics
The use of databases, big data, and measurement methods enabled by technology to interpret the effectiveness of a firm's marketing functions
core competencies
Things a company does extremely well, which sometimes give it an advantage over its competition
Price, quality level, and benefits positioning strategy
Value represents what the customer receives in exchange for the costs of the product. Value positioning does not require the lowest price, but rather that customers believe the purchase was "worth it." Positioning can be on the basis of quality or specific benefits.
database
a collection of information arranged for easy access and retrieval
market opportunity
a combination of circumstances and timing that permits an organization to take action to reach a particular target market
oligopoly
a competitive structure in which a few sellers control the supply of a large proportion of a product
monopoly
a competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply
reliability
a condition that exists when a research technique produces almost identical results in repeated trials
value
a customers subjective assessment of benefits relative to costs in determining the worth of a product
Strategic Business Unit (SBU)
a division, product line, or other profit center within the parent company
random sampling
a form of probability sampling in which all units in a population have an equal chance of appearing in the sample, and the various events that can occur have an equal or known chance of taking place
product
a good, a service, or an idea
market
a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products
sample
a limited number of units chosen to represent the characteristics of a total population
Better Business Bureau (BBB)
a local, nongovernmental regulatory agency, supported by local businesses, that helps settle problems between customers and specific business firms
marketing concept
a managerial philosophy that an organization should try to satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals
homogeneous market
a market in which a large proportion of customers have similar needs for a product
Shira is a product manager for Crest toothpaste and is working to craft a description of customers who would most likely fit the intended target market for Crest with Whitening toothpaste. Shira is including demographic characteristics, geographic factors, product benefits sought, lifestyles, and brand preferences in the description. Shira is completing _______. A. a competitive analysis B. a market trend analysis C. a market segment profile D. a sales forecast
a market segment profile
pure competition
a market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply
When Disney World wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience at the park hotels, this is an example of _______.
a marketing objective
business cycle
a pattern of economic fluctuations that has four stages: prosperity, recession, depression, and recovery
mail survey
a research method in which respondents answer a questionnaire sent through the mail
online survey
a research method in which respondents answer a questionnaire via email or on a website
nonprobability sampling
a sampling technique in which there is no way to calculate the likelihood that a specific element of the population being studied will be chosen
focus group
a small group of 8-12 people who are brought together to participate in an interview that is often conducted informally, without a structured questionnaire, to observe interaction when members are exposed to an idea or concept
target market
a specific group of customers on whom an organization focuses its marketing efforts
marketing objective
a statement of what is to be accomplished through marketing activities
Marika is a manager for a boutique clothing store in downtown Austin. She has set a goal of reaching $25,000 in revenue for the month of March. In April, Marika reviews total revenues for March and realizes she fell short of her goal by $3,000. She decides to run an additional sale in April and increase her posts on social media to hopefully reach the revenue goal in April. Marika is involved in _______.
a strategic performance evaluation
green marketing
a strategic process involving stakeholder assessment to create meaningful, long term relationships with customers while maintaining, supporting, and enhancing the natural environment
sales force forecasting survey
a survey of a firm's sales force regarding anticipated sales in their territories for a specified period
customer forecasting survey
a survey of customers regarding the types and quantities of products they intend to buy during a specific period
probability sampling
a type of sampling in which every element in the population being studied has a known chance of being selected for study
on-site computer interview
a variation of the shopping mall intercept interview in which respondents complete a self-administered questionnaire displayed on a computer monitor
disposable income
after-tax income
population
all the elements, units, or individuals of interest to researchers for a specific study
sustainable competitive advantage
an advantage that cannot be copied by the competition
Federal Trade Commission (FTC)
an agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling
seasonal analysis
an analysis of daily, weekly, or monthly sales figures to evaluate the degree to which seasonal factors influence sales
trend analysis
an analysis that focuses on aggregate sales data over a period of many years to determine general trends in annual sales
performance standard
an expected level of performance against which actual performance can be compared
ethical issue
an identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical
willingness to spend
an inclination to buy because of expected satisfaction from a product, influenced by the ability to buy and numerous psychological and social forces
hypothesis
an informed guess or assumption about a certain problem or set of circumstances
Social Responsibility
an organization's obligation to maximize its positive impact and minimize its negative impact on society
market orientation
an organizationwide commitment to researching and responding to customer needs
research design
an overall plan for obtaining the information needed to address a research problem or issue
marketing cost analysis
analysis of costs to determine which are associated with specific marketing efforts
statistical interpretation
analysis of what is typical and what deviates from the average
Verizon Wireless uses a segmentation strategy for its mobile phone and data packages based on market characteristics such as the number of devices, amount of download capacity, and volume of minutes or text messages. Based on these variables, Verizon Wireless is using _______ variables for segmentation. A. behavioristic B. psychographic C. geographic D. demographic
behavioristic
Billabong was founded in Australia by surfer and surfboard shaper Gordon Merchant in the 1970s. Today, the brand has a strong presence and is known as a lifestyle brand for board-sports, including skate, snow, and wake. Billabong has company-owned specialty stores located throughout the United States and plans to open additional outlets in the future. Billabong also markets its clothing and equipment through its website and catalog. Billabong would most likely use _______ variables as a segmentation base for its online and catalog sales but would benefit most from _______ segmentation to determine the locations for future company-owned stores. A. demographic; geographic B. behavioristic; geographic C. geographic; demographic D. geographic; behavioristic
behavioristic, geographic
Walmart has developed a reputation for its extensive use of information to aid in management and marketing decisions. Today, Walmart leverages its point-of-sale system in the stores and measures website traffic and information gleaned using "cookies" and monitoring of social media, such as Twitter, Facebook, Instagram, and Pinterest. The Vice President of Information Technology says this "mountain of data provides significant insights for its product category leaders and other managers across the Walmart company." What type of information does Walmart utilize?
big data
If Starbucks were to donate 5 percent of every coffee purchase to shelters for victims of domestic abuse for one month, this would be an example of ____.
cause-related marketing
Traditional organizations are most likely to utilize a(n) _______ organizational structure where top-level managers make all decisions regarding marketing strategy, and lower-level managers have little decision-making capability.
centralized
John Deere has launched a research effort to determine the most effective advertising message to gain interest and awareness in its agricultural products among its target market members—the farming community. Its marketing research department has recommended a series of focus group interviews to be fielded across the United States. Which activity is next according to the steps in the marketing research process?
collect data
The Buckle, based in Kearney, Nebraska, operates approximately 500 stores across the United States and is known for its denim which is designed to fit a wide variety of body shapes and style preferences for men and women. The Buckle has forecasted that it can sell 15 percent of all jeans or denim sold in the United States. This percentage represents The Buckle's _______ for denim. A. market potential B. sales goal C. company sales potential D. sales objective
company sales potential
When a company matches a core competency to opportunities in the marketplace, it possesses a _______.
competitive advantage
Ethical standards for a company should _______.
conform to industry and societal norms of ethical conduct
Vani Hari is a popular blogger who started FoodBabe.com in 2011 to share her knowledge of healthy eating with her friends and family and encourage people to eat whole foods. Her popularity expanded, and she is now an advocate against and vocal opponent of companies who include dangerous ingredients in their foods, such as artificial food dyes. Her efforts, combined with an online petition, led to Kraft Foods removing all artificial food dyes from its macaroni and cheese products by 2016. Vani Hari's blog and her efforts to encourage change among food manufacturers such as Kraft is an example of _______.
consumerism
Green Mountain, Inc., the manufacturer of the Keurig brand of coffee makers, created an innovative and new category of coffee makers using its trademarked "K-cups" for single-serve coffee. Other companies are now producing similar cups and coffee makers, competing against Green Mountain and the Keurig brand. The coffee category remains strong, possesses opportunities for growth, and Keurig is maintaining a dominant position in the marketplace. Using the Boston Consulting Group's Growth Share Matrix, which of the following strategies would be most appropriate for the Keurig line of coffee makers?
continue to innovate, promote, and support the product line by investing resources in order to continue growth
Target, a discount store, has successfully partnered with luxury brands such as Lilly Pulitzer, Toms, and Altuzarra to create interest and drive customers to its stores. Target's ability to create these partnerships is considered one of its strengths and provides an advantage over its competitors. This is an example of a _______.
core competency
The key objective of customer relationship management (CRM) is _______.
creating long-term relationships with profitable customers
concept of value
customer benefits - customer costs = customer value
marketing decision support system (MDSS)
customized computer software that aids marketing managers in decision making
secondary data
data compiled both inside and outside the organization for some purpose other than the current investigation
primary data
data observed and recorded or collected directly from respondents
Coyote Logistics is a provider of third-party logistics services and assists customers in managing its supply chain. Employees of Coyote Logistics are extremely satisfied with the company's culture and feel empowered to make decisions. In addition, they can quickly respond and adapt rapidly to changing customer needs. It is likely that Coyote Logistics has implemented a _______ organizational structure.
decentralized
Greenview Landscaping provides full-service landscaping services for new construction and established homes. Greenview typically caters to individuals who are married, have two income earners in the family, and have annual incomes of more than $200,000. Greenview Landscaping is using _______ variables to segment its market. A. behavioristic B. demographic C. psychographic D. geographic
demographic
Managers at Abercrombie & Fitch are interested in determining the characteristics of shoppers who visit their store as well as identifying those consumers who spend the most and shop most often in their stores. This information will be quite helpful to Abercrombie & Fitch as it makes design changes to the store, selects merchandise, and creates advertising messages. Abercrombie & Fitch would like to identify these shoppers based on factors such as gender, age, marital status, and discretionary income. Which type of research would be most appropriate for Abercrombie & Fitch to utilize?
descriptive research
Crayola sells packages of crayons in 15- and 64-count packages as well as an 800-count "Classpack" geared towards schools and organizations. The company also sells colored pencils, markers, paints, and modeling clay. Crayola uses a(n) _______ targeting strategy. A. concentrated B.single C. differentiated D. undifferentiated
differentiated
The Cannon Mills Company markets towels and linens using the brand name Fieldcrest. Fieldcrest is sold at a variety of retail outlets, including Macy's, Target, and Bed Bath & Beyond. The Cannon Mills Company offers a variety of models of Fieldcrest products to appeal to customers who are interested in owning the "best" products, those that are "good" and those that are in between. For example, at Macy's, the Fieldcrest Luxury bath towels sell for $15, Bed Bath & Beyond sells the Fieldcrest Resort towels for $12 each, and Target sells the Fieldcrest Home towels for $8 each. Cannon Mills Company is most likely using a(n) _______ targeting strategy. A. concentrated B. differentiated C. undifferentiated D. cluster
differentiated
discretionary income
disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter
Strategic marketing management requires both effectiveness and efficiency. A food manufacturer has similar brand loyalty as its competitors, but it spends three times more than its competitors on customer relationship management. This manufacturer is _______.
effective, but not efficient
Jamal Nassar is employed as a marketing analyst with Bright Horizons, Inc. and is currently assisting the vice president of marketing with the marketing plan. Jamal has been tasked with assessing a variety of factors, such as competitive, economic, political, legal, regulatory, technological, and sociocultural factors, that could affect various marketing activities. Which section of the marketing plan is Jamal developing?
environmental analysis
Major automobile brands such as Ford, Toyota, GM, and Honda are interested in consumers' interest in "smart" technology in new automobiles. GM recently studied consumers' interest in buying self-driving vehicles. The automobile brands must stay abreast of changing technology as well as consumer trends regarding the use of technology. The automobile company's collection of this type of information is referred to as _______.
environmental scanning
Tamika Smith is a marketing research analyst for Walgreens based in Chicago, Illinois, and part of her job is to gather and analyze information about the product and pricing strategies of competing companies like CVS and Target and to monitor trends regarding which products might be popular in different areas of the United States or particular neighborhoods within a state. What type of activity is Tamika engaged in for her job as a research analyst?
environmental scanning
relationship marketing
establishing long-term, mutually satisfying buyer-seller relationships
When marketing managers utilize the _______ method of developing sales forecasts, intuition is heavily influenced by recent experience, and a manager may weigh recent sales booms or slumps higher and produce a less accurate forecast. A. time series B. customer forecasting survey C. cycle analysis D. executive judgment
executive judgement
Research that provides marketing managers with information regarding evidence of a cause-and-effect relationship is called _______.
experimental research
_______ research is typically conducted when marketers need more information about a problem or want to make a tentative hypothesis more specific.
exploratory
total budget competitors
firms that compete for the limited financial resources of the same customers
product competitors
firms that compete in the same product class but market products with different features, benefits, and prices
brand competitors
firms that market products with similar features and benefits to the same customers at similar prices
generic competitors
firms that provide very different products that solve the same problem or satisfy the same basic customer need
Smithfield Foods utilized a _______ research method to learn about consumers' food purchasing habits and in-home meal preparation. It hired Trinity Research to conduct the research by gathering small groups of eight to 12 individuals in one facility and employed a moderator to guide the discussion. Representatives from Smithfield Foods were able to observe the participants' interaction, and they noticed that one individual tended to monopolize the discussion. However, they were pleased with the way the moderator was able to limit the individuals' responses and enable everyone to fully participate in the study. What type of research is this?
focus group
Which of the following is not an example of a secondary data source?
focus groups
codes of conduct
formalized rules and standards that describe what a company expects of its employees
marketing mix
four marketing variables- product, price, distribution, and promotion- that a firm controls to meet the needs of customers within its target market
Today's customer who enjoys music has a range of options to consider such as streaming services like Spotify, YouTube Music, or Pandora; traditional music purchases such as CDs or vinyl; or MP3 downloads from various sources. These companies represent _______ competition because they provide very different products that solve the same problem or satisfy the same basic customer need.
generic
Walmart has embraced sustainability practices to enhance its relationships with customers and to support or enhance the natural environment. For example, in 2005, Walmart started using LED lights in refrigerator and freezer cases. These lights offer many benefits, such as using 70 percent less energy than fluorescent tube lights and generating significantly less heat. The switch also led to improved energy efficiency and reduced maintenance costs. Based on this information, it seems that Walmart is engaging in _______.
green marketing
The Domino brand is a leading manufacturer of sugar and is part of the ASR Group, the world's largest refiner of cane sugar. Sugar is a staple product that most people keep on hand in their pantry for everyday use as a sweetener or baking ingredient. Domino believes its market is _______, where individuals have similar needs for the product and therefore utilizes a(n) _______ targeting strategy because they can incorporate a single marketing mix and direct it at the entire market for their sugar products. A. homogeneous, differentiated B. heterogeneous, differentiated C. homogeneous; undifferentiated D. heterogeneous; undifferentiated
homogeneous, undifferentiated
three product forms
ideas, services, and goods
What is the first step in creating a marketing strategy?
identifying the target market
The real value of marketing research to the organization can be measured best by _______.
improvements in the ability to make decisions
business market
individuals or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations
single source data
information provided by a single marketing research firm
big data
involved massive structured and unstructured data sources that can be used by marketers to discover unique insights and make strategic decisions
Do-yun has just joined a law firm as its purchasing agent for all supplies, equipment, and service contracts. In his previous position at another company, Do-yun could make decisions for any purchase up to $1 million; however, at the new law firm, he can only make decisions for purchases less than $500,000. Recently, Do-yun has been working with a sales representative from a computer software firm on a contract for a new program to process the firm's billing statements. Do-yun signs the contract, even though it is for $950,000. In this case, Do-yun _______ part of the market for the software because _______. A. is; Do-yun has the need for the software B. is not; Do-yun does not have the authority to purchase C. is not; Do-yun is willing to spend the firm's money D. is; Do-yun has very little buying power
is not; Do-yun does not have the authority to purchase
Which step of the marketing research process focuses on uncovering the nature and boundaries of a situation or question related to marketing strategy or implementation?
locating and defining issues or problems
market test
making a product available to buyers in one or more test areas and measuring purchases and consumer responses to marketing efforts
Investing in _______ involves the following four steps: (1) defining what to measure and which tools to use; (2) collecting data; (3) developing reporting capabilities; and (4) implementing the campaign and analyzing the results.
marketing analytics
Allstate Insurance has a smart computer system that enables the calculation of insurance premiums for automobiles within minutes, and consumers can obtain an accurate quote from the Allstate Insurance website and make a decision as to whether or not they would save money or receive more benefits by being an Allstate customer. The Allstate system requires individuals to enter the make, model, and year of their automobile, whether they own or rent their home, their age, gender, and driver's license number. Based on this information, the Allstate system can accurately calculate the insurance premium for the potential customer. This is an example of a _______ system.
marketing decision support
The process of putting marketing strategies into action is called _______.
marketing implementation
breakdown approach
measuring company sales potential based on a general economic forecast for a specific period and the market potential derived from it
buildup approach
measuring company sales potential by estimating how much of a product a potential buyer in a specific geographic area will purchase in a given period, multiplying the estimate by the number of potential buyers, and adding the totals of all the geographic areas considered
To ensure marketing research is reliable and valid globally, what should marketers do?
modify data-gathering methods to allow for regional differences
Personal appearance, affiliation, status, safety, and health are examples of _______ affecting the types of products purchased and the choice of stores in which they are bought. They reflect the reasons consumers use when making a purchase. A. benefits B. lifestyle C. personality D. motives
motives
If you have made a purchase using your discretionary income, you have likely paid for which of the following?
movie tickets
As a firm fulfills its basic economic responsibilities, it must simultaneously _____.
obeys laws and regulations
According to the Boston Consulting Group Growth Share Matrix, products labeled as "dogs" are _______.
often found in established markets, have low prospects for growth, and a lower share of the market
The BASF Company sent its chemical customers an invitation to an online survey via email. The final question of the survey asked, "Please provide one suggestion to help us better serve your needs." This is an example of a(n) _______ question.
open-ended
consumerism
organized efforts by individuals, groups, and organizations to protect consumers' rights
competition
other firms that market products that are similar to or can be substituted for a firm's products in the same geographic area
Which of the following is a way to display or graph, in two or more dimensions, the location of products, brands, or groups of products in customers' minds? A. Product plot B. Positioning matrix C. Portfolio chart D. Perceptual map
perceptual map
The section of the marketing plan that provides standards to determine how the marketing activities will be evaluated as well as the audits to be performed to gauge success is called the _______.
performance evaluation
Uber and Lyft spent hundreds of thousands of dollars on lobbyists to communicate to elected officials the importance of the ride-sharing bill. The bill sought to allow ride-sharing apps outside of New York City. Employing lobbyists is an attempt to influence which aspect of the marketing environment?
political
The decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds are best described as ________. A.perceptual mapping B. screening C. disruptive innovation D. positioning
positioning
robinson-patman act
prevents unfair price discrimination by ensuring that the seller offer the same price terms to customers at a given level of trade
Recently, consumers have grown more concerned about the ingredients and composition of food products, especially about genetically modified organisms (GMO). Many consumer products companies, such as Coca-Cola, Kellogg's, PepsiCo, Hershey's, and Hormel have contributed funds to lobbyists and political organizations to oppose legislation requiring the labeling of GMO ingredients in food products. The actions of these companies in opposing legislation that could impact these companies is an example of a(n) _______ approach in response to legislative action, which is an environmental force.
proactive
What are the two basic types of sampling utilized by marketing researchers?
probability and nonprobability
While Diet Coke and Diet Pepsi are brand competitors, they must also realize that their target customers have other alternatives for quenching their thirst, such as juice, water, sports drinks, coffee, or alcoholic beverages. Therefore, they face _______ competition from companies who compete in the same product class but market products with different features, benefits, and prices.
product
A positioning strategy that highlights specific attributes or features to create the desired perception of the brand or consistency with the buyer's self-concept is a ________ positioning base. A. product attribute or feature B. target market C. competitor D. price, quality level, and benefits
product attribute or feature
Which business orientation best characterizes the period of time when businesses began utilizing technology and production techniques, such as assembly lines, to manufacture products in a more efficient manner?
product orientation
FTC act
prohibits unfair methods of competition
When McDonald's adds new items to its menu, it must educate its target audience about the new items to stimulate purchase and motivate consumers to visit their local McDonald's restaurant. This calls for activity in which of the following marketing mix variables?
promotion
perceptual map
provides a valuable tool for helping managers position products by graphically illustrating consumers' perceptions of competing products within an industry.
Which of the following represents a well-stated marketing objective?
purina foods seeks to outperform its competition by obtaining a 25 percent share of the market in dry dog food by the end of the 4th raised to the th power quarter of the business year.
Exploratory research is usually associated with _______ research techniques. The data is typically shown in _______.
qualitative; interpretations and expressive descriptions
The _______ sampling method ensures all units in a population have an equal chance of appearing in the sample.
random
The broad nature of technology as it moves through society is referred to as _______.
reach
Which stage of the business cycle is characterized by declining levels of buying power?
recession
Sherwin-Williams Company utilizes a sophisticated and mathematical approach to forecasting sales. They first utilize historical sales data, incorporating a 10-year history of sales for each product category, such as different brands of paint and supplies—brushes, ladders, tarps, and so on. Its sales forecasting manager uses Excel to perform _______, where sales is the dependent variable and a variety of other factors such as company size, annual purchases, and the number of years as a customer are the independent variables. The sales forecasting manager is then able to identify the relationship between the independent variables and the dependent variables to determine an accurate sales forecast. What type of method is being used here? A. time series analysis B. regression analysis C. sales force forecasting survey D. statistical demand analysis
regression analysis
Shasta Soda is developing a new beverage product and has completed taste tests in four different markets across the United States to identify consumers' perceptions of the new product as well as their willingness to buy. The results provide similar feedback in all test markets that consumers enjoy the taste, believe it to be refreshing, and are highly likely to purchase the product. Since the researchers obtained consistent results across these four markets about these measurement items, the research has _______.
reliability
descriptive research
research conducted to clarify the characteristics of certain phenomena to solve a particular problem
exploratory research
research conducted to gather more info about a problem or to make a tentative hypothesis more specific
conclusive research
research designed to verify insights through objective procedures and to help marketers in making decisions
experimental research
research that allows marketers to make casual inferences about relationships between variables
buying power
resources- such as money, goods, and services- that can be traded in an exchange
What is the first activity the organization should pursue as part of its strategic planning process?
review or establish the organization's goals and mission
Holiday Computer Associates was recently fined for violating the _______ due to its practice of charging different prices to different customers without any justification.
robinson-patman act
Why is sales analysis a common method of evaluation?
sales data are readily available and can reflect the target market's reaction to a marketing mix
expert forecasting survey
sales forecasts prepared by experts outside the firm, such as economists, management consultants, advertising executives, or college professors
The final step in the target market selection process is to select specific target markets. When making decisions about which segments to select, a marketing manager should _______. A. revert to an undifferentiated approach if the segments are heterogeneous B. select all segments C. choose only those segments that are less costly to reach D. select segments that provide significant opportunities to achieve organizational objectives
select segments that provide significant opportunities to achieve organizational objectives
L'Oréal markets several different product brands targeting specific groups of women for cosmetic and beauty aid purchases. The brand managers for each product line have completed competitive assessments and cost estimates and are now ready to _______. A. develop sales forecasts and quantity to manufacture B. identify the budget necessary to support each segment C. select specific target markets D. determine the profiles of each segment
select specific target markets
Recently, the federal government of the United States began investigating major airline companies such as Delta, American Airlines, and Swissair for possible price fixing allegations. If the airlines are found to be engaged in price fixing, which law could they be charged with violating?
sherman antitrust act
Mothers Against Drunk Driving (MADD) is a nonprofit group that advocates safe driving practices and hopes to prevent driving after consuming alcoholic beverages. The group attempts to influence those who might drink and drive through a designated driver campaign and efforts directed toward bar and restaurant owners/managers to encourage responsible drinking. MADD's campaign to change drinking and driving behavior represents a _______ force.
sociocultural
lanham act
spells out what kinds of marks can be protected and the exact method of protecting them
The Growth Share Matrix developed by the Boston Consulting Group identifies products with a dominant share of the market and strong prospects for growth as _______.
stars
The leadership team at Bud's Distributors, a regional beverage company collaborated during a two-day meeting to discuss and revise the company's mission and goals, identify strengths, weaknesses, opportunities, and threats, and create a marketing plan. The process implemented by Bud's Distributors is called _______.
strategic planning
Dick's Sporting Goods is interested in studying the product categories that consumers desire to have in the store. The company's marketing research director plans to select 1,000 customers from its database of 100,000 customers who have a loyalty card. The marketing research director will first segment the database of 100,000 customers into five regions of the United States based on geography and then use a random sampling method to select 200 customers from each region. What type of sampling method does the marketing research director plan to utilize?
stratified
Capri Sun uses the tagline, "Good for Moms, Awesome for Kids." This advertising tagline emphasizes that Capri Sun is promoting the product for moms, even though kids are likely to be consuming the product. Thus, the moms represent Capri Sun's _______.
target market
Which positioning base positions the product based on personality or type of consumer? A. Competitor B. Price, quality level, and benefits C. Target market D. Product attribute or feature
target market
Enterprise Rent-A-Car is considering the implementation of new technology, which would enable a business traveler to bypass the automobile rental counter and select their rental car using their smartphone and a proprietary application, which stores the customer's driver's license number, credit card information, and customer contact information. The company is engaging in _______ to determine the viability of the adoption of the new technology and whether the benefits outweigh the costs associated with the development and product launch.
technological assessment
strategic windows
temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market
first-mover advantage
the ability of a company to achieve long-term competitive advantages by being the first to offer an innovative product in the marketplace
marketing citizenship
the adoption of a strategic focus for fulfilling the econimic, legal, ethical, and philanthropic social responsibilities expected by stakeholders
technology
the application of knowledge and tools to solve problems and perform tasks more efficiently
marketing environment
the competitive, economic, political, legal and regulator, technological, and sociocultural forces that surround the customer and affect the marketing mix
benefit segmentation
the division of a market according to benefits that consumers want from the product
sociocultural forces
the influences in a society and its cultures that change people's attitudes, beliefs, norms, customs, and lifestyles
Which of the following statements is true regarding the marketing concept?
the marketing concept is a managerial philosophy guiding all aspects of an organization's business
In April 2015, the restaurant chain Chipotle announced it would stop using genetically modified food products. "This is another step toward the visions we have of changing the way people think about and eat fast food," said Steve Ells, founder and former co-CEO of Chipotle. This decision indicates a response to concerns about _______.
the marketing environment
The marketing environment forces can have a profound effect on marketing activities. Which statement best describes these forces?
the marketing environment forces change dramatically and quickly, and a change in one force is likely to affect the other forces
market share
the percentage of a market that actually buys a specific product from a particular company
cause-related marketing
the practice of linking products to a particulat social cause on an ongoing or short-term basis
Which of the following has become a significant ethical issue in marketing research with the advance of technology?
the privacy of consumers
environmental analysis
the process of assessing and interpreting information gathered through environmental scanning
environmental scanning
the process of collecting info about forces in the marketing environment
marketing
the process of creating, pricing, distributing, and promoting goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment
market segmentation
the process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs
strategic planning
the process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan
strategic marketing management
the process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently
Marketing Implementation
the process of putting marketing strategies into action
sampling
the process of selecting representative units from a total population
exchanges
the provision or transfer of goods, services, or ideas in return for something of value
All the following are true about business markets, except _______. A. the purchase may be made to use in the production of another product B. they can also be known as organizational markets C. the purchase may be made to resell the item D. the purchase is made by household members who intend to consume the product
the purchase is made by household members who intend to consume the product
customers
the purchasers of organizations' products; the focal point of all marketing activities
competitive advantage
the result of a company matching a core competency to opportunities it has discovered in the marketplace
strategic philanthropy approach
the synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits
marketing research
the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities
The section of the marketing plan that outlines how the company will achieve its objectives will discuss _______.
the target market and marketing mix
Jamal Miller is a management consultant who frequently works with businesses to assist them with their strategic planning efforts. He recommends that once firms have used the SWOT analysis to gauge their capabilities and resources relative to the industry, they should identify tactics to achieve a more competitive position relative to other firms in their market. One approach Jamal suggests includes taking actions to convert external _______ into opportunities and internal _______ into strengths.
threats; weaknesses
Most consumers make trade-off decisions when making their trips to the grocery store to purchase food, paper products, and health and beauty products. Thus, products such as Wonder Bread, Diet Coke, Bounty paper towels, Tide laundry detergent, and Head & Shoulders shampoo would represent _______ competitors.
total budget
Canon Business Systems specializes in office automation services, photocopiers, and printers and employs many sales representatives to market its products. Typically, sales representatives are provided with a territory and become specialists according to the type of customer most appropriate to them. Canon divides its market into categories, including professional services (accountants, lawyers, and consultants), health care (hospitals, physician offices, and dentists), K-12 education, higher education, corporate, and governmental. Canon is utilizing _______ segmentation for its business markets. A. geographic location B. product use C. customer size D. type of organization
type of org
French's brand, makers of the famous, yellow-packaged mustard, view all mustard consumers as very similar and utilizes only one marketing mix. French's brand uses a(n) _______ targeting strategy. A. product-use B. concentrated C. undifferentiated D. differentiated
undifferentiated
Customer Relationship Management (CRM)
using information about customers to create marketing strategies that develop and sustain desirable customer relationships
