mktg 3650 exam 1 review

The Washington family earns $10,000 per month collectively. About $3,000 goes toward taxes and savings. They spend $7,000 on goods and services. Based upon the information in the text, about how much of their money goes toward marketing activities?

$3500

What is a marketing plan?

A written document that specifies the activities to be performed to implement and control the organization's marketing strategies

Barry is a business owner who sells high quality drones with HD cameras for personal use. In an effort to improve his skills in social media, he pays to attend an online webinar about Pinterest strategy. What is Barry engaging in?

An exchange

what is social responsibility?

An organization's obligation to maximize its positive impact and minimize its negative impact on society

What is a SWOT analysis?

Assessment of an organization's strengths, weaknesses, opportunities, and threats

What is Threats mean in SWOT?

Barriers that could prevent the company from reaching its objectives

Procter & Gamble's Tide laundry detergent has a dominant share of the detergent market in the United States. It makes $4.5 billion in sales of this detergent brand. However, the detergent market has reached market saturation in the United States. With this information, what type of product is Tide based upon the Boston Consulting Group's market growth/market share matrix?

Cash Cow

Every year Jersey Mike's hosts an annual one-day event where 100 percent of its sales is donated to a charity of the store owner's choice. In recent years, 200+ charities were supported nationwide from the sales of the store's 1,500 locations. These events that Jersey Mike's funds every year are best described as which of the following?

Cause-related marketing

Marty works at an organization with a clear chain of command. The major decisions are relegated to top managers. Marty and his co-workers have strict performance standards. Managers at his organization monitor the work of employees to make sure they are staying on track. This is an example of a _________ organization.

Centralized

what does strengths mean in SWOT?

Competitive advantages, or core competencies, that give the company an advantage

Who can be a stakeholder?

Customers, Employees, Shareholders, Suppliers, Governments,Communitis,Competitors

what is opportunities mean in SWOT?

Favorable conditions in the environment that could produce rewards for the organization if acted upon

NutriTaste receives a cease-and-desist order demanding that the nutrition supplement business stop using deceptive packaging from the federal regulatory agency that has the most influence over marketing activities. Which agency is the order from?

Federal Trade commission (FTC)

what does total budget competitors mean?

Firms that compete for the limited financial resources of the same customers

what does product competitors mean

Firms that compete in the same product class but market products with different features, benefits, and prices

what does brand competitors mean?

Firms that market products with similar features and benefits to the same customers at similar prices

what does generic competitors mean?

Firms that provide very different products that solve the same problem or satisfy the same basic customer need

Which of the following is a disadvantage of being a first mover in the market?

Large outlays associated with creating a new product

what are weaknesses in SWOT?

Limitations a company faces in developing or implementing a marketing strategy

Which of the following is needed to guide the process of strategic planning to ensure that a concern for customer satisfaction is an integral part of the entire company, thereby leading to the development of successful marketing strategies and planning process?

Market Orientation

Scenario 1.1. Karen works as a salesperson for Wüsthof, a company that makes cutlery and kitchen knives. She is driven to make as many sales as possible to as many people as possible in order to increase her commission. Although she has many great customer relationships, she also has a reputation for overly aggressive sales tactics. Karen has been able to convince customers to purchase more expensive knives even after they say they are not interested. As a result of Karen's high sales, she is a top sales associate at the company. Recently, however, Karen's sponsor has been informed of complaints that customers have levied against Karen accusing her of "badgering" them into buying products. The sponsor meets with Karen and tells her it is unacceptable to pressure consumers into purchasing items they do not want. Refer to Scenario 1.1. Karen's sponsor tells her that it is important for her to determine her customer's needs and then find the product that best meets those needs, regardless of price. She recommends that Karen adopt the _______. In other words, Karen should move from a _______, where she is focused on using her aggressive direct selling talents to maximize profits, toward embracing the more customer-centric _______.

Marketing Concept, sales orientation and market orientation

When Petco decided to eliminate pet food with artificial flavors, colors, and preservatives from its stores, it was most likely responding to which of the following?

Marketing environment forces

TOMS is well known for having strong principles and standards that define acceptable conduct in marketing as determined by various stakeholders. What is this known as?

Marketing ethics

what is consumerism?

Organized efforts by individuals, groups, and organizations to protect consumers' rights

at&t spends millions of dollars on lobbying every year. Lobbying involves which type of force in the marketing environment?

Political

Scenario 1.6. Walmart has a robust supply chain with sustainable suppliers and more than 100 distribution centers. It sells thousands of products at affordable prices. The retailer has a TV advertisement centered around its slogan, "Save Money. Live Better." Refer to Scenario 1.6. Which of the following marketing-mix variables does Walmart emphasize in its marketing activities?

Price

Scenario 2.2. Ajei's manager believes that Tres Pimientos can gain an advantage over competing Mexican restaurants in the area by capitalizing on the growing demand for salsa. He believes the firm's top-secret salsa recipe could be the key to expanding into another market niche. The manager has proposed developing a line of its salsas in 16-ounce jars to sell at its restaurant. This way its loyal customers could buy its salsa outright and serve it at home. Ajei has been tasked with determining the feasibility of this strategy. Refer to Scenario 2.2. What type of competitive growth strategy is Ajei's manager discussing?

Product development

What is the marketing mix?

Product, Price, Place, Promotion

Scenario 1.4. Alan manages a small factory that produces computer graphics cards. Alan operates from the belief that a good product creates demand. He focuses much of his energy on developing operational efficiencies and increasing output. The company's salesperson Melissa, however, views customer relationships and personal selling as being the highest priority. Between the two of them, the firm has become known for its quality products and excellent customer relationships. Refer to Scenario 1.4. What type of orientation has Alan adopted?

Production

Scenario 1.2. An indie nail polish brand, Holo Taco, conducts in-depth marketing research to determine what customers want. Its long-wearing nail polishes are made with the highest quality holographic glitter. The company creates buzz around its product offerings by discussing the product weeks before it is launched. This anticipation builds up until the product is launched, resulting in wide-scale sales that often result in its website selling out of the newest product. Refer to Scenario 1.2. Holo Taco's skills at creating buzz for its newest product offering weeks before its release is an example of what marketing variable?

Promotion

during what period in the business cycle are firms first likely to cut their marketing budgets?

Recession

what is buying power?

Resources—such as money, goods, and services—that can be traded in an exchange

Scenario 2.6. Margie noticed that sales of her company's newest electric bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The electric bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who bike long distance. Refer to Scenario 2.6. What method of analysis is Margie using?

Sales Analysis

Amazon's Echo product line of smart speakers has 61 percent of a market that has grown from 47 million speakers to 66 million speakers in just one year. With this information, what type of product is the Echo speaker based upon the Boston Consulting Group's market growth/market share matrix?

Star

Scenario 3.2. Internet privacy is a major issue. In fact, in Europe there are privacy laws to limit how much information websites can collect from users without their permission. The United States does not have comparable laws to protect consumer privacy on the internet. Collecting this information is beneficial for firms because then they can tailor marketing messages that better fit their users' needs. These better marketing campaigns can provide them with a competitive advantage. Acme Corporation uses cookies and other devices to collect information. Its privacy policy explicitly informs users that it collects information. However, most people do not read through the policy. Lately, some consumers have complained because they are worried that their information could be compromised. They question the security of the site. Acme wants to restore confidence and prove that it has controls in place. Refer to Scenario 3.2. What type of environmental force does this issue involve

Technological

what is marketing citizenship?

The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders

Carol needs a ride to downtown Denver. She is not very familiar with the area and is running late for an appointment. In the Uber app she sees an UberX ride is $18. Carol is irritated by the price. Although there is likely a less expensive ride available on another ridesharing app, Carol does not check for other rides and pays for the UberX since a driver is already nearby and the ride will arrive at her destination quickly. Different cost considerations impacted Carol's decision, but clearly one stood out above all others. Which cost exerted the most influence over Carol's decision to pay $18 for a ride?

The non-monetary cost of time

what is a competitive advantage?

The result of a company matching a core competency to opportunities it has discovered in the marketplace

What are core competencies?

Things a company does extremely well, which sometimes give it an advantage over its competition

what is market opportunity?

a combination of circumstances and timing that permits an organization to take action to reach a particular target market

What is value?

a customer's subjective assessment of benefits relative to costs in determining the worth of a product

scenario 4.3 Quinn is the new marketing analyst for a sporting goods retailer. He quickly discovers that the accounting team has a file of fixed data on customer transactions that is isolated from the rest of the organization. Quinn suggests the data should be shared to relevant departments to tackle problems and provide solutions. Refer to Scenario 4.3. In response to Quinn's call to action, management requests all departments contribute their fixed data files to a large pool of data that is openly available to all departments. What is this pool called? Choose the best answer.

a data lake

Scenario 4.3. Quinn is the new marketing analyst for a sporting goods retailer. He quickly discovers that the accounting team has a file of fixed data on customer transactions that is isolated from the rest of the organization. Quinn suggests the data should be shared to relevant departments to tackle problems and provide solutions. Refer to Scenario 4.3. What is the fixed data Quinn discovered called?

a data silo

Many marketers collecting information turn to LexisNexis. LexisNexis contains articles on a variety of topics as well as cases and news documents. LexisNexis would most likely be considered which of the following?

a database

what is the 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

how does a sustainable competitve advantage differ from a competitive advantage

a sustainable competitive advantage is one that competitors cannot copy in the immediate future

Which of the following is an advantage of being a late mover in the market?

ability to benefit from first movers' mistakes

Barry is in charge of implementing his unit's marketing strategy, and he is currently engaged in establishing a timetable for implementation activities. Which of the following is Barry's final step in establishing an implementation timetable?

assigning responsibility for completing each activity to one or more employees, teams or managers

A lawsuit was filed against Naked Juice because of its claims that its products are "natural." The lawsuit claimed that because it contained synthetic ingredients it did not fit the definition of "natural" and was therefore misleading. Naked Juice agreed to drop the "natural" claim. According to critics, Naked Juice was violating consumers' right to _______

be informed

instagram has an enormous amount of data on the ways its users interact with content in its app. Instagram uses sophisticated software to store and analyze the data. What are these data called?

big data

Which of the following is probably the most important decision a company makes during the strategic planning process?

choosing a target market

to improve ethics an artificial company developed formalized rules and standards that describe what the company expects of its employees. The company created this _______ ahead of its IPO because it is required by the New York Stock Exchange.

code of conduct

Karissa works for a company that sells sour cream. Sales are down, so she begins a research project. First, she develops a hypothesis that consumers perceive Greek yogurt as a healthier alternative to salsa. She ensures that her research techniques are both reliable and valid. The next step for Karissa is to _______.

collect data

Scenario 2.3. Ajei continues to work on the marketing strategy for Tres Pimientos. Tres Pimientos was successful in selling 16-ounce jars of salsa in its restaurant. In fact, demand for the jars of salsa is so high that Ajei believes Tres Pimientos should try to expand and start selling in stores and online. She believes Tres Pimientos salsa has the potential for enormous growth, perhaps even more so than the actual restaurant. Refer to Scenario 2.3. Ajei's manager is skeptical. Such an investment would require a manufacturing facility, a larger marketing budget, and salespeople who would be able to get the salsa onto store shelves. However, Ajei maintains that Tres Pimientos's secret salsa recipe provides it with a core competency. The market for salsa is also strong. She believes this provides Tres Pimientos with a chance to match its core competency to market opportunities, otherwise known as a(n) _______.

competitive advantage

what are the six forces of marketing environment?

competitive, economic, political, legal and regulatory, technological, and sociocultural

Maria works for an artificial intelligence company powered by big data. A new client calls Maria and explains they have an extremely large quantity of structured data across multiple systems. Specifically, the client needs Maria's company to link, match, and transform data across systems. What is the client requesting help with?

complexity

what is a stakeholder?

constituents who have a "stake," or claim, in some aspect of a company's products, operations, markets, industry, and outcomes

Randy writes letters and send emails regularly to companies whose activites he deems irresponsible. Last year he wrote letters to a plastics company that dumped waste into the local waterways. Recently he joined a group of people that aim to expose scam artists in order to protects consumers rights. What are these organized efforts called?

consumerism

The United Way, a nationwide nonprofit, recently hired a new top executive. He is currently occupied with refining the scope of the organization and assessing its resource deployment, competitive advantages, and overall coordination of functional areas. The United Way's executive is focusing on _______.

corporate strategy

Soda companies are worried because sales have fallen. People today are more concerned about their sugar intake and want to be healthier. This reflects a change in _______.

cultural values

Libby is part of an online group of people who act as sounding boards for new ideas from one of her favorite companies. Libby does not interact much with the other people in her group, but she provides her own insights about proposed products. Libby is part of a(n) _______.

customer advisory board

what is the formula for customer value?

customer benefits-customer costs

Christopher, the CEO of a linguistics company, worked with his chief technology officer to develop an information system to discover customers' real needs. Christopher uses the information to create satisfying products for his target market, increasing his sales revenue and profit. He strives to perfect his marketing mix to keep business booming. Christopher embraces the marketing concept. What is the major focus of the marketing concept?

customer satisfaction

Scenario 2.5. Paul owns a small retail store. His store sells local products from farmers and small food and beverage businesses in his store. He has a number of strategic partnerships with different players in the industry and believes his business has the ability to become highly successful. Those customers who have bought from him have become loyal customers and frequently visit the store. The problem is most people do not seem to realize the store exists. He decides to write a marketing plan that will outline the marketing actions he needs to take to spread awareness of his company and attract consumers to his business. Refer to Scenario 2.5. Paul is conducting a SWOT analysis and has identified his opportunities, threats, and strengths. What is his store's primary weakness?

customers lack of awareness of the store

Scenario 4.2. Olivia works at Ginger, a woman's clothing store. Olivia noticed that while the store was popular with women of all ages it was selling few of its jeggings to females over 45. While they bought tops, shorts, and dresses, rarely any sales from this group of females included jeggings. In contrast, Ginger's jeggings were highly popular among those under 45. Olivia would like to conduct research to see why this is so. Refer to Scenario 4.2. What type of research will she likely conduct?

descriptive research

scenario 4.2. Olivia works at Ginger, a woman's clothing store. Olivia noticed that while the store was popular with women of all ages it was selling few of its jeggings to females over 45. While they bought tops, shorts, and dresses, rarely any sales from this group of females included jeggings. In contrast, Ginger's jeggings were highly popular among those under 45. Olivia would like to conduct research to see why this is so. Refer to Scenario 4.2. Now that Olivia has located and defined the problem, the next step in the marketing research process is to _______.

design the research project

Handel started a new job as a junior marketing research analyst. After the basic necessities of food, clothing, and rent, he has a good amount of income that is available for spending and saving. What is this income known as?

discretionary income

what is the differences between disposable and discretionary income?

disposable is after-tax income and discretionary is disposable income available for spending and saving after you purchase the basic necessities

Scenario 1.6. Walmart has a robust supply chain with sustainable suppliers and more than 100 distribution centers. It sells thousands of products at affordable prices. The retailer has a TV advertisement centered around its slogan, "Save Money. Live Better." Refer to Scenario 1.6. Which of the following marketing-mix variables does Walmart focus on by attracting sustainable suppliers?

distribution

The Coca-Cola Company introduced a low-sugar, high-protein, lactose-free dairy milk product called Fairlife. For Coca-Cola, Fairlife milk products represent which of the following growth strategies?

diversification

Scenario 1.3. Dylan manages a highly reputable cybersecurity business. This company has been voted as having the best cybersecurity software. Consumers appreciate the fact that they can make secure transactions without worrying about privacy or identity theft. Dylan knows that the company's product far surpasses that of the competition. One thing has been bothering him, though. In order to put so many resources into ensuring the best software, Dylan had to lay off employees at the customer call center. Recently, consumers have begun complaining about long wait times when they call in with a problem or concern. Although its cybersecurity software is still considered one of the best, customer satisfaction with the firm's customer service has plummeted. Dylan does not understand why consumers are getting so upset. He believes the exceptional software more than makes up for long waiting periods and other issues with its customer service. "After all," he says, "they can't have it all. If I invest more in customer service, that means less investment on ensuring the quality of our product offering." Refer to Scenario 1.3. Dylan has asked you, a marketing consultant, to give him advice. He cannot understand how a cybersecurity company with the best product offering in the industry could get such low satisfaction ratings simply because the customer service is not up to par. You suggest that Dylan has a narrowly defined view of the company's product offering. You tell Dylan that successful marketers should define their products as what they _______.

do to satisfy customer

The majority of Americans have cell phones with no other phone services such as a landline. The decrease in landlines has affected many industries. The _______ of technology involves the constant change that challenges every aspect of our society.

dynamics

Chuck is a marketing strategist at Microsoft. He spent several weeks collecting information about environmental forces that will influence his industry in the near future. Now, he needs to make sense of the data and extract insights which he hopes will improve Microsoft's marketing strategy in relation to competitors. Which type of activity is Chuck about to do?

environmental analysis

Scenario 2.5. Paul owns a small retail store. His store sells local products from farmers and small food and beverage businesses in his store. He has a number of strategic partnerships with different players in the industry and believes his business has the ability to become highly successful. Those customers who have bought from him have become loyal customers and frequently visit the store. The problem is most people do not seem to realize the store exists. He decides to write a marketing plan that will outline the marketing actions he needs to take to spread awareness of his company and attract consumers to his business. Refer to Scenario 2.5. Paul is at the stage of his marketing plan where he needs to gather information about his firm's situation with respect to the market. A major part of this is his assessment of target markets. Which section is he about to write?

environmental analysis

kayla is a digital marketing strategist for a major cosmetics company. She is new to the beauty industry, so she decides to subscribe to the beauty publication Allure Magazine. She also collects new information by monitoring social media. In what process is Kayla engaging?

environmental scanning

Scenario 2.4. It is a year later. Ajei's manager decided that the company would develop a salsa business. Ajei has been in a flurry of activity since then. Not only did the company have to invest in a building and equipment, but she has had to develop marketing strategies for the new salsa business. The marketing strategies are now complete and ready to be put into action. Ajei was placed in charge of marketing implementation. She has spent several months organizing the marketing unit, training employees, coordinating the marketing staff, developing a social media plan, and communicating the goals and objectives of the strategy. Refer to Scenario 2.4. What is the next step Ajei should take to implement the marketing strategy?

establishing a timetable for implementation

Scenario 2.6. Margie noticed that sales of her company's newest electric bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The electric bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who bike long distance. Refer to Scenario 2.6. At what stage of the strategic planning process is Margie?

evaluating marketing strategies

What are all the plan components of a marketing plan?

executive summary, environmental analysis, swot analysis, marketing objectives, marketing strategies, marketing implementation and performance evaluation.

Big Burgers BBQ has been testing a number of new menu items in its restaurants as part of a turnaround strategy, including sales of kombucha, breakfast served at all hours, and premium chef-crafted sandwiches. Big Burgers BBQ is conducting _______ research which allows it to make causal deductions about relationships

experimental

Scenario 4.1. Kamilah is a member of a student group that is assigned to work with a local Tex-Mex restaurant to collect marketing research. The restaurant wants to determine if a new type of taco will be successful. Kamilah's group decides to organize a taste test where respondents try the new taco and fill out a survey. Questions would ask whether or not they liked the taco, what they liked or disliked about the taco, and whether they would purchase it at various price points. Refer to Scenario 4.1. What type of research is Kamilah's team collecting?

exploratory research

Marjorie, a Venezuelan business professional, considered the U.S. market for her new baby clothing company. After conducting environmental scanning and analysis, she determined the U.S. is not the best fit for her company because of changes in U.S. demographic data. Which of the following statements is true about how our U.S. demographics are changing?

fertility rates are at their lowest

L'Oréal is considering developing a new line of protein-free shampoo and conditioner. Before the company invests too many resources, it would like to collect consumer insights to determine what customers are looking for in shampoo and conditioner and whether its protein-free products will catch on. The company brings together a group of ten consumers plus a moderator to direct discussion. L'Oréal is most interested in the unique insights it could collect through group interaction. This is known as a _______, which is a part of _______ research.

focus group; exploratory

Scenario 2.1. Ajei is working on a SWOT analysis of a local Mexican restaurant Tres Pimientos in Flagstaff. She writes down that the organization has high customer loyalty, resources for expansion, a large social media following, and strong management. She also writes that the market for salsa products is high and more people are eating out. On the other hand, one major complaint levied against the restaurant is that it is high priced and other casual-dining restaurants with less expensive menu offerings are locating to the city. Still, Ajei believes the restaurant's talented and well-known chef provides it with an advantage that other restaurants do not have. Refer to Scenario 2.1. Which of the following characteristics of the Mexican restaurant represents an opportunity?

greater demand for salsa products

IKEA is known for its sustainability initiatives to improve its products and stores. The company uses sustainable sources for its materials and aims to use 100 percent renewable energy. IKEA releases an annual sustainability report to inform stakeholders. IKEA believes in the strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment. This strategic process is called _______.

green marketing

Which of the following institutions would be most likely to market an idea as its main product?

greenpeace

Scenario 3.1. Tiana is a student at University of Colorado Boulder who recently landed a summer internship working for the marketing department at Frontier Airlines. She is assisting Duke, one of the marketing managers, with a competitive assessment of the U.S. market. In addition, he tells her to think beyond direct competitors to any competitors that might be able to offer similar services as Frontier Airlines. Refer to Scenario 3.1. Which of the following represents a generic competitor to Frontier Airlines?

greyhound bus system

what are stars?

high market share and high market growth

what are cash cows

high market share and low market growth

Annalise is performing a marketing research study on restaurant menu items containing cauliflower as a feature ingredient. She believes this study will prove that consumers are increasingly attracted to cauliflower because of its rise in popularity on social media and reported connection to health benefits. Annalise is developing a(n) _______.

hypothesis

The real value of marketing research is measured by _______.

improved decision-making ability

Marketers should identify and be aware of ethical issues that can influence research. Marketing research requires understanding of acceptable activities that ensure the _______ of gathering, analyzing, and reporting data.

integrity

Alec collected primary and secondary data for his marketing research project. After collecting data to test his hypothesis, Alec needs to _______.

interpret the research findings

A startup skincare company, Skintopical, has been operating for six months. The company is a team of one: Linette, the owner. She single-handedly creates the products and sells them to her friends and family. Sales have slowed, so her sister suggests Linette invest more in marketing to help Skintopical grow. Which of the following statements describes a benefit that marketing offers Skintopical?

it enhances consumer awareness

What is the significance of the 2010 Supreme Court decision Citizens United v. Federal Election Commission?

it ruled that the government is not authorized to ban corporate spending in candidate elections

Hank's small restaurant business is doing extremely well, and it often has hours-long waits at peak dining times. Hank thinks it is time to grow the business by opening new restaurants to take advantage of his success. He has begun the strategic planning process and has set the following objective for his company: grow the business by 10 percent in one year. What's wrong with Hank's marketing objective?

it should be measurable

What are question marks?

low market share and high market growth

what are dogs?

low market share and low market growth

Jerry works for a pharmaceutical company that wants to conduct a survey about substance abuse. Since this is a sensitive topic, he wants respondents to feel comfortable sharing their responses and to eliminate interviewer bias. Consumers are most likely to remain anonymous through which survey method?

mail surveys

Scenario 1.2. An indie nail polish brand, Holo Taco, conducts in-depth marketing research to determine what customers want. Its long-wearing nail polishes are made with the highest quality holographic glitter. The company creates buzz around its product offerings by discussing the product weeks before it is launched. This anticipation builds up until the product is launched, resulting in wide-scale sales that often result in its website selling out of the newest product. Refer to Scenario 1.2. From the information provided about Holo Taco and its marketing strategies, Holo Taco most likely embraces a _______.

market orientation

Jacob runs a software company with mountains of data across multiple databases. He wants to interpret the effectiveness of his firm's marketing functions using databases, big data, and measurement methods enabled by technology in order to make better marketing decisions. What is Jacob interested in?

marketing analytics

Which of the following statements about the marketing environment is false?

marketing environment forces are uncontrollable, so marketers do not plan for them

SAP HANA is a relational database management system created by SAP. To sell its product, SAP promotes the importance of the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities. What is this called?

marketing research

Google has widely posted the following: "to organize the world's information and make it universally accessible and useful." This is most likely a part of Google's _______.

mission statement

what are the 4 characteristics of competitive structures?

monopoly, oligopoly, monopolistic, and pure competition

Scenario 1.3. Dylan manages a highly reputable cybersecurity business. This company has been voted as having the best cybersecurity software. Consumers appreciate the fact that they can make secure transactions without worrying about privacy or identity theft. Dylan knows that the company's product far surpasses that of the competition. One thing has been bothering him, though. In order to put so many resources into ensuring the best software, Dylan had to lay off employees at the customer call center. Recently, consumers have begun complaining about long wait times when they call in with a problem or concern. Although its cybersecurity software is still considered one of the best, customer satisfaction with the firm's customer service has plummeted. Dylan does not understand why consumers are getting so upset. He believes the exceptional software more than makes up for long waiting periods and other issues with its customer service. "After all," he says, "they can't have it all. If I invest more in customer service, that means less investment on ensuring the quality of our product offering." Refer to Scenario 1.3. On your advice, Dylan decides to invest more in customer service training and hiring. Satisfaction increases, but not to the level Dylan thinks it should be. He conducts a marketing research study and finds that while most consumers like the product many would like to see additional software available. However, what type of software customers want tends to vary by customer. Dylan has come to believe that customers just do not know how to assess value correctly. Dylan appears to believe that determining value is a(n) _______ process, while in reality the process of assessing value is highly _______.

objective; subjective

Trader Joe's wants to study how its customers over age 65 shop. It sets up a mock store made to look exactly like a normal store and invites older consumers to shop in the authentic-feeling environment. Researchers record what they see and use this to develop a report for Trader Joe's marketing department. What type of data collection practice is being used here?

observation

Mario, a marketing researcher for a popular dog food brand, is watching people in a Petco to see how long customers tend to linger in front of certain items of interest. Mario is engaging in _______ to collect _______ data.

observation; primary

Scenario 3.1. Tiana is a student at University of Colorado Boulder who recently landed a summer internship working for the marketing department at Frontier Airlines. She is assisting Duke, one of the marketing managers, with a competitive assessment of the U.S. market. In addition, he tells her to think beyond direct competitors to any competitors that might be able to offer similar services as Frontier Airlines. Refer to Scenario 3.1. Because Frontier Airlines operates in a(n) _______, if Spirit Airlines lowers prices, Frontier will likely _______.

oligopoly; do the same

what does competition mean?

other firms that market products that are similar to or can be substituted for a firm's products in the same geographic area

Scenario 2.5. Paul owns a small retail store. His store sells local products from farmers and small food and beverage businesses in his store. He has a number of strategic partnerships with different players in the industry and believes his business has the ability to become highly successful. Those customers who have bought from him have become loyal customers and frequently visit the store. The problem is most people do not seem to realize the store exists. He decides to write a marketing plan that will outline the marketing actions he needs to take to spread awareness of his company and attract consumers to his business. Refer to Scenario 2.5. Paul would like his sales for next month to reach $30,000. This is an example of a _______.

performance standard

Max works for Mountain Dew and has been told the soda company wants to test a new beverage idea on some of its consumers. The budget Max is given is much higher than Max estimates he will need, and he has plenty of time to complete the survey. He would like to collect very accurate data and wants to encourage respondents to be highly detailed in their responses. He plans to ask probing follow-up questions. Which survey method is best for Max?

personal interview surveys

A massive online retailer often uses data on customer demographics, interests, and behavior and wants to learn more about its best customers. It decides to track its customer's online behavior to offer more personalized services with the shopper's consent. The retailer clearly outlines how the data will be used. The retailer sells its data, including personally identifiable data, to a third-party marketing research agency. What ethical issue in marketing research is at play here?

privacy

Loretta is a product manager at a popular printing company. Though none of her small business clients have requested to print on recycled paper, Loretta decides to stock some recycled paper products anyway because she sees this as an opportunity to increase her company's reputation for sustainability. She attempts to influence her clients to switch to printing on the new materials. This is known as what type of approach?

proactive

Scenario 1.2. An indie nail polish brand, Holo Taco, conducts in-depth marketing research to determine what customers want. Its long-wearing nail polishes are made with the highest quality holographic glitter. The company creates buzz around its product offerings by discussing the product weeks before it is launched. This anticipation builds up until the product is launched, resulting in wide-scale sales that often result in its website selling out of the newest product. Refer to Scenario 1.2. Holo Taco's emphasis on marketing research is used to enhance what variable of the marketing mix?

product

Scenario 1.1. Karen works as a salesperson for Wüsthof, a company that makes cutlery and kitchen knives. She is driven to make as many sales as possible to as many people as possible in order to increase her commission. Although she has many great customer relationships, she also has a reputation for overly aggressive sales tactics. Karen has been able to convince customers to purchase more expensive knives even after they say they are not interested. As a result of Karen's high sales, she is a top sales associate at the company. Recently, however, Karen's sponsor has been informed of complaints that customers have levied against Karen accusing her of "badgering" them into buying products. The sponsor meets with Karen and tells her it is unacceptable to pressure consumers into purchasing items they do not want. Refer to Scenario 1.1. Which variable of the marketing mix does this issue involve?

promotion

Brandy is a frequent shopper at REI. She reluctantly purchases a pair of climbing shoes that are more expensive than she would like. After a month of frequent use, Brandy regrets her purchase and decides to return the shoes. REI gladly accepted the worn shoes because of its 100% satisfaction guarantee which allows customers to return products up to one year after purchase. This is an attempt by REI to reduce what type of cost?

purchase risk

Scenario 4.1. Kamilah is a member of a student group that is assigned to work with a local Tex-Mex restaurant to collect marketing research. The restaurant wants to determine if a new type of taco will be successful. Kamilah's group decides to organize a taste test where respondents try the new taco and fill out a survey. Questions would ask whether or not they liked the taco, what they liked or disliked about the taco, and whether they would purchase it at various price points. Refer to Scenario 4.1. An auditorium is filled with several hundred potential participants. Kamilah's group chooses to divide the population into groups based on gender and race to ensure that representative categories of respondents are included. This is likely an example of _______.

quota sampling

Netflix has a wide selection of original content. Its hit show Stranger Things is widely popular and has a large following on social media. Netflix uses its Stranger Things Twitter account to create awareness and build excitement for upcoming seasons by posting teaser trailers, memes, and user-generated content. The account is also known to reply directly to fan questions and posts mentioning the show. This allows for greater use of user-generated content and connectedness to the show and other fans. This is an example of _______.

relationship marketing

What deepens the buyer's trust in the company and increases the firm's understanding of the customer's needs as the customer's confidence grows?

relationship marketing

cenario 3.2. Internet privacy is a major issue. In fact, in Europe there are privacy laws to limit how much information websites can collect from users without their permission. The United States does not have comparable laws to protect consumer privacy on the internet. Collecting this information is beneficial for firms because then they can tailor marketing messages that better fit their users' needs. These better marketing campaigns can provide them with a competitive advantage. Acme Corporation uses cookies and other devices to collect information. Its privacy policy explicitly informs users that it collects information. However, most people do not read through the policy. Lately, some consumers have complained because they are worried that their information could be compromised. They question the security of the site. Acme wants to restore confidence and prove that it has controls in place. Refer to Scenario 3.2. Acme wants to hire a third-party verification site with strong privacy criteria that specializes in internet security to view its site. If Acme meets these criteria, it can display a special seal on its website, demonstrating to users that Acme's website meets high standards in internet security and reassuring consumers that their information is safe. What type of activity is Acme engaging in?

self-regulation

Scenario 1.4. Alan manages a small factory that produces computer graphics cards. Alan operates from the belief that a good product creates demand. He focuses much of his energy on developing operational efficiencies and increasing output. The company's salesperson Melissa, however, views customer relationships and personal selling as being the highest priority. Between the two of them, the firm has become known for its quality products and excellent customer relationships. Refer to Scenario 1.4. Recently, Melissa has found that they have begun to reach market saturation. She is having trouble finding new customers. One solution would be to increase the company's reach, perhaps by opening up locations in other areas. However, she knows this will be expensive. After noticing that many of their customers are planning on expanding and purchasing bigger facilities, Melissa feels that the best option is to increase the company's _______.

share of customer

Social responsibility refers to an organization's obligation to maximize its positive impact and minimize its negative impact on society. Ben & Jerry's built socially responsible principles into its original business model. Which of the following is true about social responsibility?

social responsibility improves marketing performance

Scenario 3.1. Tiana is a student at University of Colorado Boulder who recently landed a summer internship working for the marketing department at Frontier Airlines. She is assisting Duke, one of the marketing managers, with a competitive assessment of the U.S. market. In addition, he tells her to think beyond direct competitors to any competitors that might be able to offer similar services as Frontier Airlines. Refer to Scenario 3.1. Which of the following represents a brand competitor to Frontier Airlines?

spirit airlines

Scenario 2.6. Margie noticed that sales of her company's newest electric bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The electric bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who bike long distance. Refer to Scenario 2.6. Margie believes this is the optimal time to seize upon this opportunity. Through the bike's patented design, her company has capabilities that fit the unique demands of this growing market. Margie wants to capitalize on this opportunity before these market trends have a chance to change. This period for Margie's firm is known as a _______.

strategic window

scenario 2.6. Margie noticed that sales of her company's newest electric bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The electric bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who bike long distance. Refer to Scenario 2.6. Margie's company's electric bicycle, which is patented so that rival firms cannot replicate it, has a _______.

sustainable competitive advantage

Which of the following products MOST closely resembles pure competition?

table salt

Scenario 1.5 Rebecca works at a biotech firm that develops medicines for rare diseases. The company develops a new medication for a disease that less than 100 people have in the entire country. As a result, the drug will be priced high, but the firm will work closely with insurance companies to get the medicine to the right people without sacrificing much revenue. Refer to Scenario 1.5. Her friend Rick, who is taking business classes, tells her that her _______ is very small.

target market

Diya, the senior IT manager for a restaurant chain, knows that many of the restaurant's vegetable suppliers have begun to adopt blockchain technology to better trace their products through the supply chain. Diya tries to foresee the effects of blockchain technology on her restaurant chain's operations, on other business organizations, and on society in general. What is this process known as?

technology assesment

what are 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

Scenario 1.5. Rebecca works at a biotech firm that develops medicines for rare diseases. The company develops a new medication for a disease that less than 1,000 people have in the entire country. As a result, the drug will be priced high, but the firm will work closely with insurance companies to get the medicine to the right people without sacrificing much revenue. Though the medicine was originally sold in a cost-efficient capsule, the firm decided to switch to a premium vegan capsule due to the high demand from its most loyal customers who now avoid animal byproducts. Refer to Scenario 1.5. This is an example of forces in _______.

the marketing environment

what is marketing?

the process of creating, pricing, distributing and promoting goods, services and ideas

what are the four consumer movement rights?

the right to safety, right to be informed, right to choose and the right to be heard

Why might a marketer want to engage in marketing cost analysis

to allocate the firms marketing resources better in the future

Jung-hoon performed an experiment over and over again in his quest to understand buyer behavior. He always got similar results. Jung-hoon went to his manager with his results and told them that this knowledge could help them improve the company's marketing strategy. However, the manager pointed out that Jung-hoon's results do not prove an association between his outcomes and buyer behavior. In fact, the manager can think of a number of factors proven to be more effective in influencing buyer behavior. In this case, Jung-hoon's results lacked _______.

validity

Though the cost of living is high where Jared lives in San Francisco, he's been able to stash extra money each month into his savings account. The savings in his savings account would fall under which of the following?

wealth