MKTG 3310 Chapter 2 SmartBook

A company recently undertook a marketing campaign for its new gaming console. The company generated $200,000 in sales and has a gross margin of 50%. The firm spent $70,000 on the marketing campaign. What is the firm's return on marketing investment?

42.9% ((200,000 x 0.50) - 70,000) / 70,000 --> 30,000/70,000 = 0.429

Karen read an article in the newspaper that said Fresh Farms provided the safest, pesticide-free vegetables in the state. She decided that from now on, she would only buy Fresh Farms products. In this instance, when it comes to Karen as a customer, Fresh Farms is enjoying ___.

A competitive advantage

According to Tyler Cornwell, the first thing he thinks of when he thinks of companies with great personal brands is ___.

Authenticity (trustworthy and willing to help)

According to your text, which of the following conditions might cause a firm to adjust their strategic plan?

Changing customer needs and competitive threats

A good mission statement should be orientated around the ___.

Customer

What two important metrics do marketers use to evaluate profitability?

Customer acquisition and individual customer profitability

Competitors of McDonald's can be classified two ways. Restaurants like Wendy's and Burger King are it's ___ competitors, while Subway and Taco Bell would be its ____ competitors.

Direct, indirect

Jenna is a florist and needs to determine how to get 1,000 flowers to the three weddings she is responsible for this weekend. She is concerned with ___ strategy of the marketing plan.

Distribution

The ___ section of the marketing plan should outline all the different companies, people, and technologies that will be involved in the process of delivering the product to customers.

Distribution

While Coca-Cola originally only produced soda products, it now also owns Minute Maid orange juice and a variety of other companies. By seeking to attract new customers by offering products unrelated to soda, which type of marketing growth strategy does this exemplify?

Diversification

The purpose of a mission statement is to provide ____ with a shared sense of ambition, direction, and opportunity.

Employees

Rank the following international market entry strategies in order of risk and potential return by placing the strategy with the lowest risk/return first and the strategy with the highest risk/return last.

Exporting, licensing, franchising, joint venture, and direct ownership

Which of the following strategic options can a firm use for entering the international marketplace?

Exporting, licensing, franchising, joint venture, or direct ownership

It is common for companies to make which of the following mistakes when conducting a SWOT analysis?

Failing to separate internal issues from external issues

Readers of a marketing plan can see the detailed estimate of an organization's profitability in the ____ section.

Financials

While each company may develop a marketing plan in a different way, there are usually ___ basic steps in every marketing plan.

Five

When a firm accomplishes a successful marketing strategy, it can lead to ____.

Higher profits, stronger brands, larger market share

Which of the following should be included in the controls section of the marketing plan?

Implementation, organizational structure, contingency planning

Most companies fail to consider their ___ competitors when creating the competition section of the market summary.

Indirect

Identify the four basic categories of marketing growth strategies from the list below.

Market development, diversification, market penetration, product development

Martin wants to increase sales at his shoe store by giving his customers the opportunity to buy another pair of shoes for half-price for each pair of shoes they buy. This is an example of the marketing growth strategy known as ___ ___.

Market penetration

Proctor and Gamble offers its Gillette brand of deodorant for men and its Secret brand of deodorant for women. By taking the overall market and dividing it into smaller groups, Proctor and Gamble has engaged in ____.

Market segmentation

The process of market segmentation results in _____.

Market segments

The percentage of the total market sales captured by a brand, product, or firm is referred to as ___ ___.

Market share

Blair works in the marketing department for a large electronics firm. He is currently trying to determine how his firm is performing relative to the other electronics firms in the industry. Which of the following would Blair use to do this?

Market share analysis

As a component of the situation analysis, a ___ ___ focuses on the current state of the market to which the firm will sell its products.

Market summary

Which of the following subsections of a situation analysis?

Market summary, SWOT analysis, competition analysis

The practice of measuring, managing, and analyzing marketing performance is referred to as ____.

Marketing analytics

The specific actions a firm must take in order to accomplish its overall marketing objectives is laid out in its

Marketing strategy

A strategic plan addresses an organization's plan for which key functional areas?

Marketing, human resources, finance, and risk management

Trisha has been asked to complete a situation analysis for her company to help guide the firm toward making strategic decisions for the future. Which of the following will Trisha be able to provide from her situation analysis?

Marketplace trends, current competition, and market conditions

In the first week at work, Gerald was asked to make suggestions for how to best market the company's newest product. In order to do this, he wanted to understand the goals and values the company had established for itself. To learn this, Gerald would want to consult the firm's ___ ___.

Mission statement

___ are external factors that a firm may be able to capitalize on to meet or exceed its stated objectives.

Opportunities

Select from the following the goals of marketing analytics.

Optimize return on investment and maximize marketing effectiveness

When Budweiser uses the slogan "King of Beers" to promote its beer, the firm is trying to create a perception in the eyes of its target market that the Budweiser product is superior to its competitors. In doing so, Budweiser is ____ its product.

Positioning

Select the items that are part of a thorough market summary.

Potential sales through international expansion, an analysis of important marketplace trends, international growth opportunities

The ____ section of the marketing plan specifies how much money a customer must pay for a product.

Pricing

Which section of the marketing plan would include information on any warranties or guarantees that accompany what the company is selling?

Product

Karen's company started out ten years ago making only coffee products. In the past year, they have introduced a line of tea to sell to their existing customers. Which market strategy do these efforts demonstrate?

Product development

The measure of how much profit the firm generates as well as how much profit certain aspects of the firm, including regions, channels, and customer segments, contribute is referred to as ___.

Profitability analysis

A company relies on which element of the marketing mix when determining how it will communicate the value of its product?

Promotion

Quality marketing objectives have three basic characteristics. Making sure that your objectives are ___ helps to ensure that you do not provide unattainable goals and diminish the motivation of those working for you.

Realistic

To be most effective, market share data should be analyzed ____.

Relative to revenue and profitability

A firm has just completed a new marketing campaign and would like to measure how effective it was at increasing profits. Which of the following metrics would indicate if the money spent on the campaign contributed to profits?

Return on marketing investment

Revenue analysis pinpoints the specific sources of

Revenue

Which marketing analytics tools measures and evaluates revenue from specific products or regions?

Revenue analysis

In order to be useful, market share data needs to be analyzed along with

Revenue and profitability

Which of the following pieces of information are needed in order to calculate return on marketing investment?

Sales, marketing expenditures, and gross margin

A marketing strategy includes decisions about which of the following?

Segmentation, target markets, positioning, strategic directions, and the marketing mix

A market development strategy can be defined as ___.

Selling existing products to new customers

If Susan is asked to review the market summary, SWOT analysis, and competition information for her company, then Susan is in the process of completing a ___ ____.

Situation analysis

Which component of the marketing plan allows a company to understand information about their current business and then make strategic decisions about how to best move forward?

Situation analysis

Which of the following are the three characteristics of a quality marketing objective?

Specific, realistic, and measurable

The process of defining the objectives of a company and then developing a method to achieve those objectives is known as ___.

Strategic planning

The SWOT analysis is used, in part, to evaluate a firm's ____.

Strengths and weaknesses

Within the SWOT analysis, ___ are internal capabilities that help a company achieve its objectives, while ___ are internal limitations that may prevent the firm's ability to meet its objectives.

Strengths, weaknesses

The goal for firms is to achieve a ___ competitive advantage by developing products that outperform competitors over a long period of time.

Sustainable

A ___ ____ is the group of customers toward which an organization has decided to direct its marketing efforts.

Target market

The Boston Consulting Group matrix is a tool used to describe ____.

The current market

What is market segmentation?

The process of dividing a larger market into smaller groups based on meaningfully shared characteristics